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Item 18 - Approval of Position on Pending Legislation and Supporting CDBG Program TO: FROM: INITIATED BY: DATE: SUBJECT: AGENDA REPORT SUMMARY Honorable Mayor and Members of the City Council James L Bowersox, City Mana~ Paolo Romero, Management Assistant 11 April 26, 2005 Approval of Position on Pending Legislation and Adoption of Resolution Supporting the Community Development Block Grant (CDBG) Program ABSTRACT The City has been notified of AB 11-City Council Compensation, AB 24-Mountain Lions: License Tags, AB 194-Brown Act Violations: Remedy, AB 260-State Fire Marshal: Fire Response Time: Reports, AB 549-Affordable Housing, AB 463-Local Agencies: Security Information, AB 1233-Housing Element: Regional Housing Need, AB 1248-Criminal Law: Booking Fees, ACA 5-Public Retirement Systems, ACA 7-Local Government Taxation: Special Taxes: Voter Approval, SB 8-Political Reform Act of 1974: Conflicts of Interest, SB 20-Auto Insurance: Low-Cost Policies: Evidence of Financial Responsibility, SB 435-Housing: Density Bonuses, SB 521-Local Planning: Transit Village Plans, and SB 1049-SAFE Teams; which are pending before the State Legislature. In addition, a Resolution urging support of continued federal funding of the Community Development Block Grant (CDBG) Program at current levels and the retention of the Program within the Department of Housing and Urban Development has been attached for Council review and consideration. ENVIRONMENTAL REVIEW This report is not subject to CEQA review. FISCAL IMPACT Staff is currently reviewing the impact of the proposed legislation. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council support AB 1248, ACA 7, and SB 1049; oppose AB 24, AB 194, AB 260, AB 549, AB 1233, and SB 435 unless amended; and watch AB 11, AB 463, ACA 5, SB 8, SB 20, and SB 521; and inform members of the State Legislature, organizations, and committees of the City's position. It is also recommended that the City Council adopt the attached resolution in suooort of maintainina the Community Develooment Block Grant ICDBG) ProQram at its current level. I ACTION I 1 of 15 April 26, 2005 Item # I 'l CITY OF POWAY AGENDA REPORT This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. TO: FROM: Honorable Mayor and Member~ City Council James L. Bowersox, City Man~ Paolo Romero, Management Assistant 1J. INITIATED BY: DATE: April 26, 2005 SUBJECT: Approval of Position on Pending Legislation and Adoption of Resolution Supporting the Community Development Block Grant (CDBG) Program BACKGROUND The California State Legislature is currently considering several bills, which may be of interest to the City of Poway. This report contains a review of these bills and indicates a recommended position for the City Council's consideration. 1. AB 11 - City Council Compensation 2. AB 24 - Mountain Lions: License Tags 3. AB 194 - Brown Act Violations: Remedy 4. AB 260 - State Fire Marshal: Fire Response Time: Reports 5. AB 549 - Affordable Housing 6. AB 463 - Local Agencies: Security Information 7. AB 1233 - Housing Element: Regional Housing Need 8. AB 1248 - Criminal Law: Booking Fees 9. ACA 5 - Public Retirement Systems 10. ACA 7 - Local Government Taxation: Special Taxes: Voter Approval 11. SB 8 - Political Reform Act of 1974: Conflicts of Interest 12. SB 20 - Auto Insurance: Low-Cost Policies: Evidence of Financial Responsibility 13. SB 435 - Housing: Density Bonuses 14. SB 521 - Local Planning: Transit Village Plans 15. SB 1049 - SAFE Teams Additionally, at the Federal Government level, changes have been proposed to the Community Development Block Grant (CDBG) Program. This report outlines the proposed changes and includes a resolution for the Council's consideration opposing the proposed changes. 2 of 15 April 26, 2005 Item # \<1 Approval of Position on Pending Legislation April 26, 2005 Page 2 FINDINGS 1. AB 11 (De La Torrel- City Council Compensation CURRENT LAW Existing law specifies the procedures for setting the compensation of City Councilmembers. PROPOSED LAW AB 11 requires that an elected member of a City Council, who seryes on a commission or committee created by or under the jurisdiction of the City Council, shall not receive compensation for that seryice in excess of $150 per commission or committee per month. COMMENTS As presently proposed, AB 11 may affect the City of Poway. Staff will continue to monitor this bill. It is recommended that the City Council join the League of California Cities and watch AB 11. 2, AS 24 (Maze) - Mountain Lions: License Taas CURRENT LAW Proposition 117, an initiative measure approved by voters in 1990, enacted the California Wildlife Protection Act of 1990, which provides protection for the mountain lion under California laws. PROPOSED LAW AB 24 requires the Department of Fish and Game to annually conduct a statewide lottery for the issuance of 116 license tags for the hunting and killing of mountain lions. The bill specifies the eligibility requirements for participation in the lottery. The bill permits a license tag holder to use no more than 3 dogs to hunt mountain lions during the open season, which is specified as all year. The bill also requires the Fish and Game Commission to establish mountain lion hunting zones throughout California and the number of tags to be