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HomeMy WebLinkAbout15. Receive Legislative Update Page 1 of 2 Item 15. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 6, 2021 SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERSAND PROVIDE DIRECTION ON PRIORITY LEGISLATION SUBMITTED BY: INITIATING DEPARTMENT: EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND INTERGOVERNMENTAL RELATIONS INTERGOV REL MANAGER REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION i I �w... Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to staff on positions related to priority legislation. BACKGROUND Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special significance to the Board, the General Manager will present information to the Board on priority legislation. The Board may then provide direction as to Central San's position on the legislation. Staff has reviewed pending legislation and worked with member associations to identify possible direct impacts on Central San. The process to create and pass legislation is constantly in flux; the priority legislation presented in this Position Paper represents the most confident analysis and due diligence research at this time. As new information becomes available, it will be presented at future Board meetings. May 6, 2021 Regular Board Meeting Agenda Packet- Page 181 of 239 Page 2 of 2 A priority legislation tracking sheet for Board review and input will be sent prior to the Board meeting with the latest information. Staff will discuss several of the priority items at this meeting and expand on others in the coming weeks as more information becomes available. ALTERNATIVES/CONSIDERATIONS The Board may choose from the following positions on each piece of legislation: • Support • Support if Amended • Neutral • Oppose Unless Amended • Oppose FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION If applicable, take one of the following actions on Priority Legislative Tracking Sheet or another legislative matter: 1. Adopt staff recommended position(s) on the priority legislation; or 2. Adopt a different position on one or more pieces of the priority legislation; or 3. Take no action. Strategic Plan re-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation May 6, 2021 Regular Board Meeting Agenda Packet- Page 182 of 239 Item15. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 (Handout) Green Shading- bill enacted, Attachment 1 Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Priority List/Position Staff A L 1 State Portantino(D-La Proposed Wildfire SB 45 Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection California Association No position No position 02/18/21 5/3/21 Held in Senate Appropriations Suspense Canada Flintridge) Bond prevention, safe Bond Act of 2022— of Sanitation Agencies File.4/15/21 Hearing set in Senate Governance Measure SB drinking water Authorizes the sale of$5.51 billion in general obligation bonds. (CASA): Support if and Finance Committee.4/8/21 Authors 45 drought $2.20 billion,wildfire prevention and community resilience Amended to include amendments.2/8/21 This is a reintroduced bill preparation and $1.47 billion, protection of California's water supply and water quality additional monies from previous session. flood protection $620 million, protecting fish and wildlife from climate risks requested for recycled bond act of 2022 $190 million, protecting agricultural land from climate risks water, etc. aka CA Climate $970 million, protecting coastal lands/oceans/bays/waters/natural resources/wildlife from climate Bond (if passed risks will be placed on $60 million, climate resilience,workforce development, and education Nov. 2022 ballot). 2 State Hertzberg SB 273 Stormwater This bill authorizes municipal wastewater agencies to enter into voluntary agreements with Co-sponsored: CASA Support Support 02/18/21 4/22/21 Passed Senate 38-0. Moved to (D-Van Nuys) Capture and entities responsible for stormwater management—including municipal, industrial, and and California Assembly.4/19/21 Senate Appropriations Diversion commercial stormwater dischargers—to more effectively manage stormwater and dry weather Coastkeeper Alliance Hearing Set.4/12/21 Passed from Senate Authority runoff. The bill supplements the existing authority of all municipal wastewater agencies to enter (CCA) Environmental Quality Committee 7-0. 1/23/20 into projects to divert and treat stormwater and dry weather runoff.Any agreement, project, or Unanimous decision by CASA Legislative use of this authority is completely voluntary for all entities involved. The bill will therefore Committee to move forward with compromise bill promote regional interagency cooperation, improve water quality, and make efficient use of with Hertzberg. 2/8/21 This is a reintroduced bill publicly owned infrastructure by removing onerous barriers that prevent stormwater capture, from previous session. treatment and recycling. 