City Council Subcommittee Agendas and Minutes

City Council Legislative Subcommittee Agenda 70 N. First Street, Campbell CA Thursday, March 25,2021 3:00 pm VIA Telecommunication NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Services, and the County of Santa Clara Health Officer Order, to help control the spread of COVID-19. Additional information regarding COVID-19 is available on the City’s website at www.campbellca.gov. This Legislative Subcommittee Meeting will be conducted via telecommunication and is compliant with provisions of the Brown Act and Executive Order N-29-20 issued by the Governor. The following Subcommittee members are listed to permit them to appear electronically or telephonically at the Legislative Subcommittee meeting on Thursday, March 25, 2021: Mayor Elizabeth “Liz” Gibbons and Councilmember Sergio Lopez. Members of the public will not be able to attend meetings at the Campbell City Council Chamber physically. The Legislative Subcommittee Meeting will be live streamed on YouTube (https://www.youtube.com/user/cityofcampbell) Public comment for the City Council meeting will be accepted via email at clerksoffice@campbellca.gov prior to the meeting. Please indicate in the subject line “FOR PUBLIC COMMENT.” Comments will be read during the Oral Requests comment period. Written comments received by 3:00 p.m. on Wednesday, March 24, 2021 will be posted on the website and distributed to the subcommittee before the meeting. Special Meeting of the Legislative Subcommittee CALL TO ORDER PUBLIC COMMENT New Business 1. 2021 State Legislation - Bills to Watch* Recommended Action: Continue discussion on 2021 State Legislation and provide direction to staff on position letters. ADJOURN *2021 State Legislation Bills Matrix *ACA 1: Support *SB 9: Oppose *SB 555: Support *SB 15 Fact Sheet *Indicates attachment to Agenda Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act (ADA), if you need assistance to participate in the Legislative Subcommittee meeting, please contact Diana Johnson in the City Manager’s Office at 408-866-2125 or by e-mail dianaj@campbellca.gov  2021 Legislation - Bills to Watch Bill Sponsor(s) Summary Position HOUSING ACA 1 Local Aguiar- The California Constitution prohibits the ad valorem tax rate on real property from Support - Draft government Curry exceeding 1% of the full cash value of the property, subject to certain exceptions. This Letter Attached. financing: measure would create an additional exception to the 1% limit that would authorize a city, affordable county, city and county, or special district to levy an ad valorem tax to service bonded housing and indebtedness incurred to fund the construction, reconstruction, rehabilitation, or public replacement of public infrastructure, affordable housing, or permanent supportive infrastructure: housing, or the acquisition or lease of real property for those purposes, if the proposition voter approval. proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements. AB 59 Gabriel Current law authorizes any party to protest the imposition of a fee, dedication, Watch Mitigation Fee reservation, or other exactions imposed on a development project within 90 or 120 days Act: Fees: of the imposition of the fee, as applicable, and specifies procedures for those protests Notice and and actions. The Mitigation Fee Act imposes the same requirements on a local agency for Timelines a new or increased fee for public facilities. Current law, for specified fees, requires any judicial action or proceeding to attack, review, set aside, void, or annul an ordinance, resolution, or motion adopting a new fee or service charge or modifying an existing fee or service charge to be commenced within 120 days of the effective date of the ordinance, resolution, or motion. Current law also provides that, if an ordinance, resolution, or motion provides for an automatic adjustment in a fee or service charge and the adjustment results in an increase in the fee or service charge, that any action to attack, review, set aside, void, or annul the increase to be commenced within 120 days of the increase. This bill would increase, for fees and service charges and for fees for specified public facilities, the time for mailing the notice of the time and place of the meeting to at least 45 days before the meeting. AB 71 Luz Rivas, • Establishes a revenue source to fund various State programs focused on solving the Watch Statewide Bloom, homeless crisis. Homelessness Chiu, and • Creates a funding source for developers to develop housing with wrap-around services Solutions Wicks (continuum of care) in certain jurisdictions. Program 1  2021 Legislation - Bills to Watch Bill Sponsor(s) Summary Position AB 115 Bloom Housing development an authorized use on a site designated for commercial if at least 20 Watch Planning and percent of the project units are deed-restricted affordable. The development would need Zoning: Housing to comply with all local standards, including: Development — Not adjacent to industrial uses and is more infill in nature with urban uses on 75 percent of the perimeter; and — Height limits, FAR, and density thresholds are defined in the law that takes into consideration local standards but is the greatest of the standards. • This bill would sunset on January 1, 