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HomeMy WebLinkAbout2021-05-03 Agenda Packet (Revised)City of Huntington Beach File #:21-264 MEETING DATE:5/3/2021 Jynene Johnson of Church of Jesus Christ of Latter Day Saints and member of the Greater Huntington Beach Interfaith Council City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™7 City of Huntington Beach File #:21-363 MEETING DATE:5/3/2021 Mayor Carr to present proclamation for “National Nurses Day” to Fountain Valley Regional Hospital City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™8 City of Huntington Beach File #:21-364 MEETING DATE:5/3/2021 Mayor Carr to proclaim May as Asian American and Pacific Islander Heritage Month and present proclamation to Mary Adams Urashima for her passion for preserving Huntington Beach’s Asian history City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™9 City of Huntington Beach File #:21-365 MEETING DATE:5/3/2021 Mayor Carr to present the “Making a Difference Award” to Rachelle Crachiollo, Corinne Burton and Deanne Mendoza of Teacher Created Materials City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™10 City of Huntington Beach File #:21-366 MEETING DATE:5/3/2021 Mayor Carr to proclaim May 2-8 as National Travel and Tourism Week and present proclamation to Visit HB CEO Kelly Miller City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™11 City of Huntington Beach File #:21-374 MEETING DATE:5/3/2021 Loud and/or Modified Vehicle Exhaust and Street Racing Enforcement City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™12 City of Huntington Beach File #:21-257 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Alisa Backstrom, City Treasurer Subject: Receive and File the City Treasurer's March 2021 Quarterly Investment Summary Report Statement of Issue: Receive and File the City Treasurer’s Quarterly Investment Report for March 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not applicable. Recommended Action: Receive and File the City Treasurer’s Quarterly Investment Report for March 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique the quarterly report. Analysis: Pursuant to Section 17.0 of the City’s Investment Policy, the City Treasurer must submit a quarterly investment report to the City Council. Attached to this staff report are the Quarterly Investment Report for the quarter ending March 31, 2021, along with a PowerPoint presentation. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Treasurer’s Quarterly Investment Report for March 2021 2. Treasurer’s Quarterly PowerPoint for March 2021 City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™13 File #:21-257 MEETING DATE:5/3/2021 City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 City of Huntington Beach Quarterly Investment Report Quarter Ending: March 31, 2021 PREPARED BY: ALISA BACKSTROM, MBA, CCMT, CPFIM CITY TREASURER C OLIN STEVENS, MPP T REASURY ASSOCIATE 49 E C O N O M Y Congress passed $1.9 trillion fiscal stimulus package Economic optimism with rising vaccinations and increased fiscal stimulus Unemployment rate to 6.0% for March, from peak of 14.7% March Consumer Confidence Index to 109.7, its highest reading in a year 50 M A R K E T S Equity Markets YTD first quarter 2021: S&P up 5.8% DJIA up 7.8% Federal Reserve held rates stable at 0-0.25% (since March, 2020) Longer-term Treasury yields rose with increased economic optimism, while 2-year remained fairly flat 51 I N T E R E S T R A T E S Treasury Rates Monthly Averages 3/31/20 –3/31/21 2-yr. Treasury remains flat At 3/31/21: 2-year Treasury: 0.16% 10-year Treasury: 1.74% 52 Investment portfolio is governed by California Government Codes 53600 et seq. Per Section 53600.5 - City Treasurer’s Primary Objectives: 1. Safety of Principal 2. Maintain Liquidity 3. Market Rate of Return (through budgetary/economic cycles) In this order of priority 53 Investment portfolio is governed by California Government Codes 53600 et seq. Per Section 53601 - Specific Allowable Investments include: 1. U.S. Treasuries 2. Federal Agencies: ◦FNMA ◦FHLB ◦FFCB ◦FHLMC 3. Corporate Bonds “A” rated and above 54 Investment portfolio is governed by California Government Codes 53600 et seq. Allowable Investments continued: 4. State of CA “LAIF” pooled account 5. Commercial Paper of highest rating 6. Supranationals: ◦Int’l Bank of Reconstruction & Development “IBRD” ◦Int’l Finance Corp. “IFC” ◦Inter-American Development Bank “IADB” 55 Investment portfolio is governed by California Government Codes 53600 et seq. Additional Investment Limitations per Code: Applicability differs according to security type Maximum maturity of 5 years Maximum percentage of portfolio Minimum quality rating requirements Maximum per issuer requirements 56 Investment Policy Certified by California Municipal Treasurers Association Reviewed Annually by Treasurer and Investment Advisory Board, Adopted by City Council Must Follow Government Codes –can be more restrictive 57 Investment Strategy Per CDIAC “Local Agency Investment Guidelines”: Buy and Hold / Passive investment strategy: Investments are purchased with the intent to hold until maturity However, market forces or operational needs may occasionally require exchange or sale before maturity Prudent investment management = Continuous analysis and fine tuning of investment portfolio 58 Portfolio Summary As of 3/31/21 Investment Type $ in 000's Market Value Book Value Federal Agency Issues 65,327$ 64,141$ Local Agency Investment Fund (LAIF) 39,585$ 39,585$ Treasury Securities 8,247$ 7,980$ Medium Term Notes 20,589$ 20,241$ Corporate Bonds 47,187$ 46,097$ OC Investment Pool 65,229$ 65,229$ TOTAL 246,164$ 243,273$ 59 Investments by Type As of 3/31/21 60 Portfolio Earnings As of 3/31/21 Total Earnings Fiscal YTD Current Year 261,545$ 2,632,945$ Current Budget 100,000$ 1,600,000$ Last Year Actual 437,478$ 3,830,742$ Average Daily Balance 241,726,743$ 233,693,950$ Effective Rate of Return 1.27%1.50% Benchmark *0.14% n/a * 12-month moving average of interpolated 1.5-year treasury Month: March 61 Monthly Activity March 2020 Investment Type $ in 000's Purchases/ Deposits Calls/Maturities/ Withdrawals Federal Agency Issues Local Agency Investment Fund (LAIF) *5,000$ Medium Term Notes - IADB/IBRD Corporate Bonds 3,710$ Treasury Securities OC Investment Pool *49$ 3$ TOTAL 5,049$ 3,713$ *Includes Interest Income 62 Quarterly Activity January -March 2021 Investment Type $ in 000's Purchases/ Deposits Calls/Maturities/ Withdrawals Federal Agency Issues 18,000$ 3,000$ Local Agency Investment Fund (LAIF) *5,034$ 7,000$ Medium Term Notes - IADB/IBRD 5,000$ Corporate Bonds 5,136$ Treasury Securities OC Investment Pool *130$ 10,010$ TOTAL 28,164$ 25,146$ *Includes Interest Income 63 Selected Compliance Requirements No issues of non-compliance INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED % OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS IN COMPLIANCE Commercial Paper 270 days 25%/10%A1, "A" Rating YES State Obligations-- CA And Others 5 years None/10%"A" Rating YES U.S. Treasury Obligations 5 years None None YES U.S. Government Agency Obligations 5 years None None YES IBRD, IFC, IADB 5 years 10%"AA" Rating YES Corporate Notes 5 years 30%/10%"A" Rating YES Local Agency Investment Fund (LAIF) N/A Up to $75,000,000 None YES Orange County Investment Pool (OCIP) N/A Up to $75,000,000 None YES Maximum Maturities No more than 50% of portfolio maturing over 4 years.YES 64 I N S U M M A R Y Safety –No principal losses Liquidity –Sufficient funds for operating needs Effective Rate of Return - March 1.27% FYTD 1.50% Prudently managed –No compliance issues Positive contributor to City – Earnings offset taxpayer funds 65 QUESTIONS? 66 City of Huntington Beach File #:21-356 MEETING DATE:5/3/2021 REQUEST FOR COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Robin Estanislau, CMC, City Clerk PREPARED BY:Robin Estanislau, CMC, City Clerk Subject: Approve and Adopt Minutes Statement of Issue: The City Council/Public Financing Authority regular meeting minutes of April 19, 2021, require review and approval. Financial Impact: None. Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated April 19, 2021, as written and on file in the office of the City Clerk. Alternative Action(s): Do not approve and/or request revision(s). Analysis: None. Environmental Status: Non-Applicable. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1. April 19, 2021 CC/PFA regular meeting minutes City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™67 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, April 19, 2021 4:00 PM - Virtual Location 6:00 PM - Virtual Location Huntington Beach, California 92648 A video recording of the 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 4:00 PM - VIRTUAL LOCATION CALLED TO ORDER ROLL CALL Present: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION ITEMS - None PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS - None A motion was made by Delgleize, second Posey to recess to Closed Session for Items 1 – 3. With no objections, the motion carried. RECESSED TO CLOSED SESSION - 4:02 PM CLOSED SESSION 1. 21-311 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code section 54956.9(d)(1).) Name of case: Brewster (Terri Lynn) v. City of Huntington Beach; OCSC Case No. 30-2020-01160094. 2. 21-332 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Chris Hartman v. City of Huntington Beach, Worker’s Comp. Case No. COHB-14-0306. 3. 21-348 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code section 54956.9(d)(1).) Name of case: Moore (Neal) v. City of Huntington Beach, et al.; OCSC Case No. 30-2019-01071686. 6:00 PM - VIRTUAL LOCATION RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING - 6:10 PM 68 City Council/PFA Regular Minutes April 19, 2021 Page 2 of 15 ROLL CALL Present: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember Peterson INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 4. 21-121 Marcy Tieger of University Synagogue in Irvine and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS 5. 21-316 Mayor Carr called on City Clerk Robin Estanislau to assist with conducting the 4th of July fireworks booth lottery drawing City Clerk Robin Estanislau shared a PowerPoint communication entitled 2021 Non-Profit Firework Stand Lottery, with slides entitled Public High School Winners — Edison High School, Huntington Beach High School, Marina High School, Ocean View High School, Private High School Winner — Liberty Christian High School, Civic Organizations (2), Youth Sports (2), Miss Huntington Beach 2018, Alyssa Welfringer, and Good Luck! City Clerk Estanislau announced that Mara James, the current Miss Huntington Beach was not available to participate in the Firework Stand Lottery, and introduced Miss Huntington Beach for 2018, Alyssa Welfringer, to assist with the lottery. Edison High School Winners: Boys Basketball; Academic Booster Club Huntington Beach High School Winners: Oiler Music Guild; Girls Soccer Booster Club Marina High School Winners: Lacrosse Boosters; Girls Field Hockey Ocean View High School Winners: Baseball Boosters; Band Liberty High School Winner: Committee for Student Technology Civic Organization Winners: Compass Bible Church CrossPoint HB Church Knights of Columbus, Pope John Paul I Council 6020 Patriots and Paws Linden Tree Learning Youth Sports Winners: Surf City Premier Youth Sports and Fitness H. B. Divers Beach Elite Seaview Little League Culture Football Organization City Clerk Estanislau announced that HB Fire Department representatives would be in touch with the winners with permit instructions, and that the Sand Dollars of Huntington Beach are having a pirate- 69 City Council/PFA Regular Minutes April 19, 2021 Page 3 of 15 themed fundraiser at Old World Village on July 8, with proceeds designated for their Miss Huntington Beach Scholarship Program. Details available at www.misshb.us 6. 21-33 Mayor Carr presented a proclamation recognizing April as Autism Acceptance Month to Brittany Bas of Amuse4Autism Mayor Carr described Autism Awareness Month as an opportunity to provide awareness of and acceptance for the autistic community, and introduced Brittany Bas who introduced her team of supporters and thanked them for their impact on the local autistic community. Ms. Bas expressed appreciation for the recognition. 7. 21-340 Mayor Carr presented a proclamation recognizing April 22 as Earth Day to Kim Kolpin of the Bolsa Chica Land Trust To acknowledge Earth Day, April 22, Mayor Carr introduced Kim Kolpin, Executive Director of the Bolsa Chica Land Trust. The Bolsa Chica Land Trust is a leader in protecting the local natural environment, educating the community, and protecting wildlife. Councilmember Kalmick, Bolsa Chica Land Trust Board Member, provided a brief history of the Bolsa Chica Land Trust that currently oversees 1,400 acres of migratory bird sensitive habitat and sees over 80,000 visitors each year. Executive Director Kolpin explained that currently 23 species of birds are provided critical habitat, and hundreds of other species call the 1,400 acres their home. Director Kolpin explained that the Bolsa Chica Land Trust collaborates with State and Federal agencies, and local community involvement is what saved the area from development. Director Kolpin thanked City Council for the recognition and honor. 8. 21-337 Mayor Carr presented the Mayor’s HB Excellence Award to John Turner, Beach Maintenance Crewleader, Department of Public Works Mayor Carr explained the Mayor's HB Excellence Award winner is selected by fellow employees to acknowledge a co-worker who goes above and beyond in their daily activities. John's co-workers described him as having tremendous knowledge of the Public Works infrastructure, noted that two of his brothers have retired from the Public Works Department, recognized his ability to multi-task, and a person who does not leave until the job is done. Director of Public Works Sean Crumby stated that John came to the City 21 years ago with experience as a carpenter. John was promoted to the leadership team last fall and is someone who leads by example. John expressed his appreciation for the recognition and thanked his Supervisor Terry Tintle, Co-crew Leader Rob Bonillas, and the hard-working crew in the Beach Maintenance Division. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communication received by her office following distribution of the Council Agenda packet: Awards and Presentations 70 City Council/PFA Regular Minutes April 19, 2021 Page 4 of 15 #5 (21-316) PowerPoint presentation entitled 2021 Non-Profit Firework Stand Lottery submitted by City Clerk, Robin Estanislau. Consent Calendar #11 (21-313) Communication regarding Appointments to the Mobile Home Advisory Board. Administrative Items #18 (21-333) Two (2) email communications regarding Be Well OC (Mind OC) Mobile Crisis Response Program. Councilmember Items #19 (21-345) Communication from Mildred Perez, Senior Project Manager from the Kennedy Commission, regarding Consideration of Appealing SCAG Determination. #19 (21-345) Forty-seven (47) email communications regarding Consideration of Appealing SCAG Determination. PUBLIC COMMENTS (3-Minute Time Limit) — 17 Zoom Call-In Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. Jerry Raburn, a Thai-American resident of Orange County, was invited to speak and asked the City Council to pass a resolution against Asian hate, and to acknowledge Asian American and Pacific Islander (AAPI) heritage in May. Kathryn Levassiur, resident of Huntington Beach and Co-Founder of Huntington Beach Short-Term Rental (STR) Alliance, was invited to speak and stated support for Agenda Item No. 21-355, reconsidering the timing for the implementation of the STR Ordinance, and appreciation for the opportunity to engage with a Council Ad Hoc Committee to discuss what works and what doesn't work in moving forward. Caller #8263, Ann Palmer, a 30-year resident of Huntington Beach, was invited to speak and suggested that the acronym SCAG really stands for "social engineering" which in her opinion is the result of edicts, projects and policies that were not developed locally but come from Federal and State directives. Caller #4460, Casey McKeon, Finance Commissioner, was called to speak and stated support for Councilmember Peterson’s Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Caller #6779, Carrie Swan, was invited to speak and stated support for Councilmember Peterson’s Item No. 19 regarding consideration of appealing the Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Katie was invited to speak and shared information on certain individuals who attended the White Lives Matter rally on April 11 at the pier, and expressed her disappointment related to recent KKK activity and arrests by the Huntington Beach Police Department and the actions of both Mayor Pro Tem Tito and Councilmember Peterson. Nancy Buchoz was called to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. 71 City Council/PFA Regular Minutes April 19, 2021 Page 5 of 15 Caller #0838, Loretta Smith, a resident of Huntington Beach for almost 30 years, was called to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Amory Hanson, Candidate for City Council in 2022 and member of the Historic Resources Board, was invited to speak and stated his support for Consent Calendar Item No. 11 A) the appointment of Eric Silkenson as an At-Large Member of the Mobile Home Advisory Board (MHAB), and support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Caller #1646, Ally Meyer, a resident of Huntington Beach, was called to speak and stated her support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination, and stated that she is not ashamed of Councilmember Peterson. Bethany Webb, a 40-year resident of Huntington Beach, was invited to speak and thanked the Councilmembers who participated in the commUNITY Pop-Up Picnic at Central Park on April 18, criticized Councilmember Peterson for not being visible on camera during Zoom Council meetings, commended Mayor Pro Tem Ortiz for stepping up to support anti-hate items at the last Council meeting, and shared her experience of supporting Black Lives Matter at Huntington Beach Pier on April 11. Bella Brannon, a life-long resident of Huntington Beach, was called to speak and shared her appreciation for the Human Relations Task Force and all others responsible for the great commUNITY Pop-Up Picnic at Central Park on April 18, and stated her support for more opportunities to support inclusion and justice for all residents. Caller #3964, Kathy Carrick, was called to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Patricia Goodman was called to speak and shared her appreciation for the great CommUNITY Pop-Up Picnic at Central Park on April 18, and stated her support for being aware of the need for safe, clean and affordable housing for residents, and expectation that discussion on Councilmember Peterson's Item No. 19 will clarify for residents why this is back on the agenda after the City Council unanimously agreed during Closed Session to not pursue legal action on this issue at their meeting on March 15, 2021. Caller #3587, Debbie Pierce, a life-long resident of Huntington Beach, was called to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. Bruce Wareh, a 32-year resident of Huntington Beach, was invited to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. 72 City Council/PFA Regular Minutes April 19, 2021 Page 6 of 15 Caller #4456, Stephanie Hanson, was called to speak and stated support for Councilmember Peterson's Item No. 19 regarding consideration of appealing Southern California Association of Government’s (SCAG) February 2021 Regional Housing Needs Assessment (RHNA) determination. COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Kalmick reported calls with several Downtown Business Improvement District (BID) owners who were concerned about the drop in business during the April 11 protests and who are interested in ways to take back their public spaces, and a meeting with the new Government Affairs representative from Spectrum Communications to review their expansion plans in Huntington Beach. Councilmember Moser reported participating in a Townhall on April 11, the commUNITY Pop-Up Picnic at Central Park on April 18, the Townhall on Homelessness 101, and Human Relations Task Force virtual meetings. Councilmember Posey reported that OC Vector Control has decided to put their building relocation on hold because of parking and fire safety concerns, and described Vector Control's efforts to reduce the County's Aedes aegypti mosquito population. Councilmember Posey announced the Orange County Power Authority (OCPA) is forming a Citizen Commission and applications for those interested in becoming involved will be available at www.ocpower.org. Councilmember Posey thanked the Orange County Board of Supervisors and Former Supervisor Michelle Steel for appointing him to serve as an Orange County Parks Commissioner for the last five years, and explained his service now ends as Michele Steel was elected to the U. S. Senate and therefore is no longer an OC Supervisor. Councilmember Delgleize reported attending virtual meetings for Orange County Transportation Authority (OCTA) Board, Jet Noise Commission, Association of California Cities – OC (ACC–OC) Executive Board, virtual Townhall Homelessness 101, and Zoom conversations with several State legislators. Mayor Carr reported participating in Orange Council Business Council (OCBC) virtual Sacramento Advocacy tour, virtual meetings of the Human Relations Task Force, Economic Development Committee, California Cities Environmental Quality Policy Committee, OC Sanitation Legislative, Health and Public Affairs Committee, and OC Mayors Coalition. CITY MANAGER'S REPORT City Manager Oliver Chi requested that Consent Calendar Item #11 (21-313) regarding appointments to the Mobile Home Advisory Board be pulled and brought back at an up-coming meeting. With no Council objections, the request was granted. 21-352 Recap of Hate Free HB and commUNITY Pop-Up Picnic Programs City Manager Oliver Chi presented a PowerPoint communication titled Hate Free HB with slides entitled: Hate Free HB Event April 11, 2021, slides 3 through 5 event pictures, CommUNITY Pop-Up Picnic, and slides 7 through 11 event pictures. City Manager Chi and Council thanked especially the Community and Library Services staff for quickly putting together such an outstanding event. 73 City Council/PFA Regular Minutes April 19, 2021 Page 7 of 15 Mayor Carr recommended that this become an annual event as a way to demonstrate the positive energy of Huntington Beach residents for helping one another. She also thanked Councilmember Moser for suggesting the idea, and her leadership to ensure a successful day. Councilmember Moser thanked the Council and City Manager Chi for their support, and expressed her kudos to the Community and Library Services staff and various elected officials who managed and participated in this non-partisan event. She also thanked the community for participating in the celebration of diversity, and expressing interest in a repeat event. Councilmember Delgleize shared the comments she heard from participants expressing a desire to do it again. Councilmember Posey shared his appreciation for the opportunity for friendly communication with those ‘on the other side of the aisle” in a fun atmosphere, and thanked everyone who had a part in planning this event. Councilmember Kalmick thanked staff for their efforts to create an event that highlighted the best of Huntington Beach, and expressed his hope this will be repeated. Councilmember Moser stated her intent to focus on future similar events and having continued conversations on inclusion and diversity. 21-353 Police Department Update on Recent City Protests City Manager Chi introduced Interim Police Chief Julian Harvey who provided an update on the April 11 White Lives Matter rally and counter demonstrations at the Huntington Beach Pier. There were 12 arrests for assault, fighting in public, municipal code violations, and weapons offenses. The City declared an unlawful assembly in the early afternoon, and within approximately and hour and a half, the crowd had dispersed. Mayor Carr thanked Interim Chief Harvey and Police Department staff for being proactive and prepared so that people could safely and peacefully express themselves. Councilmember Moser echoed Mayor Carr's comments and confirmed with Interim Police Chief Harvey that residents with criticisms, questions, or concerns should feel free to reach out to him. 21-354 Ascon Project Update Assistant City Manager Travis Hopkins presented a PowerPoint communication titled Ascon Landfill Site Update with slides entitled: Project and Site Status, Pit F Remediation Set to Resume in mid-June (2), Ascon to introduce opt-in Community Alert System - AsconAlert, and Ascon Project Information Contacts. Mayor Carr clarified with Assistant City Manager Hopkins that within the tented area only the air treatment system will operate 24 hours a day 7 days a week until the remediation is completed. Councilmember Kalmick and Assistant City Manager Hopkins discussed further details on the air treatment system and efforts being taken to ensure the City's noise code requirements are met. CONSENT CALENDAR 74 City Council/PFA Regular Minutes April 19, 2021 Page 8 of 15 Councilmember Posey pulled Item 12 for discussion. 9. 21-309 Approved and Adopted Minutes A motion was made by Peterson, second Posey to approve and adopt the City Council/Public Financing Authority regular meeting minutes dated April 5, 2021, as written and on file in the office of the City Clerk. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 10. 21-256 Received and filed the City Clerk’s quarterly listing of professional services contracts filed in the City Clerk’s Office between July 1, 2020 and December 31, 2020 A motion was made by Peterson, second Posey to receive and file the "List of Professional Services Contracts Approved by Department Heads and Submitted to the Office of the City Clerk during the period of July 1, 2020 and September 30, 2020;" and, receive and file the "List of Professional Services Contracts Approved by Department Heads and Submitted to the Office of the City Clerk during the period of October 1, 2020 and December 31, 2020." The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 11. 21-313 ITEM WITHDRAWN Approve appointments to the Mobile Home Advisory Board (MHAB) as recommended by City Council Liaisons Carr and Posey 12. 21-268 Accepted the lowest responsive and responsible bid, approved appropriation and authorized execution of a construction contract with GEM Construction, Inc., in the amount of $542,424 for the Central Park Restrooms Phase 3, CC-1608 Councilmember Posey pulled this item to confirm with City Manager Chi that Quimby Act (developer) funds provided a major portion of the cost for Central Park restrooms, and discussion on funds available for future park improvement projects. A motion was made by Posey, second Delgleize to accept the most responsive and responsible bid submitted by GEM Construction, Inc., in the amount of $542,424; and, appropriate $162,919 in additional funding from the Fund 226 balance; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 13. 21-283 Accepted the lowest responsive and responsible bid and authorized execution of a maintenance contract with Commercial Waterproofing Systems, Inc. (ERC Roofing 75 City Council/PFA Regular Minutes April 19, 2021 Page 9 of 15 and Waterproofing), in the amount of $225,450 for the Slater Pump Station Roof Replacement Project, MSC-534 A motion was made by Peterson, second Posey to accept the lowest responsive and responsible bid submitted by Commercial Waterproofing Systems, Inc., doing business as ERC Roofing and Waterproofing, in the amount of $225,450; and, authorize the Mayor and City Clerk to execute a maintenance contract in a form approved by the City Attorney. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 14. 21-298 Accepted the lowest responsive and responsible bid and authorized execution of a construction contract with Sancon Technologies, Inc., in the amount of $701,988.40 for the Fiscal Year 20/21 Sewer Lining project, CC-1619 A motion was made by Peterson, second Posey to accept the lowest responsive and responsible bid submitted by Sancon Technologies, Inc., in the amount of $701,988.40; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 15. 21-299 Accepted the lowest responsive and responsible bid, approved appropriation of funds and authorized execution of a construction contract with Palp, Inc. dba Excel Paving, in the amount of $1,577,750 for the Edwards — Varsity Tract Water Main Replacement project, CC-1558 A motion was made by Peterson, second Posey to accept the lowest responsive and responsible bid submitted by Excel Paving in the amount of $1,577,750.00; and, appropriate $171,000 from the Prop 42 Fund, Account No. 21985201.82300; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None 16. 21-273 Adopted Resolution No. 2021-10 requesting that the United States Army Corps of Engineers (USACE) fund and immediately proceed with Surfside-Sunset Beach Nourishment Project Stage 13 from Anaheim Bay Harbor to Newport Bay in Orange County, California A motion was made by Peterson, second Posey to adopt Resolution 2021-10, "A Resolution of the City Council of the City of Huntington Beach Requesting that the United States Army Corps of Engineers Fund and Immediately Proceed with Surfside-Sunset Beach Nourishment Project Stage 13 from Anaheim Bay Harbor to Newport Bay in Orange County, California." 76 City Council/PFA Regular Minutes April 19, 2021 Page 10 of 15 The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None PUBLIC HEARING 17. 21-312 Adopted Resolution No. 2021-28 approving the 2021-2022 Annual Action Plan for Federal Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Entitlement Grant Programs Economic Development Project Manager Robert Ramirez presented a PowerPoint communication titled CDBG & HOME Annual Action Plan with slides entitled: Background, Public Participation, CDBG Program Objectives, CDBG National Objectives, CDBG Local Priority Objectives, CDBG Allocations, HOME Program Objectives, HOME Local Priority Objectives, HOME Allocations, 2021-22 Available Funding, CDBG Public Services, CDBG Administration, CDBG Capital & Housing Preservation Projects, 2020-21 CDBG Subrecipients (2), What's Next? and Thank You/Questions? Mayor Carr opened the Public Hearing. Pursuant to the Brown “Open Meetings” Act, City Clerk Robin Estanislau announced supplemental communication received by her office following distribution of the Council Agenda packet: #17 (21-312) A PowerPoint presentation entitled CDBG & HOME Annual Action Plan (AAP) Approval FY 2021-22 submitted by Community Development Director, Ursula Luna-Reynosa. City Clerk Estanislau announced there were no speakers with raised hands. There being no public speakers, Mayor Carr closed the Public Hearing. A motion was made by Posey, second Delgleize that the City Council approve and authorize the following in compliance with the Consolidated Plan Procedures of 24 CFR Part 91: conduct a public hearing; and, adopt Resolution No. 2021-28, "A Resolution of the City Council of the City of Huntington Beach Approving the 2021-2022 Action Plan for Federal Community Development Block Grant, and Home Investment Partnerships Programs;" and, authorize the City Manager to sign all necessary documents. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None ADMINISTRATIVE ITEMS 18. 21-333 Approved selection of Be Well OC (Mind OC) as service provider for the City’s Mobile Crisis Response Program for select mental health calls for service City Manager Chi and Interim Police Chief Harvey presented a PowerPoint communication titled Mobile Crisis Response Pilot Program with slides entitled: The Problem, The Impact, The Frustration, The Result, The Potential Solution, Possible Benefits To Mobile Crisis Response Approach, Be Well OC 77 City Council/PFA Regular Minutes April 19, 2021 Page 11 of 15 Identified As Preferred Program Operator, If Approved, Project HOPE Will Be Operational By Early Summer, Project HOPE Program Costs, Recommended Action, and Questions? Councilmember Delgleize confirmed with Interim Chief Harvey that the Police Department Command Center would continue to determine the appropriate response for 911 and Police Department non- emergency calls to ensure the best service engagement for each situation, and that the program would be available for all community members, not just the homeless community. Councilmember Peterson and City Manager Chi discussed Councilmember Peterson's concerns regarding program costs for what he feels is a County responsibility. Manager Chi confirmed this project would not use any Police Department funds, but is being fully funded through available restricted use funds for which this proposed program qualifies. Interim Police Chief Harvey confirmed that mental health services are technically the responsibility of the County, and explained that the current model does drain City resources, whereas the proposed program will shift responsibility from the Police to a third party that is better equipped to deal with mental health issues and free up Police Officers to focus on local crime prevention. Councilmember Posey stated his support for this program, and discussed with City Manager Chi potential County and Federal funding sources to keep the program going after a successful pilot. Councilmember Posey requested if approved, that staff provide periodic updates on grant application status and sustainable funding sources for future planning purposes. Councilmember Moser and City Manager Chi discussed considerations for scaling up as more jurisdictions sign on to the program, and for meeting increased service demands. Councilmember Moser asked that key performance indicators data be readily available to anyone interested, and City Manager Chi confirmed conversations with Be Well OC regarding measuring and monitoring performance and the types of datum to be tracked. Councilmember Moser stated her support for this program which will be available for the whole community, regardless of whether they have a roof over their heads or not. Mayor Carr concurred with Councilmember Moser's comments and stated her support for the program. Mayor Carr and City Manager Chi discussed data points and the plan to make that information available as soon as the program is up and running. City Manager Chi stated that after about 6 months it is anticipated that Police and Fire will be able to confirm whether the expected impact is being realized. Mayor Carr confirmed with City Manager Chi that mobile crisis funding is available through the Federal Crisis Assistance Helping Out On The Streets (CAHOOTS) Act whether services are provided through a pilot or on-going program. City Manager Chi reiterated that there are only a handful of jurisdictions across the country currently offering CAHOOTS qualified programs. Mayor Carr expressed her pride for the fact that Huntington Beach is stepping up to be a leader in this regard, and stated her expectation that many other area cities will be joining the effort to provide another tool for first responders. A motion was made by Carr, second Delgleize to approve the selection of Be Well OC (Mind OC) as the service provider for the City's trial Mobile Crisis Response program, to shift the burden of response from the police department to Be Well OC for designated, triaged mental health calls for service not involving violence, weapons, or criminal behavior; and, authorize the City Manager, with approval as to form by the City Attorney, to execute an agreement with Be Well OC (Mind OC) in substantial form to the attached (Attachment 1); and, approve appropriation from the following funding sources: 1) Police Department Development Impact Fee Fund (Fund 227) $368,000; 2) Restricted Restitution Fund (Fund 100) $282,000; and 3) American Rescue Plan Act HOME Funding $850,000. The motion carried by the following vote: 78 City Council/PFA Regular Minutes April 19, 2021 Page 12 of 15 AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None COUNCILMEMBER ITEMS 19. 21-345 Item Submitted by Councilmember Peterson - Consideration of Appealing SCAG Determination – POSTPONED INDEFINITELY Councilmember Peterson stated the question is whether or not the City chooses to use the tools provided by California law to appeal the decision of California Association of Government (SCAG). He further explained his position that filing an appeal is the next logical step required to maintain local control, and that unfortunately he was stuck in traffic and unable to participate during the recent Closed Session discussion on this item. A motion was made by Peterson, second Ortiz that the City Council direct the City Attorney to appeal SCAG's February 2021 RHNA determination of 13,386, including with authorization from City Council to initiate a lawsuit on behalf of the City in State Court. Councilmember Kalmick stated that since this issue has already been discussed in Closed Session, he made a substitute motion that the item be postponed indefinitely. Councilmember Peterson stated that there was a discussion on the topic, but no formal action was taken, and asked for clarification on the substitute motion. Councilmember Kalmick replied that during the previous Closed Session discussion, Council decided to take no action so therefore his motion is to confirm that Council has no desire to address this item at this time. Councilmember Posey stated that in light of the fact that City Attorney Gates did not attend the Closed Session meeting to participate in the discussion, after putting this item on the agenda, he feels it must not really be an important issue and therefore provided the second for the substitute motion. Councilmember Delgleize stated she appreciates Councilmember Peterson's request for an appeal, but believes there are better ways to address the issue, especially when SCAG is only the messenger and the City's first appeal was lost. Councilmember Delgleize added that Assembly Member Janet Nguyen has introduced AB 1258 asking for a judicial review of final housing need regional plans. Councilmember Delgleize stated she agrees that the Regional Housing Needs Assessment (RHNA) of 13,3886 units for Huntington Beach is not attainable, nor based on reality, and she is very passionate about local control, and stated her opinion the best way to move forward is to participate with a group of like-minded cities. Councilmember Posey stated he also does not want to see over 13,000 units built in the City, but another lawsuit has no guarantee of reducing the numbers. He further explained that if the City enters into litigation, there is a strong likelihood that the City will find itself with a Decertified Housing Element, which could ultimately result in a lawsuit from the State and possible loss of grant funding. The substitute motion made by Kalmick, second Posey to postpone the item indefinitely carried by the following vote: AYES: Kalmick, Carr, Posey, Moser, and Delgleize NOES: Peterson, and Ortiz 79 City Council/PFA Regular Minutes April 19, 2021 Page 13 of 15 20. 21-355 Item Submitted by Mayor Carr - Consider providing all operators with an extension until October 2, 2021, to comply with the City’s updated Short-Term Rental (STR) Regulations - APPROVED Mayor Carr stated she had just been notified that home hosted short-term rental operators in Huntington Beach are being delisted by platforms such as VRBO or Expedia if the operators do not have a City permit. Therefore, she proposed an October 1, 2021, deadline to allow time for compliance, and asked that a Council Ad Hoc Committee comprised of Councilmembers Peterson and Kalmick be established. Councilmember Delgleize thanked Mayor Carr for her quick response to address the unfortunate situation some hosts found themselves in, and stated her support for the item. Councilmember Posey stated his support for this item, and suggested that Community Development staff reach out to determine if the listing platforms that sent out delisting notifications are capable of sending out warning notices with the October 1, 2021 date. Councilmember Kalmick stated he is in support of this item, and honored to be part of the STR Ad Hoc Committee, to ensure the quality-of-life goal. City Attorney Michael Gates and Community Development Director Ursula Luna-Reynosa discussed the fact that the STR ordinance is already in effect, and Community Development staff have already reached out to the listing platforms who indicated they are able to assist with communication. City Attorney Gates and Director Luna-Reynosa agreed that for a transparent process Council action should amend the ordinance, and ask staff to delay enforcement. A motion was made by Carr, second Delgleize to recommend that the City Council vote to provide all operators in the City until October 1, 2021, to obtain their necessary STR permit as amended to appoint Councilmembers Peterson and Kalmick to serve on an STR Ad Hoc Committee; and, direct staff to temporarily delay enforcement of new, complex STR regulations for operators in Zones 1 and 2 and return to Council with a code amendment that extends enforcement of new regulations until October 1, 2021. The motion carried by the following vote: AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize NOES: None COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Posey reported touring the local business Primal Elements with Antonia Graham of the Orange County Power Authority (OCPA) to discuss power needs, and asked that the meeting be adjourned in recognition of the 78th Anniversary of the Warsaw Ghetto Uprising on April 19, 1943. Councilmember Delgleize, as a member of the Orange County Transportation Authority (OCTA) Board, reported the Magnolia Bridge is opening very soon, thanked Mayor Carr for the recent informative virtual Townhall meetings, and stated her strong support for the new Be Well OC pilot program. Councilmember Peterson wished his neighbor, Bud (Robin) Gesellat, a Happy 99th Birthday. Bud is a WWII Veteran, a POW after his bomber was shot down over France, who worked and lived locally all of his life, is head of the Plumeria Society, is active in his front and back yards every day caring for his 80 City Council/PFA Regular Minutes April 19, 2021 Page 14 of 15 many plumeria plants, and still drives wherever he wants to go! Councilmember Peterson stated his desire to personally drive Bud in next year’s July 4th Parade to celebrate his 100th birthday. Councilmember Kalmick reported participating in the recent virtual Townhall on COVID-19 with the CEO of Huntington Hospital and Interim Chief of Police Harvey, attending a Council on Foreign Relations State and Elected Officials webinar on Broadband and the Digital Divide, and shared his interest in taking a look at the Naval right-of-way land to determine who actually owns it and possibly creating an official linear park. Mayor Pro Tem Ortiz asked, and received, permission to be excused at 9:37 PM as he was beginning to feel the physical results of being involved in an auto accident that totaled his car earlier in the day. Councilmember Moser announced Youth Board "Youth in Government" days will be held virtually on April 20, 21 and 22. In recognizing Earth Day, she expressed her interest in creating Climate Safety for Huntington Beach to focus on making the coastline more resilient and community more competitive; announced that Sweet Elle Cafe Downtown is sponsoring a Community Solo Clean-up Event on Earth Day from 3 - 7 PM in collaboration with Republic Services, 4 Blue Waves, Surfrider Foundation, and various Scout and community groups; a virtual dialogue series on Community Solidarity begins on April 22, 6 – 7:30 PM, presented jointly by the HB Human Relations Task Force and OC Human Relations, and the second dialogue will take place on May 20, (pre-registration is required); the Human Relations Task Force Cultural Cinema Showcase and Panel on Asian American and Pacific Islander (AAPI) issues will run from Friday, May 21 through Sunday, May 23; Greater Huntington Beach Interfaith Council Community Drive-thru Donation Day on April 24, 9 AM – 1 PM at the HB Sports Complex for their Annual Day of Service, and Annual Interfaith Day of Prayer is May 6 at 9 AM; and HB Reads virtual interview with the author of They Called Us Enemy, George Takei, on May 3 at 3:30 PM. Councilmember Moser stated it is not acceptable for Mayor Pro Tem Ortiz to equate the Democratic Party with the KKK. Councilmember Moser tearfully shared her love for her dying Father, who likes to listen to the Council meetings, and stated this may be his last meeting. Mayor Carr shared a virtual hug with Councilmember Moser and encouraged her to reach out to her fellow Councilmembers if she needs anything during this time. Mayor Carr acknowledged Chris Alsop, Owner of Thunder Storage Company, for partnering with Streams to the Ocean to plan an Earth Day cleanup effort that collected over 127 pounds of trash from City gutters. Mayor Carr reported attending a Victims Rally with OC District Attorney Todd Spitzer to acknowledge National Crime Victims Awareness Week, April 19 - 25, and to honor Lita Mercado of Waymakers; and announced that April 29 is National Denim Day to recognize April as Sexual Assault Awareness month. ADJOURNMENT — at 9:46 PM, in recognition of the 78th Anniversary of the Warsaw Ghetto Uprising on April 19, 1943, to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, May 3, 2021, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov 81 City Council/PFA Regular Minutes April 19, 2021 Page 15 of 15 ________________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 82 City of Huntington Beach File #:21-367 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Travis K. Hopkins, Assistant City Manager Subject: Approve appointments to the Mobile Home Advisory Board (MHAB) as recommended by City Council Liaisons Kim Carr and Mike Posey Statement of Issue: The City Council is asked to approve one new appointment and one reappointment to the Mobile Home Advisory Board for the term ending August 5, 2025. Financial Impact: Not applicable. Recommended Action: A) Approve the appointment of Eric Silkenson as an At-Large Member of the MHAB through August 5, 2025; and, B) Approve the re-appointment of Allison Plum as a Resident Member of the MHAB through August 5, 2025. Alternative Action(s): Do not approve one or more of these appointments and direct staff accordingly. Analysis: The Mobile Home Advisory Board (MHAB) is an advisory body to the City Council that works to ensure the quality of life in Huntington Beach’s 18 mobile home parks. The MHAB addresses issues that affect the City's mobile home communities by providing a forum for communication among mobile home residents, park owners, and the City Council. The MHAB is comprised of nine members who equally represent mobile home park residents, park owners/managers, and the Huntington Beach community at large. The MHAB has vacancies for two at-large members and two park owner/manager members. The City duly advertised the vacancies on multiple platforms and received several applications. City Council liaisons, Kim Carr and Mike Posey, reviewed the at-large member applications and made City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™83 File #:21-367 MEETING DATE:5/3/2021 recommendations to appoint Eric Silkenson through August 5, 2025. Applications continue to be solicited for the one at-large and the two park owner vacancies, and staff will initiate the review process shortly thereafter. In addition, MHAB resident member, Allison Plum, was appointed in October 2020 to finish out an existing term scheduled to expire on August 5, 2021. The City Council recommends reappointing her for a second term through August 5, 2025. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Application for Appointment - Eric Silkenson 2. Application for Reappointment - Allison Plum City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™84 Application for Appointment to a Citizen Commission, Board, Committee, or Task Force Page 1 Last Name *First Name *Middle Initial Date * Name of Board, Commission, Committee, or Task Force * Length of Residency in Huntington Beach * Occupation * United States Citizen?*Currently Serving on a City Board or Commission?* Home Address:* Phone Numbers Personal Type *(?)Number * Phone Numbers Business Type (?)Number Personal Email * Silkenson Eric D 2/10/2021 Mobile Home Advisory Board 48 Years Teacher Yes No Yes No City Huntington Beach State CA Postal / Zip Code Street Address Address Line 2 cell 85 Page 2 Educational Background * Professional Licenses and/or Associations * Professional Experience * Special Knowledge or Skills * Civic Interests and/or Service Memberships?