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HomeMy WebLinkAboutStaff Report 14787 City of Palo Alto (ID # 14787) City Council Staff Report Meeting Date: 10/3/2022 Report Type: Action Items City of Palo Alto Page 1 Title: Adoption of Support or Oppose Positions on State and Local Measures Presented to Palo Alto Voters on the November 8, 2022 Ballot From: City Manager Lead Department: City Clerk Recommendation Staff recommends that Council review the November 8, 2022 state and local ballot measures and provide staff direction on any support or oppose positions as relevant to Palo Alto. Background The Secretary of State has qualified 7 measures for the November 2022 statewide ballot. The City of Palo Alto has two measures on the ballot. This year, there are no other measures (such as County, PAUSD, VTA or Valley Water measures) that will be presented to Palo Alto voters. Below, staff provides a brief description of the measures, as well as the potential impact on cities, if any. Staff also recommends positions for Council to consider taking on some measures, using the Council-approved 2022 legislative guidelines (guidelines) as a basis for the recommendations. The City Council legislative guidelines encourage the City to strategically weigh in on issues of interest to the City. These guidelines enhance and add content to the City Council’s overarching priorities; they do not supplant them. The below Foundational Principles represent the ideals that form the core of the City’s policy agenda. The 2022 Adopted legislative guidelines all rise from and strengthen four foundational principles: 1. Protect local revenue sources and prevent unfunded mandates. 2. Protect, seek, and increase funding for programs, projects, and services; pursue grants. 3. Protect and increase local government discretion. Oppose items that preempt or reduce the authority or ability of local government to determine how to effectively operate local programs, services, activities, and governance. 4. Protect the health and safety of the community. City of Palo Alto Page 2 On September 14, 2020, the City Council reviewed the ballot measures on the November 2020 ballot to decide whether to support, oppose, or take no position. That report, CMR #11550 and the Minutes are both online. Discussion A listing of all State and Local (County of Santa Clara & Santa Clara County Cities) Ballot measures under consideration for the November 8, 2022 general election are listed below. There are no proposed ballot measures for the Palo Alto Unified School District or any other local agencies or authorities that would impact the City of Palo Alto. SUMMARIES OF STATE BALLOT MEASURES THAT COULD IMPACT PALO ALTO Proposition 1 Constitutional Right to Reproductive Freedom. Legislative Constitutional Amendment. (PDF) Proposition 1 would amend the California Constitution to establish a right to reproductive freedom, which is defined as a right to an abortion and to choose or refuse contraceptives. The amendment states, "The state shall not deny or interfere with an individual’s reproductive freedom in their most intimate decisions, which includes their fundamental right to choose to have an abortion and their fundamental right to choose or refuse contraceptives." Staff Recommended Position: Support. Consistent with the Colleagues Memo and adopted Resolution 10059 that supports women’s reproductive rights. Applicable legislative guidelines include: • Protect the health and safety of the community. • Provides for the equal treatment of all individuals Proposition 26 Allows In-Person Roulette, Dice Games, Sports Wagering on Tribal Lands. Initiative Constitutional Amendment and Statute. (PDF) Proposition 26 would legalize sports betting at American Indian gaming casinos and licensed racetracks in California.[1] The ballot measure would define sports betting as wagering on the results of professional, college, or amateur sport and athletic events, with the exception of high school sports and events featuring a California college team. Individuals would need to be 21 years of age to engage in legal sports betting.[1] The ballot measure would enact a tax of 10 percent on profits derived from sports betting at racetracks. The state government would be required to distribute the revenue as follows: (a) 15 percent to the California City of Palo Alto Page 3 Department of Health for researching, developing, and implementing programs for problem gambling prevention and mental health and providing grants to local governments to address problem gambling and mental health; (b) 15 percent to the Bureau of Gambling Control for enforcing and implementing sports wagering and other forms of gaming within the state; and (c) 70 percent to the General Fund.