JANUARY 2019 |
The Monthly Magazine of the League of California CitiesÂŽ
ÂŽ
2018 Legislative and Ballot Year in Review p.9 Transitioning to Districts and Sustaining Effective Governance as a Council p.6 La Quinta Transforms Its Workplace Culture to Better Serve the Community p.23
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CONTENTS 2 Calendar of League Events 3 Executive Director’s Message After the Campaign Is Over: Aim for Exceptional
By Carolyn Coleman
wo-thirds of Americans surveyed in T a 2018 poll had a favorable opinion of their local government. The public will continue to look favorably on local government and a functioning local democracy if newly elected and re-elected mayors and council members embrace the attributes of exceptional councils.
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City Forum
Transitioning to Districts and Sustaining Effective Governance as a Council
By Randi Kay Stephens
ollowing the move from at-large to F district-based elections, Concord’s city officials and staff wanted to be proactive in establishing governance norms. This article outlines key issues related to the transition and how the city approached them.
2018 Legislative and 9
Ballot Year in Review
By Dan Carrigg
allot measure-related activities B dominated much of the year for the League. Other areas of focus included successfully advocating for homelessness funding and defending local control on a number of fronts.
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23 California Cities Helen Putnam Award for Excellence
La Quinta Transforms Its Workplace Culture to Better Serve the Community
he city set out to create an T energetic and engaged workforce and foster a culture of creativity, innovation and passion.
Safety Liquidity Yield
Job Opportunities 24 Professional Services 30 Directory
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On the Record
Council members reveal what they wish they had known when they were first elected. Cover image: KingWu
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President Jan Arbuckle Council Member Grass Valley
1400 K Street Sacramento, CA 95814 (916) 658-8200 Fax (916) 658-8240
Second Vice President John Dunbar Mayor Yountville
Immediate Past President Rich Garbarino Council Member South San Francisco
Executive Director Carolyn Coleman
For a complete list of the League board of directors, visit www.cacities.org/board.
Magazine Staff Editor in Chief Jude Hudson Lemons, Hudson + Associates (916) 658-8234; email: editor@westerncity.com Managing Editor Norman Coppinger (916) 658-8277; email: ncoppinger@cacities.org Contributing Editor Eva Spiegel (916) 658-8228; email: espiegel@cacities.org Advertising Sales Manager Pam Maxwell-Blodgett (916) 658-8256; email: maxwellp@cacities.org Administrative Assistant Savannah Cobbs (916) 658-8223; email: scobbs@cacities.org Contributors Rony Berdugo Erin Evans-Fudem Charles Harvey Dane Hutchings Corrie Manning Jason Rhine Kayla Woods
leaguevents January 16–18
New Mayors and Council Members’ Academy, Sacramento This vitally important training prepares newly elected officials for the demands of office and introduces them to the legal constraints on city councils.
17–18
Policy Committee Meetings, Sacramento The League’s policy committees review issues of interest to cities statewide and make recommendations to the League board of directors.
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Legal Advocacy Committee Meeting, Sacramento The committee reviews and recommends friend-of-the-court efforts on cases of significant statewide interest to California cities.
30–February 1
New Mayors and Council Members’ Academy, Irvine This vitally important training prepares newly elected officials for the demands of office and introduces them to the legal constraints on city councils.
Associate Editors Carol Malinowski Carolyn Walker Design Taber Creative Group
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For photo credits, see page 26. Western City (ISSN 0279-5337) is published monthly by the League of California Cities, 1400 K St., Sacramento, CA 95814. Subscriptions: $39.00/1 year; $63.00/2 years; student: $26.50; foreign: $52.00; single copies: $4.00, including sales tax. Entered as periodical mail January 30, 1930, at the Post Office, Los Angeles, CA 90013, under the Act of April 13, 1879. Periodical postage paid at Sacramento, Calif.
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First Vice President Randon Lane Council Member Murrieta
League of California Cities
City Managers’ Conference, San Diego Geared to the unique needs of city managers, this conference covers issues affecting cities throughout California.
21–22
Board of Directors’ Meeting, Grass Valley The League board reviews, discusses and takes action on a variety of issues affecting cities, including legislation, legal advocacy, education and training and more.
MARCH 6–8
Planning Commissioners’ Academy, Long Beach Tailored to meet the needs of planning commissioners, planning directors, planning staff and other interested officials, the academy offers sessions on the major planning and land-use issues facing cities.
