Attachment A - New Mayor and Council Resource Guide — Council Legislation/Environmental Committee, March 20, 2024 (part 1 of 2)

2022 New Mayors & Council Members Academy
Resource Guide
This Resource Guide and other conference materials can be found at:

New Mayors and Council Members Academy | Cal Cities

ATTACHMENT A

Table of Contents

Your Cal Cities and How To Use It Section 1

Relationship Between City Council and City Manager Staff Section 2

Financial Responsibilities and City Revenues Workshop Section 3

Effective Advocacy & Key City Issues Section 4

Policy Role in Land Use Planning Section 5

Your Legal Powers & Obligations Section 6

Communications and Civic Engagement Section 7

Harassment Prevention Training for Supervisors and Officials (AB 1661) Section 8

How to Build and Maintain the Public’s Trust: Practical Ethics and the Law (AB 1234) Section 9

Your Role as a Local Elected Official Section 10

Understanding Your City’s Departments Section 11

Mayors and Council Members Leadership Academy Torch Program Section 12

Acronyms in Local Government Section 13

Additional Resources Section 14

ATTACHMENT A
Your Cal Cities and How to Use It

ATTACHMENT A

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Cal Cities Roadmap

ATTACHMENT A
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STRONG
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ATTACHMENT A
Relationship Between City Council
and City Manager Staff

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A Key Ingredient for Success: An Effective City Council/City Manager Relationship

Kevin C. Duggan
ICMA West Coast Regional Director

Introduction

Mayors and councilmembers need to have effective working relationships with a number of key audiences in order to successfully undertake their responsibilities. These audiences include citizens/voters, community groups, the press, other governmental agencies, other elected officials, nonprofit organizations and many more. However, critical to a successful and satisfying career on the city council in a city council/city manager form of government is a successful and effective working relationship with the city manager. This article suggests the necessary ingredients for a mutually successful council/manager working relationship.

The City Council/City Manager Form of Local Government:

The "Council/Manager Plan" is designed for the elected city council to set policy direction as the direct representatives of the community with the city manager providing the professional expertise to manage the organization and carry out the council's direction. Policy direction is provided in a variety of ways, including through local laws/ordinances, planning policies (general plan and zoning), financial policies, the annual budget and capital improvement plan, the adoption of city council policies and through numerous other program directives.

The city manager is responsible for carrying out the council's policy direction through the day-to-day management of city functions, including the oversight of city operating departments. Key tasks associated with this role include the hiring and supervision of department heads, the implementation of the annual budget and the assurance of quality service delivery. This "plan" is predicated on the philosophy that elected representatives are better able to make community value judgments on behalf of residents and translate these values into policy direction—the "what" in city government. It is also based on the belief that professional staff are best able to determine the "how" of implementing policies and delivering day-to-day services due to their experience and training. Since both roles are closely related, it is the city manager's responsibility to coordinate between both realms to assure the effective delivery of services consistent with city council direction.

This is often referred to as the policy/administration dichotomy (the separation of these responsibilities)—which, oftentimes, has a good deal of "gray" on the boundaries.

When it works most effectively, the elected officials focus on the big picture of policy

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development and minimize their role relating to administrative implementation while the staff works to avoid an undue influence on policy development while focusing on policy implementation and service delivery. While the line between the two can become blurred, the city council/city manager system is subject to failure if the line is disregarded.

If the city council and the city manager have an effective and mutually supportive working relationship, the likelihood of the policy and administrative roles being effectively coordinated increases significantly, resulting in a more successful city governance and management.

Among the issues to consider in trying to establish the best possible city council/city manager working relationship are the following:

• The relationship cannot be taken for granted and requires attention and work to establish and maintain. If not diligently pursued, it will not be accomplished.

• The work of city councils is not easy! Not only do you confront the typical challenges of group decision-making, but the "group" in this case may not have a great deal in common. Also, the issues can be weighty and controversial. The decision-making is also done in public, often on TV or the Web, scrutinized by the public and press, and anyone can join in on the deliberations.

• Among the factors that can get in the way of an effective relationship include:

— Not understanding/appreciating/respecting each other's roles.

— Differing philosophies.

— Differing personalities.

— Challenging issues.

— External pressures from the media, community groups, employee organizations, etc.

• Fully appreciate that you need to establish a good working relationship with your fellow councilmembers and the city manager in order to maximize:

— Organizational performance.

— Organizational reputation.

— Value to the community.

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— Personal reputation.

— Community pride and confidence.

• Don't underestimate how important it is to a city manager to have a good working relationship with the city council. It has been reported that the relationship with the city council is the primary factor impacting a city manager's job satisfaction.

Among the reasons for this are the following:

— City councils are the source of formal performance feedback. Like almost everyone, positive feedback from supervisor(s) is very important.

— City councils control the city manager's job security.

— City councils determine the city manager's compensation.

— City councils establish the city manager's "parameters of success."

— City council support for the city manager, particularly during tough times, is of tremendous value.

Recommended Practices:

So while the stakes are high and the challenges significant, there are a variety of "best practices" and techniques that can improve the odds of your individual success as a mayor or councilmember, as well as the success of the city council and city as a whole.

The following are offered as ideas to consider in your efforts to establish and maintain a strong and effective working relationship with your city manager:

• Recognize that you are now "different" than before you were elected (and more than you may realize):

You are now viewed as a community/city leader and what you do and say can have a much greater impact. Your comments will now be viewed as representing "the city." What you do and say will also be more closely scrutinized. You should be aware that the city staff will view you much differently now that you are one of the organization's leaders. Even an offhand comment can be viewed as a directive for action. So even though you may not view yourself any differently than before you were elected, don't underestimate to what degree others are viewing you differently.

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• Understand and respect the city council/city manager plan of governance:

It is critical for you to understand why your city is organized under this plan of governance and how it should operate. It is important to understand and appreci- ate the distinction between policymaking and implementation and the different roles played by individual councilmembers, the city council as a whole, the city manager and the city staff.

• Allow time for you and the city manager to get to know each other and develop a working relationship:

Try not to overly rely on what you have heard from others regarding what it will be like to work with the manager—others' views may or may not be accurate.

Most city managers understand the need to work very hard to adjust to the issues, concerns and priorities of the new city council. Try to be open-minded to your ability to establish a productive and effective working relationship with the manager.

• City managers will do their best to carry out the policy direction of the city council (even when there is a major change in policy direction):

Professional city managers are committed to carry out the policy direction of the city council regardless if they personally agree or disagree with the policy as long as what they are asked to implement is:

— Legal.

— Ethical.

— Within their/the city's authority.

It is often misunderstood that when a city manager effectively implements a city council's policy, the manager personally agrees with the policy or can only implement city services consistent with that policy. City managers can change the organization's approach to an issue as may be directed by a new city council.

Avoid overly associating the city manager with the policies that the city has previously implemented at the direction of the previous council.

• Take your role seriously, but not yourself:

This common advice is particularly important for mayors and councilmembers.

While you are doing important and serious work on behalf of the community, you will do it better and more effectively if you keep the normal "ups and downs" and "wins and losses" in perspective. You were elected to make tough decisions on

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oftentimes controversial issues. It's a given that you will be criticized and there will be those who vehemently disagree with your decisions. That is unavoidable.

Develop a thick skin and do your best to not take personally the conflicts and disagreements that are a normal part of your new role. If you don't develop a thick skin, you will overreact to criticism.

Additionally, you are now part of an organization and will be blamed/criticized for the actions of the organization that you had nothing to do with. That is the reality of your new role and you should keep that in mind.

And remember, the city manager is not always to blame when things go wrong, though he/she should take appropriate responsibility for the organization's actions. It can be easy to focus your frustration on the city manager. You will be happier and more effective if you can experience the normal "ups and downs" of city life without needing to always find someone at fault.

Whatever the issue or encounter, try not to take it personally. Try to keep personal likes and dislikes out of the equation. Your fellow councilmembers and the city manager are not your family or personal friends; they are your "professional colleagues," and you need to work effectively with them even if you would not select them as friends.

Lastly, always "live to fight another day." There are always future issues to decide; focus on those versus the votes already taken. And always remember not to burn bridges due to a difficult defeat; you will need those "bridges" for future votes!

• Appreciate the legitimate difference between the "community perspective" and the "professional/technical" perspective:

While you will primarily view issues from your perspective as a resident/citizen in a manner similar to the other residents of the community, the city staff will often have a more "technical/professional" perspective. What might make a great deal of sense to the staff looking at an issue from a purely "business" point of view may not be the right answer based on community perspectives and values. While the city manager will do his or her best to bridge the gap between the two points of view, it is very helpful for councilmembers to understand that while the staff should be sensitive to community values, they will often raise issues based on their professional training that can differ from a purely community values point of view.

An appreciation for these varied perspectives is critical to the council-staff relationship. That does not mean the one perspective is "right" while the other is "wrong"; but both parties should try to understand and appreciate the views of the other.

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• Don't fall into the trap of feeling you are VERY special:

While being elected to a city council is an honor bestowed upon you by the voters, keep that "honor" in perspective. Citizens view electing you as showing trust in your judgment in representing their interests in community decision-making.

They did not elect you because they felt you were personally deserving of special rights and privileges. Don't expect the city manager or staff to be able to assist you in ways outside your formal role on the city council. By and large, they will be required to treat you just the same as any other citizen on matters outside the realm of your official duties. Any compensation and "perks" of office should be visible and public.

• Professional city managers will not "play favorites":

Professional city managers will strive to have a positive working relationship with all the members of the city council regardless of personality, philosophy or positions on specific issues. They will also not let personal likes or dislikes affect how he or she interacts with councilmembers, and you should not expect the manager to act otherwise.

• It is critical to city managers to have clear policy direction:

The city manager and the city organization cannot carry out the policy direction of the city council if that direction is not clearly established. The clearer the direction, the more effectively the manager and staff can implement. Even when the council is split on an issue, the majority's will needs to be clearly stated. The manager should seek clarification from the city council when necessary.

• Be sensitive to the need for city managers to sometimes tell you "what you don't want to hear":

One of the least favorite tasks for a city manager is to tell an individual council- member or the council as a whole something they don't want to hear. This could range from a mistake the organization has made to informing a councilmember that something they want done (or want to do) cannot be done or is not appropriate. While city managers try to be as flexible as possible in meeting the needs of the city council, you will not be well served by a manager who will not tell you when something is not appropriate or cannot be achieved simply to avoid appearing uncooperative. While the manager needs to be clear why the request cannot be fulfilled, it is very helpful to understand the manager has a professional obligation to give you advice contrary to what you would like to hear when he/she is so required.

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• Why managers can't always do what you want them to do:

The manager can often be confronted with a situation of an individual council- member wanting something done that is not consistent with the wishes of the city council. The manager needs to respond to the direction of the city council as a whole. While managers try to be as responsive as possible to the needs/desires of individual members, on matters of any consequence, the direction of the city council will often be required.

• Take your role to evaluate your city manager's performance seriously:

Like any other employee, the city manager benefits from regular and thoughtful performance evaluations. Performance evaluations are an important communication tool between the manager and council. Working for multiple individuals is challenging enough without clear and consistent feedback on performance. At least annual evaluations should be conducted. This provides the opportunity to communicate how the council views the manager's performance, including areas of strength and areas for potential additional emphasis. This is also the only opportunity for the council as a whole to provide this input in private. Use this valuable communication tool effectively.

• Tolerance for organizational imperfection (mistakes!):

While no one likes mistakes, they are unavoidable in the context of organizational life. Cities are complex organizations dealing with a wide variety of services with unique and sometimes challenging clientele. It is not a matter of whether mistakes will be made, but when. It is critical as a leader of your city that you react to mistakes appropriately. While mistakes should be avoided to the greatest extent possible, overreacting can cause further damage. You should expect that mistakes will be addressed promptly, fully disclosed and that steps will be taken to avoid repeating the same mistakes again. You will need to trust the manager to follow up and effectively address the situation when organizational miscues occur. So, have high expectations but recognize that mistakes will occur, even in the best organizations and try not to overreact when they do.

• Support of reasonable risk-taking:

High-performing organizations will occasionally need to take "reasonable risks" in order to achieve community objectives. Sometimes these endeavors will not be successful. However, organizations that avoid ANY unnecessary risk are not likely to accomplish a great deal. While city councils need to be informed and concur that the risk being taken is reasonable for the potential benefit being gained, councils should also be understanding that projects and initiatives that have inherent unknowns may not always turn out as hoped. Intolerance for any

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mistakes/risk will breed an overly conservative organization and will stifle creativity and flexibility and the benefits these values can bring.

• Try to focus feedback on service quality, not individuals:

An ongoing challenge is the difficulty of reconciling the ultimate responsibility of the city council for city service quality versus the need to avoid interfering in the daily management of the organization. It is much better for the city council to communicate service level or quality concerns to the city manager versus performance judgments regarding individual staff members. It is particularly inappropriate for individual members or the council as a whole to try to direct the manager to hire, fire, or promote members of the city staff.

• Don't expect managers to take sides in councilmember disputes:

Regardless of how they may personally feel, most city managers will avoid, at all costs, "taking sides" in disputes between councilmembers. While on occasion the manager might try to help reconcile councilmembers, don't expect the manager to take your side in a dispute with a fellow member. Even if they may agree with you, most managers will avoid taking part in public or private criticism of council- members unless professionally required to do so in extreme cases.

• Don't jump to conclusions regarding citizen/customer feedback:

While it is your responsibility to be available to listen to citizen and customer feedback regarding the city organization, be careful not to jump to conclusions based on what you are told. Oftentimes an individual may sound completely sincere and credible while providing you an inaccurate account of their experience with the city organization. It is best to not jump to conclusions, one way or the other, until the manager is able to provide you a response to the concern. It is embarrassing to criticize staff for poor performance only to find out that the information you relied on was not accurate. At the same time, the manager needs to not be overly defensive regarding staff performance until he or she also has heard "both sides of the story."

• Don't expect the manager to exercise "political leadership":

While managers are inherently leaders of their organizations and, to varying degrees, in their communities, their role is not to be political leaders. That is, it is not intended for the manager to be "out front" on community policy issues. Some- times city councils want managers to take leadership (advocate publicly) on controversial issues to avoid potential political consequences to themselves. While tempting, this is contrary to the intent of the council/manager plan under which the elected officials are to take the lead on purely policy matters.

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• Disagree with the recommendation/don't attack the "messenger":

When dealing with a difficult issue at a council meeting, it can be tempting to not only disagree with the recommendation being presented, but to challenge/ discredit the manager or staff member presenting the recommendation. The best practice is to focus your comments on the recommendation, not the individual.

Having a policy discussion devolve into a personal attack is uncomfortable and embarrassing to everyone involved. Even if you are frustrated by the recommendation, it is poor form to attack the presenter. If you do have concerns regarding how a recommendation was developed or presented, that should be provided privately to the manager.

P.S.: Don't play "stump the staff" by trying to ask questions at the meeting that you think staff will have difficulty answering on the spot. It doesn't really make you look smarter, nor is it helpful to the deliberations to ask a question that cannot be answered. While staff members should work diligently to anticipate questions, it is not possible to anticipate all possible questions. If you really want the answer, get the question answered before the meeting or provide a heads up regarding what you will be asking.

• Conduct yourself at council meetings in a professional/businesslike manner:

Even on very controversial topics with greatly varying opinions, the council deliberation can be and should be "businesslike" and professional. While it may be more entertaining (possibly from a reality TV perspective) to see councilmembers and citizens yelling and having temper tantrums, it gets in the way of thoughtful deliberations and only tends to lower the respect for the council and city in the eyes of your constituents.

• Consider the use of council team-building and goal-setting workshops:

Recognizing the importance of both effective councilmember/councilmember and council/city manager working relationships, often an investment of time in team- building workshops is very worthwhile. These workshops allow for a thoughtful conversation of working relationships outside the context of discussing specific issues. These discussions can help create a better understanding of work styles and perspectives.

Additionally, recognizing that clear direction and priorities are critical for effective council/manager relations, goal-setting workshops can be very effective forums for establishing city council and organizational priorities.

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• Have a clear understanding with the manager of the type and frequency of communication you prefer:

While a fundamental value of city managers is to provide regular and complete information equally to each councilmember, councilmembers can vary significantly regarding the type and frequency of contact with the manager they desire. While the manager will use written reports in one form or another as a base line of information to all the members, it is important for the manager to understand your preference for how information should be communicated, including the frequency of personal contact. While some members prefer regular "face-to-face" contact with the city manager, others prefer less time-intensive information-sharing methods.

While sharing the same information among all councilmembers, it is helpful for you and the manager to understand how much and what type of contact you prefer.

• Do your homework:

It takes time and effort to be a successful councilmember. It makes the manager's and staff's job a lot easier if you have reviewed the reports and related materials provided to you prior to the city council meeting. This facilitates efficient meetings, accelerates decision-making and gives the impression that staff and council are working well as a team. Additionally, it will avoid you appearing unprepared to your fellow councilmembers, the staff and your constituents.

• Trust above all:

As in all relationships, the city council/manager relationship must be based on trust. Other potential obstacles such as differing personalities, styles, philosophies, etc., can be overcome if there is mutual trust. Without trust, little else will be successful. Both parties need to treat each other with respect and be truthful and forthcoming in their dealings.

• No Surprises:

Both the manager and council should do their best to make sure that important information is not first learned from others. While in this age of instant communication this is more difficult, and in some cases impossible, the parties should do their best to make sure that noteworthy information to which they are privy is not communicated to other organizational leaders by third parties (particularly the media). The manager needs to work hard to make sure that the council is not taken off guard while councilmembers should keep the city manager in the loop as well. "Surprises" can have a very negative impact on the working relationship in that it speaks directly to the trust issue.

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• Work through the city manager to get things done:

While practice and philosophy can vary to some degree between cities, council- members should generally work through the city manager to obtain action by staff.

Individual councilmembers are not authorized to direct staff, though routine referral of citizen requests (or to simply request information) is sometimes appropriate depending on local practice. Coordinating through the manager will make sure the issue is sent to the right staff person for action and will allow the manager to confirm timely follow-up. This also helps the manager stay informed regarding issues of community concern.

• Council/Mayor Role:

It is also important to make sure there is clarity between the council, the manager and the mayor on respective roles. At times there can be a conflict between the role the mayor views themselves as playing and the expectations of the remainder of the council. It is difficult if the manager gets caught in a dispute over these respective roles. In particular, how the city manager relates to the mayor versus the other councilmembers needs to be clear.

• Don't blame the manager or staff for carrying out the direction of the city council:

The city manager and staff are required to faithfully carry out the direction of the city council, regardless if they did or did not recommend it and regardless if some councilmembers oppose it. Respect the staff for faithfully carrying out the will of the council, whether or not you share the view of the council majority.

• If the council/manager relationship is not going well:

If you or the council are having difficulty with the city manager, try your best to resolve the issue. First of all, find an appropriate way to communicate the concerns. The manager can't respond if he/she is not aware of the concern. As noted earlier, try to obtain clear council consensus for the expectations for the manager and communicate those expectations clearly. Try to be optimistic regarding the possibility of the manager making adjustments to satisfy the concerns of the council and give sufficient time to do so. Additionally, provide the manager opportunities to respond to the feedback and communicate how he/she will address the concerns.

• If all else fails and there needs to be a "parting of the ways":

A forced separation of the manager is not a good experience for the council, the manager or the city. It can be costly, controversial and can cast everyone in a negative light. It can also erode citizen confidence in the city. Assuming all

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reasonable steps have been taken to avoid a forced transition and recognizing a parting based on "irreconcilable differences" is always better than an "ugly, contested divorce" (in an "ugly divorce," both parties end up looking bad), keep the following in mind:

— Keep it professional.

— Don't unnecessarily damage the manager's reputation—it is not needed to make a change.

— Provide a reasonable period of time for the manager to find another position or provide reasonable severance—it takes time to find a manager's job.

— Remember, how you handle the transition of the current manager will have an impact on the quality of the candidate pool for the next manager.

Summary/Concluding Thoughts:

An unstable council/manager relationship has negative consequences for the city council, the manager, the organization and the community. A positive and mutually supportive relationship will increase the odds of having a high-performing and successful city. The councilmembers and manager need to make creating, supporting and sustaining the relationship a high priority. If made a high priority, the odds of success are great.

Remember that your service on the city council is a unique honor that has been bestowed on you by your fellow citizens. While it is often a challenge, with inherent difficulties, someone needs to do it and your community has selected you for that responsibility. You have been selected to serve in a professional and honorable manner, during good times and bad. Your service on the city council will be over soon enough.

Conduct yourself in a manner that will allow you to look back with pride—not only for what you accomplished, but also the way in which you conducted yourself (which will likely be remembered the longest).

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Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 1

Electeds and Staff Bring a Different & Necessary
Perspective

Understanding and embracing different perspectives is part of what makes our democratic institution at the local level so great. Both perspectives are vital when making decisions in the community’s interests.  Elected officials focus on what their constituents value and need from the agency; and  Staff has technical expertise in policy areas and what can work, given their day-to-day experiences with implementing agency policies, practices and service delivery that can help inform the decision-making process.1
Bridging Function

Elected officials play a key bridging function between the community needs and staff; the chief executive officer in turn plays a bridging function between elected officials and staff.

Leadership & Governance:

Tips for Success

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Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 2 Role Division

Current thinking is that elected and appointed officials operate in all four dimensions of the governance process: mission, policy, administration and management, although to differing degrees. 2 The graphic 3 below illustrates this phenomenon. The curved line illustrates the division of roles between governing boards and executive staff; how this line looks for each local agency varies.

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Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 3 When the Governing Board Changes

Staff’s job is to implement the policies adopted
by the governing body. This includes
implementing changes in policy direction when
the philosophy of the governing board
changes.

New majorities on boards sometimes impute
the policy preferences of the previous boards
to staff. This causes them to worry that staff
will not be as diligent in implementing changes
to previous policies. They sometimes believe
staff has to change in order for policies to
change.

This is another area where frank and ongoing
communication is helpful. Most professional
staff understand that policy directions change
and that their role is to implement that change,
as long as the policy falls within the bounds of
the laws and public service ethics.

Allow a certain amount of time for staff and the
new majority to get to know one another and
see if a productive working relationship can
occur.

Role Clarity

A shared understanding of the chief executive’s role and the governing board’s expectations optim izes the working relationship. This understanding is informed by local charter and ordinance provisions that provide the overall framework for the relationship.

 The process of developing such a shared understanding begins with the hiring process and each participant in the process being forthright about their respective expectations.  An annual evaluation process is an ongoing opportunity for such communication, particularly as governing board members change.

Staff will be most able to perform to expectations if those expectations are clear and mutually acceptable.

Tips for Governing Board Members
Setting Goals and Priorities. A helpful practice is
to have the governing board establish priorities and
strategic goals for the organization; such goals and
priorities are a tool to guide the chief executive and
staff on where to focus their efforts.4

Establishing an annual time for board reflection on
community priorities would also offer an opportunity
to discuss decorum among members and the
executive-board relationship.

Limited Resources Means Difficult Trade-offs.

An unhappy reality is that there are likely insufficient resources to accomplish everything that the
community and elected governing board members
desire. This reality creates challenges for the chief
executive in proposing a budget as well as well as
managing the agency work force.

Finding Common Ground. A key skill for a
governing board member is finding areas of
agreement and common interests with other board
members. Within the parameters of the state’s open
meeting laws, work with the other governing board
members to find areas of agreement on what
courses of action best serves the public’s interests.

In the event that board members disagree, clear
ground rules can quell acrimony before it becomes a
public spectacle.

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Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 4 Understanding that Public Policymaking Involves Value Choices. Policy choices tend to be choices among different values, including the values of fairness, compassion, efficiency, individual rights, common good and others. The “correct” answer is likely to be an elusive goal,5 particularly since members of the community as well as other members of the governing board are likely to give different values different weight.

Chief Executive Works for the Entire Board. All members of the body were elected by the community to participate in the agency’s decision-making processes. As a result, the chief executive’s responsibility is to strive for positive working relationships with all members of the body equally and provide information equally to all members of the body.

Communications Needs. Let the chief executive know what kinds of communications work for you.

While the chief executive’s job is to share information with all members of the governing body equally (and typically through a combination of written communications and one-on-one meetings), governing body members will often have different communications preferences as to what combination of these two techniques work best for them.

Transparent Decision-Making. The governing board makes decisions (and gives staff direction) at open and well-publicized governing board meetings. These decisions occur after listening to, inquiring of and learning from interactions with all segments of the community and staff.

The Benefits of Collaboration. Be forthright on your objectives and goals with the chief executive, so he or she can do what is possible to help you achieve them (as opposed to “going around” him or her). A chief executive will try to be as responsive as possible to the needs of individual s on the governing board; however understand that significant tasks are likely to require governing body buy in and some tasks may conflict with priorities and policies adopted by the full governing body.

Ground Rules. A helpful practice is for the governing board as an entity to adopt, regularly review and update how the board will conduct its meetings and make decisions. 6 Such protocols typically address meeting procedures (agenda preparation, how to put issues on the agenda, debate and voting procedures (parliamentary rules) and standards of decorum (civility).7

Managing Difficult Board Members. Staff’s role is to provide information to enable elected officials to knowledgeably participate in the decision-making process. However, from time to time, there will be difficult and divisive board members that create a challenging and uncomfortable environment for both the board and staff. There is no one-size-fits-all solution to solve such a problem. In the end, the board must manage its own behavior—not staff.8

Staff Preparation. If you have questions, concerns and/or information needs (or know that members of the community do), provide staff a heads up in advance of meetings so staff can be prepared to address them.

Unwelcome Information. One of staff’s least favorite roles is providing information and analysis that will make one or more governing board members unhappy. Typically, providing such information is part of staff’s job to avoid surprising the board. If pursuing a given course of action could have negative outcomes (a lawsuit, unintended consequences or a chance that a given goal will not be achieved), it is

ATTACHMENT A
Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 5 staff’s job to let the board know so the board can factor such information and risks into the decision. If possible, staff will also try to identify options and alternatives for reducing the risk of negative outcomes.

Directing Questions and Criticisms. Question, and if appropriate, criticize ideas, policies, programs or outcomes, but not the individuals involved (whether those individuals are fellow elected officials, staff or members of the public). Remember that staff is your tool to accomplish your objectives. Public praise for things you like will motivate; public criticism and embarrassment will discourage. Criticism or i nformation regarding staff missteps should be directed to the chief executive to address.

Responding to Mistakes and Disappointing Outcomes. Mistakes are likely to happen in any organization. If something bad happened, ask what measures can and will be taken to prevent such missteps in the future.9

Tips for Chief Executive & Staff

Clear Goals and Priorities. A key task is for the governing body and chief executive work together to assure staff has clear direction on the agency’s goals and priorities.

Goal setting workshops can be useful forums for establishing governing board and organizational priorities. This includes holding annual workshops in which goals are set, reviewed, updated and/or retained, as well as direction on how the group wants to be kept updated on progress, goals and priorities.10 Follow up, of course, is critical to maximizing a goal setting session’s value. 11

Such clarity enables staff to know where to devote scarce/limited resources in proposing budget and work program priorities for the governing board’s consideration.

Documented goals and priorities serve as a reference point when issues and potentially competing priorities come up throughout the year. Priorities may need to change of course; the key is if a new priority is added, an old one must be subtracted.
12 Engaging a broad range of the community in the conversation about hard choices can help the governing body in aligning agency goals with community wishes. Such processes offer important opportunities to inform and consult the community on what can be difficult tradeoffs due to scarce resources. Such engagement can also make the resulting decisions more enduring.

Focus on the Core Functions. For those areas over which the agency has discretion (for example, non- state mandated efforts without maintenance of effort requirements), the conversation can focus on identifying what is most important for the agency to accomplish. This tends to be an intersection of three things: what the community is passionate about, what the organization can be best at and what resources are available.13

Identifying this intersection does not necessarily mean that tasks outside the intersecting area will not get accomplished. Some functions may be more effectively accomplished by other agencies, community- based organizations or the private sector.

ATTACHMENT A
Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 6 Capacity Building. The entire community benefits from well-prepared and knowledgeable local officials.

Some tools for assisting with this goal include:14

 Leadership academies that help the public, including potential future governing board candidates, understand key elements of the agency’s work and processes.  Candidate orientations that provide information about agency functions, pending policy issues, including budget issues and any regulations that apply to the campaigning process.  Newly elected official orientations conducted as soon as possible after election results are certified. Content should include the nuts and bolts of how to accomplish objectives in their new role, as well as briefings on current issues the agency faces, the status of long-range plans and capital projects, and the budget process. Connecting newly elected officials with former electeds who are respected in the community and can offer advice and share experience is also helpful. 15  Ongoing education through local workshops, references to helpful information about local governance and policy issues and conference attendance.

Credit for Commitment to Elective Office. One dimension of staff’s role is to help governing board members receive the recognition they deserve for their actions as public servants. 16 As media opportunities occur, ensure the electeds are aware so they may receive recognition for their service on community issues.

Evenhandedness. A positive working relationship with all governing body members regardless of personality, philosophy, positions on issues or whether the member is in the majority or minority on the body (remember majorities can change) can be another important success strategy. Communication preference may require that you spend more time with certain members. “Evenhandedness” does not necessarily mean communicating with all decision-makers in the same way.

A Sustained Effort. Successful relationships require ongoing effort and attention. Communication is a central element of this effort.

 Staff’s role is to present information and analysis objectively, fairly and without spin.  This includes willingness, when necessary, to deliver unwelcome information and minimize surprises for the governing board.

When Elected Officials Disagree with Staff Recommendations and Analysis. Professionals recognize smart, conscientious and reasonable people can disagree on the best course of action (particularly given the differing perspectives that staff and electeds contribute to the analysis of what best serves the community’s interests).

 Such disagreements are not and should not be taken personally.  All governing board decisions must be faithfully implemented, even those which differed from what staff recommended.
 Staff should never speak ill of elected officials, even to seemingly sympathetic and discreet listeners. Word of what was said inevitably seems to get back.

Attention to Detail.

Doing the small things well helps governing board members trust staff on the big items.

ATTACHMENT A
Leadership & Governance: Tips for Success December 2015 | www.ca-ilg.org | 7 Defining Success. Enjoying good relationships with elected officials is a worthy goal, with a few caveats.

 Be clear on the lines (legal, ethical and professional) over which you are not willing to step, before finding yourself in a difficult situation.
 As difficult as it may be, your professional reputation for competence and integrity in the long term is a more valuable career asset than keeping a particular job.

References
1 International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999) at 22.
2 Working Together: A Guide for Elected and Appointed Officials, at 19-20. 3 Based on the work of James H. Svara in “Dichotomy and Duality: Reconceptualizing the Relationship between Policy and Administration in Council-Manager Cities,” Public Administration Review 45 (1998): 228. This material is reproduced with permission of John Wiley & Sons, Inc.
4 Kevin C. Duggan, A Key Ingredient for Success: An Effective City Council/City Manger Relationship, at 9. 5 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine, August 2009, available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle=
6 See International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999), at 59. Mike Conduff, Council Relations, PM Magazine (June 2012), available at http://webapps.icma.org/pm/9405/public/council.cfm?author=&title=Council%20Relations&subtitle= 7 See International City/County Management Association and National League of Cities, Leading Your Community: A Guide for Local Elected Leaders (2008) at 30-33.
8 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine ( August 2009), available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle
9 A Key Ingredient for Success: An Effective City Council/City Manger Relationship, at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle
10 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine (August 2009) available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle=
11 Mike Conduff, ICMA-CM, A Great Retreat!, PM Magazine (April 2012) available at http://webapps.icma.org/pm/9403/public/council.cfm?author=&title=Council%20Relations&subtitle= 12 Frank Benest, Ten New Rules for Elected Officials in Times of Economic Meltdown (2011) available at http://www.ca- ilg.org/post/leadership-strategies-times-economic-meltdown. 13 Adapted from Jim Collins, Good to Great in the Social Sectors, 2005 at 19 (the “hedgehog concept). Also recommended by Frank Benest in Ten New Rules for Elected Officials in Times of Economic Meltdown (2011) available at http://www.ca-ilg.org/post/leadership-strategies- times-economic-meltdown.”).
14 From Mike Conduff, Council Relations, PM Magazine (June 2012), available at http://webapps.icma.org/pm/9405/public/council.cfm?author=&title=Council%20Relations&subtitle= 15 Preparing Councils for Their Work, PM Magazine, available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle=
16 This concept is part of the International City/County Management Association’s Code of Ethics:

Tenet 6. Recognize that elected representatives of the people are entitled to the credit for the establishment of local government policies; responsibility for policy execution rests with the members.

More Resources
International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999)

International City/County Management Association and National League of Cities, Leading Your Community:

A Guide for Local Elected Leaders (2008)

This resource reflects the insights and thoughts of a number of individuals, including: Kevin C. Duggan, West Coast Director, International City/County Management Association, Pete Kutras, Retired County Executive, Santa Clara, and Principal Consultant, Municipal Resource Group, LLC, Richard A. Haffey, County Executive Officer, Nevada County, and William Chiat, Director, CSAC Institute for Excellence in County Government.

ATTACHMENT A

Board/Executive Staff Communications Strategies December 2015 | www.ca-ilg.org | 1

Establish Communication Priorities at the Beginning
of the Relationship

Establishing rapport and communication styles early on will help throughout the board members’ and executive’s appointment tenure.

Ongoing Communications/No Surprises

A mutual goal in executive/board member communications is for each to keep the other informed of developments relevant to the others’ roles and responsibilities. Another important goal is to avoid situations in which either elected officials or the chief executives are surprised.

Board Workshops

A board workshop, or series of workshops, can help to set goals and priorities for the agency. Workshops and communicating about decorum are key tools for the governing body . Such workshops enable the board to establish overall goals and priorities the community and objectives for the chief executive to pursue. Workshops can also create mutual expectations among board members on how they will work together to achieve goals.

Role of the Chair

One member of the board may be selected to serve as chair of the board. The chair may handle issues among the electeds as they arise so staff is not in the middle of any situations. An executive can work directly with the chair on agenda setting and logistical priorities.

Tailored Communications Methodologies

On a more day-to-day basis, regular communications between the chief executive and elected officials are advisable. How those communications occur will vary according to the preferences and styles of the individuals involved. Elected officials are likely to vary in how, when and where they want to engage in Board/Executive Staff
Communications Strategies

ATTACHMENT A
Board/Executive Staff Communications Strategies December 2015 | www.ca-ilg.org | 2 communication with staff. As one former elected official observed, “One size does not fit all, but all need to feel fit.”

Although the mode of communication may vary; all board members should receive the same information.

The method and amount of time for delivering and receiving communication may differ among members.

Understanding the communication needs of each elected official is a key executive task.

Regular in-Person Meetings

Experts suggest that one-on-one meetings between the agency chief executive and each governing body member should occur frequently - if not weekly, then biweekly or monthly.

 Regular meetings with governing board are especially important when the body is divided. 1 If the chief executive meets only with members of the majority, the executive may undermine perceptions of staff objectivity and neutrality.
 Although staff is bound to implement the policy adopted by the majority, the relationship the chief executive develops must be with the body as a whole as well as with each individual who makes up the body.

Weekly Updates

Some agencies find a weekly newsletter/email from the chief executive to governing body is helpful practice.

 These should be informational only - not an effort to achieve consensus among decision-makers outside open and publicized meetings.2
 Executives and governing board members also need to be aware that such communications are public documents subject to disclosure to the media or in litigation.

Voice-to-Voice for Sensitive Matters

Communications relating to confidential or sensitive matters are best accomplished in person or by telephone.

Newly Elected Official Orientations

A helpful practice is for each newly-elected governing board member and the chief executive to meet individually early on. The meeting can include a tour of agency facilities and a briefing on key issues, as well as a preview of issues to be covered in any additional orientation sessions planned. It also offers elected officials the opportunity to get their most pressing questions answered. 3 For more information, visit ILG’s New to Public Service resources at: www.ca-ilg.org/new-public-service.

ATTACHMENT A
Board/Executive Staff Communications Strategies December 2015 | www.ca-ilg.org | 3

Staff Reports

Another form of communication between staff and elected officials (and others) are the staff reports the governing body receives in preparation for meetings. Good communication between the governing boar d and staff about the board’s needs and expectations is important. In general, the following are recognized as good practices.4

 Complete Information. Staff reports should contain all of the information necessary to make an informed decision. This includes options and alternatives when appropriate, as well as anticipating questions and concerns.
 Usability. Complete information is useful only if it is in useable form. Executive summaries, graphics, tables and decision-trees are ways to summarize complex information in an easier- to- understand manner.
 Plain Language. Acronyms, jargon and technical language should be avoided. Any term that is likely to be unfamiliar to the average resident should be either defined or avoided in favor of more easily understandable wording. Be succinct and prepare executive summaries for the members as often as possible.
 Analytic Framework. Agency staff should use a consistent framework for presenting policy analyses. Typical components include: problem definition, options and alternatives, evaluation of options, staff recommendation, implementation and evaluation.

Subjects of Communication

Board/executive communications should include not only what is happening or needs to happen, but how decision-making processes occur. This can be especially important on major or potentially contentious issues. The governing body may feel it needs additional time to evaluate the difficult issues presented or engage in additional public engagement processes to hear and consider public input.

ATTACHMENT A
Board/Executive Staff Communications Strategies December 2015 | www.ca-ilg.org | 4 More Resources

International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999)

International City/County Management Association and National League of Cities, Leading Your Community:

A Guide for Local Elected Leaders (2008)

References
1 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine (August 2009) available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20 Councils%20for%20Their%20Work&subtitle
2 See Wolfe v. City of Fremont, 144 Cal. App. 4th 533 (2006); Cal. Gov’t Code § 54952.2(b):
(b) (1) A majority of the members of a legislative body shall not, outside a meeting authorized by this chapter, use a series of communications of any kind, directly or through intermediaries, to discuss, deliberate, or take action on any item of business that is within the subject matter jurisdiction of the legislative body. (2) Paragraph (1) shall not be construed as preventing an employee or official of a local agency, from engaging in separate conversations or communications outside of a meeting authorized by this chapter with members of a legislative body in order to answer questions or provide information regarding a matter that is within the subject matter jurisdiction of the local agency, if that person does not communicate to members of the legislative body the comments or position of any other member or members of the legislative body.

See also Open and Public IV: A User’s Guide to the Ralph M. Brown Act (2010) at 17 (noting that chief executive officer briefings can be a violation of the state’s open meeting laws when the process reveals information about governing body members’ respective views).
3 From Mike Conduff, Council Relations, PM Magazine (June 2012), available at http://webapps.icma.org/pm/9405/public/council.cfm?author=&title=Council%20Relations&subtitle 4 International City/County Management Association, Partnerships in Local Governance: Effective Council-Manager Relations (1989) at 42-45 (chapter by Kevin C. Duggan and Terry Ellis “Preparing Staff to Work with the Council”).

ATTACHMENT A

Dealing with Bumps in the Road December 2015 | www.ca-ilg.org | 1

At some point in the journey, the board/executive relationship may encounter difficulties. In fact, a consistently comfortable relationship could in itself be an indicator that one or both parties may be avoiding both testing ideas and possible conflict to the detriment of the agency and public they serve.

Strategies to Try1

1. Avoid Complacency. Strong relationships require ongoing investment of time. The environment, challenging situations, changes in players, unanticipated demands and day-to-day politics all place stress on board/executive relationships. Take time to step back and assess relationships on an ongoing basis. Be prepared to adjust approaches if necessary.

2. Communicate.

Often, communication is the first place where relationships begin to suffer.

Something happens; human nature can be to avoid confrontation and uncomfortable discussions.

When communication barriers emerge, schedule time for a private face-to-face and earnest discussion with the individual in question. Acknowledge any elephants-in-the-room, share perspectives of what happened, and explore how to improve the relationship.

3. Address Issues Directly. Avoidance tends to make problems fester; rarely does avoidance cause problems to go away.

4. View the Relationship as a Partnership. Work together to address community needs without focusing on distinctions between policy and administration. Each party to the relationship should feel that their contributions are valued and respected.

5. Avoid Being a Barrier to Staff Contact with Electeds. Electeds may prefer to deal with staff directly; staff should keep the chief executive in the loop when significant issues come up in their conversations with members of the governing body.

6. Focus Credit and Attention on Elected Officials 2. The center of positive attention at governing body meetings or at community meetings should be elected officials, not staff.

7. Try to See the Situation from Others’ Perspectives. Ask open-ended, non-judgmental and even-toned questions. Take a step back to assess what happened and is happening in the relationship. Ask clarifying questions to understand the perspective of the other person; share your own perspective in neutral terms. Examine the problem and not the individuals. Treat the situation as a learning opportunity to avoid future missteps.

Dealing with Bumps in
the Road

ATTACHMENT A
Dealing with Bumps in the Road December 2015 | www.ca-ilg.org | 2 Red Flags for Relationship Attention2

 Instinct. If your sense is something isn’t as
good as it might be, you may well be right.

Don’t hope it goes away.
 Information Flows Diminish. Sometimes
one party will feel the other isn’t keeping
them properly informed or they aren’t getting
the information they need to do their
respective jobs well. Other times, the issue
may be that people communicate less and
less frequently or information isn’t being
shared equally.
 Interpersonal Relations. Another warning
sign is when the chief executive or board
member stops being included in
conversations that he or she would ordinarily
be included in. Watch for any signs of
changes in the relationship changes (less
forthright/more evasive)
 Performance Reviews. Avoiding an annual
review (the board doesn’t want to give one
or the chief executive doesn’t want to
receive one) can be a sign of trouble.
 Badmouthing. This usually signifies
significant frustration levels.
 Focal Point is the Staff. Another potential
sign of trouble is when the chief executive or
other staff become the focus of media or
election attention.
 Dissatisfaction with Staff. Governing board
members are dissatisfied with key staff and
the chief executive is perceived as not
addressing the problem and/or being able to
get things done.
 Trust Diminishes. The governing board
regularly second guesses the executive’s
recommendations.

8. Delve Deeper. Listen for the meaning behind the
words. Try to identify the underlying issues,
which may have both a logical and an emotional
dimension. What are the values, beliefs and
anxieties that might be at stake? Sometimes the
issue is not more data and facts; it is about
connecting on a more personal level. Sometimes
people just want to be acknowledged and
understood.

9. Accept Responsibility. You have surely
contributed to the difficulties in a relationship,
intentionally or unintentionally. Accept
responsibility, apologize if necessary, discuss
how to avoid a repeat and move on.

10. DWYSYWD (“Do What You Say You Will Do”).

People may judge your commitment to a
board/executive relationship by what you do, not
what you say. If a relationship has been
damaged, the first thing people will look for is
evidence of commitment to rebuild the
relationship. Do what you said you will do. It will
be noticed. Start with simple steps (for example,
gather information, arrange a meeting, resolve a
problem, or create a follow-up plan). These can
be immediate and observable demonstrations of
your sincerity in wanting to address concerns.

11. Find a Confidant. Serving as an elected official
or a chief executive can be a solitary world.

Identify an objective sounding board to bounce
ideas off of and test assumptions and theories.

The best confidants are typically outside your
organization. They say what you need to hear,
not necessarily what you want to hear and can
help you navigate through difficult issues.

12. Take Care of Yourself. Maintaining a balance in
the demands of public service and personal life
is challenging. Make time to get away, to
decompress, to work off frustrations, to reflect,
and create space between public service and
your private life. Working through difficulties requires a certain mental and emotional stamina. In addition, people can overreact when they are tired and under stress. Even if it is only an hour at the gym or a long weekend, make time for yourself.

ATTACHMENT A
Dealing with Bumps in the Road December 2015 | www.ca-ilg.org | 3 About the Institute for Local Government
This tip sheet is a service of the Institute for Local Government (ILG) whose mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities.

ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties and the California Special Districts Association.

References
1 Heifetz, Ronald A. and Marty Linsky, Leadership on the Line: Staying Alive through the Dangers of Leading, 2002, Harvard Business School Press, Boston.

2.International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials, 1999 at pages 63-71.

ATTACHMENT A
1 Leading public organizations and governing with colleagues on a council is a challenging art of community service. The Institute recognizes that many aspects of leadership and governance are not intuitive. This piece is intended to provide councilmembers and city managers insight into the attributes of exceptional councils as well as provide practical tips to help them become exceptional.

1. Exceptional councils develop a sense
of team – a partnership with the city
manager to govern and manage the city

The mayor, councilmembers and city manager see
themselves and work as a team as they undertake a
series of tasks to further their common purpose. The
individual team members work in a coordinated and
collaborative manner with a high degree of respect, trust and openness. The team values diversity in style and
perspective. The team thinks and acts strategically as it examines issues/situations and decides on a course of
action serving their city’s mission and goals.

KEY CHARACTERISTICS

 Successfully transition from candidate
to a member of the council.
 Become a champion of the city. Make
decisions based on the needs and
interests of the community at-large / the
greater good.
 Develop, communicate and support
policy goals and council decisions.
 Demonstrate a willingness to work
collaboratively (as a team) and have a
citywide perspective.

BEST PRACTICE TIPS

Build capacity to create a more effective team. The governance team (mayor, councilmembers and city manager) should get to know each other; how each person approaches issues, decision making style and so on. This can be accomplished at annual meetings or workshops through-out the year.

In the event that councilmembers disagree, clear ground rules (norms of behavior and practice) can help quell acrimony before it becomes a problem. It’s important to remember that trust is built around understanding and respect, not necessarily agreement.

Attributes of Exceptional Councils

ATTACHMENT A
Attributes of Exceptional Councils

2 2. Exceptional councils have clear
roles and responsibilities that are
understood and adhered.

Exceptional councils understand their role is to serve as policy maker - to represent the values, beliefs and priorities of their community while serving in the community’s best interest. They carry out a variety of responsibilities including:
developing and adopting a vision for the city; focusing and aligning plans, policies, agreements and budgets in furtherance of this vision; and holding themselves and
the city manager accountable for results.

Exceptional councils understand that the city manager
is responsible for the day-to-day operations of the city.

The city manager is responsible for undertaking and
accomplishing the policy objectives of the council.

Exceptional councils recognize the subject matter expertise of staff and utilize their knowledge and experience to
guide and inform decision making.

KEY CHARACTERISTICS

 Understand the role of local
government and their responsibilities.
 Know their role- to set vision and policy,
avoid micromanagement.
 Councilmembers should strive to be
informed about the issues facing the
city and be prepared to ask questions of
staff and each other.

BEST PRACTICE TIPS

Create a shared understanding of the city manager’s role and the council’s expectations to optimize the working relationships. This shared understanding is informed by local charter and ordinance provisions that provide the overall framework for the relationship. The council should make time to have conversations during retreats and or study sessions to define and/or reveal and refine their role and responsibilities. Since role clarity between the city council and city management is critical to mutual success, having clear protocols helps avoid misunderstandings.

ATTACHMENT A
Attributes of Exceptional Councils

3 3. Exceptional councils honor the
relationship with staff and each other

Exceptional councils understand that a good working
relationship with staff is vital for the city to be run successfully. Exceptional councils treat each other and staff with dignity and respect. They act with civility and a high level of professional decorum. Councilmembers
build trust by not playing the “gotcha game” and strive to have a no secrets, no surprises approach as an operating norm. Finally, they respect the diversity of styles and perspectives among their colleagues and staff and are
open to new ideas.

KEY CHARACTERISTICS

 Councilmembers have the ability to
respectfully disagree (to disagree
without being disagreeable).

They are able to leave it at the dais;
debates are about policy, not
personality.
 Exceptional councilmembers reflect
positive decorum/model of leadership
by providing respectful tone with
colleagues.
 Establish a set of behaviors ahead of
time, potentially documented in a code
of conduct, to help promote civility and
respect.

BEST PRACTICE TIPS

Set council priorities and strategic goals at an annual meeting; these goals and priorities are a tool to guide the city manager and staff on where to focus their efforts. This annual meeting provides time for the council to reflect on community priorities as well as offer an opportunity to discuss thei r decorum and their relationship among each other and the relationship between the city manager/staff and the council.

4. Exceptional councils routinely conduct
effective meetings

Open and public meetings are central to democratic
decision-making. Exceptional councils master the art
of effective meetings. They develop and adhere to meeting protocols and processes. They spend time planning and
organizing the agenda with the aim of having a more
focused meeting. They allocate the council’s time and
energy appropriately (focused on the council’s role and responsibilities) and meeting short- and long-term priorities.

They honor the public’s participation and engagement
and they generally start on time and are held during
reasonable hours.

Exceptional councils use public meetings not only for their intended purpose, information sharing and decision-making,

KEY CHARACTERISTICS

 Councilmembers are respectful of each
other, the public and everyone’s time.
 Councilmembers use engaging body
language as a way to demonstrate
respect.
 Issues are not personalized, thoughtful
dialogue is the objective.
 Agenda packets are read,
councilmembers come prepared and
have an open mind
 Respect is demonstrated for varied
opinions.
 Everyone strives to be civil and act with
decorum.

ATTACHMENT A
Attributes of Exceptional Councils

4 but they also use the meeting to demonstrate respect and civility for each other, staff and the public. Exceptional councilmembers prepare in advance of the meeting, remain focused on the city goals and objectives and mindful of their role and responsibilities.

BEST PRACTICE TIPS

Develop and adopt (with regular reviews and updates), guidelines for conducting meetings and making decisions. These governance protocols typically address meeting procedures (agenda preparation, how to put issues on the agenda, debate and voting procedures (parliamentary rules) and standards of decorum (civility)). As part of a regular self-assessment, councils should evaluate their meetings and their effectiveness and adjust behavior and practices for better results .

5. Exceptional councils hold themselves
and the city accountable

Exceptional councils operate openly, ethically and work to engage the community in a myriad of decisions impacting the prosperity and well-being of their community. Toward that end, exceptional councils consistently provide short- and long-term strategic direction and goals, as well as provide budget, program and policy oversight.

