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HomeMy WebLinkAboutStaff Report 2309-2063CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, January 22, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     13.Update regarding State and Federal Legislation and Approval of the Annual Legislative Guidelines and Legislative Platform as Recommended by the Policy & Service Committee. CEQA Status – Not a Project Supplemental Report added City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: January 22, 2024 Report #:2309-2063 TITLE Update regarding State and Federal Legislation and Approval of the Annual Legislative Guidelines and Legislative Platform as Recommended by the Policy & Service Committee. CEQA Status – Not a Project RECOMMENDATION The Policy & Services Committee recommends that the City Council approve the 2024 Federal and State Legislative Guidelines / Legislative Platform (Attachment A) and accept a legislative update. BACKGROUND The Policy and Services Committee heard this item at the December 12, 2023 Committee meeting and voted to advance it to the full City Council for adoption. Information about the upcoming months in Sacramento and Washington, D.C. will be provided by Townsend Public Affairs as a supplemental memo and will include information about the Governor’s budget (budget release is January 10, 2024). ANALYSIS As part of the City’s state and federal legislative advocacy program, staff and the City’s contracted federal and state advocates work to identify and analyze potentially impactful legislation and communicate the City’s public advocacy positions to legislators. The program is guided by the Advocacy Process Manual, last approved by City Council on January 13, 2020 (CMR #10772). In addition to the Manual, the City maintains a City Council-approved set of legislative guidelines that provide additional City Council policy direction to staff and the City’s state and federal legislative advocates. The legislative guidelines are used by staff in consultation with the Mayor to respond to bills and other issues that emerge throughout the year. They allow for efficiency in the fast-paced legislative environment. The 2024 draft guidelines were first discussed at the Legislative Matters Ad Hoc Committee in November 2023 and then at the December 12, 2023 Policy & Services Committee. The 2023 adopted guidelines were discussed in October 2022 at Policy and Services Committee and subsequently at City Council during discussions of the contract for federal and state advocacy. Legislative Guidelines The Legislative Guidelines enhance and add content to the City Council’s overarching priorities; they do not supplant them. The guidelines provide direction to staff and the City’s legislative advocates on issues that are both (a) important to the City Council, and (b) likely to become a legislative issue in 2024. The guidelines are not rank ordered and are intentionally reasonably broad rather than specifically narrow to allow for a flexible and quick response. Further, the guidelines are not proactive instructions; they act as a means by which staff and advocates can respond to federal and state government action, without returning to the City Council each time a bill is introduced or amended. The draft 2024 guidelines are a compilation of the current, approved guidelines, City Council’s 2023 priorities, and policy issues staff and the City’s legislative advocates have heard interest in. Attachment A is an updated Legislative Guidelines with feedback from the City Council Legislative Matters Ad Hoc Committee and the Policy and Services Committee. The recommendation from the Policy and Services Committee is for the full City Council to discuss and adopt the guidelines. Legislative Update The City’s legislative advocates in Sacramento and Washington, D.C. (Townsend Public Affairs) will be present to provide advocacy updates and information about the coming weeks and months in Sacramento and D.C. if there are questions from the Committee. FISCAL/RESOURCE IMPACT There is no additional funding needed for this report. The City Council budgets annually for the legislative advocacy services and these efforts are led by staff in the City Manager’s Office with stakeholder support across departments on key issues. ENVIRONMENTAL REVIEW The City’s legislative advocacy activities are not a project under section 15378(b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment). ATTACHMENTS Attachment A: Draft 2024 Legislative Guidelines APPROVED BY: Ed Shikada, City Manager The City of Palo Alto’s 20243 Federal and State Legislative Guidelines Page 1 of 5 These Guidelines reflect and activate the City Council’s priorities; they do not supplant them. They work to guide staff and the City’s legislative advocates on issues that are important to the City Council, and likely to become a legislative issue. These Guidelines are not rank- ordered and are meant to allow for a flexible and quick response by staff and advocates, without the need to return to the City Council to seek guidance. The Guidelines work in conjunction with the City Council-approved Advocacy Process Manual and the City Council action to do “Strategic Weighing in on Issues of Interest” (June 22, 2021 CMR 12344; Minutes). The City Council’s annual priorities are also guidance for the City’s legislative platform. The below Foundational Principles represent the ideals that form the core of the City’s policy agenda. The Legislative Guidelines all rise from and strengthen four foundational principles: 1.Promote Local Fiscal Sustainability: Support measures that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximum control over local government budgeting. Also Pprotect local revenue sources and prevent unfunded mandates. 