28–29
Policy Committee Meetings, Costa Mesa The League’s policy committees review issues of interest to cities statewide and make recommendations to the League board of directors.
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Legal Advocacy Committee Meeting, Costa Mesa The committee reviews and recommends friend-of-the-court efforts on cases of significant statewide interest to California cities.
www.cacities.org
Executive Director’s Message by Carolyn Coleman
After the Campaign Is Over:
Aim for
Exceptional The 2018 midterm election cycle was one of the most divisive, polarizing and competitive election cycles in recent U.S. history. And Election Day came on the heels of an extraordinarily contentious battle over filling a Supreme Court seat — a clash that left some wondering if democracy had reached a new low. The November ballot in California included 11 statewide ballot initiatives, with proponents and opponents of those measures contributing over $368 million to win. In addition to voting on ballot measures, California voters elected Assembly and Senate members, a new governor, lieutenant governor, treasurer, controller and superintendent of public instruction, among others. Golden State voters also re-elected Sen. Dianne Feinstein (D-Calif.) for a sixth term and sent 53 returning and newly elected members to the U.S. House of Representatives, where Democrats captured the majority.
Election Day also saw significant action at the local level, where hundreds of Californians ran for local government offices, including city council, mayor, sheriff and more. Besides electing local leaders, California voters weighed in on 386 local tax and bond measures and approved over 300 to support local public services and facilities for police, fire, housing, parks, transportation and schools.
Campaigns and Sharp Contrasts Campaigns and elections, at their core, often accentuate what divides us. They are designed to set a given candidate or issue apart from another. In a campaign, candidates strive to present their positions on policy issues or problems as sharply contrasting with those of their opponents. It’s all part of the effort to persuade voters and win their votes.
At the municipal level, this can take on a highly personal tone, as local officials regularly find themselves campaigning against an opponent who is also their neighbor or fellow council member. He or she may shop at the same grocery store as you, may attend the same place of worship and visit the same commercial establishments and local farmers markets. Your children may even attend the same school. In other words, your opponent is often no stranger.
Moving From Campaigning to Collaborating However, after the campaign is over, the final ballots have been counted (which may take several weeks) and the oaths of office taken, your constituents — those who voted for you and those who may not have — expect their officials to faithfully and impartially perform and discharge the duties of their office according continued
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Western City, January 2019
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After the Campaign Is Over: Aim for Exceptional, continued
to the law and the best of their ability, as the oath of office requires. These duties include collaborating with council colleagues (and sometimes former opponents) and others in City Hall to: • Protect the public’s safety; • Improve the quality of life by effectively delivering essential community services; • Grow the local economy; • Create jobs; • Be a responsible steward of public resources; and more. Campaigns may highlight our differences; however, after every election, thousands of elected city officials make the transition beyond divisive campaign rhetoric to effective governance and carry out the duties that voters expect them to fulfill. This transition is a hallmark of a functioning democracy. And presumably that is why, according to a 2018 Pew Research report, two-thirds (67 percent) of Americans surveyed had a favorable opinion of their local government, compared with only one-third (35 percent) who viewed the federal government favorably. When writing this column, I thought about my time serving as director of the Department of Metropolitan Development for Indianapolis and later as deputy mayor under former Mayor Bart Peterson. In a partisan election system, Peterson was the first Democratic mayor elected since 1967 and would share governing with a 29-member city-county council led by a Republican majority. Peterson wasted no time transitioning from candidate to mayor of the nation’s then-12th largest city. He turned his attention to carrying out his campaign promises, which included improving the delivery of services to all neighborhoods. This soon became the focus of my role in the administration. Like Peterson, I quickly realized there were no Republican or Democratic potholes, just dangerous potholes that constituents expected the city to repair. Immediately after the election, the mayor began visiting diverse neighborhoods throughout the city to meet with residents,
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some of whom had voted for him and others who had not, to understand their priorities and what they needed from their local government. While not every neighborhood leader agreed with his priorities, they were included in the decisionmaking process regardless of how they had voted. Peterson was also inclusive in his outreach and collaboration with all city-county council members — four who were elected at large and 25 who were elected in districts; some were Republicans and others were Democrats. Although local government races in California are nonpartisan, it can still be challenging to put aside the competitive mindset after the election is over and work together as a cohesive team to do what’s best for the community.
gically as it examines issues and situations and decides on a course of action serving the city’s mission and goals. Exceptional councils have clear roles and responsibilities that are understood and adhered to. Exceptional councils understand their role is to serve as policymakers — to represent the community’s values, beliefs and priorities while serving in its best interest. They carry out a variety of responsibilities, including: • Developing and adopting a vision for the city; • Focusing and aligning plans, policies, agreements and budgets to advance this vision; and • Holding themselves and the city manager accountable for results.