* How will your qualifications best serve the citizen advisory group that you are applying for, and why do you wish to serve on this group?* It is the policy of the City Council to make appointments to the citizen commissions, boards, and committees, based on the needs of the city, as well as the interests and qualifications of each applicant. Selection will be made without discrimination based on the race, creed, gender, or sexual orientation of the applicant. Additional information concerning a particular commission, board, committee, or task force or the application process is available through the staff support department identified above. General questions can be directed to Cathy Fikes, (714) 536-5553. I have an AA in communications from Golden West College, a Bachelors in history with a minor in journalism from CSULB, and a single-subject teaching credential in social studies also from CSULB. I have a single-subject teaching credential and a substitute teaching credential. I was in the restaurant business for thirty years at every level including management and training and development. I am currently a teacher at Edison High School. I have conversational Spanish, a very good cook, and I am handy around the house. I support the "Drains to Ocean" non-profit and "Robyne's Nest." I have taken an interest in city government and public service over the past few years and I am looking for a way to serve. I have some friends who live in the mobile home community on Beach between Indianapolis and Atlanta. They have shared some of their unique concerns with me from time to time. As a forty-eight year resident of Huntington Beach, I believe that my connection to the city and the culture would allow me to have a unique perspective on the culture of the city and how our mobile home communities fit and interact with Huntington Beach. 86 87 88 City of Huntington Beach File #:21-368 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Travis K. Hopkins, Assistant City Manager Subject: Consider positions on legislation pending before the State and Federal Legislature, as recommended by the Intergovernmental Relations Committee (IRC) Statement of Issue: On April 21, 2021, the Intergovernmental Relations Committee (IRC), comprised of Mayor Kim Carr and Council Member Mike Posey (with Mayor Pro Tem Tito Ortiz absent), discussed current State and Federal issues with relevance to Huntington Beach. Following discussion, the IRC chose to take positions on certain proposed legislation, which are presented to the City Council for consideration. Financial Impact: Not applicable. Recommended Action: Approve one or more City positions on State legislation related specifically to housing issues: A. Oppose AB 115 (Bloom) B. Oppose AB 1401 (Friedman), unless amended C. Oppose SB 6 (Caballero) D. Oppose SB 9 (Atkins) E. Oppose SB 10 (Weiner) F. Support SB 15 (Portantino) G. Oppose SB 478 (Weiner) H. Oppose AB 602 (Grayson) Approve one or more City positions on other State legislation: A. Support SB 612 (Portantino) B. Support SB 555 (McGuire) C. Oppose SB 556 (Dodd) Approve a City position on Federal legislation: A. Watch H.R. 5845 (Lowenthal) Alternative Action(s): Do not approve one or more recommended legislative positions and direct staff accordingly. Analysis: The IRC is recommending positions on State and Federal legislation, which are being presented to the CityCity of Huntington Beach Printed on 4/28/2021Page 1 of 4 powered by Legistar™89 File #:21-368 MEETING DATE:5/3/2021 The IRC is recommending positions on State and Federal legislation, which are being presented to the City Council for approval: State Housing Legislation: A. OPPOSE AB 115 (Bloom):Planning and zoning: commercial zoning: housing development AB 115 would require jurisdictions to allow for residential development in commercially zoned areas that are not adjacent to industrial use. These developments must set aside at least 20% of its units for affordable housing and must meet additional conditions including height, floor area ratio and density requirements.While affordable housing is a priority, this bill would limit the City’s oversight, particularly over commercially zoned areas that may not be appropriate for a residential development. B. OPPOSE UNLESS AMENDED AB 1401 (Friedman): Residential and commercial development: parking requirements. This bill would prohibit local governments from enforcing their parking requirements on residential and commercial developments that are within ½ mile of public transit or low vehicle miles traveled areas. The bill would not preclude a local government from imposing requirements when a project provides parking voluntarily to require spaces for car share vehicles.The IRC believes that parking requirements should remain a local issue and maintains an oppose position to AB 1401, unless it was amended to exclude commercial developments, which are not as highly impacted by parking requirements as residential developments. C. OPPOSE SB 6 (Caballero):Local planning: housing: commercial zones This bill would deem a housing development project as an allowable use on a neighborhood lot, which is defined as a parcel within an office or retail commercial zone that is not adjacent to an industrial use. The bill would require the density for a housing development to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction.The bill’s requirements will likely conflict with the City’s current zoning requirements. D. OPPOSE SB 9 (Atkins):Housing development: approvals. This bill would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, if the proposed housing development meets certain requirements.Combined with current accessory dwelling unit law, SB 9 will allow even more units to be built on the same parcel without public review, which may present a concern. E. OPPOSE SB 10 (Weiner):Planning and zoning: housing development: density. Authorizes a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site.These developments would not be subject to CEQA, which presents a loss of oversight from both the public and local government. F. SUPPORT SB 15 (Portantino):Housing development: incentives: rezoning of idle retail sites. This bill would require the Department of Housing and Community Development to administer a program to provide local governments with grants to rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of housing, as defined.As the retail model evolves and large commercial spaces are not required, this bill gives local governments the funds needed to rezone areas that may be better suited for a housing development. G. OPPOSE SB 478 (Weiner):Planning and Zoning Law: housing development projects. This bill would prohibit a local agency from imposing a floor-to-area ratio standard that is less than 1.0 on a housing development project that consists of 3 to 7 units, or less than 1.25 on a housing development project that consists of 8 to 10 units. The bill would prohibit a local agency from imposing a lot coverage requirement that would preclude a housing development project from achieving the floor-to-area ratios described above.The IRC City of Huntington Beach Printed on 4/28/2021Page 2 of 4 powered by Legistar™90 File #:21-368 MEETING DATE:5/3/2021 could not issue a support position due to the lack of additional, key details including density requirements. H. OPPOSE AB 602 (Grayson):Development fees: impact fee nexus study. This bill would require the State to create an impact fee nexus study template that may be used by local jurisdictions. The bill would require that the template include a method of calculating the feasibility of housing being built with a given fee level. Bill would require local governments to include additional information and new requirements into their impact fee studies and requires that an impact fee nexus study be adopted prior to the adoption of an associated development fee or exaction.The IRC opines that impact fees should only be set and disbursed by the local jurisdiction that will be impacted by the development assessed the fee. Other State Legislation: A) SUPPORT SB 612 (Portantino): Electrical corporations: allocation of legacy resources Would require an electrical corporation, by July 1, 2022, and not less than once every 3 years thereafter, to offer an allocation of each product, as defined, arising from legacy resources, as defined, to its bundled customers and to other load-serving entities, defined to include electric service providers and community choice aggregators (CCA), serving departing load customers, as defined, who bear cost responsibility for those resources. The bill would authorize a load-serving entity within the service territory of the electrical corporation to elect to receive all or a portion of the vintaged proportional share of products allocated to its end-use customers and, if so, require it to pay to the electrical corporation the commission-established market price benchmark for the vintage proportional share of products received.This bill will help ensure that the City’s future CCA customers receive the same benefits as legacy customers who choose to remain with Southern California Edison. B) SUPPORT SB 555 (McGuire):Local agencies: transient occupancy taxes: short-term rental facilitator: collection. Would authorize a local agency to enact an ordinance exclusively delegating its authority to collect any transient occupancy tax imposed by that local agency on short-term rentals to the California Department of Tax and Fee Administration and to enter into a contract with the department for purposes of registration, rate posting, collection, and transmission of revenues necessary to collect and administer any transient occupancy tax imposed on a short-term rental as specified in this bill.This bill would standardize and streamline the payment and collection of taxes for all parties, including short-term rental owners and the City, respectively. C) OPPOSE SB 556 (Dodd):Street light poles, traffic signal poles: small wireless facilities attachments. Would prohibit a local government or local publicly-owned electric utility from unreasonably denying the leasing or licensing of its street light poles or traffic signal poles to communications service providers for the purpose of placing small wireless facilities on those poles. The bill would require that street light poles and traffic signal poles be made available for the placement of small wireless facilities under fair, reasonable, and nondiscriminatory fees, subject to specified requirements, consistent with a specified decision of the Federal Communications Commission.This bill would limit the City’s control over its own infrastructure, as well as its ability to set the appropriate fees needed to recover costs associated with the placement of these wireless facilities. Federal Legislation: 1. WATCH HR 5845: Break Free from Plastic Pollution Act. The bill makes certain producers of products (e.g., packaging, paper, single-use products, beverage containers, or food service products) fiscally responsible for collecting, managing, and recycling or composting the products after consumer use. In addition, the bill establishes (1) minimum percentages of products that must be reused, recycled, or composted; and (2) an increasing percentage of recycled content that must be contained in beverage containers. Beginning on January 1, 2022, the bill phases out a variety of single-use products, such as plastic utensils. The bill also sets forth provisions to encourage the reduction of single-use products, including by establishing programs to refund consumers for returning beverage containers and by establishing a tax on carryout bags. The bill creates a temporary moratorium on new or expanded permits for facilities that manufacture plastics City of Huntington Beach Printed on 4/28/2021Page 3 of 4 powered by Legistar™91 File #:21-368 MEETING DATE:5/3/2021 creates a temporary moratorium on new or expanded permits for facilities that manufacture plastics until regulations are updated to address pollution from the facilities. Finally, the bill establishes limitations on the export of plastic waste to other countries. Environmental Status: Not applicable . Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Summary of Housing Bills 2. Oppose AB 115 (Bloom) 3. Oppose AB 1401 (Friedman), unless amended 4. Oppose SB 6 (Caballero) 5. Oppose SB 9 (Atkins) 6. Oppose SB 10 (Weiner) 7. Support SB 15 (Portantino) 8. Oppose SB 478 (Weiner) 9. Oppose AB 602 (Grayson) 10. Support SB 612 (Portantino) 11. Support SB 555 (McGuire) 12. Oppose SB 556 (Dodd) 13. Watch HR 5845 (Lowenthal) City of Huntington Beach Printed on 4/28/2021Page 4 of 4 powered by Legistar™92 Huntington Beach Housing Legislation Matrix April 21, 2021 1 Bill Summary City of Huntington Beach Staff Feedback Sample of Support and Opposition Planning and Zoning AB 115 (Bloom)  Requires all jurisdictions to allow for residential development in commercially zoned areas, that are not adjacent to industrial use, provided that the development reserves 20% of the units for affordable housing.  The housing development must meet certain height requirements, floor area ratio requirements, and density requirements, unless the zoning standards of the city are less restrictive. Staff recommendation: Watch, as more details are issued. IRC recommendation: Oppose Support: Southern California Association of Nonprofit Housing, East Bay for Everyone, Facebook, Housing California Oppose: City of Torrance, State Building Trades AFL-CIO AB 1401 (Friedman)  Prohibits the enforcement of parking requirements on residential and commercial developments, within ½ mile of public transit or in low vehicle miles traveled areas Staff recommendation: Oppose IRC Recommendation: Oppose unless amended to limit the bill to residential developments only. Commercial should be excluded. Support: CA YIMBY, Bay Area Council, CBIA, Chan Zuckerberg Initiative, People for Housing – Orange County, Silicon Valley Leadership Group Oppose: LOCC, California Cities for Local Control SB 6 (Caballero)  Would require cities to allow residential development on commercially zoned property where office and retail uses are permitted, so long as the parcel is not adjacent to industrial use.  A housing development project must comply with density requirements, local zoning, parking, design requirements, and include an unspecified percentage of affordable housing units  Developers must certify that the project is a public work or will pay prevailing wage  A local agency may exempt a lot zoned for commercial retail or office use from the bill if the local agency reallocates the lost residential density to other lots, so there is no net loss in residential density Staff recommendation: Oppose IRC recommendation: Oppose Support: Abundant Housing LA, CA Association of Realtors, Los Angeles Business Council, Terner Center Opposition: CA Coalition for Rural Housing, CA Housing Partnership, Southern CA Association of Nonprofit Housing SB 9 (Atkins)  Would allow for duplexes and lot splits in single family residential zones, by right, if the proposed development meets certain requirements. Staff recommendation: Oppose Support: CA Apartment Association, CA Association of Realtors, CA BIA, CA Chamber 93 Huntington Beach Housing Legislation Matrix April 21, 2021 2  In order to qualify for ministerial approval, the two new parcels that replace the existing single parcel, must be of equal size.  Combined with ADU law, this law will allow even more units to be build on the same parcel without public review  Authorizes a local agency to require parking of one unit per space, but prohibits a parking requirement if the project is within ½ mile of high quality transit IRC recommendation: Oppose of Commerce, CA YIMBY, LA Chamber of Commerce Opposition: Dozens of individual cities, Livable California, Homeowners Associations, Neighborhood Associations, League of California Cities, Livable California, California Cities for Local Control, California Contract Cities Association SB 10 (Weiner)  Create a streamlining tool for cities to rezone in certain areas close to job centers, transit, and existing urbanized areas, to allow up to ten residential units without undergoing CEQA  Bill would allow cities to adopt a local ordinance to zone a parcel up to 10 units of residential – not a state mandate Staff recommendation: Watch as more details are provided. IRC recommendation: Oppose Support: California YIMBY, Bay Area Council, CalChamber, CA Association of Realtors, CA BIA Opposition: Several cities, homeowners associations, neighborhood associations, Stat building and construction trades SB 15 (Portantino)  Requires HCD to administer a program to provide grants to local governments that rezone idle sites used for a big box commercial shopping center to instead allow the development of low and moderate income housing, as defined. IRC recommendation: Support Support: BizFed, Los Angeles LOCC, ACCOC, AFL-CIO, California Council of Laborers Opposition: plumbing-Heating- Cooling Contractors of California SB 478 (Wiener)  Sets minimum standards on floor area ratios (FAR) and minimum lot sizes, for land zoned for “missing middle housing” defined as duplexes to ten unit buildings. Staff recommendation: Oppose IRC recommendation: Oppose Support: CA YIMBY, Bay Area Council, California Apartment Association, CA BIA, Chan Zuckerberg Initiative, Habitat for Humanity Oppose: AFL-CIO, CSAC, several Homeowners 94 Huntington Beach Housing Legislation Matrix April 21, 2021 3 Associations and Residential Associations, Construction Trades Council of CA, Urban Counties of CA AB 602 (Grayson)  This bill would require the State to create an impact fee nexus study template that may be used by local jurisdictions. The bill would require that the template include a method of calculating the feasibility of housing being built with a given fee level.  Bill would require local governments to include additional information and new requirements into their impact fee studies  Requires that an impact fee nexus study be adopted prior to the adoption of an associated development fee or exaction.  Requires that fees levied or imposed on a housing development project by a local agency be proportionate to the square footage of the proposed unit or units. IRC recommendation: Oppose Support: CA YIMBY, Habitat for Humanity, East Bay Leadership Council, Terner Center Oppose: CASA, CSDA, LOCC, Urban Counties of CA 95 AMENDED IN ASSEMBLY APRIL 20, 2021 california legislature—2021–22 regular session ASSEMBLY BILL No. 115 Introduced by Assembly Member Bloom December 18, 2020 An act to add and repeal Section 65583.7 of the Government Code, relating to land use. legislative counsel’s digest AB 115, as amended, Bloom. Planning and zoning: commercial zoning: housing development. Existing law, the Planning and Zoning Law, requires that the legislative body of each county and each city adopt a comprehensive, long-term general plan for the physical development of the county and city, and specified land outside its boundaries, that includes, among other mandatory elements, a housing element. Existing law authorizes the legislative body of any county or city, pursuant to specified procedures, to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes. This bill, notwithstanding any inconsistent provision of a city’s or county’s general plan, specific plan, zoning ordinance, or regulation, would require that a housing development be an authorized use on a site designated in any local agency’s zoning code or maps for commercial uses if certain conditions apply. Among these conditions, the bill would require that the housing development be subject to a recorded deed restriction requiring that at least 20% of the units have an affordable housing cost or affordable rent for lower income 98 96 households, as those terms are defined, and located on a site that satisfies specified criteria. The bill would require the city or county to apply certain height, density, and floor area ratio standards to a housing development that meets these criteria. The bill would deem a housing development consistent, compliant, and in conformity with local development standards, zoning codes or maps, and general plan if it meets the requirements of the bill. The bill would require a jurisdiction to comply with these requirements only until it has completed the rezoning, required as described above, for the 6th revision of its housing element. The bill would repeal these provisions as of January 1, 2031. The bill would also state the intent of the Legislature to develop and implement high-road labor policies to use a skilled construction workforce for projects utilizing the provisions of the act. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. By adding to the duties of local planning officials, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. It is the intent of the Legislature to develop and line 2 implement high-road labor policies to use a skilled construction line 3 workforce for projects utilizing the provisions of this act. line 4 SECTION 1. line 5 SEC. 2. Section 65583.7 is added to the Government Code, to line 6 read: line 7 65583.7. (a)  Notwithstanding any inconsistent provision of a line 8 city’s or county’s general plan, specific plan, zoning ordinance, line 9 or regulation, and subject to subdivision (c), a housing development line 10 shall be an authorized use on a site designated in any local agency’s 98 — 2 — AB 115 97 line 1 zoning code or maps for commercial uses if all of the following line 2 apply: line 3 (1)  The housing development is subject to a recorded deed line 4 restriction requiring that at least 20 percent of the units have an line 5 affordable housing cost or affordable rent for lower income line 6 households. line 7 (2)  The site of the housing development satisfies both of the line 8 following: line 9 (A)  The site of the housing development is not adjacent to any line 10 site that is an industrial use. line 11 (B)  At least 75 percent of the perimeter of the site adjoins parcels line 12 that are developed with urban uses. For purposes of this line 13 subparagraph, parcels that are only separated by a street or highway line 14 shall be considered to be adjoined. line 15 (b)  (1)  A city or county shall apply the following development line 16 standards to a housing development that meets the criteria in line 17 subdivision (a), unless existing applicable zoning standards of the line 18 city or county are less restrictive: line 19 (A)  The height limit applicable to the housing development line 20 shall be the greatest of the following: line 21 (i)  The highest allowed height for the site of the housing line 22 development. line 23 (ii)  The highest allowed height for a commercial or residential line 24 use within one-half mile of the site of the housing development. line 25 (iii)  Thirty-six feet. line 26 (B)  The maximum allowable floor area ratio of the housing line 27 development shall be not less than 0.6 times the number of stories line 28 that complies with the height limit under clause (i) of subdivision line 29 (A). line 30 (C)  The density limit applicable to the housing development line 31 shall be the greater of the following: line 32 (i)  The greatest allowed density for a mixed use or residential line 33 use within one-half mile of the site of the housing development. line 34 (ii)  The applicable density deemed appropriate to accommodate line 35 housing for lower income households identified in subparagraph line 36 (B) of paragraph (3) of subdivision (c) of Section 65583.2. line 37 (2)  In addition, the housing development shall comply with any line 38 applicable design standards of the city or county to the extent that line 39 those design standards do not prohibit the maximum height limit, line 40 density, or floor area ratio allowed under this section. 98 AB 115 — 3 — 98 line 1 (3)  Notwithstanding any other provision of this section, a line 2 developer of a housing development allowed in accordance with line 3 this section may apply for a density bonus pursuant to Section line 4 65915. line 5 (4)  A housing development shall be deemed consistent, line 6 compliant, and in conformity with local development standards, line 7 zoning codes or maps, and the general plan if it meets the line 8 requirements of this section. line 9 (c)  For purposes of this section: line 10 (1)  “Affordable housing cost” has the same meaning as defined line 11 in Section 50052.5 of the Health and Safety Code. line 12 (2)  “Affordable rent” has the same meaning as defined in Section line 13 50053 of the Health and Safety Code. line 14 (3)  “Greatest allowed density” means the maximum allowable line 15 gross residential density, including any density that requires line 16 conditional approval, allowable under local zoning, including the line 17 zoning ordinances and any specific plan adopted by the applicable line 18 city or county that apply to the site of the housing development. line 19 (4)  “Highest allowable height” means the tallest height, line 20 including any height that requires conditional approval, allowable line 21 under local zoning, including the zoning ordinances and any line 22 specific plan adopted by the applicable city or county that apply line 23 to the site of the housing development. line 24 (5)  “Industrial use” includes, but is not limited to, utilities, line 25 manufacturing, wholesale trade, transportation, and warehousing. line 26 (6)  “Lower income households” has the same meaning as line 27 defined in Section 50079.5 of the Health and Safety Code. line 28 (d)  A jurisdiction shall only be subject to this section until it line 29 has completed the rezoning required by Section 65583 for the 6th line 30 revision of its housing element pursuant to this article. line 31 (e)  The Legislature finds and declares that ensuring the adequate line 32 production of affordable housing is a matter of statewide concern line 33 and is not a municipal affair as that term is used in Section 5 of line 34 Article XI of the California Constitution. Therefore, this section line 35 applies to all cities, including charter cities. line 36 (f)  This section shall remain in effect only until January 1, 2031, line 37 and as of that date is repealed. line 38 SEC. 2. line 39 SEC. 3. No reimbursement is required by this act pursuant to line 40 Section 6 of Article XIIIB of the California Constitution because 98 — 4 — AB 115 99 line 1 a local agency or school district has the authority to levy service line 2 charges, fees, or assessments sufficient to pay for the program or line 3 level of service mandated by this act, within the meaning of Section line 4 17556 of the Government Code. O 98 AB 115 — 5 — 100 AMENDED IN ASSEMBLY APRIL 19, 2021 AMENDED IN ASSEMBLY APRIL 5, 2021 california legislature—2021–22 regular session ASSEMBLY BILL No. 1401 Introduced by Assembly Member Friedman (Coauthor: Assembly Member Lee) (Coauthors: Senators Skinner and Wiener) February 19, 2021 An act to add Section 65863.3 to the Government Code, relating to land use. legislative counsel’s digest AB 1401, as amended, Friedman. Residential and commercial development: parking requirements. The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a land use element and a conservation element. Existing law also permits variances to be granted from the parking requirements of a zoning ordinance for nonresidential development if the variance will be an incentive to the development and the variance will facilitate access to the development by patrons of public transit facilities. This bill would prohibit a local government from imposing a minimum automobile parking requirement, or enforcing a minimum automobile parking requirement, on residential, commercial, or other development if the development is located on a parcel that is within one-half mile walking distance of public transit, as defined. The bill would not 97 101 preclude a local government from imposing requirements when a project provides parking voluntarily to require spaces for car share vehicles. The bill would prohibit these provisions from reducing, eliminating, or precluding the enforcement of any requirement imposed on a new multifamily or nonresidential development to provide electric vehicle parking spaces or parking spaces that are accessible to persons with disabilities, as specified. By changing the duties of local planning officials, this bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 65863.3 is added to the Government line 2 Code, to read: line 3 65863.3. (a)  A local government shall not impose a minimum line 4 automobile parking requirement, or enforce a minimum automobile line 5 parking requirement, on residential, commercial, or other line 6 development if the parcel is located within one-half mile walking line 7 distance of public transit. line 8 (b)  When a project provides parking voluntarily, nothing in this line 9 section shall preclude a local government from imposing line 10 requirements on that voluntary parking to require spaces for car line 11 share vehicles. line 12 (c)  Subdivision (a) shall not reduce, eliminate, or preclude the line 13 enforcement of any requirement imposed on a new multifamily line 14 residential or nonresidential development to provide electric line 15 vehicle parking spaces or parking spaces that are accessible to line 16 persons with disabilities that would have otherwise applied to the line 17 development if this section did not apply. line 18 (c) 97 — 2 — AB 1401 102 line 1 (d)  For purposes of this section, “public transit” means either line 2 of the following: line 3 (1)  A high-quality transit corridor as defined in subdivision (b) line 4 of Section 21155 of the Public Resources Code. line 5 (2)  A major transit stop as defined in Section 21064.3 of the line 6 Public Resources Code. line 7 (d) line 8 (e)  The Legislature finds and declares that this section addresses line 9 a matter of statewide concern rather than a municipal affair as that line 10 term is used in Section 5 of Article XI of the California line 11 Constitution. Therefore, this section applies to all cities, including line 12 charter cities. line 13 SEC. 2. No reimbursement is required by this act pursuant to line 14 Section 6 of Article XIIIB of the California Constitution because line 15 a local agency or school district has the authority to levy service line 16 charges, fees, or assessments sufficient to pay for the program or line 17 level of service mandated by this act, within the meaning of Section line 18 17556 of the Government Code. O 97 AB 1401 — 3 — 103 AMENDED IN SENATE APRIL 12, 2021 AMENDED IN SENATE MARCH 8, 2021 SENATE BILL No. 6 Introduced by Senators Caballero, Eggman, and Rubio (Principal coauthors: Senators Atkins, Durazo, Gonzalez, Hertzberg, and Wiener) (Coauthors: Senators Cortese, Hueso, and Roth, and McGuire) (Coauthors: Assembly Members Arambula, Carrillo, Cooper, Gipson, Quirk-Silva, and Robert Rivas) December 7, 2020 An act to amend Section 65913.4 of, and to add and repeal Section 65852.23 of, the Government Code, relating to land use. legislative counsel’s digest SB 6, as amended, Caballero. Local planning: housing: commercial zones. The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. Existing law requires that the housing element include, among other things, an inventory of land suitable and available for residential development. If the inventory of sites does not identify adequate sites to accommodate the need for groups of all households pursuant to specified law, existing law requires the local government to rezone sites within specified time periods and that this rezoning accommodate 100% of the need for housing for very low and low-income households on sites that will be zoned to permit owner-occupied and rental multifamily residential use by right for specified developments. 97 104 This bill, the Neighborhood Homes Act, would deem a housing development project, as defined, an allowable use on a neighborhood lot, which is defined as a parcel within an office or retail commercial zone that is not adjacent to an industrial use. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. The bill would require the housing development to meet all other local requirements for a neighborhood lot, other than those that prohibit residential use, or allow residential use at a lower density than that required by the bill. The bill would provide that a housing development under these provisions is subject to the local zoning, parking, design, and other ordinances, local code requirements, and procedures applicable to the processing and permitting of a housing development in a zone that allows for the housing with the density required by the act. If more than one zoning designation of the local agency allows for housing with the density required by the act, the bill would require that the zoning standards that apply to the closest parcel that allows residential use at a density that meets the requirements of the act would apply. If the existing zoning designation allows residential use at a density greater than that required by the act, the bill would require that the existing zoning designation for the parcel would apply. The bill would also require that a housing development under these provisions comply with public notice, comment, hearing, or other procedures applicable to a housing development in a zone with the applicable density. The bill would require that the housing development is subject to a recorded deed restriction with an unspecified affordability requirement, as provided. The bill would require that a developer either certify that the development is a public work, as defined, or is not in its entirety a public work, but that all construction workers will be paid prevailing wages, as provided, or certify that a skilled and trained workforce, as defined, will be used to perform all construction work on the development, as provided. The bill would require a local agency to require that a rental of any unit created pursuant to the bill’s provisions be for a term longer than 30 days. The bill would authorize a local agency to exempt a neighborhood lot from these provisions in its land use element of the general plan if the local agency concurrently reallocates the lost residential density to other lots so that there is no net loss in residential density in the jurisdiction, as provided. The bill 97 — 2 — SB 6 105 would specify that it does not alter or affect the application of any housing, environmental, or labor law applicable to a housing development authorized by these provisions, including, but not limited to, the California Coastal Act, the California Environmental Quality Act, the Housing Accountability Act, obligations to affirmatively further fair housing, and any state or local affordability laws or tenant protection laws. The bill would require an applicant of a housing development under these provisions to provide notice of a pending application to each commercial tenant of the neighborhood lot. The bill would repeal these provisions on January 1, 2029. The bill would include findings that changes proposed by the Neighborhood Homes Act address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The Housing Accountability Act, which is part of the Planning and Zoning Law, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project, as defined for purposes of the act, for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes specified written findings based on a preponderance of the evidence in the record. That act states that it shall not be construed to prohibit a local agency from requiring a housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need, except as provided. That act further provides that a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. The bill would provide that for purposes of the Housing Accountability Act, a proposed housing development project is consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if the housing development project is consistent with the standards applied to the parcel pursuant to specified provisions of the Neighborhood Homes Act and if none of the square footage in the 97 SB 6 — 3 — 106 project is designated for hotel, motel, bed and breakfast inn, or other transient lodging use, except for a residential hotel, as defined. The Planning and Zoning Law, until January 1, 2026, also authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including a requirement that the site on which the development is proposed is zoned for residential use or residential mixed-use development, or has a general plan designation that allows residential use or a mix of residential and nonresidential uses, with at least 2⁄3 of the square footage of the development designated for residential use. Under that law, the proposed development is also required to be consistent with objective zoning standards, objective subdivision standards, and objective design review standards in effect at the time the development is submitted to the local government. This bill would permit the development to be proposed for a site zoned for office or retail commercial use if the site has had no commercial tenants on 50% or more of its total usable net interior square footage for a period of at least 3 years prior to the submission of the application. The bill would also provide that a project located on a neighborhood lot, as defined, shall be deemed consistent with objective zoning standards, objective design standards, and objective subdivision standards if the project is consistent with the applicable provisions of the Neighborhood Homes Act. By expanding the crime of perjury and imposing new duties on local agencies with regard to local planning and zoning, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 65852.23 is added to the Government line 2 Code, to read: 97 — 4 — SB 6 107 line 1 65852.23. (a)  (1)  This section shall be known, and may be line 2 cited, as the Neighborhood Homes Act. line 3 (2)  The Legislature finds and declares that creating more line 4 affordable housing is critical to the achievement of regional line 5 housing needs assessment goals, and that housing units developed line 6 at higher densities may generate affordability by design for line 7 California residents, without the necessity of public subsidies, line 8 income eligibility, occupancy restrictions, lottery procedures, or line 9 other legal requirements applicable to deed restricted affordable line 10 housing to serve very low and low-income residents and special line 11 needs residents. line 12 (b)  A housing development project shall be deemed an allowable line 13 use on a neighborhood lot if it complies with all of the following: line 14 (1)  (A)  The density for the housing development shall meet or line 15 exceed the applicable density deemed appropriate to accommodate line 16 housing for lower income households as follows: line 17 (i)  For an incorporated city within a nonmetropolitan county line 18 and for a nonmetropolitan county that has a micropolitan area, line 19 sites allowing at least 15 units per acre. line 20 (ii)  For an unincorporated area in a nonmetropolitan county not line 21 included in subparagraph (A), sites allowing at least 10 units per line 22 acre. line 23 (iii)  For a suburban jurisdiction, sites allowing at least 20 units line 24 per acre. line 25 (iv)  For a jurisdiction in a metropolitan county, sites allowing line 26 at least 30 units per acre. line 27 (B)  “Metropolitan county,” “nonmetropolitan county,” line 28 “nonmetropolitan county with a micropolitan area,” and line 29 “suburban,” shall have the same meanings as defined in line 30 subdivisions (d), (e), and (f) of Section 65583.2. line 31 (2)  (A)  The housing development shall be subject to local line 32 zoning, parking, design, and other ordinances, local code line 33 requirements, and procedures applicable to the processing and line 34 permitting of a housing development in a zone that allows for the line 35 housing with the density described in paragraph (1). line 36 (B)  If more than one zoning designation of the local agency line 37 allows for housing with the density described in paragraph (1), the line 38 zoning standards applicable to a parcel that allows residential use line 39 pursuant to this section shall be the zoning standards that apply to 97 SB 6 — 5 — 108 line 1 the closest parcel that allows residential use at a density that meets line 2 the requirements of paragraph (1). line 3 (C)  If the existing zoning designation for the parcel, as adopted line 4 by the local government, allows residential use at a density greater line 5 than that required in paragraph (1), the existing zoning designation line 6 shall apply. line 7 (3)  The housing development shall comply with any public line 8 notice, comment, hearing, or other procedures imposed by the line 9 local agency on a housing development in the applicable zoning line 10 designation identified in paragraph (2). line 11 (4)  The housing development shall be subject to a recorded deed line 12 restriction requiring that at least __ percent of the units have an line 13 affordable housing cost or affordable rent for lower income line 14 households. line 15 (5)  All other local requirements for a neighborhood lot, other line 16 than those that prohibit residential use, or allow residential use at line 17 a lower density than provided in paragraph (1). line 18 (6)  The developer has done both of the following: line 19 (A)  Certified to the local agency that either of the following is line 20 true: line 21 (i)  The entirety of the development is a public work for purposes line 22 of Chapter 1 (commencing with Section 1720) of Part 7 of Division line 23 2 of the Labor Code. line 24 (ii)  The development is not in its entirety a public work for line 25 which prevailing wages must be paid under Article 2 (commencing line 26 with Section 1720) of Chapter 1 of Part 2 of Division 2 of the line 27 Labor Code, but all construction workers employed on construction line 28 of the development will be paid at least the general prevailing rate line 29 of per diem wages for the type of work and geographic area, as line 30 determined by the Director of Industrial Relations pursuant to line 31 Sections 1773 and 1773.9 of the Labor Code, except that line 32 apprentices registered in programs approved by the Chief of the line 33 Division of Apprenticeship Standards may be paid at least the line 34 applicable apprentice prevailing rate. If the development is subject line 35 to this subparagraph, then for those portions of the development line 36 that are not a public work all of the following shall apply: line 37 (I)  The developer shall ensure that the prevailing wage line 38 requirement is included in all contracts for the performance of all line 39 construction work. 97 — 6 — SB 6 109 line 1 (II)  All contractors and subcontractors shall pay to all line 2 construction workers employed in the execution of the work at line 3 least the general prevailing rate of per diem wages, except that line 4 apprentices registered in programs approved by the Chief of the line 5 Division of Apprenticeship Standards may be paid at least the line 6 applicable apprentice prevailing rate. line 7 (III)  Except as provided in subclause (V), all contractors and line 8 subcontractors shall maintain and verify payroll records pursuant line 9 to Section 1776 of the Labor Code and make those records line 10 available for inspection and copying as provided therein. line 11 (IV)  Except as provided in subclause (V), the obligation of the line 12 contractors and subcontractors to pay prevailing wages may be line 13 enforced by the Labor Commissioner through the issuance of a line 14 civil wage and penalty assessment pursuant to Section 1741 of the line 15 Labor Code, which may be reviewed pursuant to Section 1742 of line 16 the Labor Code, within 18 months after the completion of the line 17 development, or by an underpaid worker through an administrative line 18 complaint or civil action, or by a joint labor-management line 19 committee though a civil action under Section 1771.2 of the Labor line 20 Code. If a civil wage and penalty assessment is issued, the line 21 contractor, subcontractor, and surety on a bond or bonds issued to line 22 secure the payment of wages covered by the assessment shall be line 23 liable for liquidated damages pursuant to Section 1742.1 of the line 24 Labor Code. line 25 (V)  Subclauses (III) and (IV) shall not apply if all contractors line 26 and subcontractors performing work on the development are subject line 27 to a project labor agreement that requires the payment of prevailing line 28 wages to all construction workers employed in the execution of line 29 the development and provides for enforcement of that obligation line 30 through an arbitration procedure. For purposes of this clause, line 31 “project labor agreement” has the same meaning as set forth in line 32 paragraph (1) of subdivision (b) of Section 2500 of the Public line 33 Contract Code. line 34 (VI)  Notwithstanding subdivision (c) of Section 1773.1 of the line 35 Labor Code, the requirement that employer payments not reduce line 36 the obligation to pay the hourly straight time or overtime wages line 37 found to be prevailing shall not apply if otherwise provided in a line 38 bona fide collective bargaining agreement covering the worker. line 39 The requirement to pay at least the general prevailing rate of per line 40 diem wages does not preclude use of an alternative workweek 97 SB 6 — 7 — 110 line 1 schedule adopted pursuant to Section 511 or 514 of the Labor line 2 Code. line 3 (B)  Certified to the local agency that a skilled and trained line 4 workforce will be used to perform all construction work on the line 5 development. line 6 (i)  For purposes of this section, “skilled and trained workforce” line 7 has the same meaning as provided in Chapter 2.9 (commencing line 8 with Section 2600) of Part 1 of Division 2 of the Public Contract line 9 Code. line 10 (ii)  If the developer has certified that a skilled and trained line 11 workforce will be used to construct all work on development and line 12 the application is approved, the following shall apply: line 13 (I)  The developer shall require in all contracts for the line 14 performance of work that every contractor and subcontractor at line 15 every tier will individually use a skilled and trained workforce to line 16 construct the development. line 17 (II)  Every contractor and subcontractor shall use a skilled and line 18 trained workforce to construct the development. line 19 (III)  Except as provided in subclause (IV), the developer shall line 20 provide to the local agency, on a monthly basis while the line 21 development or contract is being performed, a report demonstrating line 22 compliance with Chapter 2.9 (commencing with Section 2600) of line 23 Part 1 of Division 2 of the Public Contract Code. A monthly report line 24 provided to the local government pursuant to this subclause shall line 25 be a public record under the California Public Records Act (Chapter line 26 3.5 (commencing with Section 6250) of Division 7 of Title 1) and line 27 shall be open to public inspection. A developer that fails to provide line 28 a monthly report demonstrating compliance with Chapter 2.9 line 29 (commencing with Section 2600) of Part 1 of Division 2 of the line 30 Public Contract Code shall be subject to a civil penalty of ten line 31 thousand dollars ($10,000) per month for each month for which line 32 the report has not been provided. Any contractor or subcontractor line 33 that fails to use a skilled and trained workforce shall be subject to line 34 a civil penalty of two hundred dollars ($200) per day for each line 35 worker employed in contravention of the skilled and trained line 36 workforce requirement. Penalties may be assessed by the Labor line 37 Commissioner within 18 months of completion of the development line 38 using the same procedures for issuance of civil wage and penalty line 39 assessments pursuant to Section 1741 of the Labor Code, and may line 40 be reviewed pursuant to the same procedures in Section 1742 of 97 — 8 — SB 6 111 line 1 the Labor Code. Penalties shall be paid to the State Public Works line 2 Enforcement Fund. line 3 (IV)  Subclause (III) shall not apply if all contractors and line 4 subcontractors performing work on the development are subject line 5 to a project labor agreement that requires compliance with the line 6 skilled and trained workforce requirement and provides for line 7 enforcement of that obligation through an arbitration procedure. line 8 For purposes of this subparagraph, “project labor agreement” has line 9 the same meaning as set forth in paragraph (1) of subdivision (b) line 10 of Section 2500 of the Public Contract Code. line 11 (c)  A local agency shall require that a rental of any unit created line 12 pursuant to this section be for a term longer than 30 days. line 13 (d)  (1)  A local agency may exempt a neighborhood lot from line 14 this section in its land use element of the general plan if the local line 15 agency concurrently reallocates the lost residential density to other line 16 lots so that there is no net loss in residential density in the line 17 jurisdiction. line 18 (2)  A local agency may reallocate the residential density from line 19 an exempt neighborhood lot pursuant to this subdivision only if line 20 the site or sites chosen by the local agency to which the residential line 21 density is reallocated meet both of the following requirements: line 22 (A)  The site or sites are suitable for residential development. line 23 For purposes of this subparagraph, “site or sites suitable for line 24 residential development” shall have the same meaning as “land line 25 suitable for residential development,” as defined in Section line 26 65583.2. line 27 (B)  The site or sites are subject to an ordinance that allows for line 28 development by right. line 29 (e)  (1)  This section does not alter or lessen the applicability of line 30 any housing, environmental, or labor law applicable to a housing line 31 development authorized by this section, including, but not limited line 32 to, the following: line 33 (A)  The California Coastal Act of 1976 (Division 20 line 34 (commencing with Section 30000) of the Public Resources Code). line 35 (B)  The California Environmental Quality Act (Division 13 line 36 (commencing with Section 21000) of the Public Resources Code). line 37 (C)  The Housing Accountability Act (Section 65589.5). line 38 (D)  The Density Bonus Law (Section 65915). line 39 (E)  Obligations to affirmatively further fair housing, pursuant line 40 to Section 8899.50. 