Item No. 1
Town of Atherton
CITY COUNCIL STAFF REPORT – STUDY SESSION
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
DATE: FEBRUARY 7, 2024
SUBJECT: LEGISLATIVE LOBBYIST REPORT: JOE A. GONSALVES & SON
RECOMMENDATION
Welcome and Introduction of Legislative Lobbyist Team, review Legislative Lobbyist Report, and provide general feedback and input into the Town’s Legislative Platform.
BACKGROUND
In late 2023, the Town engaged Joe A. Gonsalves & Son as the Town’s Legislative Lobbyist to assist the Town in a wide range of issues involving State legislation and legislative advocacy. The Gonsalves Team met with key staff to identify various issues of importance to the Town. These included broad based areas of legislative advocacy including public safety, housing, local control and fiscal sustainability.
The Gonsalves Team are present (via Zoom) to provide the Council with an introduction to the Joe A. Gonsalves firm, an overview of the state of the State Legislature, key issues on the legislative calendar, and provide insights into the 2024 Legislative Session.
Attached to this Staff Report are the following:
2023 Legislative Summary
November 2023 Legislative Update Report
2024 Legislative Calendar
January 2024 Legislative Update
As the Council is aware, the Town is a member of the League of California Cities (Cal Cities). Cal Cities, just by virtue of its expanded membership of California cities, provides advocacy on behalf nearly all jurisdictions in the State of California at the State and Federal level. Their advocacy mission is to expand and protect local control for cities through education and advocacy to enhance the qualify of life for all Californians. Cal Cities has 476 member cities of varying size and demographic and of varying resource. While valuable, representation by Cal Cities is designed to address concerns at a broad level in ways that assist a majority of its member cities.
Legislative Lobbyist Report
FEBRUARY 7, 2024
The Town engaged the Gonsalves Team to specifically address Atherton’s needs; and while some of the legislative output from Cal Cities may overlap the Gonsalves Team, where there is a specific need the Town has a resource that can be brought to bear on its issues.
This Study Session is an opportunity for the Council to meet the Gonsalves Team, ask questions about the state of the State Legislature, explore how the process works, and review and provide feedback on important Town issues that might benefit from legislative solutions. It is important to recognize that not all issues can be solved via legislation at the State level, not all legislators support issues of local concern, and legislation is often designed to address a broad base of constituency.
Issues of Local Concern
Retaining Local Control (Land Use)
Housing and Land Use (new housing laws)
Retention of Educational Revenue Augmentation Fund (ERAF) Excess Revenue ($2.3m) Retention of Streets & Highways Funding (Gas Tax/SB1) ($350k) Retention of Property Tax In Lieu/VLF Property Tax Swap/SB89 VLF Shift ($1.6m) Retention of Prop 172 Sales Tax ($112k)
Protections Under Proposition 1A and Proposition 22
State Incursions into Local Law Enforcement
Unfunded State Mandates
Revenue Brief
The Town’s Revenue budget is approximately $23.7m (inclusive of ERAF). The Expenditure budget is approximately $19.3m in operations, $862k in debt service, and an allocation of $3.5- $5.0m to Capital Projects (depending on available reserves). Identifiable revenue at risk totals $4.4m.
State legislation that imposes unfunded mandates, new regulatory requirements that come with additional local cost, or legislation that reduces existing local revenue upon which the Town is dependent (ERAF, VLF, SB1, Sales Tax, etc.) can put the Town’s budget into an imbalance by increasing costs and/or reducing revenues. While this may not immediately jeopardize basic operations given the Town’s strong property tax history and projections; it could negatively affect the Town’s ability to plan for and conduct necessary capital infrastructure improvements.
FISCAL IMPACT
None
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
Legislative Lobbyist Report
FEBRUARY 7, 2024
• Goal Area F – Be Forward-Thinking, Well-Managed, and Well-Planned
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. 2023 Legislative Summary
2. November 2023 Legislative Update Report
3. 2024 Legislative Calendar
4. January 2024 Legislative Update