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HomeMy WebLinkAbout19 - NB-3 - Staff Direction Regarding the City Rejoi - 2/17/2015CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 17, 2015 ITEM NUMBER: NB -3 SUBJECT: STAFF DIRECTION REGARDING THE CITY REJOINING THE LEAGUE OF CALIFORNIA CITIES DATE: February 3, 2015 FROM: CHIEF EXECUTIVE OFFICE PRESENTATION BY: DANIEL K BAKER, PUBLIC AFFAIRS MANAGER FOR FURTHER INFORMATION CONTACT: DAN BAKER @ (714) 754-5156 RECOMMENDATION: It is recommended that the City Council discuss and provide direction to staff regarding the City of Costa Mesa reactivating its membership with the League of California Cities. BACKGROUND/ANALYSIS: Currently, the City is an active member of the Association of California Cities Orange County, (ACCOC), which provides advocacy on behalf of the City for the protection of local control through legislative advocacy and education. With the upcoming budget process quickly approaching, Council Member Genis is seeking council support regarding the City becoming, once again, an active member of the League of California Cities, which also provides protection of local control through legislative advocacy and education. The League is an association of cities formed in the late 19th century to enable local communities to share best practices and knowledge and to discuss public policy, legislation, and other issues that may have positive or adverse impacts to local governments. Today, the League includes over 473 members (98% of all California cities) and provides policy advocacy services on behalf of cities regarding a wide assortment of issues such as the protection of local government revenues and the retention of local control. All except five cities of the 34 in Orange County (Anaheim, Costa Mesa, Orange, Tustin and Yorba Linda) are members of the League. Over the past ten years, the League has utilized its presence and influence in Sacramento to initiate or lead campaigns to protect local government revenue by directly participating in efforts to pass propositions (e.g., Propositions 90, 98, and 99.). Most recently, the League played in instrumental role in ensuring the passage of Proposition 22, a constitutional amendment preventing the State of California from seizing certain local funding, such as transportation funds, from local governments. Presently, the League continues its legal efforts to address issues such as the dissolution of redevelopment agencies and the protection of local sales and property tax authority (LCC v. Cohen). Under certain circumstances and generally when legislative compromise cannot be achieved, the League may elect to file an amicus brief or seek judicial remediation through the court system. Over the past year, the League has filed approximately 47 amicus briefs or letters with the court on behalf of all cities. Additionally, the League also tracks numerous bills during each legislative cycle. Staff utilizes this information to formulate initial recommendations regarding bills that may interest the City Council and are consistent with the City's adopted Legislative Platform. Along with its legislative advocacy and legal efforts, the League also provides leadership regarding various issues affecting local governments, such as public pension reform, through its policy committees. The League is proud of its history of advocacy and recent accomplishments and believes its services render substantial public benefits to its members. The League provides an annual assessment of its activities and a customized Investment Report to illustrate the net financial benefits its efforts have rendered. Specifically, the Investment Report details the City's return on investment, defined as local revenues protected by the League's advocacy efforts. By way of example, these efforts include, among others, local funds protected by the Vehicle License Fee Tax Swap, Proposition 22, and Proposition 42. Attached is the League's generated data regarding the City's potential recent return on investment if the City should renew its membership with the organization (Attachment 1). Membership in the League also provides the City with opportunities for enhanced education and participation relating to several policy issues. The League holds an annual conference and hosts various webinars and training seminars that act as venues for elected