REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution Establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limit for the November 3, 2020 Municipal Election [Council Pillar: Enhance Community Engagement and Transparency]
Report
BACKGROUND
The City of Santa Clara Political Campaign Finance Reform Act (the "Act"), codified in Chapter 2.130 of the Santa Clara City Code, established an initial limit for a candidate's voluntary campaign expenditures at $25,000 for the November 2000 City election. The Act contains a cost of living adjustment using the index from the U.S. Department of Labor, Bureau of Consumers (CPI-U), San Francisco, Oakland, San Jose subgroup - all items ("CPI"), to be adjusted on an annual basis. The expenditure limit was last adjusted to $45,590 by the City Council on October 8, 2019.
The Act also contains individual campaign contribution limits that were originally established at $500 for candidates who accepted the voluntary expenditure limit and $250 for those who did not. In 2014, the Act was amended to require that the applicable contribution limits also be adjusted by the CPI, rounded to the nearest ten-dollar figure. In 2019, the applicable contributions limits were adjusted to $620 and $300, respectively.
The Act was amended in May 2018 to provide maximum transparency to the voters of the City of Santa Clara about who is spending money on local campaigns and to create specific disclosure requirements for contributions to organizations that have historically refused to disclose contributions (“dark money”). The Act now includes mandatory disclosure of all contributions of one hundred dollars ($100.00) or more to any organization that makes expenditures that affect or are intended to affect a local Santa Clara election to City office or for or against a local Santa Clara ballot measure. Contributions must be reported in the same manner as campaign contributions are required to be reported under SCCC 2.130.280 <http://www.codepublishing.com/CA/SantaClara/>.
DISCUSSION
Pursuant to City Code Section 2.130.050, the Council must adjust the contribution limits by Resolution. Accordingly, the attached Resolution has been prepared accounting for the cost of living adjustment applicable to the expenditure limit for the upcoming 2020 November General Municipal Election, which shall be set at $46,420, a 1.42% increase since October 2019 applying the annual CPI adjustment based on the month of April 2020. Similarly, the same CPI adjustments were calculated for the individual campaign contributions. For candidates who accept the voluntary expenditure limit, the limit on individual campaign contributions shall be $630 and for candidates who do not accept the voluntary expenditure limit, the limit on individual campaign contributions shall be $310.
Pursuant to City Code section 2.130.050, the last day a campaign contribution may be deposited shall be eleven (11) calendar days before the election date (i.e., a Tuesday, November 3rd election date would make Friday, October 23rd the last day to deposit a contribution) and the last day a payment for campaign expenses may be made shall be the last day of the month following the election month (i.e., a November election would require that all campaign expenses be paid by December 31st - the last day of the month following the election month).
The City Council made a referral to staff to review the expenditure limits to designate appropriately the expenditure limit for Districts vs. At-Large seats for the 2020 election.
Given that the City will be electing Councilmembers other than the Mayor by District in the November 2020 election, candidates running for a City Council position for their district would not need the same resources comparatively had they been running for the position at-large. Following the same model used in the formulation of the Act when it was established in 2000, the intent is to allow a candidate who has signed up for the voluntary expenditure limit the ability to run an “effective campaign”. Considering the costs of an effective campaign (2 mailers, walk pieces, lawn signs, print and online advertisements, event/food expenses) covering each district (average of 9,117 registered voters), a reasonable campaign can expect to cost no more than $25,000 using the following estimated breakdown:
• 2 mailers, each covering every registered voter, at cost of $1 per mailer: $18,234
• 2,000 walk pieces, at a cost of $1 per walk piece: $2,000
• 100 lawn signs, at a cost of $10 per lawn sign: $1,000
• Other expenses (advertisements, event/food costs, etc): $3,000
• Total: $24,234
If the City Council desires to set a separate voluntary expenditure limit (to be adjusted by CPI) for Districts, staff recommends that the limit be set no more than $25,000. Campaigns have historically spent less than this; in the 2018 general election, the City held its first district-based elections, and of the 5 City Council campaigns vying for a district-based council seat all spent under $25,000.
Option 1: City Council sets the voluntary expenditure limit to $46,420 based on CPI adjustments. City Council sets the individual campaign contributions based on CPI adjustments as:
• $630 for candidates who accept the voluntary expenditure limit
• $310 for candidates who do not accept the voluntary expenditure limit
Option 2: City Council sets the voluntary expenditure limit to $46,420 based on CPI adjustments for city-wide contests. City Council sets a separate voluntary expenditure limit for district-based contests not to exceed $25,000 (with future adjustments based on CPI).
City Council sets the individual campaign contributions based on CPI adjustments as:
• $630 for candidates who accept the voluntary expenditure limit
• $310 for candidates who do not accept the voluntary expenditure limit
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
There is no cost associated with this action other than staff time and expense.
COORDINATION
This report was prepared in coordination with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
ALTERNATIVES
1. Adopt a Resolution establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limit for the November 3, 2020 General Municipal Election with:
Option (1) City Council sets the voluntary expenditure limit to $46,420 based on CPI adjustments. City Council sets the individual campaign contributions based on CPI adjustments as:
• $630 for candidates who accept the voluntary expenditure limit
• $310 for candidates who do not accept the voluntary expenditure limit
2. Adopt a Resolution establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limit for the November 3, 2020 General Municipal Election with:
Option (2) City Council sets the voluntary expenditure limit to $46,420 based on CPI adjustments for city-wide contests. City Council sets a separate voluntary expenditure limit for district-based contests not to exceed $25,000 (with future adjustments based on CPI). City Council sets the individual campaign contributions based on CPI adjustments as:
• $630 for candidates who accept the voluntary expenditure limit
• $310 for candidates who do not accept the voluntary expenditure limit
RECOMMENDATION
Recommendation
Adopt a Resolution establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limit for the November 3, 2020 General Municipal Election with either Option 1 or Option 2.
Staff
Reviewed by Hosam Haggag, City Clerk
ATTACHMENTS
1. Resolution