2031. (Similar to SB 6) AB 215 Housing Chiu The Planning and Zoning Law requires a city or county to adopt a general plan for land Watch Element use development within its boundaries that includes, among other things, a housing element. That law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. That law also requires HCD to notify a city, county, or city and county, and authorizes HCD to notify the office of the Attorney General, that the city, county, or city and county is in violation of state law if HCD finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified provisions of law. This bill would add the Housing Crisis Act of 2019 to those specified provisions of law. AB 617 Davies Would authorize a city or county, by agreement, to transfer all or a portion of its Watch (Neutral) Planning and allocation of regional housing need to another city or county. The bill would allow the Zoning: transferring city to pay the transferee city or county an amount determined by that Regional agreement, as well as a surcharge to offset the impacts and associated costs of the Housing Needs: additional housing on the transferee city. The bill would also require the transferring city Exchange of or county and the transferee city or county to report to the council of governments and Allocation the department specified information about the transfer, as provided. AB 1258 Nguyen Current law requires each city, county, or city and county to prepare and adopt a general Oppose Housing plan for its jurisdiction that contains certain mandatory elements, including a housing Element: element. Under existing law, a part of the housing element is an assessment of housing Regional needs, which includes the locality’s share of the regional housing need. Under existing Housing Need law the appropriate council of governments, or for cities and counties without a council 2  2021 Legislation - Bills to Watch Bill Sponsor(s) Summary Position Plan: Judicial of governments, the Department of Housing and Community Development, adopts a final Review regional housing need plan that allocates a share of the regional housing need to each locality in the region. This bill would subject the final regional housing need plan to judicial review. AB 1401 Friedman Would prohibit a local government from imposing a minimum parking requirement, or Watch (Need Residential and enforcing a minimum parking requirement, on residential, commercial, or other more info) commercial development if the development is located on a parcel that is within one-half mile development: walking distance of public transit, as defined, or located within a low-vehicle miles parking traveled area, as defined. requirements. SB 5 Housing Atkins, Authorizes Legislature to issue bonds. Proceeds from bonds would be directed toward Watch Bond Act Caballero, housing finance activities focused on homelessness and ELI, VLI households. Unclear if McGuire, the funds would be directed into existing programs that serve these populations or if new Rubio, programs would be established. Skinner, and Wiener SB 6 Local Caballero, This bill designates a housing development project, a parcel within a commercial zone Watch Planning: Eggman, not adjacent to an industrial site, as an allowable use on a neighborhood lot if it complies Housing: and Rubio with various requirements, one of which includes: the density for a housing development Commercial must meet or exceed the density appropriate for lower income households according to Zones the local jurisdiction. (Similar to AB 115) SB 8 Density Skinner • Reduces the incentive criteria for LI: 17 percent for two incentives and 24 percent for Watch Bonus three incentives (down from 20 percent and 30 percent, respectively). • Increases density bonus maximum to 50 percent for MOD. • Adjustments to transit and parking. • Allows the City 3  2021 Legislation - Bills to Watch Bill Sponsor(s) Summary Position SB 9 Housing Atkins, • Allows for split lots in areas currently zoned single-family. Watch - Draft Development: Caballero, • Two-unit projects ministerial approval. Letter Attached. Approvals Rubio, and • The City can develop standards as long as they do not physically preclude development. Wiener SB 10 Planning Wiener Would allow for small projects of 10 or fewer units to be approved without going through Watch and Zoning: extended environmental reviews. (Comment: Why Housing • Focused on jobs-rich, urban infill areas within the City. 10 units?) Development: Density SB 15 Housing Portantino Grant program to assist local government to rezone idle retail sites (big box or Watch (Need Development: commercial shopping centers) for work force housing. This would be an annual grant. more info). Fact Incentives: The • Idle defined as at least 80 percent of leased or rentable square footage not occupied for Sheet requested Rezoning of Idle at least one year. from Senator Retail Sites Zoning would be by right. Portantino’s • Work force housing for lower- or moderate-income households with 55-year Office. affordability term for a rental and 45-year term for ownership. SB 478 Planning Wiener The Planning and Zoning Law requires a city or county to adopt a general plan for land Watch and Zoning use development within its boundaries that includes, among other things, a housing Law: housing