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2021-22 LQ Legislative Policy GuideCity of La Quinta CITY COUNCIL MEETING: June 1, 2021 STAFF REPORT AGENDA TITLE: APPROVE 2021 LEGISLATIVE POLICY GUIDE UPDATES RECOMMENDATION Approve the Legislative Policy Guide updates and authorize the Mayor, one Council Member, and City Manager to issue letters within the scope of these policies. EXECUTIVE SUMMARY •The updated 2021 Legislative Policy Guide (Guide) (Attachment 1) presents the Council’s position on proposed legislation and allows the City to weigh in on legislative matters that may impact the City. •The Guide has been updated to incorporate legislative proposals that surfaced this calendar year and includes proposed legislation that would impact the City in areas such as transportation, public works, community development, public safety, COVID-19 recovery and the environment. •The Guiding Principles presented in the Guide serve as the Council’s direction on pending legislation and enable staff to immediately respond to proposed legislation in a timely matter. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The legislative landscape is constantly changing, producing pending legislation that may impact the City’s ability to conduct business and provide services. The Guide enables the City to have a voice on emerging issues and allows staff to take immediate action on pressing legislation. Current issues before the legislature that may impact the City are: •Senate Housing Package comprised of SB 5 (Atkins) Affordable Housing Bond Act of 2022, SB 6 (Caballero) The Neighborhood Homes Act, SB 7 (Atkins) The Housing + Jobs Expansion & Extension Act, SB 8 (Skinner) Housing Crisis Act of 2019, SB 9 (Atkins) California Housing Opportunity & More Efficiency (HOME) Act, and SB 10 (Wiener) Planning and Zoning: Density. This package is designed to assist with BUSINESS SESSION ITEM NO. 3 261 development of the forecasted need of 1.8 million new homes by 2025, with each bill having a goal of adding to housing production in the state. •SB 45 (Portantino) Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022: authorizes the issuance of bonds in the amount of $5,595,000,000 to finance projects for wildfire prevention, safe drinking water, drought preparation, and flood protection program. •AB 1397 (Garcia) Public Contracts: California Lithium Economy Act: The bill would require an awarding authority, by January 1, 2025, to require the successful bidder for a contract that includes electric vehicles to be provided as part of that contract, to disclose the sources of lithium used in the manufacture of the electric vehicles’ batteries. The bill would also require, by January 1, 2035, that at least 35% of the lithium used in electric vehicle batteries pursuant to a contract under the act be produced in California. The Salton Sea Known Geothermal Resource Area is home to the largest deposits of lithium in North America, with the potential to supply more than one-third of worldwide lithium demand, according to experts. Accelerating lithium development at the Salton Sea Known Geothermal Resource Area could anchor a domestic battery supply chain. Developing lithium from the Salton Sea Known Geothermal Resources Area could also enable the creation of numerous revenue streams from California’s enormous purchasing power. •AB 1021 (Mayes) Imperial Irrigation District: This bill would require the membership of the board of directors of the Imperial Irrigation District to increase from 5 to 6 members, with the additional director being a nonvoting member with all of the other rights as the existing directors and meeting certain qualifications. Additionally, would require the commissions for the County of Imperial and the County of Riverside to conduct and publish on their internet websites a joint study of voting rights in the Imperial Irrigation District, options for providing electricity in the Imperial Irrigation District, and options for alternative governance structures for the Imperial Irrigation District board of directors, as specified. •COVID-19 Related Legislation: The Governor’s proposed 2021-22 State Budget contains several provisions that would provide relief for businesses and residents as the recovery from the pandemic continues. Of the $227.2 billion budget, several billion is set aside for project homekey, small business grants, non-profit cultural institution grants, vaccine administration assistance, and a stimulus program for low- income workers. The Guide presents the policies that guide the City’s legislative advocacy initiatives which include: enhance local authority, sustain fiscal responsibility, foster economic development, promote health and wellness, support public safety, and encourage preservation of the environment. 