Exceptional councils hold themselves accountable for the conduct, behavior and effectiveness of the council. They establish clear priorities and goals and hold the city
manager accountable for results. And finally, they embrace accountability as a process and tool to calibrate ongoing efforts to address and meet policy and program objectives.

KEY CHARACTERISTICS

 Councilmembers operate ethically and
with integrity.
 Councils conduct team building / goal
setting exercise to track progress
towards mutually agreed upon goals
 Councils taking responsibility for the
results (good and bad).
 Councils celebrate success.
 Councilmembers hold themselves
responsible for adhering to operating
protocols and codes of conduct.

BEST PRACTICE TIPS

Annually evaluate council and city manager performance toward achieving the city’s priorities and goals (consider having this be part of an annual goal setting meeting). Council should consider assessing its own behavior and effectiveness as part of its annual self-assessment.

ATTACHMENT A
Attributes of Exceptional Councils

5 6. Exceptional councils have members
who practice continuous personal
learning and development

Governance is not intuitive. In addition, the policy and economic environment impacting cities are ever changing.

Exceptional councils continually provide the opportunity to build their knowledge and skills, to enhance their
understanding of key issues, increase their awareness
of best practices and sharpen their leadership and
governance skills.

KEY CHARACTERISTICS

 Stay informed on key issues
 Gain key insights and knowledge on all
aspects of governing, from budgets to
plans and everything in between.
 Learning to listen is sometimes more
important than learning to give a
speech.

BEST PRACTICE TIPS

Seek out national, state and local professional growth and educational opportunities. These opportunities can focus on the nuts and bolts of governing to helping you gain valuable information and/or insights on key policy issues facing your city. In addition, city run orientations for newly elected officials provide a good way to acclimate new members to the council’s norms and protocols as well as the budget and key policy issues.

ATTACHMENT A
Financial Responsibilities and City
Revenues Workshop

ATTACHMENT A
The California Municipal
Revenue Sources Handbook

FIFTH EDITION
Michael Coleman

ATTACHMENT A
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Chapter 1

MILESTONES IN
MUNICIPAL REVENUES:

A Historical Perspective
The backdrop of any discussion of municipal revenues must be the state-local relationship and the provisions of the California Constitution that govern the relationship. This relationship has evolved over time, marked in recent decades by several landmark constitutional amendments. Consequently, today’s municipal revenue landscape is not the same as your grandmother’s or even your mother’s.

In California’s early years of statehood, local government authority was strictly controlled by the state government, and local affairs were the frequent subject of meddling by the Legislature. California governors and legislators often displayed a deep distrust of local affairs, while local officials sought more latitude in municipal policy and public services.

Chapter 1

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The 1879 California Constitution
Thirty years after California’s admission to the union, the second (and current) California Constitution was adopted by the Constitutional Convention during a turbulent period in the state’s political history. That adoption created, for the first time, substantial and meaningful home rule for California’s local governments. The 1879 Constitution included five provisions limiting the power of the Legislature to interfere with the affairs of cities and vested in cities extensive powers of self-government.

This Constitution prohibited the state from imposing a tax for local purposes, but enabled the state to authorize local governments to impose them.

Over the next several decades, local taxation authority was expanded to general law cities. In 1903, in a case upholding the City of Los Angeles’ business license tax, the California Supreme Court stated unequivocally that local taxation is a municipal affair under article XI, §5 of the
California Constitution. Later, in 1982, the Legislature conferred on general law cities by statute the authority to adopt any tax that could be adopted by a charter city.

A 1910 ballot measure known as the “Separation of Sources Act” made the property tax a local government revenue source and established the principle of separate revenue sources for state and local governments.

The property tax was ideally suited to fund critical local general services such as law enforcement, jails, fire protection, parks, libraries, schools, hospitals and public health. This concept of the property tax as the largest, most durable and essential source of local government funding would stand for 68 years, until Proposition 13 drastically altered California local government finance.

In 1914, the California Constitution was amended to provide charter cities with the authority to “make and enforce laws and regulations in respect to municipal affairs, subject only to the restrictions and limitations provided in their several charters.” It established the power of charter cities to adopt their own laws with respect to municipal affairs, including flexibility in organizational and program design, latitude to regulate certain activities and the authority to determine spending levels and priorities. But local authority in municipal affairs remained subject to state pre-emption as to matters of statewide concern. In the event of a conflict between a charter city law and state law, the court must decide whether the state law prevails (because it is a matter of statewide concern) or the local law prevails (because it is a municipal affair). Thus, the dynamic interpretation of “matters of statewide concern” and “municipal affairs” controls the scope of home rule.

Property Tax, $8,725, 13%
Sales Tax, $6,349, 9%
Business Lic. Tax, $1,274, 2%
Utility User Tax, $1,794, 3%
Transient Occup. Tax, $1,855, 3%
Doc./Prop.Transfer Tax, $586, 1%
Other Tax, $503, 1%
Franchises, $1,166, 2%
State & Federal, $193, 0%
Other General Revs., $821, 1%
Property Tax - GO Bond, $585, 1%
Licenses & Permits, $839, 1%
Fines & Forfeitures, $400, 1%
Investments, Rents & Royalties $849, 1% State Grants
$2,744 , 4%
Federal Grants
$2,932, 4%
Special Taxes
$2,810, 4%
Development Fees & Permits
$906, 1%
Fees $5,189, 8%
Airports, Ports & Harbors
$2,782, 4%
Sewer Fees
$3,873, 6%
Solid Waste Fees
$1,991, 3%
Water Fees
$4,772, 7%
Electric & Gas
$6,523, 10% Other Non-Discretionary,
$5,031, 8%
Investments, Rents & Royalties, $577, 1%
Source: Author’s computations of data reported to California State Controller.

Beneﬁt Assessments, $963, 1%
California City Revenues
FY 2016–17 (excluding the city and county of San Francisco) Discretionary
Revenues

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Statewide Concerns and Municipal Affairs
Although cities achieved greater local fiscal authority to determine service levels and levy local taxes and charges, state fiscal rules and constraints have often dominated. In 1935, the state pre-empted the local taxation of motor vehicles as real property and established a statewide uniform value-based tax on motor vehicles, known as the “motor vehicle in-lieu tax” or Vehicle License Fee (VLF), which it then allocated to cities and counties based on their share of county population.

In 1955, the Legislature passed the Bradley-Burns Uniform Sales and Use Tax Act, pre-empting then-existing local sales taxes and providing for a uniform, statewide system of sales taxation and collection. The Bradley-Burns Act authorized cities to adopt local sales and use tax rates up to 1 percent of taxable sales transacted in their jurisdictions to be administered and allocated by the state. The amounts of revenue remained intact, and the use of those revenues remained at local discretion.

These changes attempted to strike a balance between accommodating the needs of the modern industrial economy for uniform practices and procedures with California’s continuing commitment to meaningful local control of local government finance. They also attempted to address the important issues of taxpayer ease, uniformity and simplicity, but had the accompanying effect of centralizing fiscal authority with the Legislature and Governor while constraining local fiscal authority.

Through both Democratic and Republican administrations in the 1950s and 1960s, federal and state policy initiatives meant additional money and additional incentives, but also additional mandates for municipalities. In 1972, the Legislature responded to the vocal concern of local government over the costs of state mandates by passing SB 90 (Chapter 1406, Statutes of 1972), requiring the reimbursement of costs to local agencies for state-mandated programs. The following year, the Legislature required cost estimates of all legislation having a financial impact on local government. In 1979, mandated reimbursement, as required in SB 90, was added to Article XIII B of the California Constitution as a part of Proposition 4. The obligation to reimburse was further strengthened by Proposition 1A in 2004.

Property Tax Limits and Voter Approval of Special
Taxes: Proposition 13 (1978)
In 1978, a simple majority of California voters approved Proposition 13, seeking property-tax relief and uniformity, but with far-reaching consequences, some unintended. Proposition 13 reduced property tax revenues by more than half and effectively abolished any local control with regard to the property tax. Local governments still have wide latitude on the spending of the remaining revenues they receive, but the allocation of the tax is controlled by the Legislature. Occasional proposals by the Legislative Analyst or individual policymakers to delegate more authority over property tax allocation to local governments tend to be met with resistance from local officials who fear the local conflicts and power struggles that would ensue in nearly any discussion of revenue reallocation.

Six Provisions of Proposition 13 Affecting Local Finance

1. One percent rate cap. Proposition 13 capped, with limited exceptions, property tax rates at 1 percent of full cash value at the time of acquisition. Prior to Proposition 13, local jurisdictions independently established their tax rates and the total property tax rate was the composite of the individual rates.

2. Assessment rollback. Proposition 13 rolled back property values as determined for tax purposes to their FY 1975–76 level.

3. Reassessment upon change in ownership. Proposition 13 replaced the practice of annually reassessing property at full cash value with a system based on cost at acquisition. Under Proposition 13, property is assessed at market value for tax purposes only when it changes ownership. Subsequent annual values are limited to this “base year” amount plus an annual growth factor of 2 percent or Consumer Price Index (CPI), whichever is less.

4. Responsibility for allocating property tax transferred to the state. Proposition 13 gave state lawmakers responsibility for allocating property tax revenues among local jurisdictions. Prior to Proposition 13, jurisdictions established their tax rates independently and their property tax revenues depended on the rate levied and the value of the property located within the boundaries of the jurisdiction.

5. Voter approval for special taxes. Proposition 13 requires two-thirds voter approval for taxes raised by local governments for a designated “special” purpose.

6. Taxes imposed by the Legislature require a two-thirds vote of the Legislature.

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Prior to Proposition 13, effective total property tax rates varied, but averaged about 2.5 percent of market value. The 1 percent limitation and the rollback to FY 1975–76 assessed values resulted in an immediate 57 percent reduction in property tax revenues statewide.

In FY 1979–80, the Legislature used its authority to allocate property tax revenues to cushion the fiscal impact of Proposition 13 on local governments. In what is often called the “bailout,” the state was able to shift about $2.7 billion of annual ongoing financial resources to local governments in part because of the state’s $5 billion surplus (about 40 percent of annual revenues) and the $1 billion-plus annual revenue boost it received from higher personal income taxes due to lower taxpayer deductions for property taxes. As a result, city property tax Effects of Proposition 13 Trends in California Municipal Finance • Lowered tax burden for elderly and
low-income homeowners (proportionate to
income)
• Disparate treatment of similarly situated
properties
• Disconnect between service costs and
revenues deters balanced planning
• Local agency property tax revenues cut
by nearly 60 percent
• Tax rates and shares out of sync with service
demands
• Greater reliance on state General Fund for
county and school spending
• Cities and counties increased reliance on fees
and local taxes
• Decline in predictable discretionary funding
for key services
• Sales tax revenues decreasing in service-
oriented economy
• Population growth increasing service
demands
• Public safety and homeland security costs
increasing
• Infrastructure cracking under neglect
• New technologies leading to new
infrastructure demands
• Environmental degradation (air and water
pollution) requiring expensive mitigation
• Continued fragmentation of local finance
among overlapping agencies
losses from Proposition 13 were about 28 percent less than they might have been.

In addition to the bailout, the Legislature established a system for allocating property taxes. In what was intended as a permanent resolution to the issue of how to distribute significantly reduced property tax revenues, this solution, AB 8 (Chapter 282, Statutes of 1979), reduced school shares of property tax revenues and gave cities, counties and special districts greater shares. In return, the state assumed a larger financial responsibility for K-14 schools. The state also increased its share of costs for a number of social service and health programs operated by counties.

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Despite these efforts to cushion its impact, Proposition 13 dealt a major blow to local fiscal autonomy. As the California Supreme Court noted in its 1991 decision upholding AB 8’s property tax apportionment system, Proposition 13 “prevails over the preexisting taxing power” of cities. In a 1994 ruling upholding the state’s shift of property tax revenues from local governments (the infamous educational revenue augmentation funds (ERAF) shift), the court noted that the taxing powers of local governments are “derived from the Constitution upon authorization by the Legislature.” The state was handed the authority to determine each local agency’s share within the 1 percent umbrella for all taxing agencies. There is no local authority to reallocate property tax revenue among local agencies (even those providing “city” services such as fire, parks or libraries). Thus, where once a community could devote more or less property tax revenue to fire services versus libraries versus schools, now all communities are constrained by taxing decisions made by leaders of a generation ago, when California was a very different place socially, economically and politically.

By capping the property tax rate at 1 percent, Proposition 13 denied even local voters the authority to impose a higher property tax. The only exception to the 1 percent cap in Proposition 13 was for indebtedness approved prior to July 1, 1978. This effectively repealed the authority of a local agency to, with two-thirds voter approval, levy a rate to repay bonded indebtedness, authority which was established in the 1879 California Constitution. In 1986, California voters altered that aspect of Proposition 13 with the passage of Proposition 46, restoring the authority of local agencies, with two-thirds voter approval, to enact a property tax rate override to repay bonded indebtedness issued for the acquisition or improvement of real property.

The Gann Limit
Following up on their success at limiting taxes, taxpayer advocates in 1979 convinced California voters to approve a measure aimed at limiting government spending. Conceived by tax activist Paul Gann, Proposition 4 set tax expenditure limits on the state and local governments based on the proceeds they received from taxes in FY 1978–79, increasing with changes in population and inflation. In any year, an agency may not appropriate tax proceeds in excess of this limit unless an override, lasting a maximum of four years, is approved by a majority of voters.

In 1990, voters approved Proposition 111, which, among other things, altered the spending limit, making the limit more accommodating of local revenue growth.

The 1980s: State Fiscal Retrenchment,
Local Fiscal Innovation
In the years following Proposition 13, local governments faced substantially constrained revenues both from reduced property tax revenues but also from substantial reductions in state and federal aid. The state, after shifting resources to cushion the local impact of Proposition 13, found itself at times in fiscal trouble and repealed various state aid programs and even shifted local revenues to state coffers. Over the fiscal years 1981–82, 1982–83 and 1983–84, the state shifted more than $700 million of VLF revenues from cities, revenue that had never before gone to the state General Fund.
1 During these years,
the state also repealed an assortment of local aid subventions including:
the Highway Carriers Uniform Business Tax, Liquor License Fees, Financial Aid to Local Agencies (bank in-lieu subvention) and Business Inventory Exemption Reimbursements. Most of these payments had been put in place to reimburse local governments for the state establishing a uniform statewide tax in lieu of local taxes or the state exempting some category of taxpayers.

Local governments responded by increasing various fees to recover full costs and eliminate subsidies. They sought out ways to raise existing taxes such as business licenses and hotel taxes. Many adopted new taxes such as utility user taxes, admission and parking taxes. With statutory authorization from the Legislature, they adopted new forms of assessments to provide needed funds for such things as streets, parks, lighting and landscaping.

The Courts Weaken Local Fiscal Authority
Meanwhile, local control over fiscal matters continued to weaken.

Proposition 13 had shifted the power to allocate what had been the number one source of discretionary local revenue, property taxes, to the Legislature. Subsequent court decisions further weakened local fiscal

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autonomy. In 1991, the California Supreme Court gave the state wider latitude to define a “matter of statewide concern” at the expense of home rule authority in fiscal affairs. In California Federal Savings & Loan v. Los Angeles, the court acknowledged that local taxation is generally a municipal affair, but declared the state’s system of taxation of financial institutions to be a matter of statewide concern. The court concluded that the conflicting charter city measure ceased to be a municipal affair and the Legislature was not prohibited by the Constitution from addressing the statewide dimensions of its own enactments. Assuming that financial institutions should be subject to a limited amount of taxation, the state decided that permitting local governments to receive a portion of these revenues through local taxation would interfere with the state’s ability to raise revenues for its own purposes.

Majority Vote for Taxes in General Law Cities and
Counties: Proposition 62 (1986)
Reacting to the various forms of new local taxes and increases in fees in the wake of Proposition 13, the Howard Jarvis Taxpayers Association and other taxpayer groups responded with several follow- up initiatives. Proposition 62, a statutory initiative, passed in November 1986, restating the super-majority vote requirement for special taxes, imposing a majority vote requirement for general taxes, and prohibiting the imposition of taxes on the transfer of real estate. For nearly a decade, the applicability of Proposition 62 remained uncertain in the face of various court cases. Most provisions were eventually superseded by Proposition 218 in 1996.

Educational Revenue Augmentation Funds
The most dramatic example of the shift of power from local governments to the state is the Legislature’s use of local property tax to balance the state’s budget troubles beginning in the early 1990s.

Despite major changes in local priorities and needs, the apportionment formulas for property taxes had remained largely unchanged since AB 8. In 1978, neither the pundits nor the authors of Proposition 13 envisioned the Legislature using the power to allocate local property tax revenue given to it by Proposition 13 as a means to take local tax revenues to meet its own financial needs. But in 1992, facing a serious state General Fund deficit, the state Legislature turned to these powers as a remedy.

To meet its obligations to fund education at specified levels under the Proposition 98 educational funding formulas, the state enacted legislation that shifted partial financial responsibility for funding education to local government (cities, counties and special districts).

The state did this by instructing county auditors to shift the allocation of local property tax revenues from local government to educational revenue augmentation funds (ERAFs), directing that specified amounts of city, county and other local agency property taxes be deposited into these funds to support schools.

In FY 2011–12, the annual impact of the ERAF shift was a shortstopping of some $7.3 billion from cities, counties, special districts and the citizens those entities serve. Counties have borne some 74 percent of this shift; cities have borne 16 percent.

The state has provided some funding to local governments that is considered by most to be mitigation of ERAF. However, the vast majority of these funds are earmarked for particular purposes. Moreover, a relatively small portion of these funds has gone to cities. In 1992, California voters approved Proposition 172, which provided sales tax funding for police, fire and other public safety programs. (See section

6.05 of Chapter 6.) In FY 2011–12, Proposition 172 funds provided only $2.5 billion annually to local government, leaving a $4.8 billion net ERAF gap. Considering all state subventions that the Legislative Analyst defines as “ERAF mitigation,” the net ERAF impact on cities was nearly $900 million in FY 2017-18.
2 As a part of the budget agreement that put Proposition 1A of 2004 on the ballot to protect city revenues from additional shifts and state takeaways, cities, counties and special districts agreed to contribute an additional $1.3 billion per year in FY 2004–05 and FY 2005–06. Although these ERAF III shifts ended in FY 2006–07, the original ongoing shifts that began in fiscal years 1992–94 have not been reduced.3

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Voting on Taxes, Assessments and Property
Related Fees: Proposition 218 (1996)
In November 1996, California voters approved Proposition 218, expanding restrictions on local government revenue raising by adding Article XIII C and Article XIII D to the California Constitution. The measure allows voters to repeal or reduce taxes, assessments, fees and charges through the initiative process; reiterates the requirement for voter approval for both “special taxes” and “general taxes;” and imposes procedural and substantive limitations on benefit assessments imposed on real property and on certain types of fees.

Proposition 218:
• Establishes a clear constitutional standard distinguishing locally imposed general taxes from special taxes and imposing a majority voter requirement for general taxes (which had already existed for general law cities under Proposition 62) and a supermajority requirement for special taxes (which had already existed under Proposition 13);
4 • Provides citizens with the power to repeal taxes, assessments, fees and charges that are subject to Proposition 218;
• Establishes a formal balloting procedure for the adoption of benefit assessments imposed on property;
• Requires a distinction between special benefits and general benefits with regard to assessments and prohibits the funding of general benefits from property assessments;
• Requires the assessment of public property within an assessment district;
• Places the burden of proof for demonstrating special benefit on the local agency imposing the property assessment; and
• Establishes a new category of fees called “property-related fees” and requires new approval procedures and substantive provisions for those fees.

Constitutional Protection of Local Revenues:

Proposition 1A (2004) and Proposition 22 (2010)
Reacting to continued state shifts of local property tax revenues, the deterioration of local control of fiscal matters and the substantial limitations imposed by Proposition 218, the League of California Cities, the California State Association of Counties (CSAC) and the California Special Districts Association (CSDA) crafted a local revenue protection initiative, Proposition 65, and garnered enough signatures to qualify the proposition for the November 2004 ballot. Gov. Arnold Schwarzenegger, who had recently taken office in the November 2003 recall of Gov.

Gray Davis, immediately signaled his opposition to the measure but a willingness to support a new mutually crafted local revenue protection measure as a part of a larger state-local fiscal restructuring package to include local contributions to assist the state budget problem over two years.

With the active involvement of legislative leadership, the Schwarzenegger Administration, the League, CSAC and CSDA worked on an alternative to Proposition 65 that became Proposition 1A. The Legislature placed the measure on the November 2004 ballot. As part of the 2004 state-local agreement, the state shifted $1.3 billion of local property tax revenues in FY 2004–05 and again in FY 2005–06 (known as ERAF III). In addition, the state General Fund backfill to cities and counties for state cuts of the VLF was eliminated and instead cities and counties were given additional annual property tax revenues. See section 6.01 of Chapter 6. Finally, local government associations agreed to abandon support of Proposition 65 and Governor Schwarzenegger agreed to actively support Proposition 1A.

In November 2004, the voters of California approved Proposition 1A with an unprecedented 84 percent of the yes vote, constitutionally protecting major city revenues from additional shifts to the state and strengthening local governments’ ability to get reimbursement for unfunded mandates. In 2010, voters passed another measure to protect local government finances. Proposition 22 prohibits the state from borrowing, delaying or taking certain funds allocated to local

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governments and eliminated a provision of Proposition 1A allowing the state to borrow a limited amount of property tax revenue under certain conditions. Together, these measures:
• Strengthen prohibitions against unfunded state mandates by requiring the state to suspend state mandates in any year the Legislature does not fully fund those laws.
5 • Expands the definition of state mandate to include transfer of responsibility of a program for which the state previously had full or partial responsibility.
• Prohibits the state from:
• Reducing the local Bradley-Burns Uniform Sales and Use Tax rate or altering its method of allocation. Exception to comply with federal law or an interstate compact;
• Decreasing VLF revenue from the 0.65 percent rate without providing replacement funding to cities and counties;
• Shifting property taxes from cities, counties or special districts; • Failing to reimburse cities and counties for the 0.25 percent local sales tax shifted under the Proposition 57 Sales Tax Triple Flip; and
• Borrowing, delaying or taking motor vehicle fuel tax allocations, gasoline sales tax allocations, public transportation account funds or redevelopment agency property tax increment.

Sales and Use Tax Rate and Allocation Method. Generally, revenue from the 1 percent Bradley-Burns Local Sales and Use Tax is allocated to the city in which the sale occurs, or, if in an unincorporated area, the county. Proposition 1A prohibits the Legislature from reducing the local sales tax rate or changing the method of allocation of local sales tax revenues. Proposition 1A permits the Legislature to change the method of allocation in order to comply with federal law or an inter-state compact.

Local Transactions and Use Tax Authority. Proposition 1A prohibits the state from restricting the authority of a local government to impose transactions and use taxes pursuant to Revenue and Taxation code §7251 or altering the method of allocation of these tax revenues.

Local Sales Tax Reduction Under the Proposition 57 Triple Flip. In March 2004, California voters approved Proposition 57, the California Economic Recovery Bond Act. Legislative provisions implementing Proposition 57 authorized the state to reduce local sales tax and replace it with a state special fund sales tax to repay the bonds effective July 1, 2004. The so called “triple flip”:

1. Reduced the Bradley-Burns Local Sales and Use Tax Rate by one- quarter cent and simultaneously increased the state’s sales tax rate by one-quarter cent to fund fiscal recovery bond repayment;

2. Repaid to cities and counties with additional local property tax previously allocated to local schools; and

3. Repaid to local schools with state General Fund.

Proposition 1A prohibits the Legislature from extending this reduction in local authority to impose the full Bradley-Burns Sales and use tax rate beyond the period necessary to repay the Proposition 57 bonds. The Proposition 57 Sales Tax Triple Flip ended when the economic recovery bonds were fully paid in 2016.

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Vehicle License Fee. Proposition 1A requires the Legislature to provide replacement revenue to cities and counties if it reduces the VLF rate below 0.65 percent. California Constitution Article XI §15 requires that VLF revenue be allocated to cities and counties. The state may charge for administrative costs (DMV, Controller) and the Legislature retains the power to change state law allocating the VLF among cities and counties.

See section 6.01 for more on the VLF.

Property Tax. Proposition 1A prohibits the Legislature from reducing the share of property tax revenues going to cities, counties and special districts, and shifting those shares to the schools or any other non-local government function. However, the Legislature may alter the allocation of property taxes among cities, counties and special districts with two- thirds approval in each house. Proposition 1A also contained provisions allowing the state to borrow up to 8 percent of city, county and special district property tax revenues in one year under specific conditions. The Legislature invoked this option as a part of the 2009 Budget Act. The loan, used to finance annual operations in FY 2009–10 was fully repaid with interest according to law in June 2013. Proposition 22 (2010) prevented this from occurring again by eliminating this property tax loan option. See section 2.01 for more on the property tax.

Proposition 1A did not provide local governments with any new revenue nor reduce or alter the ERAF I and II shifts.

Refining the Definition of “Tax”
Proposition 26 (2010)
In November 2010, California voters passed Proposition 26, which added a definition of “tax” to the California Constitution. The new provisions state that a government-imposed charge, levy or exaction of any kind is a tax unless it falls into one of seven express exceptions.

The effect of the measure was to particularly tighten the definition of regulatory fees and certain assessments.

The Great Recession and the Dissolution
of Redevelopment
Despite the substantial protections provided to local governments by Propositions 1A and 22, threats to local finances continued. Local budgets struggled from the impacts of the great recession, mounting costs of pensions and unfunded public employee retiree health benefits.

Three large cities, unable to balance their budgets without violating legal payment obligations and unable to garner sufficient concessions from labor and other creditors, entered into bankruptcy proceedings.

Others cut public services to unprecedented low levels.

Meanwhile, the State Budget Act of 2011 included a major realignment of corrections and law enforcement programs to counties with potential crime impacts in local communities. Counties sought assurances that adequate funding would also be provided. In last minute “gut-and- amend” legislation, all remaining city VLF funds were shifted to pay for state law enforcement grants to locals that had previously been funded by the state general fund. This wiped out allocations to new cities and annexations that had compensated for a flaw in the 2004 VLF-Property Tax swap.

With the 2011 Budget Act, Gov. Jerry Brown also signed into law two bills aimed at extracting revenues from redevelopment agencies to help remedy the state’s ongoing budget deficit. The legislation provided that each redevelopment agency must agree to make substantial annual payments to aid the state or dissolve as of October 1, 2011.

On December 29, 2011, the California Supreme Court upheld the constitutionality of dissolution of redevelopment while striking down the payment scheme. Approximately 400 redevelopment agencies dissolved on February 1, 2012, with the assets and liabilities transferred to successor agencies and successor housing agencies.

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But in November 2012, the state’s fiscal woes took a major turn for the better. Following substantial cuts in state programs, voters approved Proposition 30, temporarily increasing state sales and income tax rates.

The state budget was more easily balanced and the Legislature began fully paying down over $30 billion in accumulated budgetary debt. In 2016, voters approved Proposition 55 to extend Prop 30 through 2030.

The Road Ahead for California Local Finance
Local revenues are now more stable and protected than ever before.

Substantial constitutional limits have been placed on the Legislature’s ability to take or shift local revenues. The state’s fiscal condition has improved thanks to major program reductions in many areas, an infusion of temporary taxes that will pay off a mountain of accumulated budgetary debt and a gradually improving economy.

But major risks and uncertainties persist. While Proposition 30 and Proposition 55 have seemingly provided a reprieve, the state continues to struggle with the funding of corrections, health care, education, public employee benefits and major infrastructure. Substantial unbudgeted liabilities loom in teacher and state employee retirement systems. The state’s long term budgetary balance remains cloudy.

The finances of local agencies face similar challenges. Many local agencies are grappling with major unbudgeted liabilities in the areas of post employment benefits (especially healthcare) — pension plan cost increases due to lower investment earnings, greater longevity and unsustainable benefit levels previously granted, especially in the areas of police and fire. Local public works systems face major improvement needs in many areas.

Threats to the ability of communities to finance local services through locally levied taxes and other sources of revenue are likely to continue.

Local governments will continue to grapple with evolving local public service needs and a local revenue portfolio that fluctuates with economic and socio/technical changes. Rather than make necessary effective reforms, the Legislature usually chooses expedient, ineffective “band-aid” remedies to serious local finance issues.

While local revenues are returning on the heels of a slowly recovering economy, public employee pensions and retiree health care costs are outpacing this revenue growth. The specter of a recession in the next decade also foreshadows more municipal insolvencies. Municipal fiscal sustainability is a critical issue.

As always, skilled finance and management is essential to move forward through this. This handbook is designed to help you find your way.

For More Information:

Financing California Cities - Overviews and Primers. http://www.californiacityfinance. com/#FINCITIES
Proposition 26 and 218 Implementation Guide. League of California Cities. May 2017. http://www.calcities.org/Prop218andProp26
Proposition 218 Implementation Guide for Special Districts. Kelly Salt. California Special Districts Association. 2013. https://www.waterboards.ca.gov/waterrights/water_issues/ programs/drought/pricing/docs/csda_guide_proposition_218.pdf Current Developments Under Propositions 13, 62, & 218 by Michael G. Colantuono. http://www.cllaw.us/papers-library/#Finance
California Municipal Law Handbook, Chapter V., League of California Cities .

Proposition 26 and Proposition 218 Implementation Guide, League of California Cities, 2019 Edition.

Guide to Local Government Finance in California, Second Edition, Multari, Michael, Michael Coleman, Kenneth Hampian, and Bill Statler, Solano Press Books, 2017.

Endnotes
1 Subsequently, in 1986, the voters approved Proposition 47 which requires that VLF revenues be allocated to local governments.
2 Cities not including the city and coun ty of San Francisco. 3 Subsequent to the transfer of these funds, they are reallocated within each county back to cities and counties to compensate for the state’s repeal of the VLF backfill in 2004 and the temporary one-quarter cent sales tax shift to support the state deficit reduction bonds. However, this mechanism does not alter the existence or real effect of the ERAF I and II shifts. 4 In 1982, the St ate Supreme Court decided City and County of San Francisco v. Farrell, which defined the term special tax as any tax earmarked for a specific purpose. Under Proposition 13, a special tax requires the approval of two-thirds of voters.
5 Proposition 1A does not apply to mandates affecting local schools or mandates related to employee relations and collective bargaining.

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TAXES
A tax is a monetary imposition by a government on persons or property for the purpose of raising revenue to support the purposes of the government.
1 In contrast to an assessment
or a fee, a tax need not be levied in proportion to specific benefit to a person or property. Fees or charges will be considered taxes to the extent they exceed the reasonable cost of the service, commodity or facility for which they are imposed.

California cities do not have an inherent power to tax. Charter cities are given the power to tax pursuant to Article XI, §5 of the California Constitution and may levy taxes for municipal purposes without specific authorization from the Legislature. As authorized in state statute, a general law city, with certain exceptions, may levy any tax that a charter city may levy.
2 State law may set certain limits and
procedures and may exempt certain activities from taxes levied by general law cities. These laws apply to charter cities in matters that the courts have determined are of statewide concern.

Chapter 2
“The nation should have a tax system that looks like
someone designed it on purpose.”
— WILLIAM SIMON

ATTACHMENT A
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Chapter 2: Taxes
• A special tax is a tax that is collected and earmarked for a specific purpose and deposited either into a separate account or the General Fund. A two-thirds vote of the electorate is required to impose, extend or increase any special tax.

Proposition 26: Defining a Tax By What it is Not
California voters approved Proposition 26 in November 2010, placing new rules into the California Constitution stating that a government- imposed charge, levy or exaction of any kind is a tax unless it falls into one of seven express exceptions.

1. A charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.

Specific Benefit Exception examples include fees for planning permits, restricted neighborhood parking permits and
entertainment and street closure permits.

2. A charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

Government Service or Product Exception examples include user fees for parks and recreation classes, utilities (other than those covered under number 7), public records copying fees, DUI emergency response fees and emergency medical and ambulance transport service fees.

General and Special Taxes
The passage of Proposition 13 in 1978 created a distinction between “general” and “special” taxes. Proposition 218, in 1996, further defined and established procedures for general taxes.
3 • A general tax is a tax imposed for general governmental purposes, the proceeds of which are deposited into the General Fund. A majority vote of the electorate (those voting on the measure) is required to impose, extend or increase any general tax.
» An election on a general tax must be consolidated with a regularly scheduled general election of city council members, except in cases of emergency, declared by a unanimous vote of the city council.
4 » Single-purpose special districts (special purpose districts) may not impose general taxes.

General Tax Special Tax
Use of Revenues • Unrestricted • Specific purpose
Governing Body
Approval
• General law cities: two-thirds
• Charter cities: majority
• Counties: two-thirds
• Transactions and Use Taxes: two-
thirds See section 2.03 of this
chapter.
• MajorityVoter Approval • Majority • Two-thirds
Other Rules • A general tax election must be
consolidated with a regularly
scheduled general election of
members of the governing body,
unless an emergency is declared
by unanimous vote (among those
present) of the governing body.
• Special tax funds must be deposited in a
separate account. The taxing agency must
publish an annual report including:
1) the tax rate; 2) the amounts of
revenues collected and expended and 3)
the status of any project funded by the
special tax.
5 ATTACHMENT A
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Chapter 2: Taxes
mitigation fees.

7. Assessments and property-related fees imposed in accordance with the provisions of Article XIII D (Proposition 218).

Proposition 218 Exception examples include assessments on real property for special benefit conferred, fees imposed upon a parcel or a person as an incident of property ownership, and fees for a property related service such as many retail water and sewer fees.

When is a Tax Imposed, Increased or Extended?
Under Proposition 218, no local government may impose, extend or increase any general tax until such tax is submitted to the electorate and approved.
6 A tax is “imposed” when the local tax ordinance is adopted, and each time a tax is collected.7 “Extend” means a decision by an agency to extend the stated effective period for the tax or fee or charge, including amendment or removal of a sunset provision or expiration date. 8 A tax is “increased” when an agency either 1) increases the rate used to calculate the tax, or 2) revises the methodology by which the tax is calculated if that revision results in an increased amount being levied on any person or parcel.
9 A tax is not “increased” if 1) it is imposed at
a rate no higher than the maximum rate previously approved, or 2) it is adjusted in accordance with a schedule of adjustments, including a clearly defined formula for inflation that was adopted prior to November 6, 1996.
10 However, a tax which is calculated by using a
percentage is “increased” when it is adjusted for inflation even if the voters approve the tax.11

3. A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof.

Permits and Inspections Exception examples include health and safety permits, building licenses, police background checks, pet licenses, bicycle licenses and permits for regulated commercial activities (such as massage establishments, card rooms, taxicabs and tow-truck operators).

For exceptions 1 through 3, the fee imposed must not exceed the agency’s reasonable costs.

4. A charge imposed for entrance to or use of local government property or the purchase rental or lease of local government property.

Local Government Property Exception examples include facility room rentals; equipment rentals; park, museum and zoo entrance fees; golf greens fees; on and off-street parking; and tolls.

5. A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law, including late payment fees, fees imposed under administrative citation ordinances, parking violations, etc.

Penalty for Illegal Activity Exception examples include parking fines, code enforcement fees and penalties, late payment fees, interest charges and other charges for violation of the law.

6. A charge imposed as a condition of property development.

Property Development Exception examples include planning fees, building permit fees, construction and grading permits, development impact fees, fees imposed by California Environmental Quality Act mitigation requirements and Quimby Act and park

ATTACHMENT A
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Chapter 2: Taxes
Additional Aspects of Municipal Taxation
in California
• A local tax can be reduced or repealed by initiative unless it supports bonded debt. Many taxes can be imposed or increased by initiative as well.
• Certain types of local taxes are specifically pre-empted by state law. These include taxes on cigarettes, alcohol and personal income.
12 • State law provides various additional procedural requirements for the enactment of some taxes depending on the type of tax. • If a local agency wants to collect a previously approved tax at a rate lower than was authorized by the voters, the agency should make it very clear in its official actions that the rate is being “suspended” for a certain period of time and not being permanently lowered. An agency that collects a previously approved tax at a rate lower than was authorized by the voters without a statement clarifying the intent and purpose of the suspension may trigger a Proposition 218 vote requirement when it begins collecting the tax at the previously approved rate. 13 For More Information:

Proposition 218 Implementation Guide, League of California Cities, 2007 Edition.

California Municipal Law Handbook, Chapter V, League of California Cities.

Proposition 26 Implementation Guide, League of California Cities, 2011 Edition. www. calcities.org/Prop26Guide.
“The power of taxing
people and their
property is essential to
the very existence of
government.’’
— JAME S MADISON,
U.S. PRE SIDENT

Applying Proposition 26
YES
NO
NO
NO
YES
YES
THEN ...

1. The Special Beneﬁt or Privilege Exception. Fees imposed that provide a special beneﬁt to the person paying the fee or directly grants the person some privilege. See Section 4.01.

2. The Government Service or Product Exception. Fees imposed for a speciﬁc government service or product provided directly to the person paying the fee. See Section 4.01.

3. The Regulatory Program Exception. Fees to cover reasonable regulatory costs of issuing licenses and permits, performing investigations, inspections and audits, and enforcement. See Section

4.04. 4. The Local Government Property Exception. Fees for the use of or entrance to local government property. See Section 5.06.

5. The Fines and Penalties Exception. Fines and penalties imposed for violations of the law. See Section 5.05.

6. The Property Development Exception. Fees imposed as a condition of property development. See Section 4.03.

7. The Proposition 218 Exception. Property assessments and property-related fees subject to the approval requirements of Proposition 218. See Section 4.02 (property related fees) or Section

3.01 (Assessments on Property).

If you have a charge imposed by a
government agency ...

It is a “tax.”
Voter approval is required.

See Chapter 2.

Was the fee or charge “imposed” (some government force or authority obliges the payer to pay the fee)
Under Proposition
26, it is NOT a tax
Was it authorized prior to
November 3, 2010 (the
eﬀective date of Prop. 26)
Does one of the seven
exceptions apply?
The fee may be implemented until it is
“increased” or “extended” by legislative
action.

ATTACHMENT A
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Chapter 3

BENEFIT ASSESSMENTS
Benefit assessments (also called “special assessments”) are levied to pay for specifically identified public improvements or services that specially benefit the properties or businesses subject to the assessment.

A number of state laws permit the imposition of assessments for various purposes. General law cities may impose an assessment under one or more of these laws, following the procedures and limitations set forth in that law. Charter cities may also use state laws, but often choose to enact and proceed under their own assessment laws. Local assessment laws adopted by charter cities are typically drafted to incorporate one or more of the statewide laws, but may include revisions to the incorporated law streamlining procedures or permitting the financing of additional improvements or services.
1 Generally, such local laws must comply with California Constitution Article XVI, Section 19.
“If it's a penny for your thoughts and you put in your two cents worth, then someone, somewhere is making a penny.”
― STEVEN WRIGHT

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Chapter 3: Benefit Assessments
Assessments Versus Fees and Taxes
The key distinction between a benefit assessment and other types of revenue measures, such as fees and taxes, is that an assessment is based upon the special benefit that a property (or business) will derive from the improvement or service provided by the assessment.

Benefit assessments may also be distinguished from “nuisance abatement assessments,” which are legally a form of regulatory fee (see Chapter Four, section 4.04) or other “assessments,” which are in the nature of a fine or penalty (see Chapter 5, section 5.05).

Proposition 218
Since the passage of Proposition 218 on November 5, 1996, (California Constitution Article XIII D), most special assessments are imposed on real property in five principal ways:

1. Subjects assessments to repeal or reduction by initiative unless they have been bonded, triggering the protection of the federal constitutional contract clause;

2. Establishes procedural requirements for the levy of assessments, including the requirement for majority property owner approval by a mailed ballot process;

3. Requires the local agency to separate the general benefits from the special benefits conferred on a parcel, and to only assess for the special benefit;

4. Forbids the use of assessments on private property to fund the portion of the special benefit of a project or program which accrues to public agency property and can be argued to limit the general rule of intergovernmental tax immunity to allow assessment of government property; and

5. Shifts the burden of proof in legal actions to contest the validity of an assessment to the assessing government.

Use of Initiatives to Reduce or Repeal Assessments
Proposition 218 provides that the initiative power may be used to reduce or repeal any local tax, assessment, fee or charge. 2 Source: CaliforniaCityFinance.com computations from data from California State Controller (revenues), California State Dept of Finance (population, CPI) Beneﬁt Assessment Revenues
California Cities (excluding the city/county of San Francisco) $20.98
$21.67
$23.38
$22.61
$26.20
$28.05
$25.64
$23.53 $21.63
$23.34
$22.80
$24.14 $26.52
$25.44
$28.88
$26.92 $26.68
$29.01 $28.07 $28.52 $28.75 $28.91
$27.96
$27.62 $30.51
$0
$4
$8
$12
$16
$20
$24
$28
$32
$0
$150
$300
$450
$600
$750
$900
$1,050
$1,200
FY91-92 FY92-93 FY93-94 FY94-95 FY95-96 FY96-97 FY97-98 FY98-99 FY99-00 FY00-01 FY01-02 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Revenues Per Capita Inﬂation Adj to 2016
Total Revenue in Billions (real $)
Total Per Capita Inﬂation Adjusted

ATTACHMENT A
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Chapter 4

FEES, CHARGES

AND RATES
Fees comprise a broad category of locally imposed revenues generally intended to recover all or a portion of a government’s costs for providing a service or access to public property or for mitigating the impacts of the fee payer’s activities on the community. A fee may not exceed the estimated reasonable cost of providing the service or facility for which the fee is charged.

Fees are sometimes called charges and are often called rates in the context of utility services. The term “fee” is used in this chapter .

The list of fees is extensive, and includes: user fees, such as for document processing or for recreation programs; enterprise service fees, such as water, sewer or refuse collection fees; regulatory fees, such as plan check fees, inspection fees, permit application fees and other fees imposed on regulated activities; and mitigation fees, such as those imposed to offset impacts resulting from new development. Fees in one category may have attributes of fees in another . Certain fees imposed for a property-related service are subject to specific procedural and substantive requirements of Proposition 218.

A fee may not exceed the estimated reasonable
cost of providing the service or facility for which
the fee is charged.

Thanks to Betsy Strauss, Dan Hentschke and Michael Colantuono for their contributions to this chapter.

ATTACHMENT A
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Chapter 4: Fees, Charges and Rates
Generally speaking there are two broad categories of fees and charges:
user fees and regulatory fees. User fees are charged for the use of a public service or program such as fees charged for recreation programs or public document retrieval. User fees for property-related services are referred to as property-related fees.

Regulatory fees are charged either to pay for the cost of a government program which regulates the activities of the fee payers or, if enacted prior to November 3, 2010, to mitigate the impact of the fee payer’s activities on the community. A development impact fee is a common fee which imposes a charge to defray the cost of the development on a public facility such as streets or schools.

All user fees and regulatory fees are subject to the same limitation: The amount of the fee may not exceed the “estimated reasonable cost” of providing the service, facility or program or (as in the case of regulatory fees) of mitigating the impact of the fee payer’s activity. “Estimated reasonable cost” may include reasonable administrative expenses and overhead. Revenues collected in excess of the service cost may be categorized as “taxes,” which require voter approval.
1 Regulatory fees must be reasonable, fair and equitable in nature and proportionately representative of the costs incurred by the regulatory agency for administrative enforcement and related adjudicatory activities.

The distinction between fees and taxes is frequently blurred, especially in the media and common discussion, but generally fees are imposed in return for a benefit conferred or privilege granted, while taxes are simply intended to collect revenue (see Chapter 2 for taxes). The legal distinction is important, however, because adoption procedures and other rules vary depending on the proper classification of the revenue. Fees must also be distinguished from assessments, which are levied strictly based on “special benefit” conferred, and fines, which are collected because of a violation of a law (see Chapter Three for assessments).

Although they are often called “fees,” charges for the use of public facilities such as for off-street parking, marina berth rates and facility rental are paid for the use of public property and are more similar to rent. Fees for the use of public property are considered rent and are generally set at the discretion of the public agency and are not subject to the requirement that revenues not exceed the costs of service (see Chapter 8, section 5.06).

Proposition 26: Defining a Tax By What it is Not
Proposition 26, approved by the voters on November 2, 2010, provides further distinctions among these categories of revenues. The constitutional measure stipulates that a government-imposed charge, levy or exaction of any kind is a tax unless it falls into one of seven express exceptions.

Specific Benefit Exception examples include fees for planning permits, restricted neighborhood parking permits and
entertainment and street closure permits.

Government Service or Product Exception examples include user fees for parks and recreation classes, utilities (other than those covered under number 7), public records copying fees, DUI emergency response fees, and emergency medical and ambulance transport service fees.

ATTACHMENT A
87 |

For exceptions 1 through 3, the fee imposed must not exceed the agency’s reasonable costs.

4. A charge imposed for entrance to or use of local government property or the purchase, rental or lease of local government property.

Local Government Property Exception examples include facility room rentals; equipment rentals; park, museum and zoo entrance fees; golf greens fees; on and off-street parking; and tolls.

5. A fine; penalty or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law, including late payment fees, fees imposed under administrative citation ordinances, parking violations, etc.

Penalty for Illegal Activity Exception examples include parking fines, code enforcement fees and penalties, late payment fees, interest charges and other charges for violation of the law.

6. A charge imposed as a condition of property development.

Chapter 4: Fees, Charges and Rates

7. Assessments and property-related fees imposed in accordance with the provisions of Article XIII D (Proposition 218).

Proposition 218 Exception examples include assessments on real property for special benefit conferred, fees imposed upon a parcel or a person as an incident of property ownership and fees for a property-related service such as many retail water and sewer fees.

Fees enacted prior to November 3, 2010 are unaffected by Proposition 26 until they are extended or increased. That is, even if a fee enacted prior to November 3, 2010 does not fit within any of the tax exceptions under Proposition 26, it may nonetheless be valid provided that the legislation authorizing it is not amended so as to extend or increase the fee.

Laws governing fees vary based on the particular type of fee imposed. It is extremely important to discuss any new fee, or increase or adjustment of any existing fee, with the city attorney or agency counsel. In this manual, the categories of revenues are organized as follows:

Revenue Category Reference
Fees
and
Rates
User Fees
Utility Rates Section 4.01
Service and Program
Fees
Section 4.01
Property-Related Fees Section 4.02
Regulatory Fees
Development Impact
Fees
Section 4.03
Regulatory Program Fees Section 4.04
Rents
Franchises Chapter 5,
Section 5.01-5.03
Facility Use Fees Chapter 5,
Section 5.06
Fines, Penalties Chapter 5,
Section 5.05
Assessments Chapter 3
Taxes Chapter 2
For More Information:

The California Municipal Law Handbook, League of California Cities.

Propositions 26 and 218 Implementation Guide. League of California Cities. May 2017. http://www.calcities.org/Prop218andProp26

ATTACHMENT A
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195 |
Admissions Tax
A tax is imposed on the consumer for the privilege of
attending a show, performance, display or exhibition. See Section 2.08.

Advance Refunding
When restructuring or retiring outstanding bonds, the
refunding is an “advance refunding” if the outstanding
bonds will not be paid off until later than 90 days after sufficient funds have been deposited with a trustee.

Generally, federal law limits advance refundings to one occurrence. See also “current refunding.”
Ad Valorem Tax
A tax assessed based on the dollar value of an item or
activity. Typical examples are property and sales taxes. Ad valorem taxes contrast with per-unit taxes, such as alcoholic beverage and cigarette taxes, which are assessed at a fixed dollar per unit purchased.

Appropriation
A legal authorization granted by the city council to expend moneys, and incur obligations for specific purposes.

Appropriations Limit
A maximum amount of revenues that may be appropriated
by a government agency determined under California
Constitution Article XIII B and implementing legislation. See Chapter 10.

Appropriations Subject to Limit
Revenues defined as “proceeds of taxes” under California Constitution Article XIII B and implementing legislation. See Chapter 10.

Arbitrage
A technique used to take advantage of price differences in separate markets. This is accomplished by either by
selling debt instruments at a low interest rate and investing the proceeds at a higher rate or by purchasing securities, negotiable instruments or currencies in one market for
immediate sale in another market at a better price.

Assessed Valuation
The value of real property for the purpose of taxation. See Section 2.01.

Assessment District
Not a separate governmental entity, but rather a defined area of land which will be benefited by the acquisition, construction or maintenance of a public improvement.

Banker’s Acceptance
A highly liquid and safe money market instrument created to facilitate international trade transactions whereby the risk of trade transaction is transferred to the bank which “accepts” the obligation to pay the investor. Local agencies in California may invest up to forty percent of their portfolio in this type of security for a term of 180 days or less.

BANs
See bond anticipation notes.

Benefit Assessment
Charges levied on parcels to pay for public improvements or services provided within a pre-determined district or area according to the benefit the parcel receives from the improvement or services.

Benefit Assessment Act of 1982
The 1982 Act allows cities, counties and special districts to finance a variety of improvements. The act requires
majority voter approval if the proposed assessment area has 12 or more registered voters. If fewer than 12, the owners of at least 60 percent of the land in the assessment area must give written consent to the assessment.

Benefit Assessment Bonds
Bonds levied by cities, counties and special districts to acquire or construct public improvements which convey a special benefit to a defined group of properties.

Block Grant
Federal grant allocated according to predetermined
formulas and for use within a pre-approved broad
functional area such as the CDBG (Community
Development Block Grant).

Bond Anticipation Notes (BANs)
BANs are short-term borrowings by a public entity
appropriate to obtain financing for a project for which bonds are authorized but not yet issued. BANs permit
the issuance of debt in increments as work on a project progresses and before some or all of the bond proceeds are available.

Bond Resolution
A legal order or contract by a governmental unit to
authorize a bond issue. A bond resolution carefully details the rights of the bondholders and the obligations of the issuer.

Bonds
A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date.

Broughton Act
Restricts city collection of franchise payments to 2 percent of the franchise’s gross annual receipts arising from use of the franchise.