The Qualities of Exceptional Councils As we move beyond the 2018 midterm election cycle, I believe the public will continue to look favorably on local government and a functioning local democracy if newly elected and re-elected mayors and council members embrace the following attributes of exceptional councils. Exceptional councils develop a sense of team — a partnership with the city manager to govern and manage the city. The mayor, council members and city manager see themselves as a team in a joint endeavor as they undertake a series of tasks to achieve their common purpose. The individual team members work in a coordinated and collaborative manner with a high degree of respect, trust and openness. The team values diversity in styles and perspectives, and it thinks and acts strate-
Exceptional councils treat each other and staff with dignity and respect. www.cacities.org
After every election, thousands of elected city officials make the transition beyond divisive campaign rhetoric to effective governance.
Exceptional councils understand that the city manager is responsible for the city’s day-to-day operations and for undertaking and accomplishing the council’s policy objectives. The exceptional council recognizes the subject matter expertise of staff and uses that knowledge and experience to guide and inform decisionmaking. Exceptional councils honor the relationship with staff and each other. Such councils understand that a good working relationship with staff is vital for the city to be run successfully. Exceptional councils treat each other and staff with dignity and respect. They act with civility and a high level of professional decorum. Council members build trust by not playing the “gotcha game” and strive to take a “no secrets, no surprises” approach as the
operating norm. Finally, they respect the diversity of styles and perspectives among their colleagues and staff and are open to new ideas.
Toward that end, exceptional councils consistently provide short- and long-term strategic direction and goals as well as budget, program and policy oversight.
Exceptional councils routinely conduct effective meetings. Open and public meetings are central to democratic decisionmaking. Exceptional councils master the art of effective meetings. They:
Exceptional councils hold themselves accountable for their conduct, behavior and effectiveness. They establish clear priorities and goals and hold the city manager accountable for results. And finally, they embrace accountability as a process and tool to calibrate ongoing efforts to address and meet policy and program objectives.
• Develop and adhere to meeting protocols and processes; • Spend time planning and organizing the agenda with the aim of having a focused meeting; • Allocate the council’s time and energy appropriately, focused on its role and responsibilities and on meeting shortand long-term priorities; and • Honor the public’s participation and engagement. Such meetings generally start on time and are held during reasonable hours. Exceptional councils use public meetings not only for their intended purpose, information sharing and decisionmaking, but also as an opportunity to demonstrate respect and civility for each other, staff and the public. The council members review the necessary materials and prepare ahead of the meeting. They stay focused on the city’s goals and objectives and remain mindful of their role and responsibilities. Exceptional councils hold themselves and the city accountable. They operate openly and ethically and work to engage residents in myriad decisions affecting the community’s prosperity and well-being.
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Exceptional councils have members who practice continual personal learning and professional development. Governance is not intuitive. In addition, the policy and economic environments impacting cities are ever changing. Exceptional councils continually find ways to build their knowledge and skills, enhance their understanding of key issues, increase their awareness of best practices and sharpen their leadership and governance skills. This material is drawn from resources provided by the Institute for Local Government. For more information on effective governance, visit www.ca-ilg.org/effectivegovernance.
Focusing on What Unites Us Leading in a post-election environment can be challenging, but our democracy depends on it. As the League’s executive director, I am inspired every day by the efforts of city managers, council members, mayors and city staff to bridge what divides us and to focus instead on the ties that unite us as individuals and communities. ■
Western City, January 2019
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Transitioning to Districts and Sustaining Effective Governance as a Council by Randi Kay Stephens Concord (pop. 129,159) is a general law city located in the east San Francisco Bay Area. In 2018, Concord transitioned from a city council whose members were elected at large to districtbased council seats. The city conducted its first district-based election in November 2018.