3 State Newman (D-Brea) SB 289 Solid waste: This bill would conduct a study on the disposal and recyclability of household batteries, including Co-sponsored: Support Support 02/18/21 4/27/21 Passed Senate Judiciary Committee 9- household their impact on solid waste landfills, health impacts, associated costs, and now include lithium- California Product 2.Sent to Senate Appropriations Committee. batteries ion and nickel metal hydraide to those studied (a change from the 2020 proposed legislation). Stewardship Council 4/12/21 Passed from Senate Environmental This is an extended producer responsibility bill and our HHW supervisor requested support. (CPSC), South Quality committee 5-2.4/5/21 Amended. 2/8/21 Bayside Waste This is a reintroduced bill from previous session. Management Authority, and Californians Against Waste(SBWMA) 4 State Bloom (D-Santa AB 818 Nonwoven This bill would require, commencing July 1, 2022, certain nonwoven disposal products to be Co-Sponsored: CASA Support Support 02/18/21 5/5/21 Passed Assembly Appropriations Monica) disposable labeled clearly and conspicuously to communicate that they should not be flushed, as specified. and National Calendar and put on Assembly Consent products The bill would establish enforcement provisions, including authorizing a civil penalty not to Stewardship Action Calendar.4/13/21 Passed from Assembly exceed$2,500 per violation to be imposed on a person who violates the bill's provisions. The bill Council (NSAC) Judiciary Committee 11-0.4/7/21 Passed from provides that the industry conduct a 5 year customer education campaign on the labeling.This Assembly Environmental Safety and Toxic bill would not apply to currently labeled"flushable wipes", but is a positive first step in tackling Materials Committee 9-0. 2/17/21 Bill in print. the issue legislatively. This is the third attempt to pass this legislation. This bill represents an 2/8/21 This is a reintroduced bill from previous agreement with the industry. session. 5 Federal Representative TBD, S. 984 Break Free From These bills require producers of covered products to finance programs to collect and process the Support: CASA, Support Support 02/18/21 3/25/21 Companion bill on Senate side introduced Lowenthal (D-CA), companion Plastic Pollution plastic product waste and implement cleanup programs with EPA approval. The bill would create NSAC and referred to Senate Finance Committee. 2/8/21 Senator Merkley(D• bill Act a 10-cent national refund program for all beverage containers regardless of material. Beginning This is a reintroduced bill from previous session. OR) January 2023, it would begin to phase out single-use plastic products and impose a fee on carryout bags. It would create a national standard for recycled content, and protect existing state action. CASA included language that includes wipes as part of the bill. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 Green Shading- bill enacted, Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Notes Priority List/Position Staff 6 State Gabriel (D- AB 59 Mitigation Fee Act This bill may eliminate the ability for agencies to assess connection and capacity fees using a CASA: Oppose Watch Watch 3/18/21, 4/14/21 This bill is likely dead. 3/17/21 Woodland Hills) 2021 "buy-in"fee methodology, and would instead require connection and capacity fees to be strongly. Oppose Unle& Oppose 02/18/2021 Amendments made that remove Assembly Majority assessed based on the actual costs of new development. The bill is being spearheaded by Amended Unless capacity/connections fees. No impact to Whip housing advocates that cite high development fees as an impediment to new housing. Official Amended Water/Wastewater. 2/8/21 This is a reintroduced bill summary states: Prohibits a local agency from imposing a housing impact requirement bill from previous session. 1/28/21 CASA,ACWA, adopted by the local agency on a housing development project, as defined, unless specified CMUA and CSDA have a working group to requirements are satisfied by the local agency, including that the housing impact requirement be address this bill. roughly proportional in both nature and extent to the impact created by the housing development project. 7 State Dodd (D-Napa) SB 222 Water Affordability This bill would establish the Water Affordability Assistance Fund in the State Treasury to help CASA:Watch, Watch Watch 02/18/21 5/3/21 Re-referred to Senate Appropriations Assistance provide water affordability assistance,for both drinking water and wastewater services,to low- Association of Clean Committee.4/29/21 Passed Senate Program income/economic hardship ratepayers in California.The bill would make moneys in the fund Water Agencies Environmental Quality Committee 5-2.4/20/21 available upon appropriation by the Legislature to the state board to provide, as part of the (ACWA): Watch (both Re-referred to Senate Environmental Quality Water Affordability Assistance Program established by the bill, direct water bill assistance, water will reconsider position Committee.4/12/21 Passed as amended from bill credits,water crisis assistance, affordability assistance, and short-term assistance to public at a future legislative Environmental Quality Committee.4/5/21 water systems to administer program components.The bill would require the water board to meeting Additional authors amendments. 