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CC SR 20221101 02 - Consideration of Cal Cities Membership CITY COUNCIL MEETING DATE: 11/01/2022 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to evaluate the City’s membership in the League of California Cities (Cal Cities). RECOMMENDED COUNCIL ACTION: (1) Receive a summary report and staff’s observations on the action and result of the Our Neighborhood Voices Initiative Petitioned Resolution at the 2022 General Assembly in Long Beach; (2) Review the services provided by Cal Cities as it compares to membership in other organizations, and provide Staff with direction on the City’s future membership with Cal Cities; and (3) If directed to remain in Cal Cities, authorize the Mayor to sign a letter to the Cal Cities President, CEO, and Regional Public Affairs Manager, requesting the General Assembly be held earlier during the annual conference , additional voting methods be considered, and expressing the need for Cal Cities to reaffirm its commitment to local control. FISCAL IMPACT: The City pays approximately $17,000 in annual dues to Cal Cities, in addition to participating in various Cal Cities events such as the Annual Conference with associated expenses. There is no fiscal impact associated with the recommendations provided in this report. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: McKenzie Bright, Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft letter to Cal Cities (page A-1) B. Table comparing the City’s organizational memberships (page B-1) C. December 7, 2021 staff report D. February 2, 2021 staff report E. February 9, 2021 Cal Cities response letter 1 RANCHO PALOS VERDES BACKGROUND: The League of California Cities (Cal Cities) is an association of California cities with the stated mission to “defend and expand local control through advocacy efforts in the Legislature, at the ballot box, in the courts, and through strategic outreach that informs and educates the public, policymakers, and opinion leaders.”1 Cal Cities hosts an annual conference, which culminates in a General Assembly where the membership votes on resolutions brought forward by cities or Cal Cities committees. The 2022 conference was held in Long Beach from September 7 -9 and was attended by Mayor Bradley, Councilmember Cruikshank, and Staff. During the General Assembly, the voting delegates voted to refer a petitioned resolution requesting Cal Cities’ support for the Our Neighborhood Voices Initiative to policy committees for further review. The Initiative seeks to allow local ordinances/regulations/etc., to supersede state law when they are in conflict. For more information on the Our Neighborhood Voices Initiative, see Attachment C. One of the primary concerns raised regarding the action taken during the General Assembly was that the vote was taken without debate or comment. However, according to the Cal Cities bylaws,2 after a motion on the recommended action is on the floor, there must be a motion to open debate, seconded, and approved by the voting delegates. During the General Assembly, the motion to debate failed, with 98 delegates voting in favor of opening the debate and 167 opposed. Therefore, there was no discussion on the item nor a chance to offer alternate motions. Business returned to the motion on the floor, which was to accept the Cal Cities’ General Resolutions Committee (GRC) recommendation to refer the item to the housing and environmental quality policy committees. It is anticipated that the policy committees, and eventually the Cal Cities board, will take up the item in the new year. As a result of this action, at the September 20, 2022 City Council meeting, Mayor Bradley requested the City’s involvement and membership in Cal Cities be brought forward for consideration, which is the subject of this report. DISCUSSION: 1. Our Neighborhood Voices Initiative Petitioned Resolution at the 2022 General Assembly in Long Beach Following the vote of the 2022 General Assembly on the Our Neighborhood Voices Initiative petitioned resolution, the South Bay cities delegation expressed dissatisfaction that the item was voted on without any meaningful discussion. The action taken by the General Assembly, which did not vote to open debate, was in accordance with Cal Cities bylaws. Regardless of the recommendation made by the GRC, discussion/debate is only 1 See calcities.org/about-us 2 See Bylaws for the League of California Cities (effective November 23, 2021) 2 opened by an affirmative vote of the voting delegates, otherwise, business proceeds directly to the vote. Staff observed two challenges during the General Assembly: that the nature of the petitioned resolution may have contributed to delegates not having robust information on the nature of the Our Neighborhood Voices Initiative, inherently a result of the established resolution process; and that many delegates were concerned with concluding business quickly to catch flights resulting in unintended consequences. The following summarizes the staff-observed challenges during the General Assembly. 