HOUSING, COMMUNITY AND ECONOMIC DEVELOPMENT POLICY COMMITTEE HIGHLIGHTS

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1 HOUSING, COMMUNITY AND ECONOMIC DEVELOPMENT POLICY COMMITTEE HIGHLIGHTS Friday, January 22, 2016 Sacramento Convention Center, Room 204, 1400 J Street, Sacramento, CA ATTENDANCE Members: Silva, Cindy (Chair); Hadjinian, Jack (V. Chair); Allen, Michael; Argabrite, Samantha; Athas, Denise; Avalos, Carmen; Avila Farias, AnaMarie; Baber, Bill; Bennett, Joan; Brady, Celeste; Bruins, Jeannie; Burke, Tonya; Casey, Ray; Condon, Carla; Derr, Mike; Elias, David; Ferguson, Kerry; Goldstein, Jamie; Gray, James; Harrison, Don; Hupp, Cecilia; Jacob, Matthew; Johnson, Ken; Jones, Charles; Kalb, Dan; La Monte, Lou; Layba, Mina; Little, Leslie; Magsig, Nathan; McAustin, Margaret; McGill, Adam; Morehouse, Carl; Nassif, Scott; Ohtaki, Peter; Patterson, Larry; Reilich, Dustin; Schultz, Robert; Spriggs, Ed; Stanton, Susan; Stone, Randall; Strong, Fred; Sturtevant, Brian; Tsao, Eric; Vasquez, Racquel; Wilson, Monica League Partners: Reilich, Dustin Staff: Kendra Harris I. State Budget and Issues Briefing The January 2016 Policy Committee meetings began with a general session briefing. League Executive Director Chris McKenzie welcomed attendees and thanked them for their contributions to the policy committees and to all California cities. Mr. McKenzie reviewed the League s 2016 three Strategic Goals which prioritize (1) Improving funding for transportation infrastructure (2) Securing additional affordable housing resources and (3) Developing policy on local revenue modernization. Mr. McKenzie discussed his recent participation in successful and constructive meetings with Governor Brown, leaders of the State Assembly and Senate and several key policy leaders. Mr. McKenzie was joined by fellow League Executive Officers and expressed that the meetings demonstrated improved relations that will make for a constructive legislative year. Mr. McKenzie provided a briefing on the Leagues new Healthcare Marketplace, expected to rollout in July The Healthcare Marketplace aims to provide the same or better insurance offerings to active and retired employees with far more choices, including new ways to work with Medicare and address their unique situations. Mr. McKenzie explained that the League is committed to working with providers to help cities and retirees to successfully use the program. More choices will provide better outcomes for active and retired employees. Dan Carrigg, League Legislative Director and Michael Coleman, League Fiscal Policy Advisor provided an overview of the Governor s proposed FY budget. Mr. Carrigg noted that this year s budget proposal contains good fiscal news for cities overall. Mr. Coleman reviewed the state s revenue sources, bond obligations, and proposed spending in the Governor s proposed budget of $170.7 billion. Mr. Carrigg expressed that the Governor s proposal stresses fiscal prudence with a focus on planning for a future recession. Jennifer Whiting, Assistant Legislative Director, updated the membership on recent efforts to improve and increase state transportation funding and gave an update on federal issues of importance to cities. Ms. Whiting indicated there continues to be progress made on efforts to secure additional transportation