262 In addition, the Guide provides an overview of important legislative developments arising in 2021 and connects them to emerging trends in our area. It also itemizes the Council’s policy position on key legislative areas such as economic development, finance, transportation, and public safety among others. The City receives informational updates on legislative efforts through a variety of channels, including the League of California Cities, City lobbyist Gonsalves and Son, and the City Attorney. Gonsalves and Sons provide weekly phone and email updates with staff, monthly summaries, and Legislative Reports with an overview of each bill and current status. ALTERNATIVES As the Legislative Guide is a resource for both Council and Staff to expedite responses on legislative matters, staff does not recommend an alternative. Prepared by: Doug Kinley III, Management Specialist Approved by: Gilbert Villalpando, Assistant to City Manager Attachment: 1. Legislative Policy Guide 2021 263 264 2 0 2 1 A T T A C H M E N T 1 265 2 0 2 1 L E G I S L A T I V E P O L I C Y G U I D E GUIDING PRINCIPLES The Legislative Policy Guide (Guide ) is a tool for the City to navigate through the legislative landscape . This document details the City ’s policy positions on priority issues and provides a comprehensive approach to allow staff to take immediate action on pressing legislation under City Council direction . The guide identifies legislative trends and active legislation that may have an impact on the City ’s interests and affairs and supplements other Council -established goals and policies . It is intended to be updated on a regular basis . I. ENHANCE LOCAL AUTHORITY The City of La Quinta is a charter city that supports legislation aimed at preserving local authority . Additional regulations or mandates that undermine local control are detrimental to quality service delivery . II. SUSTAIN FISCAL RESPONSIBILITY The City of La Quinta has been able to successfully maneuver through redevelopment dissolution and economic downturn through prudent , disciplined spending and cost -effective stewardship of City resources . Therefore , the City supports measures that promote fiscal stability . III. FOSTER ECONOMIC DEVELOPMENT The City of La Quinta generally supports legislative efforts designed to foster economic development tools and funding options for effective service delivery . IV. PROMOTE PUBLIC HEALTH AND WELLNESS The City of La Quinta actively seeks to promote a healthy and vibrant community that provides various recreational activities and opportunities for residents to enjoy the unique benefits of La Quinta . V. SUPPORT PUBLIC SAFETY The City of La Quinta strongly supports community safety by providing high - quality law enforcement and fire services and maintaining health and safety standards for its residents . VI. ENCOURAGE PRESERVATION OF ENVIRONMENT The City of La Quinta is a thriving desert oasis that supports a proactive and thoughtful stance regarding the enhancement and conservation of the desert environment that surrounds us including the Salton Sea . 266 267 L E G I S L A T I O N I M P A C T I N G U S The public policy landscape is constantly changing , and it is incumbent on the City to stay up to date on the latest developments . Anticipating the effects emergent legislation may have on the community is therefore imperative . Below is a short outline of impact in key areas . GOVERNOR NEWSOM'S ZERO-EMISSION 2023 EXECUTIVE ORDER N-79-20 In September 2020 , the Governor announced an executive order that directs the State to require that , by 2035 , all new cars and passenger trucks sold in California be zero -emission vehicles . Transportation currently accounts for more than 50 percent of California ’s Greenhouse Gas Emissions . The order also directs the State to take more actions to look at transitioning away from fossil fuels while reviewing oil extraction methodology . GOVERNOR'S TRANSPORTATION BUDGET The Governor ’s budget provides a total of $22 .4 billion from all fund sources for the state ’s transportation departments and programs in 2021 ‑22 . This is a net decrease of $3 .1 billion , or 13 percent , fewer estimated expenditures for the current year . Specifically , the budget includes $14 .5 billion for the California Department of Transportation , $612 million for the High -Speed Rail Authority , $2 .7 billion for the California Highway Patrol (CHP ), $1 .4 billion for the Department of Motor Vehicles (DMV ), $822 million for