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HomeMy WebLinkAbout15 LEGISLATIVE UPDATEMEETING DATE: TO: FROM: SUBJECT: SUMMARY: Agenda Item 15 Reviewed: AGENDA REPORT City Manager Finance Director �A JUNE 19, 2018 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL JEFFREY C. PARKER, CITY MANAGER LEGISLATIVE UPDATE Staff has prepared an update of proposed key California legislative items for 2018. RECOMMENDATION: At the direction of the City Council. NEW ITEMS (SINCE LAST UPDATE) June 1 Last day for each house to pass bills introduced in the house of origin June 15 Budget Bill must be passed by Midnight June 28 Last day for a legislative measure to quality for Nov. 6 General Election California FY 2018-19 Budget "May Revise" Known as the May Revise, the proposal includes $137.6 billion in General Fund spending and a total spending amount of $199.3 billion. Pointing to his usual charts showing California's boom and bust cycles, dependence on capital gains taxes and spending history, the Governor repeated his fiscal prudence mantra while warning of the inevitability of the next recession. FY 2018-19 marks the Governor's 16th and final budget and he expressed a desire to leave the state's finances in order as he completes his fourth term in office. With revenues expected to come in higher than what the Governor projected in January, he continues to prioritize building reserves and one-time spending. He proposes to fully fund the Rainy Day reserve at $13.8 billion by the end of FY 2018-19, with an additional $3.2 billion into the state's traditional budget reserve. The May Revise allocates $4 billion in new one-time spending to address some of California's most urgent needs. In response to requests for additional funding to address homelessness, led by mayors of California's 11 largest cities and supported by the League, the Governor proposes an Legislative Update June 19, 2018 Page 2 of 12 additional $359 million (recently revised to $500 million) in spending to address homelessness. He characterized this as a "bridge" to provide upfront funding before the state has revenues derived from a recent tax on various real estate transactions through last year's SB 2 (Atkins) and proceeds from a $4 billion housing bond pending on the November ballot enacted by SB 3 (Beall). The Governor emphasized in a May press conference that addressing homelessness is more than sending extra money to cities and that California needs a framework to help the homeless get needed mental health and addiction treatment. While the May Revise contains less funding than the proposals pending in the Legislature, it is encouraging to see the Governor willing to negotiate with the Legislature and local governments on this important issue. The Governor is also proposing to end the legal uncertainty associated with the No Place Like Home program by asking voters to approve an amendment to Proposition 63, the Mental Health Services Act. The proposed ballot measure would ask voters to validate that funding from Prop. 63 can be used to fund a $2 billion bond for permanent supportive housing for homeless individuals or those at risk of becoming homeless, who need mental health services. The Governor views that this is a more expedited path than the courts. The other one-time funding allocations in the May Revise are $2 billion for deferred maintenance on state infrastructure including courts, universities, state facilities and flood control; and $312 million for mental health services. In addition to homelessness, the League requested one-time funding in three areas: $100 million for disaster preparedness, prepositioning and mutual aid; $100 million for organic waste diversion; and $100 million for the Transformative Climate Communities program. The May Revise does not include additional funding in these three areas; however, continued discussions by the Legislature on these proposals are expected. During the press conference, the Governor expressed concern about the pending ballot measure to take away SB 1 transportation funds and alluded to another proposal anticipated to be on the ballot that would create additional uncertainty for local governments (presumably the American Beverage Association. and California Business Roundtable -sponsored measure that would significantly limit local tax and fee authority). When asked about pensions, the Governor said, "The story is not over." He stressed that there will be a number of developments in the next few years, including court decisions, that could make significant changes to the pension system. The Governor, who signed the Public Employees' Pension Reform Act in 2012, noted that these reforms would have a greater impact each and every year as the workforce brings on new employees. The May Revise summary references