2.Support Funding Opportunities: Protect, seek, and increase funding for programs, projects, and services; pursue grants. Seek opportunities that allow the City to compete for regional, state and federal funding. Support funding for programs including, but not limited to, economic development, infrastructure investment, housing, transportation projects (such as road improvements, rail grade separations, bicycle and pedestrian safety, multi-modal transportation systems and transit- oriented development), air quality, water quality and local water reliability, parks and recreation, historic preservation, natural resources, hazard mitigation, public safety and public health. 3.Preserve Local Control: Preserve and protect the City’s powers, duties, and discretion to enact and engage in local processes and policy making concerning local affairs and oppose efforts and legislation from state and regional bodies that preempt local authority. Advocate for longer lead times for implementation of new legislation that impacts Palo Alto. 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: Support policies and funding that enrich the quality of life for the Palo Alto community with services that provide for a safe, fulfilling, and vibrant life. Support policies that promote equity. The City of Palo Alto’s 20243 Federal and State Legislative Guidelines Page 2 of 5 The Legislative Guidelines create the framework for organizing the City’s policy interests, while guiding staff and contracted lobbyists in their advocacy efforts on behalf of the City. The items below provide direction for the City’s efforts when addressing reasonable government actions. Transportation The City supports government action that: • Deters single occupancy drivers and alleviates local traffic congestion • Supports local and regional public transportation • Regulates technology that diverts traffic into residential neighborhoods •Provides funding for rail grade separations, rail efficiency improvements, and other means of reducing the local impacts of regional transportation systems • Streamlines funding between the state, federal, and local governments that help reduce the amount of time and resources it takes to fund and complete transportation projects. • Sustains local, regional, and state funding sources for the development and maintenance of transportation and does not condition receipt of funds on non-transportation related factors •Supports expansion and/or maintaining of public transit options throughout Palo Alto, especially funding for transit •Supports state legislation that maximizes local control related to land use requirements near transit (especially if it impacts the City’s approach to planning for complete communities) Climate and Environment The City supports government action that: •Reduces GHG emissions and supports progress toward GHG reduction and carbon neutrality goals • Reduces airplane noise, health impacts, and/or airplane emissions •Promotes residential, commercial, and vehicle electrification programs •Promotes workforce development to provide increased workforce needed for electrification and grid modernization • Promotes the use of renewable resources, water conservation, and the flexible use of existing resources The City of Palo Alto’s 20243 Federal and State Legislative Guidelines Page 3 of 5 •Continues sSupports for a statewide ban on polystyrene containers and packaging materials • Provides opportunities for staff, in partnership to work with the San Francisquito Creek Joint Powers Authority and other regional stakeholders, to advance in efforts to improve the creek’s watershed and floodplain (especially related to local bridges) • Supports efforts to protect local communities from sea level rise and other impacts of climate change • Supports proper disposal responsible processing of recyclables once removed from Palo Alto and other communities, including promoting processing facilities and recyclables markets within the United States •Strengthen and modernize the State and Local electric grids •Supports the protection of our natural environment, including open space, trees/tree canopy, and biodiversity Financial The City supports government action that: • Supports the long-term stability of CalPERS and the ability of local governments to mitigate and manage with flexibility its pension obligations • Protects the funding sources and levels of City services for the sustainable delivery of City services • Provides for COVID-19 related expenses and revenue losses •Supports the continued deductibility of tax-exempt municipal bonds and the restoration of Advance Refunding of Tax-Exempt Municipal Bonds • Supports the lowering or maintaining of voter thresholds