HomeMy WebLinkAboutStaff Report 13796
City of Palo Alto (ID # 13796)
City Council Staff Report
Meeting Date: 2/7/2022 Report Type: Information Reports
City of Palo Alto Page 1
Title: Sales Tax Digest Summary Calendar 2021 Q3
From: City Manager
Lead Department: Administrative Services
DISCUSSION
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the third
quarter (July to September) of 2021.
There are two attachments to this report that provide further level of information:
• City of Palo Alto Sales Tax Digest Summary (Attachment A)
• Policy and Capitol Update - December 2021 (Attachment B)
The City’s sales tax cash receipts of $6.8 million for the third quarter (July to September 2021) is
$251 thousand (3.8 percent) higher than the same quarter of the prior year (see Attachment A,
Table 5). In contrast, the third quarter of 2020 compared to the same quarter of 2019 declined
by $2 million (23.8 percent). It is important to recognize that the state of California offered
small businesses a 90-day extension to pay their first quarter of 2020 taxes due to the economic
impact of the pandemic. This resulted in some businesses paying their first quarter economic
payments in the third quarter of 2020. After adjustments made for the non-period related
payments, the overall economic quarter over quarter sales tax activity (Q3 2020 to Q3 2021)
increased by 17.6 percent. It should be noted that Q3 2020 saw significant impacts from COVID-
19 due to it being the first full quarter after the pandemic began.
For the year ending in the third quarter of 2021, cash receipts (including county pools) for the
City increased by 1.9 percent from the prior year. In comparison, statewide increased by 17.6
percent, Northern California increased by 16.7 percent, and Southern California by 18.4
percent.
After adjustments for non-period related payments, the overall economic sales tax activity
(local business excluding pools) in Palo Alto for the year increased by 4.0 percent, while it
increased 9.5 percent for the state, increased 7.7 percent in Northern California and increased
10.8 percent in Southern California.
.
City of Palo Alto Page 2
The third quarter includes $1.3 million of sales tax receipts from the county pool. The City’s
share of the county pool for this quarter is 5 percent, down from 5.3 percent in the third
quarter of 2020. County pools are primarily from online purchases from out of state companies,
remote sellers who ship merchandise to California/County destinations, and private vehicle
sales that are not directly allocated to a jurisdiction. County pools are allocated to local
jurisdictions based on each jurisdiction’s’ share of total sales taxes.
Attachments:
• Attachment A - City of Palo Alto Sales Tax Digest Summary
• Attachment B - Policy and Capitol Update - December 2021
City of Palo Alto
Sales Tax Digest Summary
Collections through December 2021
Sales July through September 2021 (2021Q3)
www.avenuinsights.com (800) 800-8181 Page 1
California Overview
For the year ending in third quarter of 2021, cash receipts increased 17.6% statewide, 16.7% in Northern
California and 18.4% in Southern California. However, when adjusted for non‐period related payments,
the overall economic sales tax activity for the year ending in third quarter of 2021 increased by 9.5%
statewide, 10.8% in Southern California, and up 7.7% in Northern California.
City of Palo Alto
For the year ending in the third quarter of 2021, sales tax cash receipts for the city increased by 1.9% from
the prior year. However, when adjusted for non‐period related payments, the overall economic sales tax
activity in Palo Alto for the year ending in third quarter of 2021 increased by 4.0%.
On a quarterly basis, sales tax cash receipts increased by 3.8% from Quarter 3 of 2020 to Quarter 3 of
2021. However, this increase includes late payment anomalies related to a state sales tax extension
program (see note below). The period’s cash receipts include tax from business activity during the period,
payments for prior periods and other cash adjustments. When adjusted for non‐period related payments,
the overall economic quarter over quarter sales tax activity (Q3 2020 to Q3 2021) in Palo Alto increased
by 17.6%.
Note: It is important to recognize that the state offered small businesses a 90‐day extension to pay their
first quarter of 2020 taxes (to alleviate some of the short‐term economic difficulties of the pandemic), and
some businesses had partial or no payments for the first quarter of 2020. As a result of this extension
program, some payments for first quarter economic activity were paid in the third quarter of 2020. While
Palo Alto experienced a 26.6% cash decrease for the first quarter of 2020 (from Q1 2019), this includes
late payment decreases related to the state 90‐day extension program, actual first quarter of 2020
economic activity did not decline to this extent.
Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it
shows a full calendar year from the third quarter of 2020 through third quarter of 2021 compared to third
quarter of 2019 through third quarter of 2020 (benchmark years are rolling annual comparisons through
the current quarter). The decrease is different between the state and Palo Alto because the sales tax from
businesses in Palo Alto were more impacted than those statewide.