1/14/21 develop guidelines/oversight procedures/budget by January 1, 2023. Introduced. To the extent this provision would impose new requirements on local publicly owned electric utilities and local publicly owned gas utilities, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, however, no funding has been identified yet in this bill. 8 State Rivas(D-Hollister) AB 377 California Clean The bill is sponsored by Coastkeeper and makes significant changes to NPDES permitting CASA: Oppose Oppose Oppose 02/18/21 4/21/21 Passed Assembly Environmental Safety Principle Co-Author: Waters Act procedures, creates a new enforcement program, and requires all surface water in California to and Toxic Materials Committee 5-3.4/14/21 Hertzberg be drinkable,fishable, and swimmable by 2050. The intent is to address chronic contamination Central San+DSRSD Staff met with (D-Van Nuys) of impaired receiving waters. Assemblymember Bauer-Kahan staff to discuss bill concerns.4/13/21 New amendments in print. 4/3/17/21 Staff continues to work with the author on amendments(two sets so far)that are baby steps to move this bill in a more positive direction. 2/2/21 Introduced. 9 State/Fe Garamendi (D-CA) H.R. 535 Include Special These two identical bills would amend the Social Security Act to include special districts in the California Special Support Support 02/18/21 4/8/21 This bill directly will not go through, deral Sinema(D-AZ) Districts in COVID coronavirus relief fund and directs the Secretary to include special districts as an eligible issuer Districts Association however the concept is moving forward relief under the Municipal Liquidity Facility (CSDA): Support through a State vehicle. Central San signed on to a coalition letter to the Governor to include special districts in COVID relief funding. 2/3/21 17 CA Co-sponsors including McNerny and DeSaulnier. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 Green Shading- bill enacted, Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Notes Priority List/Position Staff 10 State Rivas(D-Hollister) AB 361 Brown Act: The bill allows local agencies to meet remotely during a declared state or local emergency. It CSDA: Sponsor Support Support 02/18/21 5/5/21 Hearing in Assembly Local Government Remote Meetings would remove the requirement for agencies to post meeting notices/agendas in physical Committee.4/6/21 From Assembly rereferred to During locations during an emergency.While the public must continue to have access to the remote Assembly Local Government Committee with Emergencies meeting and provided the ability to make public comment, this bill states agencies would not be authors amendments. 2/8/21 Request from CSDA required to make all remote meeting sites accessible to the public, nor include the remote to provide letter of support. location details in the meeting notice or agenda during a declared state of emergency or a declared local emergency.Additionally, agency board members would not be required to be at remote sites within the territorial bounds of the agency during a declared state of emergency or a declared local emergency 11 State/ Garcia(D-Bell AJR 4 Support This joint resolution would declare California to be in favor of the United States' ratification of the Support: CPSC Support Support 02/18/21 4/28/21 Re-referred to Senate Environmental Federal Gardens) Ratification of Basel Convention at the earliest opportunity and would request the Biden Administration to Quality Committee.4/5/21 Passed by Assembly. Basal Agreement accomplish this ratification as a matter of urgency. The Basel Convention resolution on the 4/5/21 Coauthors revised-Adopted by Assembly Control of the Transboundary Movements of Hazardous Wastes and their Disposal (1989)was (60-0). 2/8/21 Request from CPSC to join letter of signed but never ratified by the United States.The United States is now one of only a few support. countries that have failed to ratify this vital multinational environmental agreement to protect developing countries from the export and dumping of wastes from rich industrialized countries. According to the journal Science Advances the United States and Great Britain are the world's biggest source of plastic waste. In 2019, the Basel Convention was amended to include mixed and contaminated plastic waste shipments within its control procedure to address the problem of plastic waste collected for recycling in industrialized nations and sent to highly polluting recycling operations in developing countries. In these locations, the plastic waste is often dumped and burned rather than safely recycled.As of January 1, 2021, such exports will require the notification and consent of receiving countries prior to export. However,the United States, not being a Basel Party will not be able to legally export wastes, which are illegal for the importing country to receive, leading to illegal traffic, seizures, lawsuits, and waste repatriation events. Plastic pollution is a growing global concern. 