Business Improvement District
A public-private partnership in which businesses in a
defined area pay special taxes, fees and/or assessments to fund public facility improvements and programs in the area.

See Section 3.02.

Business Operations Tax
Commonly called a “Business License Tax,” a type of excise tax imposed on businesses for the privilege of conducting business within the city. The tax is most commonly based on gross receipts or levied at a flat rate.

California State Board of Equalization (BOE)
California state agency responsible for the collection and administration of the state’s alcohol and insurance taxes.

In addition, the BOE assesses the value of railroad and utility properties for the purpose of property taxation and provides oversight of property tax assessment practices.

In 2017, many BOE tax administration responsibilities
were transferred to a new Department of Tax and Fee
Administration and to an independent Office of Tax
Appeals.

California Department of Tax and Fee Administration
(CDTFA)
California state agency within the Governor’s
Administration, created by the Taxpayer Transparency
and Fairness Act of 2017, responsible for the collection, administration and distribution of sales, transactions and use, timber yield, tobacco, cannabis, motor vehicle fuel, jet fuel, prepaid mobile telephony and other taxes, as well as various state environmental and occupational health fees and surcharges.

ATTACHMENT A
Glossary
| 196
California State Controller
The Controller is the chief fiscal officer of the state and is elected every four years. The Controller is responsible to:
account and disburse all state funds; determine the legality and accuracy of claims against the state; pay the state’s bills; audit and process all personnel and state payroll transactions; audit various state and local government
programs; administer the Unclaimed Property Law; and
inform the public of financial transactions of city, county and district governments.

Capital Improvement Program (CIP)
Annual appropriations in the city’s budget for capital
improvement projects such as street or park improvements, building construction and various kinds of major facility maintenance.

Capital Outlay
Expenditures which result in the acquisition of, or addition to, fixed assets.

Categorical Grant
Grant typically allocated either to qualifying applicants according to a formula or to applicants competing for
project grants through an application process. Categorical grants are the most common form of federal aid.

Certificates of Participation (C.O.P .)
Debt instrument, commonly called C.O.P ., that provides long-term financing through a lease (with an option to
purchase) or through an installment agreement.

Charter City
Charter cities have authority over “municipal affairs,” trumping state law governing the same topic. In contrast, a general law city is a city that has not adopted a charter and is therefore bound by the state’s general laws, even with respect to municipal affairs.

Citizens Option for Public Safety (COPS)
A state subvention for local law enforcement initiated in 1996. See Section 6.03.

Community Facilities District (CFD)
See Mello-Roos Community Facilities District.

Community Rehabilitation District Law of 1985
Allows cities and counties to fund the renovation and repair (but not maintenance) of an existing structure.

Concessions
Revenues received from concessionaires for privilege of operating a concession on city property.

Construction/Development Tax
Excise tax imposed on the privilege or activity of
development and/or the availability or use of municipal services. See section 2.10.

Consumer Price Index (CPI)
A statistical description of price levels provided by the U.S. Department of Labor. The change in this index from year to year is used to measure the cost of living and
economic inflation.

COPS
See Citizens Option for Public Safety.

C.O.P .

See certificates of participation.

County Assessor
An elected official whose main duty is to set values on real property for the purpose of taxation within the
county. The Assessor is responsible for the creation and maintenance of assessor parcels from final subdivisions, parcel maps, lot line adjustments, record of survey, deeds and miscellaneous documents.

County Auditor-Controller
The chief accounting officer of the county established to provide various accounting and property tax administration services to the county and other local governments within the county. The Auditor Controller is responsible for budget control, disbursements and receipts, financial reporting and for audits of certain agencies within the county. Auditor- Controllers are nonpartisan elected officials serving four year terms, except in four counties with appointed officers:

San Francisco, Santa Clara, Los Angeles and San Diego.

County Treasurer-Tax Collector
Administers the billing, collection and reporting of property tax revenues and conducts Tax Defaulted Property Sales
for real property tax delinquencies remaining after five years. Treasurer-Tax Collectors are nonpartisan elected officials serving four-year terms except in three counties with appointed officers: Los Angeles, Sacramento and Santa Clara.

Countywide/Statewide Pools
A system used to allocate local sales and use tax payments that cannot be identified with a specific place of sale or use in California. Local tax reported to the pools is distributed to the local jurisdictions in proportion to taxable sales.

Current Refunding
When restructuring or retiring outstanding bonds, if
bonds are paid off within 90 days of depositing either cash on hand or refunding bond proceeds, the refunding is a
“current refunding.” See also “advance refunding.”
Debt Financing
Issuance of bonds and other debt instruments to finance municipal improvements and services.

Debt Instrument
Written pledge to repay debt such as bills, notes and bonds.

Debt Service
Payment of principal and interest on long-term
indebtedness.

Dedication
The donation “dedication” of certain lands (or money) to specific public uses as a requirement for the approval of a development project. The dedications are typically justified as an offset to the future impact the development will have on existing infrastructure. Also called an “exaction.” See section 4.03.

Development Impact Fees
Fees placed on the development of land or conditions
required for the approval of a development project such as the donation “dedication” or “exaction” of certain lands (or money) to specific public uses. The fees are typically justified as an offset to the future impact that development will have on existing infrastructure. See Section 4.03.

D.I.V.C.A.
“The Digital Infrastructure and Video Competition Act of 2006” [AB 2987 (Nunez/Levine)] effectively replaced locally issued franchise agreements for video service with a system of state-issued franchises subject to certain limited, locally imposed conditions and requiring franchise fees to be paid to local agencies where services are provided. See Section

5.01. ATTACHMENT A
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Documentary Transfer Tax
Tax imposed on documents recorded in the transfer of
ownership in real estate as distinguished from a Real
Property Transfer Tax which may only be imposed by
charter cities. See section 2.07.

Encumbrance
An anticipated expenditure committed for the payment of goods and services not yet received or paid for.

Earmarked funds
Funds that have been tagged or “earmarked” for a specific purpose.

ERAF: Educational Revenue
Augmentation Fund
Accounts established by the state Legislature to receive shifts of property tax revenues from cities, counties, special districts and redevelopment agencies. The additional ERAF property tax revenues to schools enable the state to reduce support from the state general fund, thereby saving the state billions of dollars annually.

Exactions
See dedications.

Excise Tax
Tax placed on a person for a voluntary act, making the tax avoidable. Includes sales and use tax, business operations tax, transient occupancy tax, utility users tax, etc. Phrase “excise tax” is most commonly used to refer to a parcel tax.

Exemption
The exclusion from the tax base of certain types of
transactions or objects. For example, federally-owned land is exempted from property tax.

Expenditure
The actual payment for goods and services.

Fee
A charge to the consumer for the cost of providing a
particular service. California government fees may not
exceed the estimated reasonable cost of providing the
particular service or facility for which the fee is charged, plus overhead.

Forfeiture
See fines, forfeitures and penalties.

Fines, Forfeitures and Penalties
Revenues received and/or bail monies forfeited upon
conviction of a misdemeanor or municipal infraction.

Fiscal Year
The period designated by the city for the beginning and ending of financial transactions. Nearly all city fiscal years begin on July 1 and end June 30 of the following year.

Franchise Act of 1937
Like the Broughton Act, restricts franchise collections to 2 percent of gross annual receipts, but includes a minimum fee of one-half percent of gross annual receipts for electric franchises or 1 percent of gross annual receipts for gas or water franchises operating within the city limits.

Franchises
Fee paid to a municipality from a franchisee for “rental” or “toll” for the use of city streets and rights-of-way.

Functional Revenue
Revenues that can be associated with and allocated to
one or more expenditure functions and which meet one
of the following criteria: 1) the revenue is generated from direct services, such as revenues from fees or charges; 2) the revenue is associated with a specific service by external requirements, such as grant conditions, bond sale agreements or statutory or charter requirements.

Fund
Accounting entity with a set of self-balancing revenue and expenditure accounts used to record the financial affairs of a governmental organization.

Fund Balance
Difference between the assets (revenues and other
resources) and liabilities (expenditures incurred or
committed to) of a particular fund.

Full Faith and Credit
Pledge by issuer of general obligation bonds to bondholders that issuer guarantees “all available funds” be used to pay bondholders should the project go into default.

Full Service City
A city that is financially responsible for the major categories of municipal services including police, fire, planning and parks services.

GANs
See grant anticipation notes.

Gann Initiative
See Appropriations Limit and Chapter 10.

Gann Limit
See Chapter 10.

Gasoline Tax
See Motor Vehicle Fuel Tax.

General Fund
Fund used to account for all financial resources except those required to be accounted for in another fund (e.g., enterprise or grant funds). Usually, the General Fund is the largest fund in a municipality.

General Law City
A city that has not adopted a charter and is therefore
bound by the state’s general laws, even with respect to municipal affairs. In contrast, charter cities have authority over “municipal affairs,” trumping state law governing the same topic. See also “charter city.”
General Obligation (GO) Bonds
Bonds issued through a governmental entity which has the legal authority to levy a tax on real and personal property located within the governmental boundaries at any rate
necessary to collect enough money each year to pay for
principal and interest due.

General Revenue
Those revenues that cannot be associated with a specific expenditure, such as property tax (other than voter
approved indebtedness), sales tax and business operations tax.

General Revenue Sharing Program
Federal program established in 1972 to share federal
monies with state and local governments. The program
was extended in 1976 and again in 1980, but was ended in 1986.

General Tax
A tax imposed for general governmental purposes, the
proceeds of which are deposited into the general fund.

A majority vote of the electorate is required to impose, extend or increase any general tax. See also “special tax.”

ATTACHMENT A
Glossary
| 198
G.O. Bonds
See general obligation bonds.

Grant Anticipation Notes (GANs)
GANs are short-term borrowings of a public entity to
eliminate cash flow deficits in anticipation of the receipt of a federal or state grant or loan. By issuing GANs, the public entity is better prepared to pay all project costs, particularly up front processing and managerial costs.

Grants
Contributions of cash or other assets from another
governmental agency to be used or expended for a
specified purpose, activity or facility.

Highway Users Tax Account (HUTA)
State transportation revenues from motor vehicle fuel taxes allocated to state and local governments by formula. See Section 6.02 of Chapter 6.

Homeowner’s Property Tax Relief Reimbursement
Revenue from the state to offset city loss of property tax for state-imposed $7,000 per dwelling homeowner exemption.

Improvement Bond Act of 1915
Act which allows cities, counties, and “public” districts to issue assessment bonds and bond anticipation notes. The 1915 Act does not authorize assessments.

Investment Earnings
Revenue earned from the investment of idle public funds.

Joint Powers Authority
The Joint Exercise of Powers Act authorizes local public agencies to exercise common powers and to form joint
powers authorities (JPAs) for the purpose of jointly
receiving or providing specific services.

JPA
See joint powers authority.

Landscaping and Lighting Act of 1972
The 1972 Act allows cities, counties and special districts to levy assessments for land purchase and the construction, operation, and maintenance of parks, landscaping, lighting, traffic signals and graffiti abatement.

Lease Revenue Bonds
Bonds similar to certificates of participation and used for the same types of projects with main exceptions that: 1) lessor must be either a governmental entity with the power to issue revenue bonds or a nonprofit corporation that
issues bonds on behalf of a political subdivision; and 2) the bonds constitute a direct debt of the lessor.

Levy
(Verb) To impose taxes, special assessments or service
charges for the support of governmental activities; (noun) the total amount of taxes, and/or special assessments and/ or service charges imposed by a governmental agency.

Library Services Special Tax
Special tax for providing public library facilities and services.

Licenses and Permits
Charge designed to reimburse city for costs of regulating activities being licensed, such as licensing of animals, bicycles, etc.

Lien
A claim on assets, especially property, for the payment of taxes or utility service charges.

Limited Obligation Bonds
Similar to general obligation bonds except that security for the issuance is limited exactly to the revenues pledged in the bond statement and not to the full faith and credit of the city.

Liquidity
The ability to convert a security into cash promptly with minimum risk of principal.

Local Agency Investment Fund (LAIF)
A special fund in the state treasury. Local governments may deposit in this fund through the state treasurer for investment purposes. See Section 5.07.

Maintenance of Effort (MOE)
A requirement, often as a condition of an
intergovernmental subvention or supplemental tax, to
maintain a level of spending at a certain level. Maintenance of Effort requirements are intended to prevent or limit the use of the additional revenues to supplant existing revenues such that the new revenues result in an increase in the level of program spending and services.

Marks-Roos Bonds
Bonds authorized by the Marks-Roos Local Bond Pooling
Act of 1985 which provide local agencies with extremely flexible financing powers through participation in joint powers authorities.

Market-Based Pricing
Recent trend in pricing public services which uses the
marketplace to regulate individual consumer behaviors
consistent with overall societal goals by including the true cost of the service on society.

Mello-Roos Bonds
Bonds allowing cities, counties, school districts and
special districts to finance certain public capital facilities and services, especially in developing areas and areas
undergoing rehabilitation. Property owners in the Mello- Roos district pay an annual special tax which is included on the property tax bill.

Mello-Roos Community Facilities Tax
Special non ad valorem tax imposed to finance public
capital facilities and services in connection with new
development. See Section 2.11.

Mello-Roos Community Facilities District
A distinct entity of government for the purpose of imposing and collecting the Mello-Roos Community Facilities Tax. The governing body and the boundaries of the district may be the same as for the city. See Chapter 2, Section 2.11.

Motor Vehicle Fuel Tax
An excise tax, applied per gallon, on fuel used to propel a motor vehicle or aircraft. Use of tax is limited to research, planning, construction, improvement, maintenance and
operation of public streets and highways or public mass transit guideways. Also called Highway Users Tax.

Motor Vehicle License Fee (VLF)
VLF is a fee for the privilege of operating a vehicle on public streets. VLF is levied annually at 2 percent of the market value of motor vehicles and is imposed by the state “in lieu” of local property taxes. VLF is also called Motor Vehicle in-Lieu Tax.

Municipal Improvement Act of 1913
The 1913 Act allowing cities, counties and special districts to fund everything included in the 1911 Act plus power and public transit facilities; assessments can be levied before construction begins.

ATTACHMENT A
Glossary
199 |
Off-Highway Motor Vehicle License Fee
Fee imposed for the issuance or renewal of identification for every off-highway motor vehicle.

Nexus
In general, a minimum threshold of connection necessary within a taxing jurisdiction to allow taxing authority over out-of-state individuals or businesses. Requirement of
Government Code Sections 66000 et seq. that there
be a reasonable connection “nexus” between required
development impact fees and the development project in
question.

Ordinance
A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies.

Parcel Tax
Special non ad valorem tax on parcels of property generally based on either a flat per-parcel rate or a variable rate depending on the size, use and/or number of units on the parcel.

Parking Tax
General tax imposed on occupant of off-street parking
space for the privilege of renting the space within the city.

See Section 2.09.
“Pay As You Use”
Concept that debt financing enables the public entity to spread the cost of a capital project over time, as the project is being utilized.
“Pay As You Go”
Concept of paying for capital projects when the initial cost is incurred, rather than over time through the use of debt financing.

Penalties
See fines, forfeitures and penalties.

Police and Fire Special Tax
Special tax on parcels of property in support of police and/ or fire protection services.

Portfolio
The collection of securities held by an individual or
institution.

Possessory Interest
Taxable private ownership of interests in tax-exempt public property.

Property-Related Fee
A levy imposed on a parcel or upon a person as an incident of property ownership for property-related service.

Property Tax
An ad valorem tax imposed on real property (land and
permanently attached improvements) and tangible
personal property (movable property).

Property Tax In Lieu of VLF
Property tax shares and revenues allocated to cities and counties beginning in FY 2004–05 as compensation for
Vehicle License Fee (VLF) revenues, previously allocated to cities and counties by the State. Referred to in statute as “Vehicle License Fee Adjustment Amounts.” See Section

2.01. Property Tax Increment
See Tax Increment Financing.

Proposition 1A (2004)
Voter-approved state constitutional amendment protecting most major city, county and special district revenues from reduction or shifting by the state Legislature. See Chapter 1.

Proposition 1A (2006)
Voter-approved state constitutional amendment protecting the local allocation of state transportation sales tax
revenues under Proposition 42 from reduction or shifting by the state Legislature. See Section 6.03.

Proposition 4 (1979)
Also called the Gann Initiative, this initiative, now
Article XIII B of the state Constitution, was drafted to be a companion measure to Proposition 13, California
Constitution Article XIII A. Article XIII B limits growth in government spending to changes in population and
inflation. See Chapter 10.

Proposition 8 (1978)
An amendment to Proposition 13, passed in November 1978 to allow Assessors to recognize declines in value for property tax purposes. Revenue & Taxation Code §51 requires the
Assessor to annually enroll either a property’s Proposition 13 base year value factored for inflation, or its market value as of January 1, whichever is less. See Section 2.01.

Proposition 13 (1978)
Article XIII A of the California Constitution, commonly known as Proposition 13, which limits the maximum
annual increase of any ad valorem tax on real property to 1 percent of the full cash value of such property.

Proposition 26 (2010)
A voter-approved amendment to articles VIII A and XIII C of the California Constitution defining the term “tax” to mean all government imposed charges, levies or exactions except for seven specified exceptions. Any locally imposed charge that falls outside of the exceptions is a tax and requires voter approval.

Proposition 30 (2011)
Voters approved temporary increases in the state personal income tax and sales tax. Proposition 30 also provides
certain guarantees of funding to counties for programs
realigned from the state.

Proposition 42 (2002)
Voter-approved measure that directs the Legislature to
allocate revenues derived from the taxable sales of gasoline to certain transportation programs including to cities and counties. See Section 6.03.

Proposition 62 (1986)
A 1986 proposition which, among other things,
implemented a majority vote requirement for general
taxes. This portion of Proposition 62 was later ruled
unconstitutional.

Proposition 98 (1990)
This measure establishes a minimum level of funding for public schools and community colleges and provides that any state revenues in excess of the appropriations limit be spent on schools.

Proposition 111 (1994)
Voter-approved measure that increased the state Motor
Vehicle Fuel Tax by 9 cents per gallon and made certain adjustments to the spending limits under Proposition 4
(1979). See Section 6.02 regarding the Motor Vehicle Fuel Tax and Chapter 10 regarding Proposition 4 spending limits.

Proposition 172 (1993)
A 1993 measure which places a one-half cent sales tax for local public safety in the constitution, effective January 1, 1994. The tax is imposed by the state and distributed to cities and counties.

ATTACHMENT A
Glossary
| 200
Proposition 218 (1996)
A voter-approved state Constitutional amendment, self-
titled “Right to Vote on Taxes Act” expanded restrictions on local government revenue-raising, allowing the voters to repeal or reduce taxes, assessments, fees and charges through the initiative process; reiterating the requirement for voter approval for both “special taxes” and “general taxes,” and imposing procedural and substantive limitations on assessments of real property and on certain types of fees.

Principal
“Face” or “par value” of an instrument. It does not include accrued interest.

Rating
The designation used by investors’ services to rate the quality of a security’s creditworthiness.

Real Property
Land and permanently attached improvements.

Real Property Transfer Tax
Tax imposed on the transfer of ownership in real estate.

Typically imposed instead of a Documentary Transfer Tax.

Only Charter cities may impose a Real Property Transfer Tax. See Chapter 2, Section 2.07.

Reimbursement for State Mandated Costs
Article XIII B, Section 6 of the California Constitution which requires the state to reimburse local agencies for the cost of state-imposed programs. Process is commonly called “SB 90” after its original 1972 legislation.

Regulatory Fee
A charge imposed on a regulated action to pay for the cost of public programs or facilities necessary to regulate a business or other activity or mitigate the impacts of the fee payer on the community. A regulatory fee does not include a charge on a property or a property owner solely due to property ownership.

Rents
Revenues received through the rental of public properties to private parties such as convention space and library facilities.

Resolution
A special or temporary order of a legislative body requiring less formality than an ordinance.

Revenue
Annual income received by the city.

Revenue Bonds
Bonds issued to acquire, construct or expand public
projects for which fees or admissions are charged. Bonds are repaid solely from the income generated by use of that project.

Road Maintenance and Rehabilitation Account
(RMRA)
Certain state tax revenues for local streets and roads and other transportation uses are allocated through RMRA from the Road Repair and Accountability Act of 2017 (SB1 Beall).

See Section 6.02 of Chapter 6.

Rough Proportionality Test
Specific determination by the city for a specific
development project that the dedication to be required
is related both in nature and extent to the development’s impact (Dolan v. City of Tigard (1994) 94 D.A.R. 8803).

Royalties
Revenues received from private companies for privilege
of extracting natural resources from city property. Also revenues from bets placed at horse racing tracks that are located within the city, currently set by statute at one third of 1 percent.

Sales Tax
A tax imposed on the total retail price of any tangible personal property. See also “use tax.” See section 2.02.

SB 90
Reimbursement process for state mandated costs, named
after its original 1972 legislation.

SB 1977
1992 bill (Government Code, Section 54945.6 as amended) requiring local officials to mail notice of new and increased benefit assessments and to hold public hearings prior to imposing benefit assessments.

Secured Property
As the property tax is guaranteed by placing a lien on
the real property, secured property is that real property in which the value of the lien on the real property and personal property located thereon is sufficient to assure payment of the tax.

Secured Roll
That property tax list containing all assessed property secured by land subject to local taxation.

Securities
Investment instruments such as bonds, stocks and other
instruments of indebtedness or equity.

Service Charges
Charges imposed to support services to individuals or to cover the cost of providing such services. The fees charged are limited to the cost of providing the service or regulation required (plus overhead).

Short-Term Financing Methods
Techniques used for many purposes, such as meeting
anticipated cash flow deficits, interim financing of a project and project implementation. Using these techniques
involves issuance of short-term notes. Voter approval is not required.

Special Tax
A tax that is collected and earmarked for a special purpose and deposited into a separate account. A two-thirds vote of the electorate is required to impose, extend or increase any special tax. See also “general tax.”
Standby Charge
A compulsory charge levied upon real property to defray in whole or in part the expense of providing, operating or maintaining public improvements. The charge is “exacted for the benefit which accrues to property by virtue of
having water [or other public improvement] available
to it, even though the water might not be used at the
present time.” Proposition 218 classifies standby charges as “assessments” which must be imposed in compliance with
Section 4.25 of California Constitution Article XIII D.

Street Lighting Act of 1919
Act authorizing cities to fund the maintenance and
operation of street lighting.

Subvention
Subsidy or financial support received from county, state or federal government. The state and county currently
levy certain taxes that are “subvened” to cities, including motor vehicle license fees, state mandated costs and motor vehicle fuel tax.

ATTACHMENT A
Glossary
201 |
Supplemental Law Enforcement Services Fund
County level fund to contain monies from the Citizens
Option for Public Safety state subvention for local law enforcement initiated in 1996. See Section 6.04.

Supplemental Property Tax
In the event a property changes ownership, the county
collects a supplemental property tax assessment in the
current tax year by determining a supplemental value. In future tax periods, the property carries the full cash value.

Tangible Personal Property
Movable property.

Tax
Compulsory charge levied by a government for the purpose of financing services performed for the common benefit.

Tax Allocation Bonds
Bonds issued by redevelopment agencies to revitalize
blighted and economically depressed areas of the
community and to promote economic growth.

Tax Base
The objects or transactions to which a tax is applied
(e.g., parcels of property, retail sales, etc.). State law or local ordinances define the tax base and the objects or transactions exempted from taxation.

Tax Equity Allocation (TEA)
Supplemental property tax allocations shifted to certain “no and low property tax cities” from counties. TEA is also used in reference to other supplemental allocations of
Vehicle License Fee (VLF) revenues provided to certain no and low property tax cities. These VLF-TEA allocations now flow to those cities as a part of Property Tax in lieu of VLF payments.

Tax and Revenue Anticipation Notes (TRANs)
TRANs are short-term borrowings by a public entity to meet cash flow needs in the general fund and other unrestricted funds of a public entity. TRANs are issued before expected receipt of taxes and other revenues during the same fiscal year.

Tax Increment Financing
A tax incentive designed to attract business investment by dedicating to the project area the new property tax
revenues generated by redevelopment. The increase in
revenues (increment) is used to finance development-
related costs in that district.

Tax Rate
The amount of tax applied to the tax base. The rate may be flat, incremental or a percentage of the tax base, or any other reasonable method.

Teeter Plan
Enacted in 1949, an alternative method for allocating
delinquent property tax revenues, authorized by Revenue and Taxation Code section 4701, in which the county
Auditor allocates property tax revenues based on the total amount of property taxes billed, but not yet collected.

The county government then collects and keeps the
delinquency, penalty and interest payments.

Traffic Congestion Relief Program (TCRP)
Revenues from state sales taxes on vehicle fuels dedicated to transportation purposes by Proposition 42 (2002) and allocated to state and local governments. See Section 6.02 of Chapter 6.

Traffic Safety Fund
All fines and forfeitures received as a result of arrests by city officers for Vehicle Code violations must be deposited in a special city “Traffic Safety Fund” to be used for traffic control devices; maintenance of equipment and supplies
for traffic law enforcement and traffic accident prevention; the maintenance, improvement or construction of public
streets, bridges or culverts; and the compensation of school crossing guards who are not regular full-time members of the police department.

TRANs
See tax and revenue anticipation notes.

Transactions and Use Tax
Also, known as an “add-on local sales tax,” a tax imposed on the total retail price of any tangible personal property and the use or storage of such property when sales tax is not paid. See Section 2.03.

Transient Occupancy Tax
Tax levied by cities on persons staying 30 days or less in a room(s) in a hotel, inn, motel, tourist home, non- membership campground or other lodging facility. Also
called Transient Lodging Tax or Hotel Tax. See Section 2.06.

Transportation Improvement Fee
State tax on motor vehicle registrations adopted under the Road Repair and Accountability Act of 2017 (SB1 Beall). See Section 6.02 of Chapter 6.

Triple Flip
A mechanism used to repay state fiscal recovery bonds
pursuant to Proposition 57 of 2004. Under the Triple
Flip, the local sales and use tax rate was reduced from

1.00 percent to 0.75 percent with the 0.25 percent diverted to repay state fiscal recovery bonds. Cities and counties were reimbursed for the lost revenue from a shift of
property tax revenue.

Tideland Revenue
Revenues granted by the state for use of city tideland in production of oil, gas and other hydrocarbons.

Transportation Tax
Special tax imposed by counties for county transportation needs. Typically collected with the sales and use tax, some cities receive a portion of the transportation tax usually in .25 percent tax rate increments.

Unsecured Property
As the property tax is guaranteed by placing a lien on the real property, unsecured property is that real property in which the value of the lien is not sufficient to assure payment of the property tax.

Use Tax
A tax imposed on the use or storage of tangible personal property when sales tax is not paid. See also “sales tax.” See Section 2.02.

User Fee
Fees charged for the use of a public service or program such as for recreation programs or public document
retrieval. User fees for property-related services are
referred to as property-related fees. See Chapter 4.

Utility Connection Fee
Utility connection fees or capacity fees are imposed on the basis of a voluntary decision to connect to a utility system or to acquire the right to use additional capacity. See Chapter 4.

ATTACHMENT A
Glossary
| 202
Utility Rate
A category of user fee paid by the user of utility services.

See Chapter 4.

Utility Users Tax
Tax imposed on the consumer (residential and/or
commercial) of any combination of electric, gas, cable
television, water and telephone services. See Section

2.05. Vehicle Parking District Law of 1943
The 1943 Act allows cities and counties to
purchase land for parking structures, construct and
maintain parking lots and pay for related planning.

VLF
See Motor Vehicle License Fee.

VLF — Property Tax Swap
The trade of most city and county Vehicle License Fee
revenue for additional property tax share and revenue. See Section 2.01 and Section 6.01.

Vehicle Registration Fees
See Vehicle Registration Taxes, Chapter 2, Section 2.13.

Vehicle Registration Taxes
A special tax on vehicle registration imposed countywide for specific purposes authorized in state law. See Chapter 2, Section 2.13.

Voter Approved Property Tax for Indebtedness
Includes ad valorem property taxes levied in addition to the 1 percent rate for voter approved debt, approved prior to July 1, 1978 or after July 1, 1986.

Williamson Act and Open Space Subvention
State subvention to foster preservation of open-space by lowering cost of property tax.

Yield
The total amount of revenue a government expects to
receive from a tax, determined by multiplying the tax
rate by the tax base. Also, the annual rate of return on an investment, expressed as a percentage of the investment.-

ATTACHMENT A
League of California Cities www.cacities.org2
A
Primer
on
CAliforniA
City
revenues
Michael Coleman is principal fiscal policy advisor to the League and can be reached at [email protected]. More information on city finance is available at www.californiacityfinance.com. Coleman comments on local government finance topics on Twitter (@MuniAlmanac) and Facebook (www.facebook.com/MuniAlmanac).
by
michael coleman

ATTACHMENT A
revenue basics
You don’t have to scratch any local government issue very deeply to find the question of money: What’s this going to cost? What are we going to get for that price? Is this project worth it?
How does your city pay its bills? What
does the future hold for city service costs
and funding? Though every city is dif-
ferent — each with its own needs, local
economy, expectations, protocols, respon-
sibilities and finances — some essential
elements of city revenues and spending are
common to cities throughout California.
an overview of city
revenue sources
Revenue, the bread and butter of city
budgets, comes from a variety of sources.

Some revenue is restricted by law to cer-
tain uses; some revenue is payment from
customers for a specific service. Other
revenue requires voter approval for rate
increases. Still other revenue comes from
state and federal agencies, almost all of it
with strings attached.

The California Constitution and state law
provide some specific distinctions among
municipal revenue sources.
california city revenues
Utility Fees
(water, sewer, refuse,
electric, gas, etc.)
29%
Development
Fees/
Permits
2%
Other Fees
12%
Licenses,
Permits
<1%
Fines, Forfeitures
1%
Investments, Rents
1%
Federal
Grants
5%
State
Grants
4%
Special Taxes
3%
Benefit
Assessments
2%
Property Tax 14%
Sales Tax 7%
Business License 2%
Utility User Tax 3%
Transient Occupancy Tax 2%
Other Tax 3%
Franchises 2%
State & Federal <1%
Other 3%
Other
5%
Taxes
Fees
State & Federal Aid
Other
This is a statewide aggregation of city revenues. Individual cities vary.

Source: Author's computations using 2014–15 data from California state controller; does not include the City and County of San Francisco.

LEGEND
Not
Restricted
36%
continued
League of California Citieswww.cacities.org 3

ATTACHMENT A
Local Tax and Revenue Limitations:

Proposition 13 and Its Siblings
Local officials have limited choices in governing, managing their finances and raising revenues to provide services needed by their communities. Voters have placed restrictions as well as protections in the state Constitution. The Legislature has acted in various ways both to support and provide and to limit and withdraw financial powers and resources from cities, counties and special districts.

Significant limitations on local revenue-raising include:
• Property
taxes may not be increased except with a two-thirds vote to fund a general obligation bond (most local school bonds can now be passed with 55 percent voter approval);
• The Legislature controls the allocation of local property tax among the county, cities, special districts and school districts within each county; • Voter approval is required to enact, increase or extend any type of local tax; • Assessments to pay for public facilities that benefit real property require property-owner approval;
• Fees for services and the use of local agency facilities may not exceed the reasonable cost of providing those services and facilities; and • Fees for services such as water, sewer and trash collection are subject to property-owner majority protest.
taxes
A tax is a charge for public services and
facilities. There need not be a direct
relationship between the services and
facilities used by an individual taxpayer
and the tax paid. Cities may impose any
tax not otherwise prohibited by state law
(Gov’t. Code Section 37100.5). The state
prohibits local governments from taxing
certain items, including cigarettes, alcohol
and personal income; the state taxes these
for its own purposes.

The California Constitution distinguishes
between a general tax and a special tax.

General tax revenues may be used for any
purpose. A majority of voters must approve
a new general tax, its increase or extension
in the same election in which city council
members are elected. Special tax revenues
must be used for a specific purpose, and
two-thirds of voters must approve a new
special tax, its increase or extension.

Overview of General Tax and Special Tax Requirements
A Primer on California City Revenues, continued
fees, charges and
assessments
A fee is a charge imposed on an individual
for a service that the person chooses to
receive. A fee may not exceed the estimated
reasonable cost of providing the particular
service or product for which the fee is
charged, plus overhead. Examples of city
fees include water service, sewer service
connection, building permits, recreational
classes and development impact fees.

Cities have the general authority to impose
fees (as charges and rates) under the cities’
police powers granted by the state Consti-
tution (Article XI, Sections 7 and 9).

State law sets specific procedures for fee
and rate adoption. Proposition 218 pro-
vides special rules for property-related fees
used to fund property-related services.

Special benefit assessments are charges
levied to pay for public improvements or
services within a predetermined district
or area, according to the benefit the
parcel receives from the improvement or
services. The state Constitution requires
continued on page 6
GeneRaL Tax SPecIaL Tax
Use of Revenues Unrestricted Specific purpose
Governing Body
approval Required
• General-law cities: two-
thirds approval is required.
• Charter cities: majority
approval is required.
• Transactions and use
taxes: two-thirds approval
is required.

Majority
Voter approval
Required
Majority Two-thirds
Other Rules A general tax election must be
consolidated with a regularly
scheduled general election
of members of the governing
body, unless an emergency is
declared by unanimous vote
(among those present) of the
governing body.

Special
tax funds must be de-
posited in a separate account.

The taxing agency must publish
an annual report including the
tax rate, the amounts of rev-
enues collected and expended
and the status of any project
funded by the special tax.

League of California Cities www.cacities.org
4 ATTACHMENT A
A Primer on California City Revenues, continued from page 4 property-owner approval to impose a
benefit assessment. Other locally raised
revenues include licenses and permits;
franchises and rents; royalties and conces-
sions, fines, forfeitures and penalties; and
investment earnings.
intergovernmental
revenue
Cities also receive revenue from other
government agencies, principally the state
and federal governments. These revenues
include general or categorical support
monies called subventions, as well as grants
for specific projects and reimbursements
for the costs of some state mandates. Inter-
governmental revenues provide 10 percent
of city revenues statewide.
other city revenues
Other sources of revenue to cities include
rents, franchises, concessions and royal-
ties; investment earnings; revenue from
the sale of property; proceeds from debt
financing; revenues from licenses and per-
mits; and fines and penalties. Each type
of revenue has legal limitations on what
may be charged and collected as well as
how the money may be spent.
putting money in
its proper place
The law restricts many types of city
revenues to certain uses. As explained
earlier, a special tax is levied for a
specific program. Some subventions are
designated by law for specific activities.

Fees are charged for specific services, and
fee revenue may fund only those services
and related expenses. T o comply with these
laws and standards, finance departments
segregate revenues and expenditures into
separate accounts or funds. The three most
important types of city funds are special
revenue funds, enterprise funds and the
General Fund.

Special revenue funds are used to account
for activities paid for by taxes or other
designated revenue sources that have spe-
cific limitations on use according to law.

For example, the state levies gasoline taxes
and allocates some of these funds to cities
and counties. A local government deposits
gasoline tax revenue in a special fund and
spends the money for streets and road-
related programs, according to law.
a fee may not exceed the estimated
reasonable cost of providing the
particular service or product for
which the fee is charged, plus overhead.

League of California Cities www.cacities.org
6 ATTACHMENT A
Local Revenue Protections
The Legislature has enacted many
complicated changes in state and local
revenues over the past 30 years, which
at times have had significant nega -
tive fiscal impacts on city budgets. In
response, local governments and their
allies drafted — and voters approved —
state constitutional protections limiting
many
of these actions. At times, these
protections have resulted in the Legis-
lature undertaking even more complex
maneuvers in efforts to solve the financial
problems and protect the interests of the
state budget.

In response to actions of the Legislature
and the deterioration of local control of
fiscal matters, local governments placed
on the ballot and voters approved
Proposition
1A in 2004 and Prop. 22 in
2010. Together, these measures prohibit
the state from:
• Enacting most local government man-
dates without fully funding the costs
(the definition of a state mandate
includes the transfer of responsibility
for a program for which the state was
previously fully or partially responsible);
• Reducing the local portion of the sales
and use tax rate or altering its method
of allocation, except to comply with
federal law or an interstate compact;
• Reducing the combined share of
property tax revenues going to the
cities, county and special districts in
any county; and
• Borrowing,
delaying or taking motor
vehicle fuel tax allocations, gasoline
sales tax allocations or public trans-
portation account funds.

Enterprise funds are used to account for
self-supporting activities that provide ser-
vices on a user-charge basis. For example,
many cities provide water treatment and
distribution services to their residents. Us-
ers of these services pay utility fees, which
the city deposits in a water enterprise fund.

Expenditures for water services are charged
to this fund.

The General Fund is used to account
for money that is not required legally or
by sound financial management to be
accounted for in another fund. Major
sources of city General Fund revenue in-
clude sales and use tax, property tax and
locally adopted business license tax, hotel
tax and utility user taxes.

Public Law
Labor & Employment
Litigation
Education Law
Real Estate & Business
Construction Law
Environmental Law
Fiercely Protecting
Our Clients Since 1927
Law ofﬁces throughout California | 800.333.4297 | www.bwslaw.com League of California Citieswww.cacities.org
7 ATTACHMENT A
major city revenues
major city
revenues
Sales and Use Tax. The sales tax an
individual pays on a purchase is collected
by the state Board of Equalization and
includes a state sales tax, the locally levied
Bradley-Burns sales tax and several other
components. The sales tax is imposed
on the total retail price of any tangible
personal property. State law provides a
variety of exemptions to the sales and
use tax, including resale, interstate sales,
intangibles, food for home consumption,
candy, bottled water, natural gas, electric-
ity and water delivered through pipes,
prescription medicines, agricultural feed,
seeds, fertilizer and sales to the federal
government. A use tax is imposed on the
purchaser for transactions in which the
sales tax is not collected.

Sales and use tax revenue received by
cities is general purpose revenue and is
deposited into a city’s General Fund.
sales tax: how much goes to your city?
Add-On Transactions & Use (e)
varies
City or County (a)

1.00%
County
Transportation (b)

0.25%
State
General
Fund

3.9375%Prop. 172 Public
Safety (c)

0.50%
County Realigned
Programs (d)

1.5625%
a. The local 1 percent rate is allocated based on a "point of sale" or "situs" of the sales transaction. The local rate goes to the city or unincorporated county area where the transaction occurs. b. The 0.25 percent rate for county transportation programs is allocated to the county in which the transaction occurs. c. Proposition 172 of 1993 established a 0.5 percent state sales tax to fund public safety programs (sheriff, police, fire, district attorney, etc.) to mitigate the impacts on those programs of state shifts of property tax revenues. d. In 1991 the California Legislature enacted a realignment of state and county programs, assigning various health and welfare program responsibilities to counties and providing funding for those programs including a 0.5 percent portion of the state-imposed sales and use tax rate. In 2011 the California Legislature enacted another realignment of state and county programs, assigning various corrections and rehabilitation program responsibilities to counties and providing funding for those programs, including a 1.0625 per- cent portion of the state-imposed sales and use tax rate. e. Some counties and some cities have imposed additional "transactions and use" tax rates, which may total no more than 2 percent in counties other than Los Angeles, Contra Costa and Alameda. In Los Angeles, Contra Costa and Alameda counties, the maximum combined additional rate is 2.5 percent.
continued
League of California Citieswww.cacities.org 9

ATTACHMENT A
A Primer on California City Revenues, continued
Although cities vary widely, sales and use
tax revenue provides on average 30 percent
of city general purpose revenue — and
often as much as 45 percent.

Cities and counties may impose additional
transaction and use taxes in increments of

0.125 percent with two-thirds city council
approval and majority voter approval for a
general tax; a special tax requires two-thirds
voter approval. The combined rate of the
city and county transaction and use taxes is
capped at 2 percent in most counties.

Property Tax. The property tax is an
ad valorem (value-based) tax imposed
on real property and tangible personal
property. State law provides a variety of
exemptions to the property tax, includ-
ing most government-owned property;
nonprofit, educational, religious, hospital,
charitable and cemetery properties; the
first $7,000 of an owner-occupied home;
business inventories; household furnish-
ings and personal effects; timber; motor
vehicles, freight and passenger vessels; and
crops and orchards for the first four years.

California Constitution Article XIIIA
(Proposition 13) limits the property tax
to a maximum 1 percent of assessed val-
ue, not including voter-approved rates to
fund debt. The assessed value of property
is the base year value plus the value of
any improvements, plus annual inflation
capped at 2 percent per year. The base
year value is the value at the most recent
sale or the 1975–76 market value. Prop-
erty that declines in market value may be
temporarily reassessed at the lower value.

Property is reassessed to current full value
upon change in ownership (with certain
exemptions). Property tax revenue is col-
lected by counties and allocated accord-
ing to state law among cities, counties,
school districts and special districts.

The share of property tax revenue allocated
to a city varies depending on a variety of
factors, including:
• The service responsibilities of the city
(for example, in a city where fire services
are provided by a special district, the city
receives a lower share, with a portion of
the property tax revenues going instead
to the special district); and
• The historic (1978) tax rates of the
city in relation to other local taxing
entities. City property tax revenues are
also affected by local property values.

Property Tax in Lieu of Vehicle License
Fee (VLF). The VLF is a tax imposed by
the state on the ownership of a registered
vehicle in place of taxing vehicles. Cities
receive additional property tax to replace
VLF revenue that was cut when the state
permanently reduced the VLF in 2004.

This property tax in lieu of VLF grows
with the change from the prior year in
gross assessed valuation of taxable prop-
erty in the jurisdiction. Property tax in
lieu of VLF allocations is in addition
to other property tax apportionments.

Property tax revenue (including property
tax in lieu of VLF) accounts for more
than one-third of general revenue for the
average full-service city. For cities that do
not fund fire service, property tax revenue
represents on average 25 percent of gen-
eral revenue.

Business License Tax. Most cities in
California levy a business license tax.

Tax rates are determined by each city,
which collects the taxes. Business license
taxes are most commonly based on gross
receipts or levied at a flat rate but are
sometimes based on the quantity of goods
produced, number of employees, number
of vehicles, square footage of the busi-
ness or some combination of factors. In
all cases, cities have adopted their tax as
a general tax. On average, the business
license tax provides about 3 percent of
city general revenue and often as much as
6 percent. For businesses that operate in
more than one city, state or county, cities
can impose a business license tax on only
that portion of the business transacted in
that city.

Transient Occupancy Tax (TOT) or
“Hotel Bed” Tax. More than 400 cities
in California impose TOT on people
staying for 30 days or less in a hotel, inn
or other lodging facility. Rates range from
Responsibilities Differ among cities — and
consequently, So Do Budgets
Comparing revenues and expenditures of different cities can be difficult be- cause cities vary according to the needs of their constituents, the nature of the local economy and the city’s service and financial responsibilities. Less than 25 percent of California cities are full-service cities, responsible for funding all of the major city General Fund-supported services such as police, fire, library, parks and recreation and planning. In about three out of 10 California communi- ties, a special district provides fire services with property tax revenue that would otherwise go to the city. In six out of 10 California cities, another public agency provides and funds library services.

Allocations of property taxes among local agencies vary from place to place due to differences in the service responsibilities among agencies serving different areas and differences in the tax rates enacted by those agencies prior to Prop. 13, which passed in 1978. Full-service cities generally receive higher shares than those that do not provide the complete range of municipal services. For example, in a city where fire services are provided by a special district, the city gets a lower share, and a portion of the property tax revenues goes instead to the special district.

Property tax revenues among jurisdictions are also, of course, dramatically affected by differences in the assessed value of properties.

League of California Cities www.cacities.org
10 ATTACHMENT A
sales and use tax revenue
provides on average
30 percent of city
general purpose revenue —
and often as much as
45 percent.
continued

3.5 to 15 percent of the lodging cost. In
nearly all cases, cities have adopted these
as general taxes, but some cities make a
point of budgeting the funds for tourism
or business development-related programs.

Among cities that impose a TOT , it pro-
vides 7
percent on average of a city’s general
revenues and often as much as 17 percent.

Utility User Tax (UUT). More than 150
cities (collectively representing a majority
of the state’s population) impose a utility
user tax. UUT rates vary from 1 to 11
percent and are levied on the users of vari-
ous utilities, which may include telephone,
electricity, gas, water and cable television.

For cities that impose the UUT , it provides
an average of 15 percent of general revenue
and often as much as 22 percent.

Mark Adler
Managing Director
310 297-6010
[email protected]
Tom Innis
Managing Director
415 616-
1635
[email protected]
Katie Koster
Managing Director
949 494-
6110
[email protected]
Dennis McGuire
Managing Director
916 361-6520
[email protected]
Russell Reyes
Managing Director
310 297-6014
[email protected]
Victor Ume-Ukeje
Managing Director
415 616-
1662
[email protected]
Tony Rapista
Vice President
310 297-6031
[email protected]
League of California Citieswww.cacities.org
11 ATTACHMENT A
A Primer on California City Revenues, continued
More Resources Online
For additional information and links to related
resources, read the online version of this
publication at www.westerncity.com.

Parcel Tax. This is a special non-value-
based tax on property, generally based
on either a flat per-parcel rate or a vari-
able rate depending on the size, use or
number of units on the parcel. Parcel
taxes require two-thirds voter approval

and are imposed for a variety of purposes,
including police and fire services, parks,
libraries and open space protection. Parcel
taxes provide less than 1 percent of city
revenues statewide.

Rents, Royalties and Concessions.

Examples of revenues generated through
the use of city property include royalties
from natural resources taken from city
property, the sale of advertising in city
publications, payments from concession-
aires operating on city property, facility
rentals, entry charges, on- and off-street
parking charges and even golf fees.
applications or a fee to inspect restaurants
for health and safety compliance.

City utilities and enterprises supported by
service fees constitute a substantial por-
tion of most city budgets. These include
water, sewer, electricity and solid waste
services. In some cities, a public or private
agency other than the city provides and
funds these services.
and there’s more
City budgets can be bewildering. Myriad
laws and limitations make city funding a
very complicated subject. Understanding
the essentials of city finance is critical for
any city decision-maker. Elected officials
find their job is made easier when they
are able to explain the basic elements of
municipal finance to their constituents.
■
Franchises. In lieu of rent, franchise fees
are collected from refuse collectors, cable
television companies and utilities for the
use of city streets. Some franchise charges
are limited by statute.

Fines, Forfeitures and Penalties. Cities
receive a share of fines and bail forfeitures
from misdemeanors and infractions com-
mitted within city boundaries. State law
determines the distribution and use of
state-imposed fines and forfeitures, but
cities determine penalties for violations of
their municipal codes.

Service Charges and Fees. Cities have
authority to impose fees, charges and rates
for services and facilities they provide, such
as plan checking or recreation classes.

Use of these revenues is limited to paying
for the service for which the fees are col-
lected, but may include overhead, capital
improvements and debt service.

Regulatory fees pay for the cost of is-
suing licenses and permits, performing
investigations, inspections and audits and
the administrative enforcement of these
activities. Examples include a fee to pay
for the cost of processing pesticide license
Trends in california city Finance
• State and federal aid to California cities is declining, down from 21 percent of a city’s budget in 1974–75 to less than 10 percent today. Nearly all state and federal aid today is earmarked for specific purposes;
• The sales tax base is declining relative to population and inflation growth, due to the gradual shift toward a service-oriented economy; • Voter-approved provisions in the state Constitution limit the types, approval procedures and use of local taxes, fees and other charges; • State population growth is higher in cities than in unincorporated areas; • Cities must respond to residents’ demand for a greater array of services that bring with them additional costs and new challenges (high tech, cable, transit, pollution control, etc.);
• Spending on police and fire services is up largely due to employee pension and retiree health-care costs; and
• Infrastructure improvements and maintenance are lagging. - Public Finance
- Policy Recommendations
- Financial Modeling
- Strategic Capital Planning
- Green Bonds
NHAadvisors.com 415.785.2025
Every great leader's
secret weapon is a
trusted financial advisor.

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yours.

Municipal Advisors for:

League of California Cities www.cacities.org
12 ATTACHMENT A

Understanding the Basics of
Municipal Revenues in California:

Cities, Counties and Special Districts

2016 Update

ATTACHMENT A
2 Table of Contents
Overview............................................................................ 2 City Revenues In California ................................................ 4 County Revenues In California .......................................... 5 Special District Revenues In California .............................. 6 The Players: The State Legislature, Local
Governments And The Voters ............................................ 7 Taxes .................................................................................. 8 Property Taxes ................................................................. 10 Sales And Use Taxes ......................................................... 12 Service Charges, Assessments, And Fees ......................... 15 Revenues From Other Government Agencies .................. 17 Rent For Use Of Public Property ...................................... 18 Fines, Forfeitures And Penalties ....................................... 18 Other Revenues ............................................................... 19 Acknowledgements ......................................................... 20

ATTACHMENT A
3 OVERVIEW
Each one of California's 39 million residents lives within the boundaries of one of the state's 58 counties. Nearly 33 million people also live in one of California’s 482 cities.i Californians are also served by 2,156 independent special districts.

Counties, cities and special districts provide a vast array of municipal services to residents and businesses. These services include public safety (police, fire and emergency services), parks and recreation, roads, flood protection, sewers, water, electricity, refuse disposal, recycling and other utilities. Counties have an additional role as a provider for many state-mandated services, such as foster care, public health care, jails, criminal justice and elections.ii
These municipal local governments rely on a variety of revenues to pay for the services and facilities they provide. The amount and composition of revenues:
• D iffer between cities, counties and special districts largely because of differences in responsibilities; and
• V ary among cities, among counties and among special districts depending in part on differences in governance responsibilities.

There is a complex web of legal rules for collecting and using the variety of revenues available to municipal governments in California.

These rules derive from the state constitution, state statute and court cases further interpreting those laws.

This guide provides an overview of the sources of county, city and special district revenues in California. It is an introduction to a complex topic. You can find further information in the resources listed on the last page.

How To Use This
Information
These materials are not
technical or legal advice.