97 SB 6 — 9 — 112 line 1 (F)  State or local affordable housing laws. line 2 (G)  State or local tenant protection laws. line 3 (2)  All local demolition ordinances shall apply to a project line 4 developed on a neighborhood lot. line 5 (3)  For purposes of the Housing Accountability Act (Section line 6 65589.5), a proposed housing development project that is consistent line 7 with the provisions of paragraph (2) of subdivision (b) shall be line 8 deemed consistent, compliant, and in conformity with an applicable line 9 plan, program, policy, ordinance, standard, requirement, or other line 10 similar provision. line 11 (4)  Notwithstanding any other provision of this section, for line 12 purposes of the Density Bonus Law (Section 65915), an applicant line 13 for a housing development under this section may apply for a line 14 density bonus pursuant to Section 65915. line 15 (f)  An applicant for a housing development under this section line 16 shall provide written notice of the pending application to each line 17 commercial tenant on the neighborhood lot when the application line 18 is submitted. line 19 (g)  Notwithstanding Section 65913.4, a project on a line 20 neighborhood lot shall not be eligible for streamlining pursuant to line 21 Section 65913.4 if it meets either of the following conditions: line 22 (1)  The site has previously been developed pursuant to Section line 23 65913.4 with a project of 10 units or fewer. line 24 (2)  The developer of the project or any person acting in concert line 25 with the developer has previously proposed a project pursuant to line 26 Section 65913.4 of 10 units or fewer on the same or an adjacent line 27 site. line 28 (h)   For purposes of this section: line 29 (1)  “Housing development project” means a project consisting line 30 of any of the following: line 31 (A)  Residential units only. line 32 (B)  Mixed-use developments consisting of residential and line 33 nonresidential retail commercial or office uses, and at least 50 line 34 percent of the square footage of the new construction associated line 35 with the project is designated for residential use. None of the square line 36 footage of any such development shall be designated for hotel, line 37 motel, bed and breakfast inn, or other transient lodging use, except line 38 for a residential hotel. line 39 (2)  “Local agency” means a city, including a charter city, county, line 40 or a city and county. 97 — 10 — SB 6 113 line 1 (3)  “Neighborhood lot” means a parcel within an office or retail line 2 commercial zone that is not adjacent to an industrial use. line 3 (4)  “Office or retail commercial zone” means any commercial line 4 zone, except for zones where office uses and retail uses are not line 5 permitted, or are permitted only as an accessory use. line 6 (5)  “Residential hotel” has the same meaning as defined in line 7 Section 50519 of the Health and Safety Code. line 8 (i)  The Legislature finds and declares that ensuring access to line 9 affordable housing is a matter of statewide concern and is not a line 10 municipal affair as that term is used in Section 5 of Article XI of line 11 the California Constitution. Therefore, this section applies to all line 12 cities, including charter cities. line 13 (j)  This section shall remain in effect only until January 1, 2029, line 14 and as of that date is repealed. line 15 SEC. 2. Section 65913.4 of the Government Code is amended line 16 to read: line 17 65913.4. (a)  A development proponent may submit an line 18 application for a development that is subject to the streamlined, line 19 ministerial approval process provided by subdivision (c) and is line 20 not subject to a conditional use permit if the development complies line 21 with subdivision (b) and satisfies all of the following objective line 22 planning standards: line 23 (1)  The development is a multifamily housing development that line 24 contains two or more residential units. line 25 (2)  The development and the site on which it is located satisfy line 26 all of the following: line 27 (A)  It is a legal parcel or parcels located in a city if, and only line 28 if, the city boundaries include some portion of either an urbanized line 29 area or urban cluster, as designated by the United States Census line 30 Bureau, or, for unincorporated areas, a legal parcel or parcels line 31 wholly within the boundaries of an urbanized area or urban cluster, line 32 as designated by the United States Census Bureau. line 33 (B)  At least 75 percent of the perimeter of the site adjoins parcels line 34 that are developed with urban uses. For the purposes of this section, line 35 parcels that are only separated by a street or highway shall be line 36 considered to be adjoined. line 37 (C)  (i) A site that meets the requirements of clause (ii) and line 38 satisfies any of the following: line 39 (I)  The site is zoned for residential use or residential mixed-use line 40 development. 97 SB 6 — 11 — 114 line 1 (II)  The site has a general plan designation that allows residential line 2 use or a mix of residential and nonresidential uses. line 3 (III)  The site is zoned for office or retail commercial use and line 4 has had no commercial tenants on 50 percent or more of its total line 5 usable net interior square footage for a period of at least three years line 6 prior to the submission of the application. line 7 (ii)  At least two-thirds of the square footage of the development line 8 is designated for residential use. Additional density, floor area, line 9 and units, and any other concession, incentive, or waiver of line 10 development standards granted pursuant to the Density Bonus Law line 11 in Section 65915 shall be included in the square footage line 12 calculation. The square footage of the development shall not line 13 include underground space, such as basements or underground line 14 parking garages. line 15 (3)  (A)  The development proponent has committed to record, line 16 prior to the issuance of the first building permit, a land use line 17 restriction or covenant providing that any lower or moderate line 18 income housing units required pursuant to subparagraph (B) of line 19 paragraph (4) shall remain available at affordable housing costs line 20 or rent to persons and families of lower or moderate income for line 21 no less than the following periods of time: line 22 (i)  Fifty-five years for units that are rented. line 23 (ii)  Forty-five years for units that are owned. line 24 (B)  The city or county shall require the recording of covenants line 25 or restrictions implementing this paragraph for each parcel or unit line 26 of real property included in the development. line 27 (4)  The development satisfies subparagraphs (A) and (B) below: line 28 (A)  Is located in a locality that the department has determined line 29 is subject to this subparagraph on the basis that the number of units line 30 that have been issued building permits, as shown on the most recent line 31 production report received by the department, is less than the line 32 locality’s share of the regional housing needs, by income category, line 33 for that reporting period. A locality shall remain eligible under line 34 this subparagraph until the department’s determination for the next line 35 reporting period. line 36 (B)  The development is subject to a requirement mandating a line 37 minimum percentage of below market rate housing based on one line 38 of the following: line 39 (i)  The locality did not submit its latest production report to the line 40 department by the time period required by Section 65400, or that 97 — 12 — SB 6 115 line 1 production report reflects that there were fewer units of above line 2 moderate-income housing issued building permits than were line 3 required for the regional housing needs assessment cycle for that line 4 reporting period. In addition, if the project contains more than 10 line 5 units of housing, the project does either of the following: line 6 (I)  The project dedicates a minimum of 10 percent of the total line 7 number of units to housing affordable to households making at or line 8 below 80 percent of the area median income. However, if the line 9 locality has adopted a local ordinance that requires that greater line 10 than 10 percent of the units be dedicated to housing affordable to line 11 households making below 80 percent of the area median income, line 12 that local ordinance applies. line 13 (II)  (ia)  If the project is located within the San Francisco Bay line 14 area, the project, in lieu of complying with subclause (I), dedicates line 15 20 percent of the total number of units to housing affordable to line 16 households making below 120 percent of the area median income line 17 with the average income of the units at or below 100 percent of line 18 the area median income. However, a local ordinance adopted by line 19 the locality applies if it requires greater than 20 percent of the units line 20 be dedicated to housing affordable to households making at or line 21 below 120 percent of the area median income, or requires that any line 22 of the units be dedicated at a level deeper than 120 percent. In line 23 order to comply with this subclause, the rent or sale price charged line 24 for units that are dedicated to housing affordable to households line 25 between 80 percent and 120 percent of the area median income line 26 shall not exceed 30 percent of the gross income of the household. line 27 (ib)  For purposes of this subclause, “San Francisco Bay area” line 28 means the entire area within the territorial boundaries of the line 29 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, line 30 Santa Clara, Solano, and Sonoma, and the City and County of San line 31 Francisco. line 32 (ii)  The locality’s latest production report reflects that there line 33 were fewer units of housing issued building permits affordable to line 34 either very low income or low-income households by income line 35 category than were required for the regional housing needs line 36 assessment cycle for that reporting period, and the project seeking line 37 approval dedicates 50 percent of the total number of units to line 38 housing affordable to households making at or below 80 percent line 39 of the area median income. However, if the locality has adopted line 40 a local ordinance that requires that greater than 50 percent of the 97 SB 6 — 13 — 116 line 1 units be dedicated to housing affordable to households making at line 2 or below 80 percent of the area median income, that local ordinance line 3 applies. line 4 (iii)  The locality did not submit its latest production report to line 5 the department by the time period required by Section 65400, or line 6 if the production report reflects that there were fewer units of line 7 housing affordable to both income levels described in clauses (i) line 8 and (ii) that were issued building permits than were required for line 9 the regional housing needs assessment cycle for that reporting line 10 period, the project seeking approval may choose between utilizing line 11 clause (i) or (ii). line 12 (C)  (i)  A development proponent that uses a unit of affordable line 13 housing to satisfy the requirements of subparagraph (B) may also line 14 satisfy any other local or state requirement for affordable housing, line 15 including local ordinances or the Density Bonus Law in Section line 16 65915, provided that the development proponent complies with line 17 the applicable requirements in the state or local law. line 18 (ii)  A development proponent that uses a unit of affordable line 19 housing to satisfy any other state or local affordability requirement line 20 may also satisfy the requirements of subparagraph (B), provided line 21 that the development proponent complies with applicable line 22 requirements of subparagraph (B). line 23 (iii)  A development proponent may satisfy the affordability line 24 requirements of subparagraph (B) with a unit that is restricted to line 25 households with incomes lower than the applicable income limits line 26 required in subparagraph (B). line 27 (5)  The development, excluding any additional density or any line 28 other concessions, incentives, or waivers of development standards line 29 granted pursuant to the Density Bonus Law in Section 65915, is line 30 consistent with objective zoning standards, objective subdivision line 31 standards, and objective design review standards in effect at the line 32 time that the development is submitted to the local government line 33 pursuant to this section, or at the time a notice of intent is submitted line 34 pursuant to subdivision (b), whichever occurs earlier. For purposes line 35 of this paragraph, “objective zoning standards,” “objective line 36 subdivision standards,” and “objective design review standards” line 37 mean standards that involve no personal or subjective judgment line 38 by a public official and are uniformly verifiable by reference to line 39 an external and uniform benchmark or criterion available and line 40 knowable by both the development applicant or proponent and the 97 — 14 — SB 6 117 line 1 public official before submittal. These standards may be embodied line 2 in alternative objective land use specifications adopted by a city line 3 or county, and may include, but are not limited to, housing overlay line 4 zones, specific plans, inclusionary zoning ordinances, and density line 5 bonus ordinances, subject to the following: line 6 (A)  A development shall be deemed consistent with the objective line 7 zoning standards related to housing density, as applicable, if the line 8 density proposed is compliant with the maximum density allowed line 9 within that land use designation, notwithstanding any specified line 10 maximum unit allocation that may result in fewer units of housing line 11 being permitted. line 12 (B)  In the event that objective zoning, general plan, subdivision, line 13 or design review standards are mutually inconsistent, a line 14 development shall be deemed consistent with the objective zoning line 15 and subdivision standards pursuant to this subdivision if the line 16 development is consistent with the standards set forth in the general line 17 plan. line 18 (C)  It is the intent of the Legislature that the objective zoning line 19 standards, objective subdivision standards, and objective design line 20 review standards described in this paragraph be adopted or line 21 amended in compliance with the requirements of Chapter 905 of line 22 the Statutes of 2004. line 23 (D)  The amendments to this subdivision made by the act adding line 24 this subparagraph do not constitute a change in, but are declaratory line 25 of, existing law. line 26 (E) A project located on a neighborhood lot, as defined in Section line 27 65852.23, shall be deemed consistent with objective zoning line 28 standards, objective design standards, and objective subdivision line 29 standards if the project is consistent with the provisions of line 30 subdivision (b) of Section 65852.23 and if none of the square line 31 footage in the project is designated for hotel, motel, bed and line 32 breakfast inn, or other transient lodging use, except for a residential line 33 hotel. For purposes of this subdivision, “residential hotel” shall line 34 have the same meaning as defined in Section 50519 of the Health line 35 and Safety Code. line 36 (6)  The development is not located on a site that is any of the line 37 following: line 38 (A)  A coastal zone, as defined in Division 20 (commencing line 39 with Section 30000) of the Public Resources Code. 97 SB 6 — 15 — 118 line 1 (B)  Either prime farmland or farmland of statewide importance, line 2 as defined pursuant to United States Department of Agriculture line 3 land inventory and monitoring criteria, as modified for California, line 4 and designated on the maps prepared by the Farmland Mapping line 5 and Monitoring Program of the Department of Conservation, or line 6 land zoned or designated for agricultural protection or preservation line 7 by a local ballot measure that was approved by the voters of that line 8 jurisdiction. line 9 (C)  Wetlands, as defined in the United States Fish and Wildlife line 10 Service Manual, Part 660 FW 2 (June 21, 1993). line 11 (D)  Within a very high fire hazard severity zone, as determined line 12 by the Department of Forestry and Fire Protection pursuant to line 13 Section 51178, or within a high or very high fire hazard severity line 14 zone as indicated on maps adopted by the Department of Forestry line 15 and Fire Protection pursuant to Section 4202 of the Public line 16 Resources Code. This subparagraph does not apply to sites line 17 excluded from the specified hazard zones by a local agency, line 18 pursuant to subdivision (b) of Section 51179, or sites that have line 19 adopted fire hazard mitigation measures pursuant to existing line 20 building standards or state fire mitigation measures applicable to line 21 the development. line 22 (E)  A hazardous waste site that is listed pursuant to Section line 23 65962.5 or a hazardous waste site designated by the Department line 24 of Toxic Substances Control pursuant to Section 25356 of the line 25 Health and Safety Code, unless the State Department of Public line 26 Health, State Water Resources Control Board, or Department of line 27 Toxic Substances Control has cleared the site for residential use line 28 or residential mixed uses. line 29 (F)  Within a delineated earthquake fault zone as determined by line 30 the State Geologist in any official maps published by the State line 31 Geologist, unless the development complies with applicable seismic line 32 protection building code standards adopted by the California line 33 Building Standards Commission under the California Building line 34 Standards Law (Part 2.5 (commencing with Section 18901) of line 35 Division 13 of the Health and Safety Code), and by any local line 36 building department under Chapter 12.2 (commencing with Section line 37 8875) of Division 1 of Title 2. line 38 (G)  Within a special flood hazard area subject to inundation by line 39 the 1 percent annual chance flood (100-year flood) as determined line 40 by the Federal Emergency Management Agency in any official 97 — 16 — SB 6 119 line 1 maps published by the Federal Emergency Management Agency. line 2 If a development proponent is able to satisfy all applicable federal line 3 qualifying criteria in order to provide that the site satisfies this line 4 subparagraph and is otherwise eligible for streamlined approval line 5 under this section, a local government shall not deny the application line 6 on the basis that the development proponent did not comply with line 7 any additional permit requirement, standard, or action adopted by line 8 that local government that is applicable to that site. A development line 9 may be located on a site described in this subparagraph if either line 10 of the following are met: line 11 (i)  The site has been subject to a Letter of Map Revision line 12 prepared by the Federal Emergency Management Agency and line 13 issued to the local jurisdiction. line 14 (ii)  The site meets Federal Emergency Management Agency line 15 requirements necessary to meet minimum flood plain management line 16 criteria of the National Flood Insurance Program pursuant to Part line 17 59 (commencing with Section 59.1) and Part 60 (commencing line 18 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the line 19 Code of Federal Regulations. line 20 (H)  Within a regulatory floodway as determined by the Federal line 21 Emergency Management Agency in any official maps published line 22 by the Federal Emergency Management Agency, unless the line 23 development has received a no-rise certification in accordance line 24 with Section 60.3(d)(3) of Title 44 of the Code of Federal line 25 Regulations. If a development proponent is able to satisfy all line 26 applicable federal qualifying criteria in order to provide that the line 27 site satisfies this subparagraph and is otherwise eligible for line 28 streamlined approval under this section, a local government shall line 29 not deny the application on the basis that the development line 30 proponent did not comply with any additional permit requirement, line 31 standard, or action adopted by that local government that is line 32 applicable to that site. line 33 (I)  Lands identified for conservation in an adopted natural line 34 community conservation plan pursuant to the Natural Community line 35 Conservation Planning Act (Chapter 10 (commencing with Section line 36 2800) of Division 3 of the Fish and Game Code), habitat line 37 conservation plan pursuant to the federal Endangered Species Act line 38 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural line 39 resource protection plan. 97 SB 6 — 17 — 120 line 1 (J)  Habitat for protected species identified as candidate, line 2 sensitive, or species of special status by state or federal agencies, line 3 fully protected species, or species protected by the federal line 4 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), line 5 the California Endangered Species Act (Chapter 1.5 (commencing line 6 with Section 2050) of Division 3 of the Fish and Game Code), or line 7 the Native Plant Protection Act (Chapter 10 (commencing with line 8 Section 1900) of Division 2 of the Fish and Game Code). line 9 (K)  Lands under conservation easement. line 10 (7)  The development is not located on a site where any of the line 11 following apply: line 12 (A)  The development would require the demolition of the line 13 following types of housing: line 14 (i)  Housing that is subject to a recorded covenant, ordinance, line 15 or law that restricts rents to levels affordable to persons and line 16 families of moderate, low, or very low income. line 17 (ii)  Housing that is subject to any form of rent or price control line 18 through a public entity’s valid exercise of its police power. line 19 (iii)  Housing that has been occupied by tenants within the past line 20 10 years. line 21 (B)  The site was previously used for housing that was occupied line 22 by tenants that was demolished within 10 years before the line 23 development proponent submits an application under this section. line 24 (C)  The development would require the demolition of a historic line 25 structure that was placed on a national, state, or local historic line 26 register. line 27 (D)  The property contains housing units that are occupied by line 28 tenants, and units at the property are, or were, subsequently offered line 29 for sale to the general public by the subdivider or subsequent owner line 30 of the property. line 31 (8)  The development proponent has done both of the following, line 32 as applicable: line 33 (A)  Certified to the locality that either of the following is true, line 34 as applicable: line 35 (i)  The entirety of the development is a public work for purposes line 36 of Chapter 1 (commencing with Section 1720) of Part 7 of Division line 37 2 of the Labor Code. line 38 (ii)  If the development is not in its entirety a public work, that line 39 all construction workers employed in the execution of the line 40 development will be paid at least the general prevailing rate of per 97 — 18 — SB 6 121 line 1 diem wages for the type of work and geographic area, as line 2 determined by the Director of Industrial Relations pursuant to line 3 Sections 1773 and 1773.9 of the Labor Code, except that line 4 apprentices registered in programs approved by the Chief of the line 5 Division of Apprenticeship Standards may be paid at least the line 6 applicable apprentice prevailing rate. If the development is subject line 7 to this subparagraph, then for those portions of the development line 8 that are not a public work all of the following shall apply: line 9 (I)  The development proponent shall ensure that the prevailing line 10 wage requirement is included in all contracts for the performance line 11 of the work. line 12 (II)  All contractors and subcontractors shall pay to all line 13 construction workers employed in the execution of the work at line 14 least the general prevailing rate of per diem wages, except that line 15 apprentices registered in programs approved by the Chief of the line 16 Division of Apprenticeship Standards may be paid at least the line 17 applicable apprentice prevailing rate. line 18 (III)  Except as provided in subclause (V), all contractors and line 19 subcontractors shall maintain and verify payroll records pursuant line 20 to Section 1776 of the Labor Code and make those records line 21 available for inspection and copying as provided therein. line 22 (IV)  Except as provided in subclause (V), the obligation of the line 23 contractors and subcontractors to pay prevailing wages may be line 24 enforced by the Labor Commissioner through the issuance of a line 25 civil wage and penalty assessment pursuant to Section 1741 of the line 26 Labor Code, which may be reviewed pursuant to Section 1742 of line 27 the Labor Code, within 18 months after the completion of the line 28 development, by an underpaid worker through an administrative line 29 complaint or civil action, or by a joint labor-management line 30 committee through a civil action under Section 1771.2 of the Labor line 31 Code. If a civil wage and penalty assessment is issued, the line 32 contractor, subcontractor, and surety on a bond or bonds issued to line 33 secure the payment of wages covered by the assessment shall be line 34 liable for liquidated damages pursuant to Section 1742.1 of the line 35 Labor Code. line 36 (V)  Subclauses (III) and (IV) shall not apply if all contractors line 37 and subcontractors performing work on the development are subject line 38 to a project labor agreement that requires the payment of prevailing line 39 wages to all construction workers employed in the execution of line 40 the development and provides for enforcement of that obligation 97 SB 6 — 19 — 122 line 1 through an arbitration procedure. For purposes of this clause, line 2 “project labor agreement” has the same meaning as set forth in line 3 paragraph (1) of subdivision (b) of Section 2500 of the Public line 4 Contract Code. line 5 (VI)  Notwithstanding subdivision (c) of Section 1773.1 of the line 6 Labor Code, the requirement that employer payments not reduce line 7 the obligation to pay the hourly straight time or overtime wages line 8 found to be prevailing shall not apply if otherwise provided in a line 9 bona fide collective bargaining agreement covering the worker. line 10 The requirement to pay at least the general prevailing rate of per line 11 diem wages does not preclude use of an alternative workweek line 12 schedule adopted pursuant to Section 511 or 514 of the Labor line 13 Code. line 14 (B)  (i)  For developments for which any of the following line 15 conditions apply, certified that a skilled and trained workforce line 16 shall be used to complete the development if the application is line 17 approved: line 18 (I)  On and after January 1, 2018, until December 31, 2021, the line 19 development consists of 75 or more units with a residential line 20 component that is not 100 percent subsidized affordable housing line 21 and will be located within a jurisdiction located in a coastal or bay line 22 county with a population of 225,000 or more. line 23 (II)  On and after January 1, 2022, until December 31, 2025, the line 24 development consists of 50 or more units with a residential line 25 component that is not 100 percent subsidized affordable housing line 26 and will be located within a jurisdiction located in a coastal or bay line 27 county with a population of 225,000 or more. line 28 (III)  On and after January 1, 2018, until December 31, 2019, line 29 the development consists of 75 or more units with a residential line 30 component that is not 100 percent subsidized affordable housing line 31 and will be located within a jurisdiction with a population of fewer line 32 than 550,000 and that is not located in a coastal or bay county. line 33 (IV)  On and after January 1, 2020, until December 31, 2021, line 34 the development consists of more than 50 units with a residential line 35 component that is not 100 percent subsidized affordable housing line 36 and will be located within a jurisdiction with a population of fewer line 37 than 550,000 and that is not located in a coastal or bay county. line 38 (V)  On and after January 1, 2022, until December 31, 2025, the line 39 development consists of more than 25 units with a residential line 40 component that is not 100 percent subsidized affordable housing 97 — 20 — SB 6 123 line 1 and will be located within a jurisdiction with a population of fewer line 2 than 550,000 and that is not located in a coastal or bay county. line 3 (ii)  For purposes of this section, “skilled and trained workforce” line 4 has the same meaning as provided in Chapter 2.9 (commencing line 5 with Section 2600) of Part 1 of Division 2 of the Public Contract line 6 Code. line 7 (iii)  If the development proponent has certified that a skilled line 8 and trained workforce will be used to complete the development line 9 and the application is approved, the following shall apply: line 10 (I)  The applicant shall require in all contracts for the line 11 performance of work that every contractor and subcontractor at line 12 every tier will individually use a skilled and trained workforce to line 13 complete the development. line 14 (II)  Every contractor and subcontractor shall use a skilled and line 15 trained workforce to complete the development. line 16 (III)  Except as provided in subclause (IV), the applicant shall line 17 provide to the locality, on a monthly basis while the development line 18 or contract is being performed, a report demonstrating compliance line 19 with Chapter 2.9 (commencing with Section 2600) of Part 1 of line 20 Division 2 of the Public Contract Code. A monthly report provided line 21 to the locality pursuant to this subclause shall be a public record line 22 under the California Public Records Act (Chapter 3.5 (commencing line 23 with Section 6250) of Division 7 of Title 1) and shall be open to line 24 public inspection. An applicant that fails to provide a monthly line 25 report demonstrating compliance with Chapter 2.9 (commencing line 26 with Section 2600) of Part 1 of Division 2 of the Public Contract line 27 Code shall be subject to a civil penalty of ten thousand dollars line 28 ($10,000) per month for each month for which the report has not line 29 been provided. Any contractor or subcontractor that fails to use a line 30 skilled and trained workforce shall be subject to a civil penalty of line 31 two hundred dollars ($200) per day for each worker employed in line 32 contravention of the skilled and trained workforce requirement. line 33 Penalties may be assessed by the Labor Commissioner within 18 line 34 months of completion of the development using the same line 35 procedures for issuance of civil wage and penalty assessments line 36 pursuant to Section 1741 of the Labor Code, and may be reviewed line 37 pursuant to the same procedures in Section 1742 of the Labor line 38 Code. Penalties shall be paid to the State Public Works line 39 Enforcement Fund. 97 SB 6 — 21 — 124 line 1 (IV)  Subclause (III) shall not apply if all contractors and line 2 subcontractors performing work on the development are subject line 3 to a project labor agreement that requires compliance with the line 4 skilled and trained workforce requirement and provides for line 5 enforcement of that obligation through an arbitration procedure. line 6 For purposes of this subparagraph, “project labor agreement” has line 7 the same meaning as set forth in paragraph (1) of subdivision (b) line 8 of Section 2500 of the Public Contract Code. line 9 (C)  Notwithstanding subparagraphs (A) and (B), a development line 10 that is subject to approval pursuant to this section is exempt from line 11 any requirement to pay prevailing wages or use a skilled and line 12 trained workforce if it meets both of the following: line 13 (i)  The project includes 10 or fewer units. line 14 (ii)  The project is not a public work for purposes of Chapter 1 line 15 (commencing with Section 1720) of Part 7 of Division 2 of the line 16 Labor Code. line 17 (9)  The development did not or does not involve a subdivision line 18 of a parcel that is, or, notwithstanding this section, would otherwise line 19 be, subject to the Subdivision Map Act (Division 2 (commencing line 20 with Section 66410)) or any other applicable law authorizing the line 21 subdivision of land, unless the development is consistent with all line 22 objective subdivision standards in the local subdivision ordinance, line 23 and either of the following apply: line 24 (A)  The development has received or will receive financing or line 25 funding by means of a low-income housing tax credit and is subject line 26 to the requirement that prevailing wages be paid pursuant to line 27 subparagraph (A) of paragraph (8). line 28 (B)  The development is subject to the requirement that line 29 prevailing wages be paid, and a skilled and trained workforce used, line 30 pursuant to paragraph (8). line 31 (10)  The development shall not be upon an existing parcel of line 32 land or site that is governed under the Mobilehome Residency Law line 33 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 line 34 of Division 2 of the Civil Code), the Recreational Vehicle Park line 35 Occupancy Law (Chapter 2.6 (commencing with Section 799.20) line 36 of Title 2 of Part 2 of Division 2 of the Civil Code), the line 37 Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) line 38 of Division 13 of the Health and Safety Code), or the Special line 39 Occupancy Parks Act (Part 2.3 (commencing with Section 18860) line 40 of Division 13 of the Health and Safety Code). 97 — 22 — SB 6 125 line 1 (b)  (1)  (A)  (i)  Before submitting an application for a line 2 development subject to the streamlined, ministerial approval line 3 process described in subdivision (c), the development proponent line 4 shall submit to the local government a notice of its intent to submit line 5 an application. The notice of intent shall be in the form of a line 6 preliminary application that includes all of the information line 7 described in Section 65941.1, as that section read on January 1, line 8 2020. line 9 (ii)  Upon receipt of a notice of intent to submit an application line 10 described in clause (i), the local government shall engage in a line 11 scoping consultation regarding the proposed development with line 12 any California Native American tribe that is traditionally and line 13 culturally affiliated with the geographic area, as described in line 14 Section 21080.3.1 of the Public Resources Code, of the proposed line 15 development. In order to expedite compliance with this subdivision, line 16 the local government shall contact the Native American Heritage line 17 Commission for assistance in identifying any California Native line 18 American tribe that is traditionally and culturally affiliated with line 19 the geographic area of the proposed development. line 20 (iii)  The timeline for noticing and commencing a scoping line 21 consultation in accordance with this subdivision shall be as follows: line 22 (I)  The local government shall provide a formal notice of a line 23 development proponent’s notice of intent to submit an application line 24 described in clause (i) to each California Native American tribe line 25 that is traditionally and culturally affiliated with the geographic line 26 area of the proposed development within 30 days of receiving that line 27 notice of intent. The formal notice provided pursuant to this line 28 subclause shall include all of the following: line 29 (ia)  A description of the proposed development. line 30 (ib)  The location of the proposed development. line 31 (ic)  An invitation to engage in a scoping consultation in line 32 accordance with this subdivision. line 33 (II)  Each California Native American tribe that receives a formal line 34 notice pursuant to this clause shall have 30 days from the receipt line 35 of that notice to accept the invitation to engage in a scoping line 36 consultation. line 37 (III)  If the local government receives a response accepting an line 38 invitation to engage in a scoping consultation pursuant to this line 39 subdivision, the local government shall commence the scoping line 40 consultation within 30 days of receiving that response. 97 SB 6 — 23 — 126 line 1 (B)  The scoping consultation shall recognize that California line 2 Native American tribes traditionally and culturally affiliated with line 3 a geographic area have knowledge and expertise concerning the line 4 resources at issue and shall take into account the cultural line 5 significance of the resource to the culturally affiliated California line 6 Native American tribe. line 7 (C)  The parties to a scoping consultation conducted pursuant line 8 to this subdivision shall be the local government and any California line 9 Native American tribe traditionally and culturally affiliated with line 10 the geographic area of the proposed development. More than one line 11 California Native American tribe traditionally and culturally line 12 affiliated with the geographic area of the proposed development line 13 may participate in the scoping consultation. However, the local line 14 government, upon the request of any California Native American line 15 tribe traditionally and culturally affiliated with the geographic area line 16 of the proposed development, shall engage in a separate scoping line 17 consultation with that California Native American tribe. The line 18 development proponent and its consultants may participate in a line 19 scoping consultation process conducted pursuant to this subdivision line 20 if all of the following conditions are met: line 21 (i)  The development proponent and its consultants agree to line 22 respect the principles set forth in this subdivision. line 23 (ii)  The development proponent and its consultants engage in line 24 the scoping consultation in good faith. line 25 (iii)  The California Native American tribe participating in the line 26 scoping consultation approves the participation of the development line 27 proponent and its consultants. The California Native American line 28 tribe may rescind its approval at any time during the scoping line 29 consultation, either for the duration of the scoping consultation or line 30 with respect to any particular meeting or discussion held as part line 31 of the scoping consultation. line 32 (D)  The participants to a scoping consultation pursuant to this line 33 subdivision shall comply with all of the following confidentiality line 34 requirements: line 35 (i)  Subdivision (r) of Section 6254. line 36 (ii)  Section 6254.10. line 37 (iii)  Subdivision (c) of Section 21082.3 of the Public Resources line 38 Code. line 39 (iv)  Subdivision (d) of Section 15120 of Title 14 of the line 40 California Code of Regulations. 97 — 24 — SB 6 127 line 1 (v)  Any additional confidentiality standards adopted by the line 2 California Native American tribe participating in the scoping line 3 consultation. line 4 (E)  The California Environmental Quality Act (Division 13 line 5 (commencing with Section 21000) of the Public Resources Code) line 6 shall not apply to a scoping consultation conducted pursuant to line 7 this subdivision. line 8 (2)  (A)  If, after concluding the scoping consultation, the parties line 9 find that no potential tribal cultural resource would be affected by line 10 the proposed development, the development proponent may submit line 11 an application for the proposed development that is subject to the line 12 streamlined, ministerial approval process described in subdivision line 13 (c). line 14 (B)  If, after concluding the scoping consultation, the parties line 15 find that a potential tribal cultural resource could be affected by line 16 the proposed development and an enforceable agreement is line 17 documented between the California Native American tribe and the line 18 local government on methods, measures, and conditions for tribal line 19 cultural resource treatment, the development proponent may submit line 20 the application for a development subject to the streamlined, line 21 ministerial approval process described in subdivision (c). The local line 22 government shall ensure that the enforceable agreement is included line 23 in the requirements and conditions for the proposed development. line 24 (C)  If, after concluding the scoping consultation, the parties line 25 find that a potential tribal cultural resource could be affected by line 26 the proposed development and an enforceable agreement is not line 27 documented between the California Native American tribe and the line 28 local government regarding methods, measures, and conditions line 29 for tribal cultural resource treatment, the development shall not line 30 be eligible for the streamlined, ministerial approval process line 31 described in subdivision (c). line 32 (D)  For purposes of this paragraph, a scoping consultation shall line 33 be deemed to be concluded if either of the following occur: line 34 (i)  The parties to the scoping consultation document an line 35 enforceable agreement concerning methods, measures, and line 36 conditions to avoid or address potential impacts to tribal cultural line 37 resources that are or may be present. line 38 (ii)  One or more parties to the scoping consultation, acting in line 39 good faith and after reasonable effort, conclude that a mutual line 40 agreement on methods, measures, and conditions to avoid or 97 SB 6 — 25 — 128 line 1 address impacts to tribal cultural resources that are or may be line 2 present cannot be reached. line 3 (E)  If the development or environmental setting substantially line 4 changes after the completion of the scoping consultation, the local line 5 government shall notify the California Native American tribe of line 6 the changes and engage in a subsequent scoping consultation if line 7 requested by the California Native American tribe. line 8 (3)  A local government may only accept an application for line 9 streamlined, ministerial approval pursuant to this section if one of line 10 the following applies: line 11 (A)  A California Native American tribe that received a formal line 12 notice of the development proponent’s notice of intent to submit line 13 an application pursuant to subclause (I) of clause (iii) of line 14 subparagraph (A) of paragraph (1) did not accept the invitation to line 15 engage in a scoping consultation. line 16 (B)  The California Native American tribe accepted an invitation line 17 to engage in a scoping consultation pursuant to subclause (II) of line 18 clause (iii) of subparagraph (A) of paragraph (1) but substantially line 19 failed to engage in the scoping consultation after repeated line 20 documented attempts by the local government to engage the line 21 California Native American tribe. line 22 (C)  The parties to a scoping consultation pursuant to this line 23 subdivision find that no potential tribal cultural resource will be line 24 affected by the proposed development pursuant to subparagraph line 25 (A) of paragraph (2). line 26 (D)  A scoping consultation between a California Native line 27 American tribe and the local government has occurred in line 28 accordance with this subdivision and resulted in agreement line 29 pursuant to subparagraph (B) of paragraph (2). line 30 (4)  A project shall not be eligible for the streamlined, ministerial line 31 process described in subdivision (c) if any of the following apply: line 32 (A)  There is a tribal cultural resource that is on a national, state, line 33 tribal, or local historic register list located on the site of the project. line 34 (B)  There is a potential tribal cultural resource that could be line 35 affected by the proposed development and the parties to a scoping line 36 consultation conducted pursuant to this subdivision do not line 37 document an enforceable agreement on methods, measures, and line 38 conditions for tribal cultural resource treatment, as described in line 39 subparagraph (C) of paragraph (2). 