2 funding. The Brown administration and Legislature will be focused on the issue throughout this legislative year. On federal issues, Ms. Whiting was excited to announce that congress approved a five-year, $305 billion transportation bill. In addition, the Federal Aviation Administration (FAA) released its guidelines for the registration of unmanned aircraft (Drones) and the League has submitted a letter in response to the interim guidelines requesting that the registration requirements be strengthened in the final guidelines. Rony Berdugo, League Legislative Representative, briefed members on public works and additional transportation issues including the Road Charge Pilot Program headed by the California Transportation Committee which is studying the potential use of a road charge in lieu of a gas tax. Mr. Berdugo also discussed anticipated legislation which will aim to regulate street parking and local authority on parking violations. In addition, Mr. Berdugo noted that there may be legislative action taken to curb the abuse of disabled parking placards. Kendra Harris, League Legislative Representative, briefed members on expected legislation regarding homelessness and the identification of funding sources for affordable housing. Ms. Harris noted efforts by Senate Pro Tempore, Kevin de León to provide funding to build housing for the homeless and mentally ill. In addition, this legislative year there will be attention given to group homes, vacation rentals, and local control over massage businesses. Jason Rhine, League Legislative Representative, informed attendees of the Governor s proposals for the use of Cap and Trade funds, issues pending decision by the State Water Resources Control Board, and ongoing discussions on organic waste diversion. Mr. Rhine highlighted the proposed uses of cap and trade funds that will benefit cities, including a local government pot dedicated to disadvantaged communities which place in the top five percent of all communities designated as disadvantaged. In addition, there will be a continued focus on weatherization, urban greening, and energy efficiency programs. Tim Cromartie, League Legislative Representative, provided an update on public safety matters, including the League s active effort to secure passage of AB 21 (Wood), the bill lifting the March 1 deadline for local government to have marijuana cultivation ordinances in place. Also discussed was the need to defend local control gains made via the marijuana legislation enacted in the past legislative year, and a measure AB 1564 (Williams) to address deficiencies in the 911 emergency response system. Mr. Cromartie also mentioned the League s monitoring of state and federal legislation regarding drones and funding for law enforcement programs. Mr. Cromartie highlighted that the Governor s Budget proposal allocates $26 million for Law Enforcement Grants intended to increase positive outcomes between local police and the homeless community, persons with mental health issues, and high-risk youth populations. The proposal includes $6 million for competitively awarded grants to local law enforcement agencies to strengthen their relationships with local communities. Dane Hutchings, League Legislative Representative, provided a briefing on issues related to labor, pensions, and elections. Mr. Hutchings brought attention to the pending case before the U.S. Supreme Court, Friedrichs v. CTA, which will impact union organization and dues collection. There is indication that legislation will be introduced this legislative year intended to offset the anticipated ruling, which will impact cities. In addition, Mr. Hutchings noted the Governor s continued focus on addressing unfunded retiree healthcare and pension liabilities in which cities will be a large stakeholder in the discussions. Further, members were informed of potential legislation intended to require local governments to disclose more information to the public as well as improve their data storage and encryption standards. II. Welcome and Introductions Chair, Cindy Silva welcomed the members and asked that they introduce themselves and inform the members how long each has served on the HCED committee.

3 Public Comment No public comment. Overview of Parliamentary Procedure and Roberts Rules The Chair went over the basic parliamentary procedures that will be followed by the committee. Committee Orientation The Chair and staff went over how the committee would operate including an explanation of the process by which the committee will make recommendations to the League board for final approval and action. III. IV. Presentation: Homelessness in California Speaker Cindy Cavanaugh, Assistant Deputy Director of Homeless and Housing Policy at California Department of Housing & Community Development outlined for the committee the scope of homelessness in California. The 2015 statewide point-in-time count found 115,738 men, women and children homeless in the state, 73,699 of them unsheltered. She explained shifts in federal and state funding and policy. Cavanaugh also discussed the implementation of recommendations by the State Policy Academy to Reduce Chronic Homelessness, a stakeholder effort that included representation from the League and local governments, and the implementation of the goals set out by the group. Finally, she took questions and comments from the group Legislative Update and Upcoming Issues Strategic Goals for 2016 The committee reviewed the League s 2015 Strategic Goals. Every fall, the League hosts a meeting which includes the officers and directors of the divisions, departments, diversity caucuses, policy committees, and board of directors with the goals of adopting strategic goals for the year. This year there are three main strategic goals: 1) Increase Funding for Critical Transportation and Water infrastructure, 2) Improve Housing Affordability, and 3) Update the Local Government Tax Structure to Respond to the New Economy and Stimulate Economic Growth. Homeless Working Group Update & Affordable Housing Legislation Kendra Harris, League Legislative Representative, gave an overview of last year s legislation on homelessness and the activities of the informal homelessness working group comprised of city staff and elected officials from about 20 cities of varying size and geography. The working group has held three hour-long conference call discussions about what cities are doing to address homelessness, the challenges they face and their policy recommendations. The group has developed proposed policies that would give the League the tools to engage on legislation. The committee was presented with a series of proposed guiding policy principles, listed below. The committee voted unanimously to recommend Board approval of these principles, with two additions. League staff should advocate for: Additional funding for: o emergency housing funds (El Niño), o affordable housing, o mental health (beds, supportive services, outreach), o permanent supportive housing, o first-responder training, o homelessness-prevention programs, o drug treatment; Funding that is as flexible as possible and that incentivizes regional cooperation when applicable; Housing placement as a priority of programs that discharge people from care / incarceration;