12 State Caballero(D- SB 323 Water or Sewer This ACWA sponsored measure sets the statute of limitations to challenge water and Sponsor:ACWA, Support Support 03/04/21 4/22/21 Senate second reading to third.4/20/21 Merced) Service: Legal sewer rates and changes to be the same 120 day currently placed capacity and connections Passed Senate Judiciary Committee 10-0. Actions charges. By applying the same judicial actions, procedures and timelines, this bill would provide 3/25/21 Passed from Senate Governance and agencies with an expedited, conclusive, and binding determination about the validity of the Finance Committee(4-1). 3/2/21 CSDA staff agency's action. By obtaining a speedy resolution, the agency can act in reliance on the action, recommending support position. 3/11/21 Date for without the threat of lawsuits years later. Senate Governance and Finance Committee hearing. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 Green Shading- bill enacted, Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Notes Priority List/Position Staff 13 State Lee(D-San Jose) AB 339 Local This bill would amend the Brown Act placing new requirements on public agencies for their Oppose Oppose 03/04/21 5/4/21 This bill heavily amended in Assembly. Government: public meeting agendas, meeting materials, and meeting accessibility. Specifically, the bill will Watch Now only applies to cities/counties with over Open Meetings require that: •All meetings of a legislative body for a local public agency(governing board, 250,000 people. Special Districts removed from committee or subcommittee)or the state to include both a call-in and an internet-based service bill.4/14/21 No movement on this bill since option for members of the public to attend the meeting •The internet-based service option must introduction in late January. 3/5/21 With further provide closed captioning service staff review here would also be additional staffing •All meetings shall include an in-person public comment opportunity(whether the meeting is a required forever if we wanted to have all of our teleconference meeting or not) board meetings according to those requirements. •All agendas and instructions for accessing meetings must be translated into all languages for Letting people fully interact verbally over Teams or which 5%of the populations in the area governed by the local agency is a speaker Zoom would require having staff dedicated to • Persons commenting in person shall not have more time or in any other way be prioritized over running all that behind the scenes.Also, the closed persons commenting remotely via call-in or internet-based service captioning is an issue.We have a way to capture it • Instructions on how to attend the meeting via call-in or internet-based service shall be posted automatically word for word. But the punctuation online along with the meeting agenda in an easily accessible location (as drafted, likely in error, isn't good and it doesn't show who is saying what. this does not exempt those agencies without a website from this requirement) To do it right would require a human doing that as • Legislative bodies of local agencies shall employ a sufficient amount of qualified bilingual well. It is not clear if the closed captioning would persons to provide translation during the meeting in the language of the non-English-speaking also need to happen with translating but that would person, in jurisdictions which govern a substantial number of non-English-speaking people. "Non be problematic. 3/2/21 CSDA staff recommending English-speaking people" is defined as members of a group who either do not speak English, or oppose position. who are unable to effectively communicate in English because it is not their native language, and who comprise 5 percent or more of the people served by the statewide or any local office or facility of a state agency. •The provisions apply to local public agencies as well as the State. However,they do not apply to the California State Legislature in the same way. 14 Federal Congressmember H.R. 1352 Water It would create a WATER Trust Fund to deliver$35 million in dedicated funding for water Support Support 03/04/21 4/5/21 Referred to the Subcommittee on Lawrence(D-MI)& Affordability, infrastructure improvements,with a priority on disadvantaged communities. The bill would Conservation and Forestry. 3/2/21 Introduced. Khanna(D-CA) Transparency, provide the following: Senator Bernie Sanders(I-VT)has introduced Equity, and -Provides$34.85 billion a year to drinking water and wastewater improvements; companion legislation in the Senate. Reliability -Creates a water trust fund; (WATER)Act of -Creates up to nearly 1 million jobs across the economy and protect American workers; 2021 -Prioritizes disadvantaged communities with grants and additional support; -Expands funding for technical assistance to small, rural, and indigenous communities; -Funds projects to address water contamination from PFAS; -Requires US EPA to study water affordability, shutoffs, discrimination, and civil rights violations by water providers; -Upgrades household wells and septic systems; -Helps homeowners replace lead service lines; and -Provides more than$1 billion a year to update water infrastructure in public schools. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 Green Shading- bill enacted, Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Notes Priority List/Position Staff 15 State Hertzberg (D-Van SB 443 a .r Gut/Amended bill would require initiative and referendum measures to appear in the order in Neutral Neutral 4/15/21 4/12/21 Gut/Amended-not the same bill. Staff will Nuys) ",-:ewman-(Dwhich they qualify for the ballot.This b;;h Watch Watch 93/84/282't recommend Neutral position. 2/18/21 Introduced G"I Cl^ ;T -RequiFes (spot bill). Rerngi^+r vr�nrg+• n �r > and the State _Reard of Equalization nln..inn the GFiteri„ in AQ 84. S.B. 443, suGh as Gentral AL_QkA.9 Idistric-Aing map, would need to he eva-l-ated for ' AR-Fe.f.,.�i.,H..n i ed to^ ply with the fedeFal VOtinn Rights AGt" ni+i.,o Of in+.,rest a alysio The bill does not addFess the faGt that leGal julFiSdig-fiRA's dG;RE)t Y8t kROW WheR they Will Feceive 16 State Senator Glazer(D- SB 594 Elections: Local This bill would state the intent of the Legislature to enact legislation that would mitigate issues Support Support 4/15/2021 5/6/21 Senate Floor hearing. 5/3/21 Orinda) Redistricting surrounding the potential delay in the release of census data and the effect of that delay on local SuppeFt AmeRded SuppeFt if 02404=24 Amendments accepted in committee.4/20/21 redistricting. Census data is now delayed 6 months. ArReRded Central San Staff sent additional clarifying amendments to the committee staff that were subsequently accepted.4/12/21 Passed from Senate Elections and Constitutional Amendments Committee on (5-0)with District amendments. 4/5/21 Central San amendments in print and to committee. 3/26/21 Staff submitted two sets of amendments for inclusion in the 4/12/21 hearing. One set will provide relief only to Central San,the second set provides umbrella relief to all special districts that fall under a special or enabling act requiring a date for redistricting. 3/17/21 Staff working with a In its current form this bill would not provide relief to Central San under our current requirement under the CA Health and Safety Code to redistrict by November 1, 2021. Language to include Central San would be required to ensure the District falls within protections other agencies are afforded. 17 State Assemblymember AB 622 Washing This bill would require, on or before January 1, 2024, that all washing machines sold as new in CASA-Support, Support Support 03/18/21 5/3/21 Bill pulled -will be a two-year bill. Friedman (D- machines: California contain a microfiber filtration system with a mesh size of 100 microns or smaller. CASA may choose to 4/21/21 Committee hearing set in Assembly Glendale) microfiber filtration sponsor this bill Environmental Safety and Toxic Materials. 4/7/21 Hearing postponed by committee. Central San 2021 Priority Legislative Tracking Sheet as of 5/5/21 Green Shading- bill enacted, Gray Shading- bill is dead, White Shading- bill in progress Industry Position Federal/ Board Date of Board State Author Legislation Also Known As Summary Organization(s) Recommended by Decision Direction Notes Priority List/Position Staff 18 State Assemblymember ACR 17 Special Districts This measure proclaims the week of May 16, 2021, to May 22, 2021,to be Special Districts Sponsor: CSDA Support Support 03/18/21 Voepel (R-San Week Week. Diego County) 19 State Assemblymember AB 678 Housing Current law,the Mitigation Fee Act, imposes various requirements with respect to the CSDA: Oppose Watch Watch 04/01/21 4/14/21 This bill is likely to not move forward. Grayson (D- development establishment, increase, or imposition of a fee by a local agency as a condition of approval of a 4/1/21 CSDA will likely oppose. 3/25/21 Amended Concord) projects:fees and development project, including requiring a local agency, in any action establishing, increasing, or and rereferred to Assembly Local Government and exactions cap imposing such a fee, to determine how there is a reasonable relationship between the fee's use Housing and Community Development and the type of development on which the fee is imposed. This bill would make nonsubstantive Committees changes to this requirement. 20 State Assemblymember AB 602 Impact Fees: This bill would require, a local agency to produce a nexus study prior to the imposition of any 4/13/21 CASA Neutral Neutral 4/15/21 5/4/21 Amended and re-referred to Assembly Grayson D- Development impact fee or other exaction and that study be updated eve ry8 years and noticed 30 days in Neutral. 