HomeMy WebLinkAboutLRC 06-01-2026 Youtube and Zoom TranscriptWEBVTT
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Conference Room A: I don't share many things these days, but please start
the meeting. I like to call this, January, June 1st, Legislative Review
Committee meeting to order.
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Conference Room A: So… let's see…
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Conference Room A: Let's start with a, I guess, roll call, so… Chair
Wong. Here? Ms. Chair Zhao? Here.
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Conference Room A: I guess everyone's here. It's alright, we will begin.
So, any oral communications?
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Conference Room A: We have… No speakers. Alright, and let's do the
approval of the minutes, so…
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Conference Room A: Let me… the nomination for the approval of the
minutes? Motions of 4. Any changes? Of course. All right, motion for
approval, second. Roll call. Chair Wong? Aye. Vice Chair Chao? Aye.
Motion carries unanimously. Okay, moving into new business.
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Speaker 1 (Conference Room A): Legislative update, let's take a look at
the legislative update and see if there's any, input on the bill tracking
list, as well as positions from SCC, SCC, Cities Association, UMB, Cal
Cities. So let's take a look.
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Speaker 1 (Conference Room A): Chairman, I haven't suggest we have any
additional SMB? Oh, great question. We are lobbyists.
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Speaker 1 (Conference Room A): Don't see any. Yes, we do have Jason. Oh,
let's bring him in. Jason?
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Speaker 3 (Conference Room A): update. Yeah.
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Conference Room A: Let's do an update.
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Jason Gonsalves: I… can you… Oh, and I can…
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Speaker 1 (Conference Room A): I hear you now, finally. Good. How about
that?
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Jason Gonsalves: And I think Paul is in the waiting room as well. I don't
know if it gives me a camera option.
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Jason Gonsalves: But.
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Speaker 1 (Conference Room A): Can we bring them in? Let's see.
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Speaker 1 (Conference Room A): Huh?
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Conference Room A: It should be able to use their cameras.
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Speaker 1 (Conference Room A): Let's take a look.
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Speaker 1 (Conference Room A): I'll join with them.
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Jason Gonsalves: Audiobook.
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Speaker 1 (Conference Room A): Let me join with them, see what we got
here.
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Speaker 1 (Conference Room A): So…
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Jason Gonsalves: Oh, here we go. Join us, panel.
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Conference Room A: C. Oh, good. There we go.
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Speaker 4 (Conference Room A): Oh.
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Speaker 1 (Conference Room A): Just food.
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Speaker 1 (Conference Room A): There we go. Welcome, welcome. There we
go.
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Jason Gonsalves: Thank you.
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Paul Gonsalves: Good afternoon, everyone.
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Jason Gonsalves: So, as far as, just very briefly, on the update, as you
likely know, I'll just… the high level, the governor did,
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Jason Gonsalves: releases may revise. There's been about a $16 billion
divide between the governor and the legislative analyst, nonpartisan
legislative analysts.
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Jason Gonsalves: The good news, I guess, in the near term is the
governor's numbers are actually proving to be, quite accurate. The state
general fund has benefited from about $6 to $8 billion in
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Jason Gonsalves: I'll call it new money. It's the over-reliance, or
reliance on capital gains and the ultra-wealthy, the NVIDIA IPOs, as an
example. And the projection for this budget year is for that revenue to
continue to flow because of OpenAI, ChatGPT, and
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Jason Gonsalves: And probably most notably, SpaceX IPO on the horizon,
so…
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Jason Gonsalves: On the budget, we will have a adopted budget by June
15th, but the revenues, again, in the near term, are…
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Jason Gonsalves: looking more positive. Now, in order for all of those
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Jason Gonsalves: IPOs to do well, there's the flip side, which is how
many jobs get displaced when OpenAI, ChatGBT, and the others come online?
So there is that counterbalance that
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Jason Gonsalves: The legislature, governor on down, are starting to pay
attention to.
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Jason Gonsalves: And… and we'll see how that goes, but obviously labor
unions and others are… share those concerns.
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Jason Gonsalves: On the… on the list, I know you have quite a bit of
materials in the packet. I would note that
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Jason Gonsalves: Last week, Friday was the deadline, but they adjourned
late Thursday in the Assembly for all bills to pass out of the House of
Origin.
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Jason Gonsalves: And so, the majority of bills did pass, the two on… The…
legislative tracking list.
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Jason Gonsalves: that I would note that did not pass.
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Jason Gonsalves: or… and they're not key ones, but AB 2192, it was a
sales and use tax exemption for farm equipment by Assemblymember Jeff
Gonzalez. That did not pass. And then Assemblymember Corey Jackson had AB
2214 for government…
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Jason Gonsalves: governance finance deposits, and that bill also did not
pass, and they hadn't moved since January, so no surprises there, but…
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Jason Gonsalves: Otherwise, the…
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Jason Gonsalves: I guess, heightened level of scrutiny for bills and
vetting is going to start between now and July 2nd, because July 2nd is
the deadline for bills to pass out of the policy committees in the second
house. So, all assembly bills have to get out of the Senate Policy
Committees and Senate bills out of the Assembly by July 2nd.
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Jason Gonsalves: Lastly, they… from July 2nd to August 2nd, they go on
summer recess.
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Jason Gonsalves: And I know it sounds like a lot of dates, but the key
date, August 31st, is sine die, meaning final adjournment.
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Jason Gonsalves: So if you do… if you do the calendar math, we're down to
8 weeks of session and about 1,800 bills.
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Jason Gonsalves: So I'll stop there, and happy to answer any questions.
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Speaker 1 (Conference Room A): Oh, any questions on the bills that you're
looking at, or the ones that were in?
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Speaker 1 (Conference Room A): So, when we walk in, when…
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Speaker 1 (Conference Room A): we have a list right now of, like, those
bills that are highly likely to pass, highly likely not to pass, right?
We kind of have some kind of probability on those as well.
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Jason Gonsalves: Yes.
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Speaker 1 (Conference Room A): packing list, so…
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Jason Gonsalves: Yes.
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Speaker 1 (Conference Room A): Okay.
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Speaker 1 (Conference Room A): So…
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Jason Gonsalves: And again, all of which have…
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Jason Gonsalves: The bulk of the bills, once you get past appropriations,
they moved out of the houses of origin, but it will be a higher bar to
pass, if you will, for second house. You get a natural deference when you
have an assembly bill and you're in front of your assembly committees
versus an assembly bill in front of the Senate.
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Jason Gonsalves: So, the numbers will pare down here shortly.
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Speaker 1 (Conference Room A): Okay. Yeah, let's take a look at the
tracking list, then, and see if there's anything that you want to add,
Liang, or if anyone else here has a suggestion on the tracking list. If
there's anything that pops your mind, we'll just go through them.
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Speaker 1 (Conference Room A): If there's anything you want to change,
add, track…
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Speaker 1 (Conference Room A): And do we get input as well from the rest
of the council members as to what their interests were as well?
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Speaker 1 (Conference Room A): So, council members, can share with staff,
but primarily it's the LRC that will… Okay. I didn't know if there was
any input that we were reaching out to them on. Yeah, I haven't heard
anything, have you? Okay. Yeah. Alright, just want to make sure we got
their input, if they had anything through staff that they might have
suggested. So, how is the…
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Speaker 1 (Conference Room A): likelihood for that town… townhong…
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Speaker 2 (Conference Room A): act to pass.
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Speaker 2 (Conference Room A): That will streamline.
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Speaker 2 (Conference Room A): The townhome development.
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Jason Gonsalves: Yeah, kind of the buy right for townhomes as.
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Speaker 2 (Conference Room A): Alright, yeah.
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Jason Gonsalves: We'll call it. It did move out of the assembly.
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Jason Gonsalves: rather swiftly, 47-0 out of the Assembly, 33
abstentions, but I would note there were no no votes. It will…
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Jason Gonsalves: In the Senate, it'll face, I think, a little steeper
climb, but it does have a fair amount of momentum. It's Assemblymember
Sharon Quirk-Silva, and she's partnered with Assemblymember Buffy Wicks.
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Jason Gonsalves: who is Chair of Appropriations, so…
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Jason Gonsalves: It has a fair amount of momentum.
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Conference Room A: So it will likely pass.
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Speaker 1 (Conference Room A): Are we saying it would likely pass?
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Jason Gonsalves: I would say it's, chances of passage I would put at 60-
40. I mean, we're still working against it.
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Jason Gonsalves: But,
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Jason Gonsalves: Cal Cities is asking for amendments to it, rather than
just outright opposition, and there's about 10 to 12 cities, so if local
governments start to kind of raise up more, I think our chances of
stopping it improve, but it's… it's been moving
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Jason Gonsalves: with a lower level of opposition than, for example, the
TOD bill, SB79, last year.
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Jason Gonsalves: So… It, you know, the members…
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Jason Gonsalves: that have, I'll call it, buyer's remorse on SB79, this
may be a little tougher vote, the Senate.
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Speaker 2 (Conference Room A): I wouldn't call, I wouldn't call this…
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Jason Gonsalves: Slam dunk. I'm sorry, I'm sorry, go ahead.
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Speaker 2 (Conference Room A): What kind of buyer's remorse you have
heard?
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Speaker 2 (Conference Room A): For SB79.
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Jason Gonsalves: Well, what's happened is, for example, Assemblymember
John Harabedian out of the Burbank area, he has legislation looking to
try to clean it up for the impacts on his district. Assemblymember Josh
Hoover, out of the Folsom area, who voted for SB79, now has a bill to
exempt
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Jason Gonsalves: Historic downtown districts. Actually, it doesn't
exempt. It allows you to move your high-density, high-rise.
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Jason Gonsalves: housing to an alternative site, away from your downtown
historic district. So, there's examples of members that, since having
voted for it.
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Jason Gonsalves: Are hearing from their local communities about the
impacts, and…
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Jason Gonsalves: And it's generating the buyer's remorse I mentioned.
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Speaker 1 (Conference Room A): Are there any other ones that you want to
take a look at? I can have a list, so…
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Speaker 2 (Conference Room A): How about those ones that I think it's
trying to fix the… The housing element process?
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Speaker 2 (Conference Room A): I think there was one, Cal City supported,
to,
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Speaker 2 (Conference Room A): About the review, the review process.
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Jason Gonsalves: Oh.
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Speaker 2 (Conference Room A): Maybe, let me just ask, what bills are
there that's trying to fix the current housing element process, and what
they… do you have a summary, and what they are looking right now?
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Jason Gonsalves: There's several bills regarding the RHNA process, and,
if you don't mind, afterwards, I'll send a summary, because there's quite
a few in that space. Last year, Cal City sponsored a bill, I want to say
it was AB650, by Assemblymember Pappin, that, was vetoed.
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Jason Gonsalves: But,
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Jason Gonsalves: there's still efforts to try to put some… for example,
there was legislation in Los Angeles County to delay the RENA process,
because so many of the cities
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Jason Gonsalves: didn't have certified housing elements. So there's a
number of bills in that space, but what I will say is there's a number of
efforts trying to
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Jason Gonsalves: put some consistency and predictability in the RHNA
process, because oftentimes what local agencies and what members are
hearing is.
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Jason Gonsalves: City of Cupertino could apply… submit your RENA,
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Jason Gonsalves: documents and your plans, and you get a list of 5
revisions, and you make those revisions, and then all of a sudden you get
3 more that were not part of the original review. So they're trying to
provide some predictability and consistency to the
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Jason Gonsalves: the RENA process, and… and… Not have moving targets, if
you will.
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Speaker 2 (Conference Room A): Great, a summary later will be great.
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Jason Gonsalves: Happy to.
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Speaker 1 (Conference Room A): So, on the tracking list, I mean, I think
the important thing is, as we're thinking about these, are there certain
ones that we will be talking to or bringing folks up to when we get to
the next item number 4? That's all, so…
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Speaker 1 (Conference Room A): We can save that for the priorities
portion, which is fine. I just wanted to make sure. I know we've got a
big group that are cracking here. I don't know if there's anything that
we've seen here that, that we would…
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Speaker 1 (Conference Room A): That we would want to take off of.