for local revenue measures • Supports maximum flexibility for local government in contracting and contract negotiations • Supports efforts to attract and retain resources for current and future smaller businesses in Palo Alto • Preserves local discretion in the assessment, collection, and usage of development fees Governance, Transparency, and Human ResourcesPublic Employment The City supports government action that: •Preserves local government’s ability to manage its own employment issues, including, but not limited to hiring, evaluating, disciplining, and/or terminating and negotiating collective bargaining agreements with employees’ representatives • Supports reasonable regulatory efforts surrounding policies regarding cybersecurity, drones, shared mobility services, returning to Obama-era net neutrality regulations, and smart city initiatives The City of Palo Alto’s 20243 Federal and State Legislative Guidelines Page 4 of 5 • Protects individual privacy and allows the City to safeguard customer information • Maintain existing records collection and retention requirements •Promote teleconferencing flexibilities under the Ralph M. Brown Act • Allows the City to support the collaborative work of regional partners, trade associations, other local governments and organizations, and Joint Powers Authorities • Provides for the equal treatment of all individuals Technology The City supports government action that: • Supports reasonable regulatory efforts surrounding policies regarding cybersecurity, drones, shared mobility services, returning to Obama-era net neutrality regulations, and smart city initiatives Housing The City supports government action that: • Supports reasonable housing policies that recognize local autonomy to maintain the local public process and preserve local government’s ability to determine land use policies and development standards • Provides funding for (a) affordable housing, (b) homelessness, and (c) infrastructure (such as parks, utilities, roads, and transit) required to support the increased housing production and keep pace with local development goals • Promotes the development and enhancement of safe and affordable housing and accessible housing within the City for all economic segments of the population • Promotes funding and tax incentives for the identification, acquisition, maintenance, adaptive reuse, and restoration of historic sites and vacant structures • Fosters reasonable ratios between jobs and housing •Supports the development and implementation of efficient and environmentally sustainable land use and building practices •Supports the provision of greater lead times (extended effective dates of state legislation) for local jurisdictions to implement state legislation which offers Palo Alto the opportunity to apply new land use and housing requirements within the local context PolicePublic Safety The City supports government action that: •Supports efforts which seek to modify policing services, including but not limited to alternative public safety models and funding to address community mental health issues, expansion of requirements regarding police data and rules regarding prior The City of Palo Alto’s 20243 Federal and State Legislative Guidelines Page 5 of 5 employment information transparency, and expansion of data and communications including radio encryption. •Provides for greater public safety support resources especially related to organized retail theft operations •Reduces weapons-related violence via the enactment of common-sense firearm reforms •Enhances fire and emergency training and response capabilities. Mitigate fire safety risks. Advocate for funding and policy to mitigate wildfire risks and funding for fire services in general as well as funding for emergency services. •Updates, implements, and refines processes, services, and programs affecting the City. This includes, but is not limited to, public safety reform efforts and streamlining reporting mandates •Support legislation that would address ongoing safety concerns and help prevent acts of violence motivated by hate, including improving data collection and reporting Other The City supports government action that: • Updates, implements, and refines processes, services, and programs affecting the City. This includes, but is not limited to, public safety reform efforts and streamlining reporting mandates • Protects individual privacy and allows the City to safeguard customer information • Provides for the equal treatment of all individuals • Allows the City to support the collaborative work of regional partners, trade associations, other local governments and organizations, and Joint Powers Authorities City Council Supplemental Report From: Ed Shikada, City Manager Meeting Date: January 22, 2024 Item Number: 13 Report #:2401-2525 TITLE Item 13 Supplemental Report: Update, Discussion, and Potential Direction regarding State and Federal Legislation RECOMMENDATION Townsend Public Affairs compiled the Attachment A memo including an overview of the new Legislative Session to date as well as what is to come. This memo is included as a supplemental memo in order to include an overview of the Governor’s Budget which was released January 10th. ATTACHMENTS Attachment