the pressure from pensions on local governments. However, in the Governor's remarks, he warned that the state is not in a position to bail out cities and counties on pension challenges. Legislative Update June 19, 2018 Page 3 of 12 While housing was not discussed during the press conference, the budget document reveals favorable news on housing starts. Annual residential building permits are projected to increase to 174,000 by 2021. This is a dramatic increase from prior -recession levels and brings production levels near the state's identified annual need of 180,000 units. Next Steps: Awaiting vote in Legislature (By Midnight June 15) More information available at: http://www.cacities.org/Top/News/News-Articles/2018/June/Legislature-s-Budget- Agreement-Includes-$500-Milli AB 448 (Daly) I Joint powers authorities: Orange County Housing Trust ACC -OC has been working in partnership with the County of Orange and others to develop an Orange County Housing Trust (OCHT). In May, Assembly members Daly and Quirk -Silva introduced AB 448. This legislation will create a JPA that acts as a financial and funding vehicle for homelessness solutions — including but not limited to the planning and construction of permanent supportive housing, affordable housing/workforce housing, crisis stabilization units, mental and physical health facilities, rapid re -housing and emergency beds. The OCHT will have the ability to receive both public and private funding, bond against those funds, utilize tax credits, and service debt. It would not act as a regulator of land use, an owner or operator of housing units, or as a substitute for local control. League of California Cities — WATCH Association of California Cities Orange County (SPONSORED) - SUPPORT Location: In Senate Policy Committee UPDATES OF PRIOR ITEMS (LAST UPDATE MAY 1, 2018) AB 1912 (Rodriguez) I Public Employees' Retirement: Joint Powers Agreements Local governments have a long history of addressing service delivery challenges with creativity, self-reliance and innovation. Unique local challenges and limited resources continue to fuel innovative efforts to obtain expertise and provide high quality services. Joint Powers Authorities (JPAs) play a vital role in promoting regional and, in some cases, statewide collaboration in addressing public needs that cannot be effectively achieved by each local government agency acting on its own. These activities include regional public improvements, local and statewide infrastructure for water and roadways, emergency communications systems, law enforcement, fire protection, emergency medical services, and public financing, among others. AB 1912 places substantial burdens and new unworkable requirements on local and state Legislative Update June 19, 2018 Page 4of12 agencies. It applies retroactive as well as prospective joint and several liabilities for all retirement related obligations to any current or former member of a JPA since inception. Such obligations include active employee normal pension costs, retiree unfunded accrued liabilities (UAL), as well as both active and retiree healthcare and other post -employment retirement benefits (OPEBs). These costs cannot be overstated. Additionally, AB 1912 would mandate that a public retirement system, like California Public Retirement System (CalPERS), 37 Act System, or a city -based retirement systems file suit against all local .or state agencies that have ever been a member of a terminated JPA for all retirement related obligations. It also prohibits any retirement system from approving a new JPA without a contract containing express joint and several liability provisions. League of California Cities — OPPOSE (HOT) Location: In Senate Policy Committee SB 623 (Monning) I Water quality: Safe and Affordable Drinking Water Fund Would establish the Safe and Affordable Drinking Water Fund in the State Treasury and would provide that moneys in the fund are continuously appropriated to the State Water Resources Control Board. The bill would require the board to administer the fund to secure access to safe drinking water for all Californians, while also ensuring the long- term sustainability of drinking water service and infrastructure. The bill would authorize the state board to provide for the deposit into the fund of federal contributions, voluntary contributions, gifts, grants, bequests, and settlements from parties responsible for contamination of drinking water supplies. League of California Cities — OPPOSE UNLESS AMENDED Association of California Cities Orange County — OPPOSE Location: In Assembly Policy Committee AB 3160 (Grayson) I Federal public lands conveyances: Defense BRAC Pursuant to last year adoption of SB 50, existing law generally establishes a policy of the state to discourage conveyances of federal