Item 5 - CONSIDERATION OF AN ORDINANCE AMENDING ARTICLE VIII OF CHAPTER 2 OF THE WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE REGULATIONSAGENDA ITEM NO.5
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: December 6, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING ARTICLE VIII OF CHAPTER 2 OF
THE WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE
REGULATIONS
RECOMMENDATION:
It is recommended that the City Council introduce for first reading, by title only, the following ordinance:
ORDINANCE NO. 2510 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AMENDING ARTICLE VIII OF CHAPTER 2 OF THE WEST COVINA
MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE REGULATIONS
BACKGROUND:
Assembly Bill No. 571 ("AB 571") amended California Government Code section 85301 to impose a
default campaign contribution limit on cities and counties that do not impose campaign contribution limits,
effective January 1, 2021. California Government Code section 85702.5 permits the City to, by ordinance
or resolution, impose a campaign contribution limit that is different from the amount set forth in California
Government Code section 85301(d).
The City of West Covina's campaign finance regulations are codified in Article VIII (Campaign
Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code. The City Council last
updated Article VIII of Chapter 2 in 2015 through the adoption of Ordinance No. 2272.
Pursuant to Section 2-402 of Article VIII of Chapter 2, no person shall make, and no candidate shall
receive from any person, any contribution to the campaign of any individual candidate for any City of
West Covina elective office in excess of $500 in any calendar year. Section 2-402 provides that the
amount shall be adjusted on January 1 of every odd -numbered year to reflect any increase or decrease
in the Consumer Price Index for the prior year. Due to adjustments based on increases to the Consumer
Price Index, the maximum contribution limit is currently $615.
Staff is presenting for the City Council's consideration proposed Ordinance No. 2510, which would
increase the maximum contribution limit to $650 and make other updates to Article VIII.
DISCUSSION:
The proposed ordinance makes the following changes to Article VIII of Chapter 2 of the West Covina
Municipal Code:
. Increases the maximum contribution limit to $650
. Provides that committees are subject to the contribution limit
. Adds a definitions section. The current provisions of Article VIII of Chapter 2 provide that the
definitions set forth in the Political Reform Act apply to the provisions of Article VIII. The proposed
ordinance similarly references the definitions set forth in the Political Reform Act, but also provides
definitions for certain key terms, utilizing the definitions set forth in the Political Reform Act
. Renumbers and rearranges certain sections of Article VIII of Chapter 2
LEGAL REVIEW:
The City Attorney's Office has reviewed the ordinance and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve staffs recommendation; or
2. Provide alternative direction.
Prepared by: David Carmany, City Manager
Attachments
Attachment No. 1 - Ordinance No. 2510
Attachment No. 2 - Redline of Article VIII of Chapter 2
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness
ATTACHMENT NO. 1
ORDINANCE NO. 2510
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AMENDING ARTICLE VIII OF
CHAPTER 2 OF THE WEST COVINA MUNICIPAL CODE
RELATING TO CAMPAIGN FINANCE REGULATIONS
WHEREAS, Assembly Bill No. 571 ("AB 571 ") amended California Government Code section
85301 to impose a default campaign contribution limit on cities and counties that do not impose
campaign contribution limits, effective January 1, 2021; and
WHEREAS, California Government Code section 85702.5 permits the City to, by ordinance
or resolution, impose a campaign contribution limit that is different from the amount set forth in
California Government Code section 85301(d); and
WHEREAS, the City of West Covina's campaign finance regulations are codified in Article
VIII (Campaign Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code; and
WHEREAS, the City Council last updated Article VIII of Chapter 2 in 2015 through the
adoption of Ordinance No. 2272; and
WHEREAS, pursuant to Section 2-402 of Article VIII of Chapter 2, no person shall make, and
no candidate shall receive from any person, any contribution to the campaign of any individual
candidate for any City of West Covina elective office in excess of $500 in any calendar year. Section
2-402 provides that the amount shall be adjusted on January 1 of every odd -numbered year to reflect
any increase or decrease in the Consumer Price Index for the prior year; and
WHEREAS, due to adjustments based on increases to the Consumer Price Index, the
maximum contribution amount is currently $615; and
WHEREAS, the City Council desires to update and clarify the City's campaign finance
regulations, including increasing the maximum contribution amount to $650 and providing that
committees are subject to such limitation; and
WHEREAS, the City Council finds that transparency in local elections regarding financial
contributions and influence are important to promoting the election process and ensuring a fair
election process for all candidates; and
WHEREAS, the City Council also finds that the provisions of Article VIII of Chapter 2 are
necessary to combat corruption and the appearance of corruption in the City's election process; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The City Council finds that all of the recitals set forth herein are
true and correct.
Ordinance No. 2510
Page 1 of 11
SECTION 2. Amendment to Article VIII of Chapter 2. Article VIII (Campaign
Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby
amended to read as follows:
Sec. 2-400. Findings, declarations, and purpose.
In enacting this article, the city council finds and declares as follows:
(1) Findings and declarations.
a. Monetary contributions to political campaigns are a legitimate form of participation
in the political process; however, the financial strength of certain persons, as defined herein,
should not permit the exercise of a disproportionate, controlling, or corrupting influence in a local
election of candidates.
b. The increasing costs of political campaigns have compelled candidates to take
larger amounts of money from persons with specific financial stake in matters before the city
council. This has caused a public perception that votes may be improperly influenced by monetary
contributions.
