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SR-10-27-2015-7C City Council Report City Council Regular Meeting: October 27, 2015 Agenda Item: 7.C 1 of 4 To: Mayor and City Council From: Marsha Moutrie, City Attorney, City Attorney's Office Subject: Introduction and First Reading of Revised Proposed Ordinance Regulating Lobbying and Information About Disclosures Recommended Action Staff recommends that the City Council introduce for first reading the attached proposed ordinance regulating lobbying and consider staff's proposals regarding disclosure requirements. Executive Summary At its meeting of July 14, 2015, Council directed staff to revise a proposed ordinance regulating lobbying and to formulate requirements for Council and staff disclosure of certain contacts from lobbyists and others. This report and the attached proposed ordinance respond to that direction. The revised ordinance is basic and simple. It would merely require lobbyists to register with the City, disclose minimal information about their lobbying activities, and pay a fee to cover costs of the registration program. Disclosure requirements relating to lobbyists' compensation, prohibitions on certain activities by lobbyists, exemptions, and remedies available to members of the public have all been removed from the proposal as per Council's direction. The definition of "lobbyists" is worded to include contract lobbyists but exclude persons working for the City as employees or consultants. Council previously expressed interest in requiring disclosure by Council members of off record contacts. The proposed ordinance does not address disclosures by Council members because disclosure may appropriately be addressed in Council's own rules. Council also expressed interest in requiring staff to maintain logs of contacts. Such a requirement can be imposed by the City Manager through an Administrative Instruction. So, it also need not be addressed by ordinance. 2 of 4 Background As explained in the report for July 14, 2015, lobbying is a constitutional right. However, the courts have upheld reasonable regulation of lobbying intended to promote governmental transparency; and cities have adopted ordinances ranging from very simple to extremely complex. On December 16, 2014, Council directed staff to prepare a proposed ordinance that would require lobbyists to register with the City and would include other provisions promoting transparency. In response staff prepared an ordinance modelled after ordinances that have been in effect in San Jose and Irvine for some time. However, at the meeting of July 14th, Council opted to direct preparation of a simpler ordinance, akin to West Hollywood's, that would require registration and would be enforceable only by the City. Council noted that the ordinance and regulatory system could be expanded, in the future, if experience warrants expansion. Discussion The attached proposed ordinance conforms to the directions that Council gave on July 14th, for revisions to the previously proposed lobbying ordinance. The proposed ordinance has been substantially simplified. Provisions requiring income disclosure, prohibiting certain lobbying activities, creating exemptions, and creating a private right of action have all been eliminated. What remains is a basic requirement that lobbyists register with the City and disclose only basic information about the identity and work of their clients. The defini tion of "lobbyists" remains broad. However, it has been reworded to ensure that both contract and in-house lobbyists are covered and that employees and contractors working for the City are not. Per Council's direction, the remedies provision has been revised to eliminate the previously included private right of action such that all enforcement would be undertaken by the City Attorney and City Clerk. Staff has also modified the proposed 3 of 4 remedies to include the option of enforcement through administrative citation. That remedy would be available to the City Clerk. It would not be available to the City Attorney because the City Attorney's Office is responsible for the appeal process applicable to administrative citations. The proposed ordinance does not include provisions relating to disclosures by Council members of contacts relating to quasi-judicial matters or to staff logs of contacts with lobbyists and financially interested parties. Instead of including these requirements in the ordinance, staff recommends including them in the Council Rules and the City's Administrative Instructions respectively. Alternatives Council could direct staff to include language on disclosures by Council and staff within the text of this law. However, Council members are accountable to the body as a whole and to the community; and Council regulates its own conduct with rules, not laws. Additionally, including the requirement in the rules would be consistent with City practice. The disclosure requirements applicable to other quasi-judicial bodies were voluntarily adopted by those bodies and are contained in their own rules. If including the requirement in the rules somehow proved to be inadequate, Council could later consider changing this approach. However, in p ractical reality, the options are limited because the City Attorney cannot take legal action against Council members. As to City staff, expectations and requirements for staff conduct on the job are established by the City Manager through Administrative Instructions, which detail and document the City's expectations for employees and which are publicly available. The City Manager can establish detailed requirements for keeping contact logs using that mechanism. City management is responsible for enforcing requirements established by Administrative Instructions and does so through disciplinary procedures. Next Steps If Council approves and adopts the ordinance, staff will return later this year with a resolution setting the amount of the lobbyist registration fee. Staff will also suggest 4 of 4 amendments to the Council Rules to require disclosure of off record contacts with Council members on quasi-judicial matters. Additionally, staff will report back to Council on implementation of the policy decision mandating the maintenance by staff of contact logs. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Costs of the registration program would be covered by the lobbyist registration fee that would be established by the ordinance. That fee would be set by Council resolution in advance of the effective date of the ordinance. Prepared By: Marsha Moutrie, City Attorney Approved Forwarded to Council Attachments: A. Regulating Lobbying Staff Report July 14, 2015 B. LobbyingLawOrd10272015