transit assistance , and $1 .8 billion for various other transportation programs . Based on a forecasted need of 1 .8 million new homes by 2025 , the Senate introduced a housing package called the “Building Opportunities for All ” Senate Housing Package . It is the goal of this housing package for each bill to individually address a variety of causes that have contributed to the lack of housing production in the state . TRANSPORTATION & PUBLIC WORKS COMMUNITY DEVELOPMENT 268 Senate Bill 5 Enacts the Affordable Housing Bond Act of 2022 which places a $6 .5 billion dollar bond before the voters on the November 2022 ballot to fund affordable rental housing and homeownership programs . SB 5 (ATKINS) AFFORDABLE HOUSING BOND ACT OF 2022 SB 8 (SKINNER) HOUSING CRISIS ACT OF 2019 Senate Bill 8 extends the provisions of SB 330 , the Housing Crisis Act of 2019 , until 2030 . This bill adds clarifying language to ensure the intent of SB 330 to streamline the production of housing that meets a local jurisdiction ’s existing zoning and other rules is met . Senate Bill 6 authorizes residential development on existing lots currently zoned for commercial office and retail space such as strip malls or large “big box ” retail spaces . This bill requires the development of residential units be at a minimum density to accommodate affordable housing and abide by existing local planning and development ordinances . SB 6 (CABALLERO) THE NEIGHBORHOOD HOMES ACT: LOCAL PLANNING: HOUSING: COMMERCIAL ZONES SB 7 (ATKINS) THE HOUSING + JOBS EXPANSION & EXTENSION ACT: ENVIRONMENTAL QUALITY: JOBS AND ECONOMIC IMPROVEMENT THROUGH ENVIRONMENTAL LEADERSHIP ACT OF 2021 The Housing + Jobs Expansion & Extension Act – Senate Bill 7 seeks to improve the California Environmental Quality Act (CEQA ) process by extending and expanding provisions of AB 900 , which streamlined paperwork and expedited legal challenges to large , multi -benefit housing , energy , and manufacturing projects . This bill extends the 2021 ‘sunset ’ of AB 900 , which created jobs and investment in the state , through 2026 . SB 9 (ATKINS) CALIFORNIA HOUSING OPPORTUNITY & MORE EFFICIENCY (HOME) ACT: HOUSING DEVELOPMENT: APPROVALS California Housing Opportunity & More Efficiency (HOME ) Act - Senate Bill 9 promotes neighborhood -scale residential development by streamlining the process for a homeowner to create a duplex or subdivide an existing lot in residential areas . This bill builds on the approach of Accessory Dwelling Units (ADUs ) and expands options for homeowners . SB 10 (WIENER) PLANNING AND ZONING: HOUSING DEVELOPMENT: DENSITY Senate Bill 10 allows cities to upzone areas close to job centers , transit , and existing urbanized areas to allow up to ten units without having to go through the lengthy CEQA process .269 The California Drought , Water , Parks , Climate , Coastal Protection , and Outdoor Access For All Act of 2018 , approved by the voters as Proposition 68 at the June 5 , 2018 , statewide primary direct election , authorizes the issuance of bonds in the amount of $4 ,100 ,000 ,000 pursuant to the State General Obligation Bond Law to finance a drought , water , parks , climate , coastal protection , and outdoor access for all program . This bill would enact the Wildfire Prevention , Safe Drinking Water , Drought Preparation , and Flood Protection Bond Act of 2022 , which , if approved by the voters , would authorize the issuance of bonds in the amount of $5 ,595 ,000 ,000 pursuant to the State General Obligation Bond Law to finance projects for a wildfire prevention , safe drinking water , drought preparation , and flood protection program . PUBLIC SAFETY SB 45 (PORTANTINO) WILDFIRE PREVENTION, SAFE DRINKING WATER, DROUGHT PREPARATION, AND FLOOD PROTECTION BOND ACT OF 2022 AB 1397 (GARCIA) PUBLIC CONTRACTS: CALIFORNIA LITHIUM ECONOMY ACT The California Lithium Economy Act would revise the definition of “eligible materials ” to include lithium , commencing January 1 , 2023 . The bill would require an awarding authority , by January 1 , 2025 , to require the successful bidder for a contract that includes electric vehicles to be provided as part of that contract , to disclose the sources of lithium used in the manufacture of the electric vehicles ’ batteries . The bill would also require , by January 1 , 2035 , that at least 35 % of the lithium used in electric vehicle batteries pursuant to a contract under the act be produced in California . The Salton Sea Known Geothermal Resource Area is home to the largest deposits of lithium in North America , with the potential to supply more than one -third of worldwide lithium demand , according