97 — 26 — SB 6 129 line 1 (C)  The parties to a scoping consultation conducted pursuant line 2 to this subdivision do not agree as to whether a potential tribal line 3 cultural resource will be affected by the proposed development. line 4 (5)  (A)  If, after a scoping consultation conducted pursuant to line 5 this subdivision, a project is not eligible for the streamlined, line 6 ministerial process described in subdivision (c) for any or all of line 7 the following reasons, the local government shall provide written line 8 documentation of that fact, and an explanation of the reason for line 9 which the project is not eligible, to the development proponent line 10 and to any California Native American tribe that is a party to that line 11 scoping consultation: line 12 (i)  There is a tribal cultural resource that is on a national, state, line 13 tribal, or local historic register list located on the site of the project, line 14 as described in subparagraph (A) of paragraph (4). line 15 (ii)  The parties to the scoping consultation have not documented line 16 an enforceable agreement on methods, measures, and conditions line 17 for tribal cultural resource treatment, as described in subparagraph line 18 (C) of paragraph (2) and subparagraph (B) of paragraph (4). line 19 (iii)  The parties to the scoping consultation do not agree as to line 20 whether a potential tribal cultural resource will be affected by the line 21 proposed development, as described in subparagraph (C) of line 22 paragraph (4). line 23 (B)  The written documentation provided to a development line 24 proponent pursuant to this paragraph shall include information on line 25 how the development proponent may seek a conditional use permit line 26 or other discretionary approval of the development from the local line 27 government. line 28 (6)  This section is not intended, and shall not be construed, to line 29 limit consultation and discussion between a local government and line 30 a California Native American tribe pursuant to other applicable line 31 law, confidentiality provisions under other applicable law, the line 32 protection of religious exercise to the fullest extent permitted under line 33 state and federal law, or the ability of a California Native American line 34 tribe to submit information to the local government or participate line 35 in any process of the local government. line 36 (7)  For purposes of this subdivision: line 37 (A)  “Consultation” means the meaningful and timely process line 38 of seeking, discussing, and considering carefully the views of line 39 others, in a manner that is cognizant of all parties’ cultural values line 40 and, where feasible, seeking agreement. Consultation between 97 SB 6 — 27 — 130 line 1 local governments and California Native American tribes shall be line 2 conducted in a way that is mutually respectful of each party’s line 3 sovereignty. Consultation shall also recognize the tribes’ potential line 4 needs for confidentiality with respect to places that have traditional line 5 tribal cultural importance. A lead agency shall consult the tribal line 6 consultation best practices described in the “State of California line 7 Tribal Consultation Guidelines: Supplement to the General Plan line 8 Guidelines” prepared by the Office of Planning and Research. line 9 (B)  “Scoping” means the act of participating in early discussions line 10 or investigations between the local government and California line 11 Native American tribe, and the development proponent if line 12 authorized by the California Native American tribe, regarding the line 13 potential effects a proposed development could have on a potential line 14 tribal cultural resource, as defined in Section 21074 of the Public line 15 Resources Code, or California Native American tribe, as defined line 16 in Section 21073 of the Public Resources Code. line 17 (8)  This subdivision shall not apply to any project that has been line 18 approved under the streamlined, ministerial approval process line 19 provided under this section before the effective date of the act line 20 adding this subdivision. line 21 (c)  (1)  If a local government determines that a development line 22 submitted pursuant to this section is in conflict with any of the line 23 objective planning standards specified in subdivision (a), it shall line 24 provide the development proponent written documentation of line 25 which standard or standards the development conflicts with, and line 26 an explanation for the reason or reasons the development conflicts line 27 with that standard or standards, as follows: line 28 (A)  Within 60 days of submittal of the development to the local line 29 government pursuant to this section if the development contains line 30 150 or fewer housing units. line 31 (B)  Within 90 days of submittal of the development to the local line 32 government pursuant to this section if the development contains line 33 more than 150 housing units. line 34 (2)  If the local government fails to provide the required line 35 documentation pursuant to paragraph (1), the development shall line 36 be deemed to satisfy the objective planning standards specified in line 37 subdivision (a). line 38 (3)  For purposes of this section, a development is consistent line 39 with the objective planning standards specified in subdivision (a) line 40 if there is substantial evidence that would allow a reasonable person 97 — 28 — SB 6 131 line 1 to conclude that the development is consistent with the objective line 2 planning standards. line 3 (d)  (1)  Any design review or public oversight of the line 4 development may be conducted by the local government’s planning line 5 commission or any equivalent board or commission responsible line 6 for review and approval of development projects, or the city council line 7 or board of supervisors, as appropriate. That design review or line 8 public oversight shall be objective and be strictly focused on line 9 assessing compliance with criteria required for streamlined projects, line 10 as well as any reasonable objective design standards published line 11 and adopted by ordinance or resolution by a local jurisdiction line 12 before submission of a development application, and shall be line 13 broadly applicable to development within the jurisdiction. That line 14 design review or public oversight shall be completed as follows line 15 and shall not in any way inhibit, chill, or preclude the ministerial line 16 approval provided by this section or its effect, as applicable: line 17 (A)  Within 90 days of submittal of the development to the local line 18 government pursuant to this section if the development contains line 19 150 or fewer housing units. line 20 (B)  Within 180 days of submittal of the development to the line 21 local government pursuant to this section if the development line 22 contains more than 150 housing units. line 23 (2)  If the development is consistent with the requirements of line 24 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and line 25 is consistent with all objective subdivision standards in the local line 26 subdivision ordinance, an application for a subdivision pursuant line 27 to the Subdivision Map Act (Division 2 (commencing with Section line 28 66410)) shall be exempt from the requirements of the California line 29 Environmental Quality Act (Division 13 (commencing with Section line 30 21000) of the Public Resources Code) and shall be subject to the line 31 public oversight timelines set forth in paragraph (1). line 32 (e)  (1)  Notwithstanding any other law, a local government, line 33 whether or not it has adopted an ordinance governing automobile line 34 parking requirements in multifamily developments, shall not line 35 impose automobile parking standards for a streamlined line 36 development that was approved pursuant to this section in any of line 37 the following instances: line 38 (A)  The development is located within one-half mile of public line 39 transit. 97 SB 6 — 29 — 132 line 1 (B)  The development is located within an architecturally and line 2 historically significant historic district. line 3 (C)  When on-street parking permits are required but not offered line 4 to the occupants of the development. line 5 (D)  When there is a car share vehicle located within one block line 6 of the development. line 7 (2)  If the development does not fall within any of the categories line 8 described in paragraph (1), the local government shall not impose line 9 automobile parking requirements for streamlined developments line 10 approved pursuant to this section that exceed one parking space line 11 per unit. line 12 (f)  (1)  If a local government approves a development pursuant line 13 to this section, then, notwithstanding any other law, that approval line 14 shall not expire if the project includes public investment in housing line 15 affordability, beyond tax credits, where 50 percent of the units are line 16 affordable to households making at or below 80 percent of the area line 17 median income. line 18 (2)  (A)  If a local government approves a development pursuant line 19 to this section and the project does not include 50 percent of the line 20 units affordable to households making at or below 80 percent of line 21 the area median income, that approval shall remain valid for three line 22 years from the date of the final action establishing that approval, line 23 or if litigation is filed challenging that approval, from the date of line 24 the final judgment upholding that approval. Approval shall remain line 25 valid for a project provided that vertical construction of the line 26 development has begun and is in progress. For purposes of this line 27 subdivision, “in progress” means one of the following: line 28 (i)  The construction has begun and has not ceased for more than line 29 180 days. line 30 (ii)  If the development requires multiple building permits, an line 31 initial phase has been completed, and the project proponent has line 32 applied for and is diligently pursuing a building permit for a line 33 subsequent phase, provided that once it has been issued, the line 34 building permit for the subsequent phase does not lapse. line 35 (B)  Notwithstanding subparagraph (A), a local government may line 36 grant a project a one-time, one-year extension if the project line 37 proponent can provide documentation that there has been line 38 significant progress toward getting the development construction line 39 ready, such as filing a building permit application. 97 — 30 — SB 6 133 line 1 (3)  If a local government approves a development pursuant to line 2 this section, that approval shall remain valid for three years from line 3 the date of the final action establishing that approval and shall line 4 remain valid thereafter for a project so long as vertical construction line 5 of the development has begun and is in progress. Additionally, the line 6 development proponent may request, and the local government line 7 shall have discretion to grant, an additional one-year extension to line 8 the original three-year period. The local government’s action and line 9 discretion in determining whether to grant the foregoing extension line 10 shall be limited to considerations and processes set forth in this line 11 section. line 12 (g)  (1)  (A)  A development proponent may request a line 13 modification to a development that has been approved under the line 14 streamlined, ministerial approval process provided in subdivision line 15 (b) if that request is submitted to the local government before the line 16 issuance of the final building permit required for construction of line 17 the development. line 18 (B)  Except as provided in paragraph (3), the local government line 19 shall approve a modification if it determines that the modification line 20 is consistent with the objective planning standards specified in line 21 subdivision (a) that were in effect when the original development line 22 application was first submitted. line 23 (C)  The local government shall evaluate any modifications line 24 requested pursuant to this subdivision for consistency with the line 25 objective planning standards using the same assumptions and line 26 analytical methodology that the local government originally used line 27 to assess consistency for the development that was approved for line 28 streamlined, ministerial approval pursuant to subdivision (b). line 29 (D)  A guideline that was adopted or amended by the department line 30 pursuant to subdivision (j) after a development was approved line 31 through the streamlined ministerial approval process described in line 32 subdivision (b) shall not be used as a basis to deny proposed line 33 modifications. line 34 (2)  Upon receipt of the developmental proponent’s application line 35 requesting a modification, the local government shall determine line 36 if the requested modification is consistent with the objective line 37 planning standard and either approve or deny the modification line 38 request within 60 days after submission of the modification, or line 39 within 90 days if design review is required. 97 SB 6 — 31 — 134 line 1 (3)  Notwithstanding paragraph (1), the local government may line 2 apply objective planning standards adopted after the development line 3 application was first submitted to the requested modification in line 4 any of the following instances: line 5 (A)  The development is revised such that the total number of line 6 residential units or total square footage of construction changes line 7 by 15 percent or more. line 8 (B)  The development is revised such that the total number of line 9 residential units or total square footage of construction changes line 10 by 5 percent or more and it is necessary to subject the development line 11 to an objective standard beyond those in effect when the line 12 development application was submitted in order to mitigate or line 13 avoid a specific, adverse impact, as that term is defined in line 14 subparagraph (A) of paragraph (1) of subdivision (j) of Section line 15 65589.5, upon the public health or safety and there is no feasible line 16 alternative method to satisfactorily mitigate or avoid the adverse line 17 impact. line 18 (C)  Objective building standards contained in the California line 19 Building Standards Code (Title 24 of the California Code of line 20 Regulations), including, but not limited to, building, plumbing, line 21 electrical, fire, and grading codes, may be applied to all line 22 modifications. line 23 (4)  The local government’s review of a modification request line 24 pursuant to this subdivision shall be strictly limited to determining line 25 whether the modification, including any modification to previously line 26 approved density bonus concessions or waivers, modify the line 27 development’s consistency with the objective planning standards line 28 and shall not reconsider prior determinations that are not affected line 29 by the modification. line 30 (h)  (1)  A local government shall not adopt or impose any line 31 requirement, including, but not limited to, increased fees or line 32 inclusionary housing requirements, that applies to a project solely line 33 or partially on the basis that the project is eligible to receive line 34 ministerial or streamlined approval pursuant to this section. line 35 (2)  A local government shall issue a subsequent permit required line 36 for a development approved under this section if the application line 37 substantially complies with the development as it was approved line 38 pursuant to subdivision (c). Upon receipt of an application for a line 39 subsequent permit, the local government shall process the permit line 40 without unreasonable delay and shall not impose any procedure 97 — 32 — SB 6 135 line 1 or requirement that is not imposed on projects that are not approved line 2 pursuant to this section. Issuance of subsequent permits shall line 3 implement the approved development, and review of the permit line 4 application shall not inhibit, chill, or preclude the development. line 5 For purposes of this paragraph, a “subsequent permit” means a line 6 permit required subsequent to receiving approval under subdivision line 7 (c), and includes, but is not limited to, demolition, grading, line 8 encroachment, and building permits and final maps, if necessary. line 9 (3)  (A)  If a public improvement is necessary to implement a line 10 development that is subject to the streamlined, ministerial approval line 11 pursuant to this section, including, but not limited to, a bicycle line 12 lane, sidewalk or walkway, public transit stop, driveway, street line 13 paving or overlay, a curb or gutter, a modified intersection, a street line 14 sign or street light, landscape or hardscape, an above-ground or line 15 underground utility connection, a water line, fire hydrant, storm line 16 or sanitary sewer connection, retaining wall, and any related work, line 17 and that public improvement is located on land owned by the local line 18 government, to the extent that the public improvement requires line 19 approval from the local government, the local government shall line 20 not exercise its discretion over any approval relating to the public line 21 improvement in a manner that would inhibit, chill, or preclude the line 22 development. line 23 (B)  If an application for a public improvement described in line 24 subparagraph (A) is submitted to a local government, the local line 25 government shall do all of the following: line 26 (i)  Consider the application based upon any objective standards line 27 specified in any state or local laws that were in effect when the line 28 original development application was submitted. line 29 (ii)  Conduct its review and approval in the same manner as it line 30 would evaluate the public improvement if required by a project line 31 that is not eligible to receive ministerial or streamlined approval line 32 pursuant to this section. line 33 (C)  If an application for a public improvement described in line 34 subparagraph (A) is submitted to a local government, the local line 35 government shall not do either of the following: line 36 (i)  Adopt or impose any requirement that applies to a project line 37 solely or partially on the basis that the project is eligible to receive line 38 ministerial or streamlined approval pursuant to this section. line 39 (ii)  Unreasonably delay in its consideration, review, or approval line 40 of the application. 97 SB 6 — 33 — 136 line 1 (i)  (1)  This section shall not affect a development proponent’s line 2 ability to use any alternative streamlined by right permit processing line 3 adopted by a local government, including the provisions of line 4 subdivision (i) of Section 65583.2. line 5 (2)  This section shall not prevent a development from also line 6 qualifying as a housing development project entitled to the line 7 protections of Section 65589.5. This paragraph does not constitute line 8 a change in, but is declaratory of, existing law. line 9 (j)  The California Environmental Quality Act (Division 13 line 10 (commencing with Section 21000) of the Public Resources Code) line 11 does not apply to actions taken by a state agency, local government, line 12 or the San Francisco Bay Area Rapid Transit District to: line 13 (1)  Lease, convey, or encumber land owned by the local line 14 government or the San Francisco Bay Area Rapid Transit District line 15 or to facilitate the lease, conveyance, or encumbrance of land line 16 owned by the local government, or for the lease of land owned by line 17 the San Francisco Bay Area Rapid Transit District in association line 18 with an eligible TOD project, as defined pursuant to Section line 19 29010.1 of the Public Utilities Code, nor to any decisions line 20 associated with that lease, or to provide financial assistance to a line 21 development that receives streamlined approval pursuant to this line 22 section that is to be used for housing for persons and families of line 23 very low, low, or moderate income, as defined in Section 50093 line 24 of the Health and Safety Code. line 25 (2)  Approve improvements located on land owned by the local line 26 government or the San Francisco Bay Area Rapid Transit District line 27 that are necessary to implement a development that receives line 28 streamlined approval pursuant to this section that is to be used for line 29 housing for persons and families of very low, low, or moderate line 30 income, as defined in Section 50093 of the Health and Safety Code. line 31 (k)  For purposes of this section, the following terms have the line 32 following meanings: line 33 (1)  “Affordable housing cost” has the same meaning as set forth line 34 in Section 50052.5 of the Health and Safety Code. line 35 (2)  “Affordable rent” has the same meaning as set forth in line 36 Section 50053 of the Health and Safety Code. line 37 (3)  “Department” means the Department of Housing and line 38 Community Development. line 39 (4)  “Development proponent” means the developer who submits line 40 an application for streamlined approval pursuant to this section. 97 — 34 — SB 6 137 line 1 (5)  “Completed entitlements” means a housing development line 2 that has received all the required land use approvals or entitlements line 3 necessary for the issuance of a building permit. line 4 (6)  “Locality” or “local government” means a city, including a line 5 charter city, a county, including a charter county, or a city and line 6 county, including a charter city and county. line 7 (7)  “Moderate income housing units” means housing units with line 8 an affordable housing cost or affordable rent for persons and line 9 families of moderate income, as that term is defined in Section line 10 50093 of the Health and Safety Code. line 11 (8)  “Production report” means the information reported pursuant line 12 to subparagraph (H) of paragraph (2) of subdivision (a) of Section line 13 65400. line 14 (9)  “State agency” includes every state office, officer, line 15 department, division, bureau, board, and commission, but does not line 16 include the California State University or the University of line 17 California. line 18 (10)  “Subsidized” means units that are price or rent restricted line 19 such that the units are affordable to households meeting the line 20 definitions of very low and lower income, as defined in Sections line 21 50079.5 and 50105 of the Health and Safety Code. line 22 (11)  “Reporting period” means either of the following: line 23 (A)  The first half of the regional housing needs assessment line 24 cycle. line 25 (B)  The last half of the regional housing needs assessment cycle. line 26 (12)  “Urban uses” means any current or former residential, line 27 commercial, public institutional, transit or transportation passenger line 28 facility, or retail use, or any combination of those uses. line 29 (l)  The department may review, adopt, amend, and repeal line 30 guidelines to implement uniform standards or criteria that line 31 supplement or clarify the terms, references, or standards set forth line 32 in this section. Any guidelines or terms adopted pursuant to this line 33 subdivision shall not be subject to Chapter 3.5 (commencing with line 34 Section 11340) of Part 1 of Division 3 of Title 2 of the Government line 35 Code. line 36 (m)  The determination of whether an application for a line 37 development is subject to the streamlined ministerial approval line 38 process provided by subdivision (c) is not a “project” as defined line 39 in Section 21065 of the Public Resources Code. 97 SB 6 — 35 — 138 line 1 (n)  It is the policy of the state that this section be interpreted line 2 and implemented in a manner to afford the fullest possible weight line 3 to the interest of, and the approval and provision of, increased line 4 housing supply. line 5 (o)  This section shall remain in effect only until January 1, 2026, line 6 and as of that date is repealed. line 7 SEC. 3. No reimbursement is required by this act pursuant to line 8 Section 6 of Article XIIIB of the California Constitution because line 9 a local agency or school district has the authority to levy service line 10 charges, fees, or assessments sufficient to pay for the program or line 11 level of service mandated by this act or because costs that may be line 12 incurred by a local agency or school district will be incurred line 13 because this act creates a new crime or infraction, eliminates a line 14 crime or infraction, or changes the penalty for a crime or infraction, line 15 within the meaning of Section 17556 of the Government Code, or line 16 changes the definition of a crime within the meaning of Section 6 line 17 of Article XIIIB of the California Constitution. O 97 — 36 — SB 6 139 AMENDED IN SENATE APRIL 27, 2021 AMENDED IN SENATE APRIL 5, 2021 SENATE BILL No. 9 Introduced by Senators Atkins, Caballero, Rubio, and Wiener (Coauthors: Senators Gonzalez Cortese, Gonzalez, and McGuire) (Coauthor: Assembly Member Robert Rivas) (Coauthors: Assembly Members Robert Rivas and Wicks) December 7, 2020 An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use. legislative counsel’s digest SB 9, as amended, Atkins. Housing development: approvals. The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on 97 140 the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a city or county local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided. This bill, among other things, would require a city or county local agency to ministerially approve a parcel map or tentative and final map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a city or county local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from 97 — 2 — SB 9 141 being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill, until January 1, 2027, would prohibit a local agency from imposing an owner occupancy requirement on applicants unless specified conditions are met. The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA. The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act. This bill would exempt a local government agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions. By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ 97 SB 9 — 3 — 142 The people of the State of California do enact as follows: line 1 SECTION 1. Section 65852.21 is added to the Government line 2 Code, to read: line 3 65852.21. (a)  A proposed housing development containing line 4 no more than two residential units within a single-family residential line 5 zone shall be considered ministerially, without discretionary review line 6 or a hearing, if the proposed housing development meets all of the line 7 following requirements: line 8 (1)  The parcel subject to the proposed housing development is line 9 located within a city city, the boundaries of which include some line 10 portion of either an urbanized area or urban cluster, as designated line 11 by the United States Census Bureau, or, for unincorporated areas, line 12 a legal parcel wholly within the boundaries of an urbanized area line 13 or urban cluster, as designated by the United States Census Bureau. line 14 (2)  The parcel satisfies the requirements specified in line 15 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision line 16 (a) of Section 65913.4. line 17 (3)  Notwithstanding any provision of this section or any local line 18 law, the proposed housing development would not require line 19 demolition or alteration of any of the following types of housing: line 20 (A)  Housing that is subject to a recorded covenant, ordinance, line 21 or law that restricts rents to levels affordable to persons and line 22 families of moderate, low, or very low income. line 23 (B)  Housing that is subject to any form of rent or price control line 24 through a public entity’s valid exercise of its police power. line 25 (C)  Housing that has been occupied by a tenant in the last three line 26 years. line 27 (4)  The parcel subject to the proposed housing development is line 28 not a parcel on which an owner of residential real property has line 29 exercised the owner’s rights under Chapter 12.75 (commencing line 30 with Section 7060) of Division 7 of Title 1 to withdraw line 31 accommodations from rent or lease within 15 years before the date line 32 that the development proponent submits an application. line 33 (5)  The proposed housing development does not allow the line 34 demolition of more than 25 percent of the existing exterior line 35 structural walls, unless the housing development meets at least line 36 one of the following conditions: line 37 (A)  If a local ordinance so allows. 97 — 4 — SB 9 143 line 1 (B)  The site has not been occupied by a tenant in the last three line 2 years. line 3 (6)  The development is not located within a historic district or line 4 property included on the State Historic Resources Inventory, as line 5 defined in Section 5020.1 of the Public Resources Code, or within line 6 a site that is designated or listed as a city or county landmark or line 7 historic property or district pursuant to a city or county ordinance. line 8 (b)  (1)  Notwithstanding any local law and except as provided line 9 in paragraph (2), a city or county local agency may impose line 10 objective zoning standards, objective subdivision standards, and line 11 objective design review standards that do not conflict with this line 12 section. line 13 (2)  (A)  The city or county local agency shall not impose line 14 objective zoning standards, objective subdivision standards, and line 15 objective design standards that would have the effect of physically line 16 precluding the construction of up to two units or that would line 17 physically preclude either of the two units from being at least 800 line 18 square feet in floor area. line 19 (B)  (i)  Notwithstanding subparagraph (A), no setback shall be line 20 required for an existing structure or a structure constructed in the line 21 same location and to the same dimensions as an existing structure. line 22 (ii)  Notwithstanding subparagraph (A), in all other circumstances line 23 not described in clause (i), a local government agency may require line 24 a setback of up to four feet from the side and rear lot lines. line 25 (c)  In addition to any conditions established in accordance with line 26 subdivision (b), a local agency may require any of the following line 27 conditions when considering an application for two residential line 28 units as provided for in this section: line 29 (1)  Off-street parking of up to one space per unit, except that a line 30 local agency shall not impose parking requirements in either of line 31 the following instances: line 32 (A)  The parcel is located within one-half mile walking distance line 33 of either a high-quality transit corridor, as defined in subdivision line 34 (b) of Section 21155 of the Public Resources Code, or a major line 35 transit stop, as defined in Section 21064.3 of the Public Resources line 36 Code. line 37 (B)  There is a car share vehicle located within one block of the line 38 parcel. line 39 (2)  For residential units connected to an onsite wastewater line 40 treatment system, a percolation test completed within the last five 97 SB 9 — 5 — 144 line 1 5 years, or, if the percolation test has been recertified, within the line 2 last 10 years. line 3 (d)  A local agency shall require that a rental of any unit created line 4 pursuant to this section be for a term longer than 30 days. line 5 (e)  Notwithstanding Section 65852.2, 65852.2 or 65852.22, a line 6 local agency shall not be required to permit an accessory dwelling line 7 unit or a junior accessory dwelling unit on parcels that use both line 8 the authority contained within this section and the authority line 9 contained in Section 66411.7. line 10 (f)  Notwithstanding subparagraph (B) of paragraph (2) of line 11 subdivision (b), an application shall not be rejected solely because line 12 it proposes adjacent or connected structures provided that the line 13 structures meet building code safety standards and are sufficient line 14 to allow separate conveyance. line 15 (g)  Local agencies shall include units constructed pursuant to line 16 this section in the annual housing element report as required by line 17 subparagraph (I) of paragraph (2) of subdivision (a) of Section line 18 65400. line 19 (h)  For purposes of this section, all of the following apply: line 20 (1)  A housing development contains two residential units if the line 21 development proposes no more than two new units or if it proposes line 22 to add one new unit to one existing unit. line 23 (2)  The terms “objective zoning standards,” “objective line 24 subdivision standards,” and “objective design review standards” line 25 mean standards that involve no personal or subjective judgment line 26 by a public official and are uniformly verifiable by reference to line 27 an external and uniform benchmark or criterion available and line 28 knowable by both the development applicant or proponent and the line 29 public official prior to submittal. These standards may be embodied line 30 in alternative objective land use specifications adopted by a city line 31 or county, local agency, and may include, but are not limited to, line 32 housing overlay zones, specific plans, inclusionary zoning line 33 ordinances, and density bonus ordinances. line 34 (3)  “Local agency” means a city, county, or city and county, line 35 whether general law or chartered. line 36 (i)  A local agency may adopt an ordinance to implement the line 37 provisions of this section. An ordinance adopted to implement this line 38 section shall not be considered a project under Division 13 line 39 (commencing with Section 21000) of the Public Resources Code. 97 — 6 — SB 9 145 line 1 (j)  Nothing in this section shall be construed to supersede or in line 2 any way alter or lessen the effect or application of the California line 3 Coastal Act of 1976 (Division 20 (commencing with Section line 4 30000) of the Public Resources Code), except that the local line 5 government agency shall not be required to hold public hearings line 6 for coastal development permit applications for a housing line 7 development pursuant to this section. line 8 SEC. 2. Section 66411.7 is added to the Government Code, to line 9 read: line 10 66411.7. (a)  Notwithstanding any other provision of this line 11 division and any local law, a city or county local agency shall line 12 ministerially approve, as set forth in this section, a parcel map or line 13 tentative and final map for an urban lot split that only if the local line 14 agency determines that the parcel map for the urban lot split meets line 15 all the following requirements: line 16 (1)  The parcel map or tentative and final map subdivides an line 17 existing parcel to create no more than two new parcels of line 18 approximately equal lot area provided that one parcel shall not be line 19 smaller than 40 percent of the lot area of the original parcel line 20 proposed for subdivision. line 21 (2)  (A)  Except as provided in subparagraph (B), both newly line 22 created parcels are no smaller than 1,200 square feet. line 23 (B)  A local agency may by ordinance adopt a smaller minimum line 24 lot size subject to ministerial approval under this subdivision. line 25 (3)  The parcel being subdivided meets all the following line 26 requirements: line 27 (A)  The parcel is located within a single-family residential zone. line 28 (B)  The parcel subject to the proposed urban lot split is located line 29 within a city city, the boundaries of which include some portion line 30 of either an urbanized area or urban cluster, as designated by the line 31 United States Census Bureau, or, for unincorporated areas, a legal line 32 parcel wholly within the boundaries of an urbanized area or urban line 33 cluster, as designated by the United States Census Bureau. line 34 (C)  The parcel satisfies the requirements specified in line 35 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision line 36 (a) of Section 65913.4. line 37 (D)  The proposed urban lot split would not require demolition line 38 or alteration of any of the following types of housing: 97 SB 9 — 7 — 146 line 1 (i)  Housing that is subject to a recorded covenant, ordinance, line 2 or law that restricts rents to levels affordable to persons and line 3 families of moderate, low, or very low income. line 4 (ii)  Housing that is subject to any form of rent or price control line 5 through a public entity’s valid exercise of its police power. line 6 (iii)  A parcel or parcels on which an owner of residential real line 7 property has exercised the owner’s rights under Chapter 12.75 line 8 (commencing with Section 7060) of Division 7 of Title 1 to line 9 withdraw accommodations from rent or lease within 15 years line 10 before the date that the development proponent submits an line 11 application. line 12 (iv)  Housing that has been occupied by a tenant in the last three line 13 years. line 14 (E)  The parcel is not located within a historic district or property line 15 included on the State Historic Resources Inventory, as defined in line 16 Section 5020.1 of the Public Resources Code, or within a site that line 17 is designated or listed as a city or county landmark or historic line 18 property or district pursuant to a city or county ordinance. line 19 (F)  The parcel has not been established through prior exercise line 20 of an urban lot split as provided for in this section. line 21 (G)  Neither the owner of the parcel being subdivided nor any line 22 person acting in concert with the owner has previously subdivided line 23 an adjacent parcel using an urban lot split as provided for in this line 24 section. line 25 (b)  An application for a parcel map for an urban lot split shall line 26 be approved in accordance with the following requirements: line 27 (1)  A local agency shall approve or deny an application for a line 28 parcel map for an urban lot split ministerially without discretionary line 29 review. line 30 (2)  A local agency shall approve an urban lot split only if it line 31 conforms to all applicable objective requirements of the line 32 Subdivision Map Act (Division 2 (commencing with Section line 33 66410)), except as otherwise expressly provided in this section. line 34 (3)  Notwithstanding Section 66411.1, a local agency shall not line 35 impose regulations that require dedications of rights-of-way or the line 36 construction of offsite improvements for the parcels being created line 37 as a condition of issuing a parcel map or tentative and final map line 38 for an urban lot split. split pursuant to this section. line 39 (c)  (1)  Except as provided in paragraph (2), notwithstanding line 40 any local law, a city or county local agency may impose objective 97 — 8 — SB 9 147 line 1 zoning standards, objective subdivision standards, and objective line 2 design review standards applicable to a parcel created by an urban line 3 lot split that do not conflict with this section. line 4 (2)  A local agency shall not impose objective zoning standards, line 5 objective subdivision standards, and objective design review line 6 standards that would have the effect of physically precluding the line 7 construction of two units on either of the resulting parcels or that line 8 would result in a unit size of less than 800 square feet. line 9 (3)  (A)  Notwithstanding paragraph (2), no setback shall be line 10 required for an existing structure or a structure constructed in the line 11 same location and to the same dimensions as an existing structure. line 12 (B)  Notwithstanding paragraph (2), in all other circumstances line 13 not described in subparagraph (A), a local government agency line 14 may require a setback of up to four feet from the side and rear lot line 15 lines. line 16 (d)  In addition to any conditions established in accordance with line 17 subdivision (c), this section, a local agency may require any of the line 18 following conditions when considering an application for a parcel line 19 map for an urban lot split: line 20 (1)  Easements required for the provision of public services and line 21 facilities. line 22 (2)  A requirement that the parcels have access to, provide access line 23 to, or adjoin the public right-of-way. line 24 (3)  Off-street parking of up to one space per unit, except that a line 25 local agency shall not impose parking requirements in either of line 26 the following instances: line 27 (A)  The parcel is located within one-half mile walking distance line 28 of either a high-quality transit corridor as defined in subdivision line 29 (b) of Section 21155 of the Public Resources Code, or a major line 30 transit stop as defined in Section 21064.3 of the Public Resources line 31 Code. line 32 (B)  There is a car share vehicle located within one block of the line 33 parcel. line 34 (e)  A local agency shall require that the uses allowed on a lot line 35 created by this section be limited to residential uses. line 36 (f)  (1)  A local agency may impose an owner occupancy line 37 requirement on an applicant for an urban lot split that meets one line 38 of the following conditions: 97 SB 9 — 9 — 148 line 1 (A)  The applicant intends to occupy one of the housing units line 2 as their principal residence for a minimum of one year from the line 3 date of the approval of the urban lot split. line 4 (B)  The applicant is a “qualified nonprofit corporation.” A line 5 “qualified nonprofit corporation” means a nonprofit corporation line 6 organized pursuant to Section 501(c)(3) of the Internal Revenue line 7 Code that has received a welfare exemption under either of the line 8 following: line 9 (i)  Section 214.15 of the Revenue and Taxation Code for line 10 properties intended to be sold to low-income families who line 11 participate in a special no-interest loan program. line 12 (ii)  Section 214.18 of the Revenue and Taxation Code for line 13 properties owned by a community land trust. line 14 (2)  A local agency shall not impose additional owner occupancy line 15 standards, other than provided for in this subdivision, on an urban line 16 lot split pursuant to this section. line 17 (3)  This subdivision shall become inoperative on January 1, line 18 2027. line 19 (g)  A local agency shall require that a rental of any unit created line 20 pursuant to this section be for a term longer than 30 days. line 21 (h)  A local agency shall not require, as a condition for ministerial line 22 approval of a permit parcel map application for the creation of an line 23 urban lot split, the correction of nonconforming zoning conditions. line 24 (i)  (1)  Notwithstanding any provision of Section 65852.2, line 25 Section 65852.21, Section 65852.22, Section 65915, or this section, line 26 a local agency shall not be required to permit more than two units line 27 on a parcel created through the exercise of the authority contained line 28 within this section. line 29 (2)  For the purposes of this section, “unit” means any dwelling line 30 unit, including, but not limited to, a unit or units created pursuant line 31 to Section 65852.21, a primary dwelling, an accessory dwelling line 32 unit as defined in Section 65852.2, or a junior accessory dwelling line 33 unit as defined in Section 65852.22. line 34 (j)  Notwithstanding paragraph (3) of subdivision (c), an line 35 application shall not be rejected solely because it proposes adjacent line 36 or connected structures provided that the structures meet building line 37 code safety standards and are sufficient to allow separate line 38 conveyance. line 39 (k)  Local agencies shall include the number of applications for line 40 parcel maps for urban lot splits pursuant to this section in the 97 — 10 — SB 9 149 line 1 annual housing element report as required by subparagraph (I) of line 2 paragraph (2) of subdivision (a) of Section 65400. line 3 (l)  For purposes of this section, both of the terms “objective line 4 following shall apply: line 5 (1)  “Objective zoning standards,” “objective subdivision line 6 standards,” and “objective design review standards” mean standards line 7 that involve no personal or subjective judgment by a public official line 8 and are uniformly verifiable by reference to an external and line 9 uniform benchmark or criterion available and knowable by both line 10 the development applicant or proponent and the public official line 11 prior to submittal. These standards may be embodied in alternative line 12 objective land use specifications adopted by a city or county, local line 13 agency, and may include, but are not limited to, housing overlay line 14 zones, specific plans, inclusionary zoning ordinances, and density line 15 bonus ordinances. line 16 (2)  “Local agency” means a city, county, or city and county, line 17 whether general law or chartered. line 18 (m)  A local agency may adopt an ordinance to implement the line 19 provisions of this section. An ordinance adopted to implement this line 20 section shall not be considered a project under Division 13 line 21 (commencing with Section 21000) of the Public Resources Code. line 22 (n)  Nothing in this section shall be construed to supersede or in line 23 any way alter or lessen the effect or application of the California line 24 Coastal Act of 1976 (Division 20 (commencing with Section line 25 30000) of the Public Resources Code), except that the local line 26 government agency shall not be required to hold public hearings line 27 for coastal development permit applications for urban lot splits line 28 pursuant to this section. line 29 SEC. 3. Section 66452.6 of the Government Code is amended line 30 to read: line 31 66452.6. (a)  (1)  An approved or conditionally approved line 32 tentative map shall expire 24 months after its approval or line 33 conditional approval, or after any additional period of time as may line 34 be prescribed by local ordinance, not to exceed an additional 24 line 35 months. However, if the subdivider is required to expend two line 36 hundred thirty-six thousand seven hundred ninety dollars line 37 ($236,790) or more to construct, improve, or finance the line 38 construction or improvement of public improvements outside the line 39 property boundaries of the tentative map, excluding improvements line 40 of public rights-of-way that abut the boundary of the property to 97 SB 9 — 11 — 150 line 1 be subdivided and that are reasonably related to the development line 2 of that property, each filing of a final map authorized by Section line 3 66456.1 shall extend the expiration of the approved or conditionally line 4 approved tentative map by 48 months from the date of its line 5 expiration, as provided in this section, or the date of the previously line 6 filed final map, whichever is later. The extensions shall not extend line 7 the tentative map more than 10 years from its approval or line 8 conditional approval. However, a tentative map on property subject line 9 to a development agreement authorized by Article 2.5 line 10 (commencing with Section 65864) of Chapter 4 of Division 1 may line 11 be extended for the period of time provided for in the agreement, line 12 but not beyond the duration of the agreement. The number of line 13 phased final maps that may be filed shall be determined by the line 14 advisory agency at the time of the approval or conditional approval line 15 of the tentative map. line 16 (2)  Commencing January 1, 2012, and each calendar year line 17 thereafter, the amount of two hundred thirty-six thousand seven line 18 hundred ninety dollars ($236,790) shall be annually increased by line 19 operation of law according to the adjustment for inflation set forth line 20 in the statewide cost index for class B construction, as determined line 21 by the State Allocation Board at its January meeting. The effective line 22 date of each annual adjustment shall be March 1. The adjusted line 23 amount shall apply to tentative and vesting tentative maps whose line 24 applications were received after the effective date of the line 25 adjustment. line 26 (3)  “Public improvements,” as used in this subdivision, include line 27 traffic controls, streets, roads, highways, freeways, bridges, line 28 overcrossings, street interchanges, flood control or storm drain line 29 facilities, sewer facilities, water facilities, and lighting facilities. line 30 (b)  (1)  The period of time specified in subdivision (a), including line 31 any extension thereof granted pursuant to subdivision (e), shall line 32 not include any period of time during which a development line 33 moratorium, imposed after approval of the tentative map, is in line 34 existence. However, the length of the moratorium shall not exceed line 35 five years. line 36 (2)  The length of time specified in paragraph (1) shall be line 37 extended for up to three years, but in no event beyond January 1, line 38 1992, during the pendency of any lawsuit in which the subdivider line 39 asserts, and the local agency that approved or conditionally 97 — 12 — SB 9 151 line 1 approved the tentative map denies, the existence or application of line 2 a development moratorium to the tentative map. line 3 (3)  Once a development moratorium is terminated, the map line 4 shall be valid for the same period of time as was left to run on the line 5 map at the time that the moratorium was imposed. However, if the line 6 remaining time is less than 120 days, the map shall be valid for line 7 120 days following the termination of the moratorium. line 8 (c)  The period of time specified in subdivision (a), including line 9 any extension thereof granted pursuant to subdivision (e), shall line 10 not include the period of time during which a lawsuit involving line 11 the approval or conditional approval of the tentative map is or was line 12 pending in a court of competent jurisdiction, if the stay of the time line 13 period is approved by the local agency pursuant to this section. line 14 After service of the initial petition or complaint in the lawsuit upon line 15 the local agency, the subdivider may apply to the local agency for line 16 a stay pursuant to the local agency’s adopted procedures. Within line 17 40 days after receiving the application, the local agency shall either line 18 stay the time period for up to five years or deny the requested stay. line 19 The local agency may, by ordinance, establish procedures for line 20 reviewing the requests, including, but not limited to, notice and line 21 hearing requirements, appeal procedures, and other administrative line 22 requirements. line 23 (d)  The expiration of the approved or conditionally approved line 24 tentative map shall terminate all proceedings and no final map or line 25 parcel map of all or any portion of the real property included within line 26 the tentative map shall be filed with the legislative body without line 27 first processing a new tentative map. Once a timely filing is made, line 28 subsequent actions of the local agency, including, but not limited line 29 to, processing, approving, and recording, may lawfully occur after line 30 the date of expiration of the tentative map. Delivery to the county line 31 surveyor or city engineer shall be deemed a timely filing for line 32 purposes of this section. line 33 (e)  Upon application of the subdivider filed before the expiration line 34 of the approved or conditionally approved tentative map, the time line 35 at which the map expires pursuant to subdivision (a) may be line 36 extended by the legislative body or by an advisory agency line 37 authorized to approve or conditionally approve tentative maps for line 38 a period or periods not exceeding a total of six years. The period line 39 of extension specified in this subdivision shall be in addition to line 40 the period of time provided by subdivision (a). Before the 97 SB 9 — 13 — 152 line 1 expiration of an approved or conditionally approved tentative map, line 2 upon an application by the subdivider to extend that map, the map line 3 shall automatically be extended for 60 days or until the application line 4 for the extension is approved, conditionally approved, or denied, line 5 whichever occurs first. If the advisory agency denies a subdivider’s line 6 application for an extension, the subdivider may appeal to the line 7 legislative body within 15 days after the advisory agency has line 8 denied the extension. line 9 (f)  For purposes of this section, a development moratorium line 10 includes a water or sewer moratorium, or a water and sewer line 11 moratorium, as well as other actions of public agencies that regulate line 12 land use, development, or the provision of services to the land, line 13 including the public agency with the authority to approve or line 14 conditionally approve the tentative map, which thereafter prevents, line 15 prohibits, or delays the approval of a final or parcel map. A line 16 development moratorium shall also be deemed to exist for purposes line 17 of this section for any period of time during which a condition line 18 imposed by the city or county could not be satisfied because of line 19 either of the following: line 20 (1)  The condition was one that, by its nature, necessitated action line 21 by the city or county, and the city or county either did not take the line 22 necessary action or by its own action or inaction was prevented or line 23 delayed in taking the necessary action before expiration of the line 24 tentative map. line 25 (2)  The condition necessitates acquisition of real property or line 26 any interest in real property from a public agency, other than the line 27 city or county that approved or conditionally approved the tentative line 28 map, and that other public agency fails or refuses to convey the line 29 property interest necessary to satisfy the condition. However, line 30 nothing in this subdivision shall be construed to require any public line 31 agency to convey any interest in real property owned by it. A line 32 development moratorium specified in this paragraph shall be line 33 deemed to have been imposed either on the date of approval or line 34 conditional approval of the tentative map, if evidence was included line 35 in the public record that the public agency that owns or controls line 36 the real property or any interest therein may refuse to convey that line 37 property or interest, or on the date that the public agency that owns line 38 or controls the real property or any interest therein receives an line 39 offer by the subdivider to purchase that property or interest for fair line 40 market value, whichever is later. A development moratorium 97 — 14 — SB 9 153 line 1 specified in this paragraph shall extend the tentative map up to the line 2 maximum period as set forth in subdivision (b), but not later than line 3 January 1, 1992, so long as the public agency that owns or controls line 4 the real property or any interest therein fails or refuses to convey line 5 the necessary property interest, regardless of the reason for the line 6 failure or refusal, except that the development moratorium shall line 7 be deemed to terminate 60 days after the public agency has line 8 officially made, and communicated to the subdivider, a written line 9 offer or commitment binding on the agency to convey the necessary line 10 property interest for a fair market value, paid in a reasonable time line 11 and manner. line 12 SEC. 4. The Legislature finds and declares that ensuring access line 13 to affordable housing is a matter of statewide concern and not a line 14 municipal affair as that term is used in Section 5 of Article XI of line 15 the California Constitution. Therefore, Sections 1 and 2 of this act line 16 adding Sections 65852.21 and 66411.7 to the Government Code line 17 and Section 3 of this act amending Section 66452.6 of the line 18 Government Code apply to all cities, including charter cities. line 19 SEC. 5. No reimbursement is required by this act pursuant to line 20 Section 6 of Article XIIIB of the California Constitution because line 21 a local agency or school district has the authority to levy service line 22 charges, fees, or assessments sufficient to pay for the program or line 23 level of service mandated by this act, within the meaning of Section line 24 17556 of the Government Code. O 97 SB 9 — 15 — 154 AMENDED IN SENATE APRIL 27, 2021 AMENDED IN SENATE APRIL 13, 2021 AMENDED IN SENATE MARCH 22, 2021 AMENDED IN SENATE FEBRUARY 24, 2021 SENATE BILL No. 10 Introduced by Senator Wiener (Principal coauthors: Senators Atkins and Caballero) (Principal coauthor: Assembly Member Robert Rivas) December 7, 2020 An act to add Section 4752 to the Civil Code, and to add Section 65913.5 to the Government Code, relating to land use. legislative counsel’s digest SB 10, as amended, Wiener. Planning and zoning: housing development: density. The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law requires an attached housing development to be a permitted use, not subject to a conditional use permit, on any parcel zoned for multifamily housing if at least certain percentages of the units are available at affordable housing costs to very low income, lower income, and moderate-income households for at least 30 years and if the project meets specified conditions relating to location and being subject to a discretionary decision other than a conditional use permit. Existing law provides for various incentives intended to facilitate and expedite the construction of affordable housing. 