Attachment A
City of Palo Alto
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% of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast
General Retail 28.5 / 10.4 28.6 / 15.4 26.6 / 7.0 28.1 / 32.7 38.8 / 33.6 27.0 / 14.0 31.5 / 9.0 30.4 / 12.0 30.0 / 6.3
Food Products 13.7 / ‐5.4 18.8 / 7.6 18.2 / ‐5.5 15.2 / 7.7 13.5 / ‐1.3 20.8 / 6.1 17.7 / 12.8 16.1 / ‐29.4 31.0 / ‐4.1
Transportation 23.9 / 30.5 23.9 / 13.8 21.6 / 8.3 28.0 / 18.0 21.0 / 1.0 24.6 / 17.1 13.6 / 11.2 27.6 / 8.5 22.7 / 11.4
Business to Business 30.1 / ‐15.2 16.8 / 4.2 21.3 / 3.6 14.1 / 6.6 15.1 / 1.8 16.7 / 4.9 26.0 / 19.3 9.4 / 8.0 7.5 / ‐19.4
Misc/Other 27.8 / 35.6 11.8 / 7.1 12.3 / 2.8 14.7 / 16.7 11.6 / 3.1 10.8 / 7.8 14.2 / 10.9 16.5 / 7.7 8.8 / 4.9
Total 100.0 / 4.0 100.0 / 9.5 100.0 / 3.5 100.0 / 18.0 100.0 / 11.6 100.0 / 10.7 100.0 / 11.8 100.0 / 0.5 100.0 / 1.4
Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast
Largest Segment Auto Sales ‐
New Restaurants Auto Sales ‐
New
Auto Sales ‐
New
Miscellaneous
Retail Restaurants Auto Sales ‐
New
Auto Sales ‐
New Restaurants
% of Total / % Change 20.3 / 34.9 12.5 / 2.4 11.9 / 13.6 12.4 / 22.9 13.2 / 150.0 14.2 / 5.9 13.0 / 17.9 11.9 / 17.8 21.1 / ‐4.9
2nd Largest Segment Leasing
Auto Sales ‐
New Restaurants Restaurants
Department
Stores
Auto Sales ‐
New
Miscellaneous
Retail
Department
Stores
Auto Sales ‐
New
% of Total / % Change 19.6 / 33.3 12.2 / 20.4 11.8 / ‐6.3 9.8 / 9.7 10.9 / ‐0.4 13.1 / 27.1 12.4 / 65.1 11.9 / 8.9 12.9 / 14.9
3rd Largest Segment Restaurants
Miscellaneous
Retail
Miscellaneous
Retail
Miscellaneous
Retail Restaurants Department
Stores Restaurants Bldg.Matls‐
Retail
Miscellaneous
Retail
% of Total / % Change 11.8 / ‐4.8 8.9 / 32.9 9.8 / 8.7 9.5 / 106.5 8.7 / 0.6 8.4 / 7.1 10.9 / 7.1 10.0 / 10.0 9.1 / 6.5
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2021
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2021
Regional Overview Chart (Economic)
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
$‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Table 1
Table 2
City of Palo Alto
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Auto Sales ‐New
20.3%
Restaurants
11.8%
Leasing
19.7%
Office Equipment
5.5%Furniture/Appliance
4.8%
Department Stores
5.7%
All Other
32.1%
Net Pools & Adjustments
22.5%
Anderson Honda HP Enterprise Services Shell Service Stations
Apple Stores Louis Vuitton Shreve & Co.
Arco AM/PM Mini Marts Lucile Packard Children's Hospital Stanford Outpatient Clinic Pharmacy
Atila Biosystems Incorporated Macy's Department Store Tesla
Audi Palo Alto Magnussen's Toyota of Palo Alto Tesla Lease Trust
Bloomingdale's Neiman Marcus Tiffany & Company
Crate & Barrel Nordstrom Department Store Varian Medical Systems
Hengehold Trucks Richemont Volvo Cars Palo Alto
Hermes
Net Cash Receipts for Benchmark Year third Quarter 2021: $28,375,417
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2021Q3 BMY is sum of 2021 Q3, 2021 Q2, 2021 Q1, 2020 Q4)
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended third quarter of 2021. The Top 25 Sales/Use Tax contributors generate
62.3% of Palo Alto’s total sales and use tax revenue.
Table 3
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City of Palo Alto
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$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Benchmark Year 2021Q3 Benchmark Year 2020Q3
Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic)
Table 4
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Economic Category % 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1
Business To Business 26.0% 1,762,093 1,652,745 1,765,043 2,060,217 2,022,479 1,851,601 2,000,210 2,375,333 1,942,593 1,958,591 2,244,140
Miscellaneous/Other 25.1% 1,702,838 1,620,383 1,467,407 1,679,573 1,322,172 997,005 1,227,541 1,693,416 1,516,049 1,784,443 1,464,642
General Retail 26.5% 1,798,257 1,803,297 1,262,756 1,746,602 1,300,645 660,300 1,450,820 2,579,412 2,416,101 1,993,425 1,887,330
Food Products 14.3% 970,873 897,222 619,501 668,640 650,152 439,540 990,266 1,256,287 1,205,242 1,268,595 1,176,607
Subtotal Economic (Local Business) 92.0% 6,234,061 5,973,646 5,114,708 6,155,031 5,295,448 3,948,447 5,668,837 7,904,447 7,079,986 7,005,054 6,772,720
Net Pools & Adjustments 8.0% 539,929 1,496,795 1,675,094 1,186,152 1,227,876 1,877,921 ‐2,287 1,937,461 1,477,413 1,741,608 942,435
Total Cash Receipts 100.0% 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155
Economic Segment % 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1
Miscellaneous/Other 56.7% 3,837,648 3,654,707 3,499,781 4,170,752 3,682,918 3,181,367 3,551,274 4,677,431 4,315,212 4,044,495 4,097,694
Restaurants 12.7% 857,066 785,086 527,203 552,176 545,728 342,533 867,027 1,105,719 1,073,522 1,123,322 1,041,119
Miscellaneous Retail 6.0% 407,467 456,685 327,729 479,041 326,777 108,953 280,493 499,697 384,397 392,196 333,960
Apparel Stores 5.9% 400,589 395,779 264,322 358,744 263,940 72,307 305,737 552,735 469,447 486,790 408,476
Department Stores 5.7% 388,703 384,763 237,473 315,453 186,316 29,842 245,948 552,822 431,717 453,675 356,943
Service Stations 2.7% 181,448 152,565 116,258 111,241 108,840 70,063 146,291 181,082 175,309 185,969 159,032
Food Markets 1.3% 87,521 89,669 71,321 89,396 81,580 77,803 102,026 118,952 104,192 113,363 106,194
Business Services 1.1% 73,620 54,393 70,621 78,228 99,348 65,579 170,042 216,011 126,190 205,245 269,302
Subtotal Economic (Local Business) 92.0% 6,234,061 5,973,646 5,114,708 6,155,031 5,295,448 3,948,447 5,668,837 7,904,447 7,079,986 7,005,054 6,772,720
Net Pools & Adjustments 8.0% 539,929 1,496,795 1,675,094 1,186,152 1,227,876 1,877,921 ‐2,287 1,937,461 1,477,413 1,741,608 942,435
Total Cash Receipts 100.0% 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155
Historical Analysis by Calendar Quarter
The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding
up the categories/segments with the “Net Pools & Adjustments” amount.