[1] Staff Recommended Position: No recommended position. No direct impact and there is no Council- approved guideline in place regarding gambling on Tribal lands. Proposition 27 Allows Online and Mobile Sports Wagering Outside Tribal Lands. Initiative Constitutional Amendment and Statute. (PDF) Proposition 27 proposes a constitutional amendment and statute to authorize a gaming tribe, an online sports betting platform with an operating agreement with a gaming tribe, or a qualified gaming company with a market access agreement with a gaming tribe may operate online sports betting for individuals 21 years of age or older in the state but outside of Indian lands. The amendment would prohibit online sports betting on youth sports. The proposed law would create the Division of Online Sports Betting Control within the Department of Justice. The initiative would give the division authority to regulate the online sports betting industry and investigate illegal sports betting activities. The amendment would take effect on January 1, 2023.[1] The proposed law would establish the California Online Sports Betting Trust Fund. The revenue from licensing fees, renewals, and the sports wagering tax would be deposited into the fund. After deducting regulatory costs, 85% of the fund's revenues would be allocated to California Solutions to Homelessness and Mental Health Support Account for permanent and interim housing and 15% of revenues to the Tribal Economic Development Account, which would be established by the initiative to provide funds to Indian tribes for expanding tribal government, public health, education, infrastructure, and economic development.[1] Currently, mobile and in-person sports betting is illegal in California. Staff Recommended Position: No recommended position. No direct impact and there is no Council- approved guideline in place regarding gambling. City of Palo Alto Page 4 Proposition 28 Provides Additional Funding for Arts and Music Education in Public Schools. Initiative Statute. (PDF) Proposition 28 would require a minimum source of annual funding for K-12 public schools, including charter schools, to fund arts education programs. The annual minimum amount established by the law would be equal to, at minimum, 1% of the total state and local revenues that local education agencies received under Proposition 98 (1988) during the prior fiscal year. The minimum under the proposed law would be in addition to the funding required by Proposition 98. According to the Legislative Analyst's Office, the ballot initiative would likely result in increased spending of $800 million to $1 billion each fiscal year.[2] Staff Recommended Position: No recommended position. This measure does not directly impact the City of Palo Alto organization and there is no direct guideline related to arts funding in local schools. Proposition 29 Requires On-Site Licensed Medical Professional at Kidney Dialysis Clinics and Establishes Other State Requirements. Initiative Statute. (PDF) Proposition 29 would enact staffing requirements, reporting requirements, ownership disclosure, and closing requirements for chronic dialysis clinics, including:[1] • requiring clinics to have at least one physician, nurse practitioner, or physician assistant – with at least six months of experience with end-stage renal disease care – onsite during patient treatments; • requiring clinics to report dialysis-related infections to the California Department of Public Health (CDPH); • requiring clinics to provide patients with a list of physicians with an ownership interest of 5% or more in the clinic; • requiring clinics to provide the CDPH with a list of persons with ownership interest of 5% or more in the clinic; and • requiring clinics to obtain the CDPH’s written consent before closing or substantially reducing services to patients. The ballot initiative would also prohibit clinics from refusing to care for a patient based on the patient’s form of payment, whether the patient is an individual payer, the patient’s health insurer, Medi-Cal, Medicaid, or Medicare.[1] City of Palo Alto Page 5 Staff Recommended Position: No recommended position. While this measure could impact potential individual voters, the measure does not directly impact the City operationally or financially. There are no guidelines regarding dialysis clinics. Proposition 30 Provides Funding for Programs to Reduce Air Pollution and Prevent Wildfires by Increasing Tax on Personal Income Over $2 Million. Initiative Statute. (PDF) Proposition 30 would increase the income tax by an additional 1.75% on income above $2 million for individuals. Currently, income above $2 million for individuals is taxed at a rate of 13.3% in California. The additional tax would take effect on January 1, 2023. The initiative provides that the tax would end on the earliest of the following dates:[1] • January 1, 2043, or • January 1 after three consecutive calendar years after January 1, 2030, of statewide emissions reduced by 80% of 1990 levels. Revenue from the increased income tax would be appropriated into the Clean Cars and Clean Air Trust Fund (CCCATF). It would then be allocated to the following three sub-funds: Zero-Emission Vehicle Infrastructure Investment Plan Sub-Fund (35% of revenue), Zero-Emission Vehicle and Clean Mobility Sub-Fund (45% of revenue), and Wildfire Green House Gas Emissions Reduction Sub-Fund (20% of revenue). The sub-funds would fund zero-emission vehicles, charging stations, and infrastructure, as well as hiring and training firefighters.