95 155 Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments. Existing law makes void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that effectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets specified standards. This bill would, notwithstanding any local restrictions on adopting zoning ordinances, authorize a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site, as those terms are defined. In this regard, the bill would require the Department of Housing and Community Development, in consultation with the Office of Planning and Research, to determine jobs-rich areas and publish a map of those areas every 5 years, commencing January 1, 2023, based on specified criteria. The bill would specify that an ordinance adopted under these provisions, and any resolution to amend the jurisdiction’s General Plan, ordinance, or other local regulation adopted to be consistent with that ordinance, is not a project for purposes of the California Environmental Quality Act. The bill would impose specified requirements on a zoning ordinance adopted under these provisions, including a requirement that the zoning ordinance clearly demarcate the areas that are subject to the ordinance and that the legislative body make a finding that the ordinance is consistent with the city or county’s obligation to affirmatively further fair housing. The bill would prohibit a legislative body that adopts a zoning ordinance pursuant to these provisions from subsequently reducing the density of any parcel subject to the ordinance. This bill would make void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that effectively prohibits or unreasonably restricts a use or density authorized by an ordinance adopted pursuant to the provisions described above. The bill would provide that it does not apply to provisions that impose 95 — 2 — SB 10 156 reasonable restrictions, as defined, that do not make the implementation of an above-described ordinance infeasible. This bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 4752 is added to the Civil Code, to read: line 2 4752. (a)  Any covenant, restriction, or condition contained in line 3 any deed, contract, security instrument, or other instrument line 4 affecting the transfer or sale of any interest in a planned line 5 development, and any provision of a governing document, is void line 6 and unenforceable if it effectively prohibits or unreasonably line 7 restricts a use or density authorized by an ordinance adopted line 8 pursuant to Section 65913.5 of the Government Code. line 9 (b)  This section does not apply to provisions that impose line 10 reasonable restrictions that do not make the implementation of line 11 Section 65913.5 of the Government Code infeasible. For purposes line 12 of this subdivision, “reasonable restrictions” means restrictions line 13 that do not unreasonably increase the cost to construct, effectively line 14 prohibit the construction of, or extinguish the ability to otherwise line 15 construct residential housing in a manner authorized by an line 16 ordinance adopted pursuant to Section 65913.5 of the Government line 17 Code. line 18 (c)  The Legislature finds and declares that ensuring the adequate line 19 production of affordable housing is a matter of statewide concern line 20 and that this section serves a significant and legitimate public line 21 purpose by eliminating potential restrictions that could inhibit the line 22 production of affordable housing. line 23 SEC. 2. Section 65913.5 is added to the Government Code, to line 24 read: line 25 65913.5. (a)  (1)  Notwithstanding any local restrictions on line 26 adopting zoning ordinances enacted by the jurisdiction, including line 27 restrictions enacted by a local voter initiative, that limit the line 28 legislative body’s ability to adopt zoning ordinances, a local line 29 government may adopt an ordinance to zone a parcel for up to 10 line 30 units of residential density per parcel, at a height specified by the 95 SB 10 — 3 — 157 line 1 local government in the ordinance, if the parcel is located in one line 2 of the following: line 3 (A)  A transit-rich area. line 4 (B)  A jobs-rich area. line 5 (C)  An urban infill site. line 6 (2)  An ordinance adopted in accordance with this subdivision, line 7 and any resolution to amend the jurisdiction’s General Plan, line 8 ordinance, or other local regulation adopted to be consistent with line 9 that zoning ordinance, shall not constitute a “project” for purposes line 10 of Division 13 (commencing with Section 21000) of the Public line 11 Resources Code. line 12 (3)  Paragraph (1) shall not apply to parcels located within a very line 13 high fire hazard severity zone, as determined by the Department line 14 of Forestry and Fire Protection pursuant to Section 51178, or within line 15 a high or very high fire hazard severity zone as indicated on maps line 16 adopted by the Department of Forestry and Fire Protection pursuant line 17 to Section 4202 of the Public Resources Code. This paragraph line 18 does not apply to parcels excluded from the specified hazard zones line 19 by a local agency pursuant to subdivision (b) of Section 51179, or line 20 sites that have adopted fire hazard mitigation measures pursuant line 21 to existing building standards or state fire mitigation measures line 22 applicable to the development. line 23 (b)  A legislative body shall comply with all of the following line 24 when adopting a zoning ordinance pursuant to subdivision (a): line 25 (1)  The zoning ordinance shall include a declaration that the line 26 zoning ordinance is adopted pursuant to this section. line 27 (2)  The zoning ordinance shall clearly demarcate the areas that line 28 are zoned pursuant to this section. line 29 (3)  The legislative body shall make a finding that the increased line 30 density authorized by the ordinance is consistent with the city or line 31 county’s obligation to affirmatively further fair housing pursuant line 32 to Section 8899.50. line 33 (c)  A legislative body that adopts a zoning ordinance pursuant line 34 to this section shall not subsequently reduce the density of any line 35 parcel subject to the ordinance. line 36 (d)  A housing development project, as defined in subdivision line 37 (h) of Section 65589.5, that is proposed on a parcel subject to an line 38 ordinance adopted under this section shall be subject to the line 39 protections established in Section 65589.5. line 40 (e)  For purposes of this section: 95 — 4 — SB 10 158 line 1 (1)  “High-quality bus corridor” means a corridor with fixed line 2 route bus service that meets all of the following criteria: line 3 (A)  It has average service intervals of no more than 15 minutes line 4 during the three peak hours between 6 a.m. to 10 a.m., inclusive, line 5 and the three peak hours between 3 p.m. and 7 p.m., inclusive, on line 6 Monday through Friday. line 7 (B)  It has average service intervals of no more than 20 minutes line 8 during the hours of 6 a.m. to 10 a.m., inclusive, on Monday through line 9 Friday. line 10 (C)  It has average intervals of no more than 30 minutes during line 11 the hours of 8 a.m. to 10 p.m., inclusive, on Saturday and Sunday. line 12 (2)  (A) “Jobs-rich area” means an area identified by the line 13 Department of Housing and Community Development in line 14 consultation with the Office of Planning and Research and other line 15 necessary stakeholders that is high opportunity and either is jobs line 16 rich or would enable shorter commute distances based on whether, line 17 in a regional analysis, the tract meets both of the following: line 18 (i)  The tract is high opportunity, meaning its characteristics are line 19 associated with positive educational and economic outcomes for line 20 households of all income levels residing in the tract. line 21 (ii)  The tract meets either of the following criteria: line 22 (I)  New housing sited in the tract would enable residents to live line 23 near more jobs than is typical for tracts in the region. line 24 (II)  New housing sited in the tract would enable shorter commute line 25 distances for residents, relative to existing commute patterns and line 26 jobs-housing fit. line 27 (B)  The Department of Housing and Community Development line 28 shall, commencing on January 1, 2023, publish and update, every line 29 five years thereafter, a map of the state showing the areas identified line 30 by the department as “jobs-rich areas.” The department shall begin line 31 with the most current version of the Department of Housing and line 32 Community Development and California Tax Credit Allocation line 33 Committee Opportunity Maps and update the methodology as it line 34 determines is appropriate to advance the goals of subparagraph line 35 (A). line 36 (3)  “Transit-rich area” means a parcel within one-half mile of line 37 a major transit stop, as defined in Section 21064.3 of the Public line 38 Resources Code, or a parcel on a high-quality bus corridor. line 39 (4)  “Urban infill site” means a site that satisfies all of the line 40 following: 95 SB 10 — 5 — 159 line 1 (A)  A site that is a legal parcel or parcels located in a city if, line 2 and only if, the city boundaries include some portion of either an line 3 urbanized area or urban cluster, as designated by the United States line 4 Census Bureau, or, for unincorporated areas, a legal parcel or line 5 parcels wholly within the boundaries of an urbanized area or urban line 6 cluster, as designated by the United States Census Bureau. line 7 (B)  A site in which at least 75 percent of the perimeter of the line 8 site adjoins parcels that are developed with urban uses. For the line 9 purposes of this section, parcels that are only separated by a street line 10 or highway shall be considered to be adjoined. line 11 (C)  A site that is zoned for residential use or residential line 12 mixed-use development, or has a general plan designation that line 13 allows residential use or a mix of residential and nonresidential line 14 uses, with at least two-thirds of the square footage of the line 15 development designated for residential use. line 16 (f)  The Legislature finds and declares that ensuring the adequate line 17 production of affordable housing is a matter of statewide concern line 18 and is not a municipal affair as that term is used in Section 5 of line 19 Article XI of the California Constitution. Therefore, this section line 20 applies to all cities, including charter cities. O 95 — 6 — SB 10 160 AMENDED IN SENATE MARCH 8, 2021 SENATE BILL No. 15 Introduced by Senator Portantino December 7, 2020 An act to add Chapter 2.9 (commencing with Section 50495) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. legislative counsel’s digest SB 15, as amended, Portantino. Housing development: incentives: rezoning of idle retail sites. Existing law establishes, among other housing programs, the Workforce Housing Reward Program, which requires the Department of Housing and Community Development to make local assistance grants to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households. This bill, upon appropriation by the Legislature in the annual Budget Act or other statute, would require the department to administer a program to provide incentives in the form of grants allocated as provided to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing. housing, as defined. The bill would define various terms for these purposes. In order to be eligible for a grant, the bill would require a local government, among other things, to apply to the department for an allocation of grant funds and provide documentation that it has met specified requirements, including certain labor-related requirements. The bill would make the allocation of these grants subject to appropriation by the Legislature in the annual Budget Act or other statute. 98 161 The bill would require the department to issue a Notice of Funding Availability for each calendar year in which funds are made available for these purposes. The bill would require that the amount of grant awarded to each eligible local government be equal to 7 times the average amount of annual sales and use tax revenue generated by each idle site identified in the local government’s application over the 7 years immediately preceding the date of the local government’s application, subject to certain modifications, and that the local government receive this amount in one lump-sum following the date of the local government’s application. The bill, upon appropriation by the Legislature in the annual Budget Act or other statute, would authorize the department to review, adopt, amend, and repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, or standards for this program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act. The bill would make its provisions operative on and after January 1, 2023. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Chapter 2.9 (commencing with Section 50495) line 2 is added to Part 2 of Division 31 of the Health and Safety Code, line 3 to read: line 4 line 5 Chapter 2.9. Retail Site Rezoning Incentives line 6 line 7 50495. For purposes of this chapter: line 8 (a)  “Applicant” means a public agency or private entity that line 9 submits an application to a local government to undertake a line 10 workforce housing housing, as defined in subdivision (k), line 11 development project on sites rezoned pursuant to this chapter. line 12 (b)  “Big box retailer” means a store of greater than 75,000 line 13 square feet of gross buildable area that generates or previously line 14 generated sales or use tax pursuant to the Bradley-Burns Uniform line 15 Local Sales and Use Tax Law (Part 1.5 (commencing with Section line 16 7200) of Division 2 of the Revenue and Taxation Code. 98 — 2 — SB 15 162 line 1 (c)  “Commercial shopping center” means a group of two or line 2 more stores that maintain a common parking lot for patrons of line 3 those stores. line 4 (d)  “Idle” means that at least 80 percent of the leased or rentable line 5 square footage of the big box retailer or commercial shopping line 6 center site is not occupied for at least a 12-month calendar period. line 7 (e)  “Local government” means a city, county, or city and county. line 8 (f)  “NOFA” means Notice of Funding Availability. line 9 (g)  “Project labor agreement” has the same meaning as in line 10 paragraph (1) of subdivision (b) of Section 2500 of the Public line 11 Contract Code. line 12 (h)  “Sales and use tax revenue” means the cumulative amount line 13 of revenue generated by taxes imposed by a local government in line 14 accordance with both of the following laws: line 15 (1)  The Bradley-Burns Uniform Local Sales and Use Tax Law line 16 (Part 1.5 (commencing with Section 7200) of Division 2 of the line 17 Revenue and Taxation Code). line 18 (2)  The Transactions and Use Tax Law (Part 1.6 (commencing line 19 with Section 7251) of Division 2 of the Revenue and Taxation line 20 Code). line 21 (i)  “Skilled and trained workforce” has the same meaning as line 22 provided in Chapter 2.9 (commencing with Section 2600) of Part line 23 1 of Division 2 of the Public Contract Code. line 24 (j)  (1)  “Use by right” means that the local government’s review line 25 of a workforce housing housing, as defined in subdivision (k), line 26 development does not require a conditional use permit, planned line 27 unit development permit, or other discretionary local government line 28 review or approval that would constitute a “project” for purposes line 29 of Division 13 (commencing with Section 21000) of the Public line 30 Resources Code. Any subdivision of the sites shall be subject to line 31 all laws, including, but not limited to, the local government line 32 ordinance implementing the Subdivision Map Act (Division 2 line 33 (commencing with Section 66410) of Title 7 of the Government line 34 Code). line 35 (2)  A local ordinance may provide that “use by right” does not line 36 exempt the use from design review. However, that design review line 37 shall not constitute a “project” for purposes of Division 13 line 38 (commencing with Section 21000) of the Public Resources Code. line 39 (k)  “Workforce housing” “Housing” means an owner-occupied line 40 or rental housing development in which 100 percent of the 98 SB 15 — 3 — 163 line 1 development project’s total units, exclusive of a manager’s unit line 2 or units, are for lower income households, as defined in Section line 3 50079.5, or for moderate-income households, as defined in Section line 4 50053. Units in the development shall be offered at an affordable line 5 housing cost, as defined in Section 50052.5, or at affordable rent, line 6 as defined in Section 50053, except that the rent or sales price for line 7 a moderate-income unit shall be at least 20 percent below the line 8 market rate for a unit of similar size and bedroom count in the line 9 same neighborhood in the city, county, or city and county in which line 10 the housing development is located. The developer of the workforce line 11 housing shall provide the local government with evidence to line 12 establish that the units meet the requirements of this subdivision. line 13 All units, exclusive of any manager’s unit or units, shall be line 14 restricted as provided in this subdivision for at least the following line 15 periods of time: line 16 (A)  Fifty-five years for units that are rented. However, the local line 17 government may require that the rental units in the housing line 18 development project be restricted to lower income households for line 19 a longer period of time if that restriction is consistent with all line 20 applicable regulatory requirements for state assistance. line 21 (B)  Forty-five years for units that are owner occupied. However, line 22 the local government may require that owner-occupied units in line 23 the housing development project be restricted to lower income line 24 households for a longer period of time if that restriction is line 25 consistent with all applicable regulatory requirements for state line 26 assistance. line 27 50495.2. Upon appropriation by the Legislature in the annual line 28 Budget Act or other statute, the department shall administer a line 29 program to provide incentives in the form of grants allocated in line 30 accordance with this chapter to local governments that rezone idle line 31 sites used for a big box retailer or a commercial shopping center line 32 to instead allow the development of workforce housing. housing, line 33 as defined in subdivision (k) of Section 50495. line 34 50495.4. In order to be eligible for a grant under this chapter, line 35 a local government shall do all of the following: line 36 (a)  Rezone one or more idle sites used for a big box retailer or line 37 commercial shopping center to allow workforce housing housing, line 38 as defined in subdivision (k) of Section 50495, as a use by right. line 39 (b)  Approve and issue a certificate of occupancy for a workforce line 40 housing housing, as defined in subdivision (k) of Section 50495, 98 — 4 — SB 15 164 line 1 development on each site rezoned pursuant to subdivision (a) for line 2 which the local government seeks an incentive pursuant to this line 3 chapter. line 4 (c)  Impose the requirements described in Sections 50495.5 and line 5 50495.5.1 on all applicants. line 6 (d)  Apply to the department for an allocation of grant funds and line 7 provide documentation that it has complied with the requirements line 8 of this section. line 9 50495.5. For purposes of subdivision (c) of Section 50495.4, line 10 a local government shall impose all of the following requirements line 11 on all applicants: line 12 (a)  (1)  For an applicant that is a public agency, the applicant line 13 shall not prequalify or shortlist, or award a contract to, an entity line 14 for the performance of any portion of the workforce housing line 15 housing, as defined in subdivision (k) of Section 50495, line 16 development project unless the entity provides an enforceable line 17 commitment to the applicant that the entity and its subcontractors line 18 at every tier will use a skilled and trained workforce to perform line 19 all work on the project or contract that falls within an line 20 apprenticeable occupation in the building and construction trades. line 21 (2)  Paragraph (1) does not apply if any of the following line 22 requirements are met: line 23 (A)  The public agency applicant has entered into a project labor line 24 agreement that will bind all contractors and subcontractors line 25 performing work on the project or contract to use a skilled and line 26 trained workforce, and the entity agrees to be bound by that project line 27 labor agreement. line 28 (B)  The project or contract is being performed under the line 29 extension or renewal of a project labor agreement that was entered line 30 into by the public agency applicant before January 1, 2021. 2023. line 31 (C)  The entity has entered into a project labor agreement that line 32 will bind the entity and all of its subcontractors at every tier line 33 performing the project or contract to use a skilled and trained line 34 workforce. line 35 (b)  For an applicant that is a private entity, the applicant shall line 36 do both of the following: line 37 (1)  Demonstrate to the local government that either of the line 38 following is true: line 39 (A)  The entirety of the workforce housing housing, as defined line 40 in subdivision (k) of Section 50495, development project is a public 98 SB 15 — 5 — 165 line 1 work for purposes of Chapter 1 (commencing with Section 1720) line 2 of Part 7 of Division 2 of the Labor Code. line 3 (B)  If the project is not in its entirety a public work, all line 4 construction workers employed in the execution of the project will line 5 be paid at least the general prevailing rate of per diem wages for line 6 the type of work and geographic area, as determined by the Director line 7 of Industrial Relations pursuant to Sections 1773 and 1773.9 of line 8 the Labor Code, except that apprentices registered in programs line 9 approved by the Chief of the Division of Apprenticeship Standards line 10 may be paid at least the applicable apprentice prevailing rate. line 11 (2)  Demonstrate to the local government that a skilled and line 12 trained workforce will be used to perform all construction work line 13 on the project. line 14 50495.5.1. (a)  If a workforce housing housing, as defined in line 15 subdivision (k) of Section 50495, development project is subject line 16 to subparagraph (B) of paragraph (1) of subdivision (b) of Section line 17 50495.5, then, for those portions of the project that are not a public line 18 work, all of the following shall apply: line 19 (1)  The private entity applicant shall ensure that the prevailing line 20 wage requirement is included in all contracts for the performance line 21 of the work on the project. line 22 (2)  All contractors and subcontractors shall pay to all line 23 construction workers employed in the execution of the work at line 24 least the general prevailing rate of per diem wages, except that line 25 apprentices registered in programs approved by the Chief of the line 26 Division of Apprenticeship Standards may be paid at least the line 27 applicable apprentice prevailing rate. line 28 (3)  (A)  Except as provided in subparagraph (C), all contractors line 29 and subcontractors shall maintain and verify payroll records line 30 pursuant to Section 1776 of the Labor Code and make those records line 31 available for inspection and copying as provided by that section. line 32 (B)  Except as provided in subparagraph (C), the obligation of line 33 the contractors and subcontractors to pay prevailing wages may line 34 be enforced by the Labor Commissioner through the issuance of line 35 a civil wage and penalty assessment pursuant to Section 1741 of line 36 the Labor Code, which may be reviewed pursuant to Section 1742 line 37 of the Labor Code, within 18 months after the completion of the line 38 project, by an underpaid worker through an administrative line 39 complaint or civil action, or by a joint labor-management line 40 committee through a civil action under Section 1771.2 of the Labor 98 — 6 — SB 15 166 line 1 Code. If a civil wage and penalty assessment is issued, the line 2 contractor, subcontractor, and surety on a bond or bonds issued to line 3 secure the payment of wages covered by the assessment shall be line 4 liable for liquidated damages pursuant to Section 1742.1 of the line 5 Labor Code. line 6 (C)  Subparagraphs (A) and (B) do not apply if all contractors line 7 and subcontractors performing work on the project are subject to line 8 a project labor agreement that requires the payment of prevailing line 9 wages to all construction workers employed in the execution of line 10 the project and provides for enforcement of that obligation through line 11 an arbitration procedure. line 12 (4)  Notwithstanding subdivision (c) of Section 1773.1 of the line 13 Labor Code, the requirement that employer payments not reduce line 14 the obligation to pay the hourly straight time or overtime wages line 15 found to be prevailing shall not apply if otherwise provided in a line 16 bona fide collective bargaining agreement covering the worker. line 17 The requirement to pay at least the general prevailing rate of per line 18 diem wages does not preclude use of an alternative workweek line 19 schedule adopted pursuant to Section 511 or 514 of the Labor line 20 Code. line 21 (b)  An applicant that is a private entity subject to paragraph (2) line 22 of subdivision (b) of Section 50495.5 shall comply with all of the line 23 following requirements for the workforce housing housing, as line 24 defined in subdivision (k) of Section 50495, development project: line 25 (1)  The private entity applicant shall require in all contracts for line 26 the performance of work that every contractor and subcontractor line 27 at every tier will individually use a skilled and trained workforce line 28 to complete the project. line 29 (2)  Every contractor and subcontractor shall use a skilled and line 30 trained workforce to complete the project. line 31 (3)  (A)  Except as provided in subparagraph (B), the private line 32 entity applicant shall provide to the local government, on a monthly line 33 basis while the project or contract is being performed, a report line 34 demonstrating compliance with Chapter 2.9 (commencing with line 35 Section 2600) of Part 1 of Division 2 of the Public Contract Code. line 36 A monthly report provided to the local government pursuant to line 37 this clause shall be a public record under the California Public line 38 Records Act (Chapter 3.5 (commencing with Section 6250) of line 39 Division 7 of Title 1 of the Government Code) and shall be open line 40 to public inspection. A private entity applicant that fails to provide 98 SB 15 — 7 — 167 line 1 a monthly report demonstrating compliance with Chapter 2.9 line 2 (commencing with Section 2600) of Part 1 of Division 2 of the line 3 Public Contract Code shall be subject to a civil penalty of ten line 4 thousand dollars ($10,000) per month for each month for which line 5 the report has not been provided. Any contractor or subcontractor line 6 that fails to use a skilled and trained workforce shall be subject to line 7 a civil penalty of two hundred dollars ($200) per day for each line 8 worker employed in contravention of the skilled and trained line 9 workforce requirement. Penalties may be assessed by the Labor line 10 Commissioner within 18 months of completion of the project using line 11 the same procedures for issuance of civil wage and penalty line 12 assessments pursuant to Section 1741 of the Labor Code, and may line 13 be reviewed pursuant to the same procedures in Section 1742 of line 14 the Labor Code. Penalties shall be paid to the State Public Works line 15 Enforcement Fund. line 16 (B)  Subparagraph (A) does not apply if all contractors and line 17 subcontractors performing work on the project are subject to a line 18 project labor agreement that requires compliance with the skilled line 19 and trained workforce requirement and provides for enforcement line 20 of that obligation through an arbitration procedure. line 21 50495.6. (a)  Upon appropriation by the Legislature in the line 22 annual Budget Act or other statute for purposes of this chapter, line 23 the department shall allocate a grant to each local government that line 24 meets the criteria specified in Section 50495.4 in an amount line 25 determined pursuant to subdivision (b). For each calendar year in line 26 which funds are made available for purposes of this chapter, the line 27 department shall issue a NOFA for the distribution of funds to a line 28 local government during the 12-month period subsequent to the line 29 NOFA. The department shall accept applications from applicants line 30 at the end of the 12-month period. line 31 (b)  The amount of grant provided to each eligible local line 32 government shall be as follows: line 33 (1)  Subject to paragraphs (2) and (3), the amount of the grant line 34 shall be equal to seven times the average amount of annual sales line 35 and use tax revenue generated by each idle site identified in the line 36 local government’s application that meets the criteria specified in line 37 subdivisions (a) and (b) of Section 50495.4 over the seven years line 38 immediately preceding the date of the local government’s line 39 application. 98 — 8 — SB 15 168 line 1 (2)  For any idle big box retailer or commercial shopping center line 2 site rezoned by a local government in accordance with subdivision line 3 (a) of Section 50495.4 to allow mixed uses, the amount of grant line 4 pursuant to paragraph (1) shall be reduced in proportion to the line 5 percentage of the square footage of the development that is used line 6 for a use other than workforce housing. housing, as defined in line 7 subdivision (k) of Section 50495. line 8 (3)  If for any NOFA the amount of funds made available for line 9 purposes of this chapter is insufficient to provide each eligible line 10 local government with the full amount specified in paragraphs (1) line 11 and (2), based on the number of applications received, the line 12 department shall reduce the amount of grant funds awarded to each line 13 eligible local government proportionally. line 14 (c)  The department shall allocate the amount determined line 15 pursuant to subdivision (b) to each eligible local government in line 16 one lump-sum following the date of the local government’s line 17 application. line 18 50495.8. Upon appropriation by the Legislature in the annual line 19 Budget Act or other statute, the department may review, adopt, line 20 amend, and repeal guidelines to implement uniform standards or line 21 criteria that supplement or clarify the terms, references, or standards line 22 set forth in this chapter. Any guidelines or terms adopted pursuant line 23 to this chapter shall not be subject to Chapter 3.5 (commencing line 24 with Section 11340) of Part 1 of Division 3 of Title 2 of the line 25 Government Code. line 26 50495.9. This chapter shall be operative on and after January line 27 1, 2023. O 98 SB 15 — 9 — 169 AMENDED IN SENATE APRIL 12, 2021 SENATE BILL No. 478 Introduced by Senator Wiener February 17, 2021 An act to amend Section 65585 of, and to add Section 65913.11 to, the Government Code, relating to housing. legislative counsel’s digest SB 478, as amended, Wiener. Planning and Zoning Law: housing development projects. The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law also requires the Department of Housing and Community Development to notify the city, county, or city and county, and authorizes the department to notify the Attorney General, that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to that element, or any specified action or failure to act, does not substantially comply with the law as it pertains to housing elements or that any local government has taken an action in violation of certain housing laws. This bill would prohibit a local agency, as defined, from imposing specified standards, including a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 2, but not more than 4, units or a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 5, but not more than 10, units. from imposing a floor-to-area ratio standard that is less than 1.0 on a housing development project that consists of 3 to 7 units, or less than 1.25 on a housing development project that consists of 8 to 98 170 10 units. The bill would prohibit a local agency from imposing a lot coverage requirement that would preclude a housing development project from achieving the floor-to-area ratios described above. The bill would prohibit a local agency from denying a housing development project located on an existing legal parcel solely on the basis that the lot area of the proposed lot does not meet the local agency’s requirements for minimum lot size. The bill would only apply to housing development projects that meet specified requirements, including, among other things, that the project be located in a multifamily residential zone or a mixed-use zone, as specified. The bill would additionally require the department to identify violations by a local government of these provisions, as described above. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  The State of California is suffering from extremely high line 4 home prices, rents, and levels of homelessness caused in part by line 5 the lack of proper planning at the local level for the appropriate line 6 amount of housing. line 7 (b)   It is the intent of the Legislature to ensure proper planning line 8 occurs at the local level by requiring the Department of Housing line 9 and Community Development to review the plans and programs line 10 of any city county where the amount of housing produced falls line 11 below a specified percentage of their regional housing needs line 12 allocation and to recommend amendments to local housing line 13 elements as necessary. line 14 SEC. 2. line 15 SECTION 1. Section 65585 of the Government Code is line 16 amended to read: line 17 65585. (a)  In the preparation of its housing element, each city line 18 and county shall consider the guidelines adopted by the department line 19 pursuant to Section 50459 of the Health and Safety Code. Those 98 — 2 — SB 478 171 line 1 guidelines shall be advisory to each city or county in the line 2 preparation of its housing element. line 3 (b)  (1)  At least 90 days prior to adoption of its housing element, line 4 or at least 60 days prior to the adoption of an amendment to this line 5 element, the planning agency shall submit a draft element or draft line 6 amendment to the department. line 7 (2)  The planning agency staff shall collect and compile the line 8 public comments regarding the housing element received by the line 9 city, county, or city and county, and provide these comments to line 10 each member of the legislative body before it adopts the housing line 11 element. line 12 (3)  The department shall review the draft and report its written line 13 findings to the planning agency within 90 days of its receipt of the line 14 draft in the case of an adoption or within 60 days of its receipt in line 15 the case of a draft amendment. line 16 (c)  In the preparation of its findings, the department may consult line 17 with any public agency, group, or person. The department shall line 18 receive and consider any written comments from any public line 19 agency, group, or person regarding the draft or adopted element line 20 or amendment under review. line 21 (d)  In its written findings, the department shall determine line 22 whether the draft element or draft amendment substantially line 23 complies with this article. line 24 (e)  Prior to the adoption of its draft element or draft amendment, line 25 the legislative body shall consider the findings made by the line 26 department. If the department’s findings are not available within line 27 the time limits set by this section, the legislative body may act line 28 without them. line 29 (f)  If the department finds that the draft element or draft line 30 amendment does not substantially comply with this article, the line 31 legislative body shall take one of the following actions: line 32 (1)  Change the draft element or draft amendment to substantially line 33 comply with this article. line 34 (2)  Adopt the draft element or draft amendment without changes. line 35 The legislative body shall include in its resolution of adoption line 36 written findings which explain the reasons the legislative body line 37 believes that the draft element or draft amendment substantially line 38 complies with this article despite the findings of the department. 98 SB 478 — 3 — 172 line 1 (g)  Promptly following the adoption of its element or line 2 amendment, the planning agency shall submit a copy to the line 3 department. line 4 (h)  The department shall, within 90 days, review adopted line 5 housing elements or amendments and report its findings to the line 6 planning agency. line 7 (i)  (1)  (A)  The department shall review any action or failure line 8 to act by the city, county, or city and county that it determines is line 9 inconsistent with an adopted housing element or Section 65583, line 10 including any failure to implement any program actions included line 11 in the housing element pursuant to Section 65583. The department line 12 shall issue written findings to the city, county, or city and county line 13 as to whether the action or failure to act substantially complies line 14 with this article, and provide a reasonable time no longer than 30 line 15 days for the city, county, or city and county to respond to the line 16 findings before taking any other action authorized by this section, line 17 including the action authorized by subparagraph (B). line 18 (B)  If the department finds that the action or failure to act by line 19 the city, county, or city and county does not substantially comply line 20 with this article, and if it has issued findings pursuant to this section line 21 that an amendment to the housing element substantially complies line 22 with this article, the department may revoke its findings until it line 23 determines that the city, county, or city and county has come into line 24 compliance with this article. line 25 (2)  The department may consult with any local government, line 26 public agency, group, or person, and shall receive and consider line 27 any written comments from any public agency, group, or person, line 28 regarding the action or failure to act by the city, county, or city line 29 and county described in paragraph (1), in determining whether the line 30 housing element substantially complies with this article. line 31 (j)  The department shall notify the city, county, or city and line 32 county and may notify the office of the Attorney General that the line 33 city, county, or city and county is in violation of state law if the line 34 department finds that the housing element or an amendment to this line 35 element, or any action or failure to act described in subdivision line 36 (i), does not substantially comply with this article or that any local line 37 government has taken an action in violation of the following: line 38 (1)  Housing Accountability Act (Section 65589.5). line 39 (2)  Section 65863. 