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Speaker 1 (Conference Room A): Or we would want to add. I think that's
probably a more important piece. So…
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Speaker 1 (Conference Room A): Was it AB175051, the missing middle
townhomes one that you were looking at, or is that a different one?
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Speaker 1 (Conference Room A): Oh, yeah.
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Jason Gonsalves: Yeah, that was the one we referred.
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Speaker 1 (Conference Room A): I think that's the one you're looking for,
yup.
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Speaker 2 (Conference Room A): So I'm looking at this, AB736.
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Speaker 2 (Conference Room A): It's Affordable Housing Bond Act, so this
will be…
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Speaker 2 (Conference Room A): Wait, it's just… to be approved by voters
in June 2nd, 2026.
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Speaker 2 (Conference Room A): So this is now for the November ballot.
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Jason Gonsalves: This bill has been sitting in the Senate, so it will
have to be amended should the author decide to move forward with it, and
that's a negotiation, really, that's come down to the author and, the
governor and legislative leadership.
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Jason Gonsalves: So, it hasn't had any… Recent activity, per se, but…
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Jason Gonsalves: your point's a very good one. It's obviously not going
to be on the ballot tomorrow, and they'll have to
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Jason Gonsalves: amend it, ultimately, should they decide to move forward
with a $10 billion bond for either November or sometime thereafter.
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Speaker 2 (Conference Room A): Though… So, it sounds like this bill might
not move forward.
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Speaker 2 (Conference Room A): What's, I'm just wondering, just curious,
what's the holdup or resistance?
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Speaker 2 (Conference Room A): That's…
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Jason Gonsalves: It's really negotiations between the governor and
Assemblymember Wicks and the Speaker and the Pro Tem. It's on the Senate
floor. It could move down to the Governor very quickly if they reach an
agreement, but the holdup is $10 billion of debt service
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Jason Gonsalves: Given the state's general fund, deficit and challenges.
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Speaker 2 (Conference Room A): Oh, so the governor has some concerns,
likely.
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Speaker 2 (Conference Room A): about it.
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Jason Gonsalves: That's where the whole… yes, the governor has, you know,
given Prop 4 and the climate bond that was just passed by the voters, and
the
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Jason Gonsalves: $5, $6 billion, I believe, that will be going to the
market, the debt service on that. It's a matter of how much bandwidth
does the state have for.
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Speaker 2 (Conference Room A): Or…
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Speaker 2 (Conference Room A): Just along the same line, are there any
other similar… Bond major, going to the… November election.
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Jason Gonsalves: The… as far as, bonds.
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Jason Gonsalves: none that come to mind. The cap and invest program could
ultimately
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Jason Gonsalves: end up becoming a bond. There's been talk of…
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Jason Gonsalves: Trying to do something for the insurance market on bonds
and healthcare, given the…
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Jason Gonsalves: So, insurance and healthcare would be the other
potential
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Jason Gonsalves: Areas that a bond measure could come about because of
the
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Jason Gonsalves: Healthcare impacts of federal dollars potentially drying
up, about a billion dollars worth.
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Jason Gonsalves: But thus far, nothing that is…
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Jason Gonsalves: Move beyond where the housing bond efforts are.
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Speaker 1 (Conference Room A): I have two questions, are you okay?
Alright. I have two questions. AB1976, streets and Highways, pedestrian
bicycle facilities. How far along is that, and is that something we
should take a position for? This is basically the one that makes a
pedestrian mall, officially a pedestrian mall, with no other way of
recourse to bring it back.
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Paul Gonsalves: That bill is currently in the Senate.
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Paul Gonsalves: So that one passed out of the Assembly, is now in the
Senate, waiting to be heard in Policy Committee.
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Conference Room A: Okay.
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Jason Gonsalves: And it's, again, Assemblymember Buffy Wicks, Chair of
Appropriations, so, she does a lot in this space, and…
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Jason Gonsalves: It does have some momentum.
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Jason Gonsalves: The pedals are moving.
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Speaker 1 (Conference Room A): Literally, yes. And then on the land use
housing, AB1997, this is the one for just streamlining things through
CEQA more quickly, for housing development approvals. Why… I just want to
know what's the…
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Speaker 1 (Conference Room A): I understand why we're taking a position
of opposition. Who's behind this one?
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Jason Gonsalves: That bill's the housing advocates as well. It passed out
of the Assembly 71-3.
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Jason Gonsalves: And so it too has a significant amount of momentum.
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Jason Gonsalves: behind it, I was pulling the AIDS Healthcare Foundation
to sponsor.
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Paul Gonsalves: Yep.
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Jason Gonsalves: And no opposition thus far.
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Speaker 1 (Conference Room A): Okay. Something could happen on the other
end, but not sure.
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Speaker 2 (Conference Room A): Do you have anything else? I, I do.
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Speaker 1 (Conference Room A): Keo, go ahead, go ahead, jump in.
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Speaker 2 (Conference Room A): I'm wondering about the e-bike, bills. I
think in the Cities Association, we had… they had, one bill on e-bike.
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Speaker 2 (Conference Room A): I abstained at the time, because I wasn't
sure if we have policy on that, but I later checked that we do…
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Speaker 2 (Conference Room A): Our legislative platform does, say we want
to…
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Speaker 2 (Conference Room A): support e-bike regulations, so I'm just
wondering, do you know? Because that's an issue that has been coming up
in our community.
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Speaker 1 (Conference Room A): AB2346 is the one, I believe.
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Speaker 1 (Conference Room A): 2346? Yeah, look up 2346, it's about
getting speed limits for e-bikes.
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Speaker 1 (Conference Room A): And regulating a speedometer. If you sell
an e-bike, it has to have a speedometer as well.
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Speaker 1 (Conference Room A): I think there's another one, I can't
remember which one. I'm trying to pull it up right now.
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Jason Gonsalves: 2346 is a key one, appropriately noted, and the author
is the chair of the Assembly Transportation Committee. I know this falls
under item number 4, but as part of our upcoming schedule of meetings in
Sacramento on June 9th, we do have a meeting with Assemblymember Wilson,
who's the
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Jason Gonsalves: again, the author… or the chair of transportation, I'm
the author of that.
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Jason Gonsalves: legislation, there's been a number of… I think your
community, it's no surprise to you, obviously, as well, but a number of
tragic incidents. 80-year-old man was hit a few weeks back.
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Jason Gonsalves: In Orange County, by a 14-year-old on an e-bike, the
district attorney's bringing charges against the mother.
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Jason Gonsalves: And so it was in the city of Lake Forest.
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Jason Gonsalves: So…
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Jason Gonsalves: there's going to be an ongoing and continued focus on e-
bikes, given the number of… I know you… here in the city of Davis, had a
fatality, someone struck on an e-bike, it's just…
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Jason Gonsalves: I guess I'm old enough. We used to call those mopeds.
You pedal the pedals until the engine turned on, and they're… they're
motorcycles now. I mean, some of them are exceeding 40 miles an hour.
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Speaker 2 (Conference Room A): Yeah, so what's the second bill you
mentioned? Sorry.
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Speaker 1 (Conference Room A): You mentioned two bills. I thought there
was a second one, I haven't found it yet. I'm looking for it.
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Speaker 2 (Conference Room A): EB2346 is a speed limit one.
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Speaker 2 (Conference Room A): Yes. There is one that the City
Association looked at, that's SB1167.
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Speaker 2 (Conference Room A): I think that has to do the… with the
classification of the… whether they… it will… some of them do require
driver's license, and I think another issue is some of the e-bike is not
even
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Speaker 2 (Conference Room A): powered by pedal, it's powered by a
throttle. And…
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Speaker 2 (Conference Room A): So there are different classifications,
and oh yeah, it's very hard to distinguish between different classes of
e-bike. So they are trying to make better marking, I think.
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Jason Gonsalves: And you'll see on the one you noted, which is also
moving, SB1167, it is looking to require a vehicle identification number
for the bikes that exceed the 3750 watts, but it also has
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Jason Gonsalves: about 8 to 10 co-authors, both Democrats and
Republicans, and the point being is they're garnering
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Jason Gonsalves: bipartisan interest on e-bikes, so if it's agreeable to
the committee, I'll add a report for RENA, as previously mentioned, but
also, if you're okay with it, I'll send you a listing of active e-bike
bills, because there's about
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Jason Gonsalves: to 12 months.
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Speaker 2 (Conference Room A): That would be great. That would be great,
yeah.
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Jason Gonsalves: Happy to…
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Speaker 1 (Conference Room A): I have a question, then. We'll just keep
swapping. On AB2576, this is the one on transit-oriented housing. Is this
really just designed to protect the historical districts, or there's
something else to it?
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Jason Gonsalves: 576, there's more to it, and there's ongoing discussions
with
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Jason Gonsalves: Senator Weiner on the bill. The one that is for transit
districts, and I should know these numbers offhand, but
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Jason Gonsalves: I'll tell you the bill number, it's…
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Speaker 1 (Conference Room A): It's about adding exclusions for
historical districts, which is great. I just want to make sure that's
what we're supporting, not the notion of a transit-oriented development
district, so…
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Jason Gonsalves: It's AB 2415, and that's by Assemblymember Hoover.
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Speaker 1 (Conference Room A): Okay, I'm gonna take a look.
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Speaker 1 (Conference Room A): Let's see
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Speaker 1 (Conference Room A): Alright, I don't see that one, but 2415?
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Speaker 1 (Conference Room A): So… For the most part, these were
numerically ordered.
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Speaker 1 (Conference Room A): I'm looking at here… Oh, I'm looking at
the Cities Association one, sorry about that, that's why.
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Speaker 1 (Conference Room A): Got it.
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Speaker 1 (Conference Room A): Let's stop this one… Yup, got it.
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Speaker 2 (Conference Room A): At least, also the fire safety is of
focus, or what kind of bills are there for fire safety?
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Speaker 2 (Conference Room A): evacuation routes.
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Jason Gonsalves: There's… Quite a few…
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Speaker 2 (Conference Room A): And then also bills to address insurance
costs of… yeah. There's 2517, right, that Council had supported, I think.
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Speaker 2 (Conference Room A): What other bills are there?
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Jason Gonsalves: there's SB828, And that's having to do with explosives
and… And… basically the Sparto… tragedy. Assemblymember Bennett has
AB1143.
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Jason Gonsalves: Having to do with fire safety. And then there's talk of…
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Jason Gonsalves: And Assemblymember Calderon had legislation seeking to
do so, but it hasn't really materialized. But there's talk of trying to
come up with a plan to require
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Jason Gonsalves: the California Fair Plans to provide insurance
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Jason Gonsalves: that captures more than just fire safety. So right now,
if you're in the fair plan, you also have to have a separate policy for
your contents and other exposure. They're trying to require
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Jason Gonsalves: There's talk of requiring the fare plan to
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Jason Gonsalves: to cover all aspects. Problem is, the Fair Plant's one
of the most expensive, if not the most expensive insurance option.
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Jason Gonsalves: And… The concern is if you require them to cover your
contents or any other exposure.
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Jason Gonsalves: It will even become that much more cost prohibitive.
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Speaker 2 (Conference Room A): Won.
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Jason Gonsalves: So it's, it's kind of an ongoing… Conversation around
the fare plan.
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Speaker 2 (Conference Room A): Got it.
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Speaker 1 (Conference Room A): Going back to AB 1732, which is, CEQA
exemptions for public higher education housing developments,
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Speaker 1 (Conference Room A): What is the rationale to support that one?
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Speaker 1 (Conference Room A): Oh, it's the YIMBYs that are supporting
that one. Got it. I'm reading that. I'm reading it backwards. Okay.
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Speaker 1 (Conference Room A): Thank you. Alright, this makes sense.
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Speaker 1 (Conference Room A): Jeremy.
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Jason Gonsalves: Homo.