C. The tendency for campaign contributions to be dominated by a small number of
very large contributors undermines the integrity of the governmental process, the competitiveness
of campaigns, and the public confidence in local officials and local agencies.
d. High campaign costs are also forcing officeholders to spend more time on
fundraising and less time on the public's business. The constant pressure to raise contributions
is distracting officeholders from urgent governmental matters.
(2) Purpose. The city council enacts this article to accomplish the following purposes:
a. To improve methods of financing campaigns in order to ensure the public's right -
to -know, combat corruption, and the appearance of corruption, and undue influence, enable
candidates to compete more equitably for public office, and promote citizen participation in the
political process.
b. To prevent parties with a specific financial interest in the city's decisions from
exerting undue influence over those decisions by means of large campaign contributions.
C. To allow candidates and officeholders to spend a lesser proportion of their time on
fundraising and greater proportion of their time dealing with issues of importance to the city and
its residents.
ways.
d. To improve the disclosure of contribution sources in reasonable and effective
e. To restore public trust in governmental electoral institutions.
Sec. 2-400.1. Definitions.
The following terms as used in this article shall, unless the context already indicates
otherwise, have the respective meanings set forth in this section. Terms not defined in this article
Ordinance No. 2510
Page 2 of 11
shall have the meaning ascribed to them in the Political Reform Act of 1974, California
Government Code section 81000 et seq., and the regulations enacted by the California Fair
Political Practices Commission.
Candidate has the meaning set forth in California Government Code section 82007, as
amended, which defines a candidate as:
(1) Anyone who is listed on a ballot or is qualified to have write-in votes cast on their behalf
counted by elections officials for nomination or election to any elective office.
(2) Anyone who receives a contribution, makes an expenditure, or gives their consent for
another person to receive a contribution or make an expenditure, to bring about the person's
nomination or election to an elective office, even if any of the following apply:
(A) The specific elective office for which the person will seek nomination or election is
unknown at the time the contribution is received or the expenditure is made.
(B) The person has not announced the candidacy or filed a declaration of candidacy.
(3) An elected officer, including any elected officer who is the subject of a recall.
Committee has the meaning set forth in California Government Code section 82013, as
amended, which defines a committee as any person or combination of persons who directly or
indirectly does any of the following:
(1) Receives contributions totaling two thousand dollars ($2,000) or more in a calendar
year.
(2) Makes independent expenditures totaling one thousand dollars ($1,000) or more in a
calendar year; or
(3) Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year
to or at the behest of candidates or committees.
Contribution has the meaning set forth in California Government Code section 82015, as
amended, which defines a contribution as a payment, a forgiveness of a loan, a payment of a
loan by a third party, or an enforceable promise to make a payment, except to the extent that full
and adequate consideration is received or if it is clear from the surrounding circumstances that
the payment is not made for political purposes.
Person has the meaning set forth in California Government Code section 82047, as
amended, which defines a "person" as an individual, proprietorship, firm, partnership, joint
venture, syndicate, business trust, company, corporation, limited liability company, association,
committee, and any other organization or group of persons acting in concert.
Sec. 2-401. Campaign contribution reporting requirements.
Candidates running for and officeholders in positions of elective office in the city shall
adhere to the following campaign contribution reporting requirements:
Ordinance No. 2510
Page 3 of 11
(1) Provide full disclosure of any donation in the amount of one hundred dollars
($100.00) or more given to his or her campaign.
(2) Provide the names and addresses of all individuals who give money to his/her
campaign in the amount of one hundred dollars ($100.00) or more.
(3) Require that all money donations in the amount of one hundred dollars ($100.00)
or more be made in the form of a written instrument containing the name of the donor and the
name of the payee and drawn from the account of the donor or the intermediary, as defined in
Government Code section 84302. "Written instrument" includes, but is not limited to, check and
credit card donations, but excludes money orders, traveler's checks and cashier's checks.
Sec. 2-402. Contributions by persons.
No person shall make, and no candidate shall receive from any person, any contribution
to the campaign of any individual candidate for any City of West Covina elective public office in
excess of six hundred fifty dollars ($650.00) in any calendar year. This amount shall automatically
be adjusted on January 1 of every odd -numbered year to reflect any increase or decrease in the
Consumer Price Index for the prior year utilizing the standard as established by the Bureau of
Labor Statistics of the U.S. Department of Labor for all urban consumers in the Los Angeles,
Riverside and Orange County areas. This adjustment shall be rounded to the nearest one dollar
($1.00). This adjustment shall also be published on the city's website, if it exists, and posted at
three (3) public places for at least ninety (90) days from its effective date.
Sec. 2-403. Independent expenditures.
(a) Purpose. The purpose of this section is to ensure transparency of independent
expenditures so that voters in city elections are provided information on contributors, contributions
and expenditures in a timely manner.