1.A. The Resolution Process Cal Cities members have two ways to have an item considered during a General Assembly: through a resolution or a petitioned resolution. Resolutions must be submitted no later than 60 days prior to the opening session at the General Assembly and are reviewed and/or amended by Cal Cities policy committees. Cal Cities staff prepares an in-depth staff report providing background on the item and the recommended action. City councils typically take formal positions on the resolution to guide the vote of their designated delegate representative. If a resolution misses the 60-day window, proponents can circulate a petition during the conference. It must receive signatures from at least 10% of the voting delegates and be submitted to Cal Cities at least 24 hours before the start of the General Assembly. The GRC meets the evening prior to propose a recommended action but cannot make any amendments to the petition. In the case of the Our Neighborhood Voices Initiative (Initiative), conference attendees were emailed the resolution as part of the 2022 General Assembly Packet3 at 7:30 p.m. on September 8 – 16 hours before the General Assembly was scheduled to start. Voting delegates who did not check their email may not have known there was a petitioned resolution being considered until they checked in to the General Assembly minutes before voting occurred. Additionally, the petition proponents did not include the text of the Initiative, so delegates not familiar with the Initiative may not have understood the intended scope of the petitioned resolution. As it was a petitioned resolution, Cal Cities staff does not prepare a staff report with background, so what was provided by petition proponents was all that was passed on to voting delegates. To put this matter in context, it is worth noting that in 2018, the City of Beverly Hills submitted a resolution requesting Cal Cities explore initiating and promoting a ballot measure to protect local control, which was affirmed by the 2018 General Assembly. At the time, the Cal Cities Board of Directors explored the idea of creating a local control ballot measure but ultimately decided against actively pursuing it due to polling indicating there was little popular support for such a measure. There continues to be polling conducted by entities other than Cal Cities, showing little support among Californians for local control measures, likely as a result of the ongoing housing crisis. However, Cal Cities 3 See the 2022 General Assembly Packet (petitioned resolution begins on page 19) 3 staff continues to explore the creation of a local control ballot measure, outside of the Our Neighborhood Voices Initiative. The Cal Cities policy committees and Board of Directors considered taking a position on the Our Neighborhood Voices Initiative ballot measure several months ago but ultimately took a neutral position. Cal Cities’ decision was based on a lack of support from third parties such as labor groups that could help form a coalition to gain the support needed to pass the ballot measure and concern for the unintended consequences of the initiative – that it may not go far enough to ensure that local control would be protected as intended. Additionally, the lack of funding and fundraising capability exhibited by the Our Neighborhood Voices campaign was another factor considered, as it can be very expensive to run a successful initiative campaign. While the Our Neighborhood Voices Initiative was a new item before the General Assembly, it was not the first time Cal Cities as a body considered the Initiative, or similar measures. 1.B. Unintended Consequences During the General Assembly Staff has observed that because the General Assembly is the last item scheduled during the annual conference, voting delegates have a perverse incentive to be generally opposed to opening debate in order to conclude business quickly to catch flights or oth er transportation. This results in an unintended consequence on the effectiveness of the General Assembly. Therefore, the City Council may wish to direct staff to send a letter to Cal Cities requesting their consideration to: 1) changing the time of the G eneral Assembly to earlier in the conference to avoid risk of delegates incentivized to vote against opening debate in order to conclude business quickly in order to leave and 2) a voting platform that could be used during the General Assembly to both more accurately count votes as opposed to a voice vote and more quickly tabulate votes than the current method of Cal Cities staff attempting to count raised ballots and/or submitted paper ballots. Implementation of changes to the Cal Cities bylaws may be required to address the concerns raised over the resolution process. The Cal Cities Board of Directors recently created a governance committee that is responsible for suggesting changes to the bylaws, which are then voted on during the General Assembly. With respect to the decision of the General Assembly to refer Cal Cities’ support of the Our Neighborhood Voices Initiative to policy committees, the Cal Cities Board of Directors can still support the measure after it has gone through the Cal Cities review process. 2. Services Provided by Cal Cities In general, Cal Cities provides the City: • Monitoring, tracking, and engagement on bills and policy issue areas. 4 • Communication on advocacy efforts, legislative developments, and highlights on cities implementing new or innovative strategies. • Action alerts and sample letters/language on bills of high importance. • Monitoring of court cases and submission of friend -of-the-court briefs; filing lawsuits to protect local control. • Professional development for staff and public officials, including roundtables and educational conferences, meetings, webinars, and department-specific activities. 