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SR 12-12-2023 10A City Council Report City Council Meeting: December 12, 2023 Agenda Item: 10.A 1 of 3 To: Mayor and City Council From: Denise Anderson Warren, City Clerk, Records and Election Services Department Subject: Introduction and First Reading of an Ordinance Amending Santa Monica Municipal Code (SMMC) Section 4.85.020 Related to Lobbyist Registration and Reporting Requirements Recommended Action Staff recommends that the City Council: 1. Introduce for first reading the attached ordinance to amend Section 4.85.020 requiring lobbyists to file lobbyist forms using the City’s new electronic lobbyist registration system, and 2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Summary This amendment would update lobbyist regulations with references to using the newly implemented electronic registration system for filing forms. The City’s NetFile system allows community members to easily search for lobbying activities, eliminate the need to download, print and submit forms and reduce data entry for lobbyists, and create processing efficiencies for City Clerk staff. Discussion In 2016, the Council adopted Ordinance 2511 (CCS) establishing lobbyist regulations and requiring lobbyists to register with the City Clerk’s Office. Since then, Clerk staff created and posted fillable portable document format (PDF) registration forms on the City’s lobbyist webpage for lobbyists to download, fill out and file with the office. 10.A Packet Pg. 507 2 of 3 Completed forms were then scanned, if needed, and posted on the City’s webpage. Despite forms being scanned for Optical Character Recognition (OCR) to make them searchable, community members still requested a spreadsheet of all lobbyist activity to assist with their searches. Creating the spreadsheet required extensive staff time to re- enter most information already documented on the forms, and they continued to update as new forms were filed. In 2007, Council authorized staff to purchase NetFile, an electronic filing system for campaign disclosure statements, to improve the City’s electoral process. In 2015, Council adopted Ordinance 2499 (CCS), requiring the electronic filing of Campaign Disclosure Statements, to improve transparency. In 2017, Council adopted Resolution 11029 (CCS) requiring the electronic filing of Statements of Economic Interest (SEI) by City staff and officials using NetFile’s SEI module. In 2023, NetFile launched a Lobbyist Registration module and staff leveraged this existing system, rather than procure a new system, to streamline processes for Clerk staff. Staff launched the lobbyist registration module for the June 2023 renewal period. Since then, the City’s 25+ lobbyists have renewed and amended their registration electronically without major issues. This ordinance will require all lobbyists to file all forms electronically, which will increase accuracy and transparency. Environmental Review This proposed amendment to lobbyist regulations is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The amendment represents administrative changes to the lobbyist registration process and would not result in physical effects, and therefore, is exempt from CEQA. Past Council Actions Meeting Date Description 03/22/16 Original ordinance regulating lobbying in Santa Monica 10.A Packet Pg. 508 3 of 3 04/25/17 Ordinance amending Chapter 4.85 to clarify definitions, registration and reporting requirements, and exemptions. 01/10/23 Ordinance amending Chapter 4.85 to clarifying the definition of ‘lobbying activity’ and prohibiting lobbyists to serve on City boards and commissions. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future. Prepared By: Maria Dacanay, Administrative Analyst Approved Forwarded to Council Attachments: A. Proposed Ordinance Amending SMMC 4.85.020 10.A Packet Pg. 509 1 City Council Meeting December 12, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 4.85.020 RELATED TO LOBBYIST REGISTRATION AND REPORTING REQUIREMENTS WHEREAS, in 2016, Council adopted Ordinance No. 2511 (CCS) requiring lobbyist to register with the City Clerk’s Office; and WHEREAS, the efficacy of registrations is enhanced through prompt, electronic filings, which serve to make information available to the public expeditiously and in a form that is readily accessible; and WHEREAS, the proposed amendment clarifies that lobbyist forms must be electronically filed through the City Clerk’s registration system. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.85.020 is hereby amended to read as follows: 4.85.020 Registration and reporting requirements. (a) A lobbyist shall annually register with the City Clerk, no later than ten days after qualifying as a lobbyist under this chapter, on using an electronic registration form system provided by the City, and shall thereon disclose: (1) Lobbyist/lobbyist firm; (2) Business/mailing address; 10.A.a Packet Pg. 510 Attachment: Proposed Ordinance Amending SMMC 4.85.020 [Revision 9] (6026 : Electronic Filing of Lobbyist Registrations) 2 (3) E-mail address; (4) Telephone number; (5) The names of all owners of the lobbyist’s business if the business is a sole proprietorship or partnership of less than five members; (6) Names of each individual lobbyist; (7) A description of the nature of the business entity or organization; (8) The name, business address and phone number of each client receiving lobbying services; (9) The nature of each client’s business; (10) A brief description of the governmental decision that the Lobbyist seeks to influence on each client’s behalf and the names of the officials the lobbyist has contacted on each client’s behalf; (11) The name of each person employed or retained by the lobbyist to engage in lobbying activities on each client’s behalf; and (12) The date, amount, and description of any payment made to, or on behalf of any City official or member of an official’s family. Payments to be disclosed include gifts, meals, fees, salaries and any other form of compensation or remuneration, but do not include campaign contributions. 10.A.a Packet Pg. 511 Attachment: Proposed Ordinance Amending SMMC 4.85.020 [Revision 9] (6026 : Electronic Filing of Lobbyist Registrations) 3 (b) A lobbyist shall electronically file an amendment to his or her registration and reporting form within ten days of representation of a new client. An addendum must be filed electronically within ten days of any change in the information required to be disclosed on the form related to existing clients. Lobbyists shall report the names of all officials contacted about a governmental decision prior to any public hearing on that decision. (c) The following are exempt from this Chapter: (1) Persons whose attempts to influence government action are limited to appearing at public meetings or preparing, processing or limited to submitting writings for consideration of use at public meetings if their communications are part of the public record; and (2) Persons representing themselves in attempting to obtain decisions relating to their own properties or business; and (3) Persons whose communications related solely to a memorandum of understanding or collective bargaining agreement between the City and its employee organization; and (4) Persons who are officials or members of neighborhood groups who are not economically compensated for advocating or speaking on behalf of neighborhood groups to influence a City action. 10.A.a Packet Pg. 512 Attachment: Proposed Ordinance Amending SMMC 4.85.020 [Revision 9] (6026 : Electronic Filing of Lobbyist Registrations) 4 SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ Douglas Sloan, City Attorney 10.A.a Packet Pg. 513 Attachment: Proposed Ordinance Amending SMMC 4.85.020 [Revision 9] (6026 : Electronic Filing of Lobbyist Registrations)