You should consult
technical experts, attorneys
and/or relevant regulatory
authorities for up-to-date
information and advice on
specific situations.

ATTACHMENT A
4 CITY REVENUES IN CALIFORNIA
Incorporated cities (including those that refer to themselves as “towns”) are responsible for a broad array of essential frontline services tailored to the needs of their communities. These include:
• L aw enforcement and crime prevention,
• F ire suppression and prevention, natural disaster planning and response, emergency medical response and transport,
• L and use planning and zoning, building safety,
• L ocal parks and open spaces, recreation,
• W ater supply, treatment and delivery,
• S ewage collection, treatment and disposal,
• S torm water collection and drainage,
• S olid waste collection, recycling and disposal,
• L ocal streets, sidewalks, bikeways, street lighting and traffic controls, and • P ublic transit.

Cities that are responsible for providing all or most of these functions are called “full service” - the services can be provided in-house or contracted through a private entity or another public agency. In other cities, some of these functions are the financial responsibility of other local agencies such as the county or special districts. For example, in about thirty percent of California cities, a special district provides and funds fire services. In sixty percent, library services are provided and funded by another public agency such as the county or a special district.

The mix of service responsibilities and local choice regarding service levels affects the amount and composition of revenues of each city.

ATTACHMENT A
5 COUNTY REVENUES IN CALIFORNIA
California counties are responsible for three general areas of municipal services: 1) delegated state and federal programs, 2) countywide public services and 3) essential frontline services for residents not receiving those services from a city or special district, often in unincorporated areas (outside city boundaries).

In unincorporated areas, counties provide the essential frontline services that cities provide that are not provided by a special district.

These can include police protection (through a county sheriff), roads, planning and building safety.

Counties also provide public services to all county residents, whether they live in or outside of cities. These countywide functions include:
• P ublic assistance (notably welfare programs and aid to the indigent),
• P ublic health services (including mental health and drug/alcohol services),
• L ocal elections,
• L ocal corrections, detention and probation facilities and programs (including juvenile detention), and
• P roperty tax collection and allocation for all local agencies, including school districts.

Funding from the federal and state government, primarily for health and human services, is the largest source of county revenues. Property taxes and sales and use taxes are the primary funding sources for many county services that do not have a dedicated state or federal funding source.

General and Functional
Revenues
Municipal revenues may be
viewed as falling into two
broad categories: general
revenues and functional
revenues.

General revenues can be
used for any legitimate public
purpose. General purpose
taxes, especially property and
sales taxes, account for most
general city revenues
statewide.

Functional revenues are
restricted by law to a
particular use. These include
funds derived from fees or
rates that the local agency
charges for public services,
including municipal utilities
such as water, sewer, and
garbage collection, airports,
marinas, harbors and water
ports. Functional revenues
also include most state or
federal grants as they are
usually restricted for particular
programs.

ATTACHMENT A
6 SPECIAL DISTRICT REVENUES

IN CALIFORNIA
Most special districts provide one or a few municipal services to a particular geographic area. These include both enterprise and non- enterprise services. Enterprise services are funded primarily through charging a fee for service. For example, water and irrigation districts charge utility rates and fees from consumers of those services. Non- enterprise services generally do not lend themselves to fees and are primarily funded by property taxes, with relatively small amounts of fee and state and federal grant revenue. Library and fire protection services are examples of non-enterprise services.

Other districts are multifunction, providing a number of municipal services. Community services districts (CSDs) can provide as many as 32 different types of services, approximating the scope of some cities. Multifunction districts have both enterprise and non-enterprise elements and may, like cities or counties, use an array of different revenue sources.

Types of Special Districts
• Air Quality Management /
Air Pollution Districts
• Airport Districts
• Cemetery Districts
• Community Services Districts
• Flood/Drainage Districts
• Fire Districts
• Harbor Districts
• Healthcare Districts
• Irrigation Districts
• Library Districts
• Memorial Districts
• Municipal / Resort
Improvement Districts
• Open Space Districts
• Parks and Recreation Districts
• Police Protection /
Ambulance Districts
• Public Utility Districts
• Reclamation Districts
• Resource Conservation
Districts
• Sanitary Districts
• Waste Management Districts
• Water Districts

ATTACHMENT A
7 THE STATE LEGISLATURE, LOCAL GOVERNMENTS AND

THE VOTERS
The options available to local officials in governing, managing their finances and raising revenues to provide services needed by their communities are limited. Voters have placed restrictions as well as protections in the state constitution. The state’s voters and the California Legislature have acted in various ways, to support and provide, and to limit and withdraw financial powers and resources from cities, counties and special districts.

Some of the most significant limitations on the local revenue-raising include:
• Property taxes may not be increased except with a two-thirds vote to fund a general obligation bond.
• The allocation of local property tax among a county, and cities, special districts and school districts within each county is controlled by the Legislature. • Voter approval is required prior to enacting, increasing or extending any type of local tax. • Assessments to pay for public facilities that benefit real property require property owner approval.
• Fees for the use of local agency facilities and for services may not exceed the reasonable cost of providing those facilities and services.
• Fees for services such as water, sewer and trash collection are subject to property owner majority protest.

The Legislature has enacted many complicated changes in state and local revenues over the past 30 years. Voters have approved state constitutional protections limiting many of these actions at times followed by even more complicated maneuvers by the Legislature in efforts to solve the financial troubles and interests of the state budget.

Reacting to actions of the Legislature and the deterioration of local control of fiscal matters, local government interests placed on the ballot, and voters approved, Proposition 1A in 2004 and Proposition 22 in 2010. Together, these measures prohibit the state from:
• Enacting most local government mandates without fully funding their costs. The definition of state mandate includes a transfer of responsibility or funding of a program for which the state previously had full or partial responsibility.
• R educing the local portion of the sales and use tax rate or altering its method of allocation, except to comply with federal law or an interstate compact. • Reducing the combined share of property tax revenues going to the county as well as cities and special districts in a county.
• Borrowing, delaying or taking motor vehicle fuel tax allocations, gasoline sales tax allocations, or public transportation account funds.

ATTACHMENT A
8 TAXES
According to the California Constitution, every local agency charge is a “tax,” unless it falls into a list of specified exceptions:iii
• User fees for a specific benefit, privilege, service or product provided to the payor. Items include: fees for parks and recreation classes, some utilities, public records copying fees, DUI emergency response fees, emergency medical and ambulance transport service fees. • Regulatory fees for reasonable regulatory costs of issuing licenses and permits, and performing inspections and enforcement such as health and safety permits, building permits, police background checks, pet licenses, bicycle licenses and permits for regulated commercial activities.
• Rental fees imposed for entrance to or use of government property. These include: facility room rentals, equipment rentals, park, museum and zoo entrance fees, golf greens fees, on and off-street parking and tolls.
• Fines or penalties such as parking fines, code enforcement fees and penalties, late payment fees, interest charges and other charges for violation of the law. • A charge imposed as a condition of property development such as building permit fees, construction and grading permits, development impact fees and fees for California Environmental Quality Act requirements.
• Benefit assessments and property related fees imposed in accordance with the provisions of Article XIII D (Proposition 218) such as a lighting and landscape assessment and fees for property related services such as many retail water and sewer fees. iv

In contrast to an assessment or a fee, a tax need not be levied in proportion to specific benefit to a person or property. Tax revenues are an important source of funding for both county and city services and for many special districts. In addition to local taxes, counties rely significantly on tax dollars allocated from the state and federal governments.

TAX- General TAX- Parcel or Special
(earmarked)
G.O. BOND
(w/tax) Fee / fine / rent
City / County Majority voter
approval Two-thirds voter approval Two-thirds voter
approval
Majority of the
governing
board*
Special
District n/a Two-thirds voter approval Two-thirds voter approval
Majority of the
governing
board*
K-14 School n/a Two-thirds voter approval
(parcel tax)
55% voter
approval**
Majority of the
governing
board*
State
For any law that will increase the taxes of any
taxpayer, two-thirds of each house of the Legislature
- or approval of majority of statewide voters.

Statewide
majority voter
approval
Majority of each
house
* Additional procedures apply for property related fees. ** Per Proposition 39 (2000), maximum tax rate limits and other conditions apply for a 55% threshold school bond or threshold is two-thirds.

ATTACHMENT A
9 Counties and cities may impose a variety of taxes. Taxes fall into one of two categories: general or special.

A general tax is imposed to raise general-purpose revenues. Counties and cities may use revenues from a general tax for any lawful public purpose. A majority of voters must approve the decision to impose, increase or extend a general tax. A general tax may only be submitted for voter approval at an election for city council or board of supervisors unless a unanimous vote of the governing board declares an emergency.

A special tax is a tax imposed for a specific purpose. For example, a city may increase the sales and use tax by adding a special use tax for public safety, the acquisition of open space or transportation projects.

All taxes imposed by special districts are considered special taxes.

Since the tax is for a specific purpose, the revenues may only be used for that purpose. Two-thirds of voters must agree to enact, increase or extend a special tax.

General Tax Special Tax
Use of
Revenues
Unrestricted Specific purpose
Governing
Body
Approval
• Counties and general
law cities: two-thirds
• Charter cities: majority
• Transactions and use
taxes: two-thirds
• Special districts may
not adopt general
taxes.

Majority
Voter
Approval
Majority Two-thirds
Other
Rules
A general tax election
must be consolidated with
a regularly scheduled
general election of
members of the
governing body, unless
an emergency is declared
by unanimous vote
(among those present) of
the governing body.

Special tax funds must
be deposited in a
separate account. The
taxing agency must
publish an annual report
including: 1) the tax rate;
2) the amounts of
revenues collected and
expended; and 3) the
status of any project
funded by the special
tax.

County Property Tax
Administration
County Assessor.

The assessor sets values
on property and produces
an annual property tax
assessment roll.

County Auditor-Controller.

The auditor-controller
receives the assessed values
from the assessor and
calculates the amount of
property tax due.

County Treasurer-Tax
Collector. The treasurer-tax
collector administers the
billing, collection, and
reporting of property tax
revenues levied annually
throughout California for not
only the county, but also
cities, schools and special
districts.

ATTACHMENT A
10 PROPERTY TAXES
All counties and cities in California receive property tax revenues.

Many special districts do too. For all counties and most cities and non-enterprise special districts, property taxes are the largest source of discretionary revenues.

How Property Taxes Are Calculated in California
The property tax is imposed on “real property” (land and permanently attached improvements such as buildings) and tangible personal property (movable property such as boats, aircraft and business equipment).

The maximum tax rate permitted on real property for general purposes is one percent of the property's assessed value plus voter approved rates to fund indebtedness (general obligation bonds, requiring two- thirds voter approval).

The tax rate is applied to the assessed value (AV) of the property.

The assessed value of real property is the “full cash value” of the property in 1975-76 or at change of ownership, whichever is more recent, adjusted annually by the change in the Consumer Price Index (CPI), not to exceed an annual increase of two percent. The value of new construction is additional. If a property changes hands, then the assessed value becomes the full cash value upon change in ownership.

If a property’s market value falls below its factored base year value, it may be temporarily reassessed to its lower actual value but in future years may be reassessed at the lesser of its actual value or its factored base year value. This can result in increases of more than two percent as a property’s actual value returns to its earlier value, as when the housing market rebounds from a slump.

Property Tax Revenue Distribution
Counties allocate property taxes to the county as well as cities, special districts and school districts within the county according to state law. Allocations among local agencies vary from place to place due to differences in the service responsibilities among agencies serving different areas and differences in the tax rates enacted by those agencies prior to Proposition 13 in 1978. Full-service cities generally receive higher shares than those that do not provide the complete range of municipal services. For example, in a city where fire services are provided by a special district, the city will get a lower share, with a portion of the property tax revenues going instead to the special district.

ATTACHMENT A
11 Property tax revenues among local governments are, of course, also dramatically affected by differences in the assessed value of properties among jurisdictions. A ten percent share in a community of average property values will result in less revenue than in a similar size wealthy bedroom community, or a community that also has a sizable business/industrial area.

Property Tax in Lieu of Vehicle License Fee
In addition to their regular apportionment of property taxes, cities and counties receive property tax revenues in lieu of Vehicle License Fees (VLF). In 2004, the Legislature permanently reduced the VLF rate from two percent to 0.65 percent and compensated cities and counties for their revenue loss with a like amount of property taxes, dollar-for-dollar.

Each agency’s property tax in lieu of VLF allocation increases annually in proportion to the growth in gross assessed valuation in that city or county.

What is “ERAF?”
The property tax revenues
received by school districts
in each county include
amounts from the county
“Educational Revenue
Augmentation Fund”
(ERAF) created by the
California Legislature in
1991 as a way to reduce
state general fund spending
on schools. These funds
receive some property tax
that was previously
allocated to counties, cities
and special districts.

Since 2004, California’s
Constitution has prohibited
the Legislature from
increasing the amount of
property tax shifted from
counties, cities and special
districts to ERAF or similar
schemes. The state
Constitution requires a two-
thirds vote of the Legislature
to change the allocation of
property tax among the
county, cities and special
districts within a county.

ATTACHMENT A
12 SALES AND USE TAXES
Consumers are familiar with the experience of going to a store, buying something and having an amount added for sales tax.

Services are generally exempt from the sales tax as well as certain items, like most groceries and medicine. The sales tax is assessed as a percentage of the amount purchased.

The “base” statewide sales tax rate of 7.25 percent includes amounts to:
• T he state general fund (3.9375 percent),v
• C ounty realignment programs (state health/ welfare and corrections / law enforcement programs shifted from the state, 1.5625 percent),
• S upplemental local law enforcement grants (0.50 percent),vi • T ransportation programs in the county where the transaction occurs (0.25 percent), and
• T he city where the transaction occurs (1.00 percent).vii If the transaction occurs in an unincorporated area, the 1.00 percent amount goes to the county.

Cities, counties and countywide transportation agencies may impose sales tax rates to be added on to the “base” statewide sales and use tax rate. The add-on rates are actually “transactions and use taxes” and are allocated to the jurisdiction where the taxed product is received or registered (as in the case of a motor vehicle purchase). Over 120 cities have enacted transaction and use taxes of up to one percent, most commonly with majority voter approval for general purposes. Many counties and county transportation agencies have enacted rates, most commonly with two-thirds vote for specific purposes. Under current state law, the maximum combination of transactions and use tax rates in any location may not exceed two percent.
viii
State Sales and Use
Tax Administration
The State Board of
Equalization collects local
sales and use tax revenues
from the retailer and sends
revenue from local rates and
allocations back to cities and
counties. In addition to
administering the sales and
use tax system, the State
Board of Equalization collects
and allocates other state
taxes including fuel, tobacco
and alcohol taxes.

The “Use Tax” Part of
the Sales and Use Tax
California’s sales tax has a
relative called the “use tax.”
While the sales tax is
imposed on the seller, the use
tax is imposed on the
purchaser and at the same
rate as the sales tax. The
most common example of use
tax is for the purchase of
goods from an out-of-state
retailer for use in California.

Out-of-state retailers doing
business in California are
required to report to the State
Board of Equalization the
jurisdiction to which sold
items are delivered. If the
retailer has a physical
presence (nexus) in
California, they must collect
use tax when goods are
delivered to purchasers in this
state. If the seller does not
collect and remit the use tax,
the purchaser is legally
obligated to report and pay.

ATTACHMENT A
13 Business License Tax (BLT)
Most cities and a few counties have enacted business license taxes. Business license tax rates are set individually by each city and county most commonly based on gross receipts (overall business revenue) or levied at a flat rate, but may be based on the quantity of goods produced, number of employees, number of vehicles, square footage of the business or some combination of factors.

If a business operates in more than one city, a city may only tax that portion of the business’s activities conducted within the city. In most cases, business license taxes are not imposed for regulatory purposes (as the term “license” might imply) but to raise revenues for general municipal purposes (i.e. a tax). If imposed as a fee to pay for the cost of regulating the business, the fee may not exceed the reasonable cost of regulating the business. (See “regulatory fees.”) Transient Occupancy Tax (TOT) or Hotel Bed Tax
Most cities and some counties impose a transient occupancy tax or hotel bed tax on persons staying thirty days or less in hotels, motels and similar lodgings, including mobile homes. A county may impose a transient occupancy taxes only in the county area outside city limits. Typically, the lodging provider collects the tax from guests and turns the funds over to the county or city.

Transient occupancy taxes are imposed by most cities and counties and range from three and a half percent to 15 percent. For cities with a transient occupancy tax, it provides seven percent of general revenues on average, and as much as 17 percent in some cities. Any increase or extension of a local tax requires voter approval.

Utility User Tax (UUT)
Many cities impose utility user taxes on the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telephone (including mobile phone and long distance), sanitation and cable television. Counties may levy utility user taxes in county area outside city limits. Any increase or extension of a local tax requires voter approval.

Utility companies usually collect utility user's taxes from their customers as part of their regular billing procedures and remit the funds collected to the city or county which imposed the tax.

Over 150 cities and a few counties levy utility user rates varying from one to 11 percent. For those jurisdictions with utility user taxes, it provides an average of 15 percent of general revenue and often as much as 22 percent.

Parcel Tax
A parcel tax is a special tax on a parcel – or unit – of real property. Unlike the property tax, a parcel tax may not be based on the value of property. Instead, parcel taxes are generally based on a flat per-parcel rate.

A parcel tax may be enacted, increased or extended by a city, county, special district or school district only with two-thirds voter approval, even for general purposes.

Documentary Transfer Taxes and Property Transfer Taxes
A documentary transfer tax is a tax imposed on the transfer of interests in real estate. Counties tax at a rate of 55 cents per $500 of the property’s value. Cities may impose the tax at up to one half of that amount, which is credited to the payment of the county tax. The Constitution allows charter cities ix to

ATTACHMENT A
14 enact a property transfer tax, with voter approval, on the value of real estate that is sold. In these cases, the entire county documentary transfer tax rate goes to the county. All cities and counties in California have documentary transfer taxes or property transfer taxes.

Other Taxes
A city or county may impose other types of taxes within the limitations of and if not prohibited by state law. These include: admissions taxes, parking taxes, construction/development taxes, local vehicle registration taxes.

ATTACHMENT A
15 SERVICE CHARGES, ASSESSMENTS AND FEES
Utility Rates
Utility rates are fees for utility services charged to users who pay for special district, county or city provided water, sewer, electric or other utility services. Utility rates cover some or all of the cost of providing the service, which may include operations, maintenance, overhead, capital improvements and debt service.

Utility rates for water, sewer services and certain other utilities belong to a special category of fees called a “property-related fees.” A local government must follow certain specific procedures to impose, extend or increase a property-related fee.

To impose a property-related fee, the agency must first hold a public hearing. At the hearing, a majority of affected property owners can prevent the fee’s adoption by filing written protests. If a majority of affected property owners do not protest the fee and the fees pays for sewer, water or refuse collection, then an election is not required and the governing body may approve the fee.

Other property-related fees require approval, either of two-thirds of the electorate residing in the affected area or of a majority of the owners of the property who would pay the fee.

Benefit Assessments
Assessments are charges by cities, counties or special districts on real property to pay for public facilities or services within an area which benefit either real property or businesses. A common type of assessment is one used to pay for landscaping and lighting in a neighborhood. The amount of the assessment must reflect the special benefit to the property that results from the improvements.

Assessments on property are typically collected through the owner’s annual property tax bill.

A local government must follow certain specific procedures to impose benefit assessments. When a local agency considers an assessment, a majority of property owners may defeat the assessment in a public hearing procedure. If the proposed assessment is not defeated in a public hearing procedure, then a majority of the property owners subject to the charge must approve the assessment by a mailed ballot. The property owners’ votes are weighted according to how much their property will be charged.

User Fees
A city, county or special district may impose fees, charges and rates for services and facilities it provides. Examples include fees for checking plans for new construction or for recreation classes. The amount of a fee may not exceed the cost of providing the service or granting a benefit or privilege. This cost may include overhead, capital improvements and debt service.

Regulatory Fees
Regulatory fees pay for the cost of issuing licenses and permits, performing investigations, inspections and audits and the administrative enforcement of these activities. Examples include a fee to pay for the cost of processing pesticide license applications or a fee to inspect restaurants for health and safety compliance.

ATTACHMENT A
16 Development Impact Fees
Development impact fees are imposed on new construction (like new houses, apartments, shopping centers or industrial plants). They pay for improvements and facilities required to serve new development and to reduce the impacts of new development on a community.

Development impact fees (also known as “AB 1600 fees” after legislation adopted that governs such fees) pay for community amenities such as streets, sewers, parks and schools. They may not be used for day-to-day operating expenses.

The ordinance or resolution establishing the fee must explain the connection between the development project and fee. For example, a library impact fee must be connected to the demand for library services created by the construction of the development project.

The amount of the fee must not exceed the cost of providing the service or improvement that the fee pays for.

Local Debt Financing Tools
Local governments borrow money to pay for land, facilities and equipment that may require more funding than current revenues provide. Not a revenue source, but a way to leverage the timing of revenues, debt financing methods are important tools in government finance. Local governments may issue bonds and other debt instruments to finance improvements and services. These loans are paid off through taxes, assessments or fees. A variety of debt financing tools are available:

• General Obligation Bonds. General
obligation bonds are essentially IOUs
issued by public entities to finance large
projects. General obligation bonds are
backed by property tax revenue, which is
used to repay the bond over a twenty- to
thirty-year period. Increasing the property
tax to repay the debt requires two-thirds
voter approval and may only be done to
acquire or improve real property.
• Lease-Purchase Agreements. In a lease-
purchase agreement, sometimes called
“certificates of participation,” the agency
leases an asset for a period of years with
the option to purchase the land or
improvement at the end of the lease. The
amount of the lease is equivalent to the
principal and interest that would be paid if
the transaction were financed as a loan.

• Benefit Assessment and Special Tax
Financing. Benefit assessment financing is
supported by benefit assessments on the
property to fund acquisition of property and
improvement of infrastructure and additional
facilities of benefit to the property that is
charged. Similarly special taxes, such as Mello-
Roos taxes, may be financed with bonds
to provide public improvements.
• Revenue Bonds. Revenue bonds are issued
to acquire, construct or expand public projects
for which fees, charges or admissions are
charged. Because the debt service is paid from
income generated by the facility or related
service, such debt is considered self-liquidating
and generally does not constitute debt of the
issuer, subject to constitutional debt limitations.
• Tax Allocation (Tax Increment). Tax
allocation bonds (sometimes referred to as tax-
increment financing) are issued by Enhanced
Infrastructure Financing Districts or Community
Revitalization and Investment Authorities and
repaid from the growth in property tax revenue
(i.e., tax increment) and other designated
revenues over a certain period, largely as a
result of the funded projects in the area.

ATTACHMENT A
17 REVENUES FROM OTHER GOVERNMENT AGENCIES
Counties, cities and many special districts also receive revenues from the state and federal government. For example, over half of county revenues statewide come from state and federal sources. This reflects the role of counties in implementing state policy and programs for health and human services.

Gas Tax or Highway Users Tax
The state imposes per gallon tax on gasoline of 27.8 cents as of July 1, 2016. These funds are apportioned to cities and counties, primarily on the basis of their populations. Local gas tax revenues must be spent on research, planning, construction, improvement and maintenance of public streets, highways and mass transit. The federal government’s 18.4 cents per gallon rate pays primarily for federal highways with some local grants.

Motor Vehicle License Fee (VLF)
The Motor Vehicle License Fee is a state imposed and collected tax on ownership of a registered vehicle. Counties receive vehicle license fee revenues to fund certain health, social service and public safety programs that were realigned to counties in 1991 and 2011.

State Public Safety Sales Tax
Proposition 172, a ballot measure approved in 1993, imposed a one-half percent state sales tax to be used for local public safety activities. The state distributes Proposition 172 revenues to each county based on its proportionate share of statewide taxable sales. Many cities receive a share of those funds based on losses to the state’s ERAF property tax diversions.

State Mandate Reimbursement
The state constitution requires the Legislature to reimburse local governments for their costs to implement a state-mandated new program or higher level of service in an existing program. The Constitution requires the Legislature to suspend most state mandates in any year in which full funding is not provided for that mandate. The Commission on State Mandates determines the level of reimbursement in response to a claim for reimbursement filed by a local agency. The process typically takes several years during which time, local governments must spend money to comply with the mandate.

Federal and State Grants and Aid
The federal and state governments provide a wide variety of funds to counties, and a more limited set to cities and special districts. Federal and state grants comprise a large proportion of county revenues because of the many programs and responsibilities counties carry out on behalf of the federal and state governments. These funds are almost entirely restricted to specified uses. Examples include certain health, mental health, social and child welfare services.

ATTACHMENT A
18 Categorical grants support a defined program area. Categorical grants typically go to local agencies that either meet predetermined funding criteria or compete for project funding through an application process.

Block grants provide funding to a broad functional area. For example, federal Community Development Block Grant (CDBG) funds support local housing and economic development activities.

RENT FOR USE OF PUBLIC PROPERTY
Rents, Royalties and Concessions
Another way cities and counties and some special districts pay for public services is to charge rent for use of the public’s property. An example is royalties from natural resources taken from land the public owns. Others include selling advertisements in publications or on buses, as well as, receiving a percentage of net profits from concessionaires operating on public property.

Franchise Fees
Franchise fees are a form of rent for use of public streets and roadways. Examples of businesses that pay franchise fees include trash collectors, cable television companies, electric utilities and oil and natural gas pipeline companies. Federal and state law limits the amount of some franchise fees (for example, video and cable television franchise fees). Franchise fees for provision of video services (like television programming) are limited and administered by the state.

FINES, FORFEITURES AND PENALTIES
Violations of the law often result in a fine of some kind. Fines, forfeitures and penalties may be imposed for many reasons. Typical examples include traffic violations, court fines, penalties and interest on late or unpaid taxes.
• State law determines the distribution of fines and bail forfeitures imposed by the state.
• State law apportions revenues for parking violations and surcharges between issuing agencies and the counties.
• A city or county may impose fines, forfeitures and penalties for civil violation of local ordinances.
• Bail for local code violations
charged criminally is established
by the local courts with input from the city or county.

Maintenance of Effort
Requirements (MOE)
When cities and counties
receive funding for programs
from the state or federal
government, such funding
may come with strings
attached. A common
condition is that the city or
county commit to a certain
level of funding. This
commitment is called
“maintenance of effort.”

Local agencies also receive
reimbursement for revenue
lost as a result of some tax
exemptions and reductions.

An example includes the
homeowners’ property tax
exemption, which eliminates
the property tax on a small
portion of the assessed
valuation of owner- occupied
residential property.

ATTACHMENT A
19 OTHER REVENUES
There are other local government revenues, comparatively minor in amounts. These include interest earned on investments, sales of surplus property and gifts.

ATTACHMENT A
20 ACKNOWLEDGEMENTS
Special thanks to Michael Coleman whose expertise contributed to the 2016 update of this publication. Michael Coleman is a leading expert on California local government revenues, spending and financing. He is the creator of CaliforniaCityFinance.com, the California Local Government Finance Almanac, an online resource of data, analyses and articles on California municipal finance and budgeting.

The Institute also appreciates the contributions from the staff of the California Special Districts Association, the California State Association of Counties and the League of California Cities for their contributions and suggestions to this revised document.

ATTACHMENT A
21 ENDNOTES

i California Department of Finance, Demographic Research Unit www.dof.ca.gov/Forecasting/Demographics/Estimates/ ii Cal. Const. art. XI, § 1(a). See also Cal. Gov’t Code § 23002 (“The several existing counties of the State and such other counties as are hereafter organized are legal subdivisions of the State.”). People ex rel. Younger v. County of El Dorado, 5 Cal. 3d 480, 491, 96 Cal. Rptr. 557 (1971)
iii Cal. Const. art XIIIC, section 1(e)
iv A complete discussion of this list of seven exceptions can be found in the Proposition 26 Implementation Guide published by the League of California Cities.
v Proposition 30 imposed an additional state general fund sales tax of 0.25 percent from 2013 through 2016, for a total base rate of

7.5% during that time.
vi See “State Public Safety Sales Tax” under “Revenues From Other Government Agencies.” vii In some cities, by historic agreement, the city collects less than 1.00 percent, with the difference allocated to the county. For example, in San Mateo county each city receives 0.95% of transaction within its jurisdiction and 0.05% goes to the county general fund. For a full list of local sales tax rates see Table 23A of the California State Board of Equalization Annual Report. http://www.boe.ca.gov/annual/table23a.htm
viii Except in the counties of Los Angeles, Alameda and Contra Costa where the maximum is 2.5 percent. Revenue and Tax Code §7251 et seq.
ix For more information on Charter Cities see www.cacities.org/chartercities

Resources for Further Information
Coleman, Michael. California Municipal Revenue Sources Handbook, League of California Cities 2014.

Multari, Michael, Michael Coleman, Kenneth Hampian, Bill Statler. Guide to Local Government Finance in California, Solano Press Books, 2012.

California Legislative Analyst’s Office. www.lao.ca.gov “California Local Government Finance Almanac: Data, Statistics, Analyses on California City, County and Special District Finance.” www.californiacityfinance.com “Financial Management for Elected Officials.” Institute for Local Government. www.ca-ilg.org/post/financialmanagement
“Learn About Cities.” League of California Cities. www.cacities.org/Resources/Learn-About-Cities “What Do Counties Do?” California State Association of Counties. www.csac.counties.org/californias-counties
“What are Special Districts and What Do They do?” California Special Districts Association. www.csda.net/special-districts/

ATTACHMENT A

Notes

__________________

__________________
______________ _________________________________________

ATTACHMENT A

ABOUT THE INSTITUTE FOR LOCAL GOVERNMENT

The Institute for Local Government (ILG) is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties and the California Special Districts Association. Its mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities.

For more information and to access the Institute’s resources, visit www.ca-ilg.org.

ATTACHMENT A

www.ca-ilg.org
1400 K Street, Suite 205
Sacramento, CA 95814

ATTACHMENT A
INSTITUTE FOR LOCAL GOVERNMENT | PUBLIC ENGAGEMENT IN BUDGETING www.ca-ilg.org | 1

45.30% 42.40%

35.20%

28.30%
Uninformed
and
Disengaged
Uninformed
and Engaged
Informed and
Disengaged
Informed and
Engaged
Probability: Belief that Sales Tax Rate
is "Too High" When People Are:

Budgeting is one of the most important decisions
local agencies make.

Why involve the
Public in Budgeting?

PUBLIC ENGAGEMENT IN BUDGETING

• The annual budget is typically the strongest
statement of the local agency’s priorities for
the community. As such, it is important that the
community is involved in the development of
this document.
• Meaningful public involvement can help
residents understand the hard choices that
budgeting entails, and assist policy-makers in
better understanding the programs and
services residents value most.
• Increased public understanding about local
agency budgets, including revenues, expenses
and challenges can lead to greater support for
budgetary decisions as well as for measures to
increase effective use of local revenues.
• Transparency about the local agency finances
and the budget decision-making process
promotes public trust and confidence in the
agency’s stewardship of taxpayer dollars.
• The International County/City Management
Association considers resident participation a
core competency for successful public
managers.
• The budgeting process allocates scarce
taxpayer dollars to services, programs and
facilities that play a key role in determining the
community’s quality of life.

What Is “Public Engagement?”
Public engagement works to increase the extent to
which residents become more informed about
local issues and participate more effectively in
local decision making. Approaches include:
• Public information
• Public consultation
• Public deliberation
• Sustained public problem solving

► More information:
www.ca-ilg.org/
document/what-public-engagement

Source: Center for California Studies, Civic Engagement and Local Fiscal Attitudes: 2013 Survey of Californians

ATTACHMENT A
INSTITUTE FOR LOCAL GOVERNMENT | PUBLIC ENGAGEMENT IN BUDGETING www.ca-ilg.org | 2

Using Consultants Successfully
Local agencies sometimes find it helpful to get
assistance from public engagement consultants.

► More information:
www.ca-ilg.org/PEConsultantTips

Choosing the Right Approach Means
Asking the Right Questions
• What type of input do staff and officials want
from the public relating to budget decisions— a
vision, an expression of broad community values,
new ideas or choices among options, or ranked
or unranked sets of ideas or preferences?

• How will the public’s preferences and/or ideas
be considered in final budget decision-making?

• Is the goal solely a one-time process or also to
build an ongoing local agency and community
capacity for public engagement?

• In terms of the desired participation, is the goal
to hear:
- From a broad cross-section of community?
- From those with present direct interest in
the subject, including stakeholders or
stakeholder groups?
- Or a combination of both of these groups?

• What time period as well as financial and staff
resources can be devoted to the effort?

• Is broader community understanding and
support for the ultimate budget decisions the
goal? How important is that goal?

• Is the local agency (elected and staff) clear
about its public engagement commitment, goals,
and process. Is there clear communication
between elected officials and staff?

• How comfortable are policy-makers with public
involvement in budget decisions? Are they
willing to strongly consider community opinion,
even if it means reducing spending elsewhere in
the budget?

Tools to Consider
Once the purposes for engaging the public are clear,
the task becomes selecting the approaches that best
fit the goals. Often using more than one tool will
secure the broadest participation.

Surveys: These provide a snapshot of public
opinion at any given time; methods can include
online, phone, mail, or in person (for example, using
instant polling devices).

When to use: When seeking input on budget
balancing choices or strategies.

Online Forums (Social Media): Technological
platforms that allow for a virtual exchange of
information and preferences.

When to use: To gather input from a large number
of people, on their schedule, from their home or
office.

Advisory Boards, Commissions and
Committees: Community members, typically
representing interests, groups, areas of expertise or
geographic areas are selected to provide input on
budget goals, issues, priorities and decisions.

When to use: When seeking to create a conduit for
information between communities and local agency.

Workshops: Opportunities for information
sharing, discussion and feedback on budget
goals and issues.

When to use: Can give a significant number of
community participants an opportunity to grapple
with budget issues.

Deliberative Forum: Similar to a workshop, but
usually involves more information sharing and
increased time for participant dialogue.

When to use: When budget development is
contentious and more in-depth and informed public
input is desired.

Participatory Budgeting: Allocation of a portion of
revenues for local agency projects and programs by
residents, utilizing an extensive nomination,
community forum and voting process.

When to use: When seeking to develop extensive
community involvement in budget choices,
particularly when there are significant differences of
opinion in the community about spending new tax
dollars or one-time funds, where community trust is
low and/or where there are “new” revenues to
allocate.

ATTACHMENT A
INSTITUTE FOR LOCAL GOVERNMENT | PUBLIC ENGAGEMENT IN BUDGETING www.ca-ilg.org | 3

Communication and Engagement
Information and outreach are essential components of any public engagement strategy:
• Budget and Financial Information. For the public’s input to be helpful, it must reflect the realities of the agency’s fiscal situation. This requires that the public have appropriate and accessible information about both the budget process and the public agency’s finances. • Process Information. Another component of the communications strategy is sharing information about the budget decision-making process and the opportunities residents have to participate in discussions and share their thoughts.
• Inclusive Education and Outreach Strategies. For decision-makers to hear from an informed and representative cross-section of the community, the agency must use education and outreach strategies that reflect the diverse ways that community members receive information. • Feedback Loops. It is important that residents understand how their input influenced the ultimate budget.

This could be accomplished through a community newsletter, a section of the budget narrative, or social media tools

► More information: www.ca-ilg.org/EffectivePE-Strategic-Communication

One Strategy: Start with Goals
The Government Finance Officers Association (GFOA), the leading professional organization for public agency finance professionals, recommends that the budget process be tied to goals. Such goals can define what a community wants to preserve or what it wants to move toward (something GFOA calls the “preferred future state of the community”).

The budget process is a tool to realizing those goals, involving the allocation of resources to fund local agency services, programs and facilities which are a key part of the strategy for accomplishing the goals. Such goals also help decision-makers and the community set priorities for allocating limited resources.

Such goal setting can occur as part of the budget process or a separate strategic planning process. It is often helpful to begin the goal-setting process several months in advance of the annual budget process, so that the budget will reflect the key priorities of the city council and community.

Goal Setting Question Example: What are the most important things for the city/county/school/special district to focus on over the next five years?

A Strategy for Sustaining Public Engagement
A Working Group on Legal Frameworks for Public Participation has produced a model local ordinance for public participation as a tool for local agencies to use in committing to inclusive and authentic public participation in local agency decision-making processes.

► More information: www.ca-ilg.org/post/new-strategy-sustaining-public-engagement

Engage the Full Spectrum of Your
Population

You may want to consider that participation
in public engagement efforts more fully
reflect community
“The mission of the budget process is to help decision- makers make informed choices about the provision of
services and capital assets and to promote stakeholder
participation in the process.” [emphasis added]

—National Advisory Council on
State and Local Budgeting

ATTACHMENT A
INSTITUTE FOR LOCAL GOVERNMENT | PUBLIC ENGAGEMENT IN BUDGETING www.ca-ilg.org | 4

For Additional Information

 A Local Official’s Guide to Public
Engagement in Budgeting
www.ca-ilg.org/engaging-public-budgeting

 Effective Public Engagement
through Strategic Communication
www.ca-ilg.org/EffectivePE-Strategic-
Communication

 Broadening Participation
www.ca-ilg.org/broadening-participation

 Transparency Strategies
www.ca-ilg.org/transparency-strategies

 Public Engagement Key Questions for
Local Officials
www.ca-ilg.org/PublicEngagementKeyQuestions

 GFOA, Best Practices in Budgeting, Principle 1
www.gfoa.org/services/nacslb/
introprinciples.htm#I

 GFOA Resource: Best Practices in Budgeting
www.gfoa.org/services/nacslb/

 Information on Local Agency Finance
http://www.ca-ilg.org/Budgeting-finance

 Evaluating Public Engagement Activities
www.ca-ilg.org/
measuring-public-engagement-success

 ICMA Resource: Practices for Effective Local
Government Management
http://webapps.icma.org/credentialing/Practices.
pdf

The Institute for Local Government is the
nonprofit research and education affiliate of the
League of California Cities, the California State
Association of Counties and the California
Special Districts Association.

Its mission is to promote good government at
the local level with practical, impartial, and
easy-to-use resources for California
communities.

The Institute’s current program areas include:
• Local Government Basics
• Public Engagement
• Ethics and Transparency
• Sustainability
• Collaboration and Partnerships

The Institute also gratefully acknowledges
the following individuals who reviewed this
document and offered their comments prior
to publication:
• Dan Keen, City Manager, City of
Vallejo
• William Statler, Municipal Financial
Management Consultant, Retired
Director of Finance & Information
Technology/City Treasurer, City of San
Luis Obispo

Public Engagement in Budgeting
www.ca-ilg.org/engaging-public-budgeting

Institute for Local Government
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208

ATTACHMENT A
Effective Advocacy and Key City Issues

ATTACHMENT A

League of California Cities 2022 Action Agenda

1. Secure funding to increase the supply and affordability of housing and reform state housing laws to retain local authority. Secure adequate and sustainable funding for cities to increase construction of housing at all income levels, particularly affordable housing and workforce housing. Reform state housing laws to ensure cities retain local decision-making to meet the needs of their communities.

2. Attain investments to strengthen and sustain critical infrastructure. Advocate for policies that strengthen the conditions of local streets, highways, bridges, public transit, and broadband to improve workforce and economic development. Secure support for the modernization and expansion of the statewide water grid, including infrastructure, storage, and conveyance. Work with stakeholders to provide cities with access to the tools needed to ensure projects are delivered efficiently and cost-effectively to meet current and future needs.

3. Secure increased funding and resources to prevent homelessness and assist individuals experiencing homelessness. Secure additional ongoing, flexible resources to provide navigation assistance, emergency shelters, and permanent supportive housing. Enhance city and county coordination and strengthen partnerships with stakeholders to ensure adequate wraparound services are available for adults and youth at risk of, or already experiencing, homelessness in our communities, and effectively address mental health and substance use disorders.

4. Strengthen disaster preparedness, resiliency, and recovery from climate change impacts through improved collaboration and resources. Secure additional resources and support to mitigate the effects of climate change, including catastrophic wildfires, drought, and sea level rise. Promote collaboration with other city, state, and federal governments, to strengthen disaster preparedness, resiliency, and recovery.

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2022 Legislative Calendar Summary

Note: This is a summary of the major legislative and budget actions taken by the Governor and Legislature. The majority of legislative and budget actions follow this timeline. However, there are always exceptions to the rules. Rule waivers, urgency measures, and budget measures can take a very different path.

January:
• Jan. 3: Legislature reconvenes
• Jan. 10: Deadline for the Governor to submit his 2022‐23 Budget Proposal to the Legislature
• Jan. 14: Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house in the odd-numbered year
• Jan. 21: Last day for any committee to hear and report to the floor bills introduced in that house in the odd-numbered year. Last day to submit bill requests to the Office of Legislative Council
• Jan. 31: Last day for each house to pass bills introduced in that house in the odd numbered year

February:
• Budget subcommittees begin to meet to discuss the Governor’s 2021‐22 Budget Proposal • Feb. 10-11: Cal Cities Policy Committee meetings
• Feb. 18: Deadline for individual legislators to introduce non‐urgency bills. Bills that contain an urgency clause, amend the constitution, or are authored by a legislative committee can be introduced after this date

March:
• With the majority of the bills introduced, legislators, lobbyists, and other interested parties begin research and negotiations on bills
• Legislative committees meet and vote on bills in the house of origin • Cities should expect to receive increased requests to submit letters and information on bills that impact their city
• Budget subcommittees meet to discuss the Governor’s 2022‐23 Budget Proposal

April:
• Budget subcommittees meet to discuss the Governor’s 2022‐23 Budget Proposal • April 7: spring recess begins
• April 18: Legislature reconvenes from spring recess
• April 28-29: Cal Cities Policy Committee meetings
• April 29: Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house

May:
• May 6: Last day for policy committees to hear and report to the floor nonfiscal bills introduced in their house
• May 11-13: Cal Cities City Leaders Summit, Sacramento • May 13: Last day for policy committees to meet prior to May 31 • May 14: Governor releases his revision to the budget

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• May 20: Last day for fiscal committees to hear and report to the floor bills introduced in their house. Last day for fiscal committees to meet prior to May 31 • May 23-27: Floor session only. No committees, other than conference or rules committees, may meet for any purpose
• May 27: Last day for each house to pass bills introduced in that house • May 31: Committee meetings may resume

June:
• Legislative committees begin to meet to discuss bills from the other house • Budget subcommittees complete their work on the 2021‐22 Budget • The Assembly and Senate Budget Committees meet to adopt the budget proposal from their house
• The Budget Conference Committee meets to reconcile differences between the Assembly and Senate budget proposals
• The Governor meets with legislative leaders to negotiate last minute differences on the budget
• June 9-10: Cal Cities Policy Committee meetings
• June 15: Deadline for Legislature to pass 2022‐23 State Budget • June 30: Deadline for Governor to sign 2022‐23 State Budget

July:
• July 1: Last day for policy committees to meet and report bills. This is the last chance for cities to weigh in before bills with a fiscal impact go to the floor for a full vote and is often the best chance to stop a bill
• July 1-Aug. 31: Legislative summer recess upon adjournment provided the Budget Bill has been passed. Legislators will be in their districts, and city officials are encouraged to meet with them on city priorities

August:
• Aug. 1: Legislature reconvenes from summer recess
• Aug. 12: Last day for fiscal committees to meet and report bills. This is the last chance for cities to weigh in before bills with a fiscal impact go to the floor • Aug. 25: Last day to amend bills on the floor
• Aug. 31: Last day for each house to pass bills. Summer recess begins upon adjournment

September:
• Sept. 7-9: League of California Cities Annual Conference and Expo, Long Beach • Sept. 7: Cal Cities Policy Committees meet as needed at Annual Conference • Sept. 30: Last day for Governor to sign or veto bills passed by the Legislature

November:
• Nov. 8: General Election

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A bird's eye view of the city of Sacramento and the state Capitol.

January 1, 2022 Features By Melanie Perron
2021 Legislative Year in Review
Melanie M. Perron is the deputy executive director of advocacy and public affairs for the League of California Cities and can be reached at [email protected].

For many, the beginning of 2021 felt like a continuation of 2020. COVID-19 continued to significantly impact the globe and cities throughout the state were still reeling from the economic impacts of the pandemic. Any guarantee of state or federal relief for cash-strapped cities was tepid at best. One silver lining was that the League of California Cities was able to build upon key relationships in the Legislature to advance top priorities for cities in 2021.

Many important bills that died in 2020 came back, often with favorable results for cities. Moreover, the state’s historic budget surplus of $100 billion, along with $8 billion for California cities through a federal relief package, created new opportunities to fund an array of city priorities.

Lawmakers were also more focused this year, introducing a whopping 2,421 bills, far more than in 2019 or 2020. Cal Cities monitored more than 70% of the bills introduced and engaged on the most important measures to cities. Of the 836 bills to reach the Governor’s desk, 92% were signed. Further, the Governor’s actions aligned with Cal Cities’ positions on bills 70% of the time, highlighting how critical it is that we engage on bills in the legislative process to try to stop or get amendments to those impacting cities the most.

Although this year seemed in many respects to be a repeat of 2020, the legislative results were anything but. Cal Cities’ many — and at times, monumental — wins this year at the state and federal level have demonstrated the strength of our organization, and most importantly, our members. Together, we successfully advanced each legislative priority in our 2021 Action Agenda.

An $8 billion lifeline for cities
At the beginning of the year, the state announced that it was flush with cash, despite predictions to the contrary, and the federal government was poised to deliver billions in aid to American families and

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businesses in yet another relief package. Unfortunately, both seemed reluctant to provide funding relief for cities, which had provided many new, pandemic-related services while maintaining existing services with shrinking budgets. Statewide, cities were facing a $7 billion shortfall. Save for $500 million in CARES Act state funding in 2020, cities had been left to fend for themselves.

Many powerful lawmakers at the federal level openly balked at the idea of providing any relief to cities.

However, in March, Cal Cities’ year-long research, lobbying, and grassroots efforts finally paid off.

Thanks to strong partnerships with the state of California and our Support Local Recovery coalition, as well as national partners like the National League of Cities, Cal Cities delivered on its first Action Agenda item: $8 billion in direct, flexible funding for cities of all sizes through the American Rescue Plan Act. The historic funding package has already had a transformative effect on many communities.

However, dollars do not guarantee success. Cal Cities worked closely with the U.S. Department of the Treasury and the California Department of Finance throughout the year to ensure cities’ concerns were addressed during the federal rulemaking process and that the application process was streamlined.

Those partnerships ensured that every city in California received American Rescue Plan Act dollars.

Working closely with the Department of Finance to get processes established quickly helped California be one of the first states to distribute funding to all its municipalities, whereas other states continue to struggle to do so. Cal Cities’ involvement was key to ensuring expedited and streamlined distribution of funds here at home while also keeping city officials updated with important information about resources and processes to access these funds through regular updates on the Cal Cities Guide to Local Recovery webpage.

Cal Cities fought hard to stave off housing bills that were most harmful to cities and supported bills to help cities plan for more housing.

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The state made a significant investment in the
production of affordable housing, but high-profile
housing bills undermined local control
For years, Cal Cities has sought ongoing dedicated funding from the state to help address California’s affordable housing crisis while preserving local decision-making. And for years, the state and Legislature has responded by proposing — or worse, passing — inflexible statewide mandates that prioritize the needs of developers over local communities, while simultaneously failing to provide any long-term resources to help cities plan for housing. Some bills have even upended or hindered existing housing plans. As a Cal Cities legislative priority this year, we fought hard to stave off housing bills that were most harmful to cities and supported bills to help cities plan for more housing. Some of the housing bills that undermine local decision-making made it through and were signed by the Governor, while important budget bills were largely positive for cities.

The state continued this year to make homelessness a budget priority. In total, the 2021-22 budget provides $10 billion for affordable housing and homeless programs. The budget specifically includes more than $2 billion over the next two years to help cities address homelessness and $2.2 billion for Homekey. The budget also includes more than $750 million to support affordable housing development. This funding marks an important shift from providing less generous, one-time funding to cities to address homelessness, to the state providing $1 billion annually for the next two years.

Additionally, the Legislature and the Governor have committed to making funding to address homelessness an annual priority.

In another significant win for cities, several bills infringing upon local control became two-year bills or failed to advance entirely, including AB 500 (Ward), AB 1401 (Friedman), and AB 989 (Gabriel). These bills would have added more decision-makers to the housing plan process, which would adversely impact cities, and would have likely stalled existing efforts to build more affordable housing.

Unfortunately, two bills of significant concern were ultimately signed into law, despite the fervent objections of California’s city leaders: SB 9 (Atkins) and AB 215 (Chiu). More than 240 cities joined Cal Cities in opposition to SB 9, which will require local governments to ministerially approve a housing development containing two residential units in single-family zones and urban lot splits. This ‘by right’ or mandatory approval scheme changes the rules midstream and as a result, may hinder housing plans already being implemented.

AB 215 slows existing housing efforts by adding a step to the housing element certification process requiring 40 additional days. Moreover, a last-minute amendment created a new three-year statute of limitations for any housing plan enforcement process. It also allows the Department of Housing and Community Development to appoint or contract with other counsel to represent the department in such cases if the Attorney General declines to represent them.

Cal Cities expects to see additional proposals over land use authority in the next session, particularly on state funding reporting requirements — which were not fully codified in this year’s budget trailer bills — and single-family zoning. Cal Cities continues to prioritize the need for resources that support the construction of affordable housing while preserving local control. Ultimately, this problem affects all Californians and requires extensive collaboration at the local, regional, and state levels.

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The pandemic shined a light on the state's massive digital divide. In 2021, Cal Cities pushed to protect and modernize infrastructure including broadband deployment.

California passes largest public broadband infrastructure investment in the country
The pandemic shined a glaring floodlight on many of the state’s inequities, including the massive digital divide. For years, Cal Cities has advocated for high-quality, affordable broadband in rural, urban, and suburban communities. In 2020, Cal Cities came close to securing a funding package, which ultimately crumbled due to legislators in-fighting during the end-of-session chaos, while many Californians struggled to stay connected while working from home and or attending school remotely.