Table 5
City of Palo Alto
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Economic Category % 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 2012Q3
Business To Business 24.7% 6,999,219 8,253,250 8,055,541 6,763,767 5,531,447 5,274,809 4,252,383 4,537,394 4,206,253 4,530,832
Miscellaneous/Other 22.5% 6,372,414 4,712,030 7,171,279 6,980,525 5,906,596 6,045,883 5,685,238 5,340,922 9,283,251 3,646,358
General Retail 23.3% 6,619,559 5,993,272 8,856,399 8,591,732 8,426,080 8,235,548 8,097,731 8,085,021 7,813,954 7,813,144
Food Products 11.2% 3,178,556 3,361,012 4,895,601 4,798,957 4,627,887 4,622,126 4,411,228 4,126,302 3,731,703 3,459,735
Subtotal Economic (Local Business) 81.7% 23,169,747 22,319,564 28,978,821 27,134,981 24,492,011 24,178,367 22,446,580 22,089,640 25,035,161 19,450,069
Net Pools & Adjustments 18.3% 5,205,669 5,538,585 5,948,180 4,835,355 5,055,052 4,110,642 4,201,030 3,612,493 3,626,104 2,339,062
Total 100.0% 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 21,789,131
Economic Segment % 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 2012Q3
Miscellaneous/Other 52.3% 14,838,334 14,569,551 17,209,047 15,271,633 12,784,979 12,449,507 11,022,846 11,018,397 14,405,546 9,179,741
Restaurants 9.7% 2,741,388 2,879,829 4,321,305 4,196,864 4,027,179 4,020,785 3,835,898 3,602,981 3,200,200 2,951,772
Miscellaneous Retail 5.9% 1,677,314 1,216,140 1,655,675 1,687,520 2,033,076 1,992,497 1,519,840 1,518,777 1,394,483 1,307,501
Apparel Stores 5.0% 1,421,321 1,194,935 1,964,304 1,930,814 1,721,788 1,630,972 1,656,560 1,663,440 1,617,661 1,610,052
Department Stores 4.7% 1,326,441 1,014,928 1,842,132 2,085,700 2,032,059 2,188,368 2,402,334 2,376,717 2,466,909 2,463,373
Service Stations 2.0% 561,512 506,276 693,647 671,528 601,794 554,825 668,928 784,615 760,477 749,389
Food Markets 1.2% 339,229 386,305 448,033 482,100 502,234 508,991 500,731 454,455 466,036 450,222
Business Services 0.9% 264,209 551,601 844,677 808,822 788,902 832,423 839,442 670,259 723,849 738,017
Subtotal Economic (Local Business) 81.7% 23,169,747 22,319,564 28,978,821 27,134,981 24,492,011 24,178,367 22,446,580 22,089,640 25,035,161 19,450,069
Net Pools & Adjustments 18.3% 5,205,669 5,538,585 5,948,180 4,835,355 5,055,052 4,110,642 4,201,030 3,612,493 3,626,104 2,339,062
Total 100.0% 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 21,789,131
Historical Analysis by Calendar BMY from 2012Q3 to 2021Q3
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by
adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters
(2021Q3 BMY is sum of 2021 Q3, 2021 Q2, 2021 Q1, 2020 Q4).
Table 6
City of Palo Alto
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Campbell 5.9% 41.9% 31.8%‐21.5% 3.4% 2,343,797 2,071,441 13.1% Restaurants Service Stations Office Equipment Florist/Nursery
Cupertino 16.1% 51.4% 65.5%‐4.7% 1.8% 10,031,062 10,151,803 ‐1.2% I.T. Infrastructure Restaurants Office Equipment Heavy Industry
Gilroy 21.6% 23.0% 62.7% 9.3%‐0.2% 4,197,465 3,309,845 26.8% Auto Sales ‐ New Service Stations Light Industry Bldg.Matls‐Retail
Los Altos 37.2% 27.2% 49.6% 7.9% 13.1% 551,214 421,926 30.6% Restaurants Service Stations Business Services Bldg.Matls‐Retail
Los Gatos 16.3% 17.2% 19.8% 27.9%‐17.0% 1,369,505 1,200,384 14.1% Restaurants Service Stations Food Processing Eqp Miscellaneous Other
Milpitas 74.9% 64.0% 26.2%‐0.6%‐8.2% 5,242,698 4,311,523 21.6% Apparel Stores Restaurants Office Equipment Bldg.Matls‐Whsle
Morgan Hill 7.8% 22.3% 26.4% 0.6% 14.8% 2,414,955 2,060,075 17.2% Service Stations Restaurants Light Industry Auto Parts/Repair
Mountain View 5.7% 28.8% 50.6% 63.0%‐31.2% 4,188,404 3,303,760 26.8% Restaurants Business Services Bldg.Matls‐Whsle Miscellaneous Retail
Palo Alto 38.1% 49.2% 38.6%‐12.9%‐29.8% 6,234,061 5,302,548 17.6% Leasing Auto Sales ‐ New Office Equipment Green Energy
San Jose 3.3% 28.2% 31.2% 19.8% 5.0% 51,823,853 45,460,288 14.0% Restaurants Auto Sales ‐ New Miscellaneous Retail Auto Sales ‐ Used
Santa Clara 47.4% 57.0% 14.7% 12.5% 31.2% 12,275,721 10,046,392 22.2% Office Equipment Restaurants Business Services Leasing
County of Santa Clara 60.8% 93.4%‐10.7%‐6.3% 26.3% 1,190,957 868,291 37.2% Food Processing Eqp Miscellaneous Retail Misc. Vehicle Sales Business Services
Saratoga 49.9% 40.7% 67.1% 83.2%‐43.4% 261,278 179,605 45.5% Restaurants Service Stations Furniture/Appliance Bldg.Matls‐Whsle
Sunnyvale 27.8% 27.5% 27.5% 7.2% 20.4% 5,736,796 4,779,402 20.0% Light Industry Auto Sales ‐ New Office Equipment Business Services
Quarterly Analysis by Sales Tax Category: Change from 2020Q3 to 2021Q3 (Economic)
Unlike the chart on page one which showed a ‘benchmark year’ through third quarter of 2021, the chart above shows a comparison of one quarter only – third
quarter of 2021 to third quarter of 2020. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments.