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Speaker 1 (Conference Room A): Public comment? Yeah, let's go to public
comment, thank you. Okay, perfect. We have one remote speaker, Jennifer
Griffin.
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Speaker 1 (Conference Room A): One moment while I share my screen.
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Conference Room A: Okay. Welcome, Jennifer.
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Conference Room A: Hi, Jennifer!
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Jennifer Griffin: Hi, I have a really bad cold, and I had an upholsterer
person here, so I, I appreciate you all having this, and it's been
extremely helpful to see the list of the bills, and hello to the
Gonzalezes again.
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Jennifer Griffin: I don't… I apologize, but I don't know if you all
discussed
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Jennifer Griffin: I think it's AB1751, it might be. It's Cork Silva, and
I think it's called the Missing Middle Townhouse.
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Jennifer Griffin: I'm sorry, it's, Sharon Corks Silva, it's AB.
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Jennifer Griffin: 1751, and I apologize if it was on your list or not,
but this one's called the Missing Middle Town Home Own Ownership Act, and
it's… I've really been concerned about this one since it has come out of
the gate.
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Jennifer Griffin: And, I really… I… the part about making the townhouses
would be, what is that where you just have them approved with
ministerial?
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Jennifer Griffin: I am no CEQA.
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Jennifer Griffin: And I'm really, really concerned that we're going down
a road that we don't want to. We have fire danger. We just can't ignore
CEQA. There's too much potential danger and damage.
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Jennifer Griffin: And I think that this is sort of… I believe that, Buffy
Wicks is the other…
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Jennifer Griffin: person, I think, was the co-sponsor, and Ms. Quirksova
is from Southern California. I just think that this bill, if it was not
on one that you all were discussing, it really should be on the list,
because I think this one is a no-go.
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Jennifer Griffin: We don't want to go down the road where we're
completely
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Jennifer Griffin: throwing our hands up and saying, oh, it's… the state
says we don't have to worry about CEQA. Well, we know that that's a no-
brainer. You have to worry about CEQA. You have to worry about fire. You
have to worry about environmental damage. You have to worry about
earthquakes. So, I really hope
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Jennifer Griffin: If you, have not discussed it, that it's put on the
list.
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Jennifer Griffin: And that it, is something that you all are aware of.
I'm… I'm a bit concerned because Mr. Ahrens evidently, had, has a bill
that's about splitting a lot. I don't know if you discussed that or not.
I don't know if it's good or bad, but I am really concerned about any
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Jennifer Griffin: any more ways to try to split lots. They're getting
small enough as it is. And I appreciate your help, with this. I'm also
concerned about any bills that are trying to
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Jennifer Griffin: take away CEQA. I'm also… I like Mr, our senator, Mr. I
can't remember his name. If he has the bill that's trying to help give
cities more time with their housing element. I… I really, I really think
that it's important. So thank you so much, I appreciate it.
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Speaker 1 (Conference Room A): Thanks, Jennifer. We did talk about 1751,
so it is on the list, and I think you're talking about Josh Becker's
bill, so I think I'll look that up, and then the Aaron, Patrick Aaron's
bill is AB2005, which is the lot-splitting bill. Any comments there, Vice
Chair?
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Speaker 2 (Conference Room A): So 1751, we already, took a position?
Yeah, took a position to oppose, right? We took a position, yup, to
oppose.
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Speaker 2 (Conference Room A): For the last split one, I don't know what
is the…
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Speaker 1 (Conference Room A): 2005, I believe. I'm looking it up right
here.
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Speaker 1 (Conference Room A): Baby.
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Speaker 1 (Conference Room A): Housing developments, urban lot split,
owner occupancy. This bill changes urban lot split rules by giving
applicants two owner occupancy options, adding notice and recording
requirements for one option, and limiting local agencies from imposing
extra conditions on urban lot split prospects. So…
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Speaker 1 (Conference Room A): And you have… you would let an applicant
either promise to live in one unit for at least 3 years, or agree to sell
both parcels within a 3-year occupancy requirement for the buyer, while
also allowing certain LLCs or trusts to qualify, creating civil penalties
for some violations.
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Speaker 1 (Conference Room A): The short of it.
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Speaker 2 (Conference Room A): Change, does that mean they… The city will
then be required to allow lot split on any lot.
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Speaker 1 (Conference Room A): Trying to look at the restrictions here.
So, let's pull up the bill.
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Jason Gonsalves: Yeah, it's basically what they're seeking to do is
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Jason Gonsalves: I'll call it provide flexibility or dilute the owner
occupancy requirements of SB9, so… and they're using estate planning, so
if you're
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Jason Gonsalves: If the property is owned through a family trust or
something along those lines, you can have some additional flexibility to
meet the homeownership
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Jason Gonsalves: Residency requirements.
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Jason Gonsalves: So if you're one of the trustees to a living trust or
LLC, you would qualify as a… Owner-occupant.
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Speaker 2 (Conference Room A): Oh, because many people do put their home
on their living trust.
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Speaker 1 (Conference Room A): They're part of the trusts, yes, that's
correct. Yeah, I see. But I'm not sure. The question is, do you want more
lot splits, and…
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Speaker 1 (Conference Room A): I think that's the broader question on
that.
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Speaker 2 (Conference Room A): this object. But I think,
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Speaker 2 (Conference Room A): If the lots are large enough on…
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Speaker 2 (Conference Room A): I think we already have rules to allow
lots split, and we… I do support lot split when you have large enough
lots, but if you have lots that are already very small.
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Speaker 2 (Conference Room A): So my question is, does that force us to…
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Speaker 2 (Conference Room A): Applied everywhere, or does the city still
can set, here's our standard for minimum lot size to allow lot split?
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Speaker 1 (Conference Room A): And Jason, I believe there are objective
standards that are built to that bill. I think there are objective
standards that are built to the bill, but can we verify that?
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Speaker 1 (Conference Room A): Yes.
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Jason Gonsalves: There are, and a lot of those standards really are in
current law under SB9, you know, the minimum setbacks and number of units
and so forth for urban splits.
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Speaker 2 (Conference Room A): So, it's a current… so it's trying to
really clarify as benign, right?
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Jason Gonsalves: Exactly, and it's the… particularly the owner occupancy
requirements of SB9 to allow
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Jason Gonsalves: owner occupancy to be qualified LLC participants,
trustees, and so forth.
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Speaker 2 (Conference Room A): Yeah, if that's… that, I… I think it… it…
I think it's okay, yeah.
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Speaker 2 (Conference Room A): Some of it.
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Speaker 2 (Conference Room A): Anything else that pits, anything else you
would like,
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Speaker 2 (Conference Room A): It can be a summary of a specific area.
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Speaker 1 (Conference Room A): I think right now, I mean, the current
things, there's anything, as the Vice Chair was saying, anything that's
related to a wildfire risk, and around wildfires and fire safety and
evacuation is probably top of mind.
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Speaker 2 (Conference Room A): The summary, maybe, on those bills.
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Speaker 1 (Conference Room A): to get a summary of those bills. I think
that's… that's… I always get a broad list here, that's probably item
number one. Item number two is anything that's related to housing,
elements, the housing bills, and I think there's element number three,
which is related to insurance and access to insurance, because those two
are coming together.
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Speaker 1 (Conference Room A): And the fourth one is anything that's
related to any kind of environmental areas. I think there's interest
around things around PFAS, things around waste and mitigation, any kind
of rules like that.
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Speaker 1 (Conference Room A): Anything else you would add? E-bikes. And
e-bikes, and e-bikes, and e-bikes.
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Jason Gonsalves: I do have e-bikes as well. Absolutely.
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Speaker 2 (Conference Room A): So one comment regarding the bill list
for… in Attachment B.
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Speaker 2 (Conference Room A): I see you're separating the legal ones and
the MB ones.
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Speaker 2 (Conference Room A): And it's hard to know when you read the
document, position support is from which organization.
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Speaker 2 (Conference Room A): So, it would be nice if position support
is league position support, or NBA position support, that way it's…
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Speaker 2 (Conference Room A): easier to understand. It's not a city
position, support.
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Speaker 1 (Conference Room A): No, I was looking at that and realized
that he does have its… It's a group.
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Speaker 2 (Conference Room A): But you need to really scroll up and down
to find out which group.
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Speaker 1 (Conference Room A): league here. Yeah. And then, yeah, I was…
at first, I was like, why are we supporting X? Yeah. And I realized what
it was. So, yes.
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Speaker 2 (Conference Room A): public will have similar confusion, so
it'd be nice if, attachment B, when it says position, specify league
position.
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Jason Gonsalves: Got it.
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Jason Gonsalves: Well, we may want to do it… I see how it says League,
but underneath, we'll put
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Jason Gonsalves: Cal City's support or watch.
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Jason Gonsalves: Going forward.
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Speaker 2 (Conference Room A): What I mean is, for each bill.
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Jason Gonsalves: Yes.
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Speaker 2 (Conference Room A): Because the league is all the way up
there, it's hard, when you look at the bill, to know what is the
position, whose position is it?
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Jason Gonsalves: Understood.
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Speaker 1 (Conference Room A): Yeah.
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Speaker 1 (Conference Room A): I mean, for all intents and purposes, put
a page break on page 20, and just say, these are the bills from the
league, and these are the bills from EMB.
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Jason Gonsalves: I was gonna say, we could even break them out into two
separate reports.
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Speaker 1 (Conference Room A): That would save you some time. You'd
probably see it.
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Speaker 2 (Conference Room A): It's okay to always run the reports, just
position needs to be clear which…
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Speaker 2 (Conference Room A): position. It's not the city position,
yeah.
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Jason Gonsalves: Yep.
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Speaker 1 (Conference Room A): I'm trying to figure out… there's one
about open spaces that came about with, grass and watering, that one that
we were… I don't know if we're tracking that one. It's… I'm trying to
think about which one it is, I'm gonna take a look, hunt for it, but it's
about a non-functional turf. Oh, yeah, I remember that.
314
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Speaker 2 (Conference Room A): I thought that one already passed,
315
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Speaker 2 (Conference Room A): Did it pass? I thought last year there was
a bill, non-inactive or non-functional turf in… owned by the city or in
HOA have to be converted to drought-tolerant plants. I thought that one
already passed.
316
00:36:23.630 --> 00:36:24.880
Speaker 2 (Conference Room A): I'm not sure where we are.
317
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Conference Room A: Why?
318
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Jason Gonsalves: There was legislation on Drought resistance and… and
turf.
319
00:36:34.810 --> 00:36:38.789
Jason Gonsalves: There's been several bills in that space. I'm not
certain which one.
320
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Speaker 1 (Conference Room A): AB1572, HOAs with over 5,000 square feet
of turf, effective January 1st, 2029.
321
00:36:47.410 --> 00:36:56.319
Speaker 1 (Conference Room A): And we… it's already passed, but there may
be some types of exceptions, and we're hoping to figure out if there's
any exceptions for fire hazards.
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00:36:56.610 --> 00:37:06.739
Speaker 1 (Conference Room A): So, sometimes it seems like it's non-
functional turf, but it's providing a barrier as part of a hardening
exercise. There should be some kind of… we don't know who to talk to
advocate for
323
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Speaker 1 (Conference Room A): That level of an exception to that.
324
00:37:10.100 --> 00:37:17.409
Speaker 1 (Conference Room A): So, for example, if that's providing a
fire buffer, it's really not non-functional turf, it actually serves a
safety, health and safety function.
325
00:37:17.580 --> 00:37:22.120
Speaker 1 (Conference Room A): Councilmember, did you say AB1572? I
believe so, it's AB1572.
326
00:37:22.770 --> 00:37:24.330
Jason Gonsalves: Yeah, from 2023.
327
00:37:27.860 --> 00:37:31.620
Speaker 1 (Conference Room A): It's starting to hit the HOAs in our area,
especially the ones on the hillside.
328
00:37:34.620 --> 00:37:41.570
Speaker 1 (Conference Room A): Excuse SB6762, I don't know what that is.