public lands in California from the federal government. Existing law specifies that these conveyances are void ab initio unless the State Lands Commission was provided with the right of first refusal or the right to arrange for the transfer of the federal public land to another entity. Existing law exempts the sale of real property acquired by a federal agency through a foreclosure proceeding from these provisions. This bill would additionally exempt from these provisions the sale, lease of surplus, or excess real property that is authorized for disposal or realignment by the federal government during the base realignment and closure process, as specified. League of California Cities — WATCH Location: In Senate Policy Committee Legislative Update June 19, 2018 Page 5 of 12 PLANNING AND ZONING SB 828 (Wiener) I Land Use: Housing Element (RHNA) The Planning and Zoning Law requires a city or county to adopt a comprehensive, long- term general plan for the physical development of the city or county and of any land outside its boundaries that bears relation to its planning. Mainly contains "intent language"; requires a local jurisdiction to plan accommodate 200% of RHNA, and establish a methodology for the comprehensive assessment for unmet housing need. League of California Cities — OPPOSE UNLESS AMEND Association of California Cities Orange County - WATCH Location: In Assembly Policy Committee. SB 1340/1341 (Glazer) I CEQA: Housing Projects & Judicial Review Two bills that would streamline the California Environmental Quality Act (CEQA) as it relates to litigation and judicial review pertaining to housing projects. More information to follow. League of California Cities — WATCH Location: Failed Deadline - DEAD AB 1771 (Bloom) I Regional Housing Needs Assessment Spot bill that would enact legislation that would make changes to the process for distributing regional housing needs (RHNA) to various jurisdictions to ensure fairness and the achievement of stated goals regarding housing. League of California Cities — WATCH Association of California Cities Orange County - WATCH Location: In Senate Policy Committee AB 1759 (McCarty) I General plans: Housing element: Production report: Withholding of transportation funds Would require planning agencies to provide an annual report to the State on the status of the general plan and progress in meeting the community's share of regional housing needs. Essentially, if jurisdictions due not meet their housing goals, those jurisdictions would be disqualified from receiving transportation (SB 1) funding. League of California Cities — WATCH Association of California Cities Orange County - WATCH Location: In Senate Policy Committee Legislative Update June 19, 2018 Page 6 of 12 AB 2631 (T. Allen) - Planning and zoning: Affordable housing: Streamlined approval At the request of a developer, requires cities to approve, in a ministerial manner, housing projects that: contain fewer than 25 units, the development provides housing to low and moderate income families, and the development is in a public transit corridor. Would limit design review, have no parking requirements, and prohibit inclusionary requirements. League of California Cities — WATCH Location: Failed Deadline - DEAD AB 2856 (Melendez) I California Environmental Quality Act: Housing Development CEQA establishes a procedure by which a person may seek judicial review of the decision of the lead agency made pursuant to CEQA. This bill would, except as provided, prohibit the court, in an action or proceeding brought alleging a violation of CEQA, from staying or enjoining the siting, construction, or operation of housing development projects, as defined. League of California Cities — WATCH Location: Failed Passage - DEAD AB 3147 (Caballero) I Fee Mitigation Act: Housing Developments Prohibits a housing development project from being subject to a fee, charge, dedication, reservation, or other exaction that is more than that in effect at the time that the application for the housing development project is determined to be complete. League of California Cities — OPPOSE Location: Failed Deadline — DEAD ACCESSORY DWELLING UNITS SB 831 (Wieckowski) - Land Use: Accessory Dwelling Units This bill would delete the requirement that the area be zoned to allow single-family or multifamily use. Local agency must act within 120 days of submitted application or it is deemed approved. Would not require a minimum lot size unless findings related to public safety impacts are made. No fees of any kind would be allowed to be collected or levied. League of California Cities — OPPOSE Association of California Cities Orange County — OPPOSE UNLESS AMENDED Location: In Assembly House Policy Committee AB 2071 (Bloom) I Accessory dwelling units: Improvements: Liability Limits