Table 7
City of Palo Alto
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California Avenue % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 70.3% 48,380 28,412 41.8%35.6%
GENERAL RETAIL 8.8% 34,833 32,026 30.1%40.2%
ALL OTHER 68.7% 32,519 19,279 28.1%24.2%
TOTAL 45.2% 115,733 79,717 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 44.8% 125,775 86,839 38.2%34.2%
GENERAL RETAIL 11.5% 35,937 32,232 10.9%12.7%
ALL OTHER 24.4% 167,486 134,602 50.9%53.1%
TOTAL 29.8% 329,197 253,673 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 64.9% 366,469 222,282 55.9%51.3%
GENERAL RETAIL 42.9% 232,977 162,996 35.5%37.6%
BUSINESS TO BUSINESS 44.2% 33,753 23,403 5.1%5.4%
CONSTRUCTION ‐23.9% 11,823 15,535 1.8%3.6%
MISCELLANEOUS 21.6% 7,126 5,862 1.1%1.4%
TRANSPORTATION 27.3% 3,957 3,109 0.6%0.7%
TOTAL 51.5% 656,105 433,188 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 62.2% 1,049,142 646,676 72.1%68.3%
FOOD PRODUCTS 40.6% 133,926 95,278 9.2%10.1%
ALL OTHER 32.9% 272,815 205,215 18.7%21.7%
TOTAL 53.7% 1,455,883 947,169 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q3 to 2021Q3 (Economic)
Table 8
City of Palo Alto
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Town And Country Shopping Center % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 27.3% 54,803 43,038 37.6%42.6%
ALL OTHER 57.0% 91,082 58,014 62.4%57.4%
TOTAL 44.4% 145,885 101,052 100.0% 100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
BUSINESS TO BUSINESS ‐11.4% 1,611,066 1,819,100 29.5%39.4%
GENERAL RETAIL 38.8% 1,604,631 1,155,676 29.4%25.1%
TRANSPORTATION 40.1% 1,330,344 949,355 24.4%20.6%
FOOD PRODUCTS 52.9% 805,274 526,836 14.8%11.4%
MISCELLANEOUS 17.2% 54,951 46,885 1.0%1.0%
CONSTRUCTION ‐58.7% 47,547 115,103 0.9%2.5%
TOTAL 18.2% 5,453,814 4,612,954 100.0% 100.0%
All Geo Area Totals Comparison 21Q3 & 20Q3 % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
Balance of Jurisdiction ‐1.7% 2,751,011 2,798,156 50.4%60.7%
Stanford Shopping Center 53.7% 1,455,883 947,169 26.7%20.5%
Greater Downtown 51.5% 656,105 433,188 12.0%9.4%
El Camino Real and Midtown 29.8% 329,197 253,673 6.0%5.5%
Town And Country Shopping Center 44.4% 145,885 101,052 2.7%2.2%
California Avenue 45.2% 115,733 79,717 2.1%1.7%
TOTAL 18.2% 5,453,814 4,612,954 100.0% 100.0%
Palo Alto citywide QE 21Q3 & 20Q3 % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 38.1% 1,798,257 1,301,799 28.8%24.6%
BUSINESS TO BUSINESS ‐12.9% 1,762,093 2,024,034 28.3%38.2%
TRANSPORTATION 38.6% 1,558,372 1,124,734 25.0%21.2%
FOOD PRODUCTS 49.2% 970,873 650,744 15.6%12.3%
MISCELLANEOUS 16.0% 91,461 78,840 1.5%1.5%
CONSTRUCTION ‐56.7% 53,005 122,397 0.9%2.3%
TOTAL 17.6% 6,234,061 5,302,548 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q3 to 2021Q3 (Economic) Cont.
Table 9
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 10
FOOD PRODUCTS,
70.3% CHANGE, $48,380 ,
41.8% TOTAL
GENERAL RETAIL, 8.8% CHANGE,
$34,833 , 30.1% TOTAL
ALL OTHER,
68.7% CHANGE, $32,519 ,
28.1% TOTAL
California Avenue 2021Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $28,412 ,
35.6% TOTAL
GENERAL RETAIL,
$32,026 , 40.2% TOTAL
ALL OTHER, $19,279 ,
24.2% TOTAL
California Avenue 2020Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
44.8% CHANGE, $125,775 ,
38.2% TOTAL
GENERAL RETAIL,
11.5% CHANGE, $35,937 ,
10.9% TOTAL
ALL OTHER,
24.4% CHANGE,
$167,486 ,
50.9% TOTAL
El Camino Real and Midtown 2021Q3SALES TAX AMOUNTS
FOOD PRODUCTS, $86,839 ,
34.2% TOTAL
GENERAL RETAIL,
$32,232, 12.7% TOTAL
ALL OTHER, $134,602,
53.1% TOTAL
El Camino Real and Midtown 2020Q3SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Table 10
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 11
FOOD PRODUCTS,
64.9% CHANGE, $366,469 ,
55.9% TOTAL
GENERAL RETAIL,
42.9% CHANGE,
$232,977 ,
35.5% TOTAL
BUSINESS TO BUSINESS,
44.2% CHANGE, $33,753 ,
5.1% TOTAL
CONSTRUCTION,
‐23.9% CHANGE, $11,823 ,
1.8% TOTAL
MISCELLANEOUS, 21.6% CHANGE,
$7,126 , 1.1% TOTAL
TRANSPORTATION,
27.3% CHANGE, $3,957 ,
0.6% TOTAL
Greater Downtown 2021Q3SALES TAX AMOUNTS
FOOD PRODUCTS,
$222,282 , 51.3% TOTAL
GENERAL RETAIL,
$162,996 , 37.6% TOTAL
BUSINESS TO BUSINESS,
$23,403 , 5.4% TOTAL
CONSTRUCTION, $15,535 ,
3.6% TOTAL
MISCELLANEOUS,
