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HomeMy WebLinkAbout _ 4.1(b)--Adopt Resolution creating Electronic Signature Council Policy CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Adopt Resolution approving City Council Policy No. 222 – Electronic Signature Policy to permit the use of electronic signatures, in lieu of manual or “wet” signatures in designated City of Redding-related business transactions and contracts. Fiscal Impact There is no fiscal impact related to approving an Electronic Signature City Council (Council) Policy. A vendor shall be selected upon Council approval of the Policy. The first-year cost associated with an Electronic Signature Policy related to City of Redding (City)-designated contracts is estimated between $6,000 and $8,000, which would include online support and assistance. Since Fiscal Year 2020-21, the City has processed an average of 459 contracts and 298 amendments annually for a total of 757. If approved, the City of Redding’s (City) Information Technology Department will review annual usage and allocate the costs to each of the City Departments. Alternative Action The Council could choose not to adopt the attached resolution approving the Electronic Signature Policy and provide alternative direction to staff. Background/Analysis The City recognizes that advances in technology can assist in increasing its efficiency, reduction of waste, and ability to provide greater access to public services. Technology advancements have also increased electronic document procedures and management security. This Council Policy will establish the requirements for using electronic signatures in lieu of manual or "wet" signatures and guidelines for acceptable technologies, procedures, and documents for using electronic signatures in City-related business. MEETING DATE: November 7, 2023 ITEM NO. 4.1(b) FROM: ***APPROVED BY*** btippin@cityofredding.org btippin@cityofredding.org SUBJECT: 4.1(b)--Consider adopting City of Redding Council Policy No. 222 - Electronic Signature Policy Barry Tippin, City Manager Report to Redding City Council November 1, 2023 Re: 4.1(b)--Adopt Resolution creating Electronic Signature Council Policy Page 2 If approved, Council Policy No. 222 - Electronic Signature will be incorporated into the City Council Policy Manual. The Resolution has been reviewed and approved by the City Attorney. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” Attachments ^Resolution ^City Council Electronic Signature Policy No. 222 RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING CITY COUNCIL POLICY NO. 222 – ELECTRONIC SIGNATURE POLICY WHEREAS, the Redding City Council recognizes the advances in technology and security related to an Electronic Signature Policy approved by Council; and WHEREAS, the above Policy is appropriate to better comply with current practices and laws; and WHEREAS, the implementation of the Electronic Signature Policy can be administered through the Information Technology Department as outlined in the newly proposed City Council Policy No. 222; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that City Council Policy No. 222 – Electronic Signature Policy is hereby adopted in the form attached hereto and made a part of by reference. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7th day of November, 2023, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: _________________________________ MICHAEL DACQUISTO, Mayor ATTEST: FORM APPROVED: _______________________________ __________________________________ SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT Electronic Signature Policy RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE 2023-XXX 222 1 BACKGROUND The City of Redding recognizes that advances in technology can assist the City in increasing its efficiency, reduction of waste, and ability to provide greater access to public services. Technology advancements have also increased electronic document procedures and management security. This Policy establishes the requirements for using electronic signatures in lieu of manual or "wet" signatures and guidelines for acceptable technologies, procedures, and documents for using electronic signatures in City-related business. This Policy shall be used to increase productivity and ensure convenient and timely access to City information by using electronic signature technology to collect and preserve documents quickly, securely, and efficiently. Affixing an electronic signature to a document in a manner consistent with this Policy shall satisfy the City's requirement for signing a document. Although the use of electronic signatures is encouraged when permitted, this Policy does not mandate the use of electronic signatures, nor should the City require that any third party signing a document use electronic signatures. PURPOSE The purpose of this Electronic Signature Policy ("Policy") is intended to broadly permit the use of electronic signatures, in lieu of manual or “wet” signatures, in City-related business, since: • The use of electronic signature technology will allow the City to collect and preserve signatures on documents quickly, securely, and efficiently. • The City has a vital interest in reducing paper waste, increasing the efficient use of public resources, and ensuring the security and authenticity of electronic records, including electronic signatures. • The City seeks to mitigate the risks associated with conducting transactions, transmitting information, and maintaining public records that use electronic signatures. Legal Authority Under California Law (Civ. Code section 1633.1 et seq.), electronic signatures have the same legal effect as wet or manual signatures. A digital signature is a form of electronic signature. Government Code Section 16.5 specifically permits cities to use digital signatures. Government Code section 16.5 also provides that, for a digital signature to have the same force and effect as a wet or manual signature, it must be established that the digital signature is: CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT Electronic Signature Policy RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE 2023-XXX 222 2 1. Unique to the person using it. 2. Capable of verification. 3. Under the sole control of the person using it. 4. Linked to data in such a manner that if the data is changed, the digital signature is invalidated. 5. Conforms to regulations adopted by the Secretary of State. POLICY This Policy applies to documents requiring a signature of any person where the signature is intended to show authorship, approval, authorization, or certification, as permitted by law. This Policy shall apply to all employees of the City and governs all uses of electronic signatures used to conduct the City’s official business. Such business may include, but not be limited to, electronic communications, transactions, contracts, permits, and other official purposes, internal and external to the City. All use of digital signatures by the City shall be in accordance with this Policy, and may be amended from time to time by the City Manager. Any use of electronic signatures, including digital signatures, by the City that is not in accordance with this Policy, or any unauthorized signing of any record or document, shall render such form or document invalid as not fully and properly executed by the City. It is the policy of the City to encourage, but not require, the use of digital signatures only in all internal and external activities, documents, and transactions where it is permitted by