element. The law also requires the Department of Housing and Community Development development to notify the city, county, or city and county, and authorizes the department to notify the projects. Attorney General, that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to that element, or any specified action or failure to act, does not substantially comply with the law as it pertains to housing elements or that any local government has taken an action in violation of certain housing laws. This bill would prohibit a local agency, as defined, from imposing specified standards, including a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 2, but not more than 4, units or a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 5, but not more than 10, units. SB 765 The Planning and Zoning Law, among other things, provides for the creation of accessory Watch Accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by 4  2021 Legislation - Bills to Watch Bill Sponsor(s) Summary Position dwelling units: ministerial approval, in accordance with specified standards and conditions. Current law setbacks. prohibits a local agency’s accessory dwelling unit ordinance from imposing a setback requirement of more than 4 feet from the side and rear lot lines for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. This bill would remove the above-described prohibition on a local agency’s accessory dwelling unit ordinance, and would instead provide that the rear and side yard setback requirements for accessory dwelling units may be set by the local agency. The bill would authorize an accessory dwelling unit applicant to submit a request to the local agency for an alternative rear and side yard setback requirement if the local agency’s setback requirements make the building of the accessory dwelling unit infeasible. 5  2021 Legislation - Bills to Watch TRANSPORTATION AB 1091 Santa Berman Current law creates the Santa Clara Valley Transportation Authority (VTA) with various Watch Clara Valley powers and duties relative to transportation projects and services and the operation Transportation of public transit in the County of Santa Clara. Current law vests the government of the Authority: Board VTA in a 12-member board of directors whose terms of office are two years. Under of Directors existing law, only members of the county board of supervisors and city council members and mayors of cities in the county are authorized to serve on the board. Current law provides for the appointment of the board members by those local governments, as specified. This bill, on and after July 1, 2022, would reduce the size of the board to 9 members, increase their terms of office to 4 years, and provide for residents living in the county, rather than local officials, to serve on the board, as specified. BROADBAND AB 14 Aguiar- Existing law establishes the State Department of Education in state government, and Communications: Curry vests the department with specified powers and duties relating to the state’s public Broadband school system. This bill would authorize local educational agencies to report to the Services: department their pupils’ estimated needs for computing devices and internet California connectivity adequate for at-home learning. The bill would require the department, in Advanced consultation with the Public Utilities Commission, to compile that information and to Services Fund annually post that compiled information on the department’s internet website. AB 34 Muratsuchi Would propose a $10 billion general obligation bond measure on the November 2022 Communications: ballot to provide funding for statewide broadband infrastructure in unserved and Broadband for All underserved communities throughout the State, and funds could be allocated to cities, Act of 2022 among other entities. SB 4 Gonzalez Current law establishes the Governor’s Office of Business and Economic Development, Communications: known as “GO-Biz,” within the Governor’s office to serve the Governor as the lead California entity for economic strategy and the marketing of California on issues relating to Advanced business development, private sector Services Fund investment, and economic growth. This bill would require the office to coordinate with other relevant state and local agencies and national organizations to explore ways to facilitate streamlining of local land use approvals and construction permit 6  2021 Legislation - Bills to Watch processes for projects related to broadband infrastructure deployment and connectivity. 