$5,862 , 1.4% TOTAL
TRANSPORTATION, $3,109 ,
0.7% TOTAL
Greater Downtown 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL
$646,676 , 68.3% TOTAL
FOOD PRODUCTS, $95,278 ,
10.1% TOTAL
ALL OTHER, $205,215 ,
21.7% TOTAL
Stanford Shopping Center 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL, 62.2% CHANGE,
$1,049,142 , 72.1% TOTAL
FOOD PRODUCTS,
40.6% CHANGE,
$133,926 , 9.2% TOTAL
ALL OTHER, 32.9% CHANGE,
$272,815 , 18.7% TOTAL
Stanford Shopping Center 2021Q3SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts
Table 11
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 12
GENERAL RETAIL,
27.3% CHANGE, $54,803 ,
37.6% TOTAL
ALL OTHER,
57.0% CHANGE,
$91,082 , 62.4% TOTAL
Town And Country Shopping Center 2021Q3SALES TAX AMOUNTS
GENERAL RETAIL, $43,038 ,
42.6% TOTAL
ALL OTHER, $58,014 ,
57.4% TOTAL
Town And Country Shopping Center 2020Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
‐11.4% CHANGE,
$1,611,066 ,
29.5% TOTAL
GENERAL RETAIL,
38.8% CHANGE, $1,604,631,
29.4% TOTAL
TRANSPORTATION,
40.1% CHANGE,
$1,330,344,
24.4% TOTAL
FOOD PRODUCTS,
52.9% CHANGE, $805,274 ,
14.8% TOTAL
MISCELLANEOUS,
17.2% CHANGE, $54,951 ,
1.0% TOTAL
CONSTRUCTION, ‐58.7% CHANGE,
$47,547 , 0.9% TOTAL
All Other Geos combined with Balance of Jurisdiction 2021Q3
SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$1,819,100 ,
39.4% TOTAL
GENERAL RETAIL, $1,155,676,
25.1% TOTAL
TRANSPORTATION,
$949,355,
20.6% TOTAL
FOOD PRODUCTS,
$526,836 , 11.4% TOTAL
MISCELLANEOUS,
$46,885 , 1.0% TOTAL
CONSTRUCTION,
$115,103 , 2.5% TOTAL
All Other Geos combined with Balance of Jurisdiction 2020Q3
SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Table 12
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 13
Balance of Jurisdiction,
‐1.7% CHANGE,
$2,751,011 ,
50.4% TOTAL
Stanford Shopping Center,
53.7% CHANGE, $1,455,883 ,
26.7% TOTAL
Greater Downtown,
51.5% CHANGE, $656,105 ,
12.0% TOTAL
El Camino Real and Midtown,
29.8% CHANGE, $329,197 ,
6.0% TOTAL
Town And Country Shopping Center,
44.4% CHANGE, $145,885 , 2.7% TOTAL California Avenue, 45.2% CHANGE,
$115,733 , 2.1% TOTAL
All Geo Area Totals 2021Q3SALES TAX AMOUNTS
Balance of Jurisdiction,
$2,798,156 , 60.7% TOTAL
Stanford Shopping Center,
$947,169 , 20.5% TOTAL
Greater Downtown,
$433,188 ,9.4%TOTAL
El Camino Real and Midtown,
$253,673 , 5.5% TOTAL
Town And Country Shopping Center,
$101,052 , 2.2% TOTAL
California Avenue,
$79,717 , 1.7% TOTAL
All Geo Area Totals 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL,
38.1% CHANGE, $1,798,257 ,
28.8% TOTAL
BUSINESS TO BUSINESS,
‐12.9% CHANGE,
$1,762,093 , 28.3% TOTAL
TRANSPORTATION,
38.6% CHANGE,
$1,558,372 ,
25.0% TOTAL
FOOD PRODUCTS,
49.2% CHANGE, $970,873 ,
15.6% TOTAL
MISCELLANEOUS, 16.0% CHANGE,
$91,461 , 1.5% TOTAL
CONSTRUCTION,
‐56.7% CHANGE,
$53,005 , 0.9% TOTAL
Palo Alto citywide 2021Q3SALES TAX AMOUNTS
GENERAL RETAIL, $1,301,799 ,
24.6% TOTAL
BUSINESS TO BUSINESS,
$2,024,034 ,38.2% TOTAL
TRANSPORTATION,
$1,124,734 ,
21.2% TOTAL
FOOD PRODUCTS,
$650,744 , 12.3% TOTAL
MISCELLANEOUS,
$78,840 , 1.5% TOTAL
CONSTRUCTION, $122,397 ,
2.3% TOTAL
Palo Alto citywide 2020Q3SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
Table 13
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
March 2021
The Muniservices/Avenu teams sends our very best to you for a safe and enjoyable holiday season. It is a
pleasure and an honor to collaborate with all of you. Please feel free to contact us at any time as we come
to the close of 2021 and as things gear up in 2022.
Please feel free to contact me with any questions.
Fran Mancia, Vice President of Government Relations Fran.Mancia@AvenuInsights.com
What lies ahead in 2022?
We are anticipating another busy legislative and budget year in 2022, with the Legislature reconvening to
begin their work for 2022 on January 3rd. As the second year in a two-year session, legislation introduced
in 2021 that has not yet moved to the second house must move forward in January or will die, with
exceptions for measures requiring a ⅔ vote. This means that in January there will be a rush of policy and
fiscal committee hearings in addition to the release of the governor’s 2022-23 budget proposal on or by
January 10.