Background The California Voting Rights Act (CVRA) of 2001 seeks to ensure that every community has an opportunity to elect candidates of their choice in local elections, and the law was updated in 2015 to provide that “a voter who is a member of a protected class may bring an action in superior court to enforce the provisions of the CVRA.” Many cities throughout California with populations and demographics similar to Concord subsequently faced legal challenges based on the CVRA and switched from at-large elections to district-based elections. As a result, Concord’s city leaders anticipated that Concord might find itself in a similar situation. In late 2017, the city received two letters from attorneys regarding the CVRA’s provisions. The city council responded by voting in January 2018 to transition to district-based elections and approved a new districts map in March 2018. Following the move to district-based elections, Concord’s city officials and staff wanted to be proactive in establishing governance norms. Concord City Manager Valerie Barone says, “The council and staff had met the requirements of the CVRA. Now there was time to strategize about impacts, expected or perceived, to the governance of Concord. Transitioning to districts does not necessarily mean that the council has to change the way it engages the public or works with staff — but there seemed to be both
pressure and expectations for change. The council and city management wanted any governance changes to be thought through and supported.”
Addressing Potential Impacts Though the city council and staff alike were committed to a “One Concord” philosophy, they were also concerned about potential impacts of the transition to district elections, including: • Norms — How could the council build upon and develop norms in this new paradigm? • Governance philosophy — Would the transition require the council to create a new governance philosophy or norms to govern its decisionmaking process? • Policy impacts — What impact, if any, would district-based elections have on the city’s policies and protocols, such as the procedure for appointing committee members? • Teamwork — Could the council continue to work as a cohesive team through this transition? • A potential pull toward district-based priorities — Would there be pressure to concentrate on individual districts? How could leaders remain focused on the city as a whole? • A fair and inclusive process — What would be the best way to address specific concerns of a district’s constituents? How and when should items be raised to the entire council to ensure awareness of issues that may have citywide impacts?
Randi Kay Stephens is associate program manager for the Local Government Basics program of the Institute for Local Government and can be reached at rstephens@ca-ilg.org.
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www.cacities.org
City Managers: Learn More About This Topic in February Don’t miss the Institute for Local Government session at the City Managers’ Conference in San Diego, Feb. 13–15, 2019, on “District Elections and the Potential Impacts on Local Governance.” This session will focus on the challenges city managers face when evaluating the switch to district-based elections and will offer tips on how city managers can help ensure local governance meets the needs of all residents. Find more information at www.cacities.org/education-events/ city-managers-conference.
Key Determinations Staff set out to research the experiences of other California communities related to the changes that occurred since transitioning to district-based elections; however, they found very little in the way of academic research or best practices on the topic. As a result, the city council and executive staff engaged the Institute for Local Government to facilitate a workshop to discuss these concerns and strengthen the council’s vision and norms. The discussions generated these key determinations: • Continue to conduct an annual goal-setting workshop to develop citywide priorities and adhere to the priorities throughout the year. As opportunities, challenges or emerging issues arise, determine as a council if the issue aligns with the established priorities and commitments or if a discussion on changing priorities needs to occur. • Focus on the city as a whole. Continue to allocate city resources throughout municipal boundaries, not by district, because all residents use roads and access essential services while living, working or moving through the city. • Inform the public about the city’s governance structure, protocols and practices. Host and publicize community leadership classes on city governance. These courses provide in-depth education about the municipal structure and services for residents who want to be more civically engaged. The classes also help educate residents who may opt to become a candidate for council or apply for a board or commission seat. • Develop future policymakers through comprehensive “onboarding.” Engage in robust onboarding for newly elected and appointed officials so they are prepared to work with the council and to serve the city as a whole.
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• Provide candidate training. Engage potential leaders through candidate training; be transparent about how the election process works and the role of staff related to elections. • Communicate clearly about the council-city manager form of government and the roles and responsibilities of city staff and council. Continue to work through the council-manager form of government to ensure that direction is provided to staff through the manager’s office, all council members have equal access to information, and decisions are made by the council as a whole (not individual council members).
Going Forward After the 2020 census, the City of Concord will review its district maps again. City Manager Barone says, “The council will have more time to be thoughtful about governance impacts and the experience of the full transition in that process. The community conversations will be different, and the city can ensure a more substantive and inclusive community engagement process. The council will consider how best to use a citizen committee to aid in the process.” Council Member Tim McGallian was the first member to be elected under the new district-based system. He says, “Changes to the way elected officials come to represent the community do not have to alter the city’s focus on engaging and serving the public. This transition provides an opportunity to reflect on the best strategies for using finite public resources to ensure we are providing high quality, effective community services.” For specific details about Concord’s CVRA public process and links to related resources, read the online version of this article at www.westerncity.com. ■
Western City, January 2019
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Legislative by Dan Carrigg
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and Ballot Year in Review Despite a booming economy, low unemployment and a prosperous state budget, the 2018 California legislative year was clouded by
several factors. Harassment investigations led to the resignations of three legislators, and the mid-year recall of an Orange County
senator eroded the Democratic supermajority. The clash between
California’s progressive policies and President Trump continued on issues ranging from climate and energy to immigration, offshore oil drilling and net neutrality. Smoke filled the skies as wildfires raged and legislators debated how to mitigate dangers and allocate responsibility, liability and costs. Ballot measure sponsors leveraged legislators into enacting unwanted laws, and frustration grew over increasing poverty, skyrocketing housing costs and growing numbers of homeless people on our streets.
