AGENDA REPORT
City Council
MEETING
DATE:
September 9, 2026
PREPARED
BY:
Mike James
Deputy City Manager
DEPARTMENT
DIRECTOR:
Jennifer Campbell
DEPARTMENT: City Manager’s Office CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Under AB114/SB114, SEC 5, Section 19.569 of the Budget Act of 2023 (21) (A) reduce the appropriation amount from $3,090,000 to $3,078,500 and (21) (B) request a line-item veto in its entirety the Control Language for the City of Encinitas Santa Fe Drive Corridor Improvements.
RECOMMENDED ACTION:
Ratify the letter that requested the Governor of California under AB 114 / SB 114 – SEC 5. Section
19.569 of the Budget Act of 2023 (21) (A) reduce appropriation from $3,090,000 to $3,078,500 and under (21) (B) request a line-item veto in its entirely the Control Language for the City of Encinitas Santa Fe Drive Corridor Improvements (Attachment 1).
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in direct or indirect physical change in the environment.
This item is not related to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
The recommended action applies to the City Council Focus Area I: Public Health and Safety for the Protection of Life, Property and the Physical Environment, Focus Area II: Effective & Reliable City Services, Infrastructure, and Communications, and Focus Area III: Safe and Efficient Mobility and Circulation for All Modes of Transportation.
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FISCAL CONSIDERATIONS:
Should the reduction in appropriations occur, the CIP budget would be reduced by $11,500. However, if the amended budget bill(s) are approved as written, the City will have to return $3.09 million to the State’s General Fund should the City remove or modify the separated bikeway on Santa Fe Drive.
BACKGROUND:
On February 18, 2026, the City Council updated City Council Policy C024 – City Council Legislative Program (Attachment 2), which includes the City Council’s current Legislative Policy Priorities. The policy requires prepared legislative position letters to be placed on the City Council consent agenda for approval prior to being sent. This gives the City Council an opportunity to comment and provide direction to staff. Staff will then monitor the City’s position throughout the legislative process until the bill is signed into law, is removed from the legislative process, or is amended to a point where an expressed position is no longer necessary.
For legislative action or signature requests within the scope of the City Council’s legislative priorities that are time-sensitive and there is insufficient time to be placed on a City Council meeting agenda in advance, the Mayor is authorized to sign on behalf of the City Council. Copies of these letters will be included in the City Council consent agenda for potential comment by the City Council, albeit after the fact.
The August 29, 2026 letter has been rescinded and replaced with the Mayor signed letter dated September 3, 2026 requesting a reduction in the appropriations by $11,500 (money remaining from the appropriation for the Santa Fe project) and under Control Language section (21) (B) to line-item veto in its entirety (Specifically, the portions that will negatively impact the City shown below in blue:
(21) (B) For purposes of the separated bikeway built as part of the Santa Fe Drive West Segment Project, funded in whole or in part by the allocation made pursuant to subparagraph (A), the City of Encinitas shall not do any of the following:
(i) For the first five years from the notice of completion, remove or modify the separated bikeway.
(ii) From 5 years from the notice of completion through 15 years from the notice of completion, remove the separated bikeway, in whole or in part, unless both of the following conditions are met:
(I) The City of Encinitas returns to the state the full amount of the allocation made pursuant to subparagraph (A), which shall be deposited in the General Fund.
(II) The removal results in equal or greater safety, accessibility, and mobility for nonmotorized users.
Per the City Council Policy C024 – City Council Legislative Program (Attachment 2), the letter must be presented to the City Council for ratification.
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ANALYSIS:
On August 28, 2026, Senator Blakespear added control language to amend AB 114 / SB 114 to make changes to the requirements on the state general fund appropriation that the City received in 2023.
This language will prohibit the City from making changes to the protected bike lanes for a minimum of 5 years up to 15 years, and should any changes be made require the City to return the $3.09 million to the State and further dictates even after refunding the allocation that any changes shall result in equal or greater safety, accessibility and mobility for nonmotorized users.
Staff interprets the language introduced by Senator Blakespear, following the anticipated unsuccessful attempt to implement these restrictions through SB 569, to represent a final effort to prevent the City from undertaking any physical bikeway modifications to the Santa Fe Drive Corridor Improvement project.
