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Item 3 - CONSIDERATION OF APPROVAL OF AN ELECTRONIC SIGNATURE POLICYAGENDA ITEM NO.3 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 19, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF APPROVAL OF AN ELECTRONIC SIGNATURE POLICY RECOMMENDATION: It is recommended that the City Council approve the electronic signature policy. BACKGROUND: The use of electronic signatures on legally binding documents has become increasingly common in the private sector and is gaining use in government agencies. Within the area of electronic records, .,electronic signatures" are distinguished from "digital signatures." While both are legally enforceable, electronic signatures are notable for their ease of use. Typically, they allow users to sign documents online with the click of a mouse or by simply typing in their name. Digital signatures, however, create a unique, encrypted mathematical key for the user's signature on the document. DocuSign is an example of digital signature technology and requires a more structured logon and signing protocol. The benefits of electronic and digital signatures are simple and numerous: they cut down on the paper, time, and cost associated with transmitting and approving physical documents, and they can offer an easily accessible audit trail of when documents were modified and when they were signed. The general legal framework for the use of electronic signatures on electronic records has been in place for more than 20 years. In 1999, California adopted a version of the Uniform Electronic Transactions Act (UETA), guaranteeing that electronic signatures would have the same legal effect as a "wet' or manual signature. (Cal. Civ. Code §§ 1633.1-1633.17.) In addition, in 1995, five years before the UETA was adopted, the California Legislature passed a statute authorizing public entities to accept "digital signatures" if they comply with stringent verification procedures established by the Secretary of State. (Gov. Code § 16.5.) The Secretary of State adopted regulations in 1998 approving the use of digital signatures if certain verification protocols were met. (2 C.C.R. § 22003.) DISCUSSION: The proposed policy authorizes both electronic and digital signatures. This policy would formally authorize the City's existing practice of using digital signatures through DocuSign for formal contract administration and electronic signatures for more routine matters, such as reservation requests/liability waivers. Additionally, this would allow the City Manager to designate classes of documents for which electronic signatures or digital signatures will be accepted. This may include other document contexts such as ordinances, resolutions, minutes, construction permits, employment forms, land use applications, and claim forms. Pursuant to the proposed policy, the City Clerk will prepare a comprehensive list of documents for which electronic and digital signatures may be used as well as documents for which electronic signatures are prohibited, and will make such list available to City staff. LEGAL REVIEW: The City Attorney's Office has reviewed the proposed policy and approved it as to form. Prepared by: Lisa Sherrick; Assistant City Clerk Attachments Attachment No. 1 - Proposed Electronic Signature Use Policy CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO. 1 City Electronic Purpose of West Covina Signature Use Policy This policy establishes guidelines for the use of electronic signatures by the City of West Covina ("City") and requirements for the use of electronic signatures in lieu of manual or "wet" signatures when permitted by law. This policy is intended to increase efficiency and ensure the convenient and timely access to City information by using electronic signature technology to collect and preserve documents quickly, securely, and efficiently. This policy is intended to broadly permit the use of electronic signatures. Although this policy permits the use of electronic signatures, this policy does not mandate the use of electronic signatures. All City users of electronic signature technology shall comply with the requirements set forth in this policy. Violations of this policy, including unauthorized use of someone else's electronic signature, may be punishable by discipline, up to and including termination. Background California has adopted statutes and regulations regulating the use of electronic signatures, including California Civil Code section 1633.1 et seq., otherwise known as the "Uniform Electronic Transactions Act" ("UETA"), California Government Code section 16.5 and 2 C.C.R. section 22000 et seq. This policy and the guidelines and procedures included hereunder are intended to comply entirely with all applicable laws and regulations including, without limitation, the aforementioned statutes and regulations. To the extent that any procedure, policy, or guideline contained herein conflicts with applicable law, City staff, officials, and agents and all other persons subject to this policy are required and expected to comply with the requirements of the applicable law(s). Definitions "Digital Signature" has the definition set forth in California Government Code Section 16.5 and is a type of electronic signature. "Electronic record" means a record that is created, generated, sent, communicated, received, or stored by electronic means. "Electronic signature" or "e-signature" means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record, and includes digital signatures. The following are also considered electronic signatures when the requirements of this policy are followed: (1) facsimile signatures, and (b) an image of a signature electronically affixed to a document. "External Document" is any document generated by or required to be signed by persons other than City officials or employees. Examples of external documents include agreements to which the City is a party that must be signed by a non -City party and applications to be completed by members of the public and submitted to the City. Electronic Signature Use Policy Page 2 of 3 "Internal Document" is an administrative form or document designed for use exclusively by City staff to support internal workflow processes. Examples of such documents include human resources administrative forms, purchase requests, or other documents available over the City drive. "Proxy signature" means when Person A authorizes Person B to sign Person A's signature on their behalf. Proxy signatures are prohibited under this policy. "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. "Signature authority' is the authority to execute a document on behalf of the City via signature, whether electronic or manual. Requirements of Electronic Signatures The use of electronic signatures is permitted and shall have the same force and effect as the use of a "wet" or manual signature if all the following criteria are met: The electronic signature has been generated using an acceptable form of technology to generate and save the signature. 2. The electronic signature is unique to the person using it. 3. The electronic signature is capable of verification. 4. The electronic signature is under the sole control of the person using it. (a) Email notifications requesting electronic signatures shall not be forwarded. (b) The use of proxy signatures is prohibited. 5. The electronic signature is linked to the data in such a manner that if the data is changed after the electronic signature is affixed, the electronic signature is invalidated. External Documents In the case of external documents or agreements or documents which must be signed by outside parties, each party to the agreement or document must agree in advance to the use of an electronic signature. No City official or employee shall sign an external document unless such official or employee has signature authority to sign such document. If a third party that is required to sign a document does not consent to the use of electronic signatures, or if the entity requires a wet signature for legal purposes, the City will honor such requirements and provide a manual signature in lieu of an electronic signature. When a document is electronically signed by all parties, the City, the outside party (if an outside party originates the document), or a third -party service provider facilitating the signatures on the document will notify the parties of the availability of and/or provide the parties with a copy of the digitally signed document in an electronic format that is capable of being retained and printed. Electronic Signature Use Policy Page 3 of 3 Internal Documents Electronic signatures may be used on internal documents, such as memos, reports, request forms, Human Resources documents, and other documents that are used to conduct business within and between City departments and staff. The use of a facsimile signature and an image of a signature electronically fixed to a document are acceptable for Internal Documents, provided that appropriate safeguards are observed, as determined by the City Manager or his or her designee. Comprehensive List The City Clerk will make available a comprehensive list of documents for which electronic signatures may be used as well as documents for which electronic signatures are prohibited, and will update and revise such list administratively as needed. Storage and Archiving of Electronically Signed Documents If a document exists only electronically, steps should be taken by each Department to ensure that a fixed version of the final document and audit trail, which details the electronic signature process, are provided to, and stored in some manner with, the City Clerk's Office. All final electronic documents must be stored in a manner consistent with the City's document retention policies and any applicable laws. Digital Solution Providers The City Clerk's Office, with approval of the City Manager, will be responsible to determine acceptable technologies and digital providers consistent with current State law requirements and industry best practices to ensure the security and integrity of the signature. In 2022, the City entered into an agreement with DocuSign for DocuSign to provide electronic signature capabilities and services to the City. DocuSign will be used for gathering internal and external electronic signatures as permitted under this policy and as authorized by law. To set up employees with DocuSign and for authorization to send out documents for electronic signatures, the Department shall contact the City Clerk's Office.