[1] Staff Recommended Position: Support. The City’s legislative guidelines state that the City supports governmental action that will reduce greenhouse gas emissions and promotes vehicle electrification and other benefits that will support local communities from the effects of climate change. Proposition 31 Referendum On 2020 Law That Would Prohibit the Retail Sale of Certain Flavored Tobacco Products. (PDF) This proposition would affect In-person stores and vending machines in terms of what they could or could not sell related to most flavored tobacco City of Palo Alto Page 6 products and tobacco product flavor enhancers. It is a referendum on SB 793. If Proposition 31 passes, then SB 793 would go into effect. If it does not pass, then SB 793 would not go into effect. SB 793 is described in more detail here: Main Provisions of Proposition 31 (SB 793) Bans Most Sales of Flavored Tobacco Products and Tobacco Product Flavor Enhancers. Proposition 31 (SB 793) prohibits in-person stores and vending machines from selling most flavored tobacco products or tobacco product flavor enhancers. The proposition does not ban shisha (hookah) tobacco sold and used at the store, certain cigars, or loose-leaf tobacco. Defines Flavored Tobacco Products. Proposition 31 defines flavored tobacco products as those that have a flavor, apart from the regular tobacco flavor. For example, the flavor could include fruit, mint, menthol, honey, chocolate, or vanilla. The proposition defines a tobacco product flavor enhancer as a product that creates a flavor when added to a tobacco product. Charges a $250 Penalty for Each Violation. Proposition 31 charges a $250 penalty against stores and vending machine owners for each violation of the requirements described previously.1 Staff Recommended Position: Support. The City supports government actions that protect the health and safety of the community. This protects the health of a vulnerable population of our community, the youth. This Proposition aligns with previous City Council action prohibiting the sale of flavored tobacco products in Palo Alto (Municipal Code §4.64.030(i)). SUMMARIES OF LOCAL MEASURES RELEVANT TO PALO ALTO Each of the below is a tax measure and requires a majority vote to pass. 1 https://lao.ca.gov/BallotAnalysis/Proposition?number=31&year=2022 City of Palo Alto Page 7 MEASURE K City of Palo Alto Shall the measure to raise funds for public safety, affordable housing, rail crossing safety, homeless services, and general city services, by levying a tax on businesses in the City of Palo Alto at a monthly rate of 7.5 cents per square foot occupied by a business, up to $500,000 per business, with annual 2.5% adjustments for inflation and exemptions for grocery stores and businesses under 10,000 square feet, raising approximately $9.6 million annually for 35 years, be adopted? Staff Recommended Position: Support. This measure aligns with City fiscal sustainability goals. MEASURE L City of Palo Alto Shall the measure affirming the City of Palo Alto’s existing and decades-old practice of annually transferring no more than 18% of the gross revenues from the City’s natural gas utility (generated by the City’s retail natural gas rates) to its general fund to support general city services such as roads; parks; libraries; climate change reduction; police, fire, emergency medical, and 9-1-1 response; providing approximately $7 million annually in existing revenues until ended by voters, be adopted? Staff Recommended Position: Support. This measure aligns with City fiscal sustainability goals. Environmental Review This report is not a project for the purposes of the California Environmental Quality Act; an environmental review is not required. Attachments: Attachment A: 2022 Legislative Guidelines Attachments: • 2022 Ballot Measures State Local Jurisdiction Proposition/Measure Title State Proposition 1 Constitutional Right to Reproductive Freedom. Legislative Constitutional Amendment. (PDF) State Proposition 26 Allows In-Person Roulette, Dice Games, Sports Wagering on Tribal Lands. Initiative Constitutional Amendment and Statute. (PDF) State Proposition 27 Allows Online and Mobile Sports Wagering Outside Tribal Lands. Initiative Constitutional Amendment and Statute. (PDF) State Proposition 28 Provides Additional Funding for Arts and Music Education in Public Schools. Initiative Statute. (PDF) State Proposition 29 Requires On-Site Licensed Medical Professional at Kidney Dialysis