4 Policies or legislation that enhances the use of housing vouchers; Shelter crisis law flexibility; Changes in problematic policies, regulations and program requirements identified by the working group. The policy committee voted to add the following items: The League should advocate for the funding and streamlining of intake programs; League staff should take into consideration the discussion about concerns and ideas related to homelessness held by committee members. Sponsored Legislation Overconcentration of Group Homes Kendra Harris provided an update on the League s adoption of a resolution at 2015 annual conference to pursue legislation to stop the overconcentration of alcohol and drug group homes in residential neighborhoods. League staff is identifying an author and finalizing bill language. Medical Marijuana and Recreational Use Initiative Update Tim Cromartie, League Legislative Representative, provided an update on the League s active effort to secure passage of AB 21 (Wood), the bill lifting the March 1 deadline for local government to have marijuana cultivation ordinances in place. Also discussed was the need to defend local control gains made via the marijuana legislation enacted in the past legislative year. Going forward there will likely be additional issues around patient access and the legality of local regulations. In regards to ballot initiatives, a proposed marijuana legalization initiative ( Parker Initiative) would allow adults 21 years or older to buy, use, and have up to one ounce of marijuana. This effort is being funded by a coalition of legalization proponents, including Sean Parker. This initiative provides local control as local municipalities will be able to regulate cultivation and sales. The League will continue to monitor related ballot initiatives. Massage Regulation California Massage Therapy Council (CAMTC) Sunset Review Kendra Harris gave a verbal update on the League s continued involvement with CAMTC and efforts to pursue legislative fixes. This committee will be provided updates as items move forward. Cap and Trade Funding Priorities Jennifer Whiting, Deputy Legislative Director, updated the committee on the League s active negotiating on the Cap and Trade Funding Priorities. The League was looking for feedback on the programs that require an annual appropriation (which is 40% of the total allocation) and what are our priorities. Committee members discussed the recommendation list. The committee discussed additional concerns like: streamlining the application processes; having the funds allocated towards the best projects; and possible increase in seats on the Strategic Council. Motion to move and second the adoption of staff recommendations. Unanimous Support. V HCED Policy Committee Work Program The committee reviewed the committee work plan and added the following: 1. Regional Housing Need Allocation (RHNA) Reform CEQA Reform 3. Sunset review of CAMTC 4. Group homes 5. Marijuana updates

5 The committee also requested an update and presentation on post-redevelopment tools for community revitalization, including the use of Tax Increment Financing (TIF). Staff will work to provide an update and presentation to the committee which will include details of AB 2 (Alejo; Community Revitalization Authority) and additional revitalization tools. The committee also expressed interested in learning more about the rules guiding RDA dissolution and successor agencies. Motion to move and second the adoption of Committee Work Program. Unanimous Support. VI. Update of Existing Policy & Guiding Principles The Existing Policy and Guiding Principles were included in the HCED policy packet to give members a better understanding of how positions are formulated in the committee and as a reference for new policy that was made and approved over the last two years. The existing policy and guiding principles for the HCED committee remain the same and there were no changes. Motion to move and second the adoption of the Existing Policy and Guiding Principles. Unanimous Support VII. Next Meeting: Friday, April 8, 2016, Handlery Hotel, San Diego

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