(b) Definitions. For purposes of this section, the following definitions shall apply:
(1) Campaign communication means any of the following campaign related items:
a. More than two hundred (200) substantially similar pieces of campaign literature
distributed within a calendar month, including, but not limited to, mailers, flyers, facsimiles,
pamphlets, door hangers, e-mails, campaign buttons ten (10) inches in diameter or larger, and
bumper stickers sixty (60) square inches or larger;
b. Posters, yard or street signs, billboards, super -graphic signs and similar items;
C. Television, cable, satellite, internet and radio broadcasts;
d. Newspaper, magazine, internet website banners and similar advertisements; or
e. More than two hundred (200) substantially similar live or recorded telephone calls
made within a calendar month.
(2) City candidate means any person who is a candidate for a city office.
Ordinance No. 2510
Page 4 of 11
(3) City measure means any local measure placed on the ballot by the City of West
Covina, including voter sponsored initiatives, recall and referendum measures, in an election
which is governed by the California Elections Code.
(4) City office means any office of the City of West Covina that is filled by way of a
vote of the people of the City of West Covina.
(5) Elective city officer means any member of the West Covina City Council, or any
other city office that is filled by way of a vote of the people of the City of West Covina.
(6) Individual means a living person contributing funds.
(7) Independent expenditure means an expenditure made by any person or committee
in connection with a communication which expressly advocates the election or defeat of a clearly
identified candidate or the qualification, passage or defeat of a clearly identified measure, or taken
as a whole and in context, unambiguously urges a particular result in an election but which is not
made to or at the behest of the affected candidate or committee.
(c) Reporting of independent expenditures. Disclosure of payments for independent
expenditures shall be as follows:
(1) At any time, any person, including any committee, that makes or incurs
independent expenditures that combine to one thousand dollars ($1,000.00) or more in support
of or in opposition to any candidate for elective city office or any city measure shall report to the
West Covina City Clerk's office within twenty-four (24) hours by certified mail, fax or e-mail each
time this threshold is reached. The form of notification is described in subsections (c)(2) and (c)(3)
of this section, and the city clerk shall post this notification on the city's website immediately upon
receipt, but no later than the next business day.
(2) The notification shall consist of a declaration made under penalty of perjury and
signed by the person or officer and the treasurer of the group making the expenditure, specifying
the following: (i) if applicable, each candidate who was supported or opposed by the expenditure;
(ii) the amount spent to support or oppose each candidate or measure; (iii) if applicable, whether
the measure was supported or opposed; and, (iv) that the expenditure was not behested by the
candidate or candidates who benefited from the expenditure.
(3) In addition, the notification shall include the date and amount of the payment, a
description of the type of communication for which the payment was made or incurred, the name
and address of the person making the payment, the name and address of the payee or committee,
and a copy of the mailing or advertisement, or a copy of the script or recording of the call,
transmission, or advertisement. The West Covina City Clerk shall determine the reporting form to
fulfill the notification requirement.
(d) Additional requirements for campaign communications funded by independent
expenditures.
(1) Campaign communications funded by an independent expenditure supporting or
opposing city candidates or city measures shall include the following disclosures: "This
communication was not authorized by candidate (name) for (office)" or "(name) initiative
proponenttopponent."
Ordinance No. 2510
Page 5 of 11
(2) Campaign communications funded by an independent expenditure supporting or
opposing city candidates or city measures shall include the names of the two (2) largest
contributors within the preceding one hundred eighty (180) days from the date the communication
is sent, along with the donors' city and state of residence. The disclosure required by this
subsection shall be presented in a clear and conspicuous manner so as to give the reader,
observer or listener adequate notice as follows:
a. For printed campaign communications that measure no more than twenty-four (24)
inches by thirty-six (36) inches, all disclosure statements required by this subsection shall be
printed using a typeface that is easily legible to an average reader or viewer, but is not less than
ten -point type in contrasting color to the background on which it appears. For oversize printed
campaign communications, all disclosure statements shall constitute at least five (5) percent of
the height of the material and be printed in contrasting color.
b. For video broadcasts including television, satellite, internet, telephone and cable
campaign communications, the information shall be both written and spoken either at the
beginning or at the end of the communication, except that if the disclosure statement is written for
at least five (5) seconds of a broadcast of thirty (30) seconds or less or ten (10) seconds of a
sixty-second broadcast, a spoken disclosure statement is not required. The written disclosure
statement shall be of sufficient size to be readily legible to an average viewer and air for not less
than five (5) seconds.
C. For audio, telephone call or radio advertisement campaign communications, the
disclosures shall be spoken in a clearly audible manner at the same speed and volume as the
rest of the telephone call or radio advertisement at the beginning or end of the communication
and shall last at least three (3) seconds. The requirement shall be satisfied by using the words
"on behalf of immediately followed by the name of the candidate or committee that pays for the
communication.
Sec. 2-404. Definitions.
For purposes of sections 2-404.1 and 2-404.2 of this article, the following words and
phrases shall have the meanings ascribed to them in this section:
Affected party means a party to a city contract, a subcontractor under a city contract, an
applicant seeking entitlement, a contractor of applicant seeking entitlement, or a subcontractor of
applicant seeking entitlement.
Applicant seeking entitlement means any person who has filed an application or letter
seeking approval of an entitlement with the city, successor agency, or housing authority, or any
person who is an owner or lessee of property on whose behalf an application or letter seeking
approval of an entitlement is filed.