Important Dates in early 2021:
January 3: Legislature reconvenes
January 10: Budget must be submitted by governor
January 14: Last day for policy committees to hear and report to fiscal committees on fiscal bills
introduced in their house in 2021
January 21: Last day for any committee to hear and report to the Floor bills introduced in their house in
2021
January 21: Last day to submit bill requests to the Office of Legislative Counsel
January 31: Last day for each house to pass bills introduced in 2021 in their house
February 18: Last day for bills to be introduced
During December, legislators, their staff, the governor, and his staff are all completing their office moves
over to the “swing space” at 10th and O Street to allow for the rebuilding of the Capitol annex which is
estimated to be completed in 2025. This will necessitate a number of adjustments both as it pertains to
lobbying, as well as to the location of committee hearings. The new swing space has four committee
rooms, which will be utilized for larger hearings traditionally taking place in the Capitol annex.
Budget Updates: Both the Senate and Assembly Budget Committees released overviews of their priorities
for 2022 last week, in advance of the governor’s January 10 proposal.
The Senate’s Key Values document was a preview of their detailed Senate budget priorities to be released
early next year. Below are their high-level areas of focus.
Policy and Capitol Update – December 2021
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
Sustain Progress: Build upon reserves, pay down debt and retirement liabilities, use one-time funding for
one-time purposes, maintain existing priorities that promote equity, and expand oversight and
accountability.
Strengthen Equity/Meet Gann Limit Requirements
● Maximize infrastructure investment.
● Build on targeted tax relief programs for families.
● Ensure ongoing commitments can be made to health, safety net, and higher education programs,
and
● Consider reforms to modernize the Gann Limit.
Build a More Equitable Economy
● Support childcare, small businesses, and the essential workforce.
● Support aging Californians.
● Improve public health, mental health, and health access and affordability.
● Balance public safety and justice.
● Address housing challenges.
● Boost infrastructure including transportation, education, broadband, and climate/disaster
resiliency.
● Protect school budgets.
● Improve higher education quality, affordability, and accessibility.
● Enhance climate, environment, and resource protection, and
● Strengthen wildfire mitigation and response.
The Assembly Budget Blueprint reviewed actions taken in the 2021-22 budget and prioritized the
following for 2022:
● Implementation of 2021 investments including climate resilience, wildfires, broadband, and
behavioral health.
● Addressing the State Appropriations (Gann) limit.
● Increased funding for education, particularly as it relates to mental health and learning loss.
● Ensuring homelessness and affordable housing funding are providing additional permanent and
temporary housing.
● Oversight of the Employment Development Department’s progress in implementing
improvements.
● Preventing tenant evictions.
● Funding wildfire prevention and climate investments promptly.
● Improve public health infrastructure.
● Accountability measures for CalAIM and the Children and Youth Behavioral Health initiatives.
● Address disparities and needs in the child welfare and foster care system.
● Drought response and water resilience funding to the most vulnerable communities.
● Broadband access to inaccessible communities.
● Scrutinize prison operations and restore independent oversight in the Office of the Inspector
General.
● Promote the creation of living wage jobs.
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
● Fund the Department of Toxic Substances Control to ensure resources to clean toxic sites.
● Major infrastructure investments:
○ $10 billion for school facilities; $10 billion for transportation projects including transit
infrastructure; more affordable housing and homelessness prevention; modernize
courthouses and leverage federal infrastructure funds.
○ Create an ongoing funding stream for supportive housing of indigent adults.
○ Bolster enrollment growth at UC and CSU.
○ Attract new workers to health care, education, and childcare occupations.
○ Increase access to Medi-Cal, CalFresh, and CalWORKs through program simplification
and expanded eligibility.
○ More resources for violence and suicide prevention.
○ Focus on providing second chances for formerly incarcerated individuals.
Legislative Prospective: With the new legislative cycle a few weeks away, many lawmakers have already
signaled their legislative priorities for 2022. These include existing issues like the COVID-19 pandemic,
broadband funding, and the implementation of large-scale behavioral health programs.
Though we don't know much about the new Omicron strain of COVID-19, a number of bills are likely to
be introduced relating to the ongoing pandemic. These include both legislation allowing personal belief
exemptions as well as conflicting legislation mandating vaccinations or testing. Cal/OSHA is scheduled to
meet on December 16 and could expand worker protections related to COVID-19 that employers have
been fighting throughout the pandemic. In addition, the State’s $6 billion investment in broadband will
now be enhanced by more than $100 million in federal funding which must be programmed.
Legislation that stalled in 2021 may also be revived in 2022, including attempts to decriminalize
hallucinogens, the implementation of public injection sites in an effort to address substance abuse,
development of a single-payer health system, and the regulation of social media platforms.
The continued fight for environmental protections could ramp up in 2022 with the recent oil spill off the
coast of Orange County and a number of legislators’ attendance at the Glasgow Climate Change
Conference. Legislators have already committed to introducing bills that would ban oil drilling in state
waters. Additionally, we could see administrative action on battery-powered engines, rules to prohibit
wasteful water use, and CPUC proposals on Net Energy Metering reform.
Additionally, the upcoming legislative cycle could prove extra challenging for legislators, as revised maps
from the California Citizens Redistricting Commission will greatly change some lawmakers’ districts.
Legislators will need to be cognizant of their new constituents, which could influence their voting and the
legislation they choose to pursue. Competitive districts will change, making for a unique legislative year
as legislators not only adjust to new Sacramento offices, but new districts with new priorities.
LAO Fiscal Outlook: 2022-23 Budget: November 17, the Legislative Analyst's Office (LAO) published a
report on California's fiscal outlook for the 2022-23 budget. This report is an early projection of
California's economic status for the upcoming fiscal year.
Surplus: Due to continued growing state revenues, the LAO projects a surplus of $31 billion for the 2022-
23 fiscal year. Retail sales have doubled in growth in 2021, stock prices have doubled since the pandemic
low in Spring 2020, and major firms posted historically high earnings. As a result of this unexpected
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
growth, the Legislature will need to allocate roughly $14 billion to meet the constitutional requirement
under State Appropriations Limit (SAL) by reducing taxes, spending more on excluded purposes like
infrastructure, or making additional payments to schools and community colleges.