The control language in the budget bill places rigid requirements preventing the City of Encinitas from making necessary roadway design adjustments, even when those changes are supported by local stakeholders and professional engineers. Furthermore, the City continues to have the following concerns with the control language that include:
• Retroactive Impact:
The changes to the appropriation proposed by AB 114 / SB 114 are a form of impermissible retroactive legislation that impacts the City’s vested rights and contractual obligations. (See Quarry v. Doe I (2012) 53 Cal.4th 945, 955; County of Sacramento v. Loeb (1984) 160 Cal.App.3d 446.)
• Alter a Previously Approved Obligation:
AB 114 / SB 114 seeks to create a new legal disability and repayment obligation concerning a transaction already completed. The State is not merely regulating future grant awards; it is attempting to alter the legal consequences of a prior appropriation after the recipient (the City) relied on the lack of statutory conditions existing at the time of funding. • Adds New Law:
Substantive law cannot be made in a budget bill. “Budget bills that substantively change existing law violate the single-subject rule.” (San Joaquin Helicopters v. Department of Forestry (2003) 110 Cal.App.4th 1549, 1558, 3 Cal.Rptr.3d 246.) Here, the bill goes beyond a mere appropriation as it adds new law.
• Targeted Legislative Measure Affecting Encinitas Only:
The specific change that imposes a new obligation on a single public works project in the state also violates Article IV, section 16’s prohibition on special legislation. (See City of Los Angeles v. City of Artesia (1977) 73 Cal.App.3d 450, 455.) Given that SB 569 is being revised to apply to all jurisdictions, it is impossible to justify why only Encinitas should be singled out in a later budget amendment.
The letter requesting a line-item veto aligns with the City Council Legislative Policy to protect local control of land use decision making and oppose legislation that would hinder or threaten local control over land use, planning, zoning and local roadways.
Therefore, staff recommends that the City Council ratify the letter that requested the Governor of California to line-item veto to AB 114 / SB 114 – SEC 5. Section 19.569 of the Budget Act of 2023 (21) (A) & ((B) Control Language for the City of Encinitas Santa Fe Drive Corridor Improvements (Attachment 1).
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ATTACHMENTS:
1. Letter dated September 3, 2026 to the Governor of California Requesting changes to AB114/SB114, SEC. 5, Section 19.569 (21) (A) Reducing appropriation amount from $3,090,000 to $3,078,500 and (21) (B) request a line-item veto to in its entirely the Control Language for City of Encinitas Santa Fe Corridor Improvements.
2. City Council Policy C024 – City Council Legislative Program 2026-09-09 Item #10F Page 4 of 12
Attachment 1
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CITY OF ENCINITAS
CITY COUNCIL
POLICY
ADMINISTRATIVE MANUAL
Policy Title: City Council Legislative Program Section: City Council Responsible Department: City Manager’s Office Number: C024 Approved By: City Council Date Approved: 09/10/08
Last Update: 02/18/2026
Philosophy:
Throughout each year, the State Legislature and the United States Congress propose and enact legislation, some of which affects local municipal government. The League of California Cities and a contracted government relations firm keep the City of Encinitas informed on proposed legislation from these bodies.
At times, it is in the interests of the City to take a position on proposed legislation. This program recommends a process for addressing proposed legislation that may impact the City.
Method
A. Once each quarter during each legislative season, staff will present Council with a list of proposed legislation with recommendations to support or oppose each bill in accordance with the Legislative Policy Priorities. This will allow staff the ability to obtain an appropriate signature as outlined below in sections 2d, 2e, and 2f and submit positions throughout the legislative season in a timely manner and reduce staff time in generating staff reports to council for each action taken for pre-approved positions.
B. Councilmembers shall have the ability to request a position be taken by the City for proposed legislation not on the original Council approved list, by a Council initiated item placed on a City Council Meeting Agenda.
C. For proposed legislation not on the list approved by the Council per section 2a of this policy, City staff shall be authorized to prepare position letters for the Mayor’s signature and place the correspondence on Council’s consent agenda for potential comment prior to being sent.