Protecting and modernizing infrastructure was another Cal Cities priority this year and we pushed legislators hard on the issue. By the summer our efforts paid off. In July, the state passed a $6 billion broadband package. Until the passage of the federal government’s Infrastructure Investment and Jobs Act, this was the country’s largest ever public broadband infrastructure investment. Unlike previous funding attempts, this bill provides local leaders more opportunities to participate in broadband deployment. It also prioritizes the construction of networks in unserved areas, as well as those with lower speeds not suitable for education, commerce, and video conferencing. This ensures that services benefit those needing them the most.

Cal Cities also worked closely with Assembly Member Cecilia Aguiar-Curry and Senator Lena Gonzalez, who have both long advocated for high-speed, widely available, and reliable broadband to develop two complementary bills: AB 14 (Aguiar-Curry) and SB 4 (Gonzalez). The two measures prioritize equitable broadband deployment and make important separate tweaks to the California Advanced Services Fund, which supports broadband deployment. While a last-minute industry push was made to kill SB 4, cities came out strong, advocating to legislators about the need for these bills, which secured their passage in the Legislature and the Governor’s signature on both bills. These two

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lawmakers were honored for their persistent work to bring broadband to California’s unserved and underserved neighborhoods with the 2021 Distinguished Legislative Leadership Award at the Cal Cities 2021 Annual Conference and Expo.

AB 14 and SB 4 also were accompanied by a welcomed veto of SB 556 (Dodd), which would have forced local governments to make space on public infrastructure available to telecommunications providers. The Governor’s veto message largely mirrored Cal Cities’ arguments, with Gov. Gavin Newsom noting that provisions of the bill “conflict with and complicate some of the FCC requirements.” He also stated, “part of our achievements laid out in the broadband budget bill, SB 156 (Chapter 112, Statutes of 2020), enables and encourages local governments to take an active role in last mile deployment and, in doing so, drive competition and increase access.” Cities could not have had a better year regarding affordable and reliable broadband. Collectively, these wins are the result of years of continued intense advocacy from Cal Cities and its members. Cities put themselves at the forefront of a national conversation about broadband access and demonstrated their capability to provide high-quality services to all their residents. In doing so, we were able to fend off bad bills and lay the groundwork for transformative change in cities.

SB 155 contains an ongoing, ten-year appropriation of funding for healthy forest fire prevention programs, prescribed burns, and other fuel reduction projects.

Cal Cities secures much-needed funding for disaster
preparedness, resiliency, and recovery
With unprecedented pandemic-related shortfalls, legislators and the Governor were forced to rework the 2020 state budget. One of the first major areas chopped was funding for disaster preparedness, resiliency, and recovery. The narrative was substantially different in 2021. For starters, the state’s

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coffers were overflowing providing significant opportunities to create and reimagine programs and provide resources. Second, California was entering another devastating — and likely multi-year drought — as well as an increasingly long and volatile fire season. It was clear that direct, flexible funding was desperately needed for those on the frontlines of climate change: cities.

With strengthening community disaster preparedness, resiliency, and recovery as another Cal Cities priority in 2021, and building on last year’s work, Cal Cities partnered with key legislators to secure $4.5 billion in the state budget to help cities prepare for, fight, and recover from wildfires, as well as update local coastal plans and fund urban climate resiliency programs. In the final days of the legislative session, lawmakers also passed SB 155 (Committee on Budget and Fiscal Review) and SB 170 (Skinner), two trailer bills that provide millions for climate resiliency and disaster preparedness. Notably, SB 155 contains an ongoing, ten-year appropriation of $200 million to CAL FIRE for healthy forest fire prevention programs, prescribed burns, and other fuel reduction projects.

In 2020, the state could not even agree on a one-time climate change package. This year, every issue area, from sea level rise to extreme heat mitigation, received state funding.

Major Brown Act relief secured; proposed unfunded
mandate vetoed
In addition to Cal Cities’ top four priorities in our 2021 Action Agenda, other issues emerged and were a focus for our advocacy efforts. Unsurprisingly, Brown Act relief and modernization was a critical priority issue for many city officials in 2021. Last March, the Governor issued Executive Order N-29- 20, which was followed by subsequent executive orders, allowing cities to conduct remote meetings under modified Brown Act requirements. The Legislature passed, and the Governor signed, AB 361 (Robert Rivas) shortly before the order was set to expire, which lets cities conduct remote meetings under some similar conditions and rules, while also expanding this to include any declared state of emergency. At the urging of Cal Cities and other local government associations, the bill was amended to include an urgency clause, allowing cities to provide services and conduct city business safely and uninterrupted.

From the moment AB 339 (Lee) was introduced, Cal Cities led a coalition in strong opposition to the bill. While cities are committed to conducting public meetings transparently and providing opportunities for public participation, AB 339 was the wrong approach. The bill failed to consider the practical impacts of unlimited remote public comment on local agencies’ ability to both deliberate and act on items of importance to the public. The measure would have required cities to provide call-in and internet-based options, in addition to in-person options, for members of the public during any public meeting. By not including any clear ability to limit participation or length of testimony, the bill would have allowed a relatively small group of people from anywhere in the world to disrupt a local government meeting. With continued pressure from Cal Cities and local governments, the bill was significantly amended but remained problematic.

Although AB 339 passed out of the Legislature, it eventually was vetoed by the Governor, who shared many of Cal Cities’ concerns. He noted that the bill would “set a precedent of tying public access requirements to the population of jurisdiction,” “limits flexibility and increases costs for the affected local jurisdictions trying to manage their meetings,” and “puts the health and safety of the public and employees at risk.”

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The Governor’s veto of AB 339 is important; however, much work remains to be done. As such, we are actively looking at ways to revise and modernize the Brown Act to increase public access while protecting public health and safety.

Pandemic regulatory relief maintains local control
In a move to support California’s pandemic recovery, the Governor and the Legislature almost unanimously approved several pieces of legislation to build upon some of the state’s more successful pandemic-era rules: SB 314 (Wiener), AB 61 (Gabriel), and SB 389 (Dodd). All three Cal-Cities supported measures provide some regulatory flexibility or relief to qualified businesses serving alcoholic beverages in nontraditional spaces due to indoor dining restrictions. Cal Cities worked closely with SB 314’s and AB 61’s authors to secure key amendments that preserve local authority.

A good year for organic waste diversion
Although Cal Cities focuses much of its advocacy efforts on its yearly Action Agenda, it is also responsive to the evolving needs of cities. One key issue in 2021 was the need for additional funding and time to implement SB 1383 (Lara, Statutes of 2016) organic waste diversion regulations. Cal Cities worked closely with its members through a survey and a series of roundtables to determine the extent of the issue and with Senator John Laird on a legislative solution.

A longtime assembly member, former budget chair, and former Natural Resources Agency Secretary, Senator Laird was instrumental in helping cities secure funding and flexible compliance pathway. SB 170 (Skinner) includes $60 million in grant funding to help cities implement SB 1383 regulations and more than $100 million for organic waste infrastructure. Although far less than Cal Cities’ original ask, it is still the largest amount of money ever set aside for cities in a single fiscal year for SB 1383 implementation. Additionally, SB 619, which Senator Laird authored, gives local governments a pathway to compliance with SB 1383 and Cal Cities more time to secure additional SB 1383 funding.

Senator Laird was ultimately awarded the 2021 Distinguished Legislative Leadership Award at Cal Cities 2021 Annual Conference and Expo for his work in providing additional funding and time for SB 1383 regulations.

A good year for other environmental issues
For years, Cal Cities has been heavily involved in attempts to overhaul California’s plastic recycling system, a desire shared by many lawmakers, most notably Senator Ben Allen. This year, several innocuous, but notable recycling bills finally passed — despite fervent opposition from industry groups, potentially setting up a larger fight in 2022, including at the ballot box.

One of the more noteworthy measures is SB 343 (Allen) which clarifies which materials are suitable for recycling. Due to decades of greenwashing, many consumers wrongly assume that all materials with the word “recyclable” or the “chasing arrows” symbol are recyclable. These designations now will be reserved for materials that are truly recyclable and routinely sold to manufacturers to make new products. These changes will reduce contamination, lower waste volume, and improve recycling rates.

SB 343 passed due to a coalition of nonprofits and local government partners, including Cal Cities.

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Cal Cities also worked closely with cities and lawmakers to pass AB 1311 (Wood). Cal Cities, along with the California State Association of Counties and the Rural County Representatives of California, identified a crisis-in-making early on — zero access to certified recycling centers in numerous counties.

Using that information, Assembly Member Jim Wood crafted AB 1311, which expands the number of beverage container redemption opportunities under the California Beverage Container Recycling and Litter Reduction Act. The bill, which is a strong step in the right direction, will help create new opportunities for consumers to redeem their California Redemption Value and preserve the program’s core functions.

Unlike last year, dozens of environmental quality bills advanced to the Governor’s desk. Other significant bills include SB 1 (Atkins), which establishes new planning, assessment, funding, and mitigation tools for California to address and respond to sea level rise, and SB 323 (Caballero), a measure that gives public agency water and sewer rates the same protections already afforded to fees and charges that fund other essential government services.

Key transportation funding legislation
Transportation funding continues to be an issue for cities struggling to maintain their roads, streets, and bridges. Cal Cities secured much-needed relief to the maintenance of effort requirements under SB 1 (Chapter 5, 2017), which were included in the budget bill. This relief provides a two-year exemption from the state’s annual minimum expenditure requirements in the 2019-20 fiscal year, with proportional adjustments to their fiscal obligations through the 21-22 fiscal year.

While this was welcome news to many cities, others continued to seek creative ways to leverage their existing funds to help deliver needed local and regional projects. One strategy was to finance projects by partnering with other jurisdictions to pool transportation funds. However, under SB 1 (Beall, Statutes of 2017), it was unclear if cities had the authority to jointly sponsor local streets and roads

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projects. Cal Cities-backed legislation, SB 640 (Becker), clarified this additional flexibility for cities to access the funding while teaming up with other cities or counties.

Transportation funding continues to be an issue for cities to maintain their roads, streets, and bridges. Cal Cities secured much-needed relief to the maintenance of effort requirements under SB 1.

Under SB 640, two or more eligible cities, or one or more cities and a county, can combine resources on projects that affect multiple jurisdictions. The bill also consolidates reporting requirements into a single report making it easier for cities to provide the required information. A desperately needed bill, both changes will allow cities to negotiate more competitive rates, thus maximizing SB 1 dollars on regional projects, and adding flexibility to the spending of that funding.

While this is a step in the right direction, continued talks around a more sustainable funding source for road maintenance and construction are urgently needed.

Major pension bill unfairly punishes cities
Despite opposition from Cal Cities members and coalition partners SB 278 (Leyva) will become law in 2022. Under SB 278, if CalPERS determines that compensation agreed to under a collective bargaining agreement is non-pensionable, cities must pay penalties to the affected retired member, survivor, or beneficiary and CalPERS, with 10% going directly to CalPERS. This creates both a conflict of interest for CalPERS and places 100% of the total liability for such overpayments on public agencies. SB 278 is a de facto and retroactive benefit enhancement measure that will further strain local agency budgets at a time when the impacts of COVID-19 and retirement obligations are making it exceedingly difficult to effectively provide critical services for the public.

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Revenue and taxation measures yield mostly positive
results
This year, lawmakers were reluctant to alter existing revenue and taxation laws as many communities were still struggling to recover from the pandemic. This is in part because Cal Cities worked extensively to educate key lawmakers about these impacts, resulting in several bills being held. As a result, 2021 was a good year for cities in the revenue and taxation space, except for a key sales tax measure that failed to secure the Governor’s signature.

Two Cal Cities-supported bills, SB 60 (Glazer) and SB 219 (McGuire), were passed and signed. SB 60 allows cities and counties to impose larger fines for violations of short-term rental ordinances up to $5,000 for each violation, which will help prevent public health and safety violations related to short- term rentals. SB 219 provides much-needed flexibility to residents unable to pay their property taxes due to economic hardship caused by a shelter-in-place order. Additionally, SB 555 (McGuire), a bill that would have resulted in less effective tax collection from short-term rentals, was turned into a two-year bill.

SB 792 (Glazer) aimed to better inform the public’s understanding of online transactions and the flow of goods across the state with new, modernized reporting requirements. Cal Cities members and others advocated for better data about these transactions. However, the Governor vetoed the bill, noting that it creates a “burdensome and costly new reporting requirement for many retailers that is unrelated to their tax obligations.” Cities will have to continue relying on current analysis, which is constrained to modeling based on transaction and use tax (district tax) data from about half of California’s 482 cities.

Key amendments secured for significant police reform
bills
After the senseless death of George Floyd and the civil unrest that followed, it became clear that public safety and police reform policy would be a major priority of the Legislature this session. The Cal Cities Board of Directors voted in December 2020 to create a Public Safety Task Force, which would provide feedback and recommendations on public safety policy priorities. This allowed Cal Cities to remain highly engaged on these issues throughout the year, negotiating amendments that removed some of the more contentious elements for cities, while preserving the bills’ core functions and promoting appropriate transparency, reporting, and certification standards.

Cal Cities, California State Sheriffs Association, and the California Correctional Peace Officers Association played a key role in securing amendments to SB 16 (Skinner). As previously drafted, the measure would have made every incident involving unreasonable or excessive force and any sustained finding that an officer failed to intervene in such cases subject to disclosure. The bill now only mandates the disclosure of substantiated claims. Cal Cities and others removed their opposition, paving the way for the Governor’s eventual signature.

Cal Cities also secured substantial amendments to SB 2 (Bradford), which undercuts the federally held doctrine of qualified immunity and outlines a largely unworkable peace officer decertification process.

The amendments Cal Cities negotiated addressed financial concerns related to lawsuits under the Tom Bane Civil Rights Act, which would have seriously impacted cities financially. While these were critical amendments, Cal Cities remained opposed to the bill largely due to the new Peace Officer Standards

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and Training Commission advisory board, which removes police chiefs from the decision-making process. Despite our continued opposition, the Governor signed this measure.

Cal Cities supported AB 89 (Jones-Sawyer) after the author addressed concerns about the measure’s impact on recruitment and a lack of access to higher education in some communities. The signed bill takes a nuanced, collaborative, and thoughtful approach to the law enforcement certification process.

This measure includes the requirement to create a modern policing degree program by June 2023, as well as recommendations to provide financial assistance for students from historically underserved and disadvantaged communities.

One of the last bills the Governor acted on was AB 603 (McCarty), which he vetoed. The bill would have required cities to post details about money spent on law enforcement-related settlements and judgments online. Cal Cities argued that the measure would both undermine trust — as most defendants settle with the plaintiff out of economic necessity — and impose a significant, non- reimbursable cost statewide. The Governor partially agreed with Cal Cities, noting that the information is already available and could “have potentially significant General Fund costs associated with [it].” The bills passed this year largely mirror Cal Cities’ recently adopted peace officer decertification process policy. Bad actors need to be held accountable, but in a way that does not remove cities from the decision-making process. Bills like SB 2 (Bradford), while far from perfect, make moves in the right direction. Cal Cities will continue to focus advocacy efforts on improving that process and ensuring its transparency and effectiveness.

Outlook for 2022
In short, 2021 yielded positive legislative results for cities, largely thanks to the efforts of Cal Cities and California’s city officials. Despite monumental — and at times, seemingly insurmountable challenges — local leaders rose to the occasion and made sure lawmakers knew how bills would impact their communities.

But city leaders were not just their greatest advocates. They also demonstrated that, when given the right tools and information, cities can find solutions to some of the nation’s most pressing problems.

Working together with state and federal lawmakers, Cal Cities and its members were able to deliver some truly historic outcomes for California’s many diverse communities. 2022 will undoubtedly be another interesting year. Several key housing bills that failed to materialize may resurface in 2022, and a statewide drought and the continuing effects of climate change will influence many legislative conversations around water infrastructure, disaster preparedness, and climate resiliency. Pension sustainability, infrastructure funding, and other public safety reforms will also remain hot-button issues — all as local communities continue to recover from the economic and public health impacts of the pandemic.

The policy fight will not just be confined to the halls of the Capitol. Next year is also an election year, which means voters will be asked to decide the fate of several ballot initiatives in November 2022, many of which will significantly impact cities.

The 2022 election, as well as new redistricting lines, will certainly impact decisions and priorities in Sacramento. The Governor, as well as many lawmakers, will be up for reelection, some in new legislative districts. The election will most likely impact the Legislature’s agenda but given the

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Governor’s large margin of victory in the recall election, it’s difficult to anticipate how his reelection campaign may impact his priorities in 2022.

Given the magnitude of legislative issues that are left to be resolved and the ballot measure fights ahead of us, it will be more important than ever that in 2022 cities are united in their effort to affirm local decision-making. Cal Cities will continue to fight on behalf of cities to ensure that their voices are heard loud and clear in the Capitol and remain laser-focused on advancing the priorities that matter most to city leaders.

Together, we will work to uphold local authority, advance our legislative priorities, and improve the quality of life for all Californians.

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Policy Role in Land Use Planning

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As local officials review project applications –
whether they are acting as an elected official, an
appointed commissioner, or a staff member –
they evaluate the project’ s design and fit with the
surrounding community. As they do so, they must
grapple with some common questions:

What should the community look like? •
Are there community needs that are not •
being met?
How does the project relate to its surrounding •
environment?
Does the proposed use enhance the community •
both today and in the future?
The challenge is to incorporate big-picture
concepts into the weekly or monthly act of ruling
on individual project applications. Long-term
community goals must also be balanced against
economic, legal, safety, and other public policy
concerns. For example, residents may suggest a
narrower street design to reduce traffic hazards
and create a more compact feel in a planned
neighborhood, only to find that the fire marshal
believes that extra-wide streets are needed to assure
that emergency vehicles can get through in any
situation. All of these are valid concerns that make
the role of local officials challenging. Y et it is the sum of these incremental decisions, the ones made
day after day, that will ultimately shape the future
of the community.

The Typical Application
The typical development application comes in
many forms. Planning officials may review general
plan and zoning amendments, tentative or parcel
maps, planned unit developments, building permits,
conditional use permits, certain types of variances,
design review permits, development agreements,
environmental documents and other types of
applications.

The agenda for any given meeting may require local
officials to review an addition to a single-family
residence one minute and a complex mixed-use
or multifamily development the next. Even the
smallest project may raise a few unique issues. The
job of elected officials, appointed commissioners,
and professional staff is to ensure that those issues
are considered and addressed.

City council members and county supervisors are
not generally responsible for assessing all of the
technical merits of a development project. They
will usually receive advice from advisory bodies
such as the planning commission or design review
board. Staff will summarize the most important
technical points in the staff report. Although elected
officials or appointed commissioners may not see
(or need to see) all the information received by their
planning staff, it may be helpful to know what type
of information they use to evaluate a project.

Understanding the Basics of
Land Use and PLanning:

The Nuts and Bolts of Project Review
Project review is at the center of the process of local planning. Most planning decisions are made in response to project applications submitted by individual business owners, residents, property owners, and developers.

Understanding the Basics of Land Use and PLanning: the nuts and Bolts of Project review

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How to Review an Application
A reviewer can get a basic understanding of a project
by going through the following steps.

Compare to the General Plan and the Zoning
Ordinance. Is the project consistent with the general
plan and the zoning ordinance? Look at the range
of permitted uses, density, housing needs, structure
heights, circulation, environmental issues like
habitat preservation and open space protection, etc.

If the applicant seeks a zone change or general plan
amendment, the project’ s benefits should justify the
change and be consistent with surrounding planned
uses.

Understanding the Basics of Land Use and PLanning: the nuts and Bolts of Project review Compare the Vicinity Map and the Site Plan. How
does the proposed project fit in with the existing
community? Is it compatible with surrounding
properties and the street? Is there any relationship
between the adjacent buildings (both on and off the
project site), such as pedestrian walks, window-to-
window visual contact, noisy areas adjacent to quiet
areas, or shadows cast over plaza areas? Can changes
in the design address potential conflicts?
Check the Scale of the Plans. Understanding scale
will help decision makers get a feel for the actual
size of the project. A good way to interpret plans on
a human scale is to judge them in five- to six-foot
increments to see how the scale matches the size of a
typical person. A typical parking stall is 20 feet long, also a good reference point for scale.

Determine If There Are Public Views Worth
Protecting. Would the project obstruct the public view
of a landscape or landmark? Is there a public view of
a feature on the site itself that should be protected? If so, do the site plan and architecture take these public views into account?
Review Existing and Proposed Contours and the
Grading Plan. An outline of the building should be
drawn on a topographical map. Do slopes threaten
adjoining properties or detrimentally change the visual character of the area? Will floor elevations and parking facilities be graded to levels that are consistent with the landscaping plan and are not so high that buffers
such as landscaping would be ineffective? Is drainage
addressed so as to minimize the impacts of erosion on-
site and prevent off-site erosion?
Check the Circulation Pattern. How easily
can people reach the site by various modes of
transportation? Check circulation aspects for transit
riders, cars, delivery vehicles, pedestrians, and
bicycles. Are there points of conflict, such as walkways that would lead pedestrians through traffic or between
cars?
ChECklIST fOR REVIEWInG
An APPlICATIOn
Compare to the general plan ✔ and the zoning
ordinance
Compare the vicinity map and the site plan ✔
Check the scale of the plans ✔
Determine if there are public views worth ✔
protecting
Review existing and proposed contours and ✔
the grading plan
Check the circulation pattern ✔
Locate landscaped areas ✔
Check the materials and architectural ✔
elements
Review conservation practices ✔
Check the parking ✔ layout
Think about the future ✔

ATTACHMENT A
locate landscaped Areas. Does the proposed
landscape reflect the available water and can it be
irrigated with reclaimed water? Are native or natural
landscapes protected? Do landscaped areas soften
buildings, breaking up parking areas and long, blank
portions of wall? Are there areas for special landscape and hardscape treatment? Will existing trees be removed or should they be saved? Is the selection of plants and trees appropriate for the climate?
Check the Materials and Architectural Elements.

Review the materials and architectural elements of the
project. Do they incorporate features that are consistent throughout the neighborhood or district? Do they create visual interest? Do they match existing design guidelines or policies in the general plan or specific plan?
Review Conservation Practices. Recycled and
energy-efficient materials can reduce a project’ s impact on the environment. Is the building sited to reduce
energy consumption and does it respond to the solar
orientation of the site? Does the builder intend to use recycled materials? Is the project designed to minimize runoff (particularly from parking areas and other
paved or impervious areas such as roofs)? Are energy-
efficient materials—like windows and heating and
cooling systems—included in the plan? Are trees and
landscaping used to minimize energy consumption and
heat generation?
Check the Parking layout. Does the parking layout
and development reduce the ‘heat island’ effect of
large, unshaded parking lots? Do the aisles relate
well to entry and exit points? Is there a logical pattern for cars to follow? Is there sufficient landscaping to
screen parking from view or to break up expanses
of asphalt? If the project site fronts a pedestrian
area, is the parking tucked behind the building to
create a more vibrant streetscape? Are there adequate
pedestrian routes and disabled access accommodations
in the parking lot?
Think About the future. What is likely to happen
on adjacent undeveloped or potentially redevelopable
property? Does the project anticipate likely changes or is it adaptable? For phased projects, make sure that the first phase will stand by itself in case the next phase is never constructed.

RESOURCES fOR
fURThER InfORMATIOn
The Institute offers several publications on land
use topics, including guides in the Understanding
the Basics of Land Use series and a set of plain-
language, one-page descriptions of common land
use actions. For more information and resources on
planning and land use topics, visit ILG’s Land Use and
Environment Program at www.ca-ilg.org/landuse.

BASIC PROjECT APPlICATIOn InfORMATIOn
Each local agency maintains a detailed list of all the information needed from a project applicant, although most require the same basic information, including:

Signed Application ■■
Vicinity Map ■■
Existing Facilities Map ■■
Site Plan ■■
Grading Plan ■■
Architectural Elevations ■■
Materials Board ■■
Landscape Plan ■■
Environmental Questionnaire ■■
Additional information may be provided depending on the nature of the application. Examples include traffic analyses, biological studies, utility reports, lighting and signage plans, and phasing plans for large projects.

Understanding the Basics of Land Use and PLanning: the nuts and Bolts of Project review

ATTACHMENT A
Understanding the Basics of Land Use and PLanning: the nuts and Bolts of Project review ABOUT ThE InSTITUTE
fOR lOCAl GOVERnMEnT
The Institute for Local Government is the nonprofit
research affiliate of the League of California Cities
and the California State Association of Counties.

Its mission is to promote good government at the
local level.

The Institute’s current program areas include:

Climate Change•
Collaborative Governance Initiative•
Healthy Communities•
Intergovernmental Conflict Resolution•
Land Use and Environment•
Local Government 101•
Public Service Ethics•
The Institute is grateful to the following firms for their support for the land Use and Environment program:

UnDERSTAnDInG THE BASICS oF LAnD USE
AnD PLAnnInG: THE nUTS AnD BoLTS oF
PRojECT REVIEw
© 2010 by The Institute for Local Government
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208 • FAX (916) 444-7535 • www.ca-ilg.org
SKU: 1942 Price: $5 (for set of 5)

ATTACHMENT A
Glossary of land use and planninG terms: acronyms and abbreviations Glossary of land use and planninG terms:

Acronyms and Abbreviations
A Agricultural
ADA Americans with Disabilities Act (1990)
ADT Average Daily Trips made by vehicles or
persons in a 24-hour period
ADU Accessory Dwelling Unit
af Acre foot
AIA American Institute of Architects
AICP American Institute of Certified Planners
ALUC Airport Land Use Commission
APA American Planning Association
AQMD Air Quality Management District.

ASCE American Society of Civil Engineers
BAT Best Available Technology
BID Business Improvement District
BLM Bureau of Land Management
BMP Best Management Practices
BMR Below-Market Rate dwelling unit
or interest rate
BRT Bus Rapid Transit
C Commercial zone/use of specified intensity
C Commercial
CAA Clean Air Act
CAD Computer Aided Design
CARB California Air Resources Board
CalEPA California Environmental Protection Agency
CBD Central Business District
CC&Rs Covenants, Conditions, and Restrictions
CDBG Community Development Block Grant
CEQA California Environmental Quality Act
CESA California Endangered Species Act
CFD Mello-Roos Community Facilities District
cfs Cubic Feet per Second
CHFA California Housing Finance Agency
CIP Capital Improvements Program
CMP Congestion Management Plan
CNEL Community Noise Equivalent Level
CPI Consumer Price Index
COG Council of Governments
CRA Community Redevelopment Agency
CSA Community Service District
CUP Conditional Use Permit
CWA Federal Clean Water Act
dB Decibel
DFG Department of Fish and Game
DOE Department of Energy (U.S.)
DOT Department of Transportation (U.S.)
DU Dwelling Unit
EIR Environmental Impact Report (California)
EIS Environmental Impact Statement (Federal)
EJ Environmental Justice
EPA Federal Environmental Protection Agency
ESA Federal Endangered Species Act
FAA Federal Aviation Administration
FAR Floor Area Ratio
FAUS Federal Aid to Urban Systems
FEMA Federal Emergency Management Agency
FHA Federal Housing Administration
FHLMC Federal Housing Loan Mortgage
Company/“Freddie Mac”
FHWA Federal Highway Administration
FIA Fiscal Impact Analysis
(also Federal Insurance Administration)
FIR Fiscal Impact Report
FIRE Finance, Insurance and Real Estate
FIRM Flood Insurance Rate Map
FmHA Farmers Home Administration
FMV Fair Market Value
FNMA Federal National Mortgage Association/
“Fannie Mae”
FPPC Fair Political Practices Commission (California)
FTA Federal Transit Administration
FWS U.S. Fish and Wildlife Service
GHG Greenhouse Gas
GIS Geographic Information Systems
GLA Gross Leasable Area
GMI Gross Monthly Income
GNMA Government National Mortgage
Association/“Ginnie Mae”
GPS Global Positioning System
HAP Housing Assistance Plan
HCD California Department of Housing and
Community Development
HCP Habitat Conservation Plan
HIA Health Impact Assessment
HOA Home Owners’ Association
HOV High-Occupancy Vehicle
HTF Housing Trust Fund
HUD U.S. Department of Housing and
Urban Development
I Industrial
ISTEA Intermodal Surface Transportation Efficiency Act JPA Joint Powers Authority
LAFCO Local Agency Formation Commission
LCP Local Coastal Plan/Program
Ldn Day-Night Average Sound Level
LEED Leadership in Energy and Environmental Design
LEED-ND LEED for Neighborhood Development
LHA Local Housing Authority
LOS Level of Service
LRT Light-duty Rail Transit
M-1,2 Manufacturing Zone
MEA Master Environmental Assessment
MEIR Master Environmental Impact Report
MF Multifamily
MGD Millions of Gallons per Day
MH Manufactured Housing
MOU Memorandum of Understanding
MPD Master Planned Community
MPO Metropolitan Planning Organization
MSCP Multi-Species Conservation Plan

ATTACHMENT A
Glossary of land use and planninG terms: acronyms and abbreviations

ABOUT THE INSTITUTE

FOR LOCAL GOVERNMENT
The Institute for Local Government is the nonprofit
research affiliate of the League of California Cities and the California State Association of Counties. Its mission is to promote good government at the local level.

The Institute’s current program areas include:

GLoSSARy of LAnd USE And PLAnnInG TERmS:

ACRonymS And AbbREvIATIonS
© 2010 by The Institute for Local Government
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208 • fAX (916) 444-7535 • www.ca-ilg.org
MXD Mixed Use Development
NAHB National Association of Home Builders
NAHRO National Association of Housing
& Redevelopment Officials
NCCP Natural Communities Conservation Plan
NEPA National Environmental Policy Act
NGO Nongovernmental Organization
NHPA National Historic Preservation Act
NMFS National Marine Fisheries Service
NOC Notice of Completion (CEQA)
NOD Notice of Determination (CEQA)
NOP Notice of Preparation (CEQA)
NPDES National Pollution Discharge Elimination System
NRCS National Resources Conservation Service
OPR Governor’s Office of Planning and Research
(California)
P&Z Planning and Zoning
PC Planning Commission
PCD Planned Commercial Development
PDR Purchase of Development Rights
PHA Public Housing Agency
PHT Peak Hour Traffic (or Peak Hour Trips)
PID Planned Industrial Development
PM Particulate Matter
PPB Parts Per Billion
PPM Parts per Million
PUD Planned Unit Development
QOL Quality of Life
R Residential
R-1,2 Residential Zone/use of specified intensity
RDA Redevelopment Agency
RFP Request for Proposal
RFQ Requests for Qualifications
RHNA Regional Housing Needs Assessment/Allocation
RLUIPA Religious Land Use and Institutionalized Persons Act ROW Right-of-Way
RPA Regional Planning Agency
RTPA Regional Transportation Planning Agency
SFD Single-Family Dwelling
SLAPP Strategic Lawsuits Against Public Participation SRO Single-Room Occupancy
STIP State Transportation Improvement Plan
TEA-21 Federal Transportation Equity Act for the 21stCentury TDM Transportation Demand Management
TDR Transfer of Development Rights
TMDL Total Maximum Daily Load
TOD Transit-Oriented Development
TOT Transient Occupancy T ax
TSM Transportation Systems Management
UBC Uniform Building Code
UGB Urban Growth Boundary
UHC Uniform Housing Code
UMTA Urban Mass Transportation Administration
USDA U.S. Department of Agriculture
USDI U.S. Department of the Interior
USFS U.S. Forest Service
USFWS U.S. Fish and Wildlife Service
USGS U.S. Geological Survey
VLF Vehicle License Fee
VMT Vehicle Miles Traveled
WQMP Water Quality Management Plan
ZLL Zero Lot Line
ZO Zoning Ordinance
Additional support provided by The California
Endowment through a grant to the Institute’s Healthy
neighborhoods Project.
for more information about land use, health and the
environment, visit www.ca-ilg.org/landuse.

ATTACHMENT A
1 www.ca-ilg.orgInstitute for Local Government About ILG’s Sustainable
Communities Program
The Institute’s Sustainable
Communities program helps local
officials and staff identify and
apply policies and best practices
that support sustainable com -
munities — places that foster and
maintain a high quality of life for
their residents on an ongoing basis .
www.ca-ilg.org/Sustainability
Sustainability Best Practices Framework
Sustainable Communities
Sustainability Best Practices Framework: Options to Consider The Institute for Local Government’s Sustainability Best Practices Framework offers options for local action in ten areas. They are drawn from practical experiences of cities and counties throughout California. The options vary in complexity and are adaptable to fit the unique needs and circumstances of individual communities.

Local officials and staff may use the framework in a variety of ways, including to:
• Generate ideas about programs and policies to pursue; • Inform a comprehensive climate action planning process; or • Integrate sustainability into general plan policies.

Many of the activities can lead to multiple benefits, including:
• Reduced greenhouse gas emissions;
• Energy, water, fuel and cost savings;
• Improved health; and
• Increased resilience to climate change impacts.

ATTACHMENT A
2 www.ca-ilg.orgInstitute for Local Government The activities can also help make communities more attractive places to live, work and conduct business. Learn more about the co-benefits of sustain- ability strategies at www.ca-ilg.org/SustainabilityCo-Benefits Updated Sustainability Best Practices Now Available
First released in 2008, the Sustainability Best Practices Framework has gone through several iterations, including the most recent 2013 update.

The new updates reflect activities local agencies, including cities and coun - ties, participating in the Beacon recognition program have undertaken, technological advancements, and policy changes at the state level. Like the original Best Practices Framework, these updates have been peer-reviewed and reflect input from local and state officials, technical experts and others. www.ca-ilg.org/SustainabilityBestPractices
More Information to Support Local Efforts
Visit the Institute’s website ( www.ca-ilg.org/SustainabilityBestPractices ) to read stories and watch videos ( www.ca-ilg.org/BeaconAwardVideos ) about local sustainability efforts from around California and to access resources to support efforts in the ten best practice areas.

Additionally, join the Institute’s Sustainable Communities Learning Network LinkedIn group ( www.ca-ilg.org/SCLNLinkedIn ), which enables local agency sustainability practitioners to connect, exchange information, discuss best practices, and seek feedback directly from their peers.

Feedback Welcome
The Sustainability Best Practices
Framework highlights the
ongoing good work at the local
level to save energy and reduce
greenhouse gas emissions. It
is an evolving resource. New
ideas are welcome, along with
any materials or background
information that may benefit
local agencies. Please email us at
[email protected] .

Sustainability Best Practices Framework
About the Institute for
Local Government
The Institute for Local
Government (ILG) is the nonprofit
research affiliate of the League of
California Cities and the California
State Association of Counties.

The Institute’s mission is to
promote good government at the
local level with practical, impar -
tial and easy-to-use resources
for California communities.
www.ca-ilg.org

ATTACHMENT A
3 www.ca-ilg.orgInstitute for Local Government About the Beacon Program
The Beacon program, sponsored by the Institute for Local Government and the Statewide Energy Efficiency Collaborative, recognizes and supports California cities and counties that are working to reduce greenhouse gas emissions, save energy and adopt policies and programs that promote sustainability. Learn about the Beacon program and participant accomplish - ments at www.ca-ilg.org/BeaconAward .

The program is funded by California utility customers and administered by Southern California Gas Company, San Diego Gas & Electric Company, Pacific Gas and Electric Company and Southern California Edison, under the auspices of the California Public Utilities Commission.

The Statewide Energy Efficiency Collaborative (SEEC) is an alliance to help cities and counties reduce greenhouse gas emissions and save energy. SEEC is a collaboration between three statewide non-profit organizations, includ - ing the Institute for Local Government, and California’s four investor-owned utilities. www.californiaseec.org
www.ca-ilg.org
Sustainability Best Practices Framework

ATTACHMENT A
4 www.ca-ilg.orgInstitute for Local Government Energy generation is the
second largest source
of greenhouse gas
emissions. Thus, strategies
to conserve energy and
use it more efficiently in
agency operations and the
community help reduce
greenhouse gas emissions.

In addition, energy efficiency
and conservation measures
save money and resources.

Updated January 2013
Energy Efficiency &
Conservation
Options to Consider
Agency
Audits and Assessment
Audit energy use of agency buildings to identify opportunities for energy savings through efficiency and conservation measures.

Use energy management software to monitor real-time energy use in agency buildings to identify energy usage patterns and abnormalities.

Conduct commissioning and retro-commissioning studies of agency buildings, including equipment such as heating, ventiliation and air conditioning (HVAC) and lighting systems to ensure they are operating as designed and installed.

Benchmark energy use of major agency buildings.

Internal Policies and Procedures
Establish an energy efficiency and conservation policy that provides employees with behavioral guidelines for energy efficient use of the facility such as turning lights, copiers and computers off, appropriate thermostat use, etc.

Establish energy efficiency and conservation protocols for building custodial and cleaning services and other contract employees.

Adopt and implement a policy to reduce “plug” load in agency facilities by removing personal equipment such as desk lamps and space heaters or installing smart power strips.

Implement a network cloud-computer system to reduce computer work station energy use.

Incorporate energy efficiency features in agency data centers, such as through implementation of an information technology energy efficiency program.

Adopt ENERGY STAR® purchasing standards for all new computer equipment, appliances and equipment.

Require new agency buildings to exceed Title 24, California’s energy efficiency building standard.

Implement off-peak scheduling of pumps, motors, and other energy intensive machinery where possible.

Implement a revolving loan fund or other mechanism to finance future energy investments in agency buildings and operations.

Work with energy provider to access technical assistance and financial incentives, such as facility audits, rebates, on-bill financing, loans, savings-by- design and demand management programs.

Require agency new construction to be net zero energy.

Sustainability Best Practices Framework
Continued on next page
For other energy-related best
practices: see Green Building and
Water and Waste Water Systems
areas.

ATTACHMENT A
5 www.ca-ilg.orgInstitute for Local Government Train agency building inspectors to understand and enforce Title 24, California’s energy efficiency building standard.

Develop and implement shading requirements for agency buildings and other facilities.

Require agency funded or supported affordable housing projects to incorporate energy efficiency features, equipment and appliances.

Prepare and implement an Energy Action Plan for agency facilities.

Participate in voluntary sustainability and climate change recognition program, The Beacon Award: Local Leadership toward Solving Climate Change to track and share agency energy savings accomplishments.
www.ca-ilg.org/BeaconAward
Retrofits and Upgrades
Develop and implement a schedule to address no cost/low cost energy retrofit projects.

Develop and implement a schedule to address capital intensive energy retrofits projects.

Reduce energy demand by capturing “day lighting” opportunities.

Install motion sensors, photocells, and multi-level switches to control room lighting systems.

Replace incandescent lights with more energy efficient lighting, such as compact fluorescents, overhead fluorescent lights or light-emitting diodes (LEDs).

Upgrade exit signs with light-emitting diode (LED) lighting.

Add vending misers to cold beverage machines.

Upgrade pumps, motors and other energy intensive machinery where feasible.

Replace agency appliances and equipment such as vending machines, refrigerators, and washing machines, with energy efficient models.

Replace agency natural gas fueled appliances and equipment, such as boilers, stoves, water heaters, with high efficiency units.

Replace and/or tint windows in agency-owned buildings to reduce heating by sunlight.

Install cool roof systems on existing and new agency buildings.

Install smart meters on agency buildings.

Outside Lighting
Use “de-lamping” techniques to reduce lighting levels at parks, sports fields and parking lots, where appropriate for the location and use, considering security and decorative lighting issues.

Change downtown holiday or decorative lighting to light-emitting diodes (LEDs) or other energy efficient lighting systems.

Replace incandescent traffic and crosswalk lights with energy-efficient lighting such as light-emitting diodes (LEDs).

Replace incandescent and mercury vapor street, parking lot, park and other outdoor lights with energy efficient alternatives, such as light-emitting diodes.

Continued on next page
Sustainability Best Practices Framework
Energy Efficiency & Conservation continued
Tip: Evaluate agency electric bills
to ensure each account is on the
optimal rate schedule.

ATTACHMENT A
6 www.ca-ilg.orgInstitute for Local Government Community
Working with Local Businesses
Encourage community businesses to conduct energy audits and implement energy efficiency retrofits through activities such as energy efficiency workshops, energy fairs, agency websites and social media.

Encourage businesses to install energy efficient exterior lighting that is appropriate for the location and use, considering security and decorative lighting issues.

Collaborate with local retail businesses to encourage businesses to purchase energy efficient products.

Promote and reward energy efficiency efforts of local retail businesses.

Adopt an energy financing program, such as through a PACE (Property Assessed Clean Energy) financing district, to help businesses install energy efficiency retrofits in existing residential and commercial buildings.

Require energy audits and/or retrofits for commercial properties at time of sale.

Require new commercial buildings to exceed Title 24, California’s energy efficiency standard, to the extent permitted by law.

Require new commercial construction to be net zero energy.

Working with Homeowners and Apartment Owners
Provide information about Energy Upgrade California™ to help homeowners increase energy efficiency.

Provide rebates or other financial incentives to help residents pay for whole house retrofits.

Sponsor a home energy makeover contest that includes energy efficient audit and improvements as prizes.

Adopt an energy financing program, such as through a PACE (Property Assessed Clean Energy) financing district, to help homeowners install energy efficiency retrofits in existing residential buildings.

Require energy audits and/or retrofits at time of sale for residential properties.

Require energy audits and/or retrofits at time of residential remodeling or renovation projects.

Require new residential buildings to exceed Title 24, California’s energy efficiency standard, to the extent permitted by law.

Require new residential construction to be net zero energy.

Working with Energy Providers
Work with energy provider to encourage local businesses to implement energy efficiency strategies and retrofits.

Work with energy provider to provide information to homeowners and businesses about available utility rebates for new residential and commercial buildings that exceed Title 24, California’s energy code, by 15 percent or more.

Continued on next page
Sustainability Best Practices Framework
Energy Efficiency & Conservation continued

ATTACHMENT A
7 www.ca-ilg.orgInstitute for Local Government Work with energy provider to promote use of utility financial incentives to assist residential and commercial customers improve energy efficiency, such as by using on-bill financing, loans and rebates and demand management programs, as appropriate for the customer.

Engaging the Community
Host/support compact fluorescent light bulb, LED give-away or incandescent bulb exchange programs.

Collaborate with schools and colleges to co-sponsor students to conduct energy audits and/or retrofits for agency buildings, businesses or homeowners.

Upgrade foreclosed homes in the community with energy efficiency measures and solar photovoltaic or hot water systems.

Prepare and monitor progress of implementing Energy Action Plan to reduce energy use in the community.

Sustainability Best Practices Framework
Energy Efficiency & Conservation continued
www.ca-ilg.org

ATTACHMENT A
8 www.ca-ilg.orgInstitute for Local Government Green buildings reduce
energy consumption, use
water more efficiently and
utilize materials with recycled
content, thus saving money
and natural resources and
related greenhouse gas
emissions. Local agencies
have taken a variety of
approaches to embrace
green building policies and
programs, consistent with
the unique characteristics of
their individual communities.

Note: The California Green
Building Standards Code, known as
CALGreen, went into effect in 2011
for residential and non-residential
new construction and major remod -
els. CALGreen is updated triennially
with the next update going into
effect January 2014. CALGreen
includes options for stronger locally
adopted standards. Several other
green building rating systems, such
as GreenPoint Rated and LEED® cer -
tification programs, provide options
to consider for exceeding California’s
Green Building Code. www.bsc.
ca.gov/Home/CALGreen.aspx
Updated January 2013
Green Building
Options to Consider
Agency
Adopt a policy that requires new agency buildings to exceed the minimum requirements of California’s Green Building Standards Code (also known as CalGreen). Options to exceed the standard include CALGreen’s built-in tiers and/or certification under Build It Green’s Green Point Rated system, LEED®, or alternative certification program.

Require agency buildings to exceed Title 24, Part 6, the State’s Building Standard Code which establishes energy efficiency requirements for residential and non-residential new construction and major remodels.

Incorporate materials that are renewable, reusable, recyclable, recycled, non- toxic and those that have zero or low volatile organic compounds (VOCs).

Explore using alternate materials such as packed gravel or permeable concrete instead of conventional concrete or asphalt to enhance replenishment of ground water.

Develop and implement sustainable landscaping standards for public agency facilities to reduce water consumption.

Incorporate water efficient plants, trees, green roofs and rain gardens in agency landscaping.

Use compost and mulch in agency landscaping as a water conservation measure.

Require agency landscaping and parks to incorporate smart irrigation technology systems that save water rand energy.

Require verification by a certified third-party rater to ensure compliance with green building standards for all newly built agency facilities.

Community
Establish a green building awareness program to educate and encourage homeowners and builders to use green building techniques.

Organize a sustainable building task force that includes representation from various fields within the building industry and other groups to evaluate feasibility of incorporating green building techniques that exceed the state standards into all new building and retrofit projects in the community.

Create a dedicated page on the agency’s website to help residents find green building information and resources.

Provide information to homeowners and businesses about available utility rebates for new residences and commercial buildings that exceed California’s Title 24 energy code by 15 percent.

Provide incentives, such as expedited review/permit processing, to encourage green building.

Provide technical and financial assistance and other significant incentives to development projects that meet or exceed specified standards under green building programs.

Sustainability Best Practices Framework
Continued on next page
For other green building-related
best practices: see Energy
Efficiency and Conservation area.

ATTACHMENT A
9 www.ca-ilg.orgInstitute for Local Government Train appropriate agency staff (such as planners, inspectors, and plan checkers) in green building standards and technologies to facilitate the permitting approval and inspection processes.

Adopt a policy that requires new homes, buildings or remodels to exceed the minimum requirements of California’s Green Building Standards Code (also known as CalGreen). Options to exceed the standard include CALGreen’s built-in tiers and/or certification under Build It Green’s Green Point Rated system, LEED®, or alternative certification program.

Adopt a “Solar Ready” ordinance, requiring all new residential buildings to be pre-wired and pre-plumbed for photovoltaic and solar hot water systems. (Required in the California Green Building Code January 1, 2014) Require new residential and commercial construction buildings to exceed Title 24 energy efficiency standards, to extent permitted by law.

Require new and renovated commercial construction to incorporate smart irrigation technology systems that save water and energy.

Require energy efficiency performance audits for specific types of residential and commercial remodeling projects.

Require buildings, facilities or affordable housing developments using agency funds or other agency support to exceed minimum state green building or energy standards.

Offer fee reductions, waivers, loans or grants to developers and contractors who commit to verifiable green building practices that exceed state or local minimum standards.

Offer technical expertise and assistance for community members, builders and businesses undertaking green building projects.

Work with neighboring jurisdictions, where feasible, to adopt a regional green building standard that exceeds the California Green Building Code Standard or Title 24 energy efficiency standards.

Enact a construction and demolition debris recycling ordinance that requires 50 percent or more diversion of project waste.

Sustainability Best Practices Framework
Green Building continued
www.ca-ilg.org

ATTACHMENT A
10 www.ca-ilg.orgInstitute for Local Government Energy generated from
renewable sources produces
less greenhouse gas emissions
than energy generated from
conventional sources. Low
carbon fuels are those that are
formulated to produce fewer
greenhouse gas emissions.

Updated January 2013
Renewable Energy and Low
Carbon Fuels
Options to Consider
Agency
Solar Projects
Replace traditional pedestrian “walk” signals and safety lights with solar powered signals.

Install solar powered smart parking meters.

Adopt a “Solar Ready” policy requiring new agency buildings to be pre-wired and pre-plumbed for solar photovoltaic and solar hot water systems. (Required January 2014 as part of the California Green Building Code.) Purchase solar photovoltaic systems or enter into power purchase agreements (PPA) to meet all or part of the electrical energy requirements of buildings and facilities owned, leased or operated by the agency.

Methane Recovery Programs and Projects
For jurisdictions that own or operate landfills, recover and use the maximum feasible amount of methane gas from the landfill to produce electricity, fuel co-generation facilities, and/or produce compressed natural gas for use in alternative fuel vehicles.

For jurisdictions that host landfills owned by private companies or other public agencies, enter into partnerships or agreements with agencies or companies that own or operate landfills to ensure that the maximum feasible amount of methane is recovered for waste-to-energy or other renewable energy projects.

Install digesters and other technologies at wastewater treatment facilities to capture methane and other bio-fuels.

Install fuel cells to generate power for wastewater treatment plants.

Fuel Efficient and Alternative Fuel Vehicles
Establish and implement a policy to convert agency fleets, including agency owned, leased or operated vehicles, to alternative or fuel efficient vehicles.

Establish and implement a policy to purchase new alternative or fuel efficient vehicles for agency operated transit systems.

Use regional purchasing options or the California Department of General Services bulk purchasing program to buy green fleet vehicles from local auto dealers.

Train agency fleet mechanics to service alternative and fuel efficient vehicles.

Implement bike sharing program for agency employees traveling between agency facilities.

Install bicycle racks, showers, and other amenities at agency facilities to promote bicycle use by agency employees and visitors.

Sustainability Best Practices Framework
Continued on next page
For other renewable energy
and low carbon fuels-related
best practices:
see Efficient
Transportation and Waste Reduction
and Recycling areas.

ATTACHMENT A
11 www.ca-ilg.orgInstitute for Local Government Community
Solar and Small Wind Projects
Develop a map that residents can access online that identifies where solar projects are located in the community.

Conduct renewable energy workshops for residential, commercial and industrial property owners.

Offer workshops and information for residents and businesses to provide resources and permitting assistance for those interested in adding renewable energy systems to their properties.

Provide information about the California Solar Initiative rebate and other renewable energy incentive programs on agency website.

Work with solar photovoltaic system providers to establish a discounted bulk purchasing program for residents and businesses that wish to purchase and install solar photovoltaic systems on their buildings.

Offer financial incentives to those who install solar photovoltaic or hot water systems on homes or businesses.