a public entities liability with regard to an owner attempting to bring the accessory dwelling unit into compliance with applicable local agency rules, regulations, or ordinances. Legislative Update June 19, 2018 Page 7of12 League of California Cities — WATCH Location: In Senate Policy Committee AB 2939 (Ting) I Accessory dwelling units Requires the local agency to ministerial approve an application for a building permit to create within a multifamily zone at least one accessory dwelling unit within an existing multifamily structure with at least five residential units. League of California Cities — WATCH Location: Failed Deadline - DEAD SB 1226 (Bates) I Building standards: Accessory dwelling units Allows a local ordinance to authorize, when a record of the issuance of a building permit for an accessory dwelling unit does not exist, an enforcement official to make a determination of when the accessory dwelling unit was constructed and apply the State Housing Law, the building standards published in the California Building Standards Code, and other specified rules and regulations in effect when the accessory dwelling unit was determined to be constructed in order to issue a building permit for the accessory dwelling unit. League of California Cities — WATCH Location: In Assembly Policy Committee DENSITY BONUS SB 893 (R. Nguyen) I Planning and zoning: Density bonus Deletes existing law that restricts parking requirements for developments that include the maximum percentage of low-income or very low-income units located within Y2 mile of a major transit stop. League of California Cities — WATCH Location: Failed Deadline - DEAD SB 1227 (Skinner) I Density Bonuses Requires a density bonus to be provided if the development includes at least 20% of the total rental beds for students enrolled at an institution of higher education accredited by the Western Association of Schools and Colleges. Requires that these units be subject to a recorded affordability restriction of 55 years and be provided at the same affordability level as very low income units; sets the density bonus at 35% of the number of these units. League of California Cities — WATCH Location: In Assembly Policy Committee Legislative Update June 19, 2018 Page 8of12 AB 2372 (Gloria) I Planning and zoning: Density bonus: FAR bonus Authorizes a city council or county board of supervisors to establish a procedure by ordinance to grant a developer of an eligible housing development a floor area ratio (FAR) bonus in lieu of a density bonus awarded based on dwelling units per acre. Restricted to multifamily developments. League of California Cities WATCH Location: In Senate Policy Committee AB 2753 (Friedman) I Density bonuses: Density bonus application Requires that if a city or county does not determine whether a density bonus application is complete within 30 calendar days after it was submitted, or within 10 days in the case of a resubmitted application, then that application is deemed approved. City or county must act with 60 days of determining application is complete, otherwise, bonus is approved. League of California Cities — WATCH Location: In Senate Policy Committee AB 2797 (Bloom) I Planning and zoning: Density bonuses Prohibits any density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios from being a basis for finding a project inconsistent with "highly scenic areas" (Public Resources Code 30251). League of California Cities — WATCH Location: In Senate Policy Committee PARKING AND AUTONOMOUS VEHICLES AB 87 (Ting) I Autonomous Vehicles Requires vehicle manufacturers provide written notification to local authorities if an autonomous vehicle is being operated in their jurisdiction. The manufacturer must provide law enforcement with an interaction plan, which instructs law enforcement on how to interact with autonomous vehicles. League of California Cities — WATCH Location: In Senate Policy Committee AB 2263 (Friedman) I State historical buildings: Parking Spaces For the conversion of a historical structure for residential or mixed-use purposes, prohibits a local ordinance from imposing parking standards that exceed the parking standards that applied at the time the historical building was originally constructed. League of California Cities — WATCH Location: In Senate House Policy Committee Legislative Update June 19, 2018 Page 9of12 AB 3000 (Friedman) I Land use: New housing developments: Parking requirements Prohibits a city, county, or city and county from imposing minimum parking requirements for new housing developments where off-street parking is permitted. League of California Cities — WATCH Location: In Fiscal Committee 1St House. Held under Submission. HOMELESSNESS AB 2161 (Chiu) I Housing: Homeless integrated data warehouse Directs the Department of Housing