D. For legislative action or signature requests within the scope of the Council’s legislative priorities that are time-sensitive and there is insufficient time to be placed on a City Council meeting Attachment 2 2026-09-09 Item #10F Page 7 of 12
agenda in advance, the Mayor is authorized to sign on behalf of the Council. Copies of these letters will be included in the Council consent agenda for potential comment by Council members, albeit after- the fact.
E. Should availability be an issue, the Deputy Mayor shall be authorized to sign position letters in lieu of the Mayor.
F. If neither the Mayor nor Deputy Mayor is available, the most senior member of Council in succession is authorized to sign the position letter.
G. The City’s government relations firm may also be authorized to express the City’s position in person to legislative representatives.
H. All members of City Council shall receive copies of sent position letters, a copy will be sent to the City’s government relations firm, and a copy will be kept on file.
I. All members of City Council shall receive copies of the list of legislative bills that have been forwarded to staff by the City’s government relations firm.
J. For a formal City position on proposed legislation that may not be addressed in the City’s Legislative Priorities, City Administrative Policy Number C003 titled “Policies and Protocols for City Council Meetings” provides the procedure for such requests.
K. The City Manager may use the City’s Legislative and Policy Program as guidance to put an issue on the City Council agenda.
Legislative Policy Priorities
The Legislative Program will be brought before Council for review, discussion and future direction on an annual basis. For the current legislative priorities, see Attachment A.
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Attachment A
2026 Legislative Policy Priorities
Purpose
To establish city priorities that allow city staff the flexibility to track proposed legislation and pursue opportunities that support the well-being of the city and its residents, and to oppose proposed actions that are in opposition to the vision of the city. Staff can identify and inform council of local, state and federal action that could provide opportunities to realize goals, or that may create hardship for the city. The priorities listed below provide the focused parameters that staff will follow when tracking legislation or other potential council or city action.
An underlying element of the Policy and Priorities is the City’s commitment to diversity and inclusion which is part of our culture. We are a welcoming City and believe that we are stronger together and when everyone is included.
Priorities
The primary priority areas include:
• Protect funding for basic infrastructure and vital community services • Protect local control of land use decision making
• Support affordable housing opportunities
• Support solutions to reduce homelessness
• Support environmental sustainability
• Support public health and safety
• Support coastal protection and enhancement
• Promote a just, equitable, and inclusive community.
• Support parks and natural open space
• Support safe transportation
More specific City interests in the categories above include:
PROTECT FUNDING FOR BASIC INFRASTRUCTURE AND VITAL COMMUNITY
SERVICES
• Support reimbursement to cities for all state and federal mandates • Support enhanced local government revenue resources
• Oppose state budget cuts targeting critical local programs and service • Support Enhanced Community Development Block Grant and other federal funding • Support local rail infrastructure investment, including the creation of a corridor-wide quiet zone and safe pedestrian crossings
• Support federal, state or county-funded affordable housing opportunities • Support federal, state or county funding for homeless services, outreach, prevention, assistance, mental health programs and law enforcement
• Support legislation that streamlines, funds, and supports the undergrounding of utilities • Oppose Vehicle Mileage Tax (VMT) as a source of regional or state-wide revenue enhancement
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PROTECT LOCAL CONTROL OF LAND USE DECISION MAKING
• Oppose unfunded state mandates impacting housing and local land use control • Support reform and increased local control of the Regional Housing Needs Assessment (RHNA) allocation process and requirements
• Support legislation that provides funding for affordable housing and keeps land use decisions local
• Protect local control of land use decision making and oppose legislation that would hinder or threaten local control over land use, planning, zoning and local roadways • Seek opportunities to regain local control on state-imposed density bonus law, including but not limited to, reducing the negative impacts of density bonus waivers and concessions • Oppose intensification or expansion of state-imposed density bonus law
PROMOTE AFFORDABLE HOUSING OPPORTUNITIES
• Support legislation providing funding to build or support affordable housing and aging in place • Support legislation that guarantees incremental additional lower income housing for each program or eliminates the unfair application of lower income units to more than one program (eliminate double and triple counting)