issued for each zone. The bill requires the Commission to prohibit the taking of mountain lion cubs and female mountain lions accompanied by mountain lion cubs, and to determine the definition of a mountain lion cub for the purposes of this prohibition. The sale or possession of any mountain lion or any part thereof is permitted, if the mountain lion was taken in accordance with the bill's provisions. COMMENTS The City of Poway is committed to the preservation of open space and the wildlife that inhabit these areas. In Southern California, the substantial rise in human population has contributed to the decline of several lion populations that are now considered threatened. Existing law already provides flexibility and reasonable control over mountain lions to protect public health and safety. With no clear indication that hunting will increase public safety, alternative methods such as research and additional public education should be pursued in order to responsibly manage mountain lion populations. It is recommended that the City Council oppose AB 24. 3 of 15 April 26, 2005 Item # \ ~ Approval of Position on Pending Legislation April 26, 2005 Page 3 3. AB 194 (Dvmally) - Brawn Act Violations: Remedv CURRENT LAW The Ralph M. Brown Act (Brown Act) requires, with specified exceptions, that all meetings of a legislative body of a local agency be open and public, and all persons be permitted to attend. The Brown Act authorizes the district attorney or any interested person, to commence an action for a judicial determination, that an action of a local agency legislative body, taken in violation of the Brown Act, is null and void, but requires that the body have an opportunity to cure or correct the alleged violation prior to commencement of legal action. The Brown Act provides that an action of the body alleged to having violated specified provisions, shall not be determined to be null and void, if the action was taken in substantial compliance with those specified provisions and in other specified circumstances. PROPOSED LAW AB 194 removes the requirement that the legislative body be allowed to cure or correct an alleged violation prior to commencement of a legal action, and removes provisions that preclude specified actions from being determined to be null and void. COMMENTS AB 194 seeks to nullify the right of a local agency to correct any alleged Brown Act violation prior to the commencement of judicial action, even in those situations where the violations were an inadvertent mistake or misunderstanding. AB 194 will diminish existing protections afforded to public agencies under the Brown Act by eliminating a local agency's ability to make "good faith" efforts to correct violations that may have occurred without the intention of depriving the public's open meeting rights. This bill also seeks to remove the 90-day timeframe a local agency has to receive notification of an alleged violation. Removing the timeframe for violation notifications exposes local agencies to an indefinite period of time in which violations may be alleged. The lack of a timeframe can risk future decisions of a governing body, including those in reference to expenditures and entering into contracts being nullified by a court regardless of when the alleged violation occurred. It is recommended that the City Council join the League of California Cities and oppose AB 194. 4. AB 260 (Bermudez) - State Fire Marshal: Fire Response Time: Reports CURRENT LAW Existing law requires the chief fire official of each fire department operated by the state, a city, city and county, fire protection district, organized fire company, or other public or private entity that provides fire protection, to provide to the State Fire Marshal information and data relating to each fire that occurs within the chief fire official's jurisdiction. Existing law requires the State Fire Marshal to adopt regulations that prescribe the scope of the information to be reported. Existing law also requires the State Fire Marshal to annually analyze the information and data reported, compile a report, and disseminate a copy of the report, together with the analysis, to each chief fire official in the state. 4 of 15 April 26, 2005 Item # \ i Approval of Position on Pending Legislation April 26, 2005 Page 4 PROPOSED LAW AB 260 requires the State Fire Marshal, in consultation with the State Board of Fire Services and specified experts, to adopt revised regulations to require the statistical information furnished on and after January 1 , 2007, to include response time and staffing level information that is compatible with the National Fire Incident Reporting System established by the Federal Emergency Management Agency. On or after July 1,2007, this bill requires the report to include a comparison of benchmarks found in a nationally recognized standard for fire protection to the response time, and staffing data for each reporting fire department. The bill authorizes the State Fire Marshal, instead of disseminating the report to each chief fire official, to make this annual report available on the State Fire Marshal web site on and after July 1, 2007, if it is determined to be the most cost-effective means of disseminating the report. By increasing the duties of local officials, this bill imposes a state-mandated local