Application is pending means an application or letter which is subject to review, hearing
or consideration by the council, successor agency, CDC, and/or housing authority and the
application or letter seeking an entitlement has been filed and, either will be set for review, hearing
or other consideration by the council, successor agency, or housing authority as a matter of right,
or has been formally appealed to the council, successor agency, CDC or housing authority. The
three examples set forth below are intended to provide interpretive guidance:
Ordinance No. 2510
Page 6 of 11
(1) An application for a zone change is filed. Since a zone change can only be
effectuated by the council, upon filing the application it would be deemed pending before the
council;
(2) An application for a conditional use permit is filed. Only at such time as the grant
or denial of a conditional use permit is appealed to the council would it be pending before the
council;
(3) Any application for which the council is either the sole determining body or as to
which a final decision must be made by the council.
CDC means the West Covina Community Development Commission.
City contract means any agreement or contract, including any amendment or modification
to an agreement or contract, with the city, successor agency, CDC or housing authority, where
such contract or agreement is subject to approval by the council, successor agency, CDC, or
housing authority for (a) the rendition of personal services; (b) construction and/or the furnishing
of any material, supplies or equipment; (c) the sale, lease, exchange, or transfer of any land or
building to or from the city, successor agency, CDC, or housing authority; or (d) a grant, loan,
loan guaranty, land write down, or other similar form of financial assistance. "Contract' does not
include a contract awarded pursuant to a competitive bidding process under the Public Contracts
Code, a transfer or exchange of land to or from one public agency to another public agency, or
the transfer of an easement, license, or right-of-way in the ordinary course of a development
project.
Contractor of applicant seeking entitlement means a person who is, or has been promised
to be, a party to a contract as an architect, design professional, engineer, or general or prime
contractor with an applicant seeking entitlement, as defined herein, which contract has, or would
have a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more.
Council means the city council of the City of West Covina.
Design professional means a person who performs services in the nature of designing
structures, buildings, interiors, landscape and/or hardscape but does not have any particular
license.
Entitlement means permit, license, conditional use permit, variance, site plan, architectural
or design review (at any stage), franchise, administrative exception, parking reduction, review of
plans, development agreement, disposition and development agreement, exclusive negotiation
agreement, owner participation agreement, affordable housing agreement, financial assistance
for a proposed project, or any other land use entitlement which is discretionary and not ministerial
in nature; provided, however, that entitlements for residential developments of five (5) units or
less or additions to a single-family home, duplex, tri-plex or four-plex shall be expressly excluded.
Housing authority means the housing authority of the City of West Covina.
Related persons includes any of the following persons with respect to a party with a city
contract, a subcontractor under a city contract, applicant seeking entitlement, contractor of
applicant seeking entitlement, and subcontractor of applicant seeking entitlement: a member of
its board of directors, its chairperson, its chief executive officer/president, its chief financial officer,
its chief operating officer, any person with ownership interest of more than ten (10) percent in
Ordinance No. 2510
Page 7 of 11
such person, and/or any committee, as defined in this chapter, that is owned or controlled by such
person.
Subcontract means a contract subordinate to another contract made between the
contracting parties which includes an agreement for a subcontractor to perform all or part of
certain work to be performed by an architect, design professional, engineer, general or prime
contractor.
Subcontractor means a person who has entered into a contract for the performance of all
or a portion of the work undertaken under an agreement with an architect, design professional,
engineer, or general or prime contract, usually by a general or prime contractor.
Subcontractor of applicant seeking entitlement means a person who is, or has been
promised to be, a party to a subcontract as an architect, design professional, engineer, or to
perform other work with a "contractor of applicant seeking entitlement' as defined herein, which
subcontract has, or would have a total anticipated or actual value of thirty thousand dollars
($30,000.00) or more.
Successor agency means the successor agency to the West Covina Redevelopment
Agency.
Sec. 2-404.1. Campaign contributions from applicants and contractors.
(a) No person who is an applicant or proposer to be a party to a city contract, or who
is a party to a city contract, as defined in section 2-403, other affected party, or related persons,
shall make a contribution to an individual holding city elective office where the city contract has a
total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a combination
or series of such contracts or agreements having a value of thirty thousand dollars ($30,000.00)
or more.
(b) No member of the council, nor the city clerk or city treasurer shall receive a
contribution from a person who is a party to a city contract, or an applicant or proposer to be a
party to a city contract, as defined in section 2-403, or related persons, where the city contract
has a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a
combination or series of such contracts, having a value of thirty thousand dollars ($30,000.00) or
more.
(c) No person acting as a subcontractor under a subcontract through a city contract,
as defined in section 2-403, or related persons, shall make a contribution to a council member
where an individual subcontract has a total anticipated or actual value of fifteen thousand dollars
($15,000.00) or more, or a combination or series of such individual subcontracts with the same
subcontractor, for the same or different projects with the aggregate value of fifteen thousand
dollars ($15,000.00) or more.
(d) No member of the council shall receive a contribution from a person who is party
to a subcontract under a city contract, as defined in section 2-403, or related persons, where the
subcontract has a total anticipated or actual value of fifteen thousand dollars ($15,000.00) or
more, or a combination or series of such subcontracts having a value of fifteen thousand dollars
($15,000.00) or more.