• Oppose legislation that promotes housing construction that does not also impose sufficient or significant requirements to provide commensurate affordable housing. Where legislation impacts community character, density or traffic, there must be a commensurate public benefit including significant increased affordable housing and/or other community benefits • Support legislation providing gap finance funding for low-income housing • Support legislation which gives mobile home park tenants more stability through support for mobile home park tenant land ownership programs
SUPPORT SOLUTIONS TO REDUCE HOMELESSNESS
• Support funding for local and regional supportive homeless services including funding for local and regional transitional housing programs
• Support programs and funding for housing opportunities for homeless
SUPPORT ENVIRONMENTAL SUSTAINABLITY
• Support legislation to protect the environment from effects caused by human activity, including transportation, energy, building, and waste management sectors • Support legislation protecting, enhancing, and updating existing water supply and water facilities, and facilitating development of new future water sources in Southern California • Support legislation that supports and funds water reuse, reclamation and conservation programs and facilities
• Support legislation providing funding for the acquisition and restoration of wildlife habitat, bluffs, and lagoons
• Support legislation to provide long term, safe storage solutions for nuclear waste from San Onofre Nuclear Generating Station (SONGS)
• Support legislation that facilitates and/or promotes the expanded use of local water resources including recycled water, graywater, and rainwater harvesting • Support legislation that promotes the development of potable water reuse • Support incentives for utilizing renewable energy resources Attachment 2 2026-09-09 Item #10F Page 10 of 12
• Support legislation that incentivizes the use of solar energy systems on residential and commercial properties
SUPPORT PUBLIC HEALTH AND SAFETY
• Support funding bills for local law enforcement equipment, services, or personnel • Support funding bills for local emergency operations including equipment, services, and personnel
• Oppose bills that restrict local control of law enforcement • Support legislation that enhances communication and promotes public safety regarding federal agency actions in our community
• Support legislation that prevents gun violence, improves gun safety, strengthens mental health care and awareness, and improves suicide prevention
• Support legislation protecting local discretion regarding building and fire code standards • Support legislation that provides funding to enhance wildfire mitigation and emergency response efforts
• Support legislation that strengthens the availability and long-term sustainability of disaster insurance
• Support legislation to enhance ebike and road safety
• Support legislation that ensures local discretion in the adoption and implementation of health and safety standards contained in the building and fire codes • Support legislation protecting women’s and public health • Support funding of programs and activities that support public health • Support legislation that promotes cannabis safety and enforcement measures
SUPPORT COASTAL PROTECTION AND ENHANCEMENT
• Support legislation providing funding and other means for beach replenishment • Support ongoing sand replenishment program and new programs to maintain beaches for coastal bluff protection, recreational opportunities and healthy lagoons and shorelines • Support opportunities of state funding/cost sharing opportunities for state beaches in Encinitas, including Beacon’s Beach
• Support funding mechanisms to provide funding for any additionally mandated storm water pollution prevention measures
• Support regional and statewide sea level rise initiatives • Oppose oil drilling, offshore and on land
PROMOTE A JUST, EQUITABLE, AND INCLUSIVE COMMUNITY
• Support legislation and efforts that remove barriers and promotes access to the full enjoyment of society by all people regardless of sexual identity, sexual orientation, race, ethnicity, age, and differently abled people
• Support funding and programs for support of the LGBTQ+ community to enhance participation in society
• Support legislation that promotes and advances gender equity • Support efforts to reduce violence in residents’ lives and to promote full electoral participation • Support legislation that promotes equitable access to opportunities and investment for historically marginalized communities
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SUPPORT PARKS AND NATURAL OPEN SPACE
• Support legislation that supports the acquisition, development, expansion, and maintenance of parks and natural open space
• Support State, County, and Federal funding for park development, infrastructure, and maintenance
• Support legislation and funding benefitting Encinitas trails and trail development
SUPPORT SAFE AND UNIVERSAL OPTIONS FOR TRANSPORTATION
• Support legislation that makes our roadways safer for drivers, pedestrians, micro mobility and cyclists
• Support legislation for enhanced safety regulations and education for ebike riders • Support legislation for grant funding of transportation safety enhancement projects • Support legislation that supports availability of public transportation ensuring transportation access for all
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