to experts . Accelerating lithium development at the Salton Sea Known Geothermal Resource Area could anchor a domestic battery supply chain . Developing lithium from the Salton Sea Known Geothermal Resources Area could also enable the creation of numerous revenue streams from California ’s enormous purchasing power . ENVIRONMENT 270 This bill would require the commissions for the County of Imperial and the County of Riverside to conduct and publish on their internet websites a joint study of voting rights in the Imperial Irrigation District , options for providing electricity in the Imperial Irrigation District , and options for alternative governance structures for the Imperial Irrigation District board of directors , as specified . The bill would make the joint study contingent upon funding by the Legislature and would require the study to be published no later than 18 months after receipt of funds from the Legislature . By imposing new duties on the specified local agency formation commissions , the bill would impose a state -mandated local program . A dditionally , this bill would require the membership of the board of directors of the Imperial Irrigation District to increase from 5 to 6 members , with the additional director being a nonvoting member with all of the other rights as the existing directors and meeting certain qualifications . The bill would require the nonvoting director to be appointed by the county supervisor who represents the largest amount of population in the electrical service area . The bill would require the nonvoting director to serve a term of 4 years . The bill would require the nonvoting director to represent the electrical service area and to live in the service area at the time of their appointment and throughout their tenure on the board , and if the nonvoting director relocates outside of the electrical service area , the director 's membership on the board would terminate and a new member would be required to be appointed . The bill would require that , if the Imperial Irrigation District no longer serves electricity to the electrical service area , the nonvoting director 's membership on the board terminate , and membership of the board of directors decrease from 6 to 5 . A B 1021 (MAYES) IMPERIAL IRRIGATION DISTRICT G OVERNOR'S PROPOSED 21-22 STATE BUDGET $372 million for the administration of vaccines across all 58 counties . $2 .4 billion for the Golden State Stimulus - a $600 state payment to low - income workers who were eligible to receive the Earned Income Tax Credit in 2019 , as well as 2020 Individual Taxpayer Identification Number (ITIN ) filers . Governor Gavin Newsom submitted his 2021 -22 State Budget proposal on January 8 , 2021 , to the Legislature – a $227 .2 billion fiscal blueprint that provides funding for immediate COVID -19 response and relief efforts with claims to target Californians who need it most while making investments for an equitable , inclusive and broad -based economic recovery . The following is an overview while noting it is subject to change before approval . COVID-19 RECOVERY 271 $575 million grants to small businesses and small non -profit cultural institutions disproportionately impacted by the pandemic . $70 million to provide immediate and targeted fee relief for small businesses including personal services and restaurants . $2 billion targeted specifically to support and accelerate safe returns to in -person instruction starting in February , with priority for returning the youngest children (transitional kindergarten through 2nd grade ) and those with the greatest needs first . $1 .1 billion immediate relief for small businesses $777 .5 million for a California Jobs Initiative to provide incentives targeted at accelerating investment and job creation . The Budget proposes an overall $353 million investment in workforce development . It includes a $250 million one -time General Fund to support workforce development and better linkages between higher education and gainful employment . The Budget includes the creation of a new Office of Health Care Affordability . The Budget proposes to implement the California Advancing and Innovating Medi -Cal (CalAIM ) initiative to reduce variation and complexity in the state ’s Medi -Cal program , manage member risk and need and improve outcomes through payment reform . Through Project Homekey – a nation -leading effort to acquire motels for homeless housing to respond to the COVID -19 pandemic – the state has awarded $846 million to 51 local agencies to secure over 6 ,000 units of permanent housing for individuals and families who had been homeless . The Budget includes $1 .75 billion one -time General Fund to purchase additional motels , develop short -term community mental health facilities and purchase or preserve housing dedicated to seniors . 