Ordinance No. 2510
Page 8 of 11
(e) No applicant seeking entitlement, contractor of an applicant seeking entitlement or
a subcontractor of an applicant seeking entitlement, or related persons, shall make a contribution
to a council member while such application is pending before the council, successor agency,
CDC, or housing authority and for a period of twelve (12) months after the last and final action on
that entitlement by the council, successor agency, CDC or housing authority.
Sec. 2-404.2. Posting of list of contractors, subcontractors, vendors and applicants for
entitlements.
City staff shall prepare a list or lists of: Applicants or proposers for city contracts in the
amount of thirty thousand dollars ($30,000.00) or more; parties to city contracts in the amount of
thirty thousand dollars ($30,000.00) or more; subcontractors under city contracts with anticipated
or actual value of fifteen thousand dollars ($15,000.00) or more, individually or in the aggregate;
applicants seeking entitlements; contractors of applicants seeking entitlements; and,
subcontractors of applicants seeking entitlements, while such application is pending before the
council or other legislative body of the city and for twelve (12) months thereafter. Such list or lists
shall be posted on the city's website and made available to all elected officials and candidates.
Sec. 2-405. Enforcement.
(a) Any person who believes that a violation of this article has occurred may file a
complaint with the city attorney. The city attorney shall investigate and shall have investigative
powers as are necessary for the performance of his or her duties under this article.
(b) The city attorney, or any registered voter of the city, may bring a civil action to
enjoin violations of or compel compliance with the provisions of this article.
Sec. 2-405.1. Penalties.
(a) Any person who knowingly or willfully violates any provision of this article shall be
guilty of a misdemeanor, and on conviction thereof shall be punishable by a fine of not more than
one thousand dollars ($1,000.00) for each violation or by imprisonment of not more than six (6)
months or both such fine and imprisonment.
(b) Notwithstanding subsection (a), any person who intentionally or negligently
violates any of the provisions of this article may be subject to a civil action brought by the city
attorney acting as the civil prosecutor for an amount up to one thousand dollars ($1,000.00) for
each violation, or three (3) times the amount not reported, or the amount received in excess of
the amount allowable pursuant to this article, whichever is greater.
SECTION 3. Environmental Compliance. Pursuant to the provisions of the California
Environmental Quality Act ("CEQA') (California Public Resources Code Sections 21000 et seq.)
and State CEQA Guidelines (Sections 15000 et seq.), the City Council finds that this Ordinance is
not a "project' and further, that it can be seen with certainty that there is no possibility that the
Ordinance may have a significant effect on the environment, either directly or indirectly, and that
therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines
Section 15061(b)(3) (Common Sense Exception).
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion
of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining portions
Ordinance No. 2510
Page 9 of 11
of this Ordinance. The City Council of the City of West Covina hereby declares that it would have
adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
phrases, or portions be declared invalid or unconstitutional.
SECTION 5. Certification. The City Clerk shall certify passage of this ordinance and shall
cause the same to be published as required by law.
SECTION 6. Effective Date. This ordinance shall take effect and be in force thirty (30)
days from and after the date of its passage.
PASSED, APPROVED AND ADOPTED this day of , 2023.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Rosario Diaz
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
Ordinance No. 2510
Page 10 of 11
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby
certify that the foregoing Ordinance No. 2510 was introduced at a regular meeting of the City
Council held on the 6th day of December, 2022, and adopted at a regular meeting of the City
Council held on the _ day of 2023, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
Ordinance No. 2510
Page 11 of 11
ATTACHMENT NO. 2
ARTICLE Vlll. CAMPAIGN CONTRIBUTIONS
Sec. 2-400. Findings, declarations, and purpose.
In enacting this article, the city council finds and declares as follows:
(1) Findings and declarations.
a. Monetary contributions to political campaigns are a legitimate form of
participation in the political process; however, the financial strength of certain
persons, as defined herein, should not permit the exercise of a disproportionate,
controlling, or corrupting influence in a local election of candidates.
b. The increasing costs of political campaigns have compelled candidates to take
larger amounts of money from persons with specific financial stake in matters
before the city council. This has caused a public perception that votes may be
improperly influenced by monetary contributions.
c. The tendency for campaign contributions to be dominated by a small number of
very large contributors undermines the integrity of the governmental process, the
competitiveness of campaigns, and the public confidence in local officials and
local agencies.
de. High campaign costs are also forcing officeholders to spend more time on
fundraising and less time on the public's business. The constant pressure to raise
contributions is distracting officeholders from urgent governmental matters.
(2) Purpose. The city council enacts this article to accomplish the following purposes:
a. To improve methods of financing campaigns in order to ensure the public's right -
to -know, combat corruption, and the appearance of corruption, and undue
influence, enable candidates to compete more equitably for public office, and
promote citizen participation in the political process.
b. To prevent parties with a specific financial interest in the city's decisions from
exerting undue influence over those decisions by means of large campaign
contributions.
c. To allow candidates and officeholders to spend a lesser proportion of their time
on fundraising and greater proportion of their time dealing with issues of
importance to the city and its residents.
d. To improve the disclosure of contribution sources in reasonable and effective
ways.
e. To restore public trust in governmental electoral institutions.
Sec.2-400.14 Definitions.