program. If the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs will be made pursuant to statutory provisions. COMMENTS As currently written, the intent of AB 260 is to compare the response times and staffing levels of each reporting fire department with the standard found in NFPA 1710 (National Fire Protection Association). While it is important for local governments to develop performance objectives, benchmarks, and evaluations, it is problematic to compare fire department data to the controversial NFPA 1710 standard, which is opposed by most local jurisdictions in California. Each city in this state is demographically, geographically, and fiscally different from one another, and it is impossible to apply one set of response standards and objectives equally to each. Developing appropriate fire service delivery objectives, fire service emergency response staffing criteria, and emergency response time performance criteria, should be based upon the resources of the individual fire departments and the needs of the communities they serye. It is recommended that the City Council join the League of California Cities and oppose AB 260. 5. AS 549 (Salinas) - Affordable HousinCl CURRENT LAW The Planning and Zoning Law requires each city, county, or city and county in California to prepare and adopt a general plan that contains mandatory elements, including a housing element. This law also prescribes that the provisions include identification of adequate sites for housing. A city or county is allowed to substitute the prescribed affordable housing identification for a specified percent of the obligation to identify adequate sites for any income category. The Planning and Zoning Law also requires a city, county, or city and county to submit a draft housing element or draft to determine whether the draft complies with state law governing housing elements. Existing law also prohibits a local agency from disapproving or imposing specified conditions on an affordable housing development unless it makes specified written findings. PROPOSED LAW AB 549 establishes a pilot program to allow a city or county to adopt an alternative production-based certification of its housing element subject to approval by the state Department of Housing and Community Development. Alternative certification would be required to meet other specified criteria, including an unspecified percentage of the jurisdiction's share of the regional housing need for very 5 of 15 April 26, 2005 Item #.JL Approval of Position on Pending Legislation April 26, 2005 Page 5 low, low-, and moderate-income households. This bill revises one ofthe specified findings for which a local agency may make a written finding, based on substantial evidence in the record, to disapprove or conditionally approve of an affordable housing development. This bill also authorizes actual damages as compensation for documented quantifiable losses suffered by a plaintiff or petitioner in an action brought to enforce the program provisions as a direct result of a local agency disapproving or conditioning its approval of an affordable housing development, as specified. COMMENTS AB 549 establishes an alternative means to determine housing element compliance with state law. Current law only requires a city to identify adequate sites but does not require units be produced through new construction. The alternative means would require actual production of new units, or rehabilitation/acquisition of existing units, based on certain criteria. At this point the legislation does not identify a percentage of the regional share that would have to be produced during the housing element planning period. This alternative means to certify the housing element still requires review by the Department of Housing and Community Development, but the city need only consider their comments. The requirement to base housing element compliance on the production of housing is a step in the right direction. However, AB 549 does not identify the percentage of the regional share allocation that would have to be constructed. This is critical because in the past, the number of units projected to be built in the City of Poway, even for market rate units, has been higher than what has actually been built. It is recommended that the City Council join the League of California Cities and watch AB 549. 6. AS 463 (Tranl - Local Aaencies: Security Information CURRENT LAW Under the Ralph M. Brown Act (Brown Act), meetings of the legislative body of a local agency are required to be conducted openly and publicly, with specified exceptions. The Brown Act specifies that if certain information is disclosed in an open and public session prior to holding a closed session, the legislative body of a local agency may hold closed sessions with specified persons on matters posing a threat to the security of public buildings, a threat to the safety and delivery of essential public seryices, or a threat to the public's right of access to public seryices or public facilities. PROPOSED LAW AB 463 additionally allows a closed session with those specified persons on matters posing a threat to private property or facilities that are open to the general public, including response strategies and preventative measures relating to the threat. COMMENTS Although AB 463 would provide flexibility to legislative bodies of local agencies during times of crisis or emergency, unintended violations of the Brown Act may increase due to additional closed sessions being conducted by local agencies. It is recommended that the City Council join the League of California Cities and watch AB 463. 