329
00:37:41.980 --> 00:37:44.740
Speaker 1 (Conference Room A): Which one? SB? 66?
330
00:37:50.340 --> 00:37:54.199
Speaker 1 (Conference Room A): This is amending local government
authority on residential funding.
331
00:37:56.730 --> 00:38:07.460
Speaker 2 (Conference Room A): Yeah, so 1532, I think it includes the
city government, so any city-owned parks or any area. I was looking at
the memorial Park.
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00:38:07.520 --> 00:38:17.069
Speaker 2 (Conference Room A): the lawn that's next to the tennis court,
right? It's a really nice area, it's not really active, but if we have to
convert all that to
333
00:38:17.150 --> 00:38:30.400
Speaker 2 (Conference Room A): drought-tolerant. Yeah. It will…
Compliance timeline for state on the AB1572 is January 2027. That would
be a lot of cost. That's one thing. Another thing is,
334
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Speaker 2 (Conference Room A): Yeah.
335
00:38:33.580 --> 00:38:38.189
Speaker 2 (Conference Room A): The city has a lot of area we really need
to take care of.
336
00:38:38.850 --> 00:38:52.019
Speaker 1 (Conference Room A): Yeah, and 676 basically says… first, we're
like, hey, everyone put synthetic turf. This one says, hey, you can kind
of talk about what type of synthetic turf goes on for public health… for
safety, reasons that's there. That's what's driving that.
337
00:38:54.010 --> 00:38:55.719
Conference Room A: That's… that's… yeah.
338
00:38:58.480 --> 00:39:06.610
Speaker 2 (Conference Room A): I don't know, any other comments? So, for
this one, that was passed in 2023. There has been no effort to try…
339
00:39:06.770 --> 00:39:12.920
Speaker 2 (Conference Room A): revise or modify it a little? You are not
aware of?
340
00:39:13.350 --> 00:39:16.570
Jason Gonsalves: not that I'm aware of, but I can do some additional
341
00:39:16.700 --> 00:39:29.210
Jason Gonsalves: Digging, and it's something, particularly if there's a
fire safety element to it, we should be communicating with your
legislators and or looking at amending the statute to provide, you know,
emergency management considerations.
342
00:39:29.810 --> 00:39:33.230
Speaker 2 (Conference Room A): So maybe that's something you can bring up
at the meeting.
343
00:39:33.235 --> 00:39:45.115
Speaker 1 (Conference Room A): Yeah, love to add that for item, Agenda 4,
when we talk about Agenda 4. When we talk about Agenda 4, which is the
upcoming legislative visit, let's add that to that. Reminder to come back
to that conversation point.
344
00:39:45.565 --> 00:39:50.145
Speaker 1 (Conference Room A): So… Okay, so… Anything else on your end?
No. Okay.
345
00:39:51.235 --> 00:39:55.705
Speaker 1 (Conference Room A): All right, thank you for, providing that
list.
346
00:39:56.055 --> 00:39:58.464
Speaker 1 (Conference Room A): No objections, let's move into item number
3.
347
00:39:58.745 --> 00:40:15.534
Speaker 1 (Conference Room A): This is, considered adoption of a
position, Assembly Bill 1821, Pacheco, CPRA, agency response times, adopt
a support position, AB1821, authorize the mayor to send letters to the
state legislature. Let's take a look at the summary report. So…
348
00:40:15.955 --> 00:40:16.625
Speaker 1 (Conference Room A): Huh.
349
00:40:16.865 --> 00:40:20.024
Speaker 1 (Conference Room A): Jason, would you like to do a summary of
your summary report?
350
00:40:21.860 --> 00:40:24.979
Jason Gonsalves: I'm pulling it up, but this bill has
351
00:40:25.850 --> 00:40:29.239
Jason Gonsalves: been… it has support, as noted in the… in the…
352
00:40:29.930 --> 00:40:38.060
Jason Gonsalves: memo, attached, has support from local agencies
throughout the state. Cal Cities is the sponsor of the bill.
353
00:40:38.280 --> 00:40:43.130
Jason Gonsalves: It's seeking to provide additional
354
00:40:43.710 --> 00:40:51.470
Jason Gonsalves: I guess, safeguards and flexibility for local agencies
as it pertains to
355
00:40:52.470 --> 00:41:00.390
Jason Gonsalves: Public Records Act requests and response times. So, it's
seeking to extend from 10 days to 14 days.
356
00:41:00.570 --> 00:41:04.660
Jason Gonsalves: under… specified circumstances.
357
00:41:05.360 --> 00:41:14.959
Speaker 1 (Conference Room A): Yeah, from my understanding, it was about
gaming the system to actually, if you did it on a holiday versus on a
business day, just to make sure that was equivalent to business days
versus the holiday calendar.
358
00:41:14.960 --> 00:41:19.290
Speaker 2 (Conference Room A): I think it makes sense to count to
business days.
359
00:41:20.320 --> 00:41:21.800
Speaker 2 (Conference Room A): Chang Hye-dong…
360
00:41:22.710 --> 00:41:30.759
Speaker 1 (Conference Room A): Yeah. Do we need to vote? Do we need to
vote on that matter if we're making the recommendation to support that?
Yeah, sure. Want to make sure.
361
00:41:31.415 --> 00:41:35.915
Speaker 2 (Conference Room A): So I move to support the bill. Oh, sorry,
before we go into a motion… Public comment.
362
00:41:35.915 --> 00:41:48.384
Speaker 1 (Conference Room A): I just wanted to ask the question at this
point, right? And then public comment, let's see if there's any public
comment up there. Thank you. We have no speakers here. Okay, sounds good.
No public comment. Would you like to entertain your motion?
363
00:41:48.595 --> 00:41:49.695
Speaker 1 (Conference Room A): Yeah, motion 2.
364
00:41:49.695 --> 00:41:51.075
Speaker 2 (Conference Room A): will approve?
365
00:41:51.080 --> 00:41:53.070
Speaker 1 (Conference Room A): Okay, I second. Any comment?
366
00:41:54.410 --> 00:41:57.460
Speaker 1 (Conference Room A): No comment, okay? Roll call vote, please.
367
00:41:58.240 --> 00:42:00.600
Speaker 1 (Conference Room A): Vice Chair Chow? Aye.
368
00:42:00.605 --> 00:42:02.944
Speaker 2 (Conference Room A): Aye. Looks you carries unanimously.
369
00:42:04.405 --> 00:42:05.275
Speaker 2 (Conference Room A): Okay?
370
00:42:05.810 --> 00:42:15.629
Speaker 1 (Conference Room A): With that, let's move to item number 4,
discuss upcoming legislative visit to Sacramento on June 9th, and see
what the legislative day looks like. Turn it back to you, Jason and Paul.
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00:42:17.440 --> 00:42:28.630
Jason Gonsalves: Well, thank you. We're looking forward to June 9th.
Obviously, this part doesn't involve us, but I did see a kind of a
kickoff time of 7.30 a.m. per Asteroid's
372
00:42:28.630 --> 00:42:40.079
Jason Gonsalves: coordination, meeting at City Hall, heading to
Sacramento. Our first meeting thus far is scheduled for 11.15, and I'll
send a follow-up with this itinerary.
373
00:42:40.380 --> 00:42:55.200
Jason Gonsalves: So, Assemblymember Lori Wilson at 1115, it'll be 15 to
20 minutes, but she's the Chair of Assembly Transportation Committee,
has, legislation in the e-bike space and transit-oriented development.
374
00:42:55.570 --> 00:42:59.590
Jason Gonsalves: From there, we have an 1145 with Assemblymember Patrick
Ahrens.
375
00:42:59.830 --> 00:43:06.740
Jason Gonsalves: 12 o'clock to 1 o'clock lunch, and then we've scheduled
1.15 for
376
00:43:07.010 --> 00:43:09.760
Jason Gonsalves: Chris Hill, who is kind of the…
377
00:43:09.880 --> 00:43:22.140
Jason Gonsalves: I've known him for so long, and his official title, he
may be Deputy Director of Finance, but he does all things local
government within the Department of Finance. He's been around going back
to the early ERAF shifts of the 90s.
378
00:43:22.250 --> 00:43:35.130
Jason Gonsalves: And the thought was to discuss, you know, the sheriff's
contracts, the city's uniqueness as a known low property tax city, you
know, sales tax revenues, and so forth.
379
00:43:35.410 --> 00:43:41.200
Jason Gonsalves: And then at 2 o'clock with Senator Josh Becker, And
then,
380
00:43:41.980 --> 00:43:52.000
Jason Gonsalves: planning for heading back, or wrapping up the day around
the 3 p.m. hour, the only caveat we have, and whether that's just before
the 11,
381
00:43:52.210 --> 00:43:56.029
Jason Gonsalves: 15 meeting, or sometime in the middle,
382
00:43:56.200 --> 00:44:04.489
Jason Gonsalves: getting a meeting with HCD, because I know we wanted to
have a sit-down and discuss issues, and that meeting's in the works, so…
383
00:44:04.720 --> 00:44:06.169
Jason Gonsalves: Should be a full day.
384
00:44:06.610 --> 00:44:07.470
Jason Gonsalves: from a…
385
00:44:07.760 --> 00:44:14.469
Jason Gonsalves: I'd call it 10.30, 11 a.m. till 3 p.m. is kind of the
window we're looking for, or looking to fill up.
386
00:44:15.560 --> 00:44:17.880
Speaker 1 (Conference Room A): Makes sense. Are there any other…
387
00:44:17.900 --> 00:44:36.449
Speaker 1 (Conference Room A): adjacent, senators or assembly persons
that we should be talking to as well while we're here. Not in our
district, but adjacent enough that support our positions, or any in
Orange County that we should, orange County, SoCal, San Diego area that
we should, seek support from as well.
388
00:44:37.150 --> 00:44:53.659
Jason Gonsalves: The key one, really, that we've identified, although
we're open to suggestions, was Lori Wilson, given she's in Solano County,
and she's Chair of the Transportation Committee. On the Senate side, we
could look at some of the other members, but
389
00:44:53.820 --> 00:44:56.599
Jason Gonsalves: Senator Becker really is probably the…
390
00:44:58.080 --> 00:45:04.620
Jason Gonsalves: part and parcel for city's priorities as your senator as
well, but someone like Dave Cortese could also be helpful.
391
00:45:05.060 --> 00:45:06.480
Conference Room A: Okay, sounds good.
392
00:45:07.470 --> 00:45:13.569
Speaker 1 (Conference Room A): we don't necessarily need to go up there
to meet them. I mean, since they're in our area, we can definitely meet
them here while we're at it as well, so I just want to make sure.
393
00:45:13.850 --> 00:45:18.370
Jason Gonsalves: Yeah, and with Becker and Aaron's, we do have them
scheduled for meetings.
394
00:45:18.520 --> 00:45:34.659
Jason Gonsalves: Kind of the approach being to see you in Sacramento,
know it means it's priority enough, you make the trip, but also to not
have them here from Lori Wilson, that Cupertino was in meeting with them,
and we didn't reach out to your own legislators, so there's kind of a
natural deference there as well.
395
00:45:34.900 --> 00:45:40.649
Speaker 1 (Conference Room A): Makes sense, makes sense. So… Any other
comments? Anything from you, Vice Chair?
396
00:45:41.265 --> 00:45:43.784
Speaker 3 (Conference Room A): No. Okay, still have any?
397
00:45:43.785 --> 00:45:44.405
Speaker 1 (Conference Room A): Things we should add?
398
00:45:44.835 --> 00:45:49.044
Speaker 3 (Conference Room A): No, I think we have a good agenda for the
Sacramento day, so… and thank you.
399
00:45:49.050 --> 00:45:53.139
Speaker 4 (Conference Room A): Jason and Paul, for your help, and I know
Astrid's out, but…
400
00:45:54.810 --> 00:46:14.289
Speaker 1 (Conference Room A): I would like to add the wildfire risk
piece to the agenda, if possible, so… and I think that's just the piece.