The following terms as used in this article shall, unless the context already indicates otherwise,
have the respective meanings set forth in this section. Terms not defined in this article shall
have the meaning ascribed to them in the Political Reform Act of 1974, California Government
Code section 81000 et seq.. and the regulations enacted by the California Fair Political
Practices Commission.
"Candidate" has the meaning set forth in California Government Code section 82007, as
amended, which defines a "candidate" as:
(1) Anyone who is listed on a ballot or is qualified to have write-in votes cast on their behalf
counted by elections officials for nomination or election to any elective office.
(2) Anyone who receives a contribution, makes an expenditure, or gives their consent for
another person to receive a contribution or make an expenditure, to bring about the person's
nomination or election to an elective office, even if any of the following apply:
(B) The person has not announced the candidacy or filed a declaration of candidacy.
(3) An elected officer, including any elected officer who is the subject of a recall.
"Committee" has the meaning set forth in California Government Code section 82013, as
amended, which defines a "committee" as any person or combination of persons who directly or
indirectly does any of the following:
(1) Receives contributions totaling two thousand dollars ($2,000) or more in a calendar
year.
(2) Makes independent expenditures totaling one thousand dollars ($1,000) or more in a
calendar year: or
(3) Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year
to or at the behest of candidates or committees.
"Contribution" has the meaning set forth in California Government Code section 82015, as
amended, which defines a "contribution" as a payment, a forgiveness of a loan, a payment of a
loan by a third party, or an enforceable promise to make a payment, except to the extent that full
and adequate consideration is received or if it is clear from the surrounding circumstances that
the payment is not made for political purposes.
"Person" has the meaning set forth in California Government Code section 82047, as amended,
which defines a "person" as an individual, proprietorship, firm, partnership, joint venture,
syndicate, business trust, company, corporation, limited liability company, association,
committee, and any other organization or group of persons acting in concert.
Sec. 2-401. Campaign contribution reporting requirements.
Candidates running for and officeholders in positions of elective office in the city shall
adhere to the following campaign contribution reporting requirements:
(1) Provide full disclosure of any donation in the amount of one hundred dollars ($100.00)
or more given to his or her campaign.
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(2) Provide the names and addresses of all individuals who give money to his/her
campaign in the amount of one hundred dollars ($100.00) or more.
(3) Require that all money donations in the amount of one hundred dollars ($100.00) or
more be made in the form of a written instrument containing the name of the donor
and the name of the payee and drawn from the account of the donor or the
intermediary, as defined in Government Code section 84302. "Written instrument"
includes, but is not limited to, check and credit card donations, but excludes money
orders, traveler's checks and cashier's checks.
Sec. 2-402.2-. Contributions by persons.
No person shall make, and no candidate shall receive from any person, any contribution to
the campaign of any individual candidate for any City of West Covina elective public office in
excess of sixf+ve hundred fifty dollars ($65500.00) in any calendar year. This amount shall
automatically be adjusted on January 1 of every odd -numbered year to reflect any increase or
decrease in the Consumer Price Index for the prior year utilizing the standard as established by
the Bureau of Labor Statistics of the U.S. Department of Labor for all urban consumers in the
Los Angeles, Riverside and Orange County areas. This adjustment shall be rounded to the
nearest one dollar ($1.00). This adjustment shall also be published on the city's website, if it
exists, and posted at three (3) public places for at least ninety (90) days from its effective date.
Sec. 2-40323. Independent expenditures.
(a) Purpose. The purpose of this section is to ensure transparency of independent
expenditures so that voters in city elections are provided information on contributors,
contributions and expenditures in a timely manner.
(b) Definitions. For purposes of this section, the following definitions shall apply:
(1) Campaign communication means any of the following campaign related items:
a. More than two hundred (200) substantially similar pieces of campaign literature
distributed within a calendar month, including, but not limited to, mailers, flyers,
facsimiles, pamphlets, door hangers, e-mails, campaign buttons ten (10) inches
in diameter or larger, and bumper stickers sixty (60) square inches or larger;
b. Posters, yard or street signs, billboards, super -graphic signs and similar items;
c. Television, cable, satellite, internet and radio broadcasts;
d. Newspaper, magazine, internet website banners and similar advertisements; or
e. More than two hundred (200) substantially similar live or recorded telephone calls
made within a calendar month.
(2) City candidate means any person who is a candidate for a city office.
(3) City measure means any local measure placed on the ballot by the City of West
Covina, including voter sponsored initiatives, recall and referendum measures, in an
election which is governed by the California Elections Code.
(4) City office means any office of the City of West Covina that is filled byway of a vote of
the people of the City of West Covina.
(5) Elective city officer means any member of the West Covina City Council, or any other
city office that is filled by way of a vote of the people of the City of West Covina.
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(6) Individual means a living person contributing funds.
(7) Independent expenditure means an expenditure made by any person or committee in
connection with a communication which expressly advocates the election or defeat of
a clearly identified candidate or the qualification, passage or defeat of a clearly
identified measure, or taken as a whole and in context, unambiguously urges a
particular result in an election but which is not made to or at the behest of the affected
candidate or committee.