3/26/21 n.POS8 JR18SSoppose nn 401 Q02 I Appropriations Committee.4/14/21 Hearing set Concord) Fees Nexus advance before adoption. It would require that nexus study to identify the existing level of service Initially-CSDA, AFR8Rded URle6 in Assembly Local Government Committee. Studies for each assessed impact, identify the proposed new level of service, explain the level of metric CASA, California ArR8Rded 4/13/21 With Committee bill analysis, CASA will being used, and include a finding of why the new level of service is necessary. It would require State Association of remove opposition.4/6/21 Author's amendments that a fee levied or imposed on a housing development project by a local agency be Counties(CSAC), removed connection and capacity fee reference proportionate to the square footage of the proposed unit or units, and would seek to link local League of California and essentially remove special districts from this agency projects to a capital development or capital investment plan.Additionally, it requires the Cities(League), and bill. 3/25/21 Referred to Assembly Local Housing and Community Development Department to create an impact fee nexus study Urban Counties of Government Committee. 3/18/21 Spot bill that was template that includes a housing development feasibility study be included, and could very likely California (UCC): gut and amended to include connection and be produced on contract with the University of California's Terner Center. Oppose Unless capacity fees. CASA/CSDA/ACWA/CMUA and CASA/CSDA/ACWA/CMUA supported amendments to be proposed would likely include a total Amend other have joined a working group to highlight that exception for connection and capacity charges, deletion of any reference to"exactions", deletion it is constitutionally illegal to subsidize one of any linkage to a capital investment plan, deletion of the template created by HCD in favor of a customer class over another(Proposition 218). clearinghouse of nexus studies at the Governor's Office of Planning and Research, deletion of Connection and capacity fees are still include any square footage metric mandate in favor of an analysis in the nexus study explaining the use despite authors office saying that they would be of or non-use of square footage for a removed. particular metric, other technical and verbiage change requests. 21 State Senator Skinner(D- SB 95 COVID-19 This bill creates a statewide policy to allow employees access to 80 hours of COVID-19 Oppose: CAL No position No action 04/01/21 This bill was gut/amended on 3/15/21,went into Oakland) Supplemental supplemental paid sick leave retroactive from January 1, 2021 through September 30, 2021. 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R _--- •CIVIL/STRUCTURAL ENGINEERS n1 •MUNICIPAL CONSULTANTS Aguiar SURVEYWATER ERS RESOURCES • Te In In i s TRANSPORTATION BotANTC STAGECOACH INN MUSEUM ` Lori Raupes*` . 14RTNER FOR S�CCB April 8, 2021 The Honorable Gavin Newsom The Honorable Toni Atkins The Honorable Anthony Rendon Governor, State of California Senate President pro Tempore Speaker of the Assembly State Capitol, 1 st floor State Capitol, Room 205 State Capitol, Room 219 Sacramento, CA 95814 Sacramento, CA 95814 Sacramento, CA 95814 Re: COVID-19 Impacts– Fiscal Assistance for California's Independent Special Districts Dear Governor Newsom, Pro Tem Atkins, and Speaker Rendon: We, the undersigned organizations, strongly urge your Administration and the Legislature to extend special district local governments access to Coronavirus fiscal relief to help these vital units of local governments stabilize operations and impacts due to pandemic response. California's special districts have received no direct access to COVID-19 relief funding programs unlike other government entities: the state, schools, cities and counties. Special districts provide vital services that many cities and counties cannot, such as fire protection, health and wellness programs, and core infrastructure, including access to reliable water, wastewater, and electricity. These special purpose local governments are struggling under the burden of an estimated $1.92 billion collective unmet fiscal need since the March 2020 Emergency Proclamation and a projected $2.43 billion anticipated unmet fiscal need by December of 2021. 1) California has both the authority and the resources to assist the state's special districts. • Through the American Rescue Plan Act(ARPA), Congress has provided a flexible solution by explicitly empowering states with authority to transfer Coronavirus State Fiscal Recovery monies to special districts. We respectfully urge you to use this authority to its fullest extent and distribute a portion of our State Fiscal Recovery funding to California's special districts for the benefit of the millions of Californians they serve statewide. California's revenues are enough to share. The January 2021-2022 Budget Proposal reflected an unexpected revenue windfall of$15 billion—with major additional revenues indicated in February and March, of which billions are reported to be discretionary. Further, between the Coronavirus Relief Fund (CRF) and the American Rescue Plan Act, Congress has approved a projected $57.955 billion in relief funds to aid California and its local governments. Between