Clinics and Establishes Other State Requirements. Initiative Statute. (PDF) State Proposition 30 Provides Funding for Programs to Reduce Air Pollution and Prevent Wildfires by Increasing Tax on Personal Income Over $2 Million. Initiative Statute. (PDF) State Proposition 31 Referendum On 2020 Law That Would Prohibit the Retail Sale of Certain Flavored Tobacco Products. (PDF) City of Morgan Hill MEASURE A Shall the ordinance,changing zoning regulations throughout the City of Morgan Hill to prohibit buildings with characteristics that could be used for new storage and distribution uses in all areas of the City be adopted? City of Morgan Hill MEASURE B Shall the measure,amending the City's General Plan to require voter approval of any future Monterey Road lane reduction be adopted? City of Saratoga MEASURE C Shall the City of Saratoga adopt an ordinance establishing term limits for members of the Saratoga City Council,limiting individuals to serving two terms and specifying the duration of various types of partial terms that are considered a term for the purposes of term limits? City of Gilroy MEASURE D Construction Contract Procurement and Public Noticing Modernization. Shall the City of Gilroy Charter be amended to:Modify the bidding threshold from $35,000 to the amount authorized by California Public Contract Code Section 22032; Establish authority to procure for Design- Build and Best Value contracts; Allow modernization of public noticing? Patterson Joint Unified School District MEASURE E To expand vocational career and technical education facilities;increase labs and training sites to prepare students for college and future jobs;and build new classrooms to relieve overcrowding;shall Patterson Joint Unified School District’s bond authorizing $74 million be approved with legal rates, projected levies below $57/$100,000 of assessed valuation (generating $3.9 million/year while bonds are outstanding),annual audits, independent oversight and all funds spent locally with no money taken by the State and spent elsewhere? City of Milpitas MEASURE F Shall an ordinance be adopted amending the Milpitas Municipal Code to shorten Councilmember terms limits by establishing for both Councilmembers and Mayor,effective with the November 8,2022 General Municipal Election,a ten consecutive year limit on combined Mayoral and City Councilmember service,with a six year limit on Mayoral service, followed by a two-year "cooling off”period,during which a person may not serve as Mayor or a Councilmember? City of Santa Clara MEASURE G City of Santa Clara No Tax Increase/Services Protection Measure. To protect essential services without raising taxes,such as 9-1-1 response; police patrols,fire protection;street/storm drain repair,and maintaining reliable local utility service; shall Section 1320 of the Charter continuing the annual budget transfer of funds from City utilities to the general fund at 5% of gross receipts until ended by voters,generating approximately $30,000,000 annually,with independent audits,all funds local,be reaffirmed/adopted? City of Santa Clara MEASURE H CITY OF SANTA CLARA BUSINESS LICENSE UPDATE/TAX EQUITY MEASURE To protect Santa Clara's financial stability and maintain essential services such as 911 emergency/public safety/crime reduction services, safe/clean public areas,pothole repair,parks/libraries,shall an ordinance to increase Santa Clara's 1992 business license tax on businesses to $45 per employee and on landlords to $15 per rental unit,generating approximately $6,000,000 annually,until ended by voters,with independent financial audits, all funds staying local, be adopted? City of San Jose MEASURE I Shall the City Charter be amended to add the City's ethics and elections commission (Board of Fair Campaign and Political Practices)to the Charter; remove requirements that members of the Planning,Civil Service,and Salary Setting Commissions be electors and/or citizens;remove gender- specific language;and require the City Council to adopt equity values, standards, and assessments in making certain decisions? Town of Los Gatos MEASURE J Shall the measure to fund critical Town needs such as public safety by amending business license taxes,unchanged since 1991 while inflation increased 117%to increase flat taxes by 30%adjusted annually for inflation,Retailing gross receipts tax by 40%,and to add E-Commerce to the Manufacturing,Wholesaling,and Jobbing gross receipts tax schedule and increase that schedule by 120%,raising about $1,100,000 yearly for general fund purposes until ended by voters, be adopted? City of Palo Alto MEASURE K Shall the measure to raise funds for public safety,affordable housing,rail crossing safety,homeless services,and general city services,by levying a tax on businesses in the City of Palo Alto at a monthly rate of 7.5 cents per square foot occupied by a business,up to $500,000 per business,with annual 2.5%adjustments for