6 of 15 April 26, 2005 Item #--1L Approval of Position on Pending Legislation April 26, 2005 Page 6 7. AS 1233 (Jones) - Housina Element: Reaional Housina Need CURRENT LAW The Planning and Zoning Law requires each city, county, or city and county to prepare and adopt a general plan for its jurisdiction that contains certain mandatory elements, including a housing element. One part of the housing element is an assessment of housing needs and an inventory of land suitable for residential development to meet the jurisdiction's share of the regional housing need, including vacant sites and sites having potential for redevelopment. An analysis of a proposed residential development in relation to existing public and private facilities and services located on the potential sites are also required. PROPOSED LAW AB 1233 requires that a jurisdiction's land inventory include the share of the regional housing need in the current planning period, and any portion of the share that remains unmet from the planning period for all income levels, pursuant to these provisions. For purposes of making the assessment and inventory, any portion of the regional housing need from the previous planning period that remains unmet must also be included. COMMENTS AB 1233 would constantly increase a local jurisdiction's share of the regional housing need by including unmet shares from the previous planning period. Currently most cities find it challenging to meet their share of the regional housing need as prescribed by existing law. The passage of this bill would make it very difficult for cities to meet their regional housing need share for each subsequent planning period. If passed, local jurisdictions may be forced to subsidize housing developers in order to meet their assessed share. It is recommended that the City Council join the League of California Cities and oppose AB 1233. 8. AS 1248 (Umbera) - Criminal Law: Sookina Fees CURRENT LAW Existing law authorizes a county to impose a booking fee for county costs incurred in processing or booking persons arrested by employees of specified entities and brought to county facilities for booking or detention. PROPOSED LAW AB 1248 specifies that a county shall be authorized to impose a booking fee only with respect to specified non-felonious offenses and all municipal code violations. COMMENTS AB 1248 will reduce the County of San Diego's booking fee charges that are assessed to the City of Poway. This bill removes felonies, DUl's, batteries, and sex crimes from the list of crimes for which booking fees can be charged. The City of Poway typically expends between $35,000-$52,000 each year in booking fee charges. With the passage of AB 1248, cities throughout Califomia will realize a significant savings of $25 million collectively. It is recommended that the City Council join the League of California Cities and support AB 1248. 7 of 15 April 26, 2005 Item # 1 ~ Approval of Position on Pending Legislation April 26, 2005 Page 7 9. ACA 5 (Richman) - Public Retirement Systems CURRENT LAW The California Constitution reseryes a role for the elected officials of this state in the governance of public pension systems through several means, including the power to determine the appropriateness of retirement benefits for public employees. Under the current state, as well as many local governments' pension structure, known as a "defined benefit" system, retirees receive a lifetime annuity. The amount of the annuity is calculated with a formula that includes age, years of service, and salary. Under this plan, an employee retiring at age 55 receives an annual pension benefit equal to two percent of the highest 12 months of salary (sometimes referred to as "highest final compensation") times years of service. An employee whose highest annual salary was $50,000 and who seryed for 25 years would receive retirement benefits of $25,000 annually. The employee and the employer contribute to the pension fund over the employee's working career. PROPOSED LAW ACA 5 establishes the California Public Employee Defined Contribution Plan. This measure provides that on and after July 7, 2007, any person hired as a new employee by a public agency may enroll only in a defined contribution plan of a public pension or retirement system, and is prohibited from enrolling in a defined benefit plan. This measure limits employer contributions to a defined contribution plan to an unspecified percentage of the employer's payroll, establishes other parameters for defined contribution plans, and also sets forth related findings of the Legislature. COMMENTS City staff will continue to closely monitor this item. The Administrative Services Department will provide the City Council with a full report on this proposal in the near future. It is recommended that the City Council join the League of California Cities and watch ACA 5. 