(c) Reporting of independent expenditures. Disclosure of payments for independent
expenditures shall be as follows:
(1) At any time, any person, including any committee, that makes or incurs independent
expenditures that combine to one thousand dollars ($1,000.00) or more in support of
or in opposition to any candidate for elective city office or any city measure shall report
to the West Covina City Clerk's office within twenty-four (24) hours by certified mail,
fax or e-mail each time this threshold is reached. The form of notification is described
in subsections (c)(2) and (c)(3) of this section, and the city clerk shall post this
notification on the city's website immediately upon receipt, but no later than the next
business day.
(2) The notification shall consist of a declaration made under penalty of perjury and
signed by the person or officer and the treasurer of the group making the expenditure,
specifying the following: (i) if applicable, each candidate who was supported or
opposed by the expenditure; (ii) the amount spent to support or oppose each
candidate or measure; (iii) if applicable, whether the measure was supported or
opposed; and, (iv) that the expenditure was not behested by the candidate or
candidates who benefited from the expenditure.
(3) In addition, the notification shall include the date and amount of the payment, a
description of the type of communication for which the payment was made or incurred,
the name and address of the person making the payment, the name and address of
the payee or committee, and a copy of the mailing or advertisement, or a copy of the
script or recording of the call, transmission, or advertisement. The West Covina City
Clerk shall determine the reporting form to fulfill the notification requirement.
(d) Additional requirements for campaign communications funded by independent
expenditures.
(1) Campaign communications funded by an independent expenditure supporting or
opposing city candidates or city measures shall include the following disclosures:
"This communication was not authorized by candidate (name) for (office)" or "(name)
initiative proponent/opponent."
(2) Campaign communications funded by an independent expenditure supporting or
opposing city candidates or city measures shall include the names of the two (2)
largest contributors within the preceding one hundred eighty (180) days from the date
the communication is sent, along with the donors' city and state of residence. The
disclosure required by this subsection shall be presented in a clear and conspicuous
manner so as to give the reader, observer or listener adequate notice as follows:
a. For printed campaign communications that measure no more than twenty-four
(24) inches by thirty-six (36) inches, all disclosure statements required by this
subsection shall be printed using a typeface that is easily legible to an average
reader or viewer, but is not less than ten -point type in contrasting color to the
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background on which it appears. For oversize printed campaign communications,
all disclosure statements shall constitute at least five (5) percent of the height of
the material and be printed in contrasting color.
b. For video broadcasts including television, satellite, internet, telephone and cable
campaign communications, the information shall be both written and spoken
either at the beginning or at the end of the communication, except that if the
disclosure statement is written for at least five (5) seconds of a broadcast of thirty
(30) seconds or less or ten (10) seconds of a sixty-second broadcast, a spoken
disclosure statement is not required. The written disclosure statement shall be of
sufficient size to be readily legible to an average viewer and air for not less than
five (5) seconds.
c. For audio, telephone call or radio advertisement campaign communications, the
disclosures shall be spoken in a clearly audible manner at the same speed and
volume as the rest of the telephone call or radio advertisement at the beginning
or end of the communication and shall last at least three (3) seconds. The
requirement shall be satisfied by using the words "on behalf of immediately
followed by the name of the candidate or committee that pays for the
communication.
Sec.2-404.3 Definitions.
) The definitions set forth in California Government Gode seetion 82000 et seq. shall be
1a) For purposes of sections 2-404_15-.50 and 2-404_26.60 of this article, the following words
and phrases shall have the meanings ascribed to them in this sectionraean:
Affected party means a party to a city contract, a subcontractor under a city contract, an
applicant seeking entitlement, a contractor of applicant seeking entitlement, or a subcontractor
of applicant seeking entitlement.
Applicant seeking entitlement means any person who has filed an application or letter
seeking approval of an entitlement with the city, successor agency, or housing authority, or any
person who is an owner or lessee of property on whose behalf an application or letter seeking
approval of an entitlement is filed.
Application is pending means an application or letter which is subject to review, hearing or
consideration by the council, successor agency, CDC, and/or housing authority and the
application or letter seeking an entitlement has been filed and, either will be set for review,
hearing or other consideration by the council, successor agency, or housing authority as a
matter of right, or has been formally appealed to the council, successor agency, CDC or
housing authority. The three examples set forth below are intended to provide interpretive
guidance:
(1) An application for a zone change is filed. Since a zone change can only be effectuated
by the council, upon filing the application it would be deemed pending before the
council;
(2) An application for a conditional use permit is filed. Only at such time as the grant or
denial of a conditional use permit is appealed to the council would it be pending before
the council;
(3) Any application for which the council is either the sole determining body or as to which
a final decision must be made by the council.
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CDC means the West Covina Community Development Commission.
City contract means any agreement or contract, including any amendment or modification
to an agreement or contract, with the city, successor agency, CDC or housing authority, where
such contract or agreement is subject to approval by the council, successor agency, CDC, or
housing authority for (a) the rendition of personal services; (b) construction and/or the furnishing
of any material, supplies or equipment; (c) the sale, lease, exchange, or transfer of any land or
building to or from the city, successor agency, CDC, or housing authority; or (d) a grant, loan,
loan guaranty, land write down, or other similar form of financial assistance. "Contract' does not
include a contract awarded pursuant to a competitive bidding process under the Public
Contracts Code, a transfer or exchange of land to or from one public agency to another public
agency, or the transfer of an easement, license, or right-of-way in the ordinary course of a
development project.