So, and I think on the wildfire risk, there are multiple, multiple
options, so it's the turf, it's the insurance access, it's the,
evacuation routes, and… and, yeah, insurance is… insurance is the big
one.
401
00:46:14.390 --> 00:46:18.400
Speaker 1 (Conference Room A): Trying to figure out who's gonna be able
to… Solve the insurance crisis.
402
00:46:20.290 --> 00:46:34.749
Speaker 1 (Conference Room A): I was meeting with a, the developer this
morning, and it was actually interesting, because he mentioned to me that
he couldn't get… he was having a hard time getting fire insurance for his
own property, in another adjacent city, so…
403
00:46:35.010 --> 00:46:36.930
Speaker 1 (Conference Room A): And I thought that was quite interesting.
404
00:46:38.760 --> 00:46:39.780
Jason Gonsalves: It's been a…
405
00:46:40.390 --> 00:46:48.170
Jason Gonsalves: Ongoing challenge throughout the state, with very little
consistency, if any, as to who loses their policies, who gets
406
00:46:48.400 --> 00:46:53.900
Jason Gonsalves: put on the fair plan, and so forth. I mean, it's a…
Nightmare, to say the least.
407
00:46:54.870 --> 00:46:58.890
Speaker 3 (Conference Room A): So… Okay.
408
00:47:01.440 --> 00:47:08.150
Speaker 2 (Conference Room A): Okay, a question. So, regarding our low
property tax state.
409
00:47:08.510 --> 00:47:13.870
Speaker 2 (Conference Room A): it's a result of these bills, right? So…
410
00:47:14.110 --> 00:47:19.079
Speaker 2 (Conference Room A): What is a legislative… is it posi… is
there a possible…
411
00:47:19.510 --> 00:47:26.899
Speaker 2 (Conference Room A): A possible legislative fix, so we get fair
share of our own property tax.
412
00:47:28.650 --> 00:47:44.879
Jason Gonsalves: There's a possibility for a legislative fix, and your
city has kind of an interesting or perhaps tortured history on the new
and low space. Really, you were a low property tax city as a result of
Prop 13, and not having levied a large
413
00:47:45.090 --> 00:47:51.689
Jason Gonsalves: property tax, so after the voters passed Prop 13 and
1978, and this is,
414
00:47:52.080 --> 00:48:07.840
Jason Gonsalves: the legislature bailed out those that caused the
problem. So, if you had a high property tax rate, you got a larger share
of ABA, the bailout. And those that had a low or no property tax rate
were locked in, and consequently, Cupertino was locked in
415
00:48:08.130 --> 00:48:20.950
Jason Gonsalves: at a very low rate, you may have even been a no property
tax city at that time. And then in the late 90s, when they did the no and
low property tax legislation to allow all no and lows to go to 7 cents.
416
00:48:21.390 --> 00:48:25.380
Jason Gonsalves: then Senator John Vasconcelos capped
417
00:48:25.590 --> 00:48:33.169
Jason Gonsalves: Santa Clara County's cities at 4%, and said he didn't
want his rich cities to get 7 cents.
418
00:48:33.400 --> 00:48:41.749
Jason Gonsalves: misinformed at best, you know, God bless John, but, you
can have wealthy residents, it doesn't mean the city's wealthy. And,
419
00:48:42.690 --> 00:48:44.060
Jason Gonsalves: And so…
420
00:48:44.420 --> 00:48:55.150
Jason Gonsalves: Later, fast forward, probably, this is really to your
question, Madam Vice Mayor, is the legislature then came back with
legislation by then-Assemblymember Rebecca Cohen.
421
00:48:55.290 --> 00:48:59.779
Jason Gonsalves: And it was a negotiated agreement between the county and
the four
422
00:48:59.910 --> 00:49:15.900
Jason Gonsalves: knowing Lowe's in Santa Clara County to allow you guys
to grow from 4% to 7%, which is where you're at now. And, again, it was
negotiated, it's post-Prop 1-8. It happened around, I want to say, 05,
06.
423
00:49:16.040 --> 00:49:25.420
Jason Gonsalves: But it takes a two-thirds vote of the legislature, so
the Rebecca Combe bill received two-thirds vote and allowed you to go to
7%.
424
00:49:26.670 --> 00:49:27.569
Jason Gonsalves: I think…
425
00:49:28.260 --> 00:49:46.409
Jason Gonsalves: based on conversations the mayor's had, I would think,
you know, with the sheriff's contract and the limited amount of property
tax the city receives, it's all kind of part and parcel to the discussion
and your ability to provide housing and public safety services.
426
00:49:46.550 --> 00:49:49.659
Jason Gonsalves: You know, you're getting… 7 cents on the dollar.
427
00:49:50.020 --> 00:49:57.840
Jason Gonsalves: Even though the homes are perhaps higher-end, 93 cents
is… going somewhere else. Schools.
428
00:49:58.180 --> 00:50:00.730
Jason Gonsalves: Local taxing entities, the county, etc.
429
00:50:01.360 --> 00:50:20.629
Speaker 2 (Conference Room A): Yeah, the thing is, the cost of living is
high, that also means the cost of running a city government is very high,
too, because we need to pay salaries for our employees, and everything
that you need to do park maintenance, everything is much… cost is higher.
430
00:50:21.250 --> 00:50:27.640
Speaker 2 (Conference Room A): And so… Did you write a memo about this
history?
431
00:50:29.150 --> 00:50:29.590
Jason Gonsalves: Oh.
432
00:50:29.590 --> 00:50:30.000
Speaker 2 (Conference Room A): on the nose.
433
00:50:30.000 --> 00:50:30.950
Jason Gonsalves: Lowe's?
434
00:50:31.400 --> 00:50:35.380
Jason Gonsalves: There is a… there's a good memo on it. I…
435
00:50:35.650 --> 00:50:37.850
Jason Gonsalves: Did not write it, but,
436
00:50:38.030 --> 00:50:43.640
Jason Gonsalves: Rethinking AB8, as the title the Legislative Analyst
did, Quite some time ago.
437
00:50:43.910 --> 00:50:46.250
Conference Room A: Rethinking AB8.
438
00:50:46.250 --> 00:50:47.900
Jason Gonsalves: I will dig it up in…
439
00:50:48.500 --> 00:50:50.319
Jason Gonsalves: And add it to our follow-up.
440
00:50:51.920 --> 00:50:55.140
Speaker 2 (Conference Room A): I wonder if we can get a summary of…
441
00:50:55.850 --> 00:51:14.789
Speaker 2 (Conference Room A): the history of why we are the low poverty
tax cities, and then I think at least we need to have a doc… an article
that we are able to publish so that the Board of Supervisors, this is
well known. We are
442
00:51:14.930 --> 00:51:20.580
Speaker 2 (Conference Room A): getting much lower property tax than all
the other cities.
443
00:51:20.585 --> 00:51:26.394
Speaker 1 (Conference Room A): on screen, I think I tracked down one.
Here we go. This might help.
444
00:51:26.685 --> 00:51:31.044
Speaker 1 (Conference Room A): I don't know where this came from, I'm
trying to track this down. Who's Carol Atwood? I think she was…
445
00:51:31.045 --> 00:51:35.765
Speaker 3 (Conference Room A): Yeah, so this is the…
446
00:51:35.765 --> 00:51:36.305
Speaker 2 (Conference Room A): excuse.
447
00:51:36.310 --> 00:51:37.090
Speaker 3 (Conference Room A): Oh, shit.
448
00:51:37.090 --> 00:51:39.669
Speaker 1 (Conference Room A): So, this… this was something that was put
out in 20…
449
00:51:40.560 --> 00:51:43.399
Speaker 1 (Conference Room A): 10. So, this might be something useful.
450
00:51:43.400 --> 00:51:46.729
Jason Gonsalves: That's the… you know what, that's very good memo right
there.
451
00:51:46.890 --> 00:51:52.609
Jason Gonsalves: summarizes what I was pointing to, but I think I saw
AB117 towards the bottom, it's not on screen.
452
00:51:52.610 --> 00:51:53.450
Speaker 2 (Conference Room A): Kinda.
453
00:51:54.970 --> 00:51:57.989
Jason Gonsalves: Yep, there's the Santa Clara County
454
00:51:58.260 --> 00:52:05.300
Jason Gonsalves: legislation. AB117 was Assemblymember Cohn's… Rebecca
Cohn's bill to bring you up to 7%.
455
00:52:05.690 --> 00:52:06.950
Conference Room A: That's the ERAF, yep.
456
00:52:08.340 --> 00:52:09.090
Speaker 3 (Conference Room A): So…
457
00:52:12.340 --> 00:52:18.049
Jason Gonsalves: Well, and they're mentioning ERAF because of the ERAF
shifts in the early, late 90s.
458
00:52:18.160 --> 00:52:23.469
Jason Gonsalves: they shifted… Property tax back to schools.
459
00:52:24.420 --> 00:52:39.269
Jason Gonsalves: during the budget deficit, and the second year of the
ERAF shifts, the no and lows were exempted, the no property taxes were
exempted, and then the low property tax cities only received a portion of
what they were receiving, which was a fraction.
460
00:52:39.760 --> 00:52:44.870
Jason Gonsalves: Because of the inequities of AB8 and post-Prop 13.
461
00:52:45.840 --> 00:52:51.630
Speaker 1 (Conference Room A): So I placed this into the Zoom so that we
can put it into the record, so it's gonna pull back, so… Sorry everyone
has that.
462
00:52:54.270 --> 00:52:57.510
Jason Gonsalves: But I do think, you know, as part of the discussion.
463
00:52:57.510 --> 00:52:58.889
Speaker 3 (Conference Room A): gonna update it, man.
464
00:52:59.270 --> 00:52:59.840
Speaker 3 (Conference Room A): Absolutely.
465
00:52:59.840 --> 00:53:10.849
Jason Gonsalves: local level, with contracting and all the other,
factors, not the least of which is disillusion of redevelopment, there's
new property taxes flowing through
466
00:53:11.110 --> 00:53:16.470
Jason Gonsalves: The waterfall, as we call it, what used to be property
tax increment from redevelopment agencies.
467
00:53:16.610 --> 00:53:20.750
Jason Gonsalves: Santa Clara County had the largest agency in the state,
in San Jose.
468
00:53:20.750 --> 00:53:21.240
Speaker 3 (Conference Room A): Anyone?
469
00:53:21.240 --> 00:53:30.339
Jason Gonsalves: And, that's new money that the county's getting, and
you're getting 7% share when it flows back to the other taxing entities.
So…
470
00:53:31.170 --> 00:53:32.120
Jason Gonsalves: Good.
471
00:53:32.500 --> 00:53:40.699
Jason Gonsalves: If I were pretending to be a local elected for 5
minutes, I would put that pot of funding on the table to say, why are we
looking at X percent of
472
00:53:41.200 --> 00:53:48.800
Jason Gonsalves: Contracting cost increase when you're getting all this
new property tax that used to go to redevelopment agencies?
473
00:53:50.400 --> 00:53:52.610
Speaker 1 (Conference Room A): We're not getting that cut, is what you're
saying, so…
474
00:53:52.820 --> 00:53:55.829
Jason Gonsalves: You're getting your 7 cents, and the rest is going.
475
00:53:55.830 --> 00:53:56.780
Speaker 2 (Conference Room A): sentence.
476
00:53:57.250 --> 00:53:58.069
Jason Gonsalves: the others.
477
00:53:58.070 --> 00:54:01.099
Speaker 2 (Conference Room A): So what is this new source of property
tax?
478
00:54:01.900 --> 00:54:06.580
Jason Gonsalves: Well… It's quasi-new. So, what happened when…
479
00:54:06.710 --> 00:54:12.550
Jason Gonsalves: the legislature and ultimately the Supreme Court
eliminated redevelopment agencies in 2011.