10. ACA 7 (Nation) - Local Governmental Taxation: Special Taxes: Voter Approval CURRENT LAW The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of two-thirds of the voters of the jurisdiction voting on that tax, except that certain school entities may levy an ad valorem property tax for specified purposes with the approval of 55% of the voters within the jurisdiction of these entities. PROPOSED LAW ACA 7 changes the two-thirds voter-approval requirement for special taxes to instead authorize a city, county, or special district to impose a special tax with the approval of 55% of its voters voting on the tax. COMMENTS ACA 7 provides local governments additional fiscal flexibility when deemed necessary. This bill reduces the voter threshold that must be met in order for local governments to obtain approval from their community for a special tax for specific services. Specifically, ACA 7 allows local governments to impose a special tax if approved by 55% of voters, instead of the two-thirds margin currently required by the California Constitution. This bill recognizes that a reduced voter threshold is only 8 of 15 April 26, 2005 Item #~ Approval of Position on Pending Legislation April 26, 2005 Page 8 useful to the extent that cities would have sufficient discretion to raise revenues consistent with local priorities. It is recommended that the City Council join the League of California Cities and support ACA 7. 11. SB 8 (Sotol- Political Reform Act of 1974: Conflicts of Interest CURRENT LAW The Political Reform Act of 1974 prohibits former members of a state administrative agency and former members of a district board from representing any persons before the state administrative agency or the district board, under specified conditions. Existing law makes violations of this Act subject to administrative, civil, and criminal penalties. PROPOSED LAW SB 8 prohibits a local elected official, chief administrative officer, city managerladministrator, or general manager/chief administrator who held a position with a local government agency, for a period of one year after leaving that office or employment, from representing an entity or persons for the purpose of influencing administrative or legislative action. This bill imposes a state-mandated local program by imposing administrative, civil, and criminal penalties on persons who violate the provisions of the bill. COMMENTS As presently proposed, SB 8 may affect the City of Poway. Staff will continue to monitor this bill. It is recommended that the City Council join the League of California Cities and watch SB 8. 12. SB 20 (Escutial - Auto Insurance: Low-Cost Policies: Evidence of Financial Responsibilitv CURRENT LAW Existing law establishes, until January 1, 2007, a low-cost automobile insurance pilot program in the County of Los Angeles and the City and County of San Francisco. Existing law provides for the issuance of automobile liability policies pursuant to the pilot program under specified terms and conditions, and provides that a policy so issued satisfies specified requirements regarding financial responsibility. PROPOSED LAW SB 20 eliminates the expiration date for the pilot program provisions. As of April 2006, this bill extends the low-cost automobile program to the Counties of Alameda, Fresno, Orange, Riverside, San Bernardino, and San Diego. The bill requires the Insurance Commissioner to establish the annual rate offered initially under the pilot program for the added counties, and to adopt regulations to extend the program to these counties. COMMENTS SB 20 provides individuals, specifically low-income persons that typically do not possess auto insurance, with affordable auto insurance liability policies subject to program requirements. It is recommended that the City Council join the League of California Cities and wat~ SB 20. 9 of 15 April 26, 2005 Item #~ Approval of Position on Pending Legislation April 26, 2005 Page 9 13. SB 435 (Hollinasworth) - Housina: Densitv Bonuses CURRENT LAW The Planning and Zoning Law requires, when a developer of housing proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus or other incentives or concessions for the production of lower-income housing units or the donation of land within the development if the developer meets certain requirements, including a requirement that the developer agrees to construct a specified percentage of the total units for specified income households or qualifying residents. Existing law prohibits a city, county, or city and county from applying a development standard that has the effect of precluding the construction of a development meeting the affordable housing criteria that entitles the developer to a density bonus and incentives or concessions. Existing law also authorizes a developer to apply for a waiver or reduction of development standards and requires the developer to show that the waiver or modification is necessary to make the housing units economically feasible. PROPOSED LAW SB 435 includes within the "incentives eligibility requirements" the construction of a mobile home park that limits residency based on age requirements for housing for older persons and the construction, for persons and families of moderate income, of a community apartment project and a stock cooperative. This bill requires a city, county, or city and county to permit an additional incentive or concession for projects in which the developer is entitled to a density bonus, but can use less than 