A: Townsend Public Affairs (TPA) State and Federal Updates January Memo APPROVED BY: Ed Shikada, City Manager 1 M E M O R A N D U M To: The Honorable Greer Stone and Members of the Palo Alto City Council CC: Ed Shikada, City Manager Chantal Cotton Gaines, Deputy City Manager From: Townsend Public Affairs Christopher Townsend, President Niccolo De Luca, Vice President Ben Goldeen, Federal Advocacy Manager Alex Gibbs, Grants Manager Carlin Shelby, Associate Date: January 18, 2024 Subject: January State and Federal Legislative Updates Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State and Federal efforts, highlight the current status of the legislative process, and identify various pieces of legislation that may be of interest to the City. State Legislative Update As of January 3, the State Legislature has reconvened for the second year of the 2023-24 legislative session following the interim recess. This period is particularly crucial for bills marked as "2-Year Bills" from the previous session, as authors have until the end of the month to push for their progression. Top-of-mind issues for members encompass housing affordability, climate change initiatives, disaster preparedness, and education reforms. During the initial weeks, over 100 new measures have been introduced, showcasing comprehensive policy proposals through press releases, spot bills, and intent bills acting as placeholders for future amendments. Prominent legislative trends include the governance of artificial intelligence deployment, Proposition 47 reform and theft prevention, and firearm safety. The influx of new bills will persist until the February 18 deadline for bill introduction, marking the final opportunity for new bill vehicles. Throughout the session, members retain the flexibility to amend or perform a "gut and amend" strategy, transforming existing bills into entirely new policies, provided they adhere to the 72-hour in-print rule. Anticipations suggest that the Legislature will align with recent trends, introducing close to 2,000 new proposals in the ongoing session. Priority Legislation for the City of Palo Alto The following measures provide a snapshot of newly introduced bills that align with City priorities. Please note this list is not comprehensive nor does it provide an overview of the universe of new bills for the 2024 legislative session, because the majority of new bill introductions will happen 2 closer to the February 18 deadline. Additionally, some of the measures included are in “spot” or “intent” form, meaning they lack substantive language indicating specific provisions for their implementation. TPA will continue to update the Council on new and amended measures as they are introduced. BILL SUMMARY/STATUS CITY IMPACT POSITION/ RECOMMENDATION AB 1779 (Irwin) This bill would no longer limit the jurisdictional rules for theft crimes to criminal actions brought by the Attorney General, which would allow for the cross- jurisdictional prosecution of theft crimes that occur in more than one location. Status: Pending Policy Committee Referral The City’s legislative guidelines support additional tools for law enforcement to prevent and prosecute theft crimes. This bill would allow for additional enforcement tools to hold people accountable for prolonged, multi-jurisdictional theft crimes. Recommendation: Monitor AB 1820 (Schiavo) Authorizes a developer that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate, to which a local government has up to 10 business days to comply. Status: Pending Policy Committee Referral The City’s legislative guidelines advocate for the preservation of local discretion in the assessment, collection, and usage of development fees. This measure could lead to onerous reporting requirements that could burden staff and interfere with local planning activities. Recommendation: Monitor SB 925 (Wiener) States the intent of the Legislature to enact subsequent legislation to authorize the Metropolitan Transportation Commission (MTC) to propose a revenue measure to the voters in its jurisdiction to fund the operation, expansion, and transformation of the San Francisco Bay area’s public transportation system, as well as other transportation improvements. Status: Pending Substantive Language and Policy Committee Referral The City and residents are serviced by the MTC public transit network. Anew revenue measure to fund this transportation network could impact City residents and the quality of public transit options; it could also have financial implications for all Bay Area residents. . Recommendation: Monitor SB 926 (Wahab) Requires the State Transportation Agency to develop a plan to consolidate all transit agencies that are located within the geographic jurisdiction of the Metropolitan Transportation Commission. Status: Pending Substantive Language and Policy Committee Referral The City and residents are serviced by the MTC public transit network; the consolidation of all transit agencies would impact City residents and could potentially change the quality of public transit options. Recommendation: Monitor State Budget Update On Wednesday, January 10, Governor Newsom adhered to constitutional deadlines by unveiling his preliminary 2024-25 State Budget proposal, revealing a projected budget shortfall of approximately $37.9 billion. Governor Newsom attributed this deficit to two primary factors: a substantial stock market decline in 2022 impacting revenues and an unprecedented delay in critical income tax collections. 