98 — 4 — SB 478 173 line 1 (3)  Chapter 4.3 (commencing with Section 65915) of Division line 2 1 of Title 7. line 3 (4)  Section 65008. line 4 (5)  Section 65913.11. line 5 (k)  Commencing July 1, 2019, prior to the Attorney General line 6 bringing any suit for a violation of the provisions identified in line 7 subdivision (j) related to housing element compliance and seeking line 8 remedies available pursuant to this subdivision, the department line 9 shall offer the jurisdiction the opportunity for two meetings in line 10 person or via telephone to discuss the violation, and shall provide line 11 the jurisdiction written findings regarding the violation. This line 12 paragraph does not affect any action filed prior to the effective line 13 date of this section. The requirements set forth in this subdivision line 14 do not apply to any suits brought for a violation or violations of line 15 paragraphs (1), (3), and (4) of subdivision (j). line 16 (l)  In any action or special proceeding brought by the Attorney line 17 General relating to housing element compliance pursuant to a line 18 notice or referral under subdivision (j), the Attorney General may line 19 request, upon a finding of the court that the housing element does line 20 not substantially comply with the requirements of this article line 21 pursuant to this section, that the court issue an order or judgment line 22 directing the jurisdiction to bring its housing element into line 23 substantial compliance with the requirements of this article. The line 24 court shall retain jurisdiction to ensure that its order or judgment line 25 is carried out. If a court determines that the housing element of line 26 the jurisdiction substantially complies with this article, it shall line 27 have the same force and effect, for purposes of eligibility for any line 28 financial assistance that requires a housing element in substantial line 29 compliance and for purposes of any incentives provided under line 30 Section 65589.9, as a determination by the department that the line 31 housing element substantially complies with this article. line 32 (1)  If the jurisdiction has not complied with the order or line 33 judgment after twelve months, the court shall conduct a status line 34 conference. Following the status conference, upon a determination line 35 that the jurisdiction failed to comply with the order or judgment line 36 compelling substantial compliance with the requirements of this line 37 article, the court shall impose fines on the jurisdiction, which shall line 38 be deposited into the Building Homes and Jobs Trust Fund. Any line 39 fine levied pursuant to this paragraph shall be in a minimum line 40 amount of ten thousand dollars ($10,000) per month, but shall not 98 SB 478 — 5 — 174 line 1 exceed one hundred thousand dollars ($100,000) per month, except line 2 as provided in paragraphs (2) and (3). In the event that the line 3 jurisdiction fails to pay fines imposed by the court in full and on line 4 time, the court may require the Controller to intercept any available line 5 state and local funds and direct such funds to the Building Homes line 6 and Jobs Trust Fund to correct the jurisdiction’s failure to pay. line 7 The intercept of the funds by the Controller for this purpose shall line 8 not violate any provision of the California Constitution. line 9 (2)  If the jurisdiction has not complied with the order or line 10 judgment after three months following the imposition of fees line 11 described in paragraph (1), the court shall conduct a status line 12 conference. Following the status conference, if the court finds that line 13 the fees imposed pursuant to paragraph (1) are insufficient to bring line 14 the jurisdiction into compliance with the order or judgment, the line 15 court may multiply the fine determined pursuant to paragraph (1) line 16 by a factor of three. In the event that the jurisdiction fails to pay line 17 fines imposed by the court in full and on time, the court may line 18 require the Controller to intercept any available state and local line 19 funds and direct such funds to the Building Homes and Jobs Trust line 20 Fund to correct the jurisdiction’s failure to pay. The intercept of line 21 the funds by the Controller for this purpose shall not violate any line 22 provision of the California Constitution. line 23 (3)  If the jurisdiction has not complied with the order or line 24 judgment six months following the imposition of fees described line 25 in paragraph (1), the court shall conduct a status conference. Upon line 26 a determination that the jurisdiction failed to comply with the order line 27 or judgment, the court may impose the following: line 28 (A)  If the court finds that the fees imposed pursuant to line 29 paragraphs (1) and (2) are insufficient to bring the jurisdiction into line 30 compliance with the order or judgment, the court may multiply line 31 the fine determined pursuant to paragraph (1) by a factor of six. line 32 In the event that the jurisdiction fails to pay fines imposed by the line 33 court in full and on time, the court may require the Controller to line 34 intercept any available state and local funds and direct such funds line 35 to the Building Homes and Jobs Trust Fund to correct the line 36 jurisdiction’s failure to pay. The intercept of the funds by the line 37 Controller for this purpose shall not violate any provision of the line 38 California Constitution. line 39 (B)  The court may order remedies available pursuant to Section line 40 564 of the Code of Civil Procedure, under which the agent of the 98 — 6 — SB 478 175 line 1 court may take all governmental actions necessary to bring the line 2 jurisdiction’s housing element into substantial compliance pursuant line 3 to this article in order to remedy identified deficiencies. The court line 4 shall determine whether the housing element of the jurisdiction line 5 substantially complies with this article and, once the court makes line 6 that determination, it shall have the same force and effect, for all line 7 purposes, as the department’s determination that the housing line 8 element substantially complies with this article. An agent appointed line 9 pursuant to this paragraph shall have expertise in planning in line 10 California. line 11 (4)  This subdivision does not limit a court’s discretion to apply line 12 any and all remedies in an action or special proceeding for a line 13 violation of any law identified in subdivision (j). line 14 (m)  In determining the application of the remedies available line 15 under subdivision (l), the court shall consider whether there are line 16 any mitigating circumstances delaying the jurisdiction from coming line 17 into compliance with state housing law. The court may consider line 18 whether a city, county, or city and county is making a good faith line 19 effort to come into substantial compliance or is facing substantial line 20 undue hardships. line 21 (n)  The office of the Attorney General may seek all remedies line 22 available under law including those set forth in this section. line 23 SEC. 3. line 24 SEC. 2. Section 65913.11 is added to the Government Code, line 25 to read: line 26 65913.11. (a)  With respect to a housing development project line 27 consisting of at least two, but not more than 10, units, that meets line 28 the requirements of subdivision (b), a local agency shall not do line 29 any of the following: line 30 (1)  (A)  Impose a floor-to-area ratio standard that is less than line 31 1.5. line 32 (B)  This paragraph shall not be construed to affect a local line 33 agency’s ability to impose building height standards it deems line 34 appropriate or to affect a local agency’s ability to impose setbacks. line 35 (2)  Impose a minimum lot size standard that exceeds ____ line 36 square feet on parcels zoned for at least two, but not more than line 37 four, units. line 38 (3)  Impose a minimum lot size standard that exceeds ____ line 39 square feet on parcels zoned for at least five, but not more than line 40 10, units. 98 SB 478 — 7 — 176 line 1 (1)  For a housing development project consisting of three to line 2 seven units, impose a floor-to-area ratio standard that is less than line 3 1.0. line 4 (2)  For a housing development project consisting of 8 to 10 line 5 units, impose a floor-to-area ratio standard that is less than 1.25. line 6 (3)  Deny a housing development project located on an existing line 7 legal parcel solely on the basis that the lot area of the proposed line 8 lot does not meet the local agency’s requirements for minimum line 9 lot size. line 10 (b)  To be eligible for the provisions in subdivision (a), a housing line 11 development project shall meet all of the following conditions: line 12 (1)  The project consists of at least 3, but not more than 10, units. line 13 (2)  The project is located in a multifamily residential zone or line 14 a mixed-use zone, as designated by the local agency, and is not line 15 located in either of the following: line 16 (A)  Within a single-family zone. line 17 (B)  Within a historic district or property included on the State line 18 Historic Resources Inventory, as defined in Section 5020.1 of the line 19 Public Resources Code, or within a site that is designated or listed line 20 as a city or county landmark or historic property or district line 21 pursuant to a city or county ordinance. line 22 (3)  The project is located on a legal parcel or parcels located line 23 in a city if, and only if, the city boundaries include some portion line 24 of either an urbanized area or urban cluster, as designated by the line 25 United States Census Bureau, or, for unincorporated areas, a legal line 26 parcel or parcels wholly within the boundaries of an urbanized line 27 area or urban cluster, as designated by the United States Census line 28 Bureau. line 29 (c)  (1)  This section shall not be construed to prohibit a local line 30 agency from imposing any zoning or design standards, including, line 31 but not limited to, building height and setbacks, on a housing line 32 development project that meets the requirements of subdivision line 33 (b), other than zoning or design standards that establish line 34 floor-to-area ratios or lot size requirements that expressly conflict line 35 with the standards in subdivision (a). line 36 (2)  Notwithstanding paragraph (1), a local agency may not line 37 impose a lot coverage requirement that would preclude a housing line 38 development project that meets the requirements established in line 39 subdivision (b) from achieving the floor-to-area ratio allowed in line 40 subdivision (a). 98 — 8 — SB 478 177 line 1 (b) line 2 (d)  As used in this section: line 3 (1)  “Housing development project” means a housing line 4 development project as defined in paragraph (2) of subdivision (h) line 5 of Section 65589.5. line 6 (2)  “Local agency” means a county, city, or city and county, line 7 including a charter city, or city and county. line 8 (3)  “Unit” means a unit of housing, including but shall not line 9 include an accessory dwelling unit or a junior accessory dwelling line 10 unit. line 11 (c)  For the purposes of this section, the addition of an accessory line 12 dwelling unit, a junior accessory dwelling unit, or any other line 13 additional unit to an existing unit shall be considered at least a line 14 two-unit project. The protections of this section shall apply to both line 15 the existing and proposed homes. line 16 SEC. 3. The Legislature finds and declares that missing middle line 17 housing is naturally affordable, and therefore, the development of line 18 missing middle housing is a matter of statewide concern and is line 19 not a municipal affair as that term is used in Section 5 of Article line 20 XI of the California Constitution. Therefore, Section 1 of this act line 21 amending Section 65585 of, and Section 2 of this act adding Section line 22 65913.11 to, the Government Code apply to all cities, including line 23 charter cities. O 98 SB 478 — 9 — 178 AMENDED IN ASSEMBLY APRIL 19, 2021 AMENDED IN ASSEMBLY APRIL 6, 2021 AMENDED IN ASSEMBLY MARCH 18, 2021 california legislature—2021–22 regular session ASSEMBLY BILL No. 602 Introduced by Assembly Member Grayson February 11, 2021 An act to amend Sections 65940.1 and 66019 of, and to add Section 65940.2 to, the Government Code, and to add Section 50466.5 to the Health and Safety Code, relating to land use. legislative counsel’s digest AB 602, as amended, Grayson. Development fees: impact fee nexus study. (1)  Existing law, the Permit Streamlining Act, which is part of the Planning and Zoning Law, requires each public agency to provide a development project applicant with a list that specifies the information that will be required from any applicant for a development project. The Mitigation Fee Act requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. Existing law requires a city, county, or special district that has an internet website to make available on its internet website certain information, as applicable, including its current schedule of fees and exactions. This bill, among other things, would require, on and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus 96 179 study to follow specific standards and practices, including, but not limited to, (1) that prior to the adoption of an associated development fee or exaction, an impact fee nexus study be adopted, (2) that the study identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary, and (3) if the study is adopted after July 1, 2022, either calculate a fee levied or imposed on a housing development project proportionately to the square footage of the proposed units, or make specified findings explaining why square footage is not an appropriate metric to calculate the fees. The bill would also require a city, county, or special district to post a written fee schedule or a link directly to the written fee schedule on its internet website. The bill would require a city or county to request the total amount of fees and exactions associated with a project upon the issuance of a certificate of occupancy, and to post this information on its internet website, as specified. By requiring a city or county to include certain information in, and follow certain standards with regard to, its impact fee nexus studies and to include certain information on its internet website, the bill would impose a state-mandated local program. (2)  Existing law requires the Department of Housing and Community Development to develop specifications for the structure, functions, and organization of a housing and community development information system for this state. Existing law requires the system to include statistical, demographic, and community development data that will be of assistance to local public entities in the planning and implementation of housing and community development programs. This bill would require the department, on or before January 1, 2024, to create an impact fee nexus study template that may be used by local jurisdictions. The bill would require that the template include a method of calculating the feasibility of housing being built with a given fee level. (3)  Existing law requires a city, county, or special district that has an internet website to make specified information available on its internet website, including a current schedule of fees and exactions imposed by the city, county, or special district applicable to a proposed housing development project. Existing law defines “exaction” for these purposes to mean construction excise taxes, a requirement that the housing development project provide public art or an in-lieu payment, special taxes levied pursuant to the Mello-Roos Community Facilities Act, and dedications of parkland or in-lieu fees. 96 — 2 — AB 602 180 This bill would remove construction excise taxes and special taxes levied pursuant to the Mello-Roos Community Facilities Act from the above definition of “exaction.” (4) (3)  The Mitigation Fee Act requires notice of the time and place of a meeting regarding any fee, that includes a general explanation of the matter to be considered, be mailed at least 14 days before the first meeting to an interested party who files a written request with the city or county for mailed notice of a meeting on a new or increased fee. This bill would authorize any member of the public, including an applicant for a development project, to submit evidence that the city, county, or other local agency has failed to comply with the Mitigation Fee Act. The bill would require the legislative body of the city, county, or other local agency to consider any timely submitted evidence and authorize the legislative body to change or adjust the proposed fee or fee increase, as specified. (5) (4)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 65940.1 of the Government Code is line 2 amended to read: line 3 65940.1. (a)  (1)  A city, county, or special district that has an line 4 internet website shall make all of the following available on its line 5 internet website, as applicable: line 6 (A)  (i)  A current schedule of fees, exactions, and affordability line 7 requirements imposed by that city, county, or special district, line 8 including any dependent special districts, as defined in Section line 9 56032.5, of the city or county applicable to a proposed housing line 10 development project. line 11 (ii)  The city, county, or special district shall present the line 12 information described in clause (i) in a manner that clearly line 13 identifies the fees, exactions, and affordability requirements that 96 AB 602 — 3 — 181 line 1 apply to each parcel and the fees that apply to each new water and line 2 sewer utility connection. line 3 (iii)  The city, county, or special district shall post a written fee line 4 schedule or a link directly to the written fee schedule on its internet line 5 website. line 6 (B)  All zoning ordinances and development standards adopted line 7 by the city or county presenting the information, which shall line 8 specify the zoning, design, and development standards that apply line 9 to each parcel. line 10 (C)  The list required to be compiled pursuant to Section 65940 line 11 by the city or county presenting the information. line 12 (D)  The current and five previous annual fee reports or the line 13 current and five previous annual financial reports, that were line 14 required pursuant to subdivision (b) of Section 66006 and line 15 subdivision (d) of Section 66013. line 16 (E)  An archive of impact fee nexus studies, cost of service line 17 studies, or equivalent, conducted by that city, county, or special line 18 district on or after January 1, 2018. For purposes of this line 19 subparagraph, “cost of service study” means the data provided to line 20 the public pursuant to subdivision (a) of Section 66016. line 21 (2)  A city, county, or special district shall update the information line 22 made available under this subdivision within 30 days of any line 23 changes. line 24 (3)  (A)  A city, county, or special district city or county shall line 25 request from a development proponent, upon issuance of a line 26 certificate of occupancy, the total amount of fees and exactions line 27 associated with the project for which the certificate was issued. line 28 The city, county, or special district city or county shall post this line 29 information on its internet website, and update it at least twice per line 30 year. line 31 (B)  A city, county, or special district city or county shall not be line 32 responsible for the accuracy for the information received and posted line 33 pursuant to subparagraph (A). A city, county, or special district line 34 city or county may include a disclaimer regarding the accuracy of line 35 the information posted on its internet website under this paragraph. line 36 (b)  For purposes of this section: line 37 (1)  “Affordability requirement” means a requirement imposed line 38 as a condition of a development of residential units, that the line 39 development include a certain percentage of the units affordable line 40 for rent or sale to households with incomes that do not exceed the 96 — 4 — AB 602 182 line 1 limits for moderate-income, lower income, very low income, or line 2 extremely low income households specified in Sections 50079.5, line 3 50093, 50105, and 50106 of the Health and Safety Code, or an line 4 alternative means of compliance with that requirement including, line 5 but not limited to, in-lieu fees, land dedication, off-site line 6 construction, or acquisition and rehabilitation of existing units. line 7 (2)  (A)  “Exaction” means both any of the following: line 8 (i)  A construction excise tax. line 9 (i) line 10 (ii)  A requirement that the housing development project provide line 11 public art or an in-lieu payment. line 12 (ii) line 13 (iii)  Dedications of parkland or in-lieu fees imposed pursuant line 14 to Section 66477. line 15 (iv)  A special tax levied on new housing units pursuant to the line 16 Mello Roos Community Facilities Act (Chapter 2.5 (commencing line 17 with Section 53311) of Part 1 of Division 2 of Title 5). line 18 (B)  “Exaction” does not include fees or charges pursuant to line 19 Section 66013 that are not imposed (i) in connection with issuing line 20 or approving a permit for development or (ii) as a condition of line 21 approval of a proposed development, as held in Capistrano Beach line 22 Water Dist. v. Taj Development Corp. (1999) 72 Cal.App.4th 524. line 23 (3)  “Fee” means a fee or charge described in the Mitigation Fee line 24 Act (Chapter 5 (commencing with Section 66000), Chapter 6 line 25 (commencing with Section 66010), Chapter 7 (commencing with line 26 Section 66012), Chapter 8 (commencing with Section 66016), and line 27 Chapter 9 (commencing with Section 66020)). line 28 (4)  “Housing development project” means a use consisting of line 29 any of the following: line 30 (A)  Residential units only. line 31 (B)  Mixed-use developments consisting of residential and line 32 nonresidential uses with at least two-thirds of the square footage line 33 designated for residential use. line 34 (C)  Transitional housing or supportive housing. line 35 (c)  This section shall not be construed to alter the existing line 36 authority of a city, county, or special district to adopt or impose line 37 an exaction or fee. line 38 SEC. 2. Section 65940.2 is added to the Government Code, to line 39 read: 96 AB 602 — 5 — 183 line 1 65940.2. (a)  On and after January 1, 2022, a city, county, or line 2 special district that conducts an impact fee nexus study shall follow line 3 all of the following standards and practices: line 4 (1)  Prior to the adoption of an associated development fee or line 5 exaction, fee, an impact fee nexus study shall be adopted. line 6 (2)  When applicable, the nexus study shall identify the existing line 7 level of service for each public facility, identify the proposed new line 8 level of service, and include an explanation of why the new level line 9 of service is appropriate. line 10 (3)  A nexus study shall include information that supports the line 11 local agency’s actions, as required by subdivision (a) of Section line 12 66001. line 13 (4)  If a nexus study supports the increase of an existing fee, the line 14 city, county, or special district shall review the assumptions of the line 15 nexus study supporting the original fee and evaluate the amount line 16 of fees collected under the original fee. line 17 (5)  (A)  A nexus study adopted after July 1, 2022, shall comply line 18 with one of the following: line 19 (i)  Calculate calculate a fee imposed on a housing development line 20 project proportionately to the square footage of proposed units of line 21 the development. A fee imposed proportionately to the square line 22 footage of the proposed units of the development shall be deemed line 23 to bear a reasonable relationship between the need for the public line 24 facility and the type of development project on which the fee is line 25 imposed. line 26 (B)  A nexus study is not required to comply with subparagraph line 27 (A) if the city, county, or special district makes a finding that line 28 includes all of the following: line 29 (ii)  Include a finding that includes all of the following: line 30 (I) line 31 (i)  An explanation as to why square footage is not appropriate line 32 metric to calculate fees imposed on housing development project. line 33 (II)  Demonstrate line 34 (ii)  An explanation that an alternative basis of calculating the line 35 fee bears a reasonable relationship between the need for the public line 36 facility and the type of development project on which the fee is line 37 imposed. Any alternative basis for calculating fees shall be line 38 presumed to lack a reasonable relationship between the need for line 39 the public facility and the type of development project on which 96 — 6 — AB 602 184 line 1 the fee is imposed unless a finding is made pursuant to this line 2 subclause. line 3 (III)  Demonstrate that there are line 4 (iii)  That other policies in the fee structure that support smaller line 5 developments, or otherwise ensure that smaller developments are line 6 not charged disproportionate fees. line 7 (B)  This paragraph does not prohibit an agency from establishing line 8 different fees for different types of developments. line 9 (6)  A nexus study adopted after July 1, 2022, shall consider line 10 targeting fees geographically. If the city, county, or special district line 11 does not target the fees geographically, it shall adopt a finding line 12 explaining why the adoption of geographically specific fees is not line 13 appropriate. line 14 (7)  A Large jurisdictions shall adopt a capital improvement line 15 plan shall be adopted as as a part of the study when infrastructure line 16 that is required to mitigate development impacts, or is required as line 17 a condition of development, exceeds a total cost of two million line 18 dollars ($2,000,000). nexus study. line 19 (8)  All studies shall be adopted at a public hearing with at least line 20 30 days’ notice, and the local agency shall notify any member of line 21 the public that requests notice of intent to begin an impact fee line 22 nexus study of the date of the hearing. line 23 (9)  Studies shall be updated at least every eight years, from the line 24 period beginning on January 1, 2022. line 25 (10)  The local agency may use the impact fee nexus study line 26 template developed by the Department of Housing and Community line 27 Development pursuant to Section 50466.5 of the Health and Safety line 28 Code. line 29 (b)  This section does not require any study or analysis as a line 30 prerequisite to impose any fee or charges pursuant to Section line 31 66013. line 32 (c)  For purposes of this section: line 33 (1)  “Exaction” and “fee” have the same meanings as in Section line 34 65940.1. line 35 (1)  “Development fee” shall have the same meaning as line 36 subdivision (b) of Section 66000. line 37 (2)  “Large jurisdiction” shall have the same meaning as line 38 subdivision (d) of Section 53559.1 of the Health and Safety Code. line 39 (2) 96 AB 602 — 7 — 185 line 1 (3)  “Public facility” has the same meaning as defined in line 2 subdivision (d) of Section 66000. line 3 SEC. 3. Section 66019 of the Government Code is amended line 4 to read: line 5 66019. (a)  As used in this section: line 6 (1)  “Fee” means a fee as defined in Section 66000, but does not line 7 include any of the following: line 8 (A)  A fee authorized pursuant to Section 66013. line 9 (B)  A fee authorized pursuant to Section 17620 of the Education line 10 Code, or Sections 65995.5 and 65995.7. line 11 (C)  Rates or charges for water, sewer, or electrical services. line 12 (D)  Fees subject to Section 66016. line 13 (2)  “Party” means a person, entity, or organization representing line 14 a group of people or entities. line 15 (3)  “Public facility” means a public facility as defined in Section line 16 66000. line 17 (b)  For any fee, notice of the time and place of the meeting, line 18 including a general explanation of the matter to be considered, and line 19 a statement that the data required by this subdivision is available line 20 shall be mailed at least 14 days prior to the first meeting to an line 21 interested party who files a written request with the city, county, line 22 or city and county for mailed notice of a meeting on a new or line 23 increased fee to be enacted by the city, county, or city and county. line 24 Any written request for mailed notices shall be valid for one year line 25 from the date on which it is filed unless a renewal request is filed. line 26 Renewal requests for mailed notices shall be filed on or before line 27 April 1 of each year. The legislative body of the city, county, or line 28 city and county may establish a reasonable annual charge for line 29 sending notices based on the estimated cost of providing the line 30 service. The legislative body may send the notice electronically. line 31 At least 10 days prior to the meeting, the city, county, or city and line 32 county shall make available to the public the data indicating the line 33 amount of cost, or the estimated cost, required to provide the public line 34 facilities and the revenue sources anticipated to fund those public line 35 facilities, including general fund revenues. The new or increased line 36 fee shall be effective no earlier than 60 days following the final line 37 action on the adoption or increase of the fee, unless the city, county, line 38 or city and county follows the procedures set forth in subdivision line 39 (b) of Section 66017. 96 — 8 — AB 602 186 line 1 (c)  If a city, county, or city and county receives a request for line 2 mailed notice pursuant to this section, or a local agency receives line 3 a request for mailed notice pursuant to Section 66016, the city, line 4 county, or city and county or other local agency may provide the line 5 notice via electronic mail for those who specifically request line 6 electronic mail notification. A city, county, city or county, or other line 7 local agency that provides electronic mail notification pursuant to line 8 this subdivision shall send the electronic mail notification to the line 9 electronic mail address indicated in the request. The electronic line 10 mail notification authorized by this subdivision shall operate as line 11 an alternative to the mailed notice required by this section. line 12 (d)  (1)  Any member of the public, including an applicant for a line 13 development project, may submit evidence that the city, county, line 14 or other local agency’s determinations and findings required line 15 pursuant to subdivision (a) of Section 66001 are insufficient or line 16 that the local agency otherwise failed to comply with this chapter. line 17 Evidence submitted pursuant to this subdivision may include, but line 18 is not limited to, information regarding the proposed fee line 19 calculation, assumptions, or methodology or the calculation, line 20 assumptions, or methodology for an existing fee upon which the line 21 proposed fee or fee increase is based. line 22 (2)  The legislative body of the city, county, or other local agency line 23 shall consider any evidence submitted pursuant to paragraph (1) line 24 that is timely submitted under this chapter. After consideration of line 25 the evidence, the legislative body of the city, county, or other local line 26 agency may change or adjust the proposed fee or fee increase if line 27 deemed necessary by the legislative body. line 28 SEC. 4. Section 50466.5 is added to the Health and Safety line 29 Code, to read: line 30 50466.5. (a)  On or before January 1, 2024, the department line 31 shall create an impact fee nexus study template that may be used line 32 by local jurisdictions. The template shall include a method of line 33 calculating the feasibility of housing being built with a given fee line 34 level. line 35 (b)  The department may contract with nonprofit or academic line 36 institutions to complete the template. line 37 SEC. 5. No reimbursement is required by this act pursuant to line 38 Section 6 of Article XIIIB of the California Constitution because line 39 a local agency or school district has the authority to levy service line 40 charges, fees, or assessments sufficient to pay for the program or 96 AB 602 — 9 — 187 line 1 level of service mandated by this act, within the meaning of Section line 2 17556 of the Government Code. O 96 — 10 — AB 602 188 AMENDED IN SENATE APRIL 13, 2021 AMENDED IN SENATE MARCH 9, 2021 SENATE BILL No. 612 Introduced by Senator Portantino (Coauthors: Senators Allen, Becker, Limón, McGuire, Stern, and Wiener) (Coauthors: Assembly Members Bauer-Kahan, Berman, Bloom, Boerner Horvath, Chiu, Kalra, Lee, Levine, Mullin, Muratsuchi, Robert Rivas, Stone, Ting, and Wood) February 18, 2021 An act to amend Section 454.5 of, and to add Section 366.4 to, to the Public Utilities Code, relating to electricity. legislative counsel’s digest SB 612, as amended, Portantino. Electrical corporations and other load-serving entities: allocation of legacy resources. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize and facilitate direct transactions between electric service providers and retail end-use customers, but suspends direct transactions except as expressly authorized. Existing law expressly requires the commission to authorize direct transactions for nonresidential end-use customers, subject to an annual maximum allowable total kilowatthour limit established, as specified, for each electrical corporation, to be achieved following a now-completed 3-to-5-year phase-in period. Existing law requires the 97 189 commission, on or before June 1, 2019, to issue an order specifying, among other things, an increase in the annual maximum allowable total kilowatthour limit by 4,000 gigawatthours and to apportion that increase among the service territories of the electrical corporations. Existing law requires the commission, by June 1, 2020, to provide the Legislature with recommendations on the adoption and implementation of a 2nd direct transactions reopening schedule and requires that the commission make specified findings with respect to those recommendations, including that the recommendations do not cause undue shifting of costs to bundled service customers of an electrical corporation or to direct transaction customers. Existing law authorizes a community choice aggregator to aggregate the electrical load of interested electricity consumers within its boundaries and requires a community choice aggregator to file an implementation plan with the Public Utilities Commission commission in order for the commission to determine a cost-recovery mechanism to be imposed on the community choice aggregator to prevent a shifting of costs to an electrical corporation’s bundled customers. Existing law requires that the bundled retail customers of an electrical corporation not experience any cost increase as a result of the implementation of a community choice aggregator program and requires the commission to ensure that the departing load does not experience any cost increases as a result of an allocation of costs that were not incurred on behalf of the departing load. Pursuant to existing law, the commission has adopted decisions and orders imposing certain costs on customers of an electrical corporation that depart from receiving bundled electrical service from an electrical corporation to instead receive electric service from an electric service provider or a community choice aggregator. This bill would require an electrical corporation, by July 1, 2022, and by each July 1 thereafter, to annually offer, for the following year, not less than once every 3 years thereafter, to offer an allocation of each product, as defined, arising from legacy resources, as defined, to its bundled customers and to other load-serving entities, defined to include electric service providers and community choice aggregators, serving departing-load departing load customers, as defined, who bear cost responsibility for those resources. The bill would authorize a load-serving entity within the service territory of the electrical corporation to elect to receive all or a portion of the vintaged proportional share of products allocated to its end-use customers and, 97 — 2 — SB 612 190 if so, require it to pay to the electrical corporation the commission-established market price benchmark for the vintage proportional share of products received. The bill would require that an electrical corporation offer any the products allocated to departing-load departing load customers that a load-serving entity declines to elect to receive in the wholesale market in an annual solicitation through regular solicitations and require that all revenues received through the annual solicitation these solicitations be credited toward reducing any nonbypassable charge for all distribution customers of the electrical corporation. paid by bundled and departing load customers to recover the costs of legacy resources. The bill would require the commission to recognize and account for the value of all products in the electrical corporation’s legacy resource portfolio in determining any the nonbypassable charge to be paid by departing-load customers. bundled and departing load customers to recover the costs of legacy resources. Existing law requires that the commission review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives, except that an electrical corporation that serves less than 500,000 electric retail customers within the state may file with the commission a request for exemption from the requirement to file a procurement plan and the commission is required to grant the exemption upon a showing of good cause. Existing law requires that an approved procurement plan eliminate the need for after-the-fact reasonableness reviews of an electrical corporation’s actions in compliance with the plan, but authorizes the commission to establish a regulatory process to verify and ensure that each contract entered into pursuant to an approved plan was administered in accordance with the terms of the contract, and contract disputes that may arise are reasonably resolved. This bill would require an electrical corporation with a commission-approved plan to conduct a request for offers on January 1, 2023, and by January 1 of each odd-numbered year thereafter, from any party to an existing electricity purchase agreement, at that party’s full discretion, to modify the agreement to reduce the electrical corporation’s total procurement costs on a present value basis over the remaining life of the contract and that is recovered from both bundled and departing-load customers. The bill would require an electrical corporation to publicly report the results of the request for offers in its annual proceeding for review of contract administration established by the commission pursuant to the above-described authorization. The bill 97 SB 612 — 3 — 191 would require the commission to determine in its annual proceeding for review of contract administration, if the electrical corporation’s actions or inactions in response to the request for offers were reasonable and in the interest of bundled and departing load customers. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the a commission action implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 366.4 is added to the Public Utilities line 2 Code, to read: line 3 366.4. (a)  For purposes of this section, the following terms line 4 have the following meanings: definitions apply: line 5 (1)  “Departing-load “Departing Load customer” means a line 6 customer of an electrical corporation that departs from receiving line 7 electric service from an electrical corporation to instead receive line 8 electric service from another load-serving entity. line 9 (2)  “Legacy resource” means any generation resource or line 10 agreement to purchase electricity for delivery to end-use customers line 11 in California that was procured by an electrical corporation solely line 12 on behalf of the electrical corporation’s end-use customers it served line 13 at the time of procurement and that is eligible for recovery to line 14 prevent cost shifting among the customers of load-serving entities. line 15 (3)  “Load-serving entity” has the same meaning as defined in line 16 Section 380. line 17 (4)  “Product” means electrical resources procured to meet the line 18 resource adequacy requirements of Section 380, electrical resources line 19 procured to meet the requirements of the California Renewables 97 — 4 — SB 612 192 line 1 Portfolio Standard Program (Article 16 (commencing with Section line 2 399.11)), electrical resources that do not emit greenhouse gases, line 3 and any new generating attributes identified after January 1, 2021, line 4 that have regulatory compliance or other identified market value. line 5 (5)  “Vintage” means the cost responsibility allocated by the line 6 commission, for purposes of legacy resource cost responsibility, line 7 to departing-load departing load customers, which the commission line 8 allocates to those departing-load departing load customers line 9 corresponding to the year the customer departs from receiving line 10 electric service from the electrical corporation. line 11 (b)  (1)  By July 1, 2022, and by each July 1 not less than once line 12 every three years thereafter, the commission shall require an line 13 electrical corporation to annually offer, for the following year, line 14 offer an allocation of each product arising from legacy resources line 15 to its bundled customers and to other load-serving entities serving line 16 departing-load departing load customers who bear cost line 17 responsibility for those resources. line 18 (2)  The electrical corporation shall offer this allocation in an line 19 amount up to each customer’s proportional share of legacy line 20 resources in the customer’s vintage, as determined by the line 21 commission. line 22 (3)  The electrical corporation shall offer the products for a term line 23 and in a manner that maximizes the value of the legacy resources. line 24 resources and promotes stable long-term resource and reliability line 25 planning. line 26 (c)  (1)  A load-serving entity within the service territory of the line 27 electrical corporation may elect to receive all or a portion of the line 28 vintaged proportional share of products allocated to its end-use line 29 customers and shall pay to the electrical corporation the line 30 commission-established market price benchmark for the vintage line 31 proportional share of products received. line 32 (2)  The electrical corporation shall offer to load-serving entities line 33 serving departing-load customers within its service territory the line 34 same long-term renewable portfolio standard value available to line 35 bundled customers by offering an allocation of eligible renewable line 36 portfolio standard energy resources with a remaining contract or line 37 ownership term of at least 10 years to load-serving entities for a line 38 term duration equal to the proportionate share of the remaining line 39 term of the eligible renewable energy resources. These term. A line 40 load-serving entity may apply these allocated resources shall count 97 SB 612 — 5 — 193 line 1 toward a load-serving entity’s to its long-term procurement line 2 requirement pursuant to subdivision (b) of Section 399.13. line 3 (3)  To enable a load-serving entity to effectively align its supply line 4 with its customers’ requirements, the electrical corporation shall, line 5 at a minimum, provide each load-serving entity electing to receive line 6 an allocation the following information for each allocated product: line 7 (A)  Not less than seven months before the beginning of the line 8 production year, the most recent three-year historical production line 9 data for the allocated products and the estimated annual production line 10 profile by vintage and resource type in all hours. line 11 (B)  Within 15 days following the end of each production month, line 12 actual production data for the prior month. line 13 (d)  (1)  An electrical corporation shall offer any the products line 14 allocated to departing-load departing load customers that a line 15 load-serving entity declines to elect to receive pursuant to line 16 subdivision (c) in the wholesale market in an annual solicitation. line 17 through regular solicitations. All revenues received through the line 18 annual solicitation these solicitations shall be credited toward line 19 reducing any nonbypassable charge for all distribution customers line 20 of the electrical corporation. paid by bundled and departing load line 21 customers to recover the costs of legacy resources. line 22 (2)  The commission shall recognize and account for the value line 23 of all products in the electrical corporation’s legacy resource line 24 portfolio in determining any the nonbypassable charge to be paid line 25 by departing-load customers. the bundled and departing load line 26 customers to recover the costs of legacy resources. line 27 SEC. 2. Section 454.5 of the Public Utilities Code is amended line 28 to read: line 29 454.5. (a)  The commission shall specify the allocation of line 30 electricity, including quantity, characteristics, and duration of line 31 electricity delivery, that the Department of Water Resources shall line 32 provide under its power purchase agreements to the customers of line 33 each electrical corporation, which shall be reflected in the electrical line 34 corporation’s proposed procurement plan. Each electrical line 35 corporation shall file a proposed procurement plan with the line 36 commission not later than 60 days after the commission specifies line 37 the allocation of electricity. The proposed procurement plan shall line 38 specify the date that the electrical corporation intends to resume line 39 procurement of electricity for its retail customers, consistent with line 40 its obligation to serve. After the commission’s adoption of a 97 — 6 — SB 612 194 line 1 procurement plan, the commission shall allow not less than 60 line 2 days before the electrical corporation resumes procurement line 3 pursuant to this section. line 4 (b)  An electrical corporation’s proposed procurement plan shall line 5 include, but not be limited to, all of the following: line 6 (1)  An assessment of the price risk associated with the electrical line 7 corporation’s portfolio, including any utility-retained generation, line 8 existing power purchase and exchange contracts, and proposed line 9 contracts or purchases under which an electrical corporation will line 10 procure electricity, electricity demand reductions, and line 11 electricity-related products and the remaining open position to be line 12 served by spot market transactions. line 13 (2)  A definition of each electricity product, electricity-related line 14 product, and procurement-related financial product, including line 15 support and justification for the product type and amount to be line 16 procured under the plan. line 17 (3)  The duration of the plan. line 18 (4)  The duration, timing, and range of quantities of each product line 19 to be procured. line 20 (5)  A competitive procurement process under which the line 21 electrical corporation may request bids for procurement-related line 22 services, including the format and criteria of that procurement line 23 process. line 24 (6)  An incentive mechanism, if any incentive mechanism is line 25 proposed, including the type of transactions to be covered by that line 26 mechanism, their respective procurement benchmarks, and other line 27 parameters needed to determine the sharing of risks and benefits. line 28 (7)  The upfront standards and criteria by which the acceptability line 29 and eligibility for rate recovery of a proposed procurement line 30 transaction will be known by the electrical corporation before line 31 execution of the transaction. This shall include an expedited line 32 approval process for the commission’s review of proposed contracts line 33 and subsequent approval or rejection of a contract. The electrical line 34 corporation shall propose alternative procurement choices in the line 35 event a contract is rejected. line 36 (8)  Procedures for updating the procurement plan. line 37 (9)  A showing that the procurement plan will achieve the line 38 following: line 39 (A)  The electrical corporation, in order to fulfill its unmet line 40 resource needs, shall procure resources from eligible renewable 97 SB 612 — 7 — 195 line 1 energy resources in an amount sufficient to meet its procurement line 2 requirements pursuant to the California Renewables Portfolio line 3 Standard Program (Article 16 (commencing with Section 399.11) line 4 of Chapter 2.3). line 5 (B)  The electrical corporation shall create or maintain a line 6 diversified procurement portfolio consisting of both short-term line 7 and long-term electricity and electricity-related and demand line 8 reduction products. line 9 (C)  (i)  The electrical corporation shall first meet its unmet line 10 resource needs through all available energy efficiency and demand line 11 reduction resources that are cost effective, reliable, and feasible. line 12 (ii)  In determining the availability of cost-effective, reliable, line 13 and feasible demand reduction resources, the commission shall line 14 consider the findings regarding technically and economically line 15 achievable demand reduction in the Demand Response Potential line 16 Study required pursuant to Commission Order D.14-12-024, to line 17 the extent those findings are not superseded by other demand line 18 reduction studies conducted by academic institutions or government line 19 agencies, and to the extent that any demand reduction is consistent line 20 with commission policy. line 21 (D)  (i)  The electrical corporation, in soliciting bids for new line 22 gas-fired generating units, shall actively seek bids for resources line 23 that are not gas-fired generating units located in communities that line 24 suffer from cumulative pollution burdens, including, but not limited line 25 to, high emission levels of toxic air contaminants, criteria air line 26 pollutants, and greenhouse gases. line 27 (ii)  In considering bids for, or negotiating contracts for, new line 28 gas-fired generating units, the electrical corporation shall provide line 29 greater preference to resources that are not gas-fired generating line 30 units located in communities that suffer from cumulative pollution line 31 burdens, including, but not limited to, high emission levels of toxic line 32 air contaminants, criteria air pollutants, and greenhouse gases. line 33 (iii)  This subparagraph does not apply to contracts signed by line 34 an electrical corporation and approved by the commission before line 35 January 1, 2017. line 36 (10)  The electrical corporation’s risk management policy, line 37 strategy, and practices, including specific measures of price line 38 stability. 