Spending to meet SAL: Prop 98 guarantees K-14 funding through a combination of state General Fund
dollars and local property tax revenues. In remaining consistent with revenue increases, spending on K-14
schools is likely to increase by almost $11 billion. Additionally, with the expansion of Transitional
Kindergarten, a $421 million spending increase in 2022-23 is anticipated. This leaves the Legislature with
an estimated $9.5 billion in ongoing discretionary funds available, and $10.2 billion in one-time funds
available, totaling $19.7 billion for K-14 over the next 3 years in order to meet the constitutional
requirement under SAL.
Spending in the rest of the budget is lower than projected by $5 billion due to a number of factors,
including savings associated with an enhanced federal share of certain Medicaid programs. The federal
match increased 6.2% during the pandemic, and the continued enhanced share is assumed through March
2022. This means that General Fund spending will increase beginning the 4th quarter of the current fiscal
year 2021-22 to fully cover Medi-Cal. Additionally, $3.3 billion of spending set aside for transportation
infrastructure that ultimately did not pass the Legislature will revert to the General Fun. As a result, the
state may end up with an additional $5.2 billion surplus in 2022-23 which is included in the total surplus
projection of $31 billion. The LAO suggests that the Legislature should plan to meet the SAL early to
avoid adjustments during the governor’s May revise.
Reserves: With the current LAO estimates, the state's constitutional reserves could reach 10% of revenues
and transfers in the 2022-23 fiscal year, which is about $21 billion in the Budget Stabilization Account.
Pre-pandemic reserves were 13% of the state's revenues and transfers, so the state would need to make
additional, discretionary deposits into one of the reserves to meet the state's reserves prior to the
pandemic. The LAO recommends that the Legislature increase total reserves by more than the
constitutionally mandated level to return to pre-pandemic levels sooner. Because the bulk of revenue and
spending projections are dependent on legislative action, the LAO projects a surplus range between $3
and $8 billion through the 2025-26 budget.
26th UN Climate Change Conference of the Parties: This week, members of the Legislature and
Lieutenant Governor Eleni Kounalakis traveled to and have been reporting from the 26th UN Climate
Change Conference of the Parties (COP26) in Glasgow, Scotland. Governor Newsom was originally
scheduled to participate in the conference, however canceled his plans sending the Lieutenant Governor in
his stead. Over the past year, the governor has signed executive orders to phase out internal-combustion
vehicles, preserve 30 percent of the state's land and water by 2030, and phase out fracking by 2024 and oil
extraction by 2045. $15 billion was allocated in the 2021-22 Budget Act over the next three years by the
governor and Legislature for climate programs.
Although California legislators originally branded the trip as one to showcase California’s leadership in
climate change, it became clear quickly that we still have a lot to learn from other countries and states as
well as additional work to do in California.
Assembly Speaker Anthony Rendon (D-Lakewood), said that he anticipates reconsideration of AB 1395
or a similar measure in 2022 as a follow-up to the conference. AB 1395 (Muratsuchi), which failed
passage on the Senate Floor in September, declares it is the policy of the state to achieve net zero
greenhouse gas (GHG) emissions as soon as possible, but no later than 2045, and to achieve and maintain
net negative GHG emissions thereafter. Additionally, it declares that it is a policy of the state to ensure
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
that by 2045, statewide anthropogenic (originating from human activity) GHG emissions are reduced by
at least 90% below 1990 levels, which includes emissions prevented by carbon capture and storage.
Senator Josh Becker (D-Menlo Park) also announced his intent this week to introduce a bill requiring
California to reduce its emissions from state-owned vehicles, buildings, and other sectors to net zero by
2035, 10 years before the economy-wide target of 2045. He is additionally exploring legislation to
streamline the building of low-carbon construction projects.
On Monday November 8, the California Air Resources Board, on behalf of the state of California, signed
a Joint Declaration of cooperation in the fight against climate change with the governments of New
Zealand and Québec. AB 32 (Chapter 488, Statutes of 2006) requires consultation with other states, the
federal government, and other nations to identify the most effective strategies and methods to reduce
greenhouse gases, manage greenhouse gas control programs, and to facilitate the development of
integrated and cost-effective regional, national, and international greenhouse gas reduction programs. The
Joint Declaration states the intent to:
● Share information, experiences, and best practices on the implementation of strategies, policies,
and programs on the design of cap-and-trade systems for greenhouse gas emissions,
measurement, reporting and verification systems, sustainable mobility, forestry, agriculture, and
aligning incentives and investments to support and bolster climate action.
● Foster research, development, deployment, and exchange of clean technologies including in
renewable energy, energy efficiency, energy storage, agriculture, and zero-emission
transportation.
● Promote environmental integrity of carbon pricing instruments to reduce greenhouse gas
emissions worldwide.
● Explore opportunities for potential future alignment of our respective cap-and-trade programs
through focused information sharing and discussions related to cap setting, scope, auctions,
allocation, market rules, and other key program design features.
Legislators attending the conference included Senators Josh Becker, Lena Gonzalez (D-Long Beach), Bob
Hertzberg (D-Van Nuys), John Laird (D-Santa Cruz) and Bob Wieckowski (D-Fremont), Assembly
Speaker Anthony Rendon, and Assemblymembers Isaac Bryan (D-Los Angeles), Lisa Calderon (D-
Whittier), Laura Friedman (D-Glendale), Tasha Boerner Horvath (D-Encinitas), Eduardo Garcia (D-
Coachella), Al Muratsuchi (D-Torrance), Luz Rivas (D-North Hollywood), Mark Stone (D-Scotts
Valley), and Christopher Ward (D-San Diego).
Select Committee on Ports and Goods Movement: On November 3, the Assembly and Senate Select
Committees on Ports and Goods Movement held a joint hearing to discuss recent issues contributing to
delays in our national supply chain. The panelists consisted of experts representing ports in California, the
retail industry, labor groups, and various agricultural organizations who provided feedback to lawmakers
on factors hindering business operations as well as temporary solutions currently being utilized to address
port congestion.
Background: Port congestion is detrimental to both the California and national economy. About 40% of
all shipping containers entering the country come through the twin Los Angeles and Long Beach ports.
