Attachment 1Presentation to Los Gatos
Town Council
March 7, 2017
Legislative Priorities and Update 2017
Agenda
1.League Priorities
2.Legislative Update
3.Peninsula Division Update
4.Questions?
League Goals
1.To protect local control and revenue
2.Build coalitions to support policy that will benefit
all cities
3.Organize media events and letter writing
campaigns
4.Provide insight and information to cities in the
region on policy and political dynamics that
influence legislation in Sacramento
Peninsula Division Structure
16 Regional Public Affairs Managers
North Bay & Redwood Empire
Sacramento Valley
Central Valley
South San Joaquin Valley
Peninsula
East Bay
Monterey Bay
Channel Counties
Los Angeles County
Orange County
Riverside County
Inland Empire & Desert Mountain
San Diego & Imperial County
League 2017 Strategic Goals
1.Increase Funding for Critical Transportation and
Water Infrastructure
2.Improve the Affordability of Workforce Housing
and Secure Additional Funds for Affordable
Housing
3.Develop Realistic Responses to the Homeless
Crisis
4.Address Public Safety Impacts of Reduced
Sentencing Laws, Protect Local Priorities in the
Implementation of AUMA, and Preserve City
Rights to Deliver Emergency Medical Services
California Legislature
•The legislature has introduced 731 bills and 81 resolutions
so far this year
•Federal Government actions unknown -- could leave a
huge hole in state budget
•Governor is NOT willing to spend general funds dollars on
housing, small amount on transportation
•The League is working on a package of transportation and
housing bills to preserve local control over land use and
housing policy
•The political climate in Sacramento is challenging for the
League: local jurisdictions are under pressure to build
more affordable housing
Transportation Policy
AB 1 (Frazier) and SB 1 (Beall)
Similar proposals which provide comprehensive
transportation reforms, modest increases to existing revenue
sources, and meaningful infrastructure investments
$73 billion unmet funding need for local streets and roads
$72 billion backlog to the State’s Highway System.
Funding need will grow by $20 billion in ten years for local
streets and roads alone
Address antiquated gas tax due to fuel efficiency
advancements
AB 1 and SB 1
Raise revenue over a variety of sources:
A 12 cent increase to the gas tax (SB 1 would ask to phase
this increase in over 3 years)
Ending the Board of Equalization’s “true up” process on
the unreliable price based excise tax on gas
A $38 increase to the vehicle registration fee
A $100 vehicle registration fee on zero emission vehicles
A 20 cent increase to the diesel excise tax;
$300 million from existing cap and trade funds
$500 million in vehicle weight fees phased in over five
years
Housing 2017
The League supports a package of legislation to increase housing
construction and provide financing for affordable housing, including:
Senate Bill 540 (Roth) –Workforce Housing Opportunity Zone proposal --
authorizes an enhanced up-front planning process that will reduce delays
and uncertainty when proposed projects are consistent with those plans.
Senate Bill 3 (Beall) – The Affordable Housing Bond Act of 2018 puts a $3
billion general obligation bond on the November 2018 ballot to fund
affordable housing and infill infrastructure projects
Senate Bill 2 (Atkins) – The Building Homes and Jobs Act generates
hundreds of millions of dollars each year for affordable housing,
emergency shelters and other housing needs via a $75 recording fee on
specified real estate documents. $300-500 million annually. Affordable
owner-occupied workforce housing (120% of median income).
2017 Housing Support Package Continued….
Assembly Constitutional Amendment 4 (Aguiar-Curry) –Reduces vote
thresholds for local measures to fund infrastructure and affordable housing
to 55%.
Senate Bill 711 (Hill) – Establishes a six-year pilot project to enable the
development of local projects that advance affordable housing production,
transit-oriented development and further important state policies
including GHG and VMT reductions, by enabling the Strategic Growth
Council to review and approve reductions in city and county property tax
contributions for ERAF.
Assembly Bill 53 (Steinorth) – The Homeownership Savings Accounts would
allow taxpayers to deduct up to $20,000 from their personal state income
taxes for a homeownership savings account.
Oppose – Regulatory Bill
Senate Bill 35 (Weiner) – Housing for a Growing California: Housing
Accountability & Affordability Act
•Requires project streamlining if Regional Housing Needs Assessment
(RHNA) goals are not met at ALL income levels
•Applies to multi-unit developments and Accessory Dwellings
•Requires development to occur in an “Infill site”
•Requires prevailing wage
•Requires unspecified amount of affordable units
•Prohibits parking requirements
Pension Reform
•On December 21, 2016 The League advocated for and was successful in a
phased-in approach to lowering the discount rate
-CalPERS Staff’s initial recommendation was a straight drop from
7.5% to 7.00%.
-League wanted a two-step drop from current 7.5 to 7.25. to 7.00%
-End result was a three step drop, current 7.5, to 7.375, to 7.25% then
to 7.00%
-This phase in will allow agencies to forecast and adjust to better
meet their obligations
•The League reconstituted the Pension Taskforce — to submit best
practices (internally) and propose legislative recommendations. The
Taskforce is currently full -- recommendations to be vetted through the
League policy committee and board. Divisions encouraged to particpate.
•Carolyn Coleman (Executive Director) met with Marci Frost (CalPERS CEO)
in February to work with CalPERS executive officers and the Board to try
and mitigate the financial impacts of the increased contributions.
•League will keep members posted on new developments
Land Use Bills
AB 540 (Roth) – Workforce Opportunity Zone
•Incentivize cities to plan for workforce and affordable housing, while
streamlining the approval process to help kick-start housing construction.
•Cities and counties could identify priority housing areas within a
community where enhanced planning, necessary environmental reviews
and public engagement would occur at the front-end.
•Housing developments within these planned areas can proceed in an
expedited manner because local government has conducted the necessary
environmental reviews
•Helps streamline housing project approvals without compromising local
control or the rights of citizens to participate in local land-use decisions.
AB 1397 (Low) – Housing Element Law
•Targeting cities that have not built a high number of affordable housing
units and will REQUIRE that jurisdictions locate sites in their communities
•Sponsored by the Western Center on Law and Poverty
•League will take an OPPOSE position
•Funding proposals to get affordable housing
Peninsula Division Update
Quarterly Meetings
February 2nd in Mountain View – Civil Liberties/Immigration
March 24th in San Mateo – Marijuana (AUMA)
June 16th in Santa Clara – Transportation/Housing
September 22nd in Redwood City – Active Transportation
April 19, Sacramento -- Legislative Action Day
April 20, Los Gatos -- Bocce Torneo
Sept 13 – 15, Sacramento -- League Annual
Conference and Division Election
Questions
Seth Miller
Public Affairs Manager
Peninsula Division
League of CA Cities
smiller@cacities.org
Tel. 415.595.8629