272 P O L I C Y P O S I T I O N S The City of La Quinta supports economic development policies and funding mechanisms that foster a hospitable and thriving business environment . Considering budget shortfalls , the City supports public -private development opportunities that encourage economic activity and promote health and wellness within the City . The City supports retaining financial flexibility and authority with regard to redevelopment dissolution matters . Opposes measures that would make the City more dependent on the State for financial stability . Supports legislation that facilitates the recoupment of City costs derived from State and Federal mandates . E CONOMIC DEVELOPMENT FINANCE The City of La Quinta is a charter city that relies on contract services to provide efficient service delivery . Opp oses any change in revenue allocations that would negatively affect local governments . Opposes any action that would preempt local control over locally imposed taxes and other funding sources . Oppose any unfunded mandates .273 Supports legislation that develops programs to increase housing opportunities to meet growing demand in our area . S upports legislative efforts that provide incentives to local governments and private developers to develop additional housing opportunities including affordable housing for low -income and disabled seniors , adults , and veterans . H OUSING TRANSPORTATION & INFRASTRUCTURE The City of La Quinta supports measures that provide financing tools for increasing effective , clean transportation . Su pp orts clean energy alternatives that are adequately funded . Su pports State clean energy programs that are financially viable and direct funding to local government to invest in clean energy . The City of La Quinta supports developing vital infrastructure and streamlining the local , state , and federal process for infrastructure development to better meet local needs . Supports legislation that strengthens local authority over land use and infrastructure development . E NVIRONMENT The City of La Quinta supports the preservation of our environment . Supports financial incentives for water reuse and legislation that encourages the treatment of municipal wastewater for non -potable reuse and promotes the development of reasonable regulations to encourage and maximize the responsible use of reclaimed water as an alternative to California ’s fresh water supply . 274 PUBLIC SAFETY TOURISM 275 JANUARY: THE PREVIOUS YEAR ’S LAWS GO INTO EFFECT DURING THIS MONTH . LEGISLATURE RECONVENES TO DISCUSS THE NEW YEAR OF LEGISLATION AHEAD , AND ALL BILL REQUESTS MUST BE SUBMITTED BEFORE THE END OF THE MONTH . BUDGETS MUST BE SUBMITTED BY THE GOVERNOR DURING THE BEGINNING PORTION OF THE MONTH . F EBRUARY : THE LAST DAY FOR BILLS TO BE INTRODUCED OCCURS ON FEBRUARY 19 . M ARCH : SPRING RECESS UPON ADJOURNMENT . MARCH 25 – APRIL 5 . A PRIL : LAST DAY FOR POLICY COMMITTEES TO HEAR AND REPORT TO FISCAL COMMITTEES FISCAL BILLS BEING INTRODUCED , APRIL 30 . M AY : POLICY COMMITTEES MUST REPORT NON -FISCAL BILLS BY MAY 7 . POLICY COMMITTEES ARE GIVEN THEIR LAST DAY TO MEET BEFORE CONVENING IN JUNE NEAR THE END OF THIS MONTH AND REPORT FLOOR BILLS FOR THEIR HOUSE . J UNE : FLOOR SESSION CONDUCTED AT THE BEGINNING OF THE MONTH , THE LAST DAY FOR BILLS TO BE PASSED OUT OF THE HOUSE OF ORIGIN OCCURS , AND THE COMMITTEE MEETINGS RESUME . ALL BUDGETS MUST BE PASSED BY THE MIDDLE OF THE MONTH . J ULY : THE LAST DAY FOR POLICY COMMITTEES TO MEET AND REPORT BILLS OCCURS DURING THE MONTH BEFORE SUMMER RECESS BEGINS , JULY 16 – AUGUST 16 . A UGUST : LEGISLATURE RECONVENES FROM SUMMER RECESS . THE LAST DAY FOR FISCAL COMMITTEES TO REPORT BILLS TO THE FLOOR OCCURS AT THE END OF THE MONTH . FLOOR SESSION BEGINS AT THE END OF THE MONTH AS WELL . S EPTEMBER : THE LAST DAY TO AMEND BILLS ON THE FLOOR OCCURS AT THE BEGINNING OF THE MONTH , WITH THE LAST DAY FOR EACH HOUSE TO PASS BILLS OCCURRING IN THE MIDDLE OF THE MONTH . INTERIM STUDY RECESS BEGINS SHORTLY AFTER . ADDITIONALLY , OCTOBER 10 IS THE LAST DAY FOR GOVERNOR TO SIGN OR VETO BILLS PASSED BY THE LEGISLATURE BEFORE SEPTEMBER 10 AND ARE IN THE GOVERNOR 'S POSSESSION ON OR AFTER SEPTEMBER 10 . M O N T H L Y O V E R V I E W L E G I S L A T I V E C A L E N D A R 2 0 2 1 B E L O W I S A N O V E R V I E W T H A T S U M M A R I Z E S M A J O R L E G I S L A T I V E E V E N T S A N D K E Y D A T E S T H A T O C C U R M O N T H T O M O N T H . 276