97 — 8 — SB 612 196 line 1 (11)  A plan to achieve appropriate increases in diversity of line 2 ownership and diversity of fuel supply of nonutility electrical line 3 generation. line 4 (12)  A mechanism for recovery of reasonable administrative line 5 costs related to procurement in the generation component of rates. line 6 (c)  The commission shall review and accept, modify, or reject line 7 each electrical corporation’s procurement plan and any amendments line 8 or updates to the plan. The commission shall ensure that the plan line 9 contains the elements required by this section, including the line 10 elements described in subparagraphs (C) and (D) of paragraph (9) line 11 of subdivision (b). The commission’s review shall consider each line 12 electrical corporation’s individual procurement situation, and shall line 13 give strong consideration to that situation in determining which line 14 one or more of the features set forth in this subdivision shall apply line 15 to that electrical corporation. A procurement plan approved by the line 16 commission shall contain one or more of the following features, line 17 provided that the commission may not approve a feature or line 18 mechanism for an electrical corporation if it finds that the feature line 19 or mechanism would impair the restoration of an electrical line 20 corporation’s creditworthiness or would lead to a deterioration of line 21 an electrical corporation’s creditworthiness: line 22 (1)  A competitive procurement process under which the line 23 electrical corporation may request bids for procurement-related line 24 services. The commission shall specify the format of that line 25 procurement process, as well as criteria to ensure that the auction line 26 process is open and adequately subscribed. Any purchases made line 27 in compliance with the commission-authorized process shall be line 28 recovered in the generation component of rates. line 29 (2)  An incentive mechanism that establishes a procurement line 30 benchmark or benchmarks and authorizes the electrical corporation line 31 to procure from the market, subject to comparing the electrical line 32 corporation’s performance to the commission-authorized line 33 benchmark or benchmarks. The incentive mechanism shall be line 34 clear, achievable, and contain quantifiable objectives and standards. line 35 The incentive mechanism shall contain balanced risk and reward line 36 incentives that limit the risk and reward of an electrical corporation. line 37 (3)  Upfront achievable standards and criteria by which the line 38 acceptability and eligibility for rate recovery of a proposed line 39 procurement transaction will be known by the electrical corporation line 40 before the execution of the bilateral contract for the transaction. 97 SB 612 — 9 — 197 line 1 The commission shall provide for expedited review and either line 2 approve or reject the individual contracts submitted by the electrical line 3 corporation to ensure compliance with its procurement plan. To line 4 the extent the commission rejects a proposed contract pursuant to line 5 this criteria, the commission shall designate alternative procurement line 6 choices obtained in the procurement plan that will be recoverable line 7 for ratemaking purposes. line 8 (d)  A procurement plan approved by the commission shall line 9 accomplish each of the following objectives: line 10 (1)  Enable the electrical corporation to fulfill its obligation to line 11 serve its customers at just and reasonable rates. line 12 (2)  Eliminate the need for after-the-fact reasonableness reviews line 13 of an electrical corporation’s actions in compliance with an line 14 approved procurement plan, including resulting electricity line 15 procurement contracts, practices, and related expenses. However, line 16 the commission may establish a regulatory process to verify and line 17 ensure that each contract was administered in accordance with the line 18 terms of the contract, and contract disputes that may arise are line 19 reasonably resolved. line 20 (3)  Ensure timely recovery of prospective procurement costs line 21 incurred pursuant to an approved procurement plan. The line 22 commission shall establish rates based on forecasts of procurement line 23 costs adopted by the commission, actual procurement costs line 24 incurred, or a combination thereof, as determined by the line 25 commission. The commission shall establish power procurement line 26 balancing accounts to track the differences between recorded line 27 revenues and costs incurred pursuant to an approved procurement line 28 plan. The commission shall review the power procurement line 29 balancing accounts, not less than semiannually, and shall adjust line 30 rates or order refunds, as necessary, to promptly amortize a line 31 balancing account, according to a schedule determined by the line 32 commission. Until January 1, 2006, the commission shall ensure line 33 that any overcollection or undercollection in the power procurement line 34 balancing account does not exceed 5 percent of the electrical line 35 corporation’s actual recorded generation revenues for the prior line 36 calendar year excluding revenues collected for the Department of line 37 Water Resources. The commission shall determine the schedule line 38 for amortizing the overcollection or undercollection in the line 39 balancing account to ensure that the 5-percent threshold is not line 40 exceeded. After January 1, 2006, this adjustment shall occur when 97 — 10 — SB 612 198 line 1 deemed appropriate by the commission consistent with the line 2 objectives of this section. line 3 (4)  Moderate the price risk associated with serving its retail line 4 customers, including the price risk embedded in its long-term line 5 supply contracts, by authorizing an electrical corporation to enter line 6 into financial and other electricity-related product contracts. line 7 (5)  Provide for just and reasonable rates, with an appropriate line 8 balancing of price stability and price level in the electrical line 9 corporation’s procurement plan. line 10 (e)  The commission shall provide for the periodic review and line 11 prospective modification of an electrical corporation’s procurement line 12 plan. line 13 (f)  The commission may engage an independent consultant or line 14 advisory service to evaluate risk management and strategy. The line 15 reasonable cost of any consultant or advisory service is a line 16 reimbursable expense and eligible for funding pursuant to Section line 17 631. line 18 (g)  The commission shall adopt appropriate procedures to ensure line 19 the confidentiality of any market sensitive information submitted line 20 in an electrical corporation’s proposed procurement plan or line 21 resulting from or related to its approved procurement plan, line 22 including, but not limited to, proposed or executed power purchase line 23 agreements, data request responses, or consultant reports, or any line 24 combination of these, provided that the Public Advocate’s Office line 25 of the Public Utilities Commission and other consumer groups line 26 that are nonmarket participants shall be provided access to this line 27 information under confidentiality procedures authorized by the line 28 commission. line 29 (h)  Each electrical corporation with an approved plan shall line 30 conduct a request for offers from any party to an existing electricity line 31 purchase agreement, at that party’s full discretion, to modify the line 32 agreement to reduce the electrical corporation’s total procurement line 33 costs on a present value basis over the remaining life of the contract line 34 and that is recovered from both bundled and departing-load line 35 customers, as defined in Section 366.4. Each electrical corporation line 36 shall issue a request for offer on January 1, 2023, and by January line 37 1 of each odd-numbered year thereafter. The electrical corporation line 38 shall publicly report the results of the request for offers in its annual line 39 proceeding for review of contract administration pursuant to line 40 paragraph (2) of subdivision (d), identifying the total cost savings 97 SB 612 — 11 — 199 line 1 to customers, without disclosing competitively sensitive price line 2 information for individual contracts. The commission shall line 3 determine in its annual proceeding for review of contract line 4 administration pursuant to paragraph (2) of subdivision (d) if the line 5 electrical corporation’s actions or inactions in response to the line 6 request for offers were reasonable and in the interest of bundled line 7 and departing load customers. line 8 (i)  This section does not alter, modify, or amend the line 9 commission’s oversight of affiliate transactions under its rules and line 10 decisions or the commission’s existing authority to investigate and line 11 penalize an electrical corporation’s alleged fraudulent activities, line 12 or to disallow costs incurred as a result of gross incompetence, line 13 fraud, abuse, or similar grounds. This section does not expand, line 14 modify, or limit the Energy Commission’s existing authority and line 15 responsibilities as set forth in Sections 25216, 25216.5, and 25323 line 16 of the Public Resources Code. line 17 (j)  An electrical corporation that serves less than 500,000 electric line 18 retail customers within the state may file with the commission a line 19 request for exemption from this section, which the commission line 20 shall grant upon a showing of good cause. line 21 (k)  (1)  Before its approval pursuant to Section 851 of any line 22 divestiture of generation assets owned by an electrical corporation line 23 on or after September 24, 2002, the commission shall determine line 24 the impact of the proposed divestiture on the electrical line 25 corporation’s procurement rates and shall approve a divestiture line 26 only to the extent it finds, taking into account the effect of the line 27 divestiture on procurement rates, that the divestiture is in the public line 28 interest and will result in net ratepayer benefits. line 29 (2)  Any electrical corporation’s procurement necessitated as a line 30 result of the divestiture of generation assets on or after September line 31 24, 2002, shall be subject to the mechanisms and procedures set line 32 forth in this section only if its actual cost is less than the recent line 33 historical cost of the divested generation assets. line 34 (3)  Notwithstanding paragraph (2), the commission may deem line 35 proposed procurement eligible to use the procedures in this section line 36 upon its approval of asset divestiture pursuant to Section 851. line 37 (l)  The commission shall direct electrical corporations to include line 38 in their proposed procurement plans the integration costs described line 39 and determined pursuant to clause (v) of subparagraph (A) of line 40 paragraph (5) of subdivision (a) of Section 399.13. 97 — 12 — SB 612 200 line 1 (m)  Before approving an electrical corporation’s contract for line 2 any new gas-fired generating unit, the commission shall require line 3 the electrical corporation to demonstrate compliance with its line 4 approved procurement plan. line 5 SEC. 3. line 6 SEC. 2. No reimbursement is required by this act pursuant to line 7 Section 6 of Article XIIIB of the California Constitution because line 8 the only costs that may be incurred by a local agency or school line 9 district will be incurred because this act creates a new crime or line 10 infraction, eliminates a crime or infraction, or changes the penalty line 11 for a crime or infraction, within the meaning of Section 17556 of line 12 the Government Code, or changes the definition of a crime within line 13 the meaning of Section 6 of Article XIIIB of the California line 14 Constitution. O 97 SB 612 — 13 — 201 AMENDED IN SENATE APRIL 12, 2021 SENATE BILL No. 555 Introduced by Senator McGuire February 18, 2021 An act to add Part 1.65 (commencing with Section 7279.61) to Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor. legislative counsel’s digest SB 555, as amended, McGuire. Local agencies: transient occupancy taxes: online short-term rental facilitator: collection. Existing law authorizes a city, county, or city and county to impose taxes within its jurisdiction, as provided, including a transient occupancy tax, which is generally paid by a person for the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging for a period of less than 30 days. This bill would authorize a local agency, defined to mean a city, county, or city and county, including a charter city, county, or city and county, to enact an ordinance exclusively delegating its authority to collect any transient occupancy tax imposed by that local agency on short-term rentals to the California Department of Tax and Fee Administration and to enter into a contract with the department for purposes of registration, rate posting, collection, and transmission of revenues necessary to collect and administer any transient occupancy tax imposed on a short-term rental as specified in this bill. This bill would define a short-term rental to mean the occupancy of a home, house, a room in a home or house, or other lodging that is not a hotel or motel in this state for a period of 30 days or less and under any other circumstances specified by the local agency in its ordinance that is 98 202 facilitated by an online a short-term rental facilitator, as defined. This bill would require the department to perform those functions, as specified, and would require all local charges collected by the department to be deposited in the Local Charges for Short-term Rentals Fund, which would be created by the bill in the State Treasury. This bill would continuously appropriate all amounts in the fund to the department and would require the department to transmit the funds to the local agencies periodically as promptly as feasible, as provided. This bill would require an online a short-term rental facilitator engaged in business in this state to be responsible for collecting from the purchaser any local charge imposed on a short-term rental by any local agency exclusively delegating its authority to the department pursuant to this bill to collect those charges and would require the online short-term rental facilitator to register with the department. The bill would require the department to administer and collect the local charges pursuant to the Fee Collection Procedures Law. This bill would also make it a misdemeanor for any deputy, agent, clerk, or other officer or employee of the department, or any former officer or employee or other individual, who in the course of that individual’s employment or duty has or had access to returns, reports, or documents required to be filed under this bill, to disclose or make known in any manner information as to the amount of any local charges or any particulars, including the business affairs of a corporation, set forth or disclosed therein. By extending the application of the Fee Collection Procedures Law, the violation of which is a crime, and imposing a new crime, this bill would impose a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: yes. Fiscal committee: yes.​ State-mandated local program: yes.​ 98 — 2 — SB 555 203 The people of the State of California do enact as follows: line 1 SECTION 1. (a)  The Legislature finds and declares that line 2 occupancy taxes are local taxes, not state taxes, which are due line 3 and payable to local agencies, and support vital programs and line 4 services provided by California’s cities and counties. line 5 (b)  The Legislature encourages short-term rental facilitators line 6 to ensure the full and prompt collection and remission directly to line 7 local agencies of all due and payable occupancy taxes derived line 8 from their facilitation of the occupancy of short-term rentals, line 9 including by entering into voluntary agreements with cities and line 10 counties to ensure that any occupancy taxes due and payable to a line 11 city or county are timely paid in full or continuing existing line 12 agreements previously entered into with a local agency for these line 13 purposes. line 14 SECTION 1. line 15 SEC. 2. Part 1.65 (commencing with Section 7279.61) is added line 16 to Division 2 of the Revenue and Taxation Code, to read: line 17 line 18 PART 1.65. FAIR AND EFFECTIVE COLLECTION OF DUE line 19 AND PAYABLE TRANSIENT OCCUPANCY TAXES line 20 DERIVED FROM SHORT-TERM RENTALS ARRANGED BY line 21 ONLINE SHORT-TERM RENTAL FACILITATORS ACT OF line 22 2021 line 23 line 24 7279.61. This part shall be known, and may be cited, as the line 25 “Fair and Effective Collection of Due and Payable Transient line 26 Occupancy Taxes Derived from Short-term Rentals Arranged by line 27 Online Short-term Rental Facilitators Act of 2021.” line 28 7279.62. All of the following definitions shall apply for line 29 purposes of this part: line 30 (a)  “Department” means the California Department of Tax and line 31 Fee Administration. line 32 (b)  “Local agency” means a city, county, or city and county, line 33 which includes a charter city, county, or city and county. line 34 (c)  “Local charge” means a transient occupancy tax imposed line 35 by a local agency on the privilege of occupying a home, house, a line 36 room in a home or house, or other lodging that is not a hotel or line 37 motel in this state for period of 30 days or less and under any other line 38 circumstances specified by the local agency in its ordinance. 98 SB 555 — 3 — 204 line 1 (d)  “Online short-term rental facilitator” means a person who line 2 facilitates for consideration, regardless of whether it is deducted line 3 as fees from the transaction, the rental of a home, house, a room line 4 in a home or house, or other lodging that is not a hotel or motel line 5 that is not owned by the person facilitating the rental, through an line 6 online marketplace operated by the person or a related person, and line 7 who does both of the following: line 8 (1)  Directly or indirectly, through one or more related persons, line 9 engages in any of the following: line 10 (A)  Transmits or otherwise communicates the offer or line 11 acceptance between the purchaser and the operator. line 12 (B)  Owns or operates the infrastructure, electronic or physical, line 13 or technology that brings purchasers and operators together. line 14 (C)  Provides a virtual currency that purchasers are allowed or line 15 required to use to rent a lodging from the operator. line 16 (D)  Software development or research and development line 17 activities related to any of the activities described in paragraph line 18 (2), if such activities are directly related to facilitating short-term line 19 rentals. line 20 (2)  Directly or indirectly, through one or more related persons, line 21 engages in any of the following activities with respect to facilitating line 22 short-term rentals: line 23 (A)  Payment processing services. line 24 (B)  Listing homes, houses, or rooms in homes or houses, or line 25 other lodgings that are not a hotel or motel, and that is not owned line 26 by that person or a related person, for rental on a short-term basis. line 27 (C)  Setting prices. line 28 (D)  Branding short-term rentals as those of the online short-term line 29 rental facilitator. line 30 (E)  Order taking. line 31 (e) line 32 (d)  “Ordinance” refers to an ordinance of a local agency line 33 imposing a local charge, including any local enactment relating to line 34 the filing of a refund or a claim arising under the ordinance. line 35 “Ordinance” also refers to an ordinance of a local agency line 36 exclusively delegating the collection of transient occupancy taxes line 37 imposed on short-term rentals within its jurisdiction to the line 38 department. line 39 (f) 98 — 4 — SB 555 205 line 1 (e)  “Purchaser” means a person who uses an online a short-term line 2 rental facilitator to facilitate the occupation of a short-term rental line 3 in this state. line 4 (g) line 5 (f)  “Short-term rental” means the occupancy of a home, house, line 6 a room in a home or house, or other lodging that is not a hotel or line 7 motel in this state for a period of 30 days or less and under any line 8 other circumstances specified by the local agency in its ordinance line 9 that is facilitated by an online a short-term rental facilitator. line 10 (g)  “Short-term rental facilitator” means a person that line 11 facilitates for consideration, regardless of whether it is deducted line 12 as fees from the transaction, the rental of a home, house, a room line 13 in a home or house, or other lodging that is not a hotel or motel line 14 that is not owned by the person facilitating the rental, through a line 15 marketplace operated by the person or a related person, and that line 16 does both of the following: line 17 (1)  Directly or indirectly, through one or more related persons, line 18 engages in any of the following: line 19 (A)  Transmits or otherwise communicates the offer or line 20 acceptance between the purchaser and the operator. line 21 (B)  Owns or operates the infrastructure, electronic or physical, line 22 or technology that brings purchasers and operators together. line 23 (C)  Provides a virtual currency that purchasers are allowed or line 24 required to use to rent a lodging from the operator. line 25 (D)  Software development or research and development line 26 activities related to any of the activities described in paragraph line 27 (2), if such activities are directly related to facilitating short-term line 28 rentals. line 29 (2)  Directly or indirectly, through one or more related persons, line 30 engages in any of the following activities with respect to facilitating line 31 short-term rentals: line 32 (A)  Payment processing services. line 33 (B)  Listing homes, houses, or rooms in homes or houses, or line 34 other lodgings that are not a hotel or motel, and that are not owned line 35 by that person or a related person, for rental on a short-term basis. line 36 (C)  Setting prices. line 37 (D)  Branding short-term rentals as those of the short-term rental line 38 facilitator. line 39 (E)  Taking orders or reservations. 98 SB 555 — 5 — 206 line 1 7279.64. For purposes of this part, a person is related to another line 2 person if both persons are related to each other pursuant to Section line 3 267(b) of Title 26 of the United States Code, as that section was line 4 amended by Public Law 114-113, and the regulations thereunder. line 5 7279.66. (a)  (1)  On or after July 1, 2022, a local charge line 6 imposed by a local agency on a short-term rental shall be collected line 7 from the purchaser by an online a short-term rental facilitator line 8 pursuant to Section 7279.70 7279.70, and the department shall line 9 perform all functions incident to the collection and administration line 10 of that local charge pursuant to Section 7279.68 if the local agency line 11 does all both of the following: line 12 (A)  Enacts an ordinance exclusively delegating its authority to line 13 collect local charges imposed by that local agency on short-term line 14 rentals to the department. The ordinance must shall contain the line 15 effective date of the delegation, which must correspond with the line 16 date that commences a calendar quarter, and be at least six months line 17 from the date the local agency enacts the ordinance. line 18 (B)  Enters into a contract with the department for purposes of line 19 registration, rate posting, collection, and transmission of revenues line 20 necessary to collect and administer the local charges of a local line 21 agency imposed on a short-term rental as specified in Section line 22 7279.68. In the contract, the local agency shall certify to the line 23 department that its ordinance applies its local charge on short-term line 24 rentals, the applicable transient occupancy tax rate for short-term line 25 rentals, any other information the department deems necessary to line 26 implement this part, and that the local agency agrees to indemnify, line 27 and hold and save harmless, the department, its officers, agents, line 28 and employees for any and all liability for damages that may result line 29 from collection pursuant to the contract. line 30 (2)  In the event that If a local agency adopts a new local charge line 31 that is imposed on short-term rentals on or after the effective date line 32 of this part, the local agency can enact an ordinance exclusively line 33 delegating the collection of its transient occupancy taxes imposed line 34 on short-term rentals to the department and enter into a contract line 35 with the department to perform the functions set forth in this part, line 36 on or before December 1 of each year, with collection of the local line 37 charge to commence April 1 of the next calendar year. In the line 38 contract, the local agency shall certify to the department that its line 39 ordinance applies its local charge on short-term rentals, the line 40 applicable transient occupancy tax rate for short-term rentals, any 98 — 6 — SB 555 207 line 1 other information the department deems necessary to implement line 2 this part, and that the local agency agrees to indemnify, and hold line 3 and save harmless, the department, its officers, agents, and line 4 employees for any and all liability for damages that may result line 5 from collection pursuant to the contract. line 6 (3)  In the event that If a local agency increases its local charge line 7 after the effective date of this part, the local agency shall provide line 8 the department with written notice of the increased local charge line 9 on or before December 1, with collection of the local charge to line 10 commence April 1 of the next calendar year. line 11 (4)  In the event that If a local agency reduces or eliminates a line 12 local charge imposed on short-term rentals, the local agency shall line 13 provide the department with written notice within 30 days of the line 14 reduction or elimination. The reduction or elimination shall become line 15 operative on the first day of the calendar quarter commencing more line 16 than 60 days from the date the local agency notifies the department line 17 that it no longer imposes a local charge or that the rate of its local line 18 charge has been reduced. line 19 (5)  If a local agency enters into a contract with the department line 20 pursuant to paragraph (2), provides the department with written line 21 notice of an increased local charge pursuant to paragraph (3), or line 22 provides the department with written notice of a reduction or line 23 elimination pursuant to paragraph (4), the department shall line 24 provide short-term rental facilitators with written notice within line 25 30 days of that event. line 26 (b)  Notwithstanding any other law, the authority of a local line 27 agency to collect a local charge imposed on a short-term rental is line 28 suspended as of the effective date specified in its ordinance line 29 described in paragraph (1) of subdivision (a). line 30 (c)  (1)  A local agency may enact an ordinance terminating the line 31 delegation of authority to the department pursuant to paragraph line 32 (1) of subdivision (a), so long as the effective date of the line 33 termination of the delegation corresponds with the date that line 34 commences a calendar quarter, and is at least six months from the line 35 date the local agency enacts the ordinance terminating the line 36 delegation. line 37 (2)  The department shall provide notice of a termination line 38 pursuant to this subdivision to the short-term rental facilitators line 39 within 30 days of the local agency terminating the delegation of line 40 authority to the department. 98 SB 555 — 7 — 208 line 1 7279.68. (a)  If delegated the authority pursuant to an ordinance line 2 described in Section 7279.66, the department shall perform the line 3 registration, rate posting, collection, and transmission of revenues line 4 necessary to collect and administer local charges, subject to the line 5 limitations set forth in subdivision (f). line 6 (b)  All local charges collected by the department shall be line 7 deposited in the Local Charges for Short-term Rentals Fund, which line 8 is hereby created in the State Treasury, and shall be held in trust line 9 for the local agency, and shall not be used for any other purpose. line 10 Local charges shall consist of all taxes, charges, interest, penalties, line 11 and other amounts collected and paid to the department resulting line 12 from the imposition of the transient occupancy tax, less payments line 13 for refunds and reimbursement to the department for expenses line 14 incurred in the administration and collection of the local charges. line 15 Notwithstanding Section 13340 of the Government Code, all line 16 amounts in the Local Charges for Short-term Rentals Fund are line 17 continuously appropriated to the department. The department shall line 18 transmit the funds to the local agencies periodically as promptly line 19 as feasible, but shall be made at least once in each calendar quarter. line 20 The department shall furnish a quarterly statement indicating the line 21 amounts paid and withheld for expenses of the department. line 22 (c)  The department shall prescribe and adopt rules and line 23 regulations as may be necessary or desirable for the administration line 24 and collection of local charges and the distribution of the local line 25 charges collected. line 26 (d)  The department’s audit duties under this part shall be limited line 27 to verification that the online short-term rental facilitator complied line 28 with this part. line 29 (e)  (1)  The department shall make available to a requesting line 30 local agency any information that is reasonably available to the line 31 department regarding the proper collection and remittance of a line 32 local charge of the local agency by an online a short-term rental line 33 facilitator. line 34 (2)  Except as otherwise provided in paragraph (1) and as line 35 required to administer this part, it is a misdemeanor punishable by line 36 a fine not exceeding one thousand dollars ($1,000), by line 37 imprisonment in a county jail not exceeding one year, or by both, line 38 in the discretion of the court, for any deputy, agent, clerk, or other line 39 officer or employee of the department, or any former officer or line 40 employee or other individual, who in the course of that individual’s 98 — 8 — SB 555 209 line 1 employment or duty has or had access to returns, reports, or line 2 documents required to be filed under this part, to disclose or make line 3 known in any manner information as to the amount of any local line 4 charges or any particulars, including the business affairs of a line 5 corporation, set forth or disclosed therein. line 6 (3)  Any information subject to paragraph (1) is exempted from line 7 any requirement of public disclosure by the department pursuant line 8 to subdivisions (i) and (k) of Section 6254 of the Government line 9 Code. line 10 (f)  The local agency that has adopted an ordinance to impose a line 11 local charge that applies to short-term rentals and exclusively line 12 delegates the authority to the department shall be solely responsible line 13 for: line 14 (1)  Defending any claim regarding the validity of the ordinance line 15 in its application to short-term rentals. line 16 (2)  Interpreting any provision of the ordinance, except to the line 17 extent specifically superseded by this statute. line 18 (3)  Responding to any claim for refund by a purchaser arising line 19 under local charges collected pursuant to an ordinance described line 20 in Section 7279.66. The claim shall be processed in accordance line 21 with the provisions of the local enactment that allows the claim to line 22 be filed. line 23 (4)  Certifying that the ordinance of the local agency applies the line 24 local charge to short-term rentals and agreeing to indemnify and line 25 hold harmless the department and its officers, agents, and line 26 employees for any and all liability for damages that may result line 27 from collection of the local charge. line 28 (5)  Reallocation of local charges as a result of correcting errors line 29 relating to the location of the short-term rental, for up to two past line 30 quarters from the date of knowledge. line 31 (g)  In connection with any actions or claims relating to or arising line 32 from the invalidity of a local tax ordinance, in whole or in part, line 33 the online short-term rental facilitator shall not be liable to any line 34 consumer as a consequence of collecting the tax. In the event a line 35 local agency is ordered to refund the tax, it shall be the sole line 36 responsibility of the local agency to refund the tax. In any action line 37 seeking to enjoin collection of a local charge by an online a line 38 short-term rental facilitator, in any action seeking declaratory relief line 39 concerning a local charge, in any action seeking a refund of a local line 40 charge, or in any action seeking to otherwise invalidate a local 98 SB 555 — 9 — 210 line 1 charge, the sole necessary party defendant in the action shall be line 2 the local agency on whose behalf the department collects the line 3 charge. There shall be no recovery from the state for the imposition line 4 of any unconstitutional or otherwise invalid local charge that is line 5 collected pursuant to this part. line 6 (h)  For purposes of this section: line 7 (1)  “Quarterly local charges” means the total amount of local line 8 charges transmitted by the department to a local agency for a line 9 calendar quarter. line 10 (2)  “Refund” means the amount of local charges deducted by line 11 the department from a local agency’s quarterly local charges in line 12 order to pay the local agency’s share of a local charge refund due line 13 to one taxpayer. line 14 (3)  “Offset portion” means that portion of the refund which line 15 exceeds the greater of fifty thousand dollars ($50,000) or 20 percent line 16 of the local agency’s quarterly local charges. line 17 (i)  Except as provided in subdivision (j), if the department has line 18 deducted a refund from a local agency’s quarterly local charges line 19 that includes an offset portion, then the following provisions apply: line 20 (1)  Within three months after the department has deducted an line 21 offset portion, the local agency may request the department to line 22 transmit the offset portion to the local agency. line 23 (2)  As promptly as feasible after the department receives the line 24 local agency’s request, the department shall transmit to the local line 25 agency the offset portion as part of the department’s periodic line 26 transmittal of local charges. line 27 (3)  The department shall thereafter deduct a pro rata share of line 28 the offset portion from future transmittals of local charges to the line 29 local agency over a period to be determined by the department, line 30 but not less than two calendar quarters and not more than eight line 31 calendar quarters, until the entire amount of the offset portion has line 32 been deducted. line 33 (j)  The department shall not transmit the offset portion of the line 34 refund to the local agency if that transmittal would reduce or delay line 35 either the department’s payment of the refund to the taxpayer or line 36 the department’s periodic transmittals of local charges to other line 37 local agencies. line 38 (k)  A local agency shall pay to the department its pro rata share line 39 of the department’s cost of collection and administration. 98 — 10 — SB 555 211 line 1 (l)  The department shall annually prepare a report showing the line 2 amount of both reimbursed and unreimbursed costs incurred by it line 3 in administering the collection of local charges pursuant to this line 4 part. line 5 7279.70. (a)  (1)  An online A short-term rental facilitator line 6 engaged in business in this state shall be responsible for collecting line 7 from the purchaser any local charge imposed on a short-term rental line 8 by any local agency exclusively delegating its authority to the line 9 department pursuant to Section 7279.66 to collect those charges. line 10 The online short-term rental facilitator shall remit those local line 11 charges collected to the department. The responsibility for the line 12 charge is not extinguished until it has been paid to this state. line 13 (2)  All amounts collected by the online short-term rental line 14 facilitator pursuant to this section is are due and payable to the line 15 department on or before the last day of the month following each line 16 calendar quarter. On or before the last day of the month following line 17 each quarterly period, a return for the preceding quarterly period line 18 shall be filed with the department by each online short-term rental line 19 facilitator using electronic media. Returns shall be authenticated line 20 in a form or pursuant to methods as may be prescribed by the line 21 department. line 22 (b)  The department shall administer and collect the local charges line 23 exclusively delegated by a local agency under this part pursuant line 24 to the Fee Collection Procedures Law (Part 30 (commencing with line 25 Section 55001)). For purposes of this part, the references in the line 26 Fee Collection Procedures Law to “fee” shall include local charges line 27 delegated by a local agency to be collected by the department line 28 pursuant to this part, and references to “feepayer” shall include line 29 any online short-term rental facilitator required to collect and remit line 30 local charges exclusively delegated by a local agency to be line 31 collected by the department pursuant to this part. line 32 (c)  The department shall publish and maintain a list of local line 33 agencies delegating its authority to collect local charges on line 34 short-term rentals on its internet website, including the rate. The line 35 list shall also include any other information determined to be line 36 relevant to the department for the proper collection of the local line 37 charges, including, but not limited to, the duration period of the line 38 short-term rental, or any other circumstances specified by the local line 39 agency applicable in those jurisdictions for determining whether line 40 any local charge is due for the occupancy of a short-term rental. 98 SB 555 — 11 — 212 line 1 (d)  (1)  The department may prescribe, adopt, and enforce line 2 regulations relating to the administration and enforcement of this line 3 part, including, but not limited to, collections, reporting, refunds, line 4 and appeals. line 5 (2)  The department may prescribe, adopt, and enforce any line 6 emergency regulations as necessary to implement this part. Any line 7 emergency regulation prescribed, adopted, or enforced pursuant line 8 to this section shall be adopted in accordance with Chapter 3.5 line 9 (commencing with Section 11340) of Part 1 of Division 3 of Title line 10 2 of the Government Code, and, for purposes of that chapter, line 11 including Section 11349.6 of the Government Code, the adoption line 12 of the regulation is an emergency and shall be considered by the line 13 Office of Administrative Law as necessary for the immediate line 14 preservation of the public peace, health and safety, and general line 15 welfare. line 16 7279.72. An online A short-term rental facilitator that is subject line 17 to a local agency ordinance that delegates authority for collection line 18 of a local charge to the department pursuant to Section 7279.66 is line 19 required to register with the department. Every application for line 20 registration shall be made upon a form prescribed by the line 21 department and shall set forth the name under which the applicant line 22 transacts or intends to transact business, the location of its place line 23 or places of business, and such other information as the department line 24 may require. An application for registration shall be authenticated line 25 in a form or pursuant to methods as may be prescribed by the line 26 department. line 27 SEC. 3. The Legislature finds and declares that Section 2 of line 28 this act, which adds Section 7279.68 to the Revenue and Taxation line 29 Code, imposes a limitation on the public’s right of access to the line 30 meetings of public bodies or the writings of public officials and line 31 agencies within the meaning of Section 3 of Article I of the line 32 California Constitution. Pursuant to that constitutional provision, line 33 the Legislature makes the following findings to demonstrate the line 34 interest protected by this limitation and the need for protecting line 35 that interest: line 36 In order to comply with existing law and to prevent unfair line 37 competitive disadvantages, it is necessary for information provided line 38 to local agencies by the California Department of Tax and Fee line 39 Administration pursuant to Section 2 of this act to remain line 40 confidential. 98 — 12 — SB 555 213 line 1 SEC. 2. line 2 SEC. 4. No reimbursement is required by this act pursuant to line 3 Section 6 of Article XIIIB of the California Constitution because line 4 the only costs that may be incurred by a local agency or school line 5 district will be incurred because this act creates a new crime or line 6 infraction, eliminates a crime or infraction, or changes the penalty line 7 for a crime or infraction, within the meaning of Section 17556 of line 8 the Government Code, or changes the definition of a crime within line 9 the meaning of Section 6 of Article XIIIB of the California line 10 Constitution. O 98 SB 555 — 13 — 214 AMENDED IN SENATE APRIL 27, 2021 AMENDED IN SENATE APRIL 12, 2021 AMENDED IN SENATE MARCH 16, 2021 SENATE BILL No. 556 Introduced by Senator Dodd February 18, 2021 An act to add Division 2.6 (commencing with Section 5980) to the Public Utilities Code, relating to communications. legislative counsel’s digest SB 556, as amended, Dodd. Street light poles, traffic signal poles: small wireless facilities attachments. Existing law requires a local publicly owned electric utility to make appropriate space and capacity on and in their its utility poles, as defined, and support structures available for use by cable television corporations, video service providers, and telephone corporations. Existing law requires fees adopted to cover the costs to provide this use, and terms and conditions of access, to meet specified requirements, and specifies the manner in which these fees and terms and conditions of access could be challenged. This bill would prohibit a local government or local publicly owned electric utility from unreasonably denying the leasing or licensing of its street light poles or traffic signal poles to communications service providers for the purpose of placing small wireless facilities on those poles. The bill would require that street light poles and traffic signal poles be made available for the placement of small wireless facilities under fair, reasonable, and nondiscriminatory fees, subject to specified requirements, consistent with a specified decision of the Federal 96 215 Communications Commission. fees. The bill would specify time periods for various actions relative to requests for placement of a small wireless facility by a communications service provider on a street light pole or traffic signal pole. The bill would authorize a local publicly owned electric utility or local government to deny an application for use of a street light pole or traffic signal pole, as applicable, because of insufficient capacity or safety, reliability, or engineering concerns subject to certain conditions. By placing additional requirements upon local publicly owned electric utilities and local governments, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. (a)  This act shall be known, and may be cited line 2 as, cited, as the California Connectivity Act. line 3 (b)  The Legislature finds and declares all of the following: line 4 (1)  Communities across California face a multitude of barriers line 5 to the deployment of resilient and accessible broadband networks. line 6 Broadband internet access service in urban communities varies by line 7 neighborhood, with great discrepancies in infrastructure line 8 technology. Communities in rural areas often lack sufficient line 9 broadband internet access service, as well as the backhaul line 10 infrastructure, to provide broadband services. line 11 (2)  The COVID-19 pandemic has highlighted the extent to which line 12 broadband access is essential for education, telehealth, remote line 13 working, public safety, public health and welfare, and economic line 14 resilience. The pandemic adds greater urgency to develop new line 15 strategies and expand on existing successful measures to deploy line 16 reliable networks. Connection to the internet at reliable speeds is line 17 also crucial to California’s economic recovery from the impact of line 18 COVID-19. Millions of children are attending classes remotely, line 19 telehealth visits have skyrocketed, and many more Californians line 20 are telecommuting from their places of residence. Additionally, 96 — 2 — SB 556 216 line 1 with unprecedented growth in unemployment caused by COVID-19 line 2 and the need to participate in all aspects of society from home, the line 3 demand for reliable broadband internet access service has line 4 significantly increased as millions of additional Californians need line 5 access to successfully weather the pandemic and to recover. line 6 (3)  Wireless broadband internet access is critical to distance line 7 learning. Just as important, wireless broadband internet access is line 8 needed to address the digital divide. In 2017, for example, 73 line 9 percent of households accessed the internet using a cellular line 10 telephone. The Federal Communications Commission reports that line 11 nearly 70 percent of teachers assign homework that requires line 12 broadband access. Although California has made progress closing line 13 the digital divide at schools, internet access at home is still a line 14 challenge. Almost 16 percent of schoolage children, about 945,000, line 15 had no internet connection at home in 2017 and 27 percent, about line 16 1.7 million, did not have broadband connections. Access varies line 17 significantly by family income, parental education, race or line 18 ethnicity, and geography. For example, 22 percent of low-income line 19 households with schoolage children did not have any internet line 20 connection at home and 48 percent reported no broadband line 21 subscription at home. line 22 (4)  Over 2,000,000 Californians lack access to high-speed line 23 broadband at benchmark speeds of 100 megabits per second line 24 download, including 50 percent of rural housing units. More than line 25 14,000,000 Californians, over one-third of the population, do not line 26 subscribe to broadband at the minimum benchmark speed to line 27 support distance learning and technologies that depend on upload line 28 speed. Only 34 percent of adults over 60 years of age use the line 29 internet, excluding older adults from access to telemedicine, social line 30 services, and other support. line 31 (5)  The Centers for Medicare and Medicaid Services define line 32 telehealth as “a two-way, real-time interactive communication line 33 between a patient and a physician or practitioner at a distant site line 34 through telecommunications equipment that includes, at a line 35 minimum, audio and visual equipment.” Telemedicine encompasses line 36 a growing number of applications and technologies, including line 37 two-way live or streaming video, videoconferencing, line 38 store-and-forward imaging along with the internet, email, line 39 smartphones, wireless tools, and other forms of line 40 telecommunications. These technologies facilitate and leverage 96 SB 556 — 3 — 217 line 1 the latest innovations in computer, network, and peripheral line 2 equipment to promote the health of patients around the world. line 3 Critical to its success is reliable broadband internet access. line 4 (6)  Telehealth technology permits health care services to be line 5 delivered without in-person contact, reducing the risk of disease line 6 transmission to both patients and health care workers, and frees line 7 up in-person resources for COVID-19 patients. Telehealth allows line 8 patients to receive health services away from settings where the line 9 potential for contracting COVID-19 is high, such as hospitals, line 10 health clinic waiting rooms, private practices, and other medical line 11 facilities. Telehealth can also expand the reach of resources to line 12 communities that have limited access to needed services. line 13 (7)  Due to widespread restrictions, and with fewer elective line 14 procedures occurring in California and around the country to line 15 reserve beds for COVID-19 patients, the telehealth share of total line 16 medical claim lines, which is the individual service or procedure line 17 listed on an insurance claim, increased 8,336 percent nationally line 18 from April 2019, to April 2020. Similar percentage increases have line 19 occurred in California. line 20 (8)  Millions of Californians are working from home while line 21 sheltering in place. Even employers that had not previously line 22 permitted remote-work arrangements have changed their policies line 23 during the pandemic. The Department of General Services reports line 24 that 83.9 percent of state workers are working from home. Survey line 25 data indicates that