50% of the density bonus. This bill also deletes the requirement that the developer show that the waiver or modification to the development standards is necessary to make the housing units economically feasible. COMMENTS This bill is a follow-up to last year's amendment to the state density bonus law, further making it easier for developers to qualify for such bonuses. The bill eliminates the requirement that an applicant show that the concessions given by a city are necessary to make the housing units economically feasible. While a state mandated program, the bill would provide that no reimbursement is required. It is unclear why community standards should be reduced, or additional concessions be granted to developers who cannot demonstrate that they are necessary. Staff believes it is important to amend the bill to delete the additional incentive requirements and retain the requirement that the developer prove the waiver or modification is necessary to make the housing economically feasible. It is recommended that the City Council join the League of California Cities and oppose SB 435 unless amended. 14. SB 521 (Torlakson) - Local Plannina: Transit Villaae Plans CURRENT LAW The Transit Village Development Planning Act of 1994 authorizes a city or county to prepare a transit village plan for a transit village development district that is planned and designed so that residents, workers, shoppers, and others find it convenient and attractive to patronize transit. This plan includes all land within not less than a quarter mile of the exterior boundary of the parcel on which is 10 of 15 April 26, 2005 Item #~ Approval of Position on Pending Legislation April 26, 2005 Page 10 located a transit station, and addresses specified characteristics, including a neighborhood centered around a transit station and a mix of housing types. The plan is required to show 5 public benefits that reduce traffic congestion. Also, Community Redevelopment Law specifies both the physical and economic conditions that cause blight. PROPOSED LAW SB 521 requires that the mix of housing types be on parcels of which at least a portion is within not more than a quarter mile of the exterior boundary of the transit station parcel. This bill also requires a city and county to allow "use by right" on each parcel within a transit village development district. The bill requires that the transit village development district only include parcels of land at least a portion of which is within not more than a quarter mile of the exterior boundary of the transit station parcel. SB 521 also defines an economic condition of blight to include the lack of high-density development within a transit village development district and specifies requirements to be met by a local agency that relies on this condition. COMMENTS As presently proposed, SB 521 does not affect the City of Poway. Staff will continue to monitor this bill for proposed amendments or significant changes that may affect the City. It is recommended that the City Council join the League of California Cities and watch SB 521. 15. SB 1049 (Hollinasworthl- SAFE Teams CURRENT LAW Existing law authorizes the establishment of county and regional sexual assault felony enforcement (SAFE) teams to reduce violent sexual assault offenses. PROPOSED LAW SB 1049 appropriates $15,000,000 from California's General Fund to the State Controller for distribution to county sheriffs for the implementation of county and regional SAFE Team programs, as specified. COMMENTS The use of officers and agents from several law enforcement agencies in SAFE Teams protects the citizens of California, particularly children, from violent sexual assaults through proactive surveillance and arrests of habitual sexual offenders. SB 1049 ensures that there are adequate resources dedicated to law enforcement to improve tracking of dangerous, repeat sexual offenders, and also ensures every child is safe in their neighborhood. This legislation will allow cites and counties to provide better public safety seryices to the citizens they protect. It is recommended that the City Council join the League of California Cities and support SB 1049. 16. Community Development Block Grant (CDBGl ProQram Proposed Modifications CURRENT STATUS For thirty years, American cities, including both large and small cities in California, have used Community Development Block Grant (CDBG) funds to create jobs, provide affordable housing, 11 of 15 April 26, 2005 Item # 11 Approval of Position on Pending Legislation April 26, 2005 Page 11 eliminate blight, and generate new economic investment. The CDBG Program is currently funded at $4.7 billion and provides grants to cities through the Department of Housing and Urban Development. PROPOSED CHANGES President George W. Bush has proposed the elimination of the CDBG Program for the Fiscal Year 2006 budget. As part of the President's budget proposal, a reduced level of CDBG funds would be transferred to the Commerce Department along with funds from 17 other programs and consolidated into the Strengthening America's Communities Grant Program. Targeted to "economically distressed communities and regions," this program would be funded at $3.7 billion, which is $1 billion less than the current CDBG Program. COMMENTS CDBG funds are a critical funding source for local