7  2021 Legislation - Bills to Watch GOVERNANCE Position AB 339 State Lee Current law requires all meetings, as defined, of a house of the Legislature or a committee and Local thereof to be open and public, and requires all persons to be permitted to attend the Government: meetings, except as specified. This bill would require all meetings, including gatherings Open Meetings using teleconference technology, to include an opportunity for all persons to attend via a call-in option or an internet-based service option that provides closed captioning services and requires both a call-in and an internet-based service option to be provided to the public. SB 278 Public Leyva Would establish new procedures under Public Employees’ Retirement Law (PERL) for cases Employees’ in which PERS determines that the benefits of a member or annuitant are, or would be, Retirement based on disallowed compensation that conflicts with PEPRA and other specified laws and System: thus impermissible under PERL. The bill would also apply these procedures retroactively to disallowed determinations made on or after January 1, 2017, if an appeal has been filed and the compensation: employee member, survivor, or beneficiary has not exhausted their administrative or legal benefit remedies. At the threshold, after determining that compensation for an employee adjustments. member reported by the state, school employer, or a contracting agency is disallowed, the bill would require the applicable employer to discontinue the reporting of the disallowed compensation. The bill would require that contributions made on the disallowed compensation, for active members, be credited against future contributions on behalf of the state, school employer, or contracting agency that reported the disallowed compensation and would require that the state, school employer, or contracting agency return to the member any contributions paid by the member or on the member’s behalf. REVENUE AND TAXATION SB 555 Local McGuire This bill would authorize a local agency to enact an ordinance exclusively delegating its Support – Draft Agencies: authority to collect any transient occupancy tax imposed by that local agency on short- Letter Attached. Transient term rentals to the California Department of Tax and Fee Administration and to enter into Occupancy a contract with the department for purposes of registration, rate posting, collection, and taxes: Online transmission of revenues necessary to collect and administer any transient occupancy tax Short Term imposed on a short-term rental as specified in this bill. Rental Facilitator: This bill would require the department to perform those functions, as specified, and would Collection require all local charges collected by the department to be deposited in the Local Charges for Short-term Rentals Fund, which would be created by the bill in the State Treasury. This 8  2021 Legislation - Bills to Watch bill would continuously appropriate all amounts in the fund to the department and would require the department to transmit the funds to the local agencies periodically as promptly as feasible, as provided. Local agencies that do not currently have a TOT collection agreement would be able to opt-in to the program. ENERGY AB 987 Low Would require increased reporting for Investor Owned Utilities on planned and unplanned Electrical electricity outages (City of San Jose is a sponsor) Corporations: Reporting. 9 March 22, 2021 Awaiting Committee Hearing Sacramento, California 95814 VIA California Legislature Advocates Portal SUBJECT: SUPPORT – ACA 1 – 55% Vote for Local Affordable Housing and Public Infrastructure. Dear Senator McGuire: The City of Campbell would like to express its support for Constitutional Amendment 1 (ACA 1), which would lower the voter approval requirement from a two-thirds supermajority to a 55 percent supermajority for local affordable housing and public infrastructure funding measures. Like many other cities, Campbell faces numerous challenges in securing funding for important local public infrastructure projects. As policy makers, we have observed how Proposition 39 has helped local school districts receive voter approval for facilities bonds that required a 55 percent approval threshold. Additionally, statewide bond measures only require a simple majority of votes to pass. ACA 1 will level the playing field and create parity between school districts and cities, counties, and special districts, so that all local governments have a viable financing tool to address community needs. The City of Campbell supports the requirements in the bill that call for voter protection, public notice, and financial accountability. A majority of the voters will continue to decide whether they support housing and infrastructure projects in their jurisdictions. We urge your support of ACA 1 so that it may pass from your Committee. Sincerely, Elizabeth ‘Liz’ Gibbons, AIA Mayor March 22, 2021 Honorable Senator Wiener, Chair Senate Housing Committee State Capitol, Room 2209 Sacramento, California 95814 VIA California Legislature Advocates Portal SUBJECT: OPPOSE UNLESS AMENDED - SB 9 (Atkins) Housing Developments. Approvals. Dear Senator Wiener: The City of Campbell writes to express an Oppose Unless Amended position on SB 9 (Atkins) which would require a local government to ministerially approve a housing development containing two residential units in single-family residential zones. Additionally, this measure would require local governments to ministerially approve urban lot splits. The ministerial approval of these projects eliminates public review and input. Public engagement is one of the City’s core strategic priorities, as the City believes that those who are affected by a decision have a right to be involved in the decision-making process. SB 9 overrides local land use plans and regulations that have been crafted and shaped by the collaborative work between residents, staff and other decision-making bodies. These land use and zoning ordinances carefully considered where and how much housing growth