Manufacturers are struggling to acquire products to meet consumer demand and farmers are struggling to
secure empty containers to ship agricultural goods. Record demand for imported goods and labor
shortages are contributing to the backlog of container ships, and these delays will ultimately lead to higher
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
prices for consumers, greater wait times for goods, and could hinder California’s post-pandemic economic
recovery. The agriculture industry alone is experiencing a cancelation rate of about 80% of their
bookings, leading to a $7.5 million loss in sales for the industry.
Labor Shortage: As of October 19, 62 container ships were anchored off the coast waiting to unload at the
Los Angeles and Long Beach ports. Current wait time for ships is now approximately ten days, over 3.8
days longer than the wait time during September. Before the backlog, containers were typically left at
terminals for less than four days, however, recently, approximately 40% of containers are left for nine or
more days. Both ports are now implementing fines for containers left for long periods of time in hopes of
expediting the process.
The nation’s transportation industry is also facing an unprecedented worker shortage. According to the
Labor Department, job openings in the transportation, warehousing, and utilities sector have steadily
increased this year and reached 537,000 in August - a 67% increase from February 2020. Older
employees have retired or decided to transfer into other industries, and replacements are not forthcoming.
As a result, ports lack truckers, dock workers, and other utility driver workers that are essential to the
expedient unloading of materials into the United States.
State Action: The administration and ports have already taken some actions to address the supply chain
backlog to try and improve it, and we anticipate further action when the Legislature returns in January.
Earlier this year, GO-Biz launched the California Supply Chain Success Initiative, a partnership with the
California State Transportation Agency, the Port of Long Beach, and the CSU Long Beach Center for
International Trade and Transportation to engage stakeholders along the supply chain to discuss key
challenges and identify creative solutions. This effort, which brought together federal, state, and local
leaders, is focused on both short-term and long-term steps to address port congestion, improving
collaboration, and exploring policies to remove obstacles and improve the movement of goods.
On Wednesday, October 20, Governor Newsom signed Executive Order N-19-21 formalizing efforts
already underway to address supply chain shortfalls. The Executive Order directs that within 30 days, the
Department of Transportation and the California State Transportation Agency, in collaboration with
industry stakeholders, shall evaluate and identify priority freight routes to be considered for a temporary
exemption to current gross vehicle weight limits; GO-Biz shall identify non-state sites, including private,
locally owned, and federally owned parcels, that could be available to address short-term storage needs;
the Department of General Services shall complete its review of state owned property in proximity to
impacted ports that may be made available to address short-term storage needs by December 15, 2021 and
shall collaborate with other state agencies to expedite leasing for the purpose of storing cargo containers
on state-owned parcels; and the California Labor and Workforce Development Agency shall identify
potential high road training partnerships to increase education, career technical education, skilled job
training, and workforce development opportunities for port workers and other workers across the supply
chain.
Additionally, the Executive Order directs the California Labor and Workforce Development Agency to
announce the membership of the industry panel established by AB 639 (Cervantes, 2020) by December
31, 2021 and convene the panel for its first meeting by March 1, 2022. AB 639 requires that the Labor
and Workforce Development Agency and California Workforce Investment Board oversee a stakeholder
process to develop recommendations on how to address automation at the Port of Los Angeles and the
Port of Long Beach.
Attachment B
1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
Emerging Projects Agreement: Last week, the U.S. Department of Transportation and Governor Newsom
announced a federal-state partnership, dubbed the Emerging Projects Agreement, to identify funding for
infrastructure projects at California ports. There is currently an imbalance in the investments in ports in
California versus ports on the east coast that receive eleven times more funding from the federal
government. $5 billion in loans will be issued to the Long Beach and Los Angeles port authorities in part
through two Department of Transportation credit assistance programs: the Transportation Infrastructure
Finance and Innovation Act and Railroad Rehabilitation and Improvement Financing.
The loans are intended to expedite a network of projects including expanding rail capacity, developing
inland port facilities for increased warehouse storage, and highway upgrades. However, these are longer
term projects and will do little to alleviate the current backlog.
On October 20, President Biden announced an agreement with the Port of Los Angeles to increase
operations to 24 hours, seven days per week as a short-term solution. FedEx, Walmart, and UPS also
reportedly plan to increase operations to 24 hours. Long Beach officials have even suspended a portion of
the city’s municipal code limiting container stacking heights outside the port complex to immediately
increase storage capacity within our California ports.
The California Business Roundtable, along with a number of statewide business associations, requested
that an Extraordinary Session of the Legislature be called for the purpose of repealing, suspending, or
reforming state laws and regulations hindering expeditious service at California ports. A group of ten
Assembly Republicans, led by Kevin Kiley, echoed that request. Newsom's senior advisor and director of
GO-Biz said she'd received the letter and that there would be no state of emergency, however the
governor has yet to publicly address whether a special session will be called.
Housing Strike Force: This fall, Attorney General Rob Bonta announced the formation of a Housing
Strike Force made up of deputy attorneys general with expertise in housing and related matters to work
with state agencies and other partners in addressing the housing crisis and to enforce state laws aimed at
increasing housing supply and providing housing security. In part, this action came as a result of AB 215
(Chiu, Chapter 342, Statutes of 2021) which provides the Department of Housing and Community
Development and the Attorney General with additional enforcement authority for local agency violations
of housing laws.
Specifically, the Housing Strike Force will:
● Enforce state housing and development laws in the Attorney General’s independent capacity and
on behalf of the Department of Justice’s client agencies;
● Enforce tenant rights, mortgage servicing, and other consumer protection laws;
● Issue consumer alerts advising tenants and homeowners on their protections under state and
federal law;
● Issue guidance letters to local governments on state housing laws;
● Defend state housing and tenant protection laws from legal challenges; and
● Advocate with the state legislature, federal agencies, and other state agencies to advance a right
to housing.
As an Assemblymember, Bonta introduced ACA 10, which if passed and approved by California voters,
would have declared in the California Constitution that housing is a fundamental human right and is the
shared responsibility of both state and local governments. ACA 10 did not move forward, however, AB
Attachment B