Adopt a renewable energy financing program, such as through a PACE (Property Assessed Clean Energy) financing district, to help homeowners, multi-family dwellings and businesses install solar photovoltaic and hot water systems on existing residential and commercial buildings.

Adopt policy or program that offers incentives, such as streamlined permitting system or fee waivers, to encourage installation of photovoltaic systems on new or existing residential and commercial buildings.

Adopt a “Solar Ready” ordinance requiring new residential or commercial construction to be pre-wired and pre-plumbed for solar photovoltaic and solar hot water systems. (Required January 2014 as part of the California Green Building Standards Code.)
Adopt an ordinance for small wind energy systems for residential and commercial installations.

Adopt a solar photovoltaic system siting ordinance for systems proposed on agricultural and open space lands.

Fuel Efficient and Alternative Fuel Vehicles
Work with electric utility to develop and implement electric vehicle charging infrastructure plan for the community.

Develop permitting standards for installation of electric vehicle charging stations at residential and commercial buildings.

Streamline the permitting process for installing home or business electric vehicle charging stations.

Install electric vehicle charging stations at public facilities, such as at parking lots and airports, for community use.

Continued on next page
Sustainability Best Practices Framework
Renewable Energy & Low-Carbon Fuels continued

ATTACHMENT A
12 www.ca-ilg.orgInstitute for Local Government Allow the public to use agency facilities that support use of alternate fuel vehicles, such as compressed natural gas fueling facilities and electric vehicle charging stations.

Require new commercial developments to include electric vehicle charging stations in parking lots or garages.

Sustainability Best Practices Framework
Renewable Energy & Low-Carbon Fuels continued
www.ca-ilg.org

ATTACHMENT A
13 www.ca-ilg.orgInstitute for Local Government Water and wastewater systems
play an important role in
sustainability for several
reasons. First, energy is used to
convey, pump, distribute, treat
and heat water, so saving water
saves energy. Second, experts
agree that the effects of climate
change will further reduce the
availability of water. Therefore,
efforts to conserve water will
play an important role saving
energy, reducing greenhouse
gas emissions and securing
water resources for the future.

Updated June 2013
Water and Wastewater
Systems
Options to Consider
Agency
Ensure Water Efficiency in Agency Buildings and Operations Audit agency’s water and wastewater pumps and motors to identify most and least efficient equipment.

Work with agency or company that provides water and wastewater service to implement a cycling and equipment replacement program for least efficient water and wastewater pumps and motors.

Initiate a water loss program or “leak-audit” of agency water infrastructure.

Upgrade and retrofit agency plumbing systems and appliances with water efficient technology and fixtures.

Retrofit existing agency buildings and facilities to meet standards for the LEED® Standards Rating Systems for Existing Buildings (EB), Build It Green, Commercial Interiors (CI), or other equivalent standards.

Incorporate water-efficient systems in new agency buildings that include opportunities for recycled water.

Require dual plumbing for use of recycled water for new facilities.

Reduce Water Use in Parks and Landscaping
Implement all feasible water efficiency strategies included in the Ahwahnee Water Principles for Resource Efficient Land Use in agency parks, landscaping and other new developments. (www.lgc.org/ahwahnee/h2o_principles ) Install smart water meters to track water usage and the effectiveness of water efficiency activities and programs.

Assess, maintain and repair existing irrigation systems to minimize water use, including parking lot landscaping, public rest rooms and parks, golf courses and other recreational facilities.

Install weather-based smart irrigation systems in agency parks and landscaping areas.

Adopt a water recycling master plan that connects parks into a recycled water system.

Use recycled water for agency facilities and operations, including parks and medians, where appropriate.

Convert all water distributing vehicles, such as street sweepers and tree- watering tankers, to use reclaimed water, where feasible.

Reduce turf and grass in agency landscaped areas. Use native turf and grass, when applicable.

Implement drought tolerant and hydro-design principles to group compatible plants based upon water needs for agency parks and landscaping.

Use compost, biosolids and mulch in agency landscaping as a water conservation measure.

Sustainability Best Practices Framework
Continued on next page
For other water and wastewater-
related best practices: see Green
Building, Energy Efficiency and
Conservation, and Land Use and
Community Design areas.

ATTACHMENT A
14 www.ca-ilg.orgInstitute for Local Government Create Safe and Efficient Water and Wastewater Systems
Use non-toxic fertilizers in agency parks and landscaped areas to reduce contaminates in run-off.

Create a Fats, Oils and Grease (FOG) Control Program to reduce blockages in the wastewater system.

Reduce energy use by auditing agency’s water and wastewater pumps and motors to identify most and least energy efficient equipment.

Work with agency or company that provides wastewater service to implement an audit, cycling and equipment replacement program to increase energy efficiency for water and wastewater pumps and motors.

Work with local wastewater service provider to determine whether biosolids can be recycled by using them on local landscaping, golf courses, community parks and other programs to improve soil quality and reduce irrigation needs.

Promote methane capture and enhanced production through co-digestion of other organic waste streams for use as renewable energy at wastewater treatment plants.

Address Future Water Security
Construct a new groundwater recharge facility that can hold additional surface water secured in wet years to eliminate possible groundwater overuse in the region.

Create an urban runoff recycling facility.

Community
Promote Water Conservation
Adopt water efficiency principles similar to the Ahwahnee Water Principles for Resource Efficient Land Use for new and existing residential and commercial developments. (www.lgc.org/ahwahnee/h2o_principles )
Adopt a retrofit program to encourage or require installation of water conservation measures in existing businesses and homes that exceed state standards.

Require water efficiency audits at point of sale for commercial and residential properties.

Provide free faucet aerators, water-efficient shower heads and low flow hose nozzles to residents at community or other events.

Pass a water-efficient landscaping ordinance stronger than state standards, where feasible.

Develop a training program to educate local landscapers and agency personnel on practices that reduce the use of water and toxic pesticides.

Create a water efficient demonstration garden that includes native and drought tolerant plants and requires low volume mulch, irrigation and other water saving features.

Implement a lawn buy-back program for residents who convert sod or grass to drought-tolerant landscaping.

Sustainability Best Practices Framework
Water & Wastewater Systems continued
Tip: For more information, visit
ILG’s Water Conservation Leadership
Guide: Issues for Local Officials
to Consider at www.ca-ilg.org/
WaterConservationLeadership .

Continued on next page

ATTACHMENT A
15 www.ca-ilg.orgInstitute for Local Government Promote Water Recycling and Greywater Use
Incentivize and promote the installation of residential greywater systems that meet appropriate regulatory standards.

Develop a local ordinance to require all new homes to have a greywater system.

Require dual plumbing for use of recycled water for new commercial and/or residential developments.

Provide educational resources to encourage residents to harvest rainwater.

Educate about Water Pollution Prevention
Install informational kiosks at agency parks to educate residents about stormwater pollution.

Engage the public in riverbank planting events, storm drain marking or stream-cleanup programs.

Promote bio-retention basins for stormwater collection and treatment prior to discharge.

Promote local solutions for stormwater management, such as rain gardens, green roofs and detention ponds.

Develop an educational community program or campaign that engages residents as watershed stewards.

Sustainability Best Practices Framework
Water & Wastewater Systems continued
www.ca-ilg.org
Tip: Greywater is wastewater
generated from domestic activities
such as laundry, dishwashing and
bathing, which can be recycled
in-site for uses such as landscape and
irrigation.

Note: For additional stormwater
management practices, visit www.
epa.gov/stormwater/best_practices.
htm.

ATTACHMENT A
16 www.ca-ilg.orgInstitute for Local Government The largest sources of human-
generated methane, a potent
greenhouse gas, comes from
improperly managed landfills.

Thus, waste reduction and
recycling activities reduce
the potential to generate
methane at landfills, as
well as reduces pollutants
generated from transporting
waste to disposal sites. Waste
reduction and recycling also
conserve natural resources.

Updated April 2013
Waste Reduction and
Recycling
Options to Consider
Agency
Reduce
Implement a comprehensive waste reduction and recycling program in agency offices and facilities.

Create and facilitate an agency employee education program highlighting waste reduction and recycling best practices.

Adopt a policy to encourage paper reduction through activities such as:
- Promoting a “think before you print” campaign.
- Reducing margins and logos on agency templates, letterhead and memos.
- Using computer software that removes blank pages and images from documents.
- Using “eCopy” copy machines that allow users to scan paper documents and distribute electronic copies via e–mail.
- Uploading bid documents using online resources instead of printing hard copies for contractors.
- Requiring fewer or smaller-sized copies of project plans or submittals. - Establishing a policy to use electronic devices (tablets, computers and projectors) for agendas and notes at meetings, such as for board of supervisor, city council or planning commission meetings.

Reuse
Reuse unwanted printed material for other purposes, such as for scratch paper or shred for use at the local animal shelter.

Reuse or redistribute to community non-profit groups office items such as supplies, computer, furniture and cell phones in order to divert items from the landfill.

Host a community garage sale or swap meet for the community to sell or redistribute unwanted items.

Incorporate reuse programs at publically owned landfills and transfer stations for diverting materials to non-profits.

Provide and encourage the use of reusable dishes and drinkware at agency facilities.

Recycle
Adopt a “Buy Recycled” policy for agency departments.

Recycle or refill ink/toner cartridges, as appropriate.

Sustainability Best Practices Framework
Continued on next page

ATTACHMENT A
17 www.ca-ilg.orgInstitute for Local Government Provide bins for collection of used batteries and compact florescent lights for proper disposal or recycling.

Implement a partnership with other public agency offices located within the jurisdiction for green procurement, waste reduction and recycling at those facilities.

Require all agency demolition projects to incorporate de-construction/ construction and demolition waste recycling or recovery practices.

Adopt agency or community waste diversion and recycling goals that are higher than existing state law.

Evaluate current community recycling infrastructure relative to future population growth and waste generation.

Include provisions and incentives for new recycling infrastructure and facilities to accommodate growth in land use planning and zoning.

Work with solid waste and recycling collection providers to calculate the carbon footprint of collection system.

Work with solid waste and recycling collection providers to reduce collection system carbon footprint.

Organics
Evaluate agency facilities and operations to identify opportunities to increase material recovery and beneficial use of organic material.

Evaluate opportunities to convert agency organic waste into biofuels to use in agency vehicles.

Distribute or post materials illustrating best practices for organics collection and composting.

Establish a program to use the maximum amount of organic waste possible that is generated within the jurisdiction to produce compost for use on agency parks and landscaping.

Create a vermicomposting (worm-bin) program with a complementary educational component at agency facilities, such as county detention centers and city jails.

Approve siting of composting facility within jurisdiction.

Distribute an annual newsletter highlighting agency and community waste reduction programs and accomplishments.

Businesses
Coordinate with the California Department of Resources, Recycling, and Recovery (CalRecycle) on the latest information, resources and programs to assist local businesses. www.calrecycle.ca.gov
Adopt a program or ordinance to encourage or require waste audits and waste reduction plans for existing and/or new commercial developments.

In partnership with the waste hauler(s) serving the commercial sector, institute a comprehensive waste reduction and recycling program with financial and other incentives, such as a tiered rate system that charges less for collecting recyclable materials than for collecting solid waste, to promote waste reduction and recycling for commercial/industrial waste generators.

Continued on next page
Sustainability Best Practices Framework
Waste Reduction & Recycling continued

Note - California law now requires:
• All businesses that generate 4 or
more cubic yards of waste weekly
to recycle.
• Apartment communities/multi-
family housing with 5 or more
units to recycle.
• Apartment owners to offer
recycling services to residents.
• Cities and counties to educate
businesses about new
recycling requirements.

ATTACHMENT A
18 www.ca-ilg.orgInstitute for Local Government Adopt a program or ordinance that exceeds state minimum standards by requiring businesses generating less than 4 cubic yards of waste a week to recycle.

Work with local material collectors and economic development experts to recruit or retain regional recycling manufacturers.

Adopt an ordinance to restrict the use of expanded-polystyrene containers at fast food restaurants and other establishments.

Adopt a program or ordinance to restrict the availability of single-use bags at retail stores.

Implement a green business program that rewards local businesses for sustainability measures.

Implement a food scrap collection program for large food waste generators.

Encourage local restaurants to use compostable foodware, where appropriate.

Encourage local restaurants to create opportunities and signage that promotes food waste and recyclable collections.

Require food waste and recycling at farmers markets and other community events.

Require recycling at special events, such as through special event permit conditions.

Residential
Include information about recycling opportunities on agency’s website.

Provide information to residents about how to stop receiving unwanted catalogues, phone books and weekly circulars.

Work with landlords to include recycling requirement information in lease agreements and/or move in packets.

Adopt a program or ordinance that exceeds state standards by requiring recycling at multi-family housing with four or fewer units.

Offer a food waste recycling program to residential customers.

Educate residents about the importance of not contaminating recyclable wastestreams.

Work with solid waste service providers to adopt enforcement mechanisms for residents and businesses that misuse or contaminate green waste and recycling containers.

Offer composting and sustainable landscaping classes to the community.

Implement a vermiculture (worm bin) composting program where residents can “check out” or borrow composting bins and equipment from the agency to start their own composting efforts at home.

Educate the community about “buy recycled” opportunities.

Sustainability Best Practices Framework
Waste Reduction & Recycling continued
Continued on next page

ATTACHMENT A
19 www.ca-ilg.orgInstitute for Local Government Schools
Create a partnership with local schools to help encourage waste reduction and recycling.

Collaborate with schools or nonprofit agencies to help develop and distribute educational materials related to recycling and waste reduction for use in classrooms.

Encourage schools and other public agencies to use rubberized asphalt pavement for parking lots, where feasible.

Encourage schools to use tire-derived products for a variety of uses, including sport facilities.

Electronic-Waste and Hazardous Materials
Create and distribute information about e-waste and hazardous waste disposal.

Increase opportunities for e-waste and hazardous materials collection and recycling.

Distribute information and create opportunities for used motor oil recycling.

Promote proper recycling and disposal options for compact fluorescent light bulbs and batteries.

Offer disposal options for home-generated “sharps” (needles) and prescription drugs to prevent injuries and contamination of water and wastewater.

Construction Materials and Debris
Adopt a program or ordinance to reduce, reuse and recycle community construction and demolition waste.

Adopt a “deconstruction” program or ordinance to salvage and reuse materials in all community remodeling projects.

Establish a program or ordinance that results in 100 percent recycling of all Portland cement and asphalt concrete.

Adopt a policy to require use of rubberized asphalt concrete for streets and roads.

Adopt a policy to use recycled asphalt pavement for streets and roads.

Adopt a policy to use recycled asphalt pavement for commercial and community parking lots, where feasible.

Use recycled tire rubber for playground resurfacing and other projects, where appropriate.

Partner with local businesses to create materials reuse opportunities.

Sustainability Best Practices Framework
Waste Reduction and Recycling continued
www.ca-ilg.org
For other recycling-related best
practices : see Green Building and
Climate-Friendly Purchasing areas.

Additional Resources:
• ILG’s Commercial Recycling
Resource Center: www.ca-ilg.
org/commercialrecycling .
• Carbon Footprint Calculator for
businesses: www.coolcalifor -
nia.org/business-calculator .
• Commercial Recycling Climate
Calculator: www.calrecycle.
ca.gov/climate/calculator .

ATTACHMENT A
20 www.ca-ilg.orgInstitute for Local Government Local agencies are large
consumers of goods and
services. As such, their
purchasing practices can have
a significant impact on the
environment. By purchasing
products or procuring services
that reduce greenhouse
gas emissions relative to
competing goods and services,
local agencies can remain
fiscally responsible while
promoting practices that
conserve natural resources.

For other climate-friendly
purchasing-related best
practices:
see Waste Reduction and
Recycling and Green Building areas.

Updated May 2013
Climate-Friendly Purchasing
Options to Consider
Agency
Review current purchasing practices to identify possible green procurement opportunities.

Adopt and implement a procurement policy that establishes standards for purchasing climate-friendly products and services. Examples may include:

Office and cleaning supplies and equipment that minimize environmental impacts and that do not have a negative effect on human health, such as:
- Paper products that contain a minimum percentage of post-consumer recycled content.
- Cleaning products and services recognized with the GreenSeal or EcoLogo. - New equipment that meets Energy Star or comparable energy efficiency standards.
- Computers that meet the highest feasible Electronic Product Environmental Assessment Tool (EPEAT) certification level.
- Computer and lighting controls that reduce energy and computer idle time. - Rechargable batteries, where appropriate.
- Recyclable or reusable cups, plates and utensils.

Green Building materials that create a healthier and more sustainable environment, such as:
- Building and landscaping materials and systems that exceed the CALGreen building code.
- Carpeting, furnishings or plastic items that contain a minimum percentage of recycled content
- Paint or carpets that contain low or no volatile organic compounds (VOC).

Fleets that reduce environmental impact, such as:
- Fuel efficient, dual fuel or alternative fuel fleet vehicles. - Vehicles that have GPS or trip planning devices.

Conduct employee awareness training on the purchasing and use of green products and services.

Establish an interdepartmental team to promote policy implementation, track policy adherence and suggest additional items to be included in the policy.

Report achievements of green procurement program to staff and policy makers annually.

Consider participating in multi-agency procurement pools that have a climate- friendly purchasing component.

Consider life cycle pricing to ensure that the maintenance, operating, insurance, disposal and replacement cost of the product or service is considered when evaluating purchase options.

Sustainability Best Practices Framework
Continued on next page
Tip: See ILG’s Sample Climate-
Friendly Purchasing Policy at www.
ca-ilg.org/samplepurchasingpolicy
and ILG’s Greening Agency Fleets
Resource Center at www.ca-ilg.org/
GreeningAgencyfleets .

ATTACHMENT A
21 www.ca-ilg.orgInstitute for Local Government Consider efficient transportation methods when purchasing goods and services, such as using local vendors and or locally produced goods to reduce greenhouse gas emissions.

Consider encouraging the practice of not purchasing new materials, such as office supplies and furniture, through the reuse of existing items in surplus when appropriate and feasible.

Ensure that minimal packaging materials are used by the agency and that all packaging materials are recycled, non-toxic and/or reusable, where feasible.

Contracting
Require consultants, contractors and grantees to use recycled products and supplies, when feasible.

Require service providers to follow climate-friendly practices, or include a preference in selecting and contracting with service providers to those that use climate-friendly practices.

Require parks maintenance staff or contractors to adopt water or Bay-Friendly practices, if applicable.

Require agency-issued bids specifications to exceed state law requirements for recycled content.

When feasible, consider the greenhouse gas emission impacts associated with transportation distances when determining which business or service providers to award contract.

Provide incentives for the use of fuel-efficient, dual-fuel or alternative fuel vehicles for agency contracts for services involving vehicles, such as buses, waste hauling and recycling, and construction.

When issuing proposals for services, request firms to show current green certifications that demonstrate their technical knowledge and commitment to sustainability.

Community
Educate the public about climate-friendly procurement opportunities through the agency’s website, traditional marketing and social media.

Work with the business community to educate them about climate- friendly procurement opportunities through social media and traditional marketing.

Educate the public about climate-friendly procurement actions being implemented by a local agency.

Sustainability Best Practices Framework
Climate-Friendly Purchasing continued
www.ca-ilg.org

ATTACHMENT A
22 www.ca-ilg.orgInstitute for Local Government Transportation is the largest
generator of greenhouse gas
emissions in California. Efficient
transportation systems,
encouraging alternatives to
single occupancy vehicles, and
reducing the miles that vehicles
travel can reduce greenhouse
gas emissions, help conserve
fuel and cut fuel costs, improve
air quality, reduce traffic
congestion and make streets
safer for pedestrians, bicyclists,
transit users and motorists.

For other efficient transporta -
tion-related best practices: see
Land Use and Community Design
area.

Updated May 2013
Efficient Transportation
Options to Consider
Agency
Planning
Assess the long-term mobility (the ability for people to get around) needs of the community, including the efficient movement of people and goods.

Update transportation models to reflect all types (or modes) of transportation, such as walking, bicycling, private vehicles, commercial vehicles, buses, trains and other forms of transit.

Include transportation mitigation measures for new development which enhance all modes of travel rather than only focusing on automobile delay or speeds.

Develop short and long-range community transportation goals, objectives and policy statements and include all appropriate goals, objectives and policies in the circulation element of the agency’s general plan.

Develop and include a realistic long-range transportation and land use scenario (or diagram) for local and regional growth in the circulation element of the agency’s general plan and other local land use plans (such as specific plans and project development plans), consistent with a regional Sustainable Communities Strategy, if appropriate.

Collaborate with other agencies (such as cities, counties and metropolitan planning organizations) to share transportation-related information, coordinate planning goals and processes, and take advantage of opportunities to combine and leverage resources.

Make reducing vehicle-miles traveled (VMT) a high-priority criteria in evaluation of policy, program, and project proposals and alternatives.

Adopt a policy requiring limitations on idling for commercial vehicles, construction vehicles, buses and other similar vehicles, beyond the requirements of state law, where feasible.

Implement programs to reduce “incident-based” traffic congestion, such as expedited clearing of accidents from major traffic arteries, airport traffic mitigation, etc.

Develop a financial plan that covers life-cycle costs related to the development, maintenance and operation of current and future transportation facilities and services (such as transit service).

Identify funding sources for implementing transportation plans.

Implement transportation planning strategies that consider demand management solutions for transit, bicycle and walking growth equally with strategies to increase automobile capacity.

Infrastructure
Implement Intelligent Transportation Systems (ITS) for surveillance and traffic control, such as synchronized signals, transit and emergency signal priority, and other traffic flow management techniques as appropriate, to improve traffic flow and reduce vehicle idling.

Sustainability Best Practices Framework
Continued on next page
Note: Metropolitan Planning
Organizations and Regional
Transportation Planning Agencies
can provide guidance on inter-
agency collaboration and technical
support for the adaptation and use
of transportation models.

ATTACHMENT A
23 www.ca-ilg.orgInstitute for Local Government Install signal priority technology in agency transit systems (such as buses) to reduce number of stops and idling.

Ensure that traffic lights have sensors to detect bicycles.

Install roundabouts in lieu of signalized intersections as a way to improve traffic flow, reduce accidents and reduce greenhouse gases.

Improve intersection safety through pedestrian countdown signals and high visibility crosswalks.

Identify opportunities for infrastructure improvements such as High Occupancy Vehicle (HOV), High Occupancy Toll (HOT) lanes and dedicated bus rapid transit right-of-ways and coordinate with regional and state agencies when appropriate.

Encourage and/or construct infrastructure for electric vehicle charging and natural gas vehicle fueling for agency vehicles and the community.

Develop a non-motorized connectivity plan (complete streets) to create a path and roadway network and make sure that bicycle paths and pedestrian walkways connect to neighborhood destinations, schools, parks, light rail stations and essential services.

Include bicycle, pedestrian and transit facilities in public works projects, where appropriate, as a component of a local complete streets program.

Prepare a bicycle master plan to guide bikeway policies and development standards to make bicycling safer, more convenient and enjoyable for all bicyclists.

Prepare a pedestrian master plan to guide walkway policies and development standards to make walking safer, more convenient and enjoyable for all pedestrians.

Increase the number of bicycle lanes, lockers, racks, paths and signage throughout the community.

Reduce parking requirements for projects that link or emphasize alternative types of travel.

Use microwave technology, video detection and street embedded sensors to protect cyclists from buses, cars and motorcycles.

Use alternative or recycled materials for road paving (such as cold central plant recycling or cold in-place recycling) to reduce energy and greenhouse gas emissions from transport and material production/processing.

Agency Fleet
Adopt a policy that sets fleet efficiency standards for new agency vehicles.

Purchase or lease fuel efficient or alternative fuel vehicles, including zero or near-zero emission vehicles, to save fuel and money and reduce greenhouse gas emissions.

Install low-draw emergency lighting in agency vehicles, allowing lights to be used without the engine running.

Consider purchasing bicycles for local travel by agency employees.

Install battery systems for vehicles with onboard equipment (such as boom tucks) to decrease truck idling while equipment is used.

Sustainability Best Practices Framework
Efficient Transportation continued
Continued on next page
For more options: see Renewable
and Low-Carbon Fuels area.

ATTACHMENT A
24 www.ca-ilg.orgInstitute for Local Government Provide fuel saving tips to drivers of fleet vehicles.

Use Global Positioning Systems (GPS) and integrated software to control fleet vehicles, reduce misuse and increase efficiency through trip planning and location information.

Replace buses with smaller, more fuel efficient, buses for light-traveled transit routes.

Evaluate natural gas fueling infrastructure and sharing of facilities with other public agencies to help pay for installation and ongoing costs.

Establish a crew-based maintenance plan (such as with parks employees) instead of individual assignments, to create a “carpool effect” that lowers the annual miles traveled for maintenance staff.

Utilize technology options (such as digital service requests accessible by mobile devices) for field personnel to avoid extra trips back to the office.

Agency Employee Programs
Offer agency employees with incentives to use alternatives to single- occupant auto commuting, such as parking cash-out, flexible schedules, transit incentives, bicycle facilities, bicycle sharing programs, ridesharing services and subsidies, locker/shower facilities and telecommuting.

Develop a real-time ridesharing program that utilizes smart phone technology.

Incorporate a guaranteed ride home program as part of agency commuter trip reduction incentive programs.

Provide parking spaces dedicated to employees who use alternative transportation (such as walking, bicycling, bus, etc.) for the rare occasions they need to drive to work.

Implement a flexible work schedule for agency employees, incorporating telecommuting and modified schedules.

Establish a “bike barn” to enable agency employees to borrow a bicycle to use for local meetings.

Construct bicycle stations for employees that include bicycle storage, showers and bicycle repair space.

Offer employees incentives to purchase fuel efficient or alternative fuel vehicles.

Community
Increase online permitting services to reduce the need to travel to agency offices for minor permits.

Consolidate offices that community members often visit at the same time (such as building permitting and environmental health permitting) to reduce vehicle miles traveled.

Encourage and facilitate the development of car-sharing, Dial-a-Ride (or a similar flexible-route transit service), bicycle sharing programs and other services that reduce the need to use a personal motor vehicle.

Implement variable demand pricing for on- and off-street parking facilities in order to discourage single-occupant-vehicle and peak travel, increase parking supply, business access and parking turnover.

Sustainability Best Practices Framework
Efficient Transportation continued
Continued on next page
For additional resources related
to Fuel Efficient and Alternative
Fuel Vehicles:
see ILG’s Greening
Agency Fleets Resource Center at
www.ca-ilg.org/greeningagency -
fleets.

ATTACHMENT A
25 www.ca-ilg.orgInstitute for Local Government Work with major employers in the community to offer incentives and services to increase the use of alternatives to single-occupant auto commuting (also called voluntary commute trip reduction programs).

Develop and implement voluntary agreements to encourage commuter trip reduction programs for new commercial developments.

Offer car and bicycle-sharing programs in the community.

Encourage or require parking preferences for those who rideshare or use alternative fuel vehicles in public and private parking lots, garages, and on-street spaces.

Adjust bus schedules to maximize ridership opportunities for residents.

Provide real-time bus arrival and departure information to riders at transit stops and through the web-based services and text messaging.

Dedicate revenues from fees and tolls to promote alternative transportation modes, to the extent permitted by law.

Consider the public health co-benefits in promoting use of transit and other alternatives to single-occupant vehicle travel.

Offer presentations to community groups highlighting the economic, health and environmental benefits of bicycling and walking.

Partner with health organizations to offer incentive programs to encourage bicycling and walking.

Partner with schools and other agencies to identify and implement safer travel opportunities for bicycles and walking between home and school (such as through Safe Routes to School Programs).

Create and distribute bike maps and “safe routes to school” maps to community members through collaborating with local businesses, service organizations and schools.

Include information on agency website about state and federal clean vehicle rebates.

Sustainability Best Practices Framework
Efficient Transportation continued
www.ca-ilg.org
Note - Additional resources available
from ILG:
• SB 375 Resource Center: www.
ca-ilg.org/sb-375-resource-
center.
• Greening Agency Fleets Resource
Center: www.ca-ilg.org/greenin -
gagencyfleets .
• Safe Routes to Schools Toolkit:
www.ca-ilg.org/srts-toolkit .

ATTACHMENT A
26 www.ca-ilg.orgInstitute for Local Government Well-planned communities
with a balance of housing,
jobs, shopping, schools and
recreation can reduce the
length and frequency of trips
and give people the option
of walking, biking, or using
transit rather than driving. This
results in lower greenhouse
gas emissions and also
promotes physical activity
and more vibrant, healthy and
sustainable communities.

For other land use and
community design-related best
practices:
see Green Building,
Renewable Energy and Efficient
Transportation areas.

Updated June 2013
Land Use and Community
Design
Options to Consider
Agency
Encourage Compact, Efficient and Contiguous Development Develop general plan policies that integrate diverse land uses – including housing, employment and community services – at appropriate densities to help reduce automobile travel and promote walking, bicycling and other opportunities for physical activities.

Work with school districts to develop school siting policies that encourage infill locations to take advantage of existing complementary uses, existing housing, and walking and bicycling opportunities, and avoid greenfield locations outside established urban areas.

As part of general plan housing element updates, inventory potential infill development sites, and maintain a community-wide database of vacant and underutilized infill sites to monitor the community’s growth and change.

Plan, zone and provide incentives for new development and renovation of existing uses in identified infill areas.

Streamline the entitlement process for development of high quality residential construction in older and infill areas through updates to the housing element of the general plan or the zoning code, including taking full advantage of opportunities to streamline the California Environmental Quality Act (CEQA) review for infill development.

Implement methods (such as urban service boundaries and priority infrastructure investment areas) to limit non-contiguous development patterns and foster more compact urban form.

Consider increasing development density in areas that are well-served by transit, including incentives and streamlining for transit-oriented development.

Develop policies and incentives (such as minimum conservation requirements, development boundaries, density limitations and support for the Williamson Act) to promote the preservation of farmland, open space and sensitive lands.

Establish a policy that increases the available open space (such as parks, green belts, hiking trails, etc.) to support different types of uses and the different recreational needs of the community.

Support Alternative Energy and Waste Processing Land Use Options Identify appropriate sites for potential solar or wind generation facilities.

Identify appropriate sites and zoning designations for recycling processing facilities and manufacturing that uses recycled materials.

Adopt policy or program that mandates or offers incentives (such as Property Assessed Clean Energy (PACE) financing, streamlined permitting or fee waivers) for installation of photovoltaic and/or solar hot water systems on new or existing residential and commercial buildings and energy efficiency retrofits on existing buildings.

Sustainability Best Practices Framework
Continued on next page

ATTACHMENT A
27 www.ca-ilg.orgInstitute for Local Government Land Use Policies Supporting Green Building
As a way to provide more predictability to the development community, include in the general plan and the zoning code policies and regulations that support and encourage green building practices and development patterns that promote sustainable communities through subjects, such as green building ordinances, solar orientation of structures and subdivisions, bicycle and pedestrian access, in-fill development and alternative energy use.

Require new housing and mixed use developments to be built to the LEED® for Neighborhood Development (LEED-ND) standard, Build It Green or equivalent standards.

Require bicycle racks, showers and/or other amenities as part of new commercial development projects to promote bicycle use by new employees/ residents.

Provide expedited application processing for development projects that meet or exceed sustainable land use policies.

Planning for a Variety of Transportation Choices
Bicycle and Pedestrian Opportunities
Assess and report to local governing body and the public on pedestrian and bicycle conditions in existing communities and neighborhoods.

Develop and adopt a community-wide pedestrian and bicycle plan and capital investment program that maximizes the potential for residents to walk or bicycle within and between neighborhoods.

Provide bicycle access to transit services on major transit corridors and other routes that may attract bicyclists, such as routes serving schools and colleges.

Incorporate new overpasses and underpasses with bike lanes and pedestrian sidewalks to improve air quality by reducing GHG emissions from vehicle idling while waiting for pedestrians and bicycles crossing.

Increase opportunities for walking and bicycling by requiring direct pedestrian and bike paths even when roadways do not connect through new and existing developments.

Implement zoning for mixed-use development to encourage walking or biking for short trips rather than using vehicles.

Require sidewalks in all new developments and incorporate new trees and tree wells in sidewalk areas.

Transit Opportunities
Update the general plan to address multi-modal transit, mass transit, infill development, density and mixed-use and reducing greenhouse gas emissions.

Provide incentives and remove potential barriers to the development of mixed- use and higher intensity development projects at transit nodes and along transit corridors (existing and planned).

Require new development at transit nodes and along transit corridors to meet planning and design standards to generate, attract and facilitate transit ridership as a condition of approval; for instance, make the project more attractive to the target population (such as young, single urban individuals).

Continued on next page
Sustainability Best Practices Framework
Land Use & Community Design continued
Tip: Consider a public health
approach to planning and develop -
ment that encourages alternatives
to single-occupant-vehicle travel
and promotes active transportation
in order to provide health benefits
such as new exercise opportunities
(walking and bicycling), pedestrian
and bicyclist safety and improved
air quality that reduces asthma and
other health conditions and diseases.

ATTACHMENT A
28 www.ca-ilg.orgInstitute for Local Government Parking Opportunities
Reduce parking requirements, to the extent feasible, to facilitate higher density development that fosters access to walking, biking and public transit.

Integrate park-and-ride lots and car sharing service spaces with mixed-use facilities and transportation hubs/centers.

Promote revitalization of transit corridors by improving light rail, bus rapid transit (BRT) or other high-service transit facilities and services, and promoting an appropriate mix of housing, retail, and office space.

Require new commercial developments to include electric vehicle charging and natural gas fueling stations in parking lots or garages.

Streets and Roads Opportunities
Plan and encourage roadways of smaller residential-scaled streets (generally 2 or 4 lanes maximum) with high levels of connectivity and short blocks.

Implement design standards that require streets and sidewalks to be designed for multi-modal mobility and access, including walking and bicycling, to ensure that new development is designed, sited and oriented to facilitate pedestrian, bicycle and other mobility and access (also referred to as complete streets).

Create residential neighborhood traffic management (traffic calming) plans to improve livability by reducing speeding and traffic volumes and increase safety for walking and bicycling.

Cluster freight facilities near ports, airports, and rail terminals to reduce their impact on streets and roadways.

Evaluate Greenhouse Gas Emissions and Plan for Mitigating and Adapting to Climate Change
Adopt a climate action plan or include a greenhouse gas reduction, climate adaptation or climate mitigation plan or policies in the general plan, or include within the general plan a requirement for development and adoption of such plans.

Ensure that the adopted climate action plan complies with the California Environmental Quality Act (CEQA) Guidelines to help streamline the CEQA review for future development projects that are consistent with the climate action plan.

Include within a climate action plan or general plan a procedure to monitor and track greenhouse gas emissions associated with development projects and municipal operations.

Review zoning codes and development policies to identify changes that could improve implementation of land use and transportation policies that reduce greenhouse gas emissions.

Develop and adopt a preferred land use and transportation scenario for future development to reduce vehicle miles traveled (VMT) in alignment with the region’s sustainability strategy, including through computer modeling tools.

Work with other jurisdictions within the region to identify and address existing and potential regional sources of greenhouse gas emissions under different development scenarios.

Sustainability Best Practices Framework
Land Use & Community Design continued
Continued on next page

ATTACHMENT A
29 www.ca-ilg.orgInstitute for Local Government Amend local CEQA guidelines to explain how to treat analysis of greenhouse gas emissions, such as including thresholds of significance.

Adopt policies in the general plan, climate action plan or other appropriate policy document to address the potential land use and community design effects of climate change (such as sea level rise, heat events, wildfires) especially for providing essential public services (such as police, fire, etc.).

Improve Communication, Collaboration and Inclusion
Coordinate planning and project approval procedures to increase collaboration between planning and other agency staff (such as public works, utilities, public safety, etc.), as appropriate.

Involve a diverse group of stakeholders in planning processes to ensure the agency’s guiding plans are representative of community’s diverse population and interests.

Use non-conventional methods to gather input from diverse community groups, particularly those that do not ordinarily participate in community planning efforts (for example conduct outreach and education through community groups and non-profits prior to public hearings).

Collaborate with local, regional and state agencies to share land use and community design-related information, coordinate planning goals and processes, and take advantage of opportunities to combine and leverage scarce resources.

Analyze impacts of development projects on safety and involve emergency responders and public safety staff early and consistently in development of growth plans.

Develop and implement an approach to planning that identifies and balances economic, environmental and social equity needs.

Participate in regional planning efforts, such as processes to develop and implement the regional Sustainable Communities Strategy pursuant to SB 375 and, where appropriate, align local general plans and zoning for consistency with the regional transportation plan.

Sustainability Best Practices Framework
Land Use & Community Design continued
www.ca-ilg.org

ATTACHMENT A
30 www.ca-ilg.orgInstitute for Local Government Forests, parks, agricultural
lands and open space serve
as “carbon sinks” by storing
greenhouse gas emissions
that otherwise contribute to
climate change. Co-benefits
of preserving open space and
protecting local agriculture
may include: making
recreational activities available
to community residents
and, in some cases, reducing
vehicle miles traveled.

Note: Greenhouse gas emissions
(also called carbon emissions)
generally include carbon dioxide,
methane, nitrous oxide, hydro-
fluorocarbons, perfluorocarbons
and sulfur hexafluoride. Greenhouse
gas emissions are expressed as
“carbon dioxide equivalents”
which are numbers that translate
emissions from different types of
greenhouse gases, based upon their
climate warming potential, into the
equivalent amount of emissions
from carbon dioxide.

Updated June 2013
Open Space and Offsetting
Carbon Emissions
Options to Consider
Agency
Plans and Policies
Include specific goals and policies designed to reduce carbon emissions in the open space element of the agency’s general plan.

Adopt a tree ordinance to protect urban forests, including protection for specific individual trees or tree species important to the community.

Adopt a ridgeline and hills ordinance to restrict grading and home building on hillsides as a way to enhance public safety and preserve open space.

Adopt a climate action plan that includes strategies to reduce carbon emissions through open space.

Adopt a policy to thin agency trees and remove brush on agency land, as feasible and appropriate, to reduce the threat of fire and release of carbon emissions from forest and range fires.

Adopt a policy to support waste-to-energy projects that use forest waste, food waste or other vegetative sources of methane and other greenhouse gases that would otherwise release greenhouse gases into the atmosphere.

Apply for designation as a Tree City USA community by the Arbor Day Foundation.

Parks
Increase the number, type and accessibility of parks and other recreational opportunities in the community, including promoting associated public health benefits.

Increase opportunities for recreational open space.

Build environmentally sustainable parks by incorporating reused and recycled materials, water-efficient landscaping and water-efficient technology systems.

Evaluate opportunities to convert closed solid waste landfills to parks or open space.

Habitat & Open Space
Protect natural lands through:
- Partnerships with other agencies, stakeholders and non-profit organizations - Land acquisition
- Conservation easements
- Other long-term mechanisms
Evaluate habitat monitoring, management and restoration protocols to consider possible future impacts of changing climatic conditions.

Work with property owners, state and federal wildlife agencies to create a new or expanded multi-species habitat conservation plan.

Sustainability Best Practices Framework
Continued on next page

ATTACHMENT A
31 www.ca-ilg.orgInstitute for Local Government Develop and implement a community-wide urban forestry management and reforestation program to increase the carbon storage potential of trees and other vegetation in the community.

Manage parks, open space, recreational facilities and other natural areas owned or operated by the agency to ensure the long-term health and viability of trees and other vegetation.

Remove invasive non-native plants in order to reduce risk of forest and grassland fires (and the associated greenhouse gas release) and promote sustainable native forests and grasslands.

Inventory existing trees on property owned or managed by the agency, including street trees, and implement a management system to preserve and enhance the tree system.

Plant native trees and drought tolerant vegetation throughout the community.

Agriculture and Food Purchases
Enact a policy to purchase locally grown food for agency food purchases, when feasible, to promote retention of local agricultural land uses.

Where feasible, direct new development away from open space and agricultural lands in order to take advantage of carbon storage opportunities.

Offsetting Carbon (Greenhouse Gas) Emissions
Achieve carbon neutrality at agency-sponsored events and activities through conservation, efficiency, recycling, alternative transportation and other strategies that reduce greenhouse gas emissions.

Purchase and retire (put out of use) third-party verified greenhouse gas emission reduction credits.

Create incentives for community organizations, businesses and residents to reduce their carbon emissions, including the purchase of third-party verified greenhouse gas emission reductions.

Community
Tree Planting
Provide tree planting resources and information on the agency website to encourage tree planting by residents.

Participate in regional tree planting efforts to mobilize and encourage the community to plant trees.

Create an agency-sponsored tree planting program that offers free shade and other trees to residents, businesses, schools and non-profits, as well as education about the care and benefits from trees. Collaborate with the local utility if it has a tree planting program to help get the word out.

Sustainability Best Practices Framework
Open Space & Offsetting Carbon Emissions continued
Continued on next page

ATTACHMENT A
32 www.ca-ilg.orgInstitute for Local Government Agriculture and Food Purchases
Assist efforts by community groups and non-profit organizations to create community gardens.

Encourage community gardens and farmers markets to support the availability of healthy, locally grown produce.

Provide financial incentives for low-income residents to purchase fresh produce at farmers markets in the community.

Promote the purchase of locally-grown produce through farmers markets and other measures.

Promote conservation tillage and other agricultural practices to retain carbon fixed in soils.

Host workshops to showcase community supported agriculture, farm-to- school programs and local organic farms.

Sustainability Best Practices Framework
Open Space & Offsetting Carbon Emissions continued
www.ca-ilg.org

ATTACHMENT A
33 www.ca-ilg.orgInstitute for Local Government Providing reliable and
objective information helps
inform residents about the
causes, impacts and possible
responses to climate change.

Involving the community in
the development of proposed
sustainability policies and
programs builds buy-in
and awareness. Providing
practical information that
helps individuals reduce their
greenhouse gas emissions
empowers them to take action
and make a difference.

Updated June 2013
Community and Individual
Action
Options to Consider
Inform
Develop and implement a community climate change education program that provides community members with basic information about climate change.

Host informational workshops to educate residents and businesses about sustainability opportunities, such as those from energy efficiency and water conservation.

Develop information and positive messages about activities individuals and businesses can take to reduce greenhouse gas emissions.

Inform the public about the environmental, community and financial benefits of actions that reduce greenhouse gas emissions.

Create a sustainability handbook, available online and in hard copy, that outlines the steps residents and businesses can take to go green, such as by reducing energy and water use, recycling and using alternative transportation.

Issue a sustainability edition of the agency newsletter.

Include information in local agency mailings, websites and other media about actions that individuals and businesses can take to address climate change.

Share progress with community members on the implementation of agency and/or community climate action plans and sustainability policies.

Use the agency’s social media channels, such as Facebook, Twitter, Nixle and Notify Me, to inform the community about sustainable activities in the community.

Work with ethnic media to engage non-English speaking groups in the development of sustainability programs and policies.

Develop public service announcements and/or talk shows related to sustainability.

Distribute give-away items, such as reusable bags and compact fluorescent lightbulbs, to encourage environmental responsibility.

Distribute maps showing the community bicycle and walking trail systems to encourage reduction of vehicle miles traveled.

Consult
Survey businesses and residents to understand attitudes and behaviors related to sustainability, energy efficiency and climate change; use this information to develop and implement community wide sustainability action items.

Create ongoing opportunities for community members to provide feedback on proposed sustainability policies and programs, such as through surveys, online or public forums and at stakeholder meetings.

Sustainability Best Practices Framework
Continued on next page

ATTACHMENT A
34 www.ca-ilg.orgInstitute for Local Government Involve
Create a community sustainability commission to help with the development, implementation and tracking of a climate action or sustainability plan.

Host a green leadership summit for community leaders, school groups and private entities to gather and share experiences, expertise, strategies and ideas for the development of a healthier and more sustainable community.

Involve diverse stakeholders, including such groups as ethnic chambers of commerce and neighborhood groups, in developing sustainability policies and programs.

Include sustainability and climate change-related projects as part of youth commission activities.

Provide programs and/or incentives to individuals, groups and businesses that adopt practices that reduce their carbon footprint. Incentives can be financial or non-financial, such as official recognition of participants’ efforts.

Challenge community members to go on a “carbon diet” to promote individual action to reduce greenhouse gas emissions.

Collaborate
Invite community members, organizations and other local agencies to participate in ongoing conversations regarding future growth plans and policies.

Collaborate with local utilities to create and publicize energy efficiency opportunities for residents and businesses, such as through an energy showcase home or model sustainable landscape projects that reduce water and energy.

Collaborate with schools to educate students about opportunities to be more energy efficient and to reduce, re-use and recycle.

Develop a sustainability or community climate change outreach and education program that enlists participation from schools, museums, service groups and business organizations, such as local chambers of commerce, neighborhood and homeowner associations and other community partners.

Partner with the local community college and grade schools to develop classes or workshops with an environmental focus.

Collaborate with high schools and community colleges to provide students with internship opportunities related to sustainability.

Collaborate with other local government agencies to share information about climate change and best practices to reduce greenhouse gases.

Partner with other organizations to implement a bulk purchase discount program for such items as energy efficiency equipment and photovoltaic solar systems.

Create an inter-agency local or regional climate action partnership and/or action plan with one or more agencies or neighboring jurisdictions.

Initiate a community climate action partnership with a global sister agency.

Sustainability Best Practices Framework
Community & Individual Action continued
Continued on next page

ATTACHMENT A
35 www.ca-ilg.orgInstitute for Local Government Empower
Participate in the CoolCalifornia Challenge which challenges local agencies to engage residents in taking action to reduce household energy and vehicle miles traveled.

Sponsor a program to assist local business in adopting sustainable practices.

Host one or more events to highlight and promote sustainability programs, such as an e-waste drop off, plant a tree, bike to work day or buy local campaigns.

Sustainability Best Practices Framework
Community & Individual Action continued
www.ca-ilg.org

ATTACHMENT A
www.ca-ilg.org
How to Engage
There are many ways to get involved in local land use planning decisions. Your city or county may use community organizations, chambers of commerce, neighborhood associations or other groups to let you know about upcoming land use decisions. Contact the planning department in your community to learn more about the ways that you can be involved in local land use decisions. Opportunities for engagement may include:

Advisory Committees
A representative group of typically volunteer stakeholders are convened to guide a planning effort over an extended period of time. To ensure that membership is representative, be sure to include hard to reach populations such as youth, immigrants and low-income individuals or advocates.

Charrettes
A facilitated multiple-day process that includes interested stakeholders. Participants develop solutions that address potential concerns simultaneously.

Focus Groups
Small groups of stakeholders brought together for a limited amount of time to provide their knowledge of a project/area and discuss their concerns.

Participatory Mapping
Residents identify community assets, needs and opportunities on a large photo aerial map of the community. Participants can be encouraged to use sticky dots, markers or other similar items.

Scenario Planning
A visioning process during which the public helps a local agency generate proposed alternatives future growth and development.

Computer-based modeling tools are often used.

The Institute for Local Government is the nonprofit research education affiliate of the League of California Cities and the California State Association of Counties. Its mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities.

The Institute’s current program areas include:
•
Pu
blic Engagement
• Loc
al Government Basics
• Eth
ics and Transparency
• Sus
tainable Communities
• Co
llaboration and Partnerships
Land Use Planning Resources
• Engaging the Public in Planning, Housing & Sustainability www.ca-ilg.org/ e
ngaging-public-planning-housing-sustainability
• Un
derstanding the Basics of Land Use Planning www.ca-ilg.org/post/ understanding-basics-land-use-and-planning-series
• La
nd Use and Environment www.ca-ilg.org/land-use-environment • SB 3
75 Resource Center www.ca-ilg.org/sb-375-resource-center • Onl
ine Guide to Planning Healthy Neighborhoods http://www.ca-ilg.org/ online-guide-planning-healthy-neighborhoods
Acknowledgments
The Institute gratefully acknowledges the following individuals who reviewed this document and offered their comments prior to publication:
•
Ro
n Gould, City Manager, City of Santa Monica
• Bri
an Holloway, President, Holloway Land Company
This publication was made possible in part
through the generous support of The James Irvine
Foundation.

BUILDING

HEALTHY & VIBRANT
COM

MUNITIES
Achieving Results through Community Engagement
HOW

ATTACHMENT A
Who is Involved
Everyone is affected by land use decisions. However, because planning issues can be complex, residents are often unaware of how, where and when to get involved. Local officials and planning staff have the opportunity to harness community interest by encouraging the public to actively participate in the planning process.

Typical land use decisions involve the following:

City Council / Board of Supervisors
A legislative group of elected residents that oversees
local government operations.

Developer / Applicant
Any person, firm or entity which seeks local agency
approvals for all or part of a development project.

General Public / Community
A diverse group of people that may or may not share
the same set of goals and concerns.

Interest Groups / Stakeholders
Organizations or individuals with an identifiable stake in the issue focused on a particular priority (i.e. agriculture, business and environment).

Planning Commission
A committee of residents who have been appointed by your city council or county board of supervisor to review and consider land use matters such as general plans, rezoning, use permits and subdivisions. There are also other boards and commissions, such as the architectural review board that can be involved in the process.

Planning Staff
Public employees that administer zoning ordinance and general plan provisions and provide technical planning services to a local agency. Additional local agency staff (such as public works, police, fire and building departments) often advise planners during the review process.

What is Land Use Planning
Land use planning determines how communities are built and what you can do with your property. Competing demands for the same space and resources can generate conflict. Local officials must balance these competing demands as they make decisions impacting the future of their communities. This publication focuses on land use planning at the local level where residents can easily be involved in, and impact, the process.

The fields of land use planning and community development have evolved to address a number of rising concerns. Some of the issues that have spurred changes in the way that communities are planned and built include:

Longer commutes, rising gasoline prices, growing traffic congestion and declining mobility;
Loss of farmland, wildlife habitat and natural resources as low- density development spreads into formerly undeveloped areas; Air quality and climate-change issues associated with
vehicle emissions and energy use in buildings;
Inefficient water use and water-intensive landscaping; and Growth that outpaces investments in infrastructure and
services resulting in an increased need for maintenance and replacement.
www.ca-ilg.org
Why Community Engagement Matters
Public engagement processes can take time and scarce resources to implement effectively. They are not always appropriate in all situations; however, there are many practical reasons to engage residents in planning.