Further evidence of political uneasiness was reflected on the November ballot, with Proposition 9 proposing to split California into three states (a court removed this measure from the ballot), Prop. 5 proposing to grant up to $2 billion annually in
property-tax breaks to motivate seniors to move, Prop. 10 proposing to restore authority for local rent control and Prop. 6 proposing to repeal the 2017 landmark transportation funding package. For the League, activity on ballot measures dominated much of the year. Ballot-related activities included opposing the Business Roundtable’s destructive proposal to undermine local revenue authority, which was subsequently pulled from the ballot; working with a coalition of local governments, transit agencies, construction companies and labor groups to defeat Prop. 6; and supporting the successful passage of Props. 1 and 2 to provide additional affordable housing and homelessness resources. The League also supported the passage of three other measures on the June ballot to protect transportation funding and provide funding for parks and water infrastructure and incentives for rainwater capture systems. continued
Dan Carrigg is deputy executive director and legislative director for the League; he can be reached at dcarrigg@cacities.org.
Western City, January 2019
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2018 Legislative and Ballot Year in Review, continued
In other areas, the League: • Successfully advocated for $500 million in additional homelessness funding; • Documented and advocated for solutions to the growing city pension crisis; • Protected cities from being allocated liability for utility-caused wildfires; and • Limited the damage in what has become an increasing effort by the Legislature to impose top-down solutions on housing issues.
The “Me Too” Movement, Recall and Other Legislative Changes Following the revelations of pervasive sexual harassment in the movie industry, a group of female lobbyists, staffers and
legislators signed a letter in fall 2017 challenging the Capitol’s culture of sexual harassment. That letter launched multiple allegations and investigations and led to the resignations of three legislators: Sen. Tony Mendoza (D-Artesia) and Assembly Members Matt Dababneh (D-Woodland Hills) and Raul Bocanegra (D-Pacoima). Other legislators were investigated and reprimanded. By early February, the Legislature passed AB 403 (Melendez), which provides whistleblower protection to Capitol staff who report misconduct. The Legislature also established a more independent process for reviewing sexual harassment allegations. The resignations also affected the Capitol’s balance of power. In 2017, Democrats aggressively wielded their two-thirds supermajority power to enact major policies, but the resignations of three Democratic legislators in 2018 eroded the
party’s supermajority status until special elections could refill the seats. Republican operatives saw an opportunity to further erode that margin. With the Senate Democratic supermajority already at the minimum 27 seats, Republicans launched a recall effort against Sen. Josh Newman (D-Fullerton) over his vote for the transportation funding package. Sen. Newman was considered vulnerable because he had beaten his Republican rival, former Assembly Member Ling Ling Chang, in 2016 by only 2,500 votes. Despite a massive effort by Senate Democrats to defend the seat, Sen. Newman lost the recall and was replaced by Sen. Ling Ling Chang (R-Diamond Bar). Leadership changes occurred in the Senate with former Assembly Speaker Toni Atkins (D-San Diego) replacing termed-out Senator Kevin de León as president pro tempore, and Assembly Member Marie Waldron (R-Escondido) replacing Assembly Member Brian Dahle (R-Bieber) as Assembly Republican leader. Unlike the turnover that accompanied shorter term limits, existing legislative leadership could remain stable given their term limits: President pro Tem Atkins (2024), Senate Republican Leader Pat Bates (R-Laguna Niguel) (2022), Assembly Republican Leader Marie Waldron (2024) and Assembly Speaker Anthony Rendon (2024).
