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14. Campaign voluntary capOFFICE OF T'HE C17Y CLERK CITY HALL 10300 TORRE AVE~IUE - CUPERTINO, CA 950'14-3255 C O P E RT I N O TELEPHONE: (408) '777-3223 -FAX: (408) 777-3366 SUMMARY Agenda Item No. ~ ~ Meeting Date: March 3, 2009 SUBJECT AND ISSUE Consider renewing the voluntary -cap of $26,:500 for campaign expenditures for the 2009 City Council election. BACKGROUND In 1997 the City Council fast set a voluntary campaign expenditure limit of $15,000 which has been increased periodically. (See chart next page). If the limit is adopted for the 2009 election, it would be voluntary and would have no force of law. Candidates may indicate in writing to abide by the limitation. The sample voter's ballot then shows a black diamond by the candidate's name that iridicates the candidate has agreed to the expenditure limit. Since Nov. 2007, postage costs have increased by one cent, and another two cent increase is expected in 2009. RECOMMENDATION: 1. Adopt the attached resolution setting a volwitary expenditure cap of $26,500 for the election of 2009; or 2. Amend the resolution setting a diiTerent expenditure cap; or 3. Take no action, which means there will be: no expenditure limit, voluntary or otherwise, for Council candidates. Submitted by: Kimberly Smith City Clerk Ap~~roved for submission: Da.~id Knapp Cit:~ Manager is-~ March 3, 2008 Page 2 ELECTION YEAR VOLUNTARY EXPENDITURE LINIIT NOTES 1997 $15,000 1999 $20,000 Rancho Rinconada Annexation 2001 $20,000 2003 $20,000 2005 $26,000 Postage increases Garden Gate and Monta Vista Annexations 2007 $26,500 Posta a increases 2008 S ial Election $26,500 14-2 RESOLUTION NO. 09-036 ®~ ~ " A RESOLUTION OF TIC CUPERTINO CITY COUNCIL ADOPTING A VOLUNTARY E:~PENDITURE LINIIT FOR THE NOVEI~~ER 3, :2009 ELECTION WHEREAS, the City Council adopted Resolution No. 07-121 which established a voluntary expenditure limit of $26,500 for the November 6, 2007 election and Resolution No. 07-I67 which established a voluntary expenditure limit of $26,500 for the February S, 2008 special election. WHEREAS, on November 3, 2009 a General Municipal Election will be held to fill vacant seats, and the City Council wishes to apply the same voluntary expenditure limit to that election. NOW, THEREFORE, BE TI' RESOLVED: 1) Candidates for City Council are requested to limit their campaign expenditures to $26,500 for the City Council. election of 2009. 2) Any non-monetary contribution is deemed to be a campaign expenditure made by the receiving committee on the date of receipt, and it counts against the voluntary expenditure limits established by this resolution if an expenditure for equivalent goods or services would have been a campaign expenditure described in Attachment A_ The amount of the expenditure shaII be the fair market value of the contribution on the date of receipt. 3) The voluntary expenditure limit does not establish a recommended voluntary campaign expenditure ceiling within the meaning of Government Code section 85400 et seq. It is the intent of the City Council, in adopting this resolution, not to trigger the enhanced .campaign contribution limits contained in Government Code section 85402(a) et seq. 4) In the event that any candidate wishes to abide by the campaign contribution limit requested by the City Council, he or she may file with the City C1erlc a written notice of his or her intent to limit his or her campaign expenditures to $26,500 for the 2009 election, and such intent will be indicated in the official voter's pamphlet. 5. The cost of printing and translating Candidate Statements shall not be counted against the voluntary expenditure cap of $26,500. 6. The provisions of this resolution have no force of law. 14-3 Resolution No_ 09-036 Page 2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of March, 2009, by the following vote: Vote Members of the City Council AYES : NOES: ABSENT`: ABSTAIN: AT'IBST: City Clerk APPROVED: Mayor, City of Cupertino ~a-a Resolution No. 09-036 Attachment A Page 3 1. Expenditures related to mailing or distribu-lion of campaign literature, signs, buttons, bumper stickers and similar items, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date. Z. Expenditures related to publications in broadcast, print or electronic media shall be allocated to the next election following the date(s) specified in the contract for broadcast, publication, or dissemination or, if the election is held on the date specified for publication, broadcast, or dissemination, to the election held on that date. 3. Expenditures related to telephone banks, including costs of design and operation, costs of installing or renting telephone lines and equipment, toll chazges, personnel costs, rental of office space, and associated consultants' fees, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date. 4. Expenditures on professional services, including fees and costs of campaign consultants and pollsters, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditure was made, to the election held on that date. In the event that a contract for professional services allocates specific fees and costs to particu]az elections, the terms of the contract will govern allocation of expenditures to each election. If a contract provides for a bonus payment should the candidate win a particular elextion, the bonus payment is an expense of the election whose result triggers the payment obligation. 5. Overhead expenditures, including expenditures related to the lease of office space, payments for utilities, rental or purchase of office ey~uipment and furnishings, miscellaneous supplies, costs of internal copying and printing, monthly telephone charges, personnel costs, and candidate or staff travel expenses, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date. 6. Expenditures related to campaign fundraising shall be allocated to the election for which the funds were raised. If fundraising expenditures cannot be assigned in this manner to a particular election, fundraising expenditures shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expense was incurred, to the election held on that date. 7. Unless there is a clear indication to the contrary, campaign expenditures not described. in subdivisions (a)(I) through (a)(6) shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditure was made, to the election held on that date. Refunds of any expenditure on goods or services not provided to or used by the campaign shall be credited to the election for which the expenditure would otherwise have been allocated. 8. 'The candidate shall maintain records establishing that his or her allocation of campaign expenditures was consistent with this resohition. 14-5