2.A. Membership Benefits of Cal Cities As a member, the City receives passive advocacy on bills the City Council does not take a position on but may benefit from and court cases Cal Cities advocates on behalf of cities for. The City also receives direct advocacy and support on bills the Council considers or takes a position on, and a mechanism for City priorities to be considered by the Cal Cities Board of Directors for adoption, through the resolution process. Additionally, RPV Staff serve or participate in various Cal Cities professional departments, gaining networking opportunities with other city leaders and the ability to shape Cal Cities policy, as well as introduce policy topics for consideration by the City Council. In participating in the resolution process, the City can directly influence Cal Cities policy. As an example, in 2019, the City brought forward a resolution whereby Cal Cities would call on the California Public Utilities Commission (CPUC) to expand the Rule 20 program to include wildfire mitigation as an eligible project to qualify for funds for undergrounding power lines. The resolution was passed by the Environmental Quality and Traffic, Communications, and Public Works committees with separate amendments, and the GRC recommended the resolution be referred back to the policy committees for concurrence. During the General Assembly, the delegates agree d with the GRC’s recommended action. After the policy committees agreed on language, in February 2020, the Board of Directors voted to adopt the City’s proposed policy and Cal Cities began to work toward the inclusion of emergency-related undergrounding within Rule 20A. Cal Cities is currently participating as a party in the ongoing CPUC case and continues to advocate for the inclusion of wildfire prevention as criteria for undergrounding.4 2.B. Concerns Regarding Efficacy of Cal Cities’ Lobbying In February 2021, the City sent a letter to Cal Cities expressing the City’s desire that Cal Cities reaffirm its mission to support local authority and oppose legislation that erodes local control (see Attachment D). The City received a response from Cal Cities that local control remains the organization’s core mission, as well as outlining Cal Cities’ role in protecting local land use authority (see Attachment E). While Cal Cities has had some success in lobbying to defeat many housing and land use bills, in recent years, it has been unable to defeat bills that significantly infringe on local land use control, such as Senate Bill (SB) No. 9 (Statutes of 2021) that requires ministerial 4 See CPUC docket for R1705010, pertaining to revisions to Electric Rule 20. 5 approval of duplexes and lot splits. There is continued concern from a number of cities that Cal Cities is not taking a strong enough position on housing and local land use bills. The trend in the Legislature has been an apparent lack of response to city positions. However, nearly a third of legislators will be freshmen members after the election, so there is a unique opportunity to gain new support for city interests and the protection of local land use authority. 2.C. Comparison of Cal Cities Membership with the City’s Other Organizations Cal Cities is the largest coalition group of cities in California, providing a wider base of support than any of the City’s other organizational memberships. With in the scope of the City’s legislative advocacy efforts, the Council has expressed a desire to form coalitions with like-minded cities to help advance our voice in Sacramento – there is no larger coalition of cities than Cal Cities (see Attachment B). The City is also a member of the Southern California Association of Governments (SCAG), California Contract Cities Association (CCCA), and South Bay Cities Council of Governments (SBCCOG). SCAG, CCCA, and the SBCCOG provide similar lobbying, educational, and regional networking and collaboration as Cal Cities, but on smaller scales. SCAG represents 188 cities in Southern California but focuses on regional planning, such as regional housing need allocations (RHNA). CCCA represents contract cities, predominantly in Los Angeles County, and focuses on advancing the contracting model and local control. SBCCOG represents the cities in the South Bay, and works to address regional issues such as transportation, technology, and homelessness. The City holds memberships in a variety of single-issue groups, which provide targeted regional networking and advocacy, such as the Palos Verdes Peninsula Chamber of Commerce. The statewide benefits and networking Cal Cities offers cannot be replicated by any of the City’s other membership organizations. While some of the benefits of Cal Cities, such as professional development at the Cal Cities Annual Conference, could still be received at non-member rates, if the City were to leave the organization, it would not be able to leverage the Cal Cities coalition, as it did for the Rule 20 program. While Cal Cities may not take as strong of a position as the City would like on certain areas related to local land use, the advocacy provided by Cal Cities may, at times, benefit the City’s interests, and the interests of the collective California cities, to warrant participation. In areas where Cal Cities’ advocacy/positions fall short of the City’s preferences, the City can leverage its lobbying firm to support the City’s position i n Sacramento. If membership is retained, the City could continue to work within Cal Cities to address policy concerns to leverage support from nearly all cities, which is a significantly larger coalition than the City would otherwise have access to (see Attachment B). 