inflation and exemptions for grocery stores and businesses under 10,000 square feet,raising approximately $9.6 million annually for 35 years, be adopted? City of Palo Alto MEASURE L Shall the measure affirming the City of Palo Alto’s existing and decades-old practice of annually transferring no more than 18%of the gross revenues from the City’s natural gas utility (generated by the City’s retail natural gas rates)to its general fund to support general city services such as roads; parks;libraries;climate change reduction;police,fire,emergency medical, and 9-1-1 response;providing approximately $7 million annually in existing revenues until ended by voters, be adopted? Loma Prieta Joint Union School District MEASURE M To provide Loma Prieta neighborhood elementary/middle school students with stable funding for current instruction in math,science,reading, technology,arts and other core curriculum;retain/recruit highly qualified teachers,and continue to support classroom technology needs,shall Loma Prieta Joint Union Elementary School District's measure be approved establishing an annual parcel tax of $348 for 8 years,raising approximately $640,000 a year,with senior exemptions,independent citizen oversight,no funds for administrator's salaries, all funds staying in our local schools? East Side Union High School District MEASURE N With funds that cannot be taken by the State and spent elsewhere,shall East Side Union High School District's measure to expand career/technical education facilities,renovate science labs and upgrade technology at Andrew Hill,Calero,Evergreen Valley,Foothill,Independence,James Lick, Mt.Pleasant,Oak Grove,Piedmont Hills,Santa Teresa,Silver Creek,Verba Buena and W.C.Overfelt High Schools be adopted,authorizing $572 million in bonds with legal rates,projected levies below 3¢/$100 of assessed valuation ($35.7 million/year through 2050),annual audits,independent oversight and no increase in tax rates? Campbell Union High School District MEASURE O To continue funding academic/career-training programs in math,science, engineering,technology,arts and skilled trades that support college/career readiness;attract/retain qualified teachers/specialists;provide student mental health services and maintain manageable class sizes,shall the Campbell Union High School District measure renewing the expiring school parcel tax be adopted at the current rate of $85 per parcel (no increase), continuing $5,000,000 in annual school funding for 10 years,with senior exemptions and all money staying local? Oak Grove School District MEASURE P To modernize classrooms,increase student access to technology,upgrade science labs,make school safety and security improvements at all sites, improve support facilities,and provide a local match for State grants,shall Oak Grove School District's measure to issue $236,000,000 in bonds at legal rates,raising on average $13 million annually,with levies projected at 3 cents/$100 of assessed valuation,with citizen oversight,annual audits, no funds for administrator salaries, and all for local schools, be adopted? Union School District MEASURE R To improve school health and safety systems;fix deteriorating roofs, plumbing,and electrical;remove asbestos/lead pipes;and repair,acquire, construct classrooms,sites,science labs,facilities,equipment,and instructional technology that support student achievement in math, science,engineering,reading,arts and technology,shall Union School District's measure authorizing $128,000,000 in bonds at legal rates be adopted,levying 2¢/$100 assessed value ($7,000,000 annually)while bonds are outstanding,with independent citizen oversight and all money locally controlled? Alum Rock Union School District MEASURE S To improve science,technology,engineering,art,and math (STEAM) classrooms;increase student access to computers and modern classroom technology;build below-market teacher/staff rental housing;and improve student safety/campus security;shall Alum Rock Union Elementary School District's measure authorizing $71.5 million of bonds be adopted (reauthorizing bonds previously approved in November 2012),with legal rates,projected levies less than 2¢/$100 of assessed valuation (raising $4.4 million/year while bonds are outstanding),annual audits and independent citizen oversight? Campbell Union School District MEASURE T To repair and upgrade local elementary/middle schools,including science, technology,math classrooms/labs;instructional technology infrastructure; fixing leaky roofs,wiring,plumbing and fire/security systems;improved accessibility for students with disabilities;shall Campbell Union Elementary School District authorize $96,000,000 in bonds,levying up to $30/ $100,000 assess d value (projecting no increase in current tax rates), generating $5 million annually through term of bonds,with citizen oversight,audits,no funds for administrators,all funds for local elementary/ middle schools?