LRC 06-02-2020Legislative Review Committee Minutes June 2, 2020
CITY OF CUPERTINO
APPROVED MINUTES
LEGISLATIVE REVIEW COMMITTEE
Tuesday, June 2, 2020
2:30 PM
SPECIAL MEETING
ROLL CALL
The meeting was called to order at 2:31 p.m.
Present: Mayor Scharf, Councilmember Chao, City Manager Deborah Feng, Assistant to the
City Manager Katy Nomura, Townsend Public Affairs (TPA)
ORAL COMMUNICATIONS
Jennifer Griffin is concerned about SB 902.
PUBLIC COMMENT (including comments on all agenda items)
This item was not conducted as the Chair decided to take public comments on agenda
items when the agenda items were discussed.
AGENDA REVIEW
This item was not conducted
ACTION ITEMS
1. Subject: Consider adopting a position on the Education Omnibus Trailer Bill with May
Revision Amendments regarding excess Educational Revenue Augmentation Funds
(ERAF)
Recommended Action: Adopt a position opposing the trailer bill’s provisions to
retroactively shift property taxes from counties, cities, and special districts; apply civil
penalties to audited, good-faith actions of county officials; and install the Department of
Finance as the oversight body.
Assistant to the City Manager, Katy Nomura, explains that the City received a request
from the Cities Association to oppose the Education Omnibus Trailer Bill as it pertains
to excess Education Revenue Augmentation Funds (ERAF). TPA explains that this bill
was included as part of the Governor’s May revise. This bill regards excess (ERAF),
which is the funding mechanism put in place for education that gets diverted from
Legislative Review Committee Minutes June 2, 2020
taxing entities. The excess funding gets distributed back to cities, counties and special
districts. This proposal would readjust the calculations for the excess ERAF payments
as well as provide the Department of Finance with civil and penalty procedures to go
back and retroactively recalculate the amount of excess ERAF that was distributed to
cities and counties. Santa Clara County has estimated that the City’s portion of these
funds amount to $292,000.
This item is still up for discussion since the budget is still being considered by both the
Senate and the Assembly. Senator Beall has expressed his opposition for this bill as well
as many other coalitions expressing their opposition to particularly to the retroactive
aspect of this trailer bill. The LRC agreed to oppose this trailer bill and the letter will
specifically mention that the City is opposed to the retroactivity portion of this trailer
bill.
Action Taken:
Mayor Scharf makes a motion to adopt a position opposing the trailer bill’s provisions to
retroactively shift property taxes from counties, cities, and special districts; apply civil
penalties to audited, good-faith actions of county officials; and install the Department of
Finance as the oversight body and authorize the Mayor to send a letter of opposition to
the state legislature. Councilmember Chao seconds. The motion carries unanimously.
FUTURE AGENDA SETTING
The next LRC meeting is scheduled for June 19 at 8 a.m.
ADJOURNMENT
The meeting was adjourned at 3:01 p.m.