3 Notably, the Governor's shortfall estimate contrasts significantly with the Legislative Analyst’s Office (LAO) projection of a $68 billion deficit in December. The LAO, responsible for an independent assessment of California's budget, often diverges from the Department of Finance in projections, with the $30 billion difference hinging on assumptions about revenues and expenditures. To address the anticipated deficit, Governor Newsom's budget proposal employs several strategies. These include drawing $13.1 billion from state reserve accounts and employing deferrals, borrowing, clawbacks, and fund shifts to cover the remaining $24.8 billion gap. Across various accounts, the proposed budget maintains stability in funding allocations or implements incremental reductions without introducing new funding. At this time, there have been no proposed reductions to programs Palo Alto is participating in. While the budget proposal outlines spending reductions and deferrals, it is crucial to recognize that the budget situation will evolve over the next few months before enactment. The Governor's proposal will undergo updates in May, reflecting changes in tax returns, inflationary pressures, and federal monetary policy, potentially leading to additional spending cuts or the restoration of spending programs. Looking ahead, late January sees the initiation of the Legislature’s budget subcommittees hearings, tasked with reviewing and recommending changes to the proposed budget. Following these hearings and negotiations between the Governor and the Legislature, a revised budget must be presented by May 14, aligned with updated revenue estimates. The Legislature's deadline to pass a balanced budget is June 15, and the Governor must approve the final 2024- 25 spending plan before the new budget year commences on July 1. Despite the predicted deficit, TPA advocates are working with City staff to identify priority projects to present the City’s legislative delegation, should district request funding opportunities arise. FEDERAL UPDATES Congressionally Directed Spending Submittal The City/TPA team worked in partnership to draft, fine tune, and submit a congressionally directed spending request for infrastructure funding to help redevelop the Buena Vista Mobile Home Park. The Park, a locally significant affordable housing resource, is in desperate need of sustainable redevelopment, including 100% electrification. An award would assist the predominantly Latinx and very low-income residents who call it home. This application was in partnership with the Santa Clara County Housing Authority. Congresswoman Eshoo put forward the project in the amount of $850,000. The request was included in the Transportation, Housing and Urban Development (THUD) appropriations bill, which is pending approval via the passage of the comprehensive federal appropriations package. TPA advocates are in the process of meeting with City staff to identify funding priorities for the upcoming FY 2025 congressional spending requests process. Federal Appropriations Updates During the week of January 8, congressional leaders announced they reached an agreement on top-line funding levels for Fiscal Year 2024 appropriations, which projected optimism that 4 Congress could fully fund the government for an entire fiscal year. However, Capitol Hill sources have indicated that Congress is likely to consider and vote on another continuing resolution (CR), which will extend current funding levels until March 1 and March 8. This will allow negotiators more time to finish and vote on appropriations bills, which in turn will impact the final date for the passage of fiscal year 2024 congressional spending requests into law. The agreement set overall spending at $1.6 trillion, with $886 billion for defense, and the remaining $776 billion for all other discretionary government agencies and programs. To achieve the agreement, Senate Majority Leader Chuck Schumer compromised by amending previous agreements made through the Fiscal Responsibility Act negotiations to raise the debt ceiling in May 2023. Speaker Johnson published a letter on January 7 applauding that he secured “hard- fought concessions” to secure votes for passage. The concessions cut $16 billion in IRS and COVID relief funds. These cuts were scheduled to be made in next year’s spending package but were expedited into FY24 under the agreement. This still is not enough for House Freedom Caucus members to release pressure on Speaker Johnson. The focus of Congress has now shifted to passing a short-term clean resolution into early March to ensure the government does not shutdown. Majority Leader Schumer filed for a cloture vote on Thursday to begin the process of extension. Four of the bills are set to expire on January 19, with the remaining eight expiring on February 2. If the Schumer-Johnson agreement holds, leadership will need to finalize the twelve annual appropriations bills utilizing the top line spending amount.