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Item 12 Staff Report

Palo Alto City Council
May 6, 2024

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Item 12 Staff Report
Meeting
May 6, 2024
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Palo Alto City Council
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City Council
Staff Report
Report Type: CONSENT ITEMS
Lead Department: City Clerk
Meeting Date: May 6, 2024
Report #:2402-2635
TITLE
Policy & Services Committee Recommendation Regarding State and Federal Legislative and Budgetary Updates and Positions on Pending State Legislation

RECOMMENDATION
The Policy & Services Committee recommends the City Council confirm support positions for AB 2485, SB 903, SB 915 and receive the attached reports for a state and federal legislative update.

BACKGROUND AND ANALYSIS
The Policy & Services Committee received an update on state and federal legislative and budgetary issues at the April 9, 2024 meeting (Staff Report 2403-2801) 1. The Committee unanimously recommended that the City Council confirm support positions for AB 2485, SB 903, SB 915. All three bills fit within the City’s Legislative Guidelines and thus staff is only asking Council to confirm the proposed positions.

AB 2485 will enhance transparency in the Housing and Community Development’s regional housing needs calculation process. SB 903 will prohibit the manufacture, distribution, or sale of “forever chemicals.” SB 915 will grant local governments regulatory authority of autonomous vehicles operating in their jurisdictions.

The Committee asked staff for additional information about the funding that the City receives from the State government. Staff researched this information within the 1-hours rule and found the following information:

In FY 2024, as of 3/31/24, a total of $41.2M has been received from the state. Of this amount:
•$36.4M are for State Revolving Loan Fund reimbursements for two major capital projects at the Regional Water Quality Control Plant
•$2.6M in grants, majority being the Local Housing Trust Fund •$2M for the Newell Bridge Project, allocated under Priority Legislative Budget Projects 1 Item 1, Action Item, https://portal.laserfiche.com/Portal/DocView.aspx?id=71537&repo=r-704298fc

Included in this update is a memo from Townsend Public Affairs (TPA) (Attachment A) with the status of state bills on which the City has adopted positions and bills TPA is monitoring for the City. The memo details each bill’s summary and status, its Palo Alto-specific impact, and the City’s position. The Committee also recommended some additional bills to be placed on the monitoring list and Townsend will include those on future update lists if the bills are shown to have Palo Alto impact and are moving forward this legislative session.

FISCAL/RESOURCE IMPACT
There is no additional funding needed for this update report. The City Council budgets annually for legislative advocacy services and these efforts are led by staff in the City Clerk’s Office with stakeholder support across departments on key issues.

STAKEHOLDER ENGAGEMENT
Staff from multiple departments are involved in the legislative process. Staff help to review the impacts of bills as well as discuss grant opportunities linked to state and federal programs.

ENVIRONMENTAL REVIEW
The City’s legislative advocacy activities are not a project under section 15378(b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment).

ATTACHMENTS
Attachment A: Update Memo from Townsend Public Affairs
Attachment B: Bill Analysis on AB 2485
Attachment C: Bill Analysis on SB 903
Attachment D: Bill Analysis on SB 915
APPROVED BY:

Mahealani Ah Yun, City Clerk

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