Better
Identification
of the Public’s
Values
Increased
Civility
Reduced Risk
of Legal
Challenge
More Informed
Residents
Improved
decision-making
Faster and more Streamlined
Project Implementation
Higher Rates of Community
Participation and Leadership
Development
Involve the public early in the front end of designing a public a process and be open to what the public wants to do. If you go in with a clear vision of what you want out of it people will sense that and get angry.

Involving the public in a planning process builds credibility and support for changes that are implemented.
– ROD GOULD, CITY MANAGER, CITY OF SANTA MONICA
!
!
!
!
!
WHAT

WHO WHY

Typical land use decisions involve the following:

City Council / Board of Supervisors
A legislative group of elected residents that oversees
local government operations.

Developer / Applicant
Any person, firm or entity which seeks local agency
approvals for all or part of a development project.

General Public / Community
A diverse group of people that may or may not share
the same set of goals and concerns.

Interest Groups / Stakeholders
Organizations or individuals with an identifiable stake in the issue focused on a particular priority (i.e. agriculture, business and environment).

Involving the public in a planning process builds credibility and support for changes that are implemented.
– ROD GOULD, CITY MANAGER, CITY OF SANTA MONICA
!
!
!
!
!
WHAT

WHO WHY

Typical land use decisions involve the following:

City Council / Board of Supervisors
A legislative group of elected residents that oversees
local government operations.

Developer / Applicant
Any person, firm or entity which seeks local agency
approvals for all or part of a development project.

General Public / Community
A diverse group of people that may or may not share
the same set of goals and concerns.

Interest Groups / Stakeholders
Organizations or individuals with an identifiable stake in the issue focused on a particular priority (i.e. agriculture, business and environment).

Better
Identification
of the Public’s
Values
Increased
Civility
Reduced Risk
of Legal
Challenge
More Informed
Residents
Improved
decision-making
Faster and more Streamlined
Project Implementation
Higher Rates of Community
Participation and Leadership
Development
Involve the public early in the front end of designing a public process and be open to what the public wants to do. If you go in with a clear vision of what you want out of it people will sense that and get angry.

Involving the public in a planning process builds credibility and support for changes that are implemented.
– ROD GOULD, CITY MANAGER, CITY OF SANTA MONICA
!
!
!
!
!
WHAT

WHO WHY

Charrettes
A facilitated multiple-day process that includes interested stakeholders. Participants develop solutions that address potential concerns simultaneously.

Focus Groups
Small groups of stakeholders brought together for a limited amount of time to provide their knowledge of a project/area and discuss their concerns.

Scenario Planning
A visioning process during which the public helps a local agency generate proposed alternatives future growth and development.

Computer-based modeling tools are often used.

The Institute’s current program areas include:
•
Pu
blic Engagement
• Loc
al Government Basics
• Eth
ics and Transparency
• Sus
tainable Communities
• Co
llaboration and Partnerships
Land Use Planning Resources
• Engaging the Public in Planning, Housing & Sustainability www.ca-ilg.org/ e
ngaging-public-planning-housing-sustainability
• Under
standing the Basics of Land Use Planning www.ca-ilg.org/post/ understanding-basics-land-use-and-planning-series
• La
nd Use and Environment www.ca-ilg.org/land-use-environment • SB
375 Resource Center www.ca-ilg.org/sb-375-resource-center • Onl
ine Guide to Planning Healthy Neighborhoods http://www.ca-ilg.org/ online-guide-planning-healthy-neighborhoods
Acknowledgments
The Institute gratefully acknowledges the following individuals who reviewed this document and offered their comments prior to publication:
•
Ro
n Gould, City Manager, City of Santa Monica
• Bri
an Holloway, President, Holloway Land Company
This publication was made possible in part
through the generous support of The James Irvine
Foundation.

BUILDING

HEALTHY & VIBRANT
CO

MMUNTIES
Achieving Results through Community Engagement
HOW

Charrettes
A facilitated multiple-day process that includes interested stakeholders. Participants develop solutions that address potential concerns simultaneously.

Focus Groups
Small groups of stakeholders brought together for a limited amount of time to provide their knowledge of a project/area and discuss their concerns.

Scenario Planning
A visioning process during which the public helps a local agency generate proposed alternatives future growth and development.

Computer-based modeling tools are often used.

BUILDING

HEALTHY & VIBRANT
CO

MMUNTIES
Achieving Results through Community Engagement
HOW

ATTACHMENT A
GUIDE TO PLANNING HEALTHY NEIGHBORHOODS:

Tips for Getting Started
Local ofﬁ cials can play a leadership role in efforts
to improve community health. Planning decisions
can inﬂ uence health positively by presenting
opportunities for healthy behavior or negatively by
restricting access to healthy options. Key land-use
characteristics that affect health include:
Patterns of land use within a community
or neighborhood;
The design and construction of spaces and
buildings; and
The transportation systems that connect people
to places.

Physical activity and proper nutrition can largely
prevent many chronic diseases, such as heart
disease and type 2 diabetes. In response to the
rising rates of chronic disease, many local agencies
are adopting land-use measures that support
healthy eating and active living.

Tips for Getting Started

1. Scan: What Has Been Done?

2. Assess: What Are the Needs?

3. Identify: What Are the Opportunities?
The Guide to Planning Healthy Neighborhoods
includes information on land use and planning
strategies to improve community health and
resources to assist in crafting local efforts. The
following tips are intended to help local ofﬁ cials
consider which strategies and resources best
ﬁ t the situation in their particular neighborhood
or community.

1. Scan - What Has Been Done?
Knowing what is already being done or has been tried
in the past is an essential ﬁ rst step. A scan can identify strategies that have been successful in previous efforts, uncover areas of redundancy, and highlight useful
lessons that can be applied to future efforts. Further, renewing relationships with past partners through a
scan can be a great way to identify allies and resources.

QUESTIONS TO CONSIDER:
5 Are there local programs or policies that have been
adopted to speciﬁ cally improve the health and safety
of residents? Have these programs or policies had a
noticeable effect on health conditions? What factors
or features help or hinder their effectiveness?
5 Are there programs or policies put in place for
reasons other than health that have had the co-
beneﬁ t – whether intended or unintended – of
improving the health of residents?
5 Are community-based organizations already
working to improve the health or safety of
local neighborhoods? Are there particular local
ofﬁ cials or departments that have been especially
successful working with the community to identify
and address health, safety, and related concerns?
5 Have other public agencies or outside organizations
partnered with the local agency (or with one another)
to leverage resources and successfully improve
resident’s health? What have been the results of
these community partnerships?

2. Assess – What Are the
Community’s Needs?
The purpose of this step is to gather information to
understand the baseline health and quality-of-life
needs of the community. While statistical data is
important, listening to residents articulate their needs and concerns can augment the understanding of the
challenges facing residents. Engaging the community
also provides an opportunity to brainstorm solutions
that capitalize on the residents’ strengths and expertise.

UNDERSTANDING THE BASICS OF LAND USE AND PLANNING: Guide to Planning Healthy Neighborhoods

ATTACHMENT A
QUESTIONS TO CONSIDER:
5 What are the most serious or prevalent health issues facing the community? Are there trends in how these health
issues have evolved over time?
5 Are there particular groups of residents that are especially vulnerable to certain health risks or environmental hazards? Are health indicators linked to geographic location or socio- economic status?
5 What are the opportunities to access nutritious food? Which neighborhoods have access to full-service grocery stores? Are there other sources of healthy food available – such as farmers markets, community gardens, or
community-supported agriculture?
5 Can residents ﬁ nd safe and convenient places to be
physically active? What is the ratio of park space to
residents and what is the condition of the parks? How
many miles of trails and bikeways exist?
5 Are there environmental hazards located near schools, residences, or other populated places? Where are areas with high rates of preventable injury to pedestrians and bicyclists?

3. Identify – What Are the Opportunities to
Get Started?
After conducting a scan to inventory past efforts and
collecting data to assess key areas of need, the next step is to identify the most promising opportunities to address the needs. In some instances local ofﬁ cials may want to launch a new initiative for planning healthy neighborhoods.

However, in many cases the existing planning process
provides opportunities to integrate health considerations into land use decisions more quickly and cost-effectively.

QUESTIONS TO CONSIDER:
5 Are there current or past policies or programs related to health and planning that can be built upon to broaden their reach, scope or effectiveness?
5 Is the local agency (or a partner organization) eligible to apply for particular funding sources to support healthy neighborhood policies or programs?
5 Are there planning documents in development or ready
for review that can be improved by incorporating health language or by including a health impact assessment?
5 Are there particular programs or projects in the local agency’s capital or operating budget that could be
bolstered or modi ﬁ ed to deliver health co-bene ﬁ ts?
More information is available in the Guide to
Planning Healthy Neighborhoods and at
www.ca-ilg.org/healthyneighborhoods.

The Institute for Local Government is the nonproﬁ t
research afﬁ liate of the League of California Cities
and the California State Association of Counties.

Its mission is to promote good government at the
local level.

The Institute’s current program areas include:
• Climate Change
• Healthy Communities
• Intergovernmental Conﬂ ict Resolution
• Land Use and Environment
• Local Government 101
• Public Engagement and Collaborative Governance
• Public Service Ethics
Generous Support for this
publication provided by:

UNDERSTANDING THE BASICS OF
LAND USE AND PLANNING:

GUIDE TO PLANNING HEALTHY NEIGHBORHOODS

TIPS FOR GETTING STARTED
© 2010 by Institute for Local Government
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208 • FAX (916) 444-7535
www.ca-ilg.org
UNDERSTANDING THE BASICS OF LAND USE AND PLANNING: Guide to Planning Healthy Neighborhoods

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Your Legal Powers and Obligations

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Your Legal Powers and Obligations
1 Disclaimer: This paper is provided for general information only and is not offered or intended as legal advice. Readers should seek the advice of an attorney when confronted with legal issues and attorneys should perform an independent evaluation of the issues raised in this paper.

Legal Issues: The Law and Making Things Happen in Your
Jurisdiction

Summary and Overview

Legal considerations frequently affect how you are able to pursue the goals that you and your colleagues set for your community. A basic understanding of the legal structure that governs cities will help you provide more effective community service.

This paper highlights some of the laws and legal principles that may impact your decision- making on the city council. It is not comprehensive by any means. You will want to forge a positive relationship with the city attorney in your city, who can help navigate the relevant laws and legal principles and assist in avoiding legal mistakes that could be costly for your city.

SECTION I: Sources of the Law and Municipal Powers

What are the Sources of Law for Cities?

The “law” affecting California cities can be found in a number of places:

 The California Constitution specifies the relationship among the various levels and branches of government, and establishes a number of individual rights. Cities derive a number of their powers directly from the California Constitution. Changing the Constitution requires a vote of the people.

Proposals to change the Constitution may be placed on the ballot by either the Legislature or by initiative petition.

 City Charters, in those cities where citizens have elected to have charters, determine how a city is organized and, in some circumstances, give cities certain home rule prerogatives even in the face of conflicting state statutes.

There are two types of cities in California: “charter cities,” which operate under the city's local charter, and “general law cities,” which operate under the general laws of the state.1 Charters can also contain (self-imposed) limitations on city activities.

 State Statutes are typically enacted by the State Legislature and are printed in a series of “codes.” The California Government Code, for example, contains a number of provisions relating to the organization of general law cities, as

1 See Cal. Gov. Code, §§ 34101 and 34102.

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2 well as land use, planning and employee relations matters. Voters can also amend state statutes through the initiative process.

 Local Ordinances represent local agencies’ exercise of law-making powers within their respective jurisdictional boundaries.

 The Federal Constitution and Statutes apply nationwide and typically act as restrictions on the exercise of power by state and local governments.

 Judicial Decisions interpret all of the above, frequently resolving ambiguities or conflicts among them.

What Powers Do Cities Have and How Are They Limited?

This section provides a brief overview of the sources of city authority and the factors that may constrain a city’s ability to exercise that authority. A relevant consideration is whether your city is a charter or general law city since charter cities may retain local authority even when their enactments conflict with state law.

The “Police” Power

The California Constitution provides that a city may make and enforce within its limits all local, police, sanitary and other ordinances and regulations not in conflict with general laws. 2 This is
commonly known as the “police power,” and is often referred to as the city’s regulatory authority to protect the public health, safety and welfare.

Preemption

A city’s regulatory authority may be restricted if the proposed local ordinance or regulation conflicts with federal or state general laws. This is a concept known as “preemption.” Federal or state law may preempt a city’s ability to legislate in a particular area, either explicitly or by implication.

The test for preemption of local law by federal or state laws is similar. A local ordinance will be preempted by state law when it is in express conflict with state law. 3 Preemption may also occur
even when there is no express conflict if the state law has fully “occupied the field” of regulation.

2 Cal. Const., art. XI, § 7.

3 Cal. Const., art . XI, § 7. Note, however, that charter cities are exempt from this restriction in regard to “municipal affairs.” Johnson v. Bradley, 4 Cal.4th 389, 397 (1992).

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3 Determining what constitutes a “conflict with general laws” is not always easy. Sometimes the Legislature expressly declares its intent to preempt local regulation. Oftentimes, the courts may be called upon to make the final determination.4

Charter City Powers

Perhaps the strongest expression of home rule or local control in California’s Constitution relates to a charter city’s authority over municipal affairs.5 If a matter is a “municipal affair” (and not a “matter of statewide concern”), a charter city has power to act, even to the extent that the city’s action may be at odds with a state statute. The chief restriction on local action under these circumstances is whether the action would be inconsistent with the city’s charter or the California or United States Constitutions.

Courts, rather than the Legislature, are the ultimate arbiters of whether a subject is a municipal affair or a matter of statewide concern.
6 This determination is made on a case-by-case basis,
which means that it frequently takes litigation to vindicate a charter city’s exercise of its authority. More information on charter cities can be found at www.cacities.org/chartercities.

Operation of Public Works

The California Constitution provides that a city may establish, purchase, and operate public works to furnish its inhabitants with light, water, power, heat, transportation, or means of communication.7 It may furnish those services outside its boundaries, except within another municipal utility’s boundaries that furnishes the same service and does not consent. Persons or corporations supplying those services may operate within cities upon conditions and under regulations that the city may prescribe.8

4 For example, one court ruled that a city could not enact housing occupancy standards more stringent than the uniform standards contained in state housing law. Briseno v. City of Santa Ana, 6 Cal.App.4th 1378, 8 Cal.Rptr.2d 486 (1992). Another court held that a city could not regulate the storage of firearms. Suter v. City of Lafayette, 57 Cal. App. 4th 1109, 67 Cal. Rptr. 2d 420 (1997). On the other hand, courts have found local ordinances allowing mobile home rent increases to fund capital improvements, prohibiting boisterous conduct in card clubs, and regulating nuisances related to the sale of alcoholic beverages not to be preempted by state law on related subjects.

Robinson v. City of Yucaipa, 28 Cal. App. 4th 1506, 34 Cal. Rptr. 2d 291 (1994); Lowe v. City of Commerce, 59 Cal.

App. 4th 1075, 69 Cal. Rptr. 2d 356 (1997); City of Oakland v. Superior Court, 45 Cal. App. 4th 740, 53 Cal. Rptr. 2d 120 (1996).

5 See generally Cal. Const., art. XI, § 5.

6 The threshold inquiry is whether a conflict exists between a charter city law and state law. If no conflict exists, the charter city law stands. If a conflict exists, the court will find the matter is a municipal affair unless it qualifies as a matter of statewide concern. Even if the subject matter is of statewide concern, the state law must be reasonably related and narrowly tailored to address that statewide concern. See Johnson v. Bradley, 4 Cal. 4th 389, 14 Cal.

Rptr. 2d 470 (1992); see also State Building and Construction Trades Council of California, AFL-CIO v. City of Vista, 54 Cal. 4th 547, 279 P. 3d 1022 (2012).

7 Cal. Const., art. XI, § 9(a).
8 Cal. Const., art. XI, §9(b).

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4 State and Federal Constitutional Limitations

Local officials’ actions must also comply with the United States Constitution and federal law.

Areas of federal law that frequently arise for cities include:

 The First Amendment establishment of religion, free exercise of religion and free speech clauses.

 The Fourth Amendment prohibition against unreasonable search or seizure.

 The Fifth Amendment right to remain silent (for example, in police interrogations) and the requirement of just compensation for the taking of property.

 The Fourteenth Amendment’s protections of due process, equal protection and property rights.

California’s Constitution also contains similar declarations of rights, as well as other provisions that may place limits on city actions. Some examples include provisions relating to water rights,9 workers compensation,10 alcoholic beverage regulation,11 public housing projects12 and the non-partisan nature of municipal government.13

City officials should also be aware of the various federal civil rights laws which prohibit public agencies from discriminating against individuals based on a number of protected characteristics (for example, race, gender, physical disability and age). The state also has a number of laws that contain similar—but not always the same—protections.

Indemnity and Immunity

When acting within the bounds of their authority, city council members, as public officials, enjoy a number of statutory immunities that shield them from personal liability and provide immunity under most circumstances.

Except as otherwise provided by law, the city must pay any judgment or any compromise or settlement so long as the following are true: (1) the claim or action arose from an act or

9 See Cal. Const., art. X.

10 See Cal. Const., art. XIV, §4.

11 See Cal. Const., art. XX, §22.

12 See Cal. Const., art. XXXIV.

13 See Cal. Const., art. II, §6.

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5 omission occurring within the scope of employment; (2) a request for defense is made in writing at least 10 days before trial; and (3) the employee reasonably cooperates in good faith in the defense of the claim or action.14 For purposes of this discussion, council members are considered city employees, regardless of whether they are compensated or not.

But the city’s duty to defend or indemnify a council member does not apply in the context of alleged conflicts of interest in violation of the Political Reform Act or other conflict of interest laws. Liability for conflicts of interest is personal to the council member. However, a council member is entitled to seek an opinion on conflict of interest issues from the Fair Political Practices Commission (“FPPC”). A written advisory letter from the FPPC will provide immunity to a public official who has requested and obtained such a letter. The same is not true for conflict advice a council member may have received from the city attorney, or for informal advice received from FPPC staff by telephone.

Exercising Power

Taking Legislative Action

Cities usually exercise their regulatory authority by adopting ordinances or resolutions. For general law cities, state law requires that the city attorney draft all ordinances. 15 Further, state
law requires that the mayor of a general law city sign the ordinances and that the city clerk attest the ordinances.16 The city clerk must, within 15 days after its passage, cause the ordinance to be published at least once in a newspaper of general circulation, or post the ordinance if no newspaper of general circulation is published in the city.17

After the ordinance has been introduced, it cannot be finally passed until the expiration of at least five days. The only exception is an urgency ordinance, which can be finally passed at the same meeting at which it is introduced.
18 An ordinance in general law cities must be passed by a majority of the entire city council.19 The voting requirement also applies to resolutions.

Acting in a Quasi-Judicial Capacity

The city council is primarily a legislative and administrative body, but often sits in a quasi-judicial capacity. Quasi-judicial matters may include variances, use permits, annexation protests, and personnel disciplinary actions. Quasi-judicial proceedings tend to involve the

14 Cal. Gov. Code, § 825(a).

15 Cal. Gov. Code, § 41802.

16 See Cal. Gov. Code, § 36932.

17 See Cal. Gov. Code, § 36933.

18 See Cal. Gov. Code, § 36934.

19 See Cal. Gov. Code, § 36936.

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6 application of generally adopted standards or rules to specific fact situations, much as a judge applies the law to a particular set of facts.

Those persons subject to a quasi-judicial proceeding must be given meaningful notice and an opportunity to be heard. A record should be kept of the witnesses and their testimony, the evidence introduced on both sides, and the council’s findings.

“Findings” are the city council’s explanation for its action. Findings are not only important to those interested in the council’s decision, but to courts reviewing the council’s action in the event of a legal challenge.

To satisfy due process obligations, the decision-maker must be fair and impartial. 20 Council
members should be careful to listen to the testimony in such hearings if they vote on the matter, leaving biases, prejudices and pre-conceived ideas outside the hearing.21

SECTION II: The Money to Make Things Happen

California cities raise revenue to pay for public facilities and services in a variety of ways, including through taxes, fees, assessments, and debt financing. There are numerous laws and regulations related to raising revenue, including requirements for notice to and approval by the public and affected property owners. During this conference, you will participate in a financial responsibilities and city revenues workshop, in which you will receive training and educational materials that will assist you in complying with the complex laws that govern revenue-raising activities in your city.

SECTION III: Ethics, Conflicts of Interest and Open Government

As part of your participation in this conference, you will also receive what is commonly referred to as “AB 1234 training.” Enacted in 2005, AB 1234 requires local elected officials to receive training every two years on the laws related to ethics, conflicts of interest and open government.

The Institute for Local Government, in conjunction with the Attorney General’s office and other stakeholders, has developed educational materials that will assist you in understanding these important, but often complicated, areas of the law.

20 See Clark v. City of Hermosa Beach, 48 Cal. App. 4th 1152, 56 Cal. Rptr. 2d 223 (1996) (explaining basic requisites of due process in the context of a council’s quasi-judicial action on a zoning appeal); cert. denied, 520 U.S. 1167, 117 S. Ct. 1430, 137 L. Ed. 2d 538 (1997).

21 See Mennig v. City Council of City of Culver City, 86 Cal. App. 3d 341, 150 Cal. Rptr. 207 (1978).

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Communications and Civic Engagement

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Effective Public Engagement Through Strategic Communication www.ca-ilg.org | 1

Strategic communication is an essential tool for effective public engagement. This tip sheet offers advice on communication strategies before, during and after the agency’s public engagement effort.

The Public Engagement Process

I. Before the Agency Begins a Public
Engagement Effort:

Understand the Audiences
In order to effectively communicate about a public process or program, the starting point is to understand who the agency seeks to engage.
 Identify key audiences and stakeholders. What are their interests? How do they connect to the project or policy?
 Identify the community values, commonly held principles or valued qualities, such as personal safety, freedom or fairness. Understanding this can help you craft your message.  Ask stakeholders about their preferences regarding communication. What communications channels work best for them? Getting this perspective during planning both enhances understanding of these key audiences and creates a valuable communication channel for further engagement.
 Understand connections and relationships among audiences and individuals. Who are their trusted advisors? How willing are these influencers to act? Understanding these dynamics can help the agency broaden the impact of its engagement effort.

Before:
•Understand the
audiences
•Consider both the
message and the
messenger
•Create a media plan that
integrates both traditional
(print, radio and
television) and online
outlets
During:
•Create opportunities for
sustaining
communication
•Expand opportunities for
sustained interaction with
the media to maximize
strategic communication
and public engagement
After:
•Measure and evaluate
the engagement
•Create opportunities for
ongoing communication
and concentrate on
maintaining the
relationships with
stakeholders
Effective Public Engagement through
Strategic Communication

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Effective Public Engagement Through Strategic Communication www.ca-ilg.org | 2 With the above information in mind, the agency can identify and prioritize communication channels that align with the needs, opportunities and resources of both the project or policy and the audiences that the agency seeks to engage.

Consider Both the Message and the Messenger
In developing a message for a policy or project, succinctly and clearly articulate the message.  What is at stake for the community.
 Why the audience should care. Explain how the decision could affect what different people value.  The action the agency wants the agency the audience to take. For example, is the goal to help inform people, help them analyze and weigh in on different solutions to a problem, or take a specific step?
 What will happen if audience members do take action. Consider the choice of messenger and how it will affect the way in which people will receive the agency’s message.  Identify and support community champions who can speak with authenticity and power to the issue or need being addressed.
 Consider developing an outreach working group to help extend the agency’s ability to reach into different audiences in the community.
 Empower community members as storytellers. Personal perspective on a proposed policy or project can be compelling to broader audiences and the media. Tie the agency’s communication plan to the policy or project consideration process.
 What are the policy or project decision-making milestones?  How will the agency communicate progress towards key decision-making milestones?  How will the agency communicate how public input influenced the final outcomes of the decision- making process? Tie the agency’s communication plan to the policy or project consideration process.
 What are the policy or project decision-making milestones?  How will the agency communicate progress towards key decision-making milestones?  How will the agency communicate how public input influenced the final outcomes of the decision- making process?

Create a Media Plan that Integrates Both Traditional
(Print, Radio and Television) and Online Outlets
 Develop key story themes and messengers.
- Find the right community partners and champions to help spread the agency’s information and messages.
- Develop a sequence of messages that tie to key milestones in the policy or project. - Scale the level of media activity to fit the time frames and capacities of the media outlets and contacts in the area.
 Create a list of media, reporters, key bloggers and online journalists who reach priority audiences. - Identify both larger and smaller community-based publications and outlets, including radio.

Be sure to include the newsletters, blogs and events of key community partners. - Consider the different types of reporters and outlets who might cover various angles of the story (health, real estate, living, local agency beat, ethnic media, etc.).  Create a planning calendar for the decision-making process on the policy or project. - Include key milestones, events, news happenings and announcements that can engage the public.

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Effective Public Engagement Through Strategic Communication www.ca-ilg.org | 3 - Plug into other activities related to the policy or project topic locally, nationally and even internationally.
- Brainstorm different ways to slice the story to ensure ongoing coverage. - List the different news opportunities (for example, at launch, when funding is secured, when a proposal is made, when success is achieved). Find the other relevant angles (for example, health, sustainability, education). Identify submission opportunities for opinion pieces and who are the right spokespeople and storytellers.
 Monitor the media for opportunities to respond to other related stories with information about your policy or project.

II. During the Public Engagement Process:

Create opportunities for Sustaining Communication
Public engagement efforts are most successful when spokespeople consider context, content and commitment in relation to the audiences they seek to reach.  Create opportunities for engagement through channels and events both within and outside of the public agency.
 Offer multiple opportunities for the public to communicate back to the agency (surveys, online forums and meetings) to reflect that different groups will have different preferences in terms of communications channels.
 Show progress, new information or actions as proactively and quickly as possible.  Follow up on commitments made (for example, to get answers to questions) and (when possible) immediately ask for feedback about the agency’s communications and engagement efforts.  Recognize and thank partners and collaborating stakeholders for their efforts during the engagement process.

Expand Opportunities for Sustained Interaction with the Media to Maximize Strategic Communication and Public Engagement
 Train spokespeople on the needs and tendencies of media representatives.  Develop relationships with key reporters and outlets:
- Be respectful of deadlines.
- Provide them with only story ideas their audiences will care about. - Understand which outlets do and do not have reporters who routinely cover your topic, and adjust the background material you provide accordingly. - Don’t ask to review a quote or the story.
- Ask for corrections only if there are grave factual errors. - Give them information they ask for even if it is not relevant to the policy or project.  Pitch news stories and submit opinion pieces consistent with the agency’s planning calendar.

Consider an editorial board meeting with the local daily newspaper at the beginning of the effort.

Another possibility is an “educational” news briefing with background information for outlets that do not have a reporter on that beat (such as ethnic media, recently downsized local papers, radio, etc.)  Communicate progress points and/or key lessons along the way to support champions and demonstrate that the community conversation is influencing the decision-making process.  Invite media to all community meetings and make spokespeople available for interviews.

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Effective Public Engagement Through Strategic Communication www.ca-ilg.org | 4  Be prepared to take advantage of opportunities to react to news events. Have drafts of op- eds and letters to the editor that the right community member or other stakeholder can review, sign and submit quickly.
 Share media coverage with priority audiences (for example, provide printouts at community meetings, post on the agency’s website and share through other online tools).

III. After the Public Engagement Process:

Measure and Evaluate the Engagement
At the conclusion of an engagement process, use quantitative and qualitative metrics to evaluate, adjust and improve your strategy. Lessons learned from both successful and unsuccessful strategies can help to refine the agency’s understanding of the values, interests and concerns of audiences and stakeholders. This will benefit future engagement efforts.  Gather qualitative data through surveys, interviews, focus groups or informal channels.  Use process measures to assess what you did including:
- Materials distributed,
- Outreach conducted,
- Media engaged, and
- Staff, friends, partners and others reached.
 Use outcome measures to assess what happened:
- Did you achieve the goals?
- How many new people did you reach?
- Did you receive positive media coverage?
- Who used the key messages?
- Did you earn endorsements?
- Who got involved and what did they do?
 Ask for feedback and advice from stakeholders.

Create Opportunities for Ongoing Communication and Concentrate on Maintaining the Relationships with Stakeholders
As with any relationship, maintaining communication after an engagement effort has been completed will ensure that audiences and stakeholders stay informed-making them more likely to participate in future efforts.
 Share findings and lessons learned from debriefing and performance assessments.  Circle back to stakeholders with information that shows how their efforts made a difference. Thank them for their involvement.
 Use existing venues (governing body meetings, public events) and resources (website, e- mail newsletters) to celebrate new approaches, new relationships or specific successful outcomes that highlight partners or collaborating stakeholders.
 Create an ongoing network for information sharing with stakeholders and community groups.  Look for ways to support or connect with stakeholders during the periods between major engagement efforts.

Additional Information
To learn more about measuring public
engagement success, visit the
Institute for
Local Government’s public
engagement resources at (www.ca-
ilg.org/public-engagement)

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Effective Public Engagement Through Strategic Communication www.ca-ilg.org | 5 The Institute thanks the Metropolitan Group for contributing to this publication. Generous financial support for this resource was provided by The James Irvine Foundation. All decisions regarding the final content of this publication were made by the Institute for Local Government.

About the Institute for Local Government
This tip sheet is a service of the Institute for Local Government (ILG) whose mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities. ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties and the California Special Districts Association.

For more information and to access the Institute’s resources on public engagement, visit www.ca-ilg.org/public-engagement
.

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What is Public
Engagement?
Why Should
I do it?
There are many terms that describe the
involvement of the public in civic and political
life. We offer one set of terms and definitions
here not because we’re sure these
definitions are the best or most complete –
or even that most people would agree with
them - but because we think it’s important to
draw distinctions among the various ways
people can become involved. This is
important because understanding these
differences will help local officials “fit” the
best approach (or approaches) to the issue,
policy or controversy at hand. The exact
terms and definitions are less important than
recognizing that these distinctions exist.

Local governments throughout California
are applying a variety of public
engagement strategies and approaches
to address issues ranging from land use
and budgeting to climate change and
public safety. They are discovering a
number of benefits that can result from
the successful engagement of their
residents in local decision making.

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What is Public Engagement and Why Should I do it? www.ca-ilg.org | 2

What is Public Engagement?

CIVIC ENGAGEMENT
This is an extremely broad term that includes the
many ways that residents involve themselves in
the civic and political life of their community. It
encompasses volunteering as a local Little
League coach, attending neighborhood or
community-wide meetings, helping to build a
community playground, joining a city or county
clean-up effort, becoming a member of a
neighborhood watch group or local commission –
and much more.

PUBLIC ENGAGEMENT
This is a general term we are using for a broad
range of methods through which members of the
public become more informed about and/or
influence public decisions. Given our work to
support good public involvement in California, we
are especially focused on how local officials use
public involvement practices to help inform
residents and help guide the policy decisions and
actions of local government.

PUBLIC INFORMATION/OUTREACH
This kind of public engagement is
characterized by one-way local government
communication to residents to inform them
about a public problem, issue or policy
matter.

Examples could include: a website article
describing the agency’s current budget
situation; a mailing to neighborhood residents
about a planned housing complex; or a
presentation by a health department to a
community group about substandard housing
or “bird” flu policies.

PUBLIC CONSULTATION
This kind of public engagement generally includes
instances where local officials ask for the individual
views or recommendations of residents about
public actions and decisions, and where there is
generally little or no discussion to add additional
knowledge and insight and promote an exchange
of viewpoints.

Examples include typical public hearings and
council or board comment periods, as well as
resident surveys and polls. A public meeting that
is mainly focused on asking for “raw” individual
opinions and recommendations about budget
recommendations would fit in this category.

PUBLIC

PARTICIPATION/DELIBERATION
This form of public engagement refers to those
processes through which participants receive
new information on the topic at hand and
through discussion and deliberation jointly
prioritize or agree on ideas and/or
recommendations intended to inform the
decisions of local officials.

Examples include community conversations that
provide information on the budget and the budget
process and ask participants to discuss
community priorities, confront real trade-offs, and
craft their collective recommendations; or the
development of a representative group of
residents who draw on community input and
suggest elements and ideas for a general plan
update.

SUSTAINED PUBLIC PROBLEM

SOLVING
This form of public engagement typically takes
place through the work of place -based
committees or task forces, often with multi -
sector membership, that over an extended
period of time address public problems through
collaborative planning, implementation,
monitoring and/or assessment.

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Why Engage the Public?

BETTER IDENTIFICATION OF THE PUBLIC’S VALUES, IDEAS AND

RECOMMENDATIONS
Elections help identify voter preferences and communication with individual constituents provide additional information to local officials about resident views on various topics. However gaps often remain in understanding the public’s views and preferences on proposed public agency actions and decisions. This can especially be the case for residents or populations that tend to participate less frequently or when simple “pro” or con” views don’t help solve the problem at hand. Good public engagement can provide more nuanced and collective views about an issue by a broader spectrum of residents.

MORE INFORMED RESIDENTS - ABOUT ISSUES AND ABOUT LOCAL AGENCIES Most residents do not regularly follow local policy matters carefully. While a relatively small number do, most community members are not familiar, for instance, with the ins and outs of a local agency budget and budget process, or knowledgeable about planning for a new general plan, open space use or affordable housing. Good public engagement can present opportunities for residents to better understand an issue and its impacts and to see local agency challenges as their challenges as well.

IMPROVED LOCAL AGENCY DECISION - MAKING AND ACTIONS,

WITH BETTER IMPACTS AND OUTCOMES
Members of the public have information about their community’s history and needs. They also have a sense of the kind of place where they and their families want to live. They can add new voices and new ideas to enrich thinking and planning on topics that concern them. This kind of knowledge, integrated appropriately into local decision making, helps ensure that public decisions are optimal for the community and best fit current conditions and needs.

MORE COMMUNITY BUY-IN AND SUPPORT, WITH LESS CONTENTIOUSNESS Public engagement by residents and others can generate more support for the final decisions reached by local decision makers. Put simply, participation helps generate ownership. Involved residents who have helped to shape a proposed policy, project or program will better understand the issue itself and the reasons for the decisions that are made. Good communications about the public’s involvement in a local decision can increase the support of the broader community as well.

MORE CIVIL DISCUSSIONS AND DECISION MAKING
Earlier, informed and facilitated deliberation by residents will frequently offer a better chance for more civil and reasoned conversations and problem solving than public hearings and other less collaborative opportunities for public input.

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What is Public Engagement and Why Should I do it? www.ca-ilg.org | 4

FASTER PROJECT IMPLEMENTATION WITH LESS NEED TO REVISIT AGAIN Making public decisions is one thing; successfully implementing these decisions is often something else altogether. The buy-in discussed above, and the potential for broad agreement on a decision, are important contributors to faster implementation. For instance, a cross section of the community may come together to work on a vision or plan that includes a collective sense of what downtown building height limits should be. If this is adopted by the local agency and guides planning and development over time, the issue will be less likely to reoccur as an issue for the community and for local officials. In general, good public engagement reduces the need for unnecessary decision-making “do-over.”

MORE TRUST - IN EACH OTHER AND IN LOCAL GOVERNMENT
Whatever their differences, people who work together on common problems usually have more appreciation of the problem and of each other. Many forms of public engagement provide opportunity to get behind peoples’ statements and understand the reasons for what they think and say. This helps enhance understanding and respect among the participants. It also inspires confidence that problems can be solved – which promotes more cooperation over time. Whether called social capital, community building, civic pride or good citizenship, such experiences help build stronger communities. Additionally, when a local agency promotes and is a part of these processes - and takes the ideas and recommendations of the public seriously - a greater trust and confidence in local government often results.

HIGHER RATES OF COMMUNITY PARTICIPATION AND LEADERSHIP

DEVELOPMENT
Engaging the public in new ways offers additional opportunities for people to take part in the civic and political life of their community. This may include community members who have traditionally participated less than others. These are avenues for not only contributing to local decisions but for residents to gain knowledge, experience and confidence in the workings of their local government. These are future neighborhood volunteers, civic and community leaders, commissioners and elected officials. In whatever role they choose, these are individuals who will be more prepared and more qualified as informed residents, involved citizens and future leaders.

Generous financial support for this resource was provided by The James Irvine Foundation. All decisions regarding the final content of this publication were made by the Institute for Local Government.

About the Institute for Local Government

This tip sheet is a service of the Institute for Local Government (ILG) whose mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities. ILG is the nonprofit 501(c)(3) research and education af filiate of the League of California Cities, the California State Association of Counties and the California Special Districts Association.

For more information and to access the Institute’s resources on public engagement, visit www.ca-ilg.org/publicengagement.

ATTACHMENT A
Tips for Providing Language
Access Services
Providing Language Access

TIPS FOR LOCAL OFFICIALS
T he California Civil Rights Act
prohibits discrimination by age-
ncies that receive state funds and
requires them to provide equal
access to benefits.

T he Bilingual Services Act
requires local agencies to provide
language access services to
limited English-proficient speakers.

Providing language access in some
circumstances may be the only way
to facilitate public participation in
California’s communities.

Limited English
Proficiency (LEP)
Million
Californians have

6.9 are Spanish
speakers followed by
Chinese, Vietnamese,
Tagalog and Korean.
68% Spanish
Did you know...
!
Connect language access efforts to the
larger mission and goals of the local agency.

Develop policies that clarify your local agency’s
responsibilities for providing bilingual services and
ensure that local officials understand these policies,
responsibilities and existing language access services
and resources.

Partner with community-based organizations
and ethnic media to better identify language access
priorities, ensure accurate and culturally appropriate
interpretation and translation and more fully assess the effectiveness of language access plans.

Translate print and online materials explaining
services into languages spoken by a substantial number
of LEP residents. Minimize the use of bureaucratic or
legal jargon when creating all new documents.

Create web pages that are easy to navigate
and use. Web pages may ease fears of immigrant
residents who may not feel comfortable seeking
services in person.

Encourage local departments to consider using
California Multiple Award Schedules (CMAS)
contracts to obtain bilingual services whenever
cost-effective.

Use bilingual employees effectively and
appropriately. Avoid assumptions about
competence and willingness of bilingual staff to
provide language services.
1 2
3 4
5 6
7 Resources to learn more:

Language Access Laws and Legal Issues A Local Official’s Guide | www.ca-ilg.org/language-access-laws-and-legal-issues
Ten Ideas to Encourage Immigrant Engagement | www.ca-ilg.org/ten-ideas-immigrant-engagement Increasing Outreach | www.ca-ilg.org/increasing-outreach ca-ilg.org

ATTACHMENT A

Shaping the Future Together:

TIERS℠ Framework for Practical Public
Engagement at the Local Level

How Can Your Agency Benefit from
Public Engagement?

Local governments will benefit from
public engagement in the following ways:
 Improved local agency decision
making and actions, with better
impacts and outcomes
 More community buy-in and
support, with less contentiousness
 Better identification of the public’s
values, ideas and recommendations
 More informed residents
 More constructive discussion and
decision making
 Faster project implementation with
less need to revisit again
 More trust in each other and in local
government
 Higher rates of community
participation and leadership
development

The Institute for Local Government (ILG) has developed a framework to support and assist any local government
with planning and executing public engagement efforts.

The Framework consists of five pillars for successful
community engagement: Think, Initiate, Engage, Review
and Shift.

Why TIERS? The TIERS Public Engagement Framework has
been developed in direct response to what we have heard from local elected officials and staff across California. In 2015, ILG conducted a statewide survey and found that 69 percent of respondents said they do not have the
sufficient staff, knowledge and financial resources for public engagement. These findings mirrored the results of a 2013 ILG & Public Agenda survey which found that 69
percent of respondents thought a lack of resources and
staff could stand in the way of a deliberative [public
engagement] approach.

Further, there is a lack of standard best practices for authentic and effective public engagement, which leads to a lack of common understanding of what public
engagement is and how to approach it. The TIERS Public
Engagement Framework and its companion program, the
TIERS Learning Lab, provide a step-by-step approach to
public engagement.

THINK INITIATE ENGAGE REVIEW SHIFT

ATTACHMENT A

THINK INITIATE

Step 1: Self-Assessment
• Public Engagement Project Assessment
• Quick Assessment (1-4 hours)
• Deeper Assessment (8 hours to 6
weeks)
• Template Provided
• Agency Assessment
• Davenport Institute's "How are WE
Doing?" assessment tool

Step 2: Consider Public Engagement
Approach
• Draft Public Engagement Approach for your
Specific Effort
• Template Provided
• Draft Public Engagement Approach for
Agency Wide Application
• Review your agency’s public
engagement policies and practices,
including current staffing
• Conduct an analysis of the public
engagement functions and needs
across your agency

Step 3: Contemplate
Community Landscape
• Create or update a list of local community
based organizations (CBOs) and others to
inform outreach efforts
• Identify diverse locations to hold meetings
with target audiences in mind
• Template Provided

Step 1: Draft Public Engagement Approach
• Choose a mix of in-person and online activities
• Consider the timeline, budget, staff time
implications (your department and other
departments as applicable)
• Who will facilitate events? Who/ how will data
gathered be input, analyzed, summarized?
• What might go wrong? How might your
approach mitigate for challenges?
• Template Provided

Step 2: Develop Outreach Plan
• Create an Outreach Plan
• Consider what you know from your ‘community
landscape’ listing; who you are trying to reach,
how much time and money available
• Template Provided

Step 3: ‘Reality Check‘
• Are there local, state or federal laws or regulations you need to consider?
• Are there internal organizational ‘politics’ or
challenges to take into consideration?
• Are there larger ‘Political’ issues to keep
in mind?
• For example: Is there an upcoming election? A
significant recent incident?

“Society is strongest when we all have a voice.

Engaged communities are often more vibrant
and healthier.”
- The James Irvine Foundation

ATTACHMENT A

ENGAGE REVIEW

Step 1: Implement Outreach Plan
• Implement your plan, prioritizing outreach
• Ensure targeted audiences are represented
(authentically) within your plan
• Double check with local leaders to
ensure authentic voices are reached

Step 2: Implement Public Engagement
Approach
• Execute your plan; ensure roles are clear;
adjust as appropriate
• Template Provided

Step 3: ‘Reality Check’
• Are there internal organizational ‘politics’ or
challenges that have changed and need to
be considered?
• Check in with key community leaders on a
regular basis to understand new or coming
issues; mitigate accordingly

Step 1: Evaluate Public Engagement Approach
• What worked? What could have gone better? See
ILG resources like Rapid Review Worksheets
• Is training needed for any staffers in order to
execute more effectively in the future? (e.g.
facilitation skills; graphic design; survey question
construction; meeting design)

Step 2: Evaluate Outreach Plan
• What worked? What could have gone better?
• Is training needed for any staffers in order to
execute more effectively in the future? (e.g.
challenging people; communications skills; small
group facilitation)
• Are there community leaders with whom the agency
should build stronger ties?

Step 3: What Barriers Did You Overcome?
• What internal organizational barriers did you
overcome?
• What other political barriers did you overcome?

SHIFT

Step 1: Internal Organizational
• Consider beneficial organizational shifts
• For example: public engagement assigned within job description(s); commitment to train electeds and staff in public engagement policy and/or skills; ongoing communication strategies that go beyond traditional methods such as ethnic media
• Send out periodic surveys to understand satisfaction with public engagement related efforts and policies • Ask for help when needed from organizations like ILG, Davenport Institute and/or consultants

Step 2: External |Your Community
• Consider beneficial shifts in external relations
• For example: set and track metrics related to in-person and phone meetings with diverse and underrepresented community members, choose time bound goals; engage with local leadership programs

Step 3: Policy Change
• Consider policy review/ change/ adoption
• Commitment to review public engagement related policies if they have not been systematically reviewed in the last ten years; Adopt a resolution demonstrating commitment to public engagement

ATTACHMENT A

TIERS℠ Public Engagement Learning Lab

About the Institute for Local Government
The Institute for Local Government’s (ILG) mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities. ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties and the California Special Districts Association.

The TIERS Framework was developed with a generous grant from The James Irvine Foundation.

The TIERS Public Engagement Learning Lab is an interactive, results-oriented 6 month program led by ILG that provides participants in California local government with hands-on instructions, exclusive TIERS public engagement tools, individualized support of your public engagement project, follow up private consulting, and peer-to-peer learning.

Program Benefits + Takeaways:
o 1 Reframe your public engagement from a necessary burden to a beneficial and productive process
o 2 Learn new tactics and tools to manage and respond to diverse viewpoints and navigate contentious stakeholders
o 3 Learn how to drive higher turnout for your big events o 4 Gain new ideas and digital strategies to move your public engagement ‘Beyond the Usuals’ and reach new residents and stakeholders
o 5 Increase your organization’s internal buy-in for your public engagement work o 6 Connect with others in your region to share real-world case studies and provide mutual support for successful public engagement work

To learn more about the TIERS Learning Lab and other training opportunities in your region, please contact ILG’s Public Engagement Program at [email protected]

ATTACHMENT A

Beyond the Usuals: Ideas to Encourage Broader Public Engagement in Community Decision Making August 2015 | www.ca-ilg.org | 1

Given the challenges facing cities and counties in California, local officials are increasingly asking residents to participate in public engagement efforts whose outcomes will help shape the future of their communities. These discussions are about land use, budgeting, affordable housing, climate change, transportation, public safety and many other local and regional issues.

However even with the best of intentions to encourage broad participation, local officials often find that only a relatively small number of community members actually take part in public conversations and forums.

A failure to involve a cross-section of residents limits the effectiveness of these public engagement efforts and negatively impacts the breadth and quality of ideas contributed. It can also reduce community support for the final decisions.

Most California communities have diverse populations and some have experienced rapid demographic changes. Residents vary by age, gender, ethnicity, immigrant status and income level. Some own homes and some rent. Community members may be long-time residents or new arrivals. People read and speak English with different degrees of proficiency. Some have disabilities. Individual residents, as well as whole communities, may have more or less experience, confidence, or capacity to participate.

Based on the ideas of many individuals and organizations, and on the experiences of communities throughout California, here are a number of ideas for achieving broader representation in local public engagement efforts.

Beyond the Usuals
Ideas to Encourage Broader Public Engagement
in Community Decision Making

Develop Relationships
Build Participation
Capacity
Fit Your Process
to the Participants
Get Help
Communicate
Respectfully
Be Flexible
Have Specific Goals
Stay in Touch
Say Thank You
Keep Learning

CONTENTS

ATTACHMENT A

Beyond the Usuals: Ideas to Encourage Broader Public Engagement in Community Decision Making August 2015 | www.ca-ilg.org | 2

DEVELOP RELATIONSHIPS
Less engaged communities are often critical of the public engagement process. Developing personal relationships with the community can lead to a more inclusive process and community buy-in.

BUILD COMMUNITY CAPACITY TO PARTICIPATE
Community members have varying degrees of familiarity with local government processes and functions.

Providing educational materials or process at the beginning of the public engagement process will allow more meaningful participation from the broad community.

FIT YOUR PROCESS TO THE PARTICIPANTS
Once you determine the purpose of a public engagement process, think about the range of participants you hope to involve before selecting your approach or process(es) for that involvement. This will help you create opportunities for participation that will be more appropriate and welcoming for participants and reach the diversity community.

GET HELP
Identify and consult community-based and intermediary organizations, including neighborhood and grassroots leadership groups, local clergy, faith-based organizations, community and ethnic media, and others that can as provide two-way conduits for communication between local officials and community residents on specific issues and polices.

COMMUNICATE EFFECTIVELY AND RESPECTFULLY
Stay current with your communities changing demographics, and develop culturally and linguistically appropriate communications material and strategies. Recognize the importance of communicating with residents in their first language to ensure their maximum understanding of issues. As appropriate, promote public engagement through ethnic media and other intermediary organizations that already serve and work with the communities you wish to reach. Plan ahead for translation services. Transportation assistance and childcare (perhaps through respected intermediary organizations) can often be helpful.

BE FLEXIBLE
Hold public meetings or other public engagement processes in community settings that are known and accessible to the communities you wish to reach. Explore what engagement tools and processes will best meet the needs and conditions of specific populations.

HAVE SPECIFIC GOALS
Take the time to create targeted goals for harder to reach communities. In general, encourage attention and learning about inclusive engagement throughout your agency, and include public information officers in these discussions. Individual departments can develop their own outreach plans to reach specific less- engaged communities or populations.

ATTACHMENT A

Beyond the Usuals: Ideas to Encourage Broader Public Engagement in Community Decision Making August 2015 | www.ca-ilg.org | 3

STAY IN TOUCH
As appropriate, keep current lists of organizations and groups concerned about given issues and keep them informed of opportunities to participate.

SAY THANK YOU & FOLLOW-UP
Express your appreciation for those who do become involved. Let participants know how their input was considered and impacted decisions.

KEEP LEARNING
Follow up after specific engagement efforts to determine what worked and what could be improved.

BUILD IT IN
Explore the integration of diverse community voices as a part of your overall strategy to inform and support the goals and programs of local government.

ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties and the California Special Districts Association.

For more information and to access the Institute’s resources on public engagement, visit www.ca-ilg.org/public-engagement.

ATTACHMENT A

Partnering with Community-Based Organizations for More Broad-Based Public Engagement 1

This publication is for local government officials interested in collaborating with local community-based organizations to enhance the breadth and depth of participation by community residents in local decision- making. Interviews with both local officials and community leaders throughout California were used to generate guidance for those who are getting started or want to enhance their relationships with more of their community.

