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Item 25 - Status Report on Pending Legislation ~. ~"?EO W.'-, ~~.~l,,~;;.:. ~ ~1-,- '~ - ..,,' V Thu..Jtl:;" " AGENDA REPORT SUMMARY - TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Ma~ INITIATED BY: John D. Fitch, Assistant City Manager Penny Riley, Senior Management Analys~ DATE: July 11, 1995 SUBJECT: Status Report on Pending Legislation ABSTRACT The League of California Cities has informed the City of the following measures which are pending in the State legislature: AB 182 (Granlund) Shopping Carts; SB 903 (Leslie) Adult Entertainment; and SB 647 (Kelley) Local Agency Fees. ENVIRONMENTAL REVIEW - Environmental review is not required for this item under CEQA. FISCAL IMPACT There is no fiscal impact associated with this informational report. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Assemblyman Jan Goldsmith; Senator David Kelley; Bob Wilson, the City's Lobbyist; and the League of California Cities will be mailed a copy of this agenda report. RECOMMENDATION It is recommended that the City Council oppose AB 182; support SB 903; and oppose SB 647. ACTION - 1 of 4 JIlL 111995 ITEM 25 I . -, CITY OF POWAY AGENDA REPORT Thts report t. included on the Cons.nt C.lendar. Thare will be no ..parat. dtscu.s1on of the report prior to approval by the City Council unless ~mb.rs of the Council, staff or public requ.st it to b. removed from the Consant Calandar and dtscus..d s.parately. If you wtsh to have thts report pulled for dtscuss1on, pl.... fill out. .lip indicating the report number and gtva it to the C1ty Clark prior to the beginning of the Cfty Council meating. TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Man~ INITIATED BY: John D. Fitch, Assistant City Manager Penny Riley, Senior Management Analyst~ DATE: July 11, 1995 SUBJECT: Status Report on Pending Legislation BACKGROUND The League of California Cities has informed the City of the following measures which are pending in the State legislature: AB 182 (Granlund) Shopping Carts; SB 903 (Leslie) Adult Entertainment: and SB 647 (Kelley) Local Agency Fees. FINDINGS AB 182 (Granlund) - Preemotion. Local Reoulation of Shoooino Carts Assemblymember Granlund introduced AB 182 on January 20, 1995, which will preempt cities' authority to have shopping cart retrieval ordinances. The measure will allow any grocer who retains a private collection service to be exempt from any charge for the collection of any abandoned cart in the state. If AB 182 passes, there would be nothing a city could do to eliminate scattered carts along roadways besides move them, store them, and return them to owners -- all at city expense. AB 182 places a maximum charge a city can recoup at $5 per cart for retrieval, identification of ownership, transportation, storage, and notification. This minimal fee will not come close to covering municipal costs for providing a grocer with this service. Additionally, grocers have very little incentive to collect carts in remote parts of town such as alleys and ditches. Grocers have claimed cities have charged high fees for shopping cart retrieval. However, cities are prohibited by state law to charge more than the actual costs for performing this service. It is recommended that the City Council oppose AB 182 because it preempts the ability of local government to recover the costs associated with the retrieval of abandoned shopping carts. 2 of 4 JUl 11 1995 ITEM 25 t - - - Status Report on Pending Legislation July 11, 1995 Page 2 SB 903 (Leslie) - Adult Entertainment Senator Leslie introduced SB 903 on February 23, 1995 which was authored on behalf of the League of California Cities. This legislation is designed to clean up a problem created by the passage last year of SB 1863 which damages existing local zoning control over certain adult businesses. It is recommended that the City Council support SB 903. SB 647 (Kellev) - Hearino Reouirement for Fee Adiustment Senator Kelley introduced SB 647 on February 22, 1995 which has been amended to prohibit local government from imposing a new fee, charge or increasing an existing charge by administrative authority, action or regulation. This measure is sponsored by the "Paladin Group" who claims that cities are arbitrarily raising fees and overcharging for services particularly for building inspection services. The Paladin Group claims that cities are charging from three to ten times the actual costs of plan checking, planning, engineering, parks, public works, and other government services. Paladin has filed suit against cities in Riverside and San Diego counties over building inspection fees. Senator Kelley has received an Attorney General opinion that cities may not establish building permit fees based on the Uniform Building Code valuation tables. The opinion states that each city must prepare studies to determine the reasonable costs of providing such services. It is the practice of the City of Poway to hold a public hearing for the setting and revisions to City fee structures. The Notice of Hearing is published in the Poway News Chieftain. Additionally in April 1993, the City of Poway completed a Revenue and Cost Analysis Study performed by Management Services Institute (MSI). MSI concluded that the City is diverting a significant amount of current tax monies, or is incurring future obligations on the use of those taxes, to subsidize services which benefit only portions of the general taxpaying public, or which are used in varying amounts by ratepayers. Many of these services, which were thought to be fully fee supported, could be more equitably supported by fees, charges or assessments, rather than by general taxes. The MSI study indicates that development-related services are significantly subsidized by the general fund and that current fees do not even approach cost -- 3 of 4 JUL 11 1995 ITEM 25 I .. Status Report on Pending Legislation July 11, 1995 Page 3 recovery for the City. The Poway City Council has made a conscious decision to provide a business-friendly environment for the industry by setting fees for development services at less than cost recovery. It is recommended that the City Council oppose SB 647. ENVIRONMENTAL REVIEW Environmental review is not required for this item under California Environmental Quality Act guidelines. FISCAL IMPACT There is no fiscal impact associated with this informational report. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Assemblyman Jan Goldsmith; Senator David Kelley; Bob Wilson, the City's Lobbyist; and the League of California Cities will be mailed a copy of this agenda report. RECOMMENDATION It is recommended that the City Council take the fOllowing actions: 1. Oppose AB 182 and direct staff to notify the Senate Local Government Committee of the City's opposition to the measure. 2. Support SB 903 and direct staff to notify the Assembly Public Safety Committee of the City's support for the measure. 3. Oppose SB 647 and direct staff to notify the Assembly Local Government Committee of the City's opposition to the measure. 4 of 4 ITEM 2, , JUll1 1995