480
00:54:13.460 --> 00:54:16.430
Jason Gonsalves: Former redevelopment agencies had what we called
481
00:54:16.580 --> 00:54:22.530
Jason Gonsalves: enforceable obligations. So if you had bonded
indebtedness, you had commitments
482
00:54:22.920 --> 00:54:26.700
Jason Gonsalves: You were able to pay those bonds off, and then…
483
00:54:27.060 --> 00:54:30.050
Jason Gonsalves: Once those bonds got paid off, get paid off.
484
00:54:30.160 --> 00:54:36.400
Jason Gonsalves: The tax increment that's going towards debt service,
which is hundreds of billions of dollars throughout the state.
485
00:54:36.880 --> 00:54:42.609
Jason Gonsalves: then flows through what we call the waterfall. The
legislature calls it the waterfall. That's the property tax
486
00:54:43.100 --> 00:54:57.419
Jason Gonsalves: taxes, the new money, if you will. So, let's just say
you have $100 million in bonded indebtedness, it gets paid off in 2030,
all that debt service that was paying that $100 million bond is now going
to the taxing entities.
487
00:54:57.750 --> 00:55:03.699
Jason Gonsalves: The point being is, Cupertino Unlike all the other
taxing entities, or…
488
00:55:03.850 --> 00:55:08.299
Jason Gonsalves: Unlike the majority of them, you're getting 7% of that
new…
489
00:55:08.940 --> 00:55:18.750
Jason Gonsalves: waterfall, the increment that used to go to debt
service. The county's getting the lion's shares, the school's getting 50%
plus or minus. So.
490
00:55:19.080 --> 00:55:32.190
Jason Gonsalves: It's money that used to go to redevelopment agencies
that's now flowing to the other taxing entities, and it's flowing on a
1978-1979 AB8 formula that is antiquated and outdated at best.
491
00:55:34.140 --> 00:55:37.290
Jason Gonsalves: Other than that, I don't have an opinion on it.
492
00:55:37.650 --> 00:55:39.540
Speaker 2 (Conference Room A): Okay.
493
00:55:39.540 --> 00:55:42.089
Speaker 3 (Conference Room A): A question. So for…
494
00:55:42.090 --> 00:55:51.789
Speaker 2 (Conference Room A): Comparing, let's say, Cupertino gets 7% of
property tax, Mio Pitas gets 15% of their property tax.
495
00:55:52.210 --> 00:56:01.050
Speaker 2 (Conference Room A): Right? Yep. And that means the county gets
7… 8% more of… Our property tax, which…
496
00:56:03.930 --> 00:56:08.660
Speaker 2 (Conference Room A): So where… I mean, where did that 8%… Go.
497
00:56:09.780 --> 00:56:16.439
Jason Gonsalves: Well, it's all based on… the historic shares going back
to 1979 ABA.
498
00:56:16.690 --> 00:56:18.720
Jason Gonsalves: So, AB8 was the bailout.
499
00:56:18.730 --> 00:56:36.499
Jason Gonsalves: So, Cupertino, I would argue, having been responsible
and not having levied large property tax rates on your residents at the
time, you're a more fiscally responsible, we could say conservative
community, and there were 119 throughout the state that had no or very
low property tax.
500
00:56:36.500 --> 00:56:40.960
Jason Gonsalves: So when the legislature, after Prop 13, bailed out.
501
00:56:41.490 --> 00:56:44.900
Jason Gonsalves: The local agencies, because it was either that, or…
502
00:56:45.230 --> 00:56:47.150
Jason Gonsalves: They were gonna have, you know.
503
00:56:47.850 --> 00:56:54.480
Jason Gonsalves: and service cuts throughout California because all the
property taxes were being reined in.
504
00:56:54.790 --> 00:56:56.589
Jason Gonsalves: The legislature bailed out
505
00:56:56.700 --> 00:57:04.840
Jason Gonsalves: local governments, and because you didn't have a high
property tax, you didn't get a high rate. And then they locked everyone
in with ABA, so if you…
506
00:57:05.350 --> 00:57:12.929
Jason Gonsalves: Or, more fiscally, conservative, responsible city. Let's
just say you levied a 3% tax, that's what you got.
507
00:57:13.190 --> 00:57:15.200
Jason Gonsalves: 3% share. If you.
508
00:57:16.430 --> 00:57:18.530
Jason Gonsalves: We had a 40% share like Oakland.
509
00:57:18.650 --> 00:57:20.570
Jason Gonsalves: You got locked in at 40%.
510
00:57:22.600 --> 00:57:28.659
Speaker 2 (Conference Room A): Okay. No, my question is not why it
happens. My question is today.
511
00:57:28.900 --> 00:57:34.680
Speaker 2 (Conference Room A): Let's say property tax for meopitas is, I
don't know.
512
00:57:35.040 --> 00:57:46.300
Speaker 2 (Conference Room A): let's say, 10 million, let's 100 million.
Let's say Milopitas gets 100 million of property tax, and they got 15
million of that.
513
00:57:46.630 --> 00:57:58.499
Speaker 2 (Conference Room A): And we get only $7 million of that $100
million of property tax from our properties, right? So where did that $8
million go?
514
00:57:59.580 --> 00:58:00.660
Jason Gonsalves: Who gets that?
515
00:58:00.660 --> 00:58:03.500
Speaker 2 (Conference Room A): extra more. Who got more?
516
00:58:04.470 --> 00:58:12.990
Jason Gonsalves: Well, everyone's getting their ABA share, so it's not 8
million versus Milpitas versus Cupertino. It's all part of…
517
00:58:13.120 --> 00:58:22.169
Jason Gonsalves: the tax rate area, and the county auditor controller
distributes the property tax based on your proportional share. You could
have a
518
00:58:22.400 --> 00:58:29.969
Jason Gonsalves: A fire district in one community and not in the other,
and that fire district gets a portion of the property tax within that tax
rate area.
519
00:58:30.690 --> 00:58:41.129
Speaker 2 (Conference Room A): No, my question is, for example, if we got
the legislative fix to increase our share from 7% to 15%.
520
00:58:41.130 --> 00:58:41.670
Jason Gonsalves: Yep.
521
00:58:42.960 --> 00:58:44.390
Speaker 2 (Conference Room A): Who would get less.
522
00:58:45.360 --> 00:58:48.270
Speaker 2 (Conference Room A): Because those are the people who are
getting more today.
523
00:58:49.600 --> 00:58:51.450
Jason Gonsalves: And… Who are they?
524
00:58:51.450 --> 00:58:56.570
Speaker 2 (Conference Room A): I don't know. Is it the state? Is it the
county? Is it the fire department?
525
00:58:57.000 --> 00:59:04.089
Jason Gonsalves: Well, it could be all the… it won't be the state and
schools, because Prop 98 constitutionally protects the schools.
526
00:59:04.360 --> 00:59:11.689
Jason Gonsalves: So… During AB117, I think the best way, Vice Mayor, to
answer the question is.
527
00:59:11.960 --> 00:59:19.280
Jason Gonsalves: When we did the Rebecca Cohn legislation, the money
shifted from the county to the no and low property tax cities.
528
00:59:19.710 --> 00:59:32.970
Jason Gonsalves: But you could form, as an example, an enhanced
infrastructure financing district, and negotiate a revenue share, and
that allows you to negotiate with any of the taxing entities as long as
they
529
00:59:33.190 --> 00:59:40.030
Jason Gonsalves: choose to participate at whatever levels are negotiated.
So you can do that under current law without
530
00:59:40.220 --> 00:59:49.810
Jason Gonsalves: legislation, but in the Rebecca Cohn AB117 instance, it
was an agreement where the no-and-low cities assumed
531
00:59:50.430 --> 00:59:55.519
Jason Gonsalves: additional services, I think, with unincorporated kind
of donut hole territories.
532
00:59:55.630 --> 01:00:00.450
Jason Gonsalves: In exchange for a larger share of the property taxes,
and it was negotiated with the county.
533
01:00:01.600 --> 01:00:15.080
Speaker 2 (Conference Room A): So the county is getting more of our
share, basically, because any change means that we are… we need to take
that share from the county. But without any change, that means the county
is getting more of…
534
01:00:15.410 --> 01:00:16.200
Speaker 2 (Conference Room A): Which…
535
01:00:16.370 --> 01:00:26.939
Speaker 2 (Conference Room A): And that's the point we need to make,
right? They are getting more of our share because we were too fiscally
responsible, and now they…
536
01:00:27.690 --> 01:00:34.279
Speaker 2 (Conference Room A): then they… but they are not providing us
more service based on our share, so…
537
01:00:34.285 --> 01:00:44.045
Speaker 1 (Conference Room A): We were locked in at 7%, and other cities
are getting double the amount. I wouldn't say it's 8%, I'd say it's
double the amount, because that's actually what it is.
538
01:00:44.045 --> 01:00:44.805
Speaker 3 (Conference Room A): Depends.
539
01:00:44.805 --> 01:00:47.044
Speaker 2 (Conference Room A): it gets 10%, I think.
540
01:00:47.045 --> 01:00:54.414
Speaker 1 (Conference Room A): Petis get double the amount, which is,
like, 15-16%. And regardless of… So, Auckland is 40%?
541
01:00:55.690 --> 01:00:59.910
Jason Gonsalves: Right around 40%. City of Sacramento's around 30%, yeah.
542
01:00:59.910 --> 01:01:05.330
Speaker 1 (Conference Room A): Alameda County, yes. For Alameda County,
they had 40%, yes. Wow.
543
01:01:05.440 --> 01:01:11.390
Speaker 1 (Conference Room A): But that's because this is only for the
RDA portion, right? This isn't all cost recovery, is it?
544
01:01:11.390 --> 01:01:13.940
Jason Gonsalves: All of the… that's just properties…
545
01:01:13.940 --> 01:01:16.040
Speaker 1 (Conference Room A): Is that all the property tax revenue?
546
01:01:16.040 --> 01:01:18.469
Jason Gonsalves: Free tax revenue through the county.
547
01:01:19.180 --> 01:01:19.790
Conference Room A: Wow.
548
01:01:19.790 --> 01:01:23.079
Jason Gonsalves: Their ABH share is around 40%.
549
01:01:23.400 --> 01:01:25.899
Speaker 1 (Conference Room A): That's some good gardening. That's
sweetie!
550
01:01:25.900 --> 01:01:37.490
Speaker 2 (Conference Room A): unequitable between the cities. That is
something I think we… even the legislators, they probably don't know, and
we need to tell them this is…
551
01:01:38.010 --> 01:01:43.210
Speaker 2 (Conference Room A): We are getting the short end of the stick
because we are too fiscally responsible.
552
01:01:43.940 --> 01:01:51.410
Jason Gonsalves: And you're being… and you're locked into a formula that…
as a matter of fact, when the governor, Jerry Brown, proposed eliminating
redevelopment.
553
01:01:51.870 --> 01:02:08.519
Jason Gonsalves: the legislative analysts put out a report that said
simply eliminating redevelopment agencies and returning the property tax
revenue based on a system that was devised in the 1970s does not reflect
the needs of modern communities. Unfortunately, that's exactly what they
did.
554
01:02:08.660 --> 01:02:09.700
Jason Gonsalves: And…
555
01:02:09.980 --> 01:02:22.829
Jason Gonsalves: again, my argument would be, and I think it's one worth
sharing with your legislators, but also county executives, and that is,
we need a larger share of the property tax, the 7% is disproportionate,
it's inequitable.
556
01:02:22.970 --> 01:02:32.509
Jason Gonsalves: And then the county's immediate response is going to be,
well, where are we supposed to get the money from? We have our own budget
strains, right? And the answer to that, in my mind, is.
557
01:02:32.930 --> 01:02:38.819
Jason Gonsalves: Look at what the redevelopment waterfall is generating
every year in new money.
558
01:02:38.990 --> 01:02:44.080
Jason Gonsalves: As debt service throughout the county, and the state
gets paid off.
559
01:02:44.370 --> 01:02:46.920
Jason Gonsalves: That waterfall's turning into a tsunami.