Why Partner?
Many local officials report that the residents they see participating in their public meetings are a narrow slice of the whole community.1 To address this challenge, many local agencies use a strategy of nurturing relationships with community-based organizations (CBO) to better reach and engage a broader cross section of residents. The important benefits they cite from these partnerships include the ability to:

 Extend the agency’s education and outreach capacities so more residents are aware and informed  Balance the most involved advocates with perspectives representing more of the community  Reduce misperceptions and mistrust, and reduce contentiousness  Identify broader community-based resources and recommendations  Develop communication channels for keeping people informed over time  Enhance the cultural competency of engagement plans, and increase the ability to translate issues into relevant questions/framing and accessible language  Reach people emotionally as well as physically

Local government agencies using this approach have learned that being very intentional about the purposes and parameters of their partnerships can make a dramatic difference in their effectiveness.

Types of Community-Based Organizations
All jurisdictions have non-profit organizations committed to improving the quality of life in their community.

Examples include parent-teacher organizations, congregations, sports leagues, adult education programs

1 76 percent of city and county officials say that public meetings are dominated by people with narrow agendas. Testing the Waters, May 2013 report with findings from 900 California local officials, available at: www.ca-ilg.org/research-public- engagement-local-government-decision-making. The link has a companion report of research conducted among 500 leaders of civic organizations.

Partnering with Community-Based
Organizations for More Broad-Based
Public Engagement

ATTACHMENT A

Partnering with Community-Based Organizations for More Broad-Based Public Engagement 1 and service clubs such as Rotary or Kiwanis. These kinds of organizations can complement those that may already participate actively in public meetings, such as the chamber of commerce and neighborhood associations.

Partnerships are often sought as a way to elicit unheard perspectives on how an issue or problem is experienced, which can enhance specific policy directions or recommendations . Some agencies have a practice of sharing lists and information about community-based organizations across departments as a way to leverage past investments in these relationships. Instead of developing a new outreach effort and list for each new issue and decision process, they have a ready cross section of the greater community already oriented to some aspect of local decision making. It is also helpful to investigate and acknowledge existing collaborations and networks between organizations to understand how information flows in the community.

Clarifying Purpose and Alignment
The desired demographic and
geographic audiences are often
the starting point for deciding
which community organization(s)
will be the most effective partners.

It is also important to identify the purpose and what type of public education and public input is desired.

Many officials find this continuum from the International Association for Public Participation (IAP2) a useful way to summarize different types of engagement:

The best way to determine the right fit is by having an exploratory discussion to assess how the group’s focus
matches the audiences, topics and activities the local public agency is contemplating for engagement. If after meeting with a community organization, it turns out that there is not an immediate fit for a partnership, valuable information about that part of the community’s perspective will still have been gained.

At times, it may be important for a period of relationship building, both organizational and personal, to take place before a new partnership is launched. The local agency may financially support some of the staff work or other costs involved in the CBO’s partnership activities. If a grant is sought to help pay for the outreach and engagement efforts, the CBO should be involved in the planning and budgeting for its activities.

Types of Partnerships
Planning departments, health and human service departments, metropolitan planning organizations, public information officers and many other local agency offices are employing CBO partnerships. Frequently, local agency staff have limited time to be present in multiple communities Sample Roles in a Partnership

The Community-Based
Organization: Help get desired
sector(s) of the community to attend
and actively participate in community
conversations, possibly serving as a
co-hosting partner.

The Local Government Agency:

Design public conversations in such a
way that the invited input is
meaningful and will be used in
decision-making.

Together: Ensure that
communications, information and
accommodations support the intended
audience and that outcomes are
shared with the community.

ATTACHMENT A

Partnering with Community-Based Organizations for More Broad-Based Public Engagement 1 often enough to build the kind of rapport that invites engagement, so they connect and partner with a range of CBOs in various ways. Common examples of CBO partner tasks include:

 Expand awareness of upcoming public engagement processes  Co-host public input sessions in locations more familiar to community members  Help agency staff understand the community’s current level of understanding about an issue so materials can provide helpful background context
 Help adapt information about the issue into language and a format that make sense to nontechnical experts and people with varying levels of education  Translate information and provide bilingual facilitation if appropriate  Recruit attendees and provide any needed support such as transportation and child care  Help with reporting back to the community about how their input was used in the final decision and ways that they can stay involved and informed

Depending on the extent of the work involved, many agencies provide some kind of compensation to the community organization for their efforts. Sometimes a local community foundation or other funder may help underwrite such costs.

Creating the Right Conditions
When forming a working partnership, as with developing any relationship, no single “formula” exists for developing effective plans, communications and trust. Instead, both local officials and community leaders shared that the following conditions were an important starting point:

 There is adequate advance dialogue between the agency and the CBO to determine the mutual interests of the partnership. The desired community engagement needs to be positioned so that it aligns with the community organization’s as well the local agency’s priorities.  The local government agency’s decision-makers are on board and committed to the intended outcome of the partnership. They are making an authentic request for community input that will be seriously considered in the decision-making process.
 The partnership is based on mutual respect for what each party brings. For example, the CBO can provide insight into which attitudinal barriers different sectors of the community may have about interacting with local government. If there is a history of mistrust, it helps to bring it out in the open.  The local agency and CBO(s) have clearly defined roles and expectations for each other.  The agency is prepared to support the information and communication needs of the br oader cross section of the public who tend to know far less than more experienced advocates and local government enthusiasts.

Local officials’ experience suggests that the most effective partnerships were used for the whole decision - making cycle: the front-end public introduction of the issue, the community input and dialogue, and the reporting out of how public input was used in the final decision. Another helpful practice when entering into the relationship with the CBO is to set up periodic checkpoints to review milestones and correct “ Are you thinking about these community groups as constituents to be managed or placated — or as genuine partners collaborating with you on a shared goal of expanding participation?” — City official

ATTACHMENT A

Partnering with Community-Based Organizations for More Broad-Based Public Engagement 1 course on the outreach as needed. Include an explicit debrief of what worked well and what can be improved for the next time. In summary, local officials and CBO leaders should honestly share their respective goals and needs and then work out a mutually accepted plan for tasks and task completion, for meetings and other communications, for CBO partner compensation (where appropriate), for how decisions will be made in relationship to shared work, and whether and how they plan to assess the work done once completed.

Navigating Around Common Pitfalls
Partnerships tend to work well if they are based on mutual goals, clear communication and trusting relationships. But many times the partnership between a local agency and community-based organizations hits trouble spots. Here are some of the most commonly reported pitfalls and helpful practices to enhance the likelihood of success.

Common Pitfalls Helpful Practices
Treating the CBO as a “supplier” for one-way
communication to the community, especially to
enlist support for an existing recommendation.

Develop processes for two-way communications
about mutually defined concerns — without
assuming what the final policy recommendation will
be.

Unrealistic expectations for the CBO partner — not
enough time or resources allocated for robust
engagement.

Start early, establish shared understanding about
what is feasible, and consider using a network of
multiple CBOs.

Selecting organizations that already have a fixed
point of view that limits discovery of common
ground.

Look beyond the most visible groups engaged in
public dialogue, and find those interested in general
quality of life in the community.

The recruitment worked but the meeting process
and/or information did not match the audience.

Partner with the CBOs to develop materials and
questions that make sense to the broader
community.

There is a perception that decision-makers do not
treat the new community voices brought in through
the partnership with equal respect.

Involve decision-makers in the goals for the
community engagement and what kinds of input
they will be receiving and can listen for.

Partnership agreement is too vague. It’s unclear
who has responsibility for which part of the
process.

Create an explicit set of responsibilities for the CBO
and the local public agency, and revisit as needed.

The community feels “used” spending time
providing input with no information about outcome.

Explain decisions and next steps. Continue to
invest in opportunities for two-way communication.
“ I get a call asking: ‘Can you get 50 parents to the meeting?’ First I want to talk about what people in the community care about.” — Leader of a large nonprofit organization

ATTACHMENT A

Partnering with Community-Based Organizations for More Broad-Based Public Engagement 1

Busy local officials are often encouraged to focus their activities on concrete short-term deliverables wit h high likelihood for success. Because it takes time to nurture and sustain partnerships with community organizations, some tend to make this practice a lower priority. Others may have had past experiences where some aspects of the partnership worked well but other aspects did not, and they are reluctant to re-engage in something that was not an unqualified success. However, elected local officials and staff may choose to recognize the longer-term value of such partnerships and the more informed, inclusive decision-making — and public trust — that can result from these efforts. They can embrace a learning- oriented mindset and work with community partners to reflect on and improve public engagement processes.

Resources to Learn More

Why Engage the Public? - www.ca-ilg.org/document/why-engage-public

Beyond the Usuals - www.ca-ilg.org/BeyondUsuals

Expand Your Community Connections - www.ca-ilg.org/expanding-your-agencys-community-networks

Planning Public Engagement: Key Questions for Local Officials - www.cailg.org/PublicEngagementKeyQuestions

Clergy and Congregations - www.ca-ilg.org/document/local-officials-guide-working-clergy-and-congregations

Immigrant Engagement Guide - www.ca-ilg.org/local-officials-guide-immigrant-civic-engagement

For more information and to access the Institute’s resources on public engagement, visit www.ca-ilg.org/public-engagement.

ATTACHMENT A

Expand Your Agency’s Community Connections www.ca-ilg.org | 1

Many public officials have a wide variety of
relationships in their communities, often related
to specific projects and initiatives. Examples
include interactions with schools, groups serving
specific populations, business associations, faith-
based organizations and more. Yet these groups
and networks may not come to mind when an
agency is planning and announcing public
meetings.

Use the following list to identify different partners,
network contacts and “key connectors” in your
agency’s jurisdiction. The next time the agency
wants to reach out beyond the small slice of the
public that most frequently attends public
meetings, consider reaching out to the community
through some of the types of organizations listed
here. Add these contacts to the agency’s
outreach list, so this wider range of contacts is
ready whenever needed.

Groups Close to Local Government Decision-Making and Operations

 Board and commission members in the jurisdiction

 Past and present members of community task forces and working groups

 Public agency-sponsored citizen academies and resident leadership programs

 Local multi-sector leadership groups and business roundtables

 Advocates and service providers whose work relates to the issue under review

Expand Your Agency’s
Community Connections
Community Groups
& Networks
Boards
& Commissions
Elected
Officials & Staff
Connecting with Your Community

ATTACHMENT A

Expand Your Agency’s Community Connections www.ca-ilg.org | 2 Networks Where Community Members Affiliate by Interest

 Parent-teacher associations/
organizations, school support
organizations
 Youth: groups not tied to schools (Boys’
and Girls’ Clubs, youth sports leagues,
scouts, YMCA, youth centers, etc.); parent
groups/mother’s clubs
 Business: chambers of commerce, ethnic
chambers; small business associations
and incubators
 Labor associations
 Community-oriented and ethnic media
 Internet-based groups and blogs
 Neighborhood organizations and
homeowners’ associations
 Civic membership groups: Rotary, Elks,
Kiwanis, etc.
 Friends of the Library
 Good government groups, League of
Women Voters
 Adult education: community colleges,
adult schools, English as a second
language programs
 Safety: Community Emergency Response
Teams (CERT), Neighborhood Watch
 Community health and wellness groups
 Sports leagues
 Seniors’ groups
 Early childhood groups: First 5
Commission, child care councils
 Social equity/social justice
 Environmental groups and outdoor
recreation
 Arts groups: music, visual, dance, theater,
ethnic culture

About the Institute for Local Government
This resource is a service of the Institute for Local Government (ILG) whose mission is to promote good government at the local level with practical, impartial and easy-to-use resources for California communities. ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities, the California State Association of Counties, and the California Special Districts Association.

ATTACHMENT A
AB 1661 Sexual Harassment Training

ATTACHMENT A

U.S. Equal Employment Opportunity Commission

FACT SHEET

FIND THIS ARTICLE ON THE WEB AT: SEE ALSO:

Facts About Sexual Harassment FSE/4 Filing a Charge of Discrimination http://www.eeoc.gov/facts/fs-sex.html http://www.eeoc.gov/employees/charge.cfm

This document was last modified on December 14, 2009. FSE/4 Page 1

Sexual Harassment

Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. Title VII applies to employers with 15 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government.

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment.

Sexual harassment can occur in a variety of circumstances, including but not limited to the following:
The victim as well as the harasser may be a woman or a man. The victim does not have to be of the opposite sex.
The harasser can be the victim's supervisor, an agent of the employer, a supervisor in another area, a co-worker, or a non-employee.
The victim does not have to be the person harassed but could be anyone affected by the offensive conduct.
Unlawful sexual harassment may occur without economic injury to or discharge of the victim. The harasser's conduct must be unwelcome.

It is helpful for the victim to inform the harasser directly that the conduct is unwelcome and must stop. The victim should use any employer complaint mechanism or grievance system available.

When investigating allegations of sexual harassment, EEOC looks at the whole record: the circumstances, such as the nature of the sexual advances, and the context in which the alleged incidents occurred. A determination on the allegations is made from the facts on a case-by-case basis.

Prevention is the best tool to eliminate sexual harassment in the workplace. Employers are encouraged to take steps necessary to prevent sexual harassment from occurring. They should clearly communicate to employees that sexual harassment will not be tolerated. They can do so by providing sexual harassment training to their employees and by establishing an effective complaint or grievance process and taking immediate and appropriate action when an employee complains.

It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on sex or for filing a discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under Title VII.

ATTACHMENT A

TRANSGENDER

RIGHTS IN THE

WORKPLACE

TRANSGENDER

RIGHTS IN THE

WORKPLACE
WHAT DOES “TRANSGENDER” MEAN?
Transgender is a term used to describe people whose
gender identity differs from the sex they were assigned at birth. Gender expression is defined by the law to mean a “person’s gender-related appearance and behavior
whether or not stereotypically associated with the
person’s assigned sex at birth.” Gender identity and
gender expression are protected characteristics under
the Fair Employment and Housing Act. That means that
employers may not discriminate against someone
because they identify as transgender or gender
non-conforming. This includes the perception that
someone is transgender or gender non-conforming.

WHAT IS A GENDER TRANSITION?

1.“Social transition” involves a process of socially
aligning one’s gender with the internal sense of self (e.g., changes in name and pronoun, bathroom facility usage,
participation in activities like sports teams).

2. “Physical transition” refers to medical treatments an individual may undergo to physically align their body with internal sense of self (e.g., hormone therapies or
surg
ical procedures).

A person does not need to complete any particular step
in a gender transition in order to be protected by the law. An employer may not condition its treatment or
accommodation of a transitioning employee upon
completion of a particular step in a gender transition.

FAQ FOR EMPLOYERS
• What is an employer allowed to ask?
Employers may ask about an employee’s employment
history, and may ask for personal references, in addition to other non-discriminatory questions. An interviewer
should not ask questions designed to detect a person’s
gender identity, including asking about their marital
status, spouse’s name, or relation of household
members to one another. Employers should not ask
questions about a person’s body or whether they plan to have surgery.
• How do employers implement dress codes
and grooming standards?
An employer who requires a dress code must enforce it in a non-discriminatory manner. This means that, unless an employer can demonstrate business necessity, each
employee must be allowed to dress in accordance with
their gender identity and gender expression.

Transgender or gender non-conforming employees may
not be held to any different standard of dress or
grooming than any other employee.
• What are the obligations of employers when it
comes to bathrooms, showers, and locker rooms?
All employees have a right to safe and appropriate restroom and locker room facilities. This includes the right to use a restroom or locker room that corresponds to the employee’s gender identity, regardless of the employee’s assigned sex at birth. In addition, where possible, an employer should provide an easily accessible unisex single stall bathroom for use by any employee who desires increased privacy,
regardless of the underlying reason. Use of a unisex single stall restroom should always be a matter of choice. No
employee should be forced to use one either as a matter of policy or due to harassment in a gender-appropriate facility.

Unless exempted by other provisions of state law, all
single-user toilet facilities in any business establishment, place of public accommodation, or state or local government agency must be identified as all-gender toilet facilities.

FILING A COMPLAINT
If you believe you are a victim of discrimination you may, within three years* of the discrimination, file a complaint of discrimination by contacting DFEH.

To schedule an appointment, contact the Communication
Center below.

If you have a disability that requires a reasonable
accommodation, the DFEH can assist you by scribing your intake by phone or, for individuals who are Deaf or Hard of Hearing or have speech disabilities, through the California Relay Service (711), or you can contact us below.

CONTACT US
Toll Free: (800) 884-1684
TTY: (800) 700-2320
[email protected]
www.dfeh.ca.gov
* Effective 1/1/2020. DFEH-E04P-ENG / December 2019

ATTACHMENT A
U.S. Equal Employment Opportunity Commission
Preventing Discrimination is Good BusinessPreventing Discrimination is Good Business Preventing discrimination makes good business sense. Complying with the law may increase employee productivity, retention, and morale and limit legal expenses. You may even be entitled to tax benefits for hiring individuals with disabilities or making your business accessible to individuals with disabilities! See http:// www.eeoc.gov/eeoc/publications/adahandbook.cfm#appendixa for more information.

The EEOC can help small business owners! The EEOC is the federal government agency that enforces the federal laws against employment discrimination based on race, color, religion, sex, national origin, disability, age, and genetic information. These laws also prohibit retaliation (punishment) for opposing or reporting discrimination or participating in a discrimination investigation or lawsuit.

How We Can Help
▪ We can answer your questions about the laws
we enforce.
▪ We can provide suggestions to help you prevent
harassment, retaliation, and other forms of
unlawful discrimination.
▪ We can train you and your employees about
workplace rights and responsibilities.
▪ We can help you resolve EEOC charges
(complaints) of discrimination through mediation.

EEOC mediation is a free, informal, confidential pro-
cess to resolve disputes that may save you time and
money.

Your Responsibilities
▪ Ensure that employment decisions are not
based on race, color, religion, sex, national
origin, disability, age, or genetic information.
▪ Ensure that work policies and practices are re-
lated to the job and do not disproportionately
exclude people of a particular race, color,
religion, sex, national origin, disability, or age.
▪ Ensure that employees are not harassed
because of race, color, religion, sex, national
origin, disability, age, or genetic information.
▪ Provide equal pay to male and female
employees who perform the same work, unless
you can justify a pay difference under the law.
▪ Respond promptly and adequately to
discrimination complaints. Stop, address, and
prevent harassment and discrimination. Ensure
that employees are not punished for complaining.
▪ Provide reasonable accommodations (changes
to the way things are normally done at work,
such as permitting a schedule change so an
employee can attend a doctor’s appointment
or can observe a religious holiday) to applicants
and employees who need them for medical or
religious reasons, if required by law.
▪ Display a poster that describes the federal
employment discrimination laws. (Download one
for free at
http://www1.eeoc.gov/employers/
poster.cfm).
▪ Keep any employment records (such as
applications or personnel records) as required
by law.

You may have additional responsibilities under
federal, state, or local laws.

Contact Us!
EEOC staff across the country are available to
help you. Don’t wait; contact us today!
Free language assistance is available, if needed.
▪ Need EEOC information or training?
Contact your local EEOC Small Business Liaison
(http://www.eeoc.gov/employers/contacts.cfm) or
call us at 1-800-669-4000 (TTY: 1-800-669-6820).
▪ Need information about the laws we enforce?
Call us at (202) 663-4691.
▪ Have questions about an EEOC charge of
discrimination against your business?
Contact the EEOC investigator assigned to your
charge.

We look forward to hearing from you!
For additional information, contact your local EEOC Small Business Liaison (http://www.eeoc.gov/employers/ contacts.cfm).

ATTACHMENT A
Equal Employment Opportunity is

THE LAW
Private Employers, State and Local Governments, Educational Institutions, Employment Agencies and Labor Organizations

Applicants to and employees of most private employers, state and local governments, educational institutions, employment agencies and labor organizations are protected under Federal law from discrimination on the following bases:

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN
Title VII of the Civil Rights Act of 1964, as amended, protects applicants and employees from discrimination in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment, on the basis of race, color, religion, sex (including pregnancy), or national origin. Religious discrimination includes failing to reasonably accommodate an employee’s religious practices where the accommodation does not impose undue hardship.

DISABILITY
Title I and Title V of the Americans with Disabilities Act of 1990, as amended, protect qualified individuals from discrimination on the basis of disability in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. Disability discrimination includes not making reasonable accommodation to the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, barring undue hardship.

AGE
The Age Discrimination in Employment Act of 1967, as amended, protects applicants and employees 40 years of age or older from discrimination based on age in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment.

SEX (WAGES)
In addition to sex discrimination prohibited by Title VII of the Civil Rights Act, as amended, the Equal Pay Act of 1963, as amended, prohibits sex discrimination in the payment of wages to women and men performing substantially equal work, in jobs that require equal skill, effort, and responsibility, under similar working conditions, in the same establishment.

ATTACHMENT A

GENETICS
Title II of the Genetic Information Nondiscrimination Act of 2008 protects applicants and employees from discrimination based on genetic information in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. GINA also restricts employers’ acquisition of genetic information and strictly limits disclosure of genetic information. Genetic information includes information about genetic tests of applicants, employees, or their family members; the manifestation of diseases or disorders in family members (family medical history); and requests for or receipt of genetic services by applicants, employees, or their family members.

RETALIATION
All of these Federal laws prohibit covered entities from retaliating against a person who files a charge of discrimination, participates in a discrimination proceeding, or otherwise opposes an unlawful employment practice.

WHAT TO DO IF YOU BELIEVE DISCRIMINATION HAS OCCURRED
There are strict time limits for filing charges of employment discrimination. To preserve the ability of EEOC to act on your behalf and to protect your right to file a private lawsuit, should you ultimately need to, you should contact EEOC promptly when discrimination is suspected: The U.S. Equal Employment Opportunity Commission (EEOC), 1-800-669-4000 (toll-free) or 1-800-669-6820 (toll-free TTY number for individuals with hearing impairments). EEOC field office information is available at www.eeoc.gov or in most telephone directories in the U.S. Government or Federal Government section. Additional information about EEOC, including information about charge filing, is available at www.eeoc.gov.

Employers Holding Federal Contracts or Subcontracts
Applicants to and employees of companies with a Federal government contract or subcontract are protected under Federal law from discrimination on the following bases:

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN
Executive Order 11246, as amended, prohibits job discrimination on the basis of race, color, religion, sex or national origin, and requires affirmative action to ensure equality of opportunity in all aspects of employment.

INDIVIDUALS WITH DISABILITIES
Section 503 of the Rehabilitation Act of 1973, as amended, protects qualified individuals from discrimination on the basis of disability in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. Disability discrimination includes not making reasonable accommodation to the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, barring undue hardship. Section 503 also requires that Federal contractors take affirmative action to employ and advance in employment qualified individuals with disabilities at all levels of employment, including the executive level.

ATTACHMENT A

DISABLED, RECENTLY SEPARATED, OTHER PROTECTED, AND ARMED FORCES SERVICE

MEDAL VETERANS
The Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212, prohibits job discrimination and requires affirmative action to employ and advance in employment disabled veterans, recently separated veterans (within three years of discharge or release from active duty), other protected veterans (veterans who served during a war or in a campaign or expedition for which a campaign badge has been authorized), and Armed Forces service medal veterans (veterans who, while on active duty, participated in a U.S. military operation for which an Armed Forces service medal was awarded).

RETALIATION
Retaliation is prohibited against a person who files a complaint of discrimination, participates in an OFCCP proceeding, or otherwise opposes discrimination under these Federal laws.

Any person who believes a contractor has violated its nondiscrimination or affirmative action obligations under the authorities above should contact immediately:

The Office of Federal Contract Compliance Programs (OFCCP), U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210, 1-800-397-6251 (toll-free) or (202) 693-1337 (TTY). OFCCP may also be contacted by e-mail at [email protected], or by calling an OFCCP regional or district office, listed in most telephone directories under U.S. Government, Department of Labor.

Programs or Activities Receiving Federal Financial Assistance

RACE, COLOR, NATIONAL ORIGIN, SEX
In addition to the protections of Title VII of the Civil Rights Act of 1964, as amended, Title VI of the Civil Rights Act of 1964, as amended, prohibits discrimination on the basis of race, color or national origin in programs or activities receiving Federal financial assistance. Employment discrimination is covered by Title VI if the primary objective of the financial assistance is provision of employment, or where employment discrimination causes or may cause discrimination in providing services under such programs. Title IX of the Education Amendments of 1972 prohibits employment discrimination on the basis of sex in educational programs or activities which receive Federal financial assistance.

INDIVIDUALS WITH DISABILITIES
Section 504 of the Rehabilitation Act of 1973, as amended, prohibits employment discrimination on the basis of disability in any program or activity which receives Federal financial assistance. Discrimination is prohibited in all aspects of employment against persons with disabilities who, with or without reasonable accommodation, can perform the essential functions of the job.

If you believe you have been discriminated against in a program of any institution which receives Federal financial assistance, you should immediately contact the Federal agency providing such assistance.

EEOC 9/02 and OFCCP 8/08 Versions Useable With 11/09 Supplement EEOC-P/E-1 (Revised 11/09)

ATTACHMENT A
AB 1234 Ethics Training

ATTACHMENT A
Ethics Law Principles
for Public Servants:

KEY THINGS TO KNOW
Note that the following are not statements of law, but rather principles the law is designed to achieve. The goal in providing this list is to identify the kinds of issues addressed by public service ethics laws. If an issue arises for you under these principles, public officials should consult agency counsel.

Personal Financial Gain
Generally speaking, public officials:
• Cannot request, receive or agree to receive
anything of value or other advantages in exchange
for a decision.
• Must disclose their financial interests to the public. • Must disqualify themselves from participating in
decisions that may affect (positively or negatively)
their financial interests.
• Cannot have a financial interest in a contract made
by their agency.
• Cannot be involved in agency decisions affecting
a potential future employer once the official and
employer each have expressed an interest in a
professional relationship.
• Cannot lobby their agency for pay for a year
following their departure from the agency.

Perk Issues: Including
Compensation, Use of Public
Resources and Gifts
Generally speaking, public officials:
• Receive limited compensation for their service to
the public.
• Cannot receive compensation for speaking, writing
an article or attending a conference.
• May be reimbursed for only those active and
necessary expenses allowed in agency expense
reimbursement policies.
• Cannot use public agency resources (money, travel
expenses, staff time and agency equipment) for
personal or political supplies or purposes.
• Cannot send or be featured in mass mailings at
public expense.
• Cannot make gifts of public resources or funds.
• Must disclose gifts they receive from each single
source that has given gifts worth $50 or more in a
single calendar year.
• May not receive gifts worth a total of $500 (2019-
20 amount) from a single source in a single
calendar year. Note: this amount changes every
two years.

Institute for Local Government | www.ca-ilg.org

ATTACHMENT A
• May only accept free trips and travel expenses under
limited circumstances.
• May not accept free or discounted transportation from transportation companies.
• May not use campaign funds for personal benefits not
directly related to a political, legislative, or governmental purpose.

Transparency
Generally speaking, public officials must:
• Disclose their economic interests when they take office, annually while they are in office and when they leave
office. These economic interests can include: sources of income, property ownership, investments, certain family members’ interests, business interests, loans, contracts and gifts received.
• Disclose information about who has agreed to donate
significant resources ($5,000 or more) to legislative,
governmental or charitable purposes at an elected
official’s request.
• Disclose campaign contributions and abide by
applicable limits.
• Conduct the public’s business in open and publicized
meetings, except for the limited circumstances when the law allows closed sessions.
• Allow the public to participate in meetings, and listen to the public’s views before making decisions.
• Allow public inspection of documents and records
generated, owned, used, or retained by public agencies, except when non-disclosure is specifically authorized
by law.
• Disclose gifts given to the public agency and how they are ultimately used.

Fair Process and Merit-Based
Decision-Making
Generally speaking, public officials:
• Cannot receive loans from other staff, officials or
contractors, and must disclose and comply with
certain requirements for loans from others.
• Cannot engage in vote-trading.
• Have a responsibility to ensure fair and competitive
agency contracting processes.
• Cannot participate in quasi-judicial proceedings in
which they have a strong bias with respect to the
parties or facts.
• Must conduct public hearings in accordance with fair
process principles.
• Cannot participate in decisions that will benefit their immediate family (spouse/domestic partner and
dependent children).
• Cannot simultaneously hold certain other public
offices or engage in other outside activities that
would subject them to conflicting loyalties.
• Cannot participate in entitlement proceedings—
such as proceedings regarding land use permits—
involving campaign contributors (does not apply to
elected bodies).
• Cannot solicit campaign contributions of more than
$250 from permit applicants while an application
is pending and for three months after a decision (if
sitting on an appointed body).
• Cannot directly solicit agency employees for political support or donations for their political causes.
• Cannot retaliate against whistle-blowers who report
improper government activities.

Ethics Law Principles for Public Servants: KEY THINGS TO KNOW Institute for Local Government | www.ca-ilg.org

ATTACHMENT A
A Public Official’s Conflict of Interest Checklist

KEY CONCEPTS
A public agency’s decision should be based solely on
what best serves the public’s interests.

The law is aimed at the perception, as well as the
reality, that a public official’s personal interests may influence a decision. Even the temptation to act in one’s own interest could lead to disqualification, or worse.

Having a conflict of interest does not imply that a public official has done anything wrong; it just means that the official has financial or other disqualifying interests.

Violating the conflict of interest laws could lead to
monetary fines and criminal penalties for public
officials, and may lead to proceedings to remove the
official from office. Don’t take that risk.

BASIC RULE
A public official may not participate in a decision —
including trying to influence a decision — if the official has financial or, in some cases, other strong personal
interests in that decision. When an official has an interest in a contract, the official’s agency may be prevented from even making the contract.

WHEN TO SEEK ADVICE FROM

AGENCY COUNSEL
The rules are very complex. A public official should talk with agency counsel early and often and when an action
by the public agency may affect (positively or negatively) any of the following:

Income. Any source of income of $500 or more
(including promised income) during the prior 12 months
to the official or official’s spouse/domestic partner.

Immediate Family. The official’s spouse/domestic
partner and dependent children.

Business Management or Employment. An entity for
which the official serves as a director, officer, partner, trustee, employee or manager.

Real Property. A direct or indirect interest in real
property of $2,000 or more that the official or official’s immediate family has, including such interests as
ownership, leaseholds (but not month-to-month
tenancies) and options to purchase.

Gift Giver. A giver of one or more gifts worth a total of $500 (2019-20 amount) or more to the official in the
prior 12 months, including promised gifts.

Lender/Guarantor. A source or guarantor of a loan to
the official.

Personal Finances. The official or official’s immediate family’s personal expenses, income, assets or liabilities.

Contract. A contract that the agency is considering
entering into, in which the official or a member of the official’s immediate family may have an interest (direct or indirect).

Business Investment. An interest in a business that
the official or the official’s immediate family have a
direct or indirect investment worth $2,000 or more.

Related Business Entity. An interest in a business that is the parent, subsidiary, or is otherwise related to a business in which the official:
• Has a direct or indirect investment worth $2,000 or
more; or
• Is a director, officer, partner, trustee, employee or manager.

Business Entity Owning Property. Real property
owned by a business entity or trust of the official.

Campaign Contributor. A campaign contributor of the
official (applies to appointed decision-making bodies
only).

Other Personal Interests and Biases. The official
has important, but non-financial, personal interests
or biases (positive or negative) about the facts or the parties that could cast doubt on the official’s ability to make a fair decision.

WHAT WILL HAPPEN NEXT?
Agency counsel will advise the official whether 1)
the official may participate in the decision and, 2) if a contract is involved, whether the agency can enter into the contract at all. Counsel may suggest asking either
the Fair Political Practices Commission or the California Attorney General’s Office regarding their opinion about the political conflict.

EVEN IF IT’S LEGAL, IS IT ETHICAL?
The law sets only minimum standards. Officials should
ask themselves whether members of the public will
question whether the officials are acting solely in the public’s interest. If even a perceived conflict exists, officials should consider excusing themselves voluntarily from that particular decision-making process.

Institute for Local Government | www.ca-ilg.org

ATTACHMENT A
Beyond the Law:

Ethics and Values
• Ethics is what one ought to do in a given situation.

It’s the kind of conduct that would make the world a
better place if everyone engaged in it.
• The law provides only minimum standards for ethical
conduct. Just because a course of action is legal
doesn’t mean it is right.
• What one ought to do is typically tied to a series
of values:
» Trustworthiness
» Respect
» Responsibility
» Compassion
» Loyalty
» Fairness
ILG developed a Good Governance Checklist to
help local officials identify ways they can go above
and beyond legal requirements to promote public
trust and confidence. To access the checklist visit:
www.ca-ilg.org/goodgovernance.

AB 1234 Trainings
California law requires local officials to periodically receive training on public service ethics laws and
principles (AB 1234). ILG offers trainings and self-test options to help local officials comply with this law.

ILG offers two, one-hour self-study exercises as an
option for local officials to satisfy AB 1234 requirements.

The self-study materials can also be used to make up
for time missed at in-person sessions if the official either arrived late or left early. Find out more at:
www.ca-ilg.org/ab1234selfstudy.

ILG can also come to your community to train
your local officials and staff. Contact ILG at
[email protected] for more information
on how to schedule an ethics workshop.

The Institute is grateful to the following firms for
making this document possible in 2019:

Aleshire & Wynder, LLP
Best Best & Krieger
Burke Williams & Sorensen, LLP
Hanson Bridgett LLP
Liebert Cassidy Whitmore
Renne Public Law Group
Richards, Watson & Gershon
The Institute for Local Government is the nonprofit
training and education affiliate of the League of
California Cities, the California State Association
of Counties and the California Special Districts
Association.

Its mission is to promote good government
at the local level.

The Institute’s current program areas include:
• Leadership and Governance
• Public Engagement
• Sustainable Communities
• Workforce and Civics Education
© 2019 by The Institute for Local Government
All rights reserved.
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208 • www.ca-ilg.org
Hard copies available for purchase.

Ethics Law Principles for Public Servants: KEY THINGS TO KNOW

ATTACHMENT A
Understanding the Basics of

ATTACHMENT A
The Institute’s current program areas include:
»
Sustainable C
ommunities
»
P
ublic Engagement
»
Ethics and T
ransparency
»
L
ocal Government Basics
»
C
ollaboration and Partnerships
The Institute is grateful to the following firms for
their commitment to public service ethics:

Aleshire & Wynder LLP
Best Best & Krieger LLP
Burke Williams & Sorensen, LLP
Hanson Bridgett
Liebert Cassidy Whitmore
Meyers Nave Riback Silver & Wilson, PLC
Murphy Austin Adams Schoenfeld LLP
Richards Watson & Gershon
Renne Sloan Holtzman Sakai LLP
Special thanks to the following individuals whose
time and effort contributed to this publication:

Jeff Ballinger, Partner, Best Best and & Krieger
Ruben Duran, Partner, Best Best & Krieger
Martin Gonzalez, Executive Director,
Institute for Local Government
Amit Katzir, Associate, Liebert Cassidy Whitmore
Michael Martello,
Institute for Local Government Volunteer
Colin Roberts, JD, Institute for Local Government
Alysha Stein-Manes, Associate, Liebert Cassidy Whitmore Scott Tiedemann, Managing Partner,
Liebert Cassidy Whitmore
Gary Winuk, Managing Attorney, Kaufman Legal Group
All final decisions about the content, tone and
formatting of this publication were made by the
Institute for Local Government.

Understanding the Basics of Public Service Ethics
© 2016 by the Institute for Local Government
1400 K Street, Suite 205
Sacramento, CA 95814
(916) 658-8208 www.ca-ilg.org
The Institute for Local Government is the nonprofit research affiliate of the League of California Cities, the California State Association of Counties, and the California Special Districts Association. Its mission is to promote good government at the local level.

ATTACHMENT A
Understanding the Basics of
Public Service Ethics Laws

CONTENTS
Chapter 1: Introduction 1
What Is an Ethics Law? ....................................................................................................................................................1 Under
standing California Ethics Laws
.........................................................................................................................2 T
he Key Laws to Know

..................................................................................................................................................... 3 Laws as Minimum Standards

......................................................................................................................................... 3 The Limits of this Information

........................................................................................................................................4 Endnotes

............................................................................................................................................................................4

ATTACHMENT A
Chapter 2: Personal Financial Gain Laws 5
Receiving Special Favors or Money for Official Actions ...........................................................................................8 Basic Rules

.................................................................................................................................................................8 Penalties

................................................... 11
Basic Rules

.............................................................................. 13 Identifying Economic Issues

......................................................................................................................................... 15 What Kinds of Economic Interests Are a Concern?

....................................................................................... 15 Real Property Interests

......................................................................................................................................... 16 The “Public Generally” Analysis

......................................................................................................................... 17 What Happens if an Official is Disqualified?

................................................................................................... 18 General Rule

..................................................................................................................................................... 18 Effect of Disqualification
............................................................................................................................... 18 P
enalties

ATTACHMENT A
Interests in Agency Contracts Barred ....................................................................................................................... 20 Basic Rules

............................................................................................. 21 Exceptions to Rules

................................................................................................................................................22 Non-Interest Exception
..................................................................................................................................22 R
emote Interest Exception

...........................................................................................................................22 Limited Rule of Necessity
.....................................................................................................................................23 P
enalties

...................................................................................................................................................................23 Criminal Penalties
...........................................................................................................................................23 Eff
ect on Contract
...........................................................................................................................................23 Emplo
yment-Related Restrictions
...............................................................................................................................24 Basic Rules

...............................................................................................................................................................24 Penalties

ATTACHMENT A
Chapter 3: Perk Issues, Including Compensation, 2 7
Use of Public Resources, and Gift Laws

Compensation Issues .................................................................................................................................................... 29 Basic Rules

.............................................................................................................................................................. 29 Counties

.................................................................................................................................................................. 29 Special Districts

.................................................................................................................................................... 29 Cities

......................................................................................................................................................................... 31 Charter Cities

................................................................................................................................................... 31 General Law Cities
.......................................................................................................................................... 31 L
ocal Agency Chief Executives and Staff

.........................................................................................................32 Special Issue: Speaking and Other Fees

............................................................................................................33 Basic No-Honoraria Rule
..............................................................................................................................33 Ex
ceptions to No-Honoraria Rules

..............................................................................................................33 Penalties

...................................................................................................................................................................33 Reimbursement of Expenses

....................................................................................................................................... 34 Basic Rules

.............................................................................................................................................................. 34 When May Expenses Be Reimbursed?

...................................................................................................... 34 Process Requirements
................................................................................................................................... 34 Amounts

........................................................................................................................................................... 34 Penalties

...................................................................................................................................................................35 California Law Penalties
................................................................................................................................35 F
ederal Law Penalties
.....................................................................................................................................35

ATTACHMENT A
Restrictions on Use of Public Resources ....................................................................................................................36 Basic Rules

.....................................................................................36 No Use of Public Resources on Ballot Measure Related Activities

.......................................................36 Prohibition Against Mass Mailings at Public Expense

............................................................................36 Penalties

...................................................................................................................................................................37 Gifts to Public Officials

..................................................................................................................................................38 Basic Rules

.........................................................................38 Exceptions/Gifts Subject to Special Rules

........................................................................................................39 Special Rules Relating to Who Receives the Gift

......................................................................................39 Gifts Subject to Special Valuation Rules

....................................................................................................39 Special Rules for Certain Sources of Gifts..................................................................................................39 Gestures that Are Part of An Exchange

......................................................................................................39 Additional Special Rules Based on T ype of Gift

........................................................................................39 Gifts can be:

......................................................................................................................................................39 What to Do About Unwanted Gifts?

................................................................................................................40 Penalties

................................................................................................................................................................... 41 California Law Penalties
................................................................................................................................. 41 F
ederal Law Penalties
..................................................................................................................................... 41 Inc
ome T ax Violations

........................................................................................................................................... 41 Use of Campaign Funds

................................................................................................................................................ 42 Basic Rule

................................................................................................................................................................ 42 Penalties

ATTACHMENT A
Chapter 4: T ransparency Laws 4 9
Economic Interest Disclosure ...................................................................................................................................... 51 Basic Rules

............................................................................................................................................................... 51 Penalties

.............................................................................................................................................................. 54 Penalties

...............................................................................................................................................................56 Penalties

...............................................................................57 Honest Services Fraud
....................................................................................................................................57 T
he Public’s Right to Access Records
........................................................................................................................ 58 Basic Rules

.............................................................................................................................................................. 58 Penalties

.............................................................................................................. 60 Basic Rules

.............................................................................................................................................................. 60 Good Ethics Equals Good Politics

....................................................................................................................... 61 T ypical Closed Session Issues
............................................................................................................................ 62 P
enalties

...................................................................................................................................................................63 Nullification of Decision ................................................................................................................................63 Criminal Sanctions
..........................................................................................................................................63 Other C
onsequences
......................................................................................................................................63

ATTACHMENT A
The Public’s Right to Participate in Meetings .......................................................................................................... 64 Basic Rules

.............................................................................................................................................................. 64 Posting and Following the Agenda

.............................................................................................................. 64 The Public’s Right to Materials Not Included in the Agenda Packet

................................................... 64
Special Issues

........................................................................................... 64 Sign-In Must Be Voluntary............................................................................................................................64 The Public’s Right to be Heard.....................................................................................................................64 Penalties

.................................................................................................................................................................. 66 Nullification of Decision ............................................................................................................................... 66 Criminal Sanctions
......................................................................................................................................... 66 Other Measur
es

.............................................................................................................................................. 66 Potential Civil Rights Violations

.................................................................................................................. 66 Endnotes and Additional Information
........................................................................................................................67

ATTACHMENT A
Chapter 5: Fair Process Laws and Merit-Based Decision-Making 7 4 The Right to Fair and Unbiased Decision-Makers ...................................................................................................74 Basic Rules

...............................................................................................................................................................74 Effect of Violations

.........................................................................................................................................................75 Effect on Decision

..................................................................................................................................................75 Due Process Violations

.........................................................................................................................................75 Vote-T rading

....................................................................................................................................................................75 Basic Rules

...............................................................................................................................................................75 Penalties

...................................................................................................................................................................76 Personal Loans

.................................................................................................................................................................76 Basic Rules

...............................................................................................................................................................76 Penalties

...............................................................................................................................................................77 Penalties

....................................79
Basic Rules

...................................................................................................................................................................

Affected Officials
........................................................................................................................................... 80 Ext
ortion under California and Federal Law

.............................................................................................. 81 Kinds of Proceedings Affected

..................................................................................................................... 81 Actions That Must Be T aken
......................................................................................................................... 81 P
enalties

.................................................................................................................................................................. 82

ATTACHMENT A
Agency Staff and Political Activities ........................................................................................................................... 83 Basic Rules

..........................................83
Engaging in Political Activities During Work Hours or While in Uniform

...........................................83
Penalties

...............................................................................................................................................................83 Special Issues

.......................... 84
Individual Agency Guidelines

...................................................................................................................... 84 Penalties

............................................................................................. 85 Basic Rules

.............................................................................................................................................................. 85 Exceptions

.............................................................................................................................................................. 85 Emergency

.............................................................................................................................................. 85 Design-Build

.................................................................................................................................................... 86 Penalties

...............................................................................................................................................................87 Penalties

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Institute for Local Government | 1
What Is an Ethics Law?
The notion that one should enter into public service to benefit the public and not one’s own personal financial interests is almost axiomatic in American politics. News coverage of elected and appointed officials who break
either the written or unwritten rules (or both) against self-interested actions in their official capacities dominate at every level of public discourse, from cable and national network news to the neighborhood newsletter and local
internet blog.

Ethics laws are designed to preserve the public’s trust in its public institutions and those who serve in them by setting a framework to guide conduct and behavior.
1 This guide discusses several types of ethics laws and principles and their important role in public service.

For more information on these principles,
see www.ca-ilg.org/ ethics.

CHAPTER 1:

Introduction

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2 | Understanding the Basics of Public Service Ethics Laws | INTRODUCTION

TYPES OF ETHICS LAWS
Prohibitions
Many of these ethics laws are prohibitions: they forbid certain actions that would undermine the public’s trust that decisions are being made to benefit the public’s interests (as opposed to the personal or political interests of the decision-maker). Making decisions in the public’s interest is also a key responsibility of public service. 2 Prohibitions deter betrayals of the public’s trust by creating penalties for such betrayals.

Laws against misusing public resources are a form of prohibitory law, as are laws that prevent a decision-maker from being involved in a decision if the decision-maker has a real or perceived conflict of interest. Laws against bribery or other forms of “pay to play” are another important ethics law prohibition.

Transparency Requirements
Other ethics laws simply require transparency: they provide the public and the media with information on how the public’s business is being conducted, who is receiving campaign contributions and gifts from whom, and what kinds of financial interests a public official has. With transparency laws, the public judges whether a public official or group of public officials is acting in a trustworthy fashion—typically as part of the elections process.

T ransparency laws also encourage trustworthy behavior by reminding public officials that their actions will likely be scrutinized and judged.

Fairness
Other ethics laws require that public agency decision-making processes meet minimum standards of fairness.3 Understanding California
Ethics Laws
California has a complex set of ethics laws to guide local officials in their service to their communities. How does the well-intentioned local official keep track of them all? Keeping four core principles in mind helps:
» Public officials may not use their offices for personal financial gain.
» Holding public office does not entitle one to personal advantages or perks.
» Transparency promotes public trust and confidence.
» Merit-based decision-making based on fair processes
produces the best results for the public.

Each chapter of this guide is organized around one
of these four principles and will discuss a variety of
specific topics and penalties associated with violation of the laws.
»
Chapt
er 2: Personal Financial Gain Laws.

This chapter covers the prohibitions against receiving
favors or money for official actions, stepping aside
from the decision-making process when there is an
economic interest in the outcome, and restrictions on
employment in certain capacities after leaving public
office.
»
Chapt
er 3: Gifts and Other Perks.

This chapter focuses on laws and regulations related to compensation, reimbursement of expenses, restrictions
on the use of public resources, gifts to public officials, and the use of campaign funds.

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Institute for Local Government | 3
» Chapter 4: Transparency Laws. This chapter focuses
on various disclosure requirements, including campaign
contributions, economic interests, and charitable
fundraising. Other topics include conducting public
business in a public manner, the public’s right to
participate in meetings, and the right to access public records.
» Chapter 5: Fair Processes and Merit-Based Decision-
Making. This chapter focuses on prohibitions against
vote-trading, restrictions on personal loans, and
disqualifications based on the receipt of campaign
contributions and benefits to the official’s family.

It also covers the competitive bidding process for
public contracts, bias, separating agency staff from
politics, and prohibitions on holding multiple offices.

The chapter concludes with a discussion of the
whistleblower protections available to protect public
employees from retaliation for reporting unlawful
behavior.

A key goal of this guide is to alert local officials on when to ask for legal advice on how ethics laws apply in a particular situation.

The Key Laws to Know
While there are innumerable statutes, regulations,
policies and court decisions that shape California ethics and transparency laws, there are a handful of specific, fundamental laws that embody many of the issues
commonly encountered by local officials and employees,
and that often directly govern their actions. These key laws include:
»
Br
own Act: Requires the governing bodies of local
agencies to conduct open and public meetings, subject
to limited exceptions, and to post meeting agendas
beforehand. See Chapter 4 for more information.
»
Go
vernment Code section 1090: Prohibits public
officials and employees from being financially
interested in any contract made by them in their official capacity or by any body or board of which they are
members. See Chapter 2 for more information.
»
P
olitical Reform Act: Governs campaign financing and
prohibits local agency officials and employees from
participating in governmental decisions affecting their financial interests. See Chapter 2 for more information. » California Public Records Act: Subject to specified exemptions, requires public agencies to make writings
created, used or possessed by the agency available
to the public, upon request. See Chapter 4 for more
information.

It is not necessary for local agency officials and
employees to have a thorough understanding of all the
nuances and intricacies of each of these laws but they
should be aware of the purpose and general requirements of each. Along with numerous other bodies of law, each
of these key laws will be comprehensively discussed in
this guide.

Laws as Minimum Standards
Because public trust and confidence is vital to the strength of a democratic system, ethics laws sometimes set very
high standards for public official conduct. Even though public officials may feel at times that some of these high standards of conduct are unduly burdensome or intrusive of their private lives, they must accept that adhering to these standards, including broad financial disclosure rules for gifts and income, is simply part of the process of public service.

Even so, it is important to keep in mind that these
standards are only minimum standards; it is simply not
possible or practical to write laws that prevent all actions that might diminish the public’s trust.

For this reason, the laws should be viewed as a floor for conduct, not a ceiling. Just because a given course of
conduct is legal does not mean that it is ethical (or that the public will perceive it as such).

This means that public officials facing ethical issues are well-advised to engage in a three-step analysis:
»
St
ep One: What, if anything, does the law say about a
given course of action?
»
St
ep Two: Is the given course of action consistent with
one’s own values and analysis of what would constitute
“ethical” conduct?
»
St
ep Three: What will the public’s perception be of the
conduct, given the information the public is likely to
have available?
A helpful tool for analyzing the third question is whether one would like to see the course of conduct reported on the front page of the local newspaper.

ATTACHMENT A
4 | Understanding the Basics of Public Service Ethics Laws | INTRODUCTION The Limits of this Information
Although the Institute endeavors to help local officials understand technical and legal concepts that apply to their public service, this publication is not technical nor is it intended to provide legal advice. Officials are encouraged to consult technical experts, attorneys and/ or relevant regulatory authorities for up-to-date information and
advice on specific situations.

Endnotes
1 Rush worth M. Kidder, How Good People Make T ough Choices (Simon and Schuster, 1995).
2 Id.
3 Id.

FOR MORE INFORMATION
On ethics laws and principles, see:
»

www.ca-ilg.org/ ppoe.
»
www
.fppc.ca.gov/learn/ public-officials-and-
employees-rules-/ ethics-training.html.

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Institute for Local Government | 5
CHAPTER 2:

Personal Financial
Gain Laws

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Chapter 2: Personal Financial Gain Laws

CONTENTS

Receiving Special Favors or Money for Official Actions ...........................................................................................8 Basic Rules