nearly two-thirds of those who still had jobs line 26 during the pandemic were almost exclusively working from home. line 27 That compares with just 13 percent of workers who said they did line 28 so even a few times a week prior to the COVID-19 pandemic. line 29 Telework is expected to continue at rates much higher than before line 30 COVID-19 even after the pandemic is over. Among those workers line 31 surveyed who had previously not regularly worked from home, line 32 62 percent said they were enjoying the change, and 75 percent line 33 expect their employers to continue to provide flexibility in where line 34 they work after the pandemic has passed. Indeed, the State of line 35 California, one of California’s largest employers, has stated the line 36 desire for 75 percent of the state’s workforce to remain home, at line 37 least part time, for the foreseeable future. The Metropolitan line 38 Transportation Commission in the San Francisco Bay Area voted line 39 to adopt a strategy to have large, office-based companies require line 40 people to work from home three days a week as a way to slash 96 — 4 — SB 556 218 line 1 emissions of greenhouse gases from car commutes. Critical to the line 2 success of telework is reliable broadband internet access. line 3 (9)  The enormous increases in distance learning, telehealth, and line 4 telework require a significant boost in broadband infrastructure, line 5 especially near the homes where these activities take place. To line 6 promote wireless broadband internet access near homes, it is in line 7 the interest of the state to ensure the deployment of wireless line 8 facilities on street light poles and traffic signal poles. It is in the line 9 interest of the state to ensure that local publicly owned electric line 10 utilities and local governments that own or control traffic signal line 11 poles or street light poles make them available to communications line 12 service providers for the placement of small wireless facilities, line 13 under reasonable rates, terms, and conditions. line 14 (10)  The state has a compelling interest in ensuring that local line 15 publicly owned electric utilities and local governments provide line 16 access to traffic signal poles and street light poles, with line 17 nondiscriminatory fees that recover reasonable actual costs, line 18 consistent with applicable federal regulations barring localities line 19 from denying reasonable, nondiscriminatory access to their pole line 20 infrastructure for small wireless facility attachments at reasonable line 21 and cost-based rates. Therefore, it is the intent of the Legislature line 22 that this act supersedes all conflicting local laws and this act shall line 23 apply in charter cities. line 24 (11)  Time is of the essence to approve small wireless facility line 25 siting applications given the immediate need for broadband internet line 26 access, as amplified by the COVID-19 pandemic. line 27 (c)  It is the intent of the Legislature to facilitate the deployment line 28 of wireless broadband internet access and to bridge the digital line 29 divide by connecting students, families, and communities with line 30 reliable internet connectivity that will remain a necessity after the line 31 COVID-19 pandemic has abated. line 32 SEC. 2. Division 2.6 (commencing with Section 5980) is added line 33 to the Public Utilities Code, to read: line 34 line 35 DIVISION 2.6. CALIFORNIA CONNECTIVITY ACT line 36 line 37 5980. For purposes of this division, the following terms have line 38 the following meanings: line 39 (a)  “Annual costs of ownership” means the annual capital costs line 40 and annual operating costs of a street light pole or traffic signal 96 SB 556 — 5 — 219 line 1 pole, which shall be the average costs of all similar street light line 2 poles and traffic signal poles owned or controlled by the local line 3 government or publicly owned electric utility. The basis for the line 4 computation of annual capital costs shall be historical capital costs line 5 less depreciation. The accounting upon which the historical capital line 6 costs are determined shall include a credit for all reimbursed capital line 7 costs. Depreciation shall be based upon the average service life of line 8 the street light pole or traffic signal pole. Annual cost of ownership line 9 does not include costs for any property not necessary for use by line 10 the small wireless facility. line 11 (b)  “Communications service provider” means a cable television line 12 corporation, video service provider, or telephone corporation. line 13 (c)  “Governing body” means the governing body of a local line 14 government or local publicly owned electric utility, including, line 15 where applicable, a board appointed by a city council. line 16 (d)  “Local government” means a city, including a charter city, line 17 county, or city and county. line 18 (e)  “Small wireless facility” has the same definition as defined line 19 in subsection (l) of Section 1.6002 of Title 47 of the Code of line 20 Federal Regulations. line 21 (f)  “Street light pole” means a pole, arm, or fixture used line 22 primarily for street, pedestrian, or security lighting. line 23 (g)  “Traffic signal pole” means a pole, arm, or fixture used line 24 primarily for signaling traffic flow. line 25 (h)  “Usable space” means the space above the minimum grade line 26 that can be used for the attachment of antennas and associated line 27 ancillary equipment. line 28 5981. (a)  A local government or local publicly owned electric line 29 utility shall not unreasonably deny the leasing or licensing of its line 30 street light poles or traffic signal poles to communications service line 31 providers for the purpose of placing small wireless facilities. Street line 32 light poles and traffic signal poles shall be made available for the line 33 placement of small wireless facilities under fair, reasonable, and line 34 nondiscriminatory fees, subject to the requirements in Section line 35 5982. Access to street light poles or traffic signal poles may also line 36 be subject to other reasonable terms and conditions, which may line 37 include reasonable aesthetic and safety standards, consistent with line 38 the Federal Communications Commission’s Declaratory Ruling line 39 and Third Report and Order (September 26, 2018) FCC 18-133, line 40 In the Matter of Accelerating Wireline Broadband Deployment by 96 — 6 — SB 556 220 line 1 Removing Barriers to Infrastructure Investment, WT Docket No. line 2 17-79 and WC Docket No. 17-84. conditions. line 3 (b)  (1)  A local publicly owned electric utility or local line 4 government shall respond to a request for placement of a small line 5 wireless facility by a communications service provider on a street line 6 light pole or traffic signal pole, or multiple poles, owned or line 7 controlled by the local publicly owned electric utility or local line 8 government within 45 days of the date of receipt of the request, line 9 or within 60 days if the request is to attach to over 300 poles. If line 10 the request is denied, the local publicly owned electric utility or line 11 local government shall provide in the response the reason for the line 12 denial and the remedy to gain access to the street light poles or line 13 traffic signal poles. If a request to attach is accepted, the local line 14 publicly owned electric utility or local government, within 14 days line 15 after acceptance of the request, shall provide a cost estimate, based line 16 on actual cost, for any necessary make-ready work required to line 17 accommodate the small wireless facility. The requesting party line 18 shall accept or reject the make-ready cost estimate within 14 days. line 19 Within 60 days of acceptance of the cost estimate, the local publicly line 20 owned electric utility or local government shall notify any existing line 21 third-party attachers that make-ready work for a new attacher needs line 22 to be performed. The requesting party shall have the responsibility line 23 to coordinate with third-party existing attachers for make-ready line 24 work to be completed. All parties shall complete all make-ready line 25 work within 60 days of the notice, or within 105 days in the case line 26 of a request to attach to over 300 poles. The local publicly owned line 27 electric utility or local government may complete make-ready line 28 work without the consent of the existing attachers, if the existing line 29 attachers fail to move their attachments by the end of the line 30 make-ready timeline requirements specified in this paragraph. line 31 (2)  The timelines described in paragraph (1) may be extended line 32 under special circumstances upon agreement of the local publicly line 33 owned electric utility or local government and the communications line 34 service provider. line 35 (c)  Unless the communication service provider agrees to replace line 36 the street light pole or traffic signal pole, a line 37 (c)  (1)  A local publicly owned electric utility or local line 38 government may deny an application for use of a street light pole line 39 or traffic signal pole, as applicable, because of insufficient capacity 96 SB 556 — 7 — 221 line 1 or safety, reliability, or engineering concerns. In concerns, subject line 2 to both of the following conditions: line 3 (A)  The capacity, safety, and reliability concerns can be line 4 addressed through the replacement of the street light pole or traffic line 5 signal pole but the communication service provider is unable or line 6 unwilling to replace the pole or a replacement of the pole would line 7 not sufficiently mitigate the safety, engineering or capacity line 8 concerns. line 9 (B)  The local publicly owned electric utility or local government line 10 identifies the concerns, provides the communication service line 11 provider with an opportunity to remedy the concerns, and the line 12 communication service provider declines to adopt the remedies. line 13 (2)  In denying an application, a local publicly owned electric line 14 utility or local government may also take into account the manner line 15 in which a request from a communications service provider under line 16 this division could impact an approved project for future use by line 17 the local publicly owned electric utility or the local government line 18 of its street light poles or traffic signal poles for delivery of the line 19 core service related to a street light pole or traffic signal pole, as line 20 applicable. line 21 (d)  This division does not limit the authority of a local publicly line 22 owned electric utility or local government to ensure compliance line 23 with all applicable law in determining whether to approve or line 24 disapprove use of a street light pole or traffic signal pole, as line 25 applicable. line 26 5982. (a)  A local government or local publicly owned electric line 27 utility is entitled to fair and reasonable compensation that recovers line 28 a reasonable approximation of the direct and actual costs related line 29 to the communication service provider’s placement of small line 30 wireless facilities on street light poles or traffic signal poles, line 31 consistent with the Federal Communications Commission’s line 32 Declaratory Ruling and Third Report and Order (September 26, line 33 2018) FCC 18-133, In the Matter of Accelerating Wireline line 34 Broadband Deployment by Removing Barriers to Infrastructure line 35 Investment, WT Docket No. 17-79 and WC Docket No. 17-84. line 36 The compensation may include both of the following: line 37 (1)  The local government or local publicly owned electric utility line 38 may assess an annual attachment rate per pole that is a reasonable line 39 approximation of the direct and actual costs and does not exceed line 40 an amount resulting from both of the following requirements: 96 — 8 — SB 556 222 line 1 (A)  The local government or local publicly owned electric utility line 2 shall calculate the rate by multiplying the percentage of the total line 3 usable space that would be occupied by the small wireless facility line 4 attachment by the annual costs of ownership of the street light pole line 5 or traffic signal pole. line 6 (B)  The local government or local publicly owned electric utility line 7 shall not levy a rate that exceeds the estimated amount required line 8 to provide use of the street light pole or traffic signal pole for which line 9 the annual recurring rate is levied. If the rate creates revenues in line 10 excess of actual costs, the local government or local publicly owned line 11 electric utility shall use those revenues to reduce the rate. line 12 (2)  The local government or local publicly owned electric utility line 13 may assess a one-time reimbursement fee for actual costs incurred line 14 by the local government or publicly owned electric utility for line 15 rearrangements performed at the request of the communications line 16 service provider. line 17 (b)  A local publicly owned electric utility or local government line 18 establishes a rebuttable presumption that its attachment fees comply line 19 with subdivision (a) if the attachment fees are equal to or less than line 20 the presumptively reasonable attachment fee set forth in paragraph line 21 79(b) of the Federal Communications Commission’s Declaratory line 22 Ruling and Third Report and Order (September 26, 2018) FCC line 23 18-133, In the Matter of Accelerating Wireline Broadband line 24 Deployment by Removing Barriers to Infrastructure Investment, line 25 WT Docket No. 17-79 and WC Docket No. 17-84. This line 26 presumptively reasonable attachment fee shall be offered, and if line 27 accepted, applied for small wireless attachments by line 28 communications service providers pending the adoption of a rate line 29 pursuant to this section. line 30 (c)  Unless the communications service provider and local line 31 government otherwise agree, if existing contractual attachment line 32 rates exceed the presumptively reasonable attachment fee set forth line 33 in paragraph 79(b) of the Federal Communications Commission’s line 34 Declaratory Ruling and Third Report and Order (September 26, line 35 2018) FCC 18-133, In the Matter of Accelerating Wireline line 36 Broadband Deployment by Removing Barriers to Infrastructure line 37 Investment, WT Docket No. 17-79 and WC Docket No. 17-84, line 38 the rates, terms, and conditions that are specified in a contract line 39 executed before January 14, 2019, shall remain valid only for small line 40 wireless facilities already attached to a street light pole or traffic 96 SB 556 — 9 — 223 line 1 signal pole by a communications service provider before January line 2 1, 2022, and only until the contract, rate, term, or condition expires line 3 or is terminated according to its terms by one of the parties. line 4 5983. This division does not prohibit a local publicly owned line 5 electric utility or local government from requiring a one-time fee line 6 to process a request for attachment, if the one-time fee does not line 7 exceed the actual cost of processing the request. line 8 5984. This division does not prohibit a communications service line 9 provider and a local government from mutually agreeing to a rate, line 10 charge, term, or condition that is different from that provided in line 11 this division. Either party may withdraw from a negotiation for an line 12 agreement upon written notice to the other party. line 13 5985. If the communication service provider requests a line 14 rearrangement of a street light pole or traffic signal pole, owned line 15 and controlled by a local government or local publicly owned line 16 electric utility, the local government or local publicly owned line 17 electric utility may charge a one-time reimbursement fee for the line 18 actual costs incurred for the rearrangement. line 19 5986. A local publicly owned electric utility shall use the line 20 procedures established in Section 9516 for the adoption of the line 21 attachment fee described in subdivision (a) of Section 5982, except line 22 that the local publicly owned electric utility may avoid the line 23 procedure of Section 9516 by applying the provision of subdivision line 24 (b) of Section 5982. Any person or entity may follow the line 25 procedures of Section 9517 to protest the adoption of a fee adopted line 26 by a local publicly owned electric utility pursuant to Section 5982 line 27 and not adopted pursuant to subdivision (b) of that section. The line 28 procedures for judicial action or proceeding to attack, review, set line 29 aside, void, or annul a fee pursuant to Section 9518 and requests line 30 for audits of fees in Section 9519 apply to attachment fees adopted line 31 by a local publicly owned electric utility pursuant to Section 5982 line 32 and not adopted pursuant to subdivision (b) of that section. line 33 SEC. 3. No reimbursement is required by this act pursuant to line 34 Section 6 of Article XIIIB of the California Constitution because line 35 a local agency or school district has the authority to levy service line 36 charges, fees, or assessments sufficient to pay for the program or line 37 level of service mandated by this act, within the meaning of Section line 38 17556 of the Government Code. O 96 — 10 — SB 556 224 POLLUTION ACT FACT SHEET The Break Free From Plastic Pollution Act of 2021 (BFFPPA) introduced by Sen. Jeff Merkley (OR) and Rep. Alan Lowenthal (CA) builds on statewide laws across the country and outlines plastic reduction strategies to improve the health of our people and our planet. The bill will do this by: The BFFPPA aligns with other calls for government action on these vital issues. The Presidential Plastics Action Plan and the “Congressional Stimulus And Funding Recommendations” Report identify concurrent solutions the Biden- Harris Administration and Congress can take today to address the plastic pollution crisis. BREAKING FREE FROM PLASTIC WOULD PROTECT FRONTLINE AND FENCELINE COMMUNITIES. • Plastic production disproportionately affects communities of color, low-income communities and Indigenous communities by polluting the air, water, and soil. Halting plastic production would immediately relieve these impacts and allow for the needed evaluation of hazardous industrial processes. • Burying and burning plastic waste release various types of harmful emissions and greenhouse gases. These landfills and incinerators are often located in low- income communities and communities of color, where the people living and working in these communities feel the impacts most heavily. BREAKING FREE FROM PLASTIC WOULD IMPROVE OUR CLIMATE AND PROTECT THE ENVIRONMENT. • Plastic generates greenhouse gas (GHG) emissions at every step of its life cycle, from extraction to waste. • Plastic creates secondary emissions: For every disposable product thrown away, its replacement creates another carbon footprint. • Plastic is being converted back into fossil fuels for burning, which represents an entirely new climate threat marketed as so- called “chemical recycling or “advanced recycling.” BREAKING FREE FROM PLASTIC WOULD IMPROVE HUMAN HEALTH. • Plastic is toxic: 144 chemicals or chemical groups known to be hazardous to human health are actively used in our products. • Plastic is in our bodies: every week, we ingest an entire credit card worth of plastic (at least 74,000 microplastic particles every year) from the air we breathe, the water we drink, and the food we eat. Mandating filters on washing equipment can prevent microfiber pollution. BREAKING FREE FROM PLASTIC WOULD HELP THE ECONOMY AND CREATE JOBS. • Plastic is often cleaned up at the public’s expense. The BFFPPA would save local and municipal governments billions of dollars by shifting the cost of waste management to producers. • Moving toward true “full- cost accounting” provides a competitive advantage to businesses that are committed to appropriate policies. • Reuse and refill systems not only create more jobs, they create better jobs. Studies show that jobs in zero waste go beyond basic manual labor, provide higher wages, and offer more permanent positions. 1.34 gigatons #break free fromplastic Reducing plastic production before it ever has a chance to pollute. 1 2 3Increasing recycling rates.Protecting frontline and fenceline communities. The U.S. exports 225 shipping containers of plastic waste per day to countries in the Global South. Greenhouse gas emissions from plastic production will be the same as 295 coal-fired power plants by 2030. Zero Waste systems create over 200 times as many jobs as landfills and incinerators. Every week, we ingest an entire credit card’s worth of plastic. The presence of microplastics has been detected in maternal human placentas. 225 City of Huntington Beach File #:21-310 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Scott M. Haberle, Fire Chief Subject: Adopt Resolution No. 2021-27 to acknowledge receipt of a Fire Department report regarding the Annual Inspection of certain occupancies Statement of Issue: The Huntington Beach Fire Department is seeking City Council approval of the attached resolution acknowledging receipt of their report regarding the annual inspection of certain occupancies. This resolution will be submitted to the State of California in compliance with State Senate Bill 1205. Financial Impact: Not applicable. Recommended Action: Adopt Resolution No. 2021-27, “A Resolution of the City Council of the City of Huntington Beach Acknowledging Receipt of a Report by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in Such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code.” Alternative Action(s): Do not approve the resolution and direct staff accordingly. Analysis: California Health & Safety Code Sections 13146.2 and 13146.3 require all fire departments that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel motel, lodging house, apartment house, and certain residential care facilities. These inspections are performed to meet certain building standards. Section 13146.2 of the Code requires departments to report annually to its governing body on its conformance to these requirements. State Senate Bill 1205 requires that effective January 1, 2019, the governing body annually adopt a resolution or other formal document certifying that these City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™226 File #:21-310 MEETING DATE:5/3/2021 inspections were completed, and that this document be submitted to the State. During calendar year 2020, the Huntington Beach Fire Department completed annual inspections of all buildings referenced under Sections 13146.2 and 13146.3 of the California Health and Safety Code, which is outlined in the table below: Occupancy Type # in Jurisdiction # of Inspections R1s ("hotel, motel, lodging houses")23 23 R2s ("apartment houses")2,539 2,534 R2.1 ("supervised residential")5 5 R4s ("residential/assisted living")1 1 Es (“public and private schools”)38 38 A total of 2,601 occupancies were inspected in 2020, representing 100% of all required facilities. In conformance with Senate Bill 1205, staff recommends the adoption of the resolution shown as Attachment 1. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2021-27, “A Resolution of the City Council of the City of Huntington Beach Acknowledging Receipt of a Report by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in Such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code.” City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™227 228 229 230 231 232 233 City of Huntington Beach File #:21-318 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Sean Crumby, Director of Public Works Subject: Adopt Resolution No. 2021-30 authorizing an application for funds for the Environmental Cleanup, Tier 1 Grant Program under the Orange County Transportation Authority (OCTA) Environmental Cleanup Program Statement of Issue: Each year,the Orange County Transportation Authority (OCTA) offers grant funding opportunities aimed at reducing transportation generated pollution that can impact local waterways like Huntington Harbour, Bolsa Chica Wetlands,and the ocean. This Council action requests authorization to apply for grant funding under the OCTA Measure M2 Environmental Cleanup Program, Tier 1,to purchase and install a Trash Trap unit manufactured by StormTrap. Financial Impact: The City is requesting up to $500,000 from OCTA to fund the purchase and installation of a Trash Trap unit. The City will be responsible for 20% in local matching funds to be provided as a cash contribution. The projected estimate for is $900,000, and staff will return to the City Council at a future meeting with a request for appropriation of funds. Recommended Action: Adopt Resolution No. 2021-30, “A Resolution of the City Council of the City of Huntington Beach Authorizing an Application for Funds for the Environmental Cleanup, Tier 1 Grant Program Under Orange County Transportation Ordinance No. 3 for the Huntington Beach Trash Removal Project, Phase 1.” Alternative Action(s): Do not adopt the Resolution and direct staff accordingly. Analysis: The OCTA Measure M2 Environmental Cleanup Program (ECP), Tier 1,is designed to mitigate the more visible forms of pollution, such as litter and debris,which collects on the roadways and in the catch basins prior to being deposited in waterways and the ocean. The program enables eligible jurisdictions to purchase and install structural best management practices,such as screens, filters, City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™234 File #:21-318 MEETING DATE:5/3/2021 jurisdictions to purchase and install structural best management practices,such as screens, filters, and other “street scale” low flow diversion devices. A total of $2.8 million is available during this call for projects. These funds are meant to supplement existing water quality programs. In an effort to comply with recently adopted State Trash Provisions to limit trash and debris greater than 5 mm from entering water bodies, the City is requesting to apply for grant funding up to $500,000 from OCTA to purchase a CDS unit. This device is designed to separate trash and debris, sediment,and oil from urban runoff and storm water. The installation of a CDS unit will enable the City to reduce the amount of trash and debris reaching local recreational water bodies as well as comply with the requirements in the Trash Provisions. The location of the unit will be at McCallen Park, 2299 Delaware Street. A map with the drainage area that will be treated is attached. The installed unit will require quarterly maintenance by Public Works Utilities staff. Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Resolution No. 2021-30, “A Resolution of the City Council of the City of Huntington Beach Authorizing an Application for Funds for the Environmental Cleanup, Tier 1 Grant Program Under Orange County Transportation Ordinance No. 3 for the Huntington Beach Trash Removal Project, Phase 1.” 2. Location Map City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™235 236 237 Project Location Map McCallen Park Legend Drainage area treated (382 acres) Proposed Project Location Yorktown DelawareUtica 238 City of Huntington Beach File #:21-260 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Sean Crumby, Director of Public Works Subject: Approve and authorize execution of Amendment No. 1 to Memorandum of Understanding (MOU) with the new owner of Davenport Marina, Daimler1 SA LLC for the Installation and Maintenance of the Marina Trash Skimmer at Davenport Marina Statement of Issue: The existing MOU between the City and the previous owners of Davenport Marina (Stanko family) needs to be amended,as Davenport Marina was recently sold by the Stanko family to Daimler1 SA, LLC. The City Council approved the original MOU in April 2018 for the installation and maintenance of the Marina Trash Skimmer installed at Davenport Marina. Financial Impact: On July 17, 2017, the City Council authorized the purchase and installation of the Marina Trash Skimmer (MTS) at Davenport Marina. The MTS unit at Davenport Marina was installed in 2018, and ongoing maintenance costs will be funded within existing and future Public Works maintenance budgets. Recommended Action: Approve and authorize the City Clerk to execute “Amendment No. 1 to the Memorandum of Understanding Between the City of Huntington Beach and Davenport Marina for the Installation and Maintenance of Marina Trash Skimmer(s) in Huntington Harbour;” with the new owner of Davenport Marina, Daimler1 SA LLC. Alternative Action(s): Do not approve amending the MOU and direct staff accordingly. Analysis: In April 2016, the City of Huntington Beach partnered with Davenport Marina, Peter’s Landing Marina, Huntington Harbour Marina, and OC Parks to apply for a grant from the Orange County Transportation Authority (OCTA) Measure M2 Environmental Cleanup Program (ECP), Tier 1, to City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™239 File #:21-260 MEETING DATE:5/3/2021 purchase and install Marina Trash Skimmer (MTS) units, which was ultimately awarded. These MTS units were purchased by the City and installed between July 2017 and March 2019 in various locations within the waters of Huntington Harbour in order to remove floating and partially- submerged trash and debris, as well as remove hydrocarbons from the surface. The MOU between the City and the grant partners, including Davenport Marina, formally authorizes the installation and establishes maintenance responsibilities of the MTS units at the various locations for the next ten years. The City previously executed an MOU between the City and grant partner Davenport Marina in April 2018. The existing MOU between the City and the previous owners of Davenport Marina (Stanko family) needs to be amended, as Davenport Marina was recently sold by the Stanko family to Daimler1 SA, LLC. The MOUs between the City and the grant partners establishes the responsibilities for the MTS units for the next ten years, once installed. The amended MOU will expire in 2028. The MOU will require the partners to provide and pay for the electrical power to power the MTS units and conduct weekly routine maintenance. The City will conduct the quarterly maintenance and perform other maintenance, such as replacing parts. Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1) Amendment No.1 to the Memorandum of Understanding Between the City of Huntington Beach and Davenport Marina for the Installation and Maintenance of Marina Trash Skimmer(s) in Huntington Harbour. City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™240 241 242 City of Huntington Beach File #:21-351 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Sean Crumby, Director of Public Works Subject: Conduct Public Hearing for 2021 Annual Weed Abatement Program and authorize the Director of Public Works to proceed with abatement Statement of Issue: On April 5, 2021, City Council adopted Resolution No. 2021-22 declaring that weeds and rubbish on certain vacant, undeveloped property is a nuisance. Pursuant to the resolution, a public hearing must be held before staff can clear private properties at the owner’s expense. Financial Impact: Funds in the amount of $15,000 are budgeted in Weed Abatement, Account No. 10085416.64620 , for the abatement of public and private properties. Costs for City-performed abatement of private properties are reimbursed to the General Fund, Account No. 10000100.47415, via a one-time special assessment added to the Orange County property tax roll of each parcel cleared. Recommended Action: A) Open a public hearing for any objections to the proposed removal of weeds and rubbish; and B) Authorize the Director of Public Works to proceed with the abatement of the nuisance. Alternative Action(s): Postpone the hearing and direct staff to modify the annual weed abatement schedule. Analysis: On April 5, 2021, City Council adopted Resolution No. 2021-22 declaring that certain weeds, refuse, and rubbish on public and private properties are a public nuisance, which should be abated, as provided in California Government Code section 39501. The City cannot commence removal of weeds, refuse, and rubbish from private property at the owner’s expense until a public hearing has been held to consider any objections to this process. The Resolution fixed a public hearing date of May 3, 2021. City of Huntington Beach Printed on 4/28/2021Page 1 of 2 powered by Legistar™243 File #:21-351 MEETING DATE:5/3/2021 The Resolution requires that the private parcels are posted with a notice, and that the posting is completed at least 10 days prior to this hearing. Posting was completed on April 16, 2021, and the Affidavit of Posting is attached. Additionally, staff mailed a letter via regular U.S . mail service to the owner of record of each parcel to inform them of this public hearing and of the requirement to clear their property. If a private property owner is unable or unwilling to clear their property by their own means, staff will complete the task. If the City clears the property, the private property owner is billed for the City’s cost as a one-time special assessment on their property tax bill. The County of Orange remits the funds back to us as part of their regular property tax collection process. Environmental Status: The removal of weeds, refuse, and rubbish from undeveloped private properties is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(h), which exempts the maintenance of existing landscaping and native growth. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2021-22 2. Affidavit of Posting Notice to Destroy Weeds 3. Notice to Destroy Weeds and Remove Rubbish and Refuse 4. PowerPoint Presentation City of Huntington Beach Printed on 4/28/2021Page 2 of 2 powered by Legistar™244 245 246 247 248 249 250 251 252 NOTICE TO DESTROY WEEDS AND REMOVE RUBBISH AND REFUSE NOTICE IS HEREBY GIVEN THAT ON THE 5TH DAY OF APRIL 2021, THE CITY COUNCIL, CITY OF HUNTINGTON BEACH, PASSED RESOLUTION NO. 2021-22. DECLARING THAT NOXIOUS OR DANGEROUS WEEDS WERE GROWING UPON OR IN FRONT OF THE PROPERTY ON THIS STREET, AND THAT RUBBISH AND REFUSE WERE UPON OR IN FRONT OF PROPERTY ON THIS STREET IN THE CITY OF HUNTINGTON BEACH AND MORE PARTICULARLY DESCRIBED IN THE RESOLUTION, AND THAT THEY CONSTITUTE A PUBLIC NUISANCE WHICH MUST BE ABATED BY THE REMOVAL OF WEEDS, RUBBISH AND REFUSE. OTHERWISE, THEY WILL BE REMOVED AND THE NUISANCE ABATED BY THE CITY AND COST OF REMOVAL ASSESSED UPON THE LAND FROM OR IN FRONT OF WHICH THE WEEDS, RUBBISH AND REFUSE ARE REMOVED AND WILL CONSTITUTE A LIEN UPON SUCH LAND UNTIL PAID. REFERENCE IS HEREBY MADE TO THE RESOLUTION FOR FURTHER PARTICULARS. A COPY OF SAID RESOLUTION IS ON FILE IN THE OFFICE OF THE CITY CLERK. ALL PROPERTY OWNERS HAVING ANY OBJECTIONS TO THE PROPOSED REMOVAL OF THE WEEDS, RUBBISH, REFUSE, AND DIRT ARE HEREBY NOTIFIED TO ATTEND A MEETING OF THE CITY COUNCIL, CITY OF HUNTINGTON BEACH, TO BE HELD ON THE 3RD DAY OF MAY AT THE HOUR OF 6:00 P.M. OR AS SOON THEREAFTER AS POSSIBLE, WHEN THEIR OBJECTIONS WILL BE HEARD AND GIVEN DUE CONSIDERATION. DATED THIS 7TH DAY OF APRIL 2021 SEAN CRUMBY, P.E. DIRECTOR OF PUBLIC WORKS (SUPERINTENDENT OF STREETS) CITY OF HUNTINGTON BEACH IF YOU HAVE QUESTIONS REGARDING THIS NOTICE PLEASE CONTACT (714) 536-5522 253 Public Works DepartmentMay 3, 2021ANNUALWEED ABATEMENT PROGRAM254 PROGRAM TIMELINEApril 5, 2021 City Council adopted Resolution No. 2021-22Weeds, rubbish, and refuse upon certain private properties in city were declared nuisanceAffected properties were identified through document research and field inspections255 PROGRAM TIMELINEApril 15 -16, 2021: Affected private properties were posted with the Notice to Destroy Weeds and Remove Rubbish and RefuseApril 20, 2021: Letters were mailed to private property owners256 PROGRAM TIMELINEMay 3, 2021: Hearing of public objections at City Council meetingMay 23, 2021: Deadline for private property owners to clear properties by own meansJune 1 - 8, 2021: Abatement of all properties not cleared by owner257 PROGRAM TIMELINEJuly 8, 2021: Cost per parcel to be posted on Council Bulletin BoardJuly 19, 2021: City Council will be requested to certify clearing costs for inclusion on County 2021-2022 Tax Roll as a one-time special assessment per parcelOnly parcels cleared by the City are charged a fee 258 259 City of Huntington Beach File #:21-323 MEETING DATE:5/3/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Travis K. Hopkins, Assistant City Manager Subject: Review and Consider for Approval a Proposed Social Media Policy for Elected and Appointed Officials Statement of Issue: On February 1, 2021, the City Council adopted the 2021 City Council Work Plan, which was established based off of a Strategic Planning Workshop held on January 5, 2021. As part of the adopted work plan, 5 key priority policy areas were identified by the City Council, and under the Community Engagement Priority, the City Council asked that staff develop for consideration a social media policy for elected and appointed officials. Based on that direction, staff has developed for consideration a draft Social Media Policy for Elected and Appointed Officials (see Attachment A). Per the proposed regulation, elected and appointed City officials who utilize a social media account to promote, discuss, carry out, or reference City related business or activity would be required to abide by First Amendment requirements in managing any official social media account. Financial Impact: None Recommended Action: Review and consider for approval the proposed, “Social Media Policy for Elected and Appointed Officials.” Alternative Action(s): Do not approve the proposed policy and provide staff with alternate direction. Analysis: In Packingham v. North Carolina, the US Supreme Court held that social media platforms serve as “the modern public square,” and as such, social media platforms provide users with the opportunity to “petition their elected representatives and otherwise engage with them in a direct manner.” City of Huntington Beach Printed on 4/28/2021Page 1 of 3 powered by Legistar™260 File #:21-323 MEETING DATE:5/3/2021 Subsequent court decisions have reaffirmed that government representatives who utilize social media platforms to promote, discuss, carry out, or reference issues related to their governmental role have created an official public forum, complete with First Amendment protections for the public. To that end, the proposed social media policy for elected and appointed officials would require the following: ·Except in specific prescribed circumstances, elected and appointed officials would be prohibited from blocking anyone attempting to access their official social media account, or deleting comments made to their official social media account, because of an individual’s viewpoints or perspectives. ·Any content posted onto an official social media account would be considered an official public record, subject to the California Public Records Act, the Ralph M. Brown Act, and State and local record retention regulations. ·The only content that could be removed from an official social media account would include: o Comments not related to the topic being discussed in a post. o Profane language. o Discriminatory comments. o Solicitations of commerce. o Sexual content, or links to sexual content. o Encouragement of illegal activity. o Information that could compromise the safety or security of the public. o Content that violates a legal ownership of any party. Environmental Status: Not applicable Strategic Plan Goal: Community Engagement Attachment(s): 1. Social Media Policy for Elected and Appointed Officials City of Huntington Beach Printed on 4/28/2021Page 2 of 3 powered by Legistar™261 File #:21-323 MEETING DATE:5/3/2021 City of Huntington Beach Printed on 4/28/2021Page 3 of 3 powered by Legistar™262 ADMINISTRATIVE REGULATION City of Huntington Beach AR XXX – Social Media Policy for Elected and Appointed Officials Page 1 Number AR XXX Sections 1 - XX Effective Date May 3, 2021 Responsible Dept. City Manager’s Office Review Date May 3, 2021 SUBJECT: Social Media Policy for Elected and Appointed Officials 1. Purpose and Application: The City of Huntington Beach regards social media as a useful tool to communicate and engage with its citizens. The purpose of this policy is to establish a formal process for the use of social media by individual elected and appointed City officials. 2. Authority: Charter of the City of Huntington Beach, Section 401. 3. Definitions: 3.1 Elected Official: Any individual elected to serve the City through a vote of Huntington Beach residents, including the Mayor, City Council Members, the City Attorney, the City Clerk, and the City Treasurer. 3.2 Appointed Official: Any City representative appointed by the City Council, including but not limited to the City Manager, City Commissioners, City Board Members, City Task Force Members, or any other individual appointed to serve in any official capacity for the City by the City Council. 3.3 Social Media: Internet-enabled applications and web sites that are used to share information and enables users to provide feedback. 3.4 Third Party System: Any social media platform maintained by another entity. This includes but is not limited to Twitter, Facebook, Instagram, Next Door, Tik Tok, WordPress, and Google. 3.5 Packingham v. North Carolina: The United States Supreme Court decision that prescribed social media platforms as “the modern public square,” and that such social media platforms afford users with the opportunity to “petition their elected representatives and otherwise engage with them in a direct manner.” 263 AR XXX – Social Media Policy for Elected Officials Page 2 3.6 Official Social Media Account: Any social media account owned by any Elected Official or Appointed Official that is used to promote, discuss, carry out, or reference City related business and / or activities. Any such Official Social Media Account is considered to be a public forum, subject to First Amendment requirements. Further, content posted on Official Social Media Accounts are considered to be a public record subject to the provisions of the California Public Records Act. 3.7 Public Record: Content posted onto an Official Social Media account is considered to be an official City public record. 3.8 Code of Ethics: A pledge adopted by the City Council on November 21, 2016, that establishes a standard of ethical behavior to which the City’s elected and appointed officials aspire to abide by. 4. Policy: 4.1 Per “Packingham v. North Carolina,” and subsequent court decisions, any Elected or Appointed Official who utilizes a social media account to promote, discuss, carry out, or reference City related business and / or activities shall have created an Official Social Media Account, which is considered to be a public forum where Elected and Appointed Officials must abide by First Amendment requirements. 4.2 To that end, content posted by Elected or Appointed Official to any Official Social Media Account is subject to the following provisions: 4.2.1 Elected and Appointed Officials are prohibited from blocking anyone attempting to access the Official Social Media Account because of an individual’s viewpoints or perspectives. 4.2.2 Elected and Appointed Officials are prohibited from deleting any comments on the Official Social Media Account because of an individual’s viewpoints or perspectives. 4.2.3 Such content is considered to be an official public record, subject to the provisions of the California Public Records Act. 4.2.4 Any content posted is subject to State and local record retention regulations, and the owner of the Official Social Media Account shall retain all posts and comments for the length of time as required by State and local regulations. 4.2.5 All provisions related to the Ralph M. Brown Act apply to Official Social Media Accounts. 4.3 Deviations from Section 4.2 of this Policy, as it relates to content which can be removed from an Official Social Media Account, are allowable in the following instances: 4.3.1.1 Comments not related to the topic being discussed in a post. 4.3.1.2 Profane language. 264 AR XXX – Social Media Policy for Elected Officials Page 3 4.3.1.3 Discriminatory comments. 4.3.1.4 Solicitations of commerce. 4.3.1.5 Sexual content, or links to sexual content. 4.3.1.6 Encouragement of illegal activity. 4.3.1.7 Information that could compromise the safety or security of the public. 4.3.1.8 Content that violates a legal ownership of any party. 4.4 Content posted on the Official Social Media Account of any Elected or Appointed Official should be made in compliance with the City of Huntington Beach Code of Ethics (Exhibit A). 4.5 It is the Elected and Appointed Official’s responsibility to ensure compliance with this policy. _________________________________ Travis Hopkins, Assistant City Manager _____________________________ Michael Gates, City Attorney Approved As to Form _________________________________ Oliver Chi, City Manager 265 AR XXX – Social Media Policy for Elected Officials Page 4 EXHIBIT A City of Huntington Beach Code of Ethics 266 City of Huntington Beach File #:21-375 MEETING DATE:5/3/2021 Submitted by Mayor Carr and Councilmember Kalmick - LGBTQ Pride Month Recognition and Flag Raising A) Request the City Manager to fly the LGBTQ Pride Flag each year from the 3rd week of May until June 30th in recognition of the contributions of the Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ) Community; and, B) Request the City of Huntington Beach recognize the month of June as LGBTQ Pride Month. City of Huntington Beach Printed on 4/28/2021Page 1 of 1 powered by Legistar™267 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: THE HONORABLE CITY COUNCIL FROM: KIM CARR, MAYOR AND DAN KALMICK, CITY COUNCIL MEMBER DATE: MAY 3, 3021 SUBJECT: LGBTQ PRIDE MONTH RECOGNITION AND FLAG RAISING Background: Nationwide, over 11 million Americans identify as Lesbian, Gay, Bisexual, Transgender or Queer (LGBTQ). LGBTQ business owners have contributed over $1.7 trillion dollars to the U.S. economy and have helped create over 33,000 jobs. Despite their growing population and contributions, it is still legal to fire an individual for identifying as LGBTQ in 26 U.S. states; hate crimes against the LGBTQ community are on the rise; and LGBTQ youth disproportionately make up 40% of our nation’s homeless youth. California, a state that represents over 1.3 million LGBTQ residents, has embraced the positive impacts that LGBTQ representation and policies can create. In the past few years alone, the California Legislature has passed over two dozen new LGBTQ protections and elected the largest delegation of LGBTQ state officials in the nation. The State also elected Senator Toni Atkins as the first LGBTQ person to serve as Senator Pro Tempore and Ricardo Lara as the first to serve as Insurance Commissioner. Locally, several cities including Long Beach, Anaheim, Fullerton and Irvine to name a few have taken opportunities to showcase their support for the LGBTQ community by raising the LGBTQ Pride Flag at their respective City Hall and declaring June as LGBTQ Pride Month. Conclusion: The Huntington Beach City Council respects, values and encourages all voices. Our City is comprised of over 200,000 residents, and we receive over 4 million worldwide visitors annually. It is imperative that everyone who works, lives or visits Huntington Beach feels welcomed and safe. Over the past year, the Huntington Beach City Council has taken decisive action to support a community that is diverse, inclusive, and equitable. The City Council has reaffirmed their commitment to a Declaration of Policy on Human Dignity, denounced hate crimes and racist ideology, created community events celebrating diversity, supported the HB Human Relations Task Force’s programs and events, and is committed to the Police Department’s efforts to prevent, respond and report hate crimes and hate incidents. 268 LGBTQ Pride Month and Pride Flag May 3, 2021 Page 2 of 2 In keeping with the City Council’s commitment to create an inclusive and welcoming community, we believe it is time to recognize and support our LGTBQ community by declaring June as LGBTQ Pride Month and by raising the Pride Flag, which is widely recognized as a symbol of love, unity and acceptance. If we as a City can espouse greater acceptance and prevent hate crimes through this simple act of solidarity, then it will have been a worthwhile effort for the City. Recommendation: Request the City Manager to fly the LGBTQ Pride Flag each year from the 3rd week of May until June 30th in recognition of the contributions of the Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ) Community; and Request the City of Huntington Beach recognize the month of June as LGBTQ Pride Month. 269