560
01:02:47.190 --> 01:02:52.789
Jason Gonsalves: And, and it's only going to grow in the near term, next
15 years, as…
561
01:02:52.940 --> 01:02:54.770
Jason Gonsalves: Those bonds get paid off.
562
01:02:55.190 --> 01:03:02.969
Jason Gonsalves: So there's new money the county's getting each year from
former redevelopment property tax increment, and you're getting 7% of it,
is the…
563
01:03:04.320 --> 01:03:09.930
Jason Gonsalves: Because otherwise, unless you look at where the money's
going to come from, They're gonna say…
564
01:03:10.100 --> 01:03:11.379
Jason Gonsalves: We don't have any money.
565
01:03:11.720 --> 01:03:23.010
Speaker 2 (Conference Room A): Who can change that percentage for this
new money from redevelopment agencies? Is that appropriations? Is that
also… we need a legislative fix?
566
01:03:23.440 --> 01:03:26.270
Jason Gonsalves: The legislature could change it statutorily.
567
01:03:26.510 --> 01:03:27.969
Jason Gonsalves: Or…
568
01:03:28.160 --> 01:03:46.830
Jason Gonsalves: the city could enter into if the county was a willing
participant, and the other taxing entities, for that matter, the city
could form an enhanced infrastructure financing district, which has been
done throughout the state, and it allows the county to ship the larger
share of the property taxes based on
569
01:03:47.650 --> 01:03:48.620
Jason Gonsalves: the…
570
01:03:50.040 --> 01:03:58.410
Jason Gonsalves: priorities of the EIFD, the Infrastructure Financing
District. It's basically… it's a redevelopment 2.0, but it allows you to
571
01:03:58.520 --> 01:04:02.940
Jason Gonsalves: To negotiate a larger share of the property tax at the
local level.
572
01:04:02.940 --> 01:04:03.990
Speaker 2 (Conference Room A): Can do that?
573
01:04:05.400 --> 01:04:11.479
Speaker 1 (Conference Room A): So let me take a step back. So basically
what you're saying is the RPTTF,
574
01:04:11.640 --> 01:04:14.449
Speaker 1 (Conference Room A): Right? The Redevelopment Property Tax
Trust Fund.
575
01:04:14.460 --> 01:04:25.700
Speaker 1 (Conference Room A): was used as a mechanism to pay back the $5
billion, to all these loans and guarantees that RDAs were using, and now
that it's almost paid off, these people are just getting…
576
01:04:25.700 --> 01:04:35.049
Speaker 1 (Conference Room A): The counties and entities are just getting
free cash flow coming into them for no reason, as just a cut from the tax
revenue, and we're missing out on it.
577
01:04:35.830 --> 01:04:36.950
Jason Gonsalves: That's exactly right.
578
01:04:37.820 --> 01:04:39.169
Speaker 3 (Conference Room A): That's what I wanted to know.
579
01:04:39.365 --> 01:04:52.114
Speaker 2 (Conference Room A): So we are not missing out, we are just…
We're getting a very, very small share of it. …7% because we are still
getting the short end of the new money. We get the short end of the
current party deck.
580
01:04:52.115 --> 01:04:58.205
Speaker 1 (Conference Room A): How many entities like us would be a… a
tax… donor…
581
01:04:58.915 --> 01:05:01.225
Speaker 1 (Conference Room A): Are we a donor, or… Oh, go ahead, sorry.
582
01:05:01.225 --> 01:05:08.605
Speaker 4 (Conference Room A): I was just gonna, I'm just gonna say if I
can just add to this conversation. So, I think there's some of this,
discussion
583
01:05:09.310 --> 01:05:14.620
Speaker 4 (Conference Room A): That the mayor may have had with, Patrick
Ahrens?
584
01:05:14.840 --> 01:05:23.669
Speaker 4 (Conference Room A): Because of the discussion with the
sheriff's contract, right? So it sounds like there's the West Valley
cities that are the contract cities.
585
01:05:23.800 --> 01:05:28.079
Speaker 4 (Conference Room A): Seem to be at the lowest percentage.
586
01:05:28.080 --> 01:05:28.750
Speaker 3 (Conference Room A): Those are the node levels.
587
01:05:28.750 --> 01:05:29.500
Speaker 1 (Conference Room A): So, yeah.
588
01:05:29.505 --> 01:05:33.564
Speaker 2 (Conference Room A): Once without our own police department,
or…
589
01:05:33.695 --> 01:05:43.875
Speaker 2 (Conference Room A): I don't know, but it looks like the ones
who don't have police department happen to be the ones with 7% of
property tax.
590
01:05:44.475 --> 01:05:50.525
Speaker 2 (Conference Room A): The… Don't know if there's a direct
connection, but maybe that's…
591
01:05:50.685 --> 01:05:56.465
Speaker 2 (Conference Room A): It's why we had low property tax, because
we didn't have our own police.
592
01:05:57.065 --> 01:06:10.304
Speaker 4 (Conference Room A): I don't know the history, but the
questions, if we're talking about in the context of the Sacramento day,
and we do have a meeting with Assemblymember Ahrens, I think we can bring
this up again on what the process might be.
593
01:06:10.615 --> 01:06:12.435
Speaker 4 (Conference Room A): He's aware of this issue.
594
01:06:13.220 --> 01:06:21.899
Speaker 1 (Conference Room A): Yeah, it'd be great to understand on the
legislative side who that is, and then on the executive side, what the
agency is that's responsible for that. I believe that's Accessors, right?
595
01:06:21.900 --> 01:06:27.280
Jason Gonsalves: Well, Department of Finance, and that's part of the
reason for Chris Hill being one of our meetings.
596
01:06:27.590 --> 01:06:30.239
Speaker 3 (Conference Room A): Okay, got it. So we can bring that up.
597
01:06:30.245 --> 01:06:36.474
Speaker 2 (Conference Room A): I think whether it is likely to get it
passed or not.
598
01:06:36.475 --> 01:06:52.575
Speaker 2 (Conference Room A): The fact that we propose it, at least put
it on the record that we are getting the short end, then that inform all
the legislators that this is an issue. They are unwilling to fix it,
fine, but at least they should know.
599
01:06:52.945 --> 01:06:54.075
Speaker 2 (Conference Room A): So…
600
01:06:54.415 --> 01:07:02.245
Speaker 2 (Conference Room A): Even if it's not likely to get two-thirds
votes, why don't we still try to propose a legislative fix?
601
01:07:02.605 --> 01:07:13.914
Speaker 2 (Conference Room A): Yeah, that's… They can deny it, but then
they have to first understand, and then say, no, we…
602
01:07:15.260 --> 01:07:15.700
Speaker 3 (Conference Room A): Yeah.
603
01:07:15.700 --> 01:07:28.530
Speaker 1 (Conference Room A): I think it'll be interesting to see how
many cities are in the same result, like us, that are no low, and ended
up with getting a unfair percentage of the distribution, especially from
RTTPF.
604
01:07:28.770 --> 01:07:31.689
Speaker 1 (Conference Room A): I think that's an actually interesting… Is
there any L-A-O…
605
01:07:31.695 --> 01:07:33.195
Speaker 2 (Conference Room A): report.
606
01:07:33.395 --> 01:07:49.685
Speaker 2 (Conference Room A): that has, this data on, like, Oakland got
40%, or this other city got this number of percent, and this other city
gets very low percent. Is there a report on that kind of…
607
01:07:50.580 --> 01:07:59.670
Jason Gonsalves: A breakdown by cities. We have a listing of the known
lows, which, back in the late 90s, it was about 119 cities throughout the
state.
608
01:08:00.090 --> 01:08:12.180
Speaker 2 (Conference Room A): I would like to know what the other cities
are getting, the… what's the average? What… what the other cities with…
maybe likely our population is getting.
609
01:08:12.610 --> 01:08:19.490
Jason Gonsalves: I will look and see if there's a breakdown on California
cities and the ABH shares throughout California.
610
01:08:20.500 --> 01:08:20.959
Speaker 1 (Conference Room A): That's a…
611
01:08:20.960 --> 01:08:22.699
Jason Gonsalves: That's 482 of them.
612
01:08:22.700 --> 01:08:32.259
Speaker 1 (Conference Room A): That's a tough place, because 119 cities
is really about 24% of the total. Doesn't give you enough of a majority
to actually push for something, but it's a good place to start.
613
01:08:32.660 --> 01:08:34.880
Jason Gonsalves: Well, what I was going to say is, back…
614
01:08:35.140 --> 01:08:43.299
Jason Gonsalves: during the no and low original legislation, which was a
Bill Lockier bill, it was about 119 cities, no and lows.
615
01:08:43.430 --> 01:08:50.380
Jason Gonsalves: But if you fast forward to the 1990s ERAF shifts, After
they shifted property tax.
616
01:08:50.500 --> 01:08:53.340
Jason Gonsalves: Taxes from local governments to schools.
617
01:08:53.490 --> 01:09:08.849
Jason Gonsalves: that number probably ballooned to 250, 300. So, for
example, City of Fontana is not a no-and-low property tax city, but after
ERAF, they now get about 3.4, 3.5% share of the property tax.
618
01:09:08.970 --> 01:09:10.339
Jason Gonsalves: Because they lost it.
619
01:09:11.260 --> 01:09:18.440
Jason Gonsalves: They ended up becoming a no and low as a result of the
ERAF shifts. So the… that number has only grown over time.
620
01:09:19.950 --> 01:09:29.539
Speaker 1 (Conference Room A): Wow. That's good news, and bad news, yes.
Good news from a lobbying perspective, bad news from a… for the cities
and the residents that live there, so…
621
01:09:29.545 --> 01:09:37.064
Speaker 2 (Conference Room A): Another question is our property tax share
paid to the county fire department? I heard that,
622
01:09:37.165 --> 01:09:43.445
Speaker 2 (Conference Room A): I think we are… they are getting, like,
14% of property tax.
623
01:09:43.645 --> 01:09:55.624
Speaker 2 (Conference Room A): double of the city's share, and other
cities, like Campbell, they are on a contract, so they are able to
negotiate what service they even provide. For us.
624
01:09:55.625 --> 01:10:09.134
Speaker 2 (Conference Room A): We hand a double of our property tax to
them. We have no say how they spend them. They can spend anywhere that's
outside of Cupertino. What is any possibility of
625
01:10:09.275 --> 01:10:10.605
Speaker 2 (Conference Room A): Fixing that.
626
01:10:11.065 --> 01:10:18.215
Speaker 2 (Conference Room A): So we get… Our money's worth, or at least
get some of the 14% back.
627
01:10:20.700 --> 01:10:25.960
Speaker 2 (Conference Room A): To move to a contract model, Like, yeah,
what?
628
01:10:26.180 --> 01:10:38.000
Jason Gonsalves: I think you could explore, and it may be a nuclear
option, dissolving the fire district through LAFCO process, and that
probably is not something you'd want to say out loud.
629
01:10:38.360 --> 01:10:48.269
Jason Gonsalves: it could be very difficult, or, again, it becomes a
negotiation, much like AB117 was with the county, the fire district, and
others.
630
01:10:48.390 --> 01:10:56.229
Jason Gonsalves: And then… but legislatively, the answer is two-thirds
vote of the legislature, they can shift all of the property taxes they…
631
01:10:56.460 --> 01:10:58.339
Jason Gonsalves: They want… they can't ship the sales tax.
632
01:10:58.340 --> 01:11:01.390
Speaker 2 (Conference Room A): 10% was determined by the legislator?
Tony.
633
01:11:02.360 --> 01:11:02.680
Jason Gonsalves: What is…
634
01:11:02.680 --> 01:11:03.460
Conference Room A: county.
635
01:11:03.690 --> 01:11:22.880
Jason Gonsalves: it was by the county, and it was more likely part of
AB8. More likely the district existed and received a share of the
property taxes post-Prop 13. There's independent fire districts, and then
there's city-dependent fire districts where you manage them. It sounds
like this is an independent special district, fire district.