should occur, as well as anticipating necessary government services such as water, sewer, utilities, schools and traffic impacts. Local knowledge and adopted land use laws should never be overridden. As a city located in the Silicon Valley region, Campbell understands the significance of the state’s housing crisis. However, the City cannot support legislation that disrupts general plans, erodes public participation and can lead to detrimental environmental impacts. Unless amended to allow cities to determine a range of lot sizes suitable for SB 9 development projects, continue to determine parking standards, and maintain the ability to consider local conditions when reviewing housing project applications, the City of Campbell respectfully opposes SB 9. Sincerely, Elizabeth ‘Liz’ Gibbons, AIA Mayor  SB 15 (Portantino) – Local Government Incentives to Rezone Idle Retail Sites for Workforce Housing to afford owning a home, essential for build- PROBLEM/ISSUE ing a stronger and vibrant economy. According to a paper written in June 2018 by Lack of affordable housing is a major issue the George Mason School, Center of Real Es- for current and potential employers in Cali- tate; fornia counties. Housing is intrinsically con- nected to the welfare of workforce popula- “The growth of e-commerce has made public tions and business. Lacking sufficient attain- retailers have lose enterprise value. able housing for employees, work environ- ments suffer and the greater economy is In addition to closing stores, many retailers negatively impacted. are reducing demand for future space in re- tail centers. A concurrent trend has emerged in local economies due to the growth of e-com- Closings and cutbacks by retailers are hap- merce. Since 2017, national retailers have pening in areas that are least affluent and been reducing their demand for future space least densely populated. Retailers are dis- in retail centers, are closing stores and proportionately leaving poorer and rural ar- abandoning retail sites at a record pace eas (67%) as opposed to large/affluent cit- greater than during the Great Recession. ies (13%).” The intent of this legislation is to give incen- tives to cities that convert these abandoned Now is the opportunity to construct afforda- retail sites into affordable and workforce ble housing on land formerly used by com- housing. These fiscal incentives will be used mercial retailers and give local governments by local governments to replace the sales fiscal incentives to reward them for rezon- tax revenues from these big box retail ing, approving, completing and allowing oc- stores. cupancy of workforce housing projects. BACKGROUND SUMMARY SB 15 will enable local cities to receive from HCD the average of the annual amount of California has a housing emergency. Accord- sales tax revenue generated by that site for ing to the California Department of Housing the last seven (7) years if the site has been and Community Development (HCD), from converted and occupied with new housing. 2015-2025, approximately 1.8 million new The city would receive that average amount housing units are needed to meet projected for a total of seven years. population and household growth, or 180,000 new homes annually. For a local government to receive this fiscal incentive, beyond just rezoning the sites, The imbalance between supply and demand the city must approve a housing develop- has driven California housing costs to be the ment project through its planning process, highest in the nation, with an average me- must be built and have a certificate of occu- dian home price now 2.5 times the U.S. me- pancy for the city to be eligible and receive dian. These high prices have prohibited oc- the sales tax rebate. cupations like teachers, nurses, public safety officers and younger professionals the ability Office of Senator Anthony J. Portantino SB 15 – Fact Sheet Contact: Ben Edelstein – (916) 651-4025 or Ben.Edelstein@sen.ca.gov Should the city approve a mixed use devel- opment on the site, the city would be eligi- ble for the sales tax rebate only on the amount of square footage dedicated to housing. EXISTING LAW Existing law through the Workforce Housing Reward Program allows grants to be made available to local governments that provide land use approval to housing projects that are affordable to very low and low-income households. SUPPORT BizFed (Sponsor) State Building and Construction Trades Council of California (Sponsor) The Los Angeles County Division of the League of California Cities (Sponsor) Better Way CA California Cities for Local Control California-Nevada Conference of Operating En- gineers Century Glen HOA Citizens Preserving Voice City of Claremont City of Santa Monica Crescenta Highlands Neighborhood Association Hollywoodland Homeowners Association Latino Alliance for Community Engagement Livable California Miracle Mile Residential Association Pacific Palisades Community Council Riviera Homeowners Assn Save Our Single-Family Neighborhoods Sherman Oaks Neighborhood Association South Bay Cities Council of Governments Spalding Square Neighborhood Association Verdugo Woodlands West Homeowners Association Version: 3/22/2021 Office of Senator Anthony J. Portantino SB 15 – Fact Sheet Contact: Ben Edelstein – (916) 651-4025 or Ben.Edelstein@sen.ca.gov