Contractor of applicant seeking entitlement means a person who is, or has been promised
to be, a party to a contract as an architect, design professional, engineer, or general or prime
contractor with an applicant seeking entitlement, as defined herein, which contract has, or would
have a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more.
Council means the city council of the City of West Covina.
Design professional means a person who performs services in the nature of designing
structures, buildings, interiors, landscape and/or hardscape but does not have any particular
license.
Entitlement means permit, license, conditional use permit, variance, site plan, architectural
or design review (at any stage), franchise, administrative exception, parking reduction, review of
plans, development agreement, disposition and development agreement, exclusive negotiation
agreement, owner participation agreement, affordable housing agreement, financial assistance
for a proposed project, or any other land use entitlement which is discretionary and not
ministerial in nature; provided, however, that entitlements for residential developments of five (5)
units or less or additions to a single-family home, duplex, tri-plex or four-plex shall be expressly
excluded.
Housing authority means the housing authority of the City of West Covina.
Related persons includes any of the following persons with respect to a party with a city
contract, a subcontractor under a city contract, applicant seeking entitlement, contractor of
applicant seeking entitlement, and subcontractor of applicant seeking entitlement: a member of
its board of directors, its chairperson, its chief executive officer/president, its chief financial
officer, its chief operating officer, any person with ownership interest of more than ten (10)
percent in such person, and/or any committee, as defined in this chapter, that is owned or
controlled by such person.
Subcontract means a contract subordinate to another contract made between the
contracting parties which includes an agreement for a subcontractor to perform all or part of
certain work to be performed by an architect, design professional, engineer, general or prime
contractor.
Subcontractor means a person who has entered into a contract for the performance of all
or a portion of the work undertaken under an agreement with an architect, design professional,
engineer, or general or prime contract, usually by a general or prime contractor.
Subcontractor of applicant seeking entitlement means a person who is, or has been
promised to be, a party to a subcontract as an architect, design professional, engineer, or to
perform other work with a "contractor of applicant seeking entitlement' as defined herein, which
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subcontract has, or would have a total anticipated or actual value of thirty thousand dollars
($30,000.00) or more.
Successor agency means the successor agency to the West Covina Redevelopment
Agency.
EM
Sec. 2-4045.1. Campaign contributions from applicants and contractors.
(a) No person who is an applicant or proposer to be a party to a city contract, or who is a party
to a city contract, as defined in section 2-403, other affected party, or related persons, shall
make a contribution to an individual holding city elective office where the city contract has a
total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a
combination or series of such contracts or agreements having a value of thirty thousand
dollars ($30,000.00) or more.
(b) No member of the council, nor the city clerk or city treasurer shall receive a contribution
from a person who is a parry to a city contract, or an applicant or proposer to be a parry to
a city contract, as defined in section 2-403, or related persons, where the city contract has
a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a
combination or series of such contracts, having a value of thirty thousand dollars
($30,000.00) or more.
(c) No person acting as a subcontractor under a subcontract through a city contract, as
defined in section 2-403, or related persons, shall make a contribution to a council member
where an individual subcontract has a total anticipated or actual value of fifteen thousand
dollars ($15,000.00) or more, or a combination or series of such individual subcontracts
with the same subcontractor, for the same or different projects with the aggregate value of
fifteen thousand dollars ($15,000.00) or more.
(d) No member of the council shall receive a contribution from a person who is party to a
subcontract under a city contract, as defined in section 2-403, or related persons, where
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the subcontract has a total anticipated or actual value of fifteen thousand dollars
($15,000.00) or more, or a combination or series of such subcontracts having a value of
fifteen thousand dollars ($15,000.00) or more.
(e) No applicant seeking entitlement, contractor of an applicant seeking entitlement or a
subcontractor of an applicant seeking entitlement, or related persons, shall make a
contribution to a council member while such application is pending before the council,
successor agency, CDC, or housing authority and for a period of twelve (12) months after
the last and final action on that entitlement by the council, successor agency, CDC or
housing authority.
Sec. 2-4045.2. Posting of list of contractors, subcontractors, vendors and applicants for
entitlements.
City staff shall prepare a list or lists of: Applicants or proposers for city contracts in the
amount of thirty thousand dollars ($30,000.00) or more; parties to city contracts in the amount of
thirty thousand dollars ($30,000.00) or more; subcontractors under city contracts with
anticipated or actual value of fifteen thousand dollars ($15,000.00) or more, individually or in the
aggregate; applicants seeking entitlements; contractors of applicants seeking entitlements; and,
subcontractors of applicants seeking entitlements, while such application is pending before the
council or other legislative body of the city and for twelve (12) months thereafter. Such list or
lists shall be posted on the city's website and made available to all elected officials and
candidates.
6r-T4 AMIYI :MI u
a) Any person who believes that a violation of this article has occurred may file a complaint
with the city attorney. The city attorney shall investigate and shall have investigative
powers as are necessary for the performance of his or her duties under this article.
b) The city attorney, or any registered voter of the city, may bring a civil action to enioin
violations of or compel compliance with the provisions of this article.
Sec. 2-405.1 Penalties.
each violation, or three (3) times the amount not reported, or the amount received in
excessf the amount allowable pursuant to this article. whichever is greater.
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