law, and where existing technology permits. Only digital signatures meeting the requirement of Government Code Section 16.5 and 2 California Code of Regulations Section 22000 et seq. are permitted. This means that the digital signature must be unique to the person authorizing it and must require the use of an individual username and password in order to execute. No other form of electronic signature may be accepted. To that end, the following forms of electronic signature are specifically prohibited: • No permit, agreement, or contract may be made by exchange of email, text, or other electronic means of communication. • Copies of manual signatures are not acceptable. • Proxy signatures shall not be accepted. This means that no City employee will share a username or password signature with another person, nor shall a City employee accept a digital signature which he/she knows, or has reason to believe, was not personally executed by the counter-party. No party that does business with the City shall be required to use a digital signature. CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT Electronic Signature Policy RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE 2023-XXX 222 3 Where a transaction requires the signature of both parties to the transaction, the use of a digital signature must be agreed upon by both parties to the transaction. If the parties have agreed to conduct a transaction by digital signature, the parties are required to utilize all applicable security processes for authentication. When all parties electronically sign a document, the City will provide a copy of the electronically signed document to the other parties in an electronic format that is capable of being retained and printed by the other parties. The Chief Information Officer shall be responsible for determining acceptable technologies and digital signature certification providers consistent with current legal requirements and industry best practices to ensure the security and integrity of the data and the digital signature. The Chief Information Officer shall not accept any technology which is not compliant with the requirements set forth in Civil Code Section 16.5 and 2 California Code of Regulations 22000 et seq. The final approval of any electronic signature technologies and vendors will be by the Chief Information Officer, after consulting with the City Attorney. In determining whether to approve electronic signature technologies offered by vendors, consideration will be given to the systems and procedures associated with using that electronic signature, industry best practices, and whether using the electronic signature is at least as reliable as the existing method to ensure the security and integrity of the data and the signature. The Chief Information Officer shall conduct periodic reviews for the appropriateness and continued applicability of electronic signature technologies and vendors. If it is determined that an approved electronic signature technology or vendor is, in the discretion of the Chief Information Officer, no longer trustworthy, the Chief Information Officer may revoke the approval of the electronic signature method. In such a case, the City Clerk shall consult with the City Attorney and, where deemed necessary, take steps to see that any records signed with the revoked electronic signature method are signed again either with a written signature or with an approved electronic signature method. Manual, or “wet” signatures are required for the following transactions: • Documents or transactions that require notarization or are to be recorded with the County Recorder • Documents required for real property transactions • Documents that affect title to real property • Bonds (unless express authority is granted by the City Attorney’s Office) • Promissory notes • Documents or transactions that are not signed using approved electronic/digital signatures technologies and/or vendors CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT Electronic Signature Policy RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE 2023-XXX 222 4 Notwithstanding the requirements set forth above relating to the use of a digital signature for transactions between the City of Redding and third persons, any form of electronic signature, as defined by Civil Code Section 1633.2, is acceptable for internal use. Examples include memos, reports, request forms, and other documents used to conduct business within and between City departments and staff. The use of an electronic signature is acceptable for Internal Documents, provided that appropriate safeguards are observed, as determined by the City Manager or designee. Except as may otherwise be authorized by the City Attorney, for all transactions in which a third party will be using a digital signature, excluding any transaction with a state or federal agency, the following language shall be incorporated into the terms and conditions of the transaction and shall be given a section number as appropriate within the contract. • Electronic Signatures. • Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign a document or record created, generated, sent, communicated, received, or stored by electronic means. • Except as otherwise provided in the Agreement or as otherwise required by law, the Parties hereby consent to transact business using electronic communications, to receive notices and disclosures electronically, and to utilize electronic signatures as the alternative to paper documents and manual signatures. • The Parties agree that the electronic signatures, whether digital or encrypted, by their respective signatories are intended to authenticate such signatories and to give rise to a valid, enforceable, and fully effective agreement and have the same force and effect as manual signatures. • The Parties represent the following: ▪ Their respective signatories have the authority to sign this Agreement, and no certification authority or other third-party verification is necessary to validate their electronic signatures, and the lack of such certification or third-party verification will not in any way affect the enforceability of the electronic signatures or any resulting agreement between the Parties. ▪ An electronic signature of their respective signatory is unique to the person using it, capable of verification, under the sole control of the person using it, and is linked to data in such a manner that if the data is changed, the electronic signature is invalidated, and conforms to regulations adopted by the California Secretary of State as may be amended from time to time. CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT Electronic Signature Policy RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE 2023-XXX 222 5 • Notwithstanding any other provision of this Agreement, Contractor agrees to indemnify and hold harmless the City and its officers, employees, and agents from and against any and all demands, liabilities, expenses, losses, causes of action, claims, obligations, judgments, or damages, including reasonable attorneys’ fees and costs of litigation, arising from the falsity or breach of any Contractor’s representation, whether or not the falsity or breach is caused by the Contractor’s active or passive negligence, contained in this section of the Agreement, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the counter-party does not accept the language set forth above as a term and condition of the transaction, the parties may transact business only by use of a manual, or “wet”, signature.