these two funds, the State will have received a total $36.14 Billion in discretionary dollars to address COVID-19 impacts, with cities and counties receiving the other$21.8 billion in direct allocations from the federal government. • Dedicating a portion of these unanticipated one-time funds to address COVID-19 response impacts on special districts and the communities they serve is an appropriate use, consistent COVID-19 Impacts—Fiscal Assistance for California's Independent Special Districts Page 4 of 5 with the near$1.8 billion California previously distributed to cities and counties from its CRF funds. To date, Federal and State relief have appropriately focused on stabilizing individuals and families and on allocations to cities and counties directly involved in the pandemic response. These funds and programs have been and will continue to be essential, and we applaud your vigilance and recognition that more can be done. The time has come to also focus on special districts. • There is precedent that supports this request and your ability to grant it. Last year, the States of Colorado and Oregon included special districts in distributions of Coronavirus Relief Fund monies to local governments. We encourage California to follow their examples of distributing essential funding to special districts. 2) Many special district funding streams have been dramatically compromised due to pandemic response operations and, for some districts, expenses have skyrocketed to pay for mandated health and safety protocols for their frontline workers and the public they serve. The pandemic's fiscal toll on special districts and their communities is greater than previously expected, with many districts in the early months responsibly dipping into reserves to mitigate impacts. Reported revenue losses, unmet by federal or state relief programs, are most substantial among districts providing fire protection; healthcare and emergency services; community services and parks; ports, harbors, and transit; and utilities. • When special districts are excluded from relief, essential frontline workers and community residents are excluded from relief. As of February 5, 2021, 42 percent of special districts reported reducing essential services, and 33 percent reported reducing workforce due to COVID-19 response impacts. • Universally experienced special district impacts include deferred/delayed/cancelled infrastructure projects, increased workers compensation/FMLA/unemployment/overtime costs, and unbudgeted expenditures necessary to safely maintain operations, as well as public and employee health and safety. As public agencies, special districts were not eligible for COVID-19 relief programs, such as PPP, tax credits, and grants, provided to businesses and non- profits to address these impacts. • Other special district impacts vary depending on service type and primary revenue source. Examples include a staggering amount of past due water, wastewater, and electric bills (utilities); unprecedented losses in operational revenues due to restricted activities, rentals, and charges; loss of lease and other business enterprise revenues; overwhelming increased operational expenses and notable revenue losses due to pivoted services. 3) Special districts would utilize funding allocated by the state to benefit their residents, stabilize services, and boost the local economy. They would do this through reimbursing expenditures related to pandemic response; assisting their residents with utility arrearages; restoring services following a year's worth of losses; rehiring or boosting frontline workers with premium pay where appropriate; and investing in critical water, sewer, and broadband infrastructure— including many capital projects which have been delayed, deferred, or canceled due to the pandemic's fiscal impacts. In conclusion, we the undersigned implore you utilize the tools Congress has provided to transfer relief funds to special districts expeditiously, and to ensure these critical, essential service providers continue to provide uninterrupted services to our recovering communities. COVID-19 Impacts—Fiscal Assistance for California's Independent Special Districts Page 5 of 5 Collectively, A coalition of local government, business, non-profit organizations, and local stakeholders listed attached and available online here. CC: The Honorable Scott Wilk, Senate Republican Leader The Honorable Marie Waldron, Assembly Republican Leader The Honorable Nancy Skinner, Chair, Senate Committee on Budget and Fiscal Review The Honorable Jim Nielsen, Vice-Chair, Senate Committee on Budget and Fiscal Review The Honorable Phil Ting, Chair, Assembly Committee on Budget The Honorable Ving Fong, Vice-Chair, Assembly Committee on Budget The Honorable Mike McGuire, Chair, Senate Governance and Finance Committee The Honorable Cecilia Aguiar-Curry, Chair, Assembly Local Government Committee Committee Members, Senate Committee on Budget and Fiscal Review Committee Members, Assembly Committee on Budget Keely Bosler, Director, Department of Finance