officials and staff to exchange ideas regarding policy problems and solutions. Examples of the training currently offered by the League include: performance management; ethics training; cross-cultural communication; organizational leadership; conflict resolution; and, strategic planning. The League also works to create resources (e.g., The Institute for Local Government) wherein elected officials and staff may access case studies and white papers regarding a variety of public policy issues to inform potential future decisions on a particular matter. In addition, the League also is divided into several departments based on professional disciplines; one such department is dedicated to City Clerks. This department resource provides the City Clerk's Office with important information relating to changes in election law, including an annual seminar dedicated to providing education regarding pertinent updates. Also, the City Clerk listserv, which is only available to members, provides a great wealth of information to the City Clerk relating to best practices. If Costa Mesa reinstated its membership, the City Clerk would have access to these (among other resources) offered by the League, or the City would be required to pay increased fees to participate in these training events. In addition, several times a year staff is attending League training sessions and paying much higher registration fees that would reduce if we were members. The League's membership 2014 annual report is attached for the City Council's broader information (Attachment 2). The City recently received an invoice from the League for its 2015 membership dues. The City's projected annual membership dues total $25,288 an amount that has not changed since Fiscal Year 2007-2008. The City's annual dues are calculated by a formula that considers population as the basis for assessment. In addition, the League requests $606.91 for litigation and legal expenses associated with its current efforts, specifically relating to ongoing litigation relating to redevelopment (League of California Cities v. Matosantos) and Senate Bill 71 (City of El Centro, et al. v. David Lanier, et al.). FISCAL REVIEW: The City's 2015 Membership Dues total $25,288 excluding an optional surcharge, totaling 2.4% of the membership dues ($606.91), which funds the League's legal efforts. If authorized, funding of $25,895 will be used from the contingency account for this fiscal year and funds would be budgeted in the City Council's proposed Fiscal Year 2015-2016 professional development budget. LEGAL REVIEW: There is no legal review required for this item. CONCLUSION: It is recommended that the City Council discuss and provide direction to staff regarding the City of Costa Mesa reactivating its membership with the California League of Cities. DANIEL K. BAKER THOMAS R. HATCH Public Affairs Manager Chief Executive Officer ATTACHMENTS: 1 League Investment Report 2 2014 League Annual Report Handout LEAGUE OF CALIFORNIA CITIES LEAGUE MEMBERSHIP -- A GREAT INVESTMENT Customized Return on Investment Report December 2014 COSTA MESA FY2005-06 FY2006-07 FY2007-08 FY2008-09 FY2009-10 F"Y2010-11 FY2011-12 FY2012-13 FY2013-14 F'Y2014-15 Total COSTA MESA's Dues 23,567 24,552 25,288 25,288 25,288 25,288 25,288 25,288 25,288 25,288 225,135 �4�'a ,s�l... ✓;�S t 3«.... ; VLF/PropertyTaxSwap �'� 382,604 1,015,645 1,810,291 2,658,718 3,051,479 3,275,248 2,957,901 3,075,925 3,328,644 3,347,831 24,904,284 Prop. 42 (local streets) 505,757 831,372 0 981,938 1,077,879 -} . 11 d} .5 b _ 3,396,946 HUTA state taking blocked 1,846,872 a Z, b b 1,846,872 HUTA and Prop. 42 protected by Prop. 221zi 2,644,903 3277,043 2,749,407 3,409,612 2,913,782 14,994,748 Property Tar loan securitized / prohibited by Prop. 221' 3,270, I52 3,270,152 VLF shift prohibited by Prop. 224' 475,234 475,234 SB89 VLF Shirt -413,357 -404,429 -412,144 421,113 -1,651,043 Redevelopment Tl protected by Prop. 22 3,509,484 3,509,484 Redevelopment Disolution (net of RODS) i5� >>> -8,105,405 <<< <<< -8,105,405 Police Grants - Supplemental Budget 0 Pre -2004 ,Mandate Claims payment 14.3,691 143,691 Total Return 888,361 1,847,0171 1,810,2911 3,640,6561--9,246,3821 9,904,870 5,821,587 -2,684,501 6,326,1121 ,840,500 42,641,273 ���i,�.'aW..�.�. .$s.b: .,k`Sr�P,��§;.. '. L``}`a,,p .. .. .. .... ......... Y. .. . ,< .,, _. _.�: .. 'd! u$... 