6 Based on the above, Staff seeks City Council direction on the City’s future membership with Cal Cities. ADDITIONAL INFORMATION: City Meeting with Cal Cities Regional Public Affairs Manager On October 11, Mayor Bradley, Councilmember Cruikshank, and Staff met with Cal Cities Regional Public Affairs Manager Jeff Kiernan to discuss the City’s membership and the General Assembly process. The information provided during the meeting has been incorporated in this report and Regional Public Affairs Manager Kiernan has confirmed his attendance for tonight’s meeting and will be available to answer any questions. In addition, Regional Public Affairs Manager Kiernan recommended the City consider taking a more active role in policy committees to directly influence Cal Cities policy and actions. The application window for 2023 policy committees closed on September 30 but will be available again next year. Torrance’s Cal Cities Membership At its regular meeting on October 11, the Torrance City Council voted to discontinue its membership with Cal Cities, effective January 1, 2023, citing a political decision to make a statement of Torrance’s dissatisfaction with Cal Cities’ inability to protect local control. The Taxpayer Protection and Government Accountability Act Initiative The California Business Roundtable (CBRT) has proposed a ballot measure, known as the “Taxpayer Protection and Government Accountability Act” (Initiative 21-0042A1), which appears to have qualified for the November 2024 ballot. The measure would limit the ability of state and local governments to enact, modify, or expand taxes, assessments, fees, and property-related charges. If the initiative were to pass: • State and local new or increased taxes would be subject to voter approval. All state and local taxes or fees adopted after January 1, 2022 would be retroactively voided if they did not align with the provisions of the initiative. • Fines and penalties for violations of local laws, including nuisance abatement and failure to maintain a vacant property, must be voter-approved, unless a new, undefined adjudicatory process is used to impose the fines and penalties. • Local advisory measures would be prohibited, and measures may not appear on the same ballot that would indicate what the revenue from a general tax could be used for. • Franchise fees for entry to governmental property must be “reasonable.” It is unclear what the reasonable measure would be and provides substantial opportunity for companies, utilities, and other corporations to seek legal action. 7 • Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking. Cal Cities, labor and public safety leaders, infrastructure advocates, businesses, and local governments – including the City of Rolling Hills Estates – have opposed the initiative. The initiative previously sought to get on the 2018 ballot in relatively similar form, which the proponents ultimately withdrew after a coalition including Cal Cities opposed the measure and the passage of Assembly Bill (AB) No. 1838 (Statutes of 2018) which placed a 12-year moratorium on new or increased soda taxes or taxes on other groceries. The California Legislative Analyst’s Office estimates that the measure would result in lower annual state and local revenues, potentially substantially lower, depending on future actions of the Legislature, local governing bodies, voters, and the courts.5 CONCLUSION: Staff recommends the City Council: 1) receive a summary report on the 2022 General Assembly; 2) review the services provided by Cal Cities, compared to membership in other organizations and provide direction to Staff on the City’s future membership with Cal Cities; and, if directed to remain in Cal Cities, 3) authorize the Mayor to sign a letter to the Cal Cities President, CEO, and Regional Public Affairs Manager, requesting the General Assembly be held earlier during the annual conference, additional voting methods be considered, and expressing the need for Cal Cities to reaffirm its commitment to local control (see Attachment A). ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff to initiate a resolution to address specified concerns. 2. Direct Staff to explore discontinuing the City’s membership in Cal Cities. 3. Take other action, as deemed appropriate. 5 See Legislative Analyst’s Office A.G. File No. 21-0042 8 30940 HAWTHORNE BLVD. / RANCHO PALOS VERDES, CA 90275-5391 / (310) 544-5207 / FAX (310) 544-5291 / WWW.RPVCA.GOV November 1, 2022 Via Email The Honorable Ali Sajjad Taj; Carolyn Coleman, Executive Director; and Jeff Kiernan, Regional Public Affairs Manager League of California Cities 1400 K Street, Suite 400 Sacramento, CA 95814 SUBJECT: Request for Consideration of Modifications to the General Assembly Schedule and Voting Procedure and for Cal Cities’ Heightened Commitment to Local Control Dear President Taj, Director Coleman, and Mr. Kiernan: The City of Rancho Palos Verdes joins other cities to express our concern regarding the League of California Cities’ (Cal Cities) commitment to protecting local control, specifically as was exhibited during the 2022 General Assembly in Long Beach. We understand that the vote process adhered to the Cal Cities bylaws, but we are concerned that perverse incentives stymied debate and potentially, the outcome of the vote. To address this, we recommend two actions: 1) that the General Assembly be