and Community Development to create a state homeless integrated data warehouse, in coordination with the Homeless Coordinating and Financing Council, to develop a composite portrayal of the homeless population in the state and the services provided to this population or to those at risk of becoming homeless. Data includes the number of individuals and families experiencing homelessness, their access to benefits, and the stated reasons for their homelessness. League of California Cities — WATCH Location: In Senate Policy Committee AB 2162 (Chiu) I Planning and zoning: Housing development: Supportive Housing Requires that supportive housing be a use by right in zones where multiple dwelling uses are permitted, including commercial zones. Projects must be subject to recorded affordability restrictions for 55 years; 100% of the units are dedicated to "low-income households"; and, 35% of the units are restricted to supportive housing. League of California Cities — WATCH Location: In Senate Policy Committee AB 3171 (Ting) I Homeless Persons Services Block Grant Establishes the Local Homelessness Solutions Program and creates the Local Homelessness Solutions Account for the purpose of providing funding to cities to create innovative and immediate solutions to the problems caused by homelessness. Allocates an unspecified amount of General Funds. League of California Cities — WATCH Location: In Senate Policy Committee SB 918 (Wiener) I Homeless Youth Act of 2018 Establishes the Office of Homeless Youth in the Department of Housing and Community Development. Requires the office to identify funding, policy, and practice gaps across state systems that serve, or hold the potential to serve, young people experiencing homelessness, develop specific recommendations and timelines for addressing these Legislative Update June 19, 2018 Page 10 of 12 gaps, and report to the Legislature. Appropriates up to $60 million in General Funds for grants to nonprofits or a continuum of care administrative entity. League of California Cities — WATCH Location: In Assembly Policy Committee OTHER AB 3162 (Friedman) I Alcoholism or drug abuse recovery or treatment facilities Requires, for any licensing application submitted on or after January 1, 2019, the department to deny an application for a new facility license, if the proposed location is in proximity to an existing facility that would result in overconcentration. Requires the department, at least 45 days prior to approving any application for any new facility, to post on its Internet Web site the address of the proposed new facility. League of California Cities — SUPPORT (Hot) Association of California Cities Orange County — SUPPORT Location: In Senate Policy Committee AB 3194 (Daly) I Housing Accountability Act: Project approval Prohibits a housing development project from being found inconsistent, not in compliance, or not in conformity, with the applicable zoning ordinance, and would prohibit a local government from requiring a rezoning of the project site, if the existing zoning ordinance does not allow the maximum residential use, density, and intensity allowable on the site by the land use or housing element of the general plan. League of California Cities — OPPOSE Location: In Senate Policy Committee SB 833 (McGuire) I Emergency Alerts: Evacuation orders: Operators Requires the Office of Emergency Services (OES) to ensure that each emergency management office within a city or county is a registered federal Wireless Emergency Alert (WEA) operator and has functional, up-to-date WEA software and annual training for operation of the WEA system. Additionally, this bill would require a "red alert" system designed for quick response to issue and coordinate alerts for evacuation orders and to incorporate the system into a variety of notification resources, including the state -utilized emergency notification system inclusive of local digital signs, radio, television, text messaging, or other technologies. League of California Cities — SUPPORT (Hot) Association of California Cities Orange County — SUPPORT Location: In Assembly Policy Committee Legislative Update June 19, 2018 Page 11 of 12 SB 946 (Lara) I Sidewalk Vendors Prohibits a local authority from adopting rules or regulations that regulate or prohibit sidewalk vendors unless it first adopts a sidewalk vending licensing program that requires a sidewalk vendor to obtain a license from the local authority before selling food or merchandise. Prohibits restricting the location of a licensed sidewalk vendor unless the restriction is directly related to objective health, safety, or welfare concerns. Prohibits restricting licensed sidewalk vendors from selling food or merchandise in a park. League of California Cities — WATCH Location: In Assembly Policy Committee