's�Yed a%WA ,.. i �., TWA s�.' k. ,tea.. ,. .v Ta�%�]A�;? w�t� Rate of Return 38:1 75:1 72:1 144:1 366:1 392:1 230:1 -106:1 250:1 231:1 189: i 1. Net gain in revenues by virtue of the VLF/Property Tax Swap. Growth in Propiax in Lieu of VLF versus estimated growth in VLF had it remained. 2. Prop. 22 ended the Legislature's ability to borrow or delay HUTA and Prop. 42 gas tax funds. 3. Prop. 22 ended the Legislature's ability to borrow local property taxes. The FY09-10 loan was securitized. Under Prop1A('04) another borrowing could have occurred in 3 years. 4. Prop. 22 ended the Legislature's ability to shift revenue allocations from the 0.65% state Vehicle License Fee. 5. Actual recivelopment TI from RPTTF returned to affected taxing agencies other than the city through Sept 2013. Our mission is to expand and protect local control for cities through education and advocacy to enhance the quality of life for all Califomians. Attachment'2 teague of.calbrnia Cities 2014 ANNUAL REPORT The League by the Numbers Each year, the League of California Cities sets a course of action to meet the challenges facing California cities. The organization's staff works closely with elected and appointed city officials to influence state and federal policies affecting California cities and to create substantial educational programming. In 2014, the League achieved success in the Legislature and the courts, and it engaged thousands of city officials through regular publications, in-person conferences and meetings, webinars, Listservs and other in-depth resources. It is difficult to encapsulate all of this year's achievements, but a look at some hard numbers shows the ways in which the League effectively advocated for cities while educating and informing League members. This snapshot only begins to tell the story. Legislative- Education 2,531 bills introduced, of which the topics, P� League .. • 25 webinars on a wide range of to i g g a .' monitored, tracked and engaged on 1,124. = 23 of them legislative and 2 legal. • 45 city official meetings with legislators and `` • 3,500 webinar sites, often with more 2#531 legislative staff arranged by League staff. 2,050 than 10 participants per site. BILLS • 483 members combined from 8 total policy ANNUAL • 7 professional department meetings with committees, which met 3 to 4 times. CONFERENCE more than 2,000 attendees combined. INTRODUCED ATTENDEES • 132 alumni of the League's California Civic • 2,050 Annual Conference attendees. Leadership Institute® between 2005 and 2014. • 270 Expo exhibitors, including 90 first-time exhibitors. g Le a 1 lawsuit in which the League is a named r Membership petitioner on behalf of cities (LCC v. Cohen), to p 473 member cities -- 98% of all protect local sales and property tax authority. California cities. �a .. 47 AMICUS 1 lawsuit in which the League is providing 261 member cities participated in the BRIEFS partial financial and legal support (City of 261 member second-annual litigation surcharge he F! Centro v. Lanier), to protect the contract 473 55% of member cities. powers of cities. MEMBER 48 • 47 friend -of -the -court (i.e. amicus) briefs and CITIES board members and 4 officers re letters approved for filing between November representing the diversity California's Le 2013 and October 2014. large and small cities, the League's 16 regional divisions and 10 municipal Information departments. 115 CA Cities Advocate newsletter issues sent 132 current League Partners. M with an average of 36 articles per month. New Resources to Assist Cities 24,000 average monthly hits to California Municipal Financial Health 24,000 www.cacities.org.—� Diagnostic Tool. WEBSITE • 5,000 Twitter followers. - 2014 Local Streets and Roads Needs HITS • 2,200 Facebook likes. 2,200 Assessment. • 12 issues of Western City magazine published, RESOURCES • Cap -and -Trade web portal with fact totalling 384 pages. DOWNLOADED sheets, funding opportunities and events. • 13,000 average month] hits to MONTHLY g Y Reengineered League App launched for wwwwesterncity.com. the 2014 Annual Conference. • 38 new Institute for Local Government (ILG) resources including case studies, LLEAGUE' League of California Cities® tip sheets and white papers. OF CALIFORNIA 1400 K Street, Suite 400, Sacramento, CA 95814 0 2,200 ILG resources downloaded CITIES Phone: (916) 658-8200 1 www.cacities.org monthly from www.ca-ilg.org.