636
01:11:24.200 --> 01:11:27.100
Speaker 2 (Conference Room A): But I heard La Zoltos, or…
637
01:11:27.470 --> 01:11:35.410
Speaker 2 (Conference Room A): I think it's the Los Altos, the Los Altos
Hills. They were part of the county fire, and then they got out.
638
01:11:36.200 --> 01:11:39.139
Speaker 2 (Conference Room A): Do you have any knowledge of.
639
01:11:40.850 --> 01:11:52.350
Jason Gonsalves: Not that one specific, but that has happened, and it's
doable. It sounds like Los Altos Hills or Los Altos was contracting with
the county for fire services, and they…
640
01:11:52.520 --> 01:11:53.200
Jason Gonsalves: Either forward…
641
01:11:53.200 --> 01:11:58.749
Speaker 2 (Conference Room A): They were paying part of their property
tax. They got out, so they become contract.
642
01:11:59.070 --> 01:12:04.399
Speaker 2 (Conference Room A): Yep. That's why the lab co-processing. So
they did… it's through the lab co…
643
01:12:04.405 --> 01:12:09.645
Speaker 4 (Conference Room A): I've heard that too, but I'll need to look
into that one. This is a LAFCO.
644
01:12:10.195 --> 01:12:13.654
Speaker 3 (Conference Room A): Anything else we should bring up while
we're on this visit? Okay.
645
01:12:13.660 --> 01:12:26.819
Speaker 2 (Conference Room A): So at least, I think if we know that
process, at least we can try to get it. Whether it's passed through or
not, at least that raise the visibility of the issue to the county.
646
01:12:26.910 --> 01:12:37.210
Speaker 2 (Conference Room A): that they are getting more than our share.
They are getting double of our property tax, and now they should not ask
us for more, something like that.
647
01:12:37.210 --> 01:12:46.330
Jason Gonsalves: Well, Madam Vice Mayor, I think you're… you're
absolutely right. As part of these conversations with Becker and… and
Ahrens, your Senator and Assembly member.
648
01:12:46.580 --> 01:12:47.420
Jason Gonsalves: you know.
649
01:12:47.610 --> 01:12:55.390
Jason Gonsalves: On the natural, they may say, well, the county has
fiscal pressures, as we discussed before, and, you know, they may…
650
01:12:56.190 --> 01:12:59.189
Jason Gonsalves: I think there's an ability to ask them to look at
651
01:13:00.060 --> 01:13:12.050
Jason Gonsalves: The entire picture, not the least of which is the former
redevelopment property tax, and supporting our position, because the
county has new money coming in that can offset your additional sheriff's
contracts, as an example.
652
01:13:12.430 --> 01:13:16.810
Jason Gonsalves: So, if we're able to educate them on the larger
653
01:13:17.210 --> 01:13:20.969
Jason Gonsalves: picture of all the property tax revenue that Cupertino's
654
01:13:21.320 --> 01:13:26.660
Jason Gonsalves: A net donor to the county and other districts, it helps
our argument.
655
01:13:28.050 --> 01:13:29.149
Speaker 2 (Conference Room A): Yeah, I think the…
656
01:13:29.190 --> 01:13:38.729
Speaker 2 (Conference Room A): One argument is they are already getting
8% more of our property tax for their general fund.
657
01:13:38.740 --> 01:13:52.240
Speaker 2 (Conference Room A): And now, when we contract with them, they
do not charge us at cost. They are trying to do full cost recovery for
all the sheriff, contracts.
658
01:13:52.410 --> 01:14:02.000
Speaker 2 (Conference Room A): But, in fact, we are a donor city, we… we
are already paying, they are already getting extra from us, and that
should be taken into account.
659
01:14:03.330 --> 01:14:13.550
Speaker 1 (Conference Room A): Yeah, there's a separate Los Altos Hills
County Fire District, which is separate from the Los Altos one, which
last week just annexed their fire district and back to the county's fire
district, which is an interesting thing to watch, too.
660
01:14:13.555 --> 01:14:15.855
Speaker 4 (Conference Room A): I'm saying I've heard, and I need to look
into it.
661
01:14:15.860 --> 01:14:33.770
Speaker 1 (Conference Room A): Yeah, so Los Altos Hills has a separate
fire district. Los Altos Hill… Los Altos has a fire district where they
just annexed in to the county fire district, so… which is interesting,
they're just paying in. So they went the other way. They basically… Oh,
both things have happened, just so you know. So, yeah.
662
01:14:33.860 --> 01:14:37.429
Speaker 1 (Conference Room A): Okay, anything else to add for the
legislative day?
663
01:14:37.930 --> 01:14:39.050
Speaker 3 (Conference Room A): Is that a public comment?
664
01:14:39.055 --> 01:14:44.334
Speaker 1 (Conference Room A): Yep, let's go to public comment. Okay, we
have one remote speaker.
665
01:14:45.310 --> 01:14:47.400
Conference Room A: Suck while I bring up the timer?
666
01:14:51.510 --> 01:14:53.639
Speaker 3 (Conference Room A): Yeah, I should take a look at this one. I
totally miss this.
667
01:14:54.250 --> 01:14:55.940
Speaker 3 (Conference Room A): I'll see. Okay.
668
01:14:56.700 --> 01:14:58.120
Speaker 3 (Conference Room A): Welcome, Jennifer.
669
01:14:58.270 --> 01:15:04.559
Jennifer Griffin: Yes, hi. I thought you guys had forgotten about me, but
that's okay. I, I learned…
670
01:15:05.720 --> 01:15:20.860
Jennifer Griffin: No, sorry, you don't want my cold. I got it from my
husband. Yes, thank you. I'm just gonna go track back to the, your
legislative day. I think it's really good that you're meeting with our,
671
01:15:21.260 --> 01:15:36.620
Jennifer Griffin: assembly member and our senator, Mr. Ahrens is up for
re-election, and today, you know, this is voting era. And I think… and
Mr. Becker is a senior official, he's been there a while, he's not up for
re-election.
672
01:15:36.620 --> 01:15:41.900
Jennifer Griffin: But I think it's important that both of them remember
673
01:15:41.900 --> 01:15:49.799
Jennifer Griffin: Cupertino, because both of them are new to Cupertino,
we had reapportionment. We had Cortese until just a year ago.
674
01:15:49.800 --> 01:16:04.710
Jennifer Griffin: So, I'm really… the more you can see what they're doing
up there in Sacramento, I'm a bit concerned, because Mr. Ahrens has done
this split-a-lot bill, which I'm really concerned about, but I want…
675
01:16:04.740 --> 01:16:06.460
Jennifer Griffin: I want them to…
676
01:16:06.720 --> 01:16:16.770
Jennifer Griffin: want to come to Cupertino and talk to us about their…
what their vision is. I'm very happy with Mr. Becker, because he seems to
kind of be…
677
01:16:17.140 --> 01:16:23.700
Jennifer Griffin: understanding what Cupertino is, Mr. Ahrens, he's a
nice gentleman, but I'm really not sure.
678
01:16:23.730 --> 01:16:40.920
Jennifer Griffin: And I want to get the good vibes that these two
gentlemen are going to be fighting for Cupertino at the Sacramento level.
I also think it's important that Cupertino sees HCD. We are not happy
with HCD.
679
01:16:40.920 --> 01:16:46.360
Jennifer Griffin: I'm extremely concerned about their power,
680
01:16:46.360 --> 01:17:06.059
Jennifer Griffin: rollout. We're going to be having a new governor in 6
to 7 months, and I really hope that this unholy alliance between Senator
Weiner and the governor, NHCD, just dies. I am ready for new blood in
this. I'm very, very happy that my mother's
681
01:17:06.060 --> 01:17:23.699
Jennifer Griffin: assembly member in Santa Cruz actually had a bill that
is trying to help the cities with their housing element to give them more
time, but I want our administrators, we elected them and sent them up
there. It's not a party. We want them to be
682
01:17:23.700 --> 01:17:46.350
Jennifer Griffin: looking out for everyone in Cupertino, and I… we have a
lot of problems in Cupertino. Retail is going out of town. We have 9
townhouse projects that are eating up land. I don't know if they're all
gonna go. But I… and also now, I remember our redevelopment agency. I
remember when Jerry Brown axed it.
683
01:17:46.350 --> 01:17:54.029
Jennifer Griffin: We lost control of Valco over redevelopment agency. I
think we need to bring the redevelopment agencies back.
684
01:17:54.030 --> 01:17:59.600
Jennifer Griffin: Cupertino had one, but I think it's… it's worth looking
at, so thank you very much.
685
01:18:00.720 --> 01:18:02.710
Speaker 1 (Conference Room A): Thank you, Jennifer. We have no.
686
01:18:02.710 --> 01:18:04.409
Speaker 5 (Conference Room A): remaining speakers, Chair. No more
speakers.
687
01:18:04.410 --> 01:18:05.280
Speaker 1 (Conference Room A): Okay.
688
01:18:06.390 --> 01:18:08.509
Speaker 3 (Conference Room A): Any other comments? Anything on your end?
689
01:18:08.515 --> 01:18:16.754
Speaker 1 (Conference Room A): Okay, well, the next item on the agenda,
which is no meeting. I believe no staff reports, if that's correct. No
staff and committee reports. Anything to add to the future agenda?
690
01:18:20.230 --> 01:18:25.920
Speaker 3 (Conference Room A): Jason and Paul? I think that e-bike bill…
691
01:18:26.980 --> 01:18:32.739
Speaker 2 (Conference Room A): The, the one that we took position on the
City's association.
692
01:18:32.745 --> 01:18:33.784
Speaker 3 (Conference Room A): Put the speed.
693
01:18:33.790 --> 01:18:34.920
Speaker 1 (Conference Room A): Limits and speedometer?
694
01:18:35.160 --> 01:18:35.700
Speaker 1 (Conference Room A): the…
695
01:18:35.705 --> 01:18:38.725
Speaker 2 (Conference Room A): the labeling of the e-bikes.
696
01:18:38.725 --> 01:18:41.675
Speaker 1 (Conference Room A): Types of e-bikes. Licensed for e-bikes,
okay.
697
01:18:41.675 --> 01:18:48.185
Speaker 2 (Conference Room A): 167… And likely, the speed limit, AB2346.
698
01:19:06.490 --> 01:19:20.890
Speaker 1 (Conference Room A): So, future agenda, you'd like to place
that on a list for a recommendation for the mayor to sign? Yeah. Okay,
let's add that to the future agenda item for SB116, support for SB1167,
which is, Senator Blake Spears' bill.
699
01:19:24.870 --> 01:19:25.600
Speaker 3 (Conference Room A): Okay.
700
01:19:25.600 --> 01:19:29.799
Jason Gonsalves: Will do. And I have a series of reports we'll be
following up with as well.
701
01:19:29.940 --> 01:19:31.900
Speaker 2 (Conference Room A): Okay. Okay, thank you so much.
702
01:19:31.905 --> 01:19:32.635
Speaker 3 (Conference Room A): much.
703
01:19:32.640 --> 01:19:36.389
Speaker 1 (Conference Room A): I look forward to seeing you in Sacramento
with Mayor Moore.
704
01:19:36.850 --> 01:19:37.930
Jason Gonsalves: Look forward to it as well.
705
01:19:37.930 --> 01:19:39.020
Paul Gonsalves: forward to it.
706
01:19:39.020 --> 01:19:39.770
Jason Gonsalves: Thank you.
707
01:19:39.980 --> 01:19:41.120
Speaker 1 (Conference Room A): Alright, see you guys. Bye.
708
01:19:41.120 --> 01:19:42.389
Paul Gonsalves: Thanks, have a great day.
709
01:19:42.390 --> 01:19:45.830
Speaker 1 (Conference Room A): Thank you. With that, call this meeting to
adjournment. Thank you.
710
01:19:47.540 --> 01:19:51.590
Speaker 3 (Conference Room A): You know, gavel, but… Alright. Thank you,
Jennifer. Thanks, Jennifer.
711
01:19:51.970 --> 01:19:53.090
Speaker 3 (Conference Room A): But, see…