scheduled earlier in the conference; and 2) that electronic voting options be considered to expedite the voting process. We have observed that many participants in the General Assembly are concerned with catching flights and are therefore disinclined to open debate. We recommend Cal Cities consider scheduling the General Assembly earlier during the Annual Conference. At a minimum, the General Assembly should be called before the leadership transition, swearing in, and associated remarks. Although, we would also encourage you to have the General Assembly as the first item of business on Friday before educational sessions and leadership transitions or consider having it on Thursday. We recognize that moving up the General Assembly will shorten the timeframe for petitioned resolutions such as the one considered in September, but the necessity of rescheduling the General Assembly to avoid concerns with catching flights or other transportation cannot be overstated. In terms of voting, when votes are close, and voice vote s cannot be determined, the process of raising cards and having Cal Cities staff count is relatively slow, further A-1 CITY OF DAVID L. BRADLEY, MAYOR BARBARA FERRARO, MAYOR PRO TEM ER IC ALEGR IA, COUNC ILMEMBER JOHN CRU ll<SHAN I<, COUNC ILMEMBER l(E N DYDA, COUNC ILMEMBER i,;~ "'<> "' ~ RANCHO PALOS VERDES Request for Consideration of Modifications to the General Assembly Schedule and Voting Procedure November 1, 2022 Page 2 disincentivizing discussion on additional items. Therefore, we also recommend exploration of a voting platform that could be used during the General Assembly to both more accurately count votes as opposed to a voice vote and more quickly tabulate votes than the current method of Cal Cities staff attempting to count raised ballots and/or submitted paper ballots. This will expedite the voting process and provide a verifiable roll call. If these adjustments to the General Assembly process require bylaws amendments, we are willing to introduce that resolution for the 2023 General Assembly, but would encourage you and the Board of Directors to make the adjustments you can that addresses the significant concerns cities are expressing with the General Assembly voting process. We understand some of these discussions are already ongoing, and we thank you for your efforts in this matter. Cal Cities serves as a powerful voice in Sacramento. With many freshman members of the Legislature expected to be elected in November, we encourage you to redouble your efforts to work with new legislators to protect local control and take advantage of this unique opportunity to ensure city voices are being heard. Cal Cities’ mission is to defend and expand local control, yet we continue to see the erosion of our local land use authority. We rely on Cal Cities to strongly advocate on behalf of California cities, and to use our collective action and platform to protect our interests. We encourage Cal Cities to recommit to this mission and to take stronger actions to protect local control. Sincerely, David L. Bradley Mayor, City of Rancho Palos Verdes cc: Rancho Palos Verdes City Council and City Manager A-2 CITY OF RANCHO PALOS VERDES ORGANIZATIONAL MEMBERSHIPS Organization Annual Cost (FY22-23) Representation Objectives LOBBYING/EDUCATIONAL/REGIONAL COLLABORATION GROUPS League of California Cities (Cal Cities) $16,477 479 member cities Representation: CA Cities Defend and expand local control, speaking on behalf of vast majority of cities in California. League of California Cities – Los Angeles County Division $1,381 86 Representation: LA County Cities Division within Cal Cities specializing in Los Angeles County regional issues. Provides a forum for LA County cities to network and collectively advocate. Southern California Association of Governments (SCAG) $4,986 188 Representation: Southern California Cities Regional planning (e.g. regional housing need allocations (RHNA) and long-range regional transportation plans). California Contract Cities Association (CCCA) $5,800 80 Representation: Contract cities (predominantly LA County) Advance the benefits of the contracting model and strengthen local control and governance. South Bay Cities Council of Governments (SBCCOG) $18,776 16 Representation: South Bay Cities Working to collectively address issues of common interest in the South Bay (e.g. transportation, technology, and homelessness). SINGLE-ISSUE GROUPS Palos Verdes Peninsula Chamber of Commerce $750 PV Peninsula Promote and foster business on the Palos Verdes Peninsula. San Pedro Chamber of Commerce $750 San Pedro Promote the interests of the business community in San Pedro. West Basin Municipal Water District -- Produces recycled water purchased by Cal Water; provides conservation and education programs. Local Agency Formation Commission (LAFCO) $1,128 LA County Oversees changes to local government boundaries in LA County. CA Resource Recovery Association $200 California Statewide recycling association. Southern California Waste Management Forum $65 Southern California Waste management and environmental networking. Los Angeles Regional Agency (LARA) $4,230 18 cities Promoting environmental sustainability and responsibility. Los Angeles Economic Development Corporation (LAEDC) $2,500 LA County Focused on equitable economic growth. CITY LOBBYIST Renne Public Policy Group (RPPG) $51,000 RPV Advance the City’s policy priorities in Sacramento and lobby on bills the City sponsors and/or takes a position on. B-1