governments in California, including the City of Poway. The CDBG Program funds vital housing rehabilitation, supportive services, public improvements and economic development projects in communities across the nation, helping states and municipalities meet the needs of their low-income populations. Annually, the City of Poway receives approximately $230,000 in CDBG funding. The City utilizes this funding to provide: o A Residential Rehabilitation Loan Program, which funds approximately ten $10,000 forgivable loans each year to help low-income families rehabilitate homes in need of repair; o A Shared Housing Program, which assists approximately thirty families each year by matching low-income individuals with shared housing opportunities and providing the necessary caseworker involvement; and o ADA (Americans with Disabilities Act) improvements to public facilities amounting to $100,000 each year. The National League of Cities is urging support of continued federal funding of the Community Development Block Grant (CDBG) Program at current levels and the retention ofthe Program within the Department of Housing and Urban Development. A resolution is attached for the Council's review and consideration supporting the Community Development Block Grant (CDBG) Program. It is recommended that the City Council adopt this resolution. ENVIRONMENTAL REVIEW This report is not subject to CEQA review. FISCAL IMPACT Staff is currently reviewing the impact of the proposed legislation. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. 12 of 15 April 26, 2005 Item #~ Approval of Position on Pending Legislation April 26, 2005 Page 12 RECOMMENDATION It is recommended that the City Council support AB 1248, ACA 7, and SB 1049; oppose AB 24, AB 194, AB 260, AB 549, AB 1233, and SB 435 unless amended; and watch AB 11, AB463, ACA 5, SB 8, SB 20, and SB 521; and inform members of the State Legislature, organizations, and committees of the City's position. It is also recommended that the City Council adopt the attached resolution in support of maintaining the Community Development Block Grant (CDBG) Program at its current level. Attachment: A. CDBG Resolution 13 of 15 April 26, 2005 Item # .} i RESOLUTION NO. 05-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, URGING SUPPORT OF CONTINUED FEDERAL FUNDING OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM WHEREAS, for thirty years America's cities, including both large and small cities in California, have used Community Development Block Grant (CDBG) funds to create jobs, provide affordable housing, eliminate blight, and generate new economic investment; and WHEREAS, CDBG funds have played a critical role in community and economic development in Poway; and WHEREAS, CDBG monies are a catalyst for creating more affordable housing, making it possible for Poway to annually fund ten $10,000 forgiveable loans for the rehabilitation of homes providing more low-income families with clean, decent, affordable housing; and WHEREAS, the City of Poway uses CDBG monies to fund its Shared Housing Program, providing the necessary caseworker assistance to match low-income individuals with shared housing opportunities; and WHEREAS, the CDBG program has increased the quality of life in Poway by improving disabled access for public facilities by funding Americans with Disabilities Act improvements to buildings, streets, and sidewalks; and WHEREAS, President George W. Bush has proposed a new "Strengthening America's Communities Initiative" which combines 18 direct grant programs, including CDBG, into one within the Economic Development Administration (EDA); and WHEREAS, at $3.71 billion, the new program (which combines 18 programs) is nearly $1 billion less the current CDBG program alone; and WHEREAS, without proper funding for the CDBG program, the City of Poway risks undermining the economic well being of our community, the future generations that live here, and the nation as a whole. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway that we hereby request that Congress enact a FY 2006 budget and appropriations package that funds CDBG formula grants at no less than $4.355 billion, which is level with FY 2005 allocations; and RESOLVED FURTHER, that Congress maintain the CDBG as a separate and distinct program from other economic development programs that provides a direct and flexible source of funding to local governments; and RESOLVED FURTHER, that Congress maintain the current "dual formula" system where 70 percent of CDBG funds go to entitlement communities based on population; and RESOLVED FURTHER, that we will send a copy of this resolution to Senator Barbara Boxer and Senator Dianne Feinstein, and to the League of California Cities. 14 of 15 ATTACHMENT A April 26, 2005 Item # I'" Resolution No. Page 2 PASSED, ADOPTED AND APPROVED by the City Council of the City of poway at a regular meeting this 26th day of April, 2005. Michael P. Cafagna, Mayor ATTEST: L. Diane Shea, City Clerk STATE OF CALIFORNIA ) )SS COUNTY OF SAN DIEGO) I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Resolution No. 05- was duly adopted by the City Council at a meeting of said City Council held on the day of , 2005, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: L. Diane Shea, City Clerk City of Poway 15 of 15 April 26, 2005 Item # \ i