Trusted advisors to California cities for nearly 40 years. • • • • • • •
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State Budget Builds Healthy Reserves, Dedicates Funding for Homelessness The final budget largely corresponded with Gov. Jerry Brown’s “May Revise” with $137.7 billion in General Fund spending, out of a total budget of $199.7 billion. Building state reserves was the central feature. The Rainy Day Fund is projected to grow to $13.8 billion by the end of the 2018–19 fiscal year. Additional revenues were set aside in two new savings funds — a $200 million reserve for safety net programs and the Budget Deficit Savings Account that will hold a portion ($2.6 billion) of the Rainy Day Fund until after May 31, 2019. The budget also addressed homelessness, one of the League’s 2018 strategic priorities, with $500 million in one-time Homeless Emergency Aid Block Grants. Achieving this result required significant work. The League’s executive officers initially raised the homelessness issue with Gov. Brown at a meeting in January. Subsequently the League worked on this issue with a coalition that included mayors representing the state’s largest cities. These efforts resulted in $250 million being included in the “May Revise”;
the final budget doubled that amount. AB 1827, a League-supported trailer bill, placed Prop. 2 on the ballot to resolve legal ambiguities associated with dedicating mental health funding to build 10,000 housing units for homeless Californians.
Ballot Measures Dominate League’s Focus The greatest threats to local control in 2018 emanated from two ballot proposals. One proposed permanently hamstringing local governments’ ability to fund basic services by imposing a two-thirds vote requirement on all local revenue measures; the other was a partisan-motivated effort to attempt to protect Republican congressional seats by wiping away vital transportation funding needed to maintain the state’s deteriorating streets, roads and bridges. Combatting the Tax Fairness, Transparency and Accountability Act of 2018. Sponsored by the Business Roundtable and labeled “The Corporate Tax Trick” by the League and other opponents, the Tax Fairness, Transparency and Accountability Act was slated to appear on the November 2018 ballot. The measure would have limited local ability to fund services by
requiring all local taxes to be subject to a two-thirds vote, repealing 25 measures approved in June by local voters and placing onerous conditions on the imposition of local fees. Major funding for the measure came from the soda, oil, insurance, pharmaceutical and other industries that spent over $7 million to gather signatures; the American Beverage Association (ABA) was the largest funder. (The ABA had already spent over $25 million in California trying unsuccessfully to defeat local soda tax initiatives intended to help prevent childhood obesity and improve the health of communities. Only four cities statewide, however, had imposed such a tax.) The League helped form an opposition coalition of local government and union groups. Pressure generated by our opposition yielded results. Several days before the June 28 legislative deadline to remove a measure from the ballot, the ABA offered a legislative deal to pull the measure in exchange for the passage of a budget trailer bill, AB 1838, which preempts the ability of cities and other local agencies from levying any new tax, fee or assessment on groceries and soda for 12 years. continued
The budget also addressed homelessness, one of the League’s 2018 strategic priorities, with $500 million in one-time Homeless Emergency Aid Block Grants. Achieving this result required significant work.
www.westerncity.com
Western City, January 2019
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2018 Legislative and Ballot Year in Review, continued
While the legislative deal was distasteful, it was the lesser evil. Nevertheless, the League submitted an “oppose” letter for the record, due to a provision that would withhold all sales taxes if a charter city or its voters validly exercised their existing constitutional right to address local municipal affairs, which includes deciding whether or not to levy a soda tax. The wisdom of the soda industry’s gambit remains to be seen. Many Democratic legislators, concerned about the health impacts of soda, were angry about being leveraged in this way. This action puts the industry on the legislative radar, and a ballot measure sponsored by doctors and dentists to impose a statewide soda tax has been proposed for 2020. Protecting Transportation Funding: Supporting Prop. 69 (June) and Opposing Prop. 6 (November). Shortly after SB 1 passed, political consultants advising congressional Republicans proposed repealing the gas tax as a strategy to drive Republican turnout in vulnerable
congressional districts. Their efforts led to Prop. 6 being placed on the ballot to repeal SB 1 (Beall, Chapter 5, Statutes of 2017), the landmark 2017 transportation funding package. The League was compelled to fully commit to defeating this ill-advised measure. We had worked too hard to improve transportation funding for cities to allow this effort to succeed. Transportation is a core issue for cities; in fact, improving roads was the original reason cities came together to form the League in 1898. SB 1 is a comprehensive $5 billion funding package focused primarily on maintaining existing transportation networks, including the state highway system, transit and local streets, roads and bridges. The funding package also placed Prop. 69 on the June 2018 ballot. Prop. 69, passed by 80 percent of the state’s voters, ensures that the Legislature cannot divert new transportation funding sources for other uses. Funding for cities in SB 1 did not happen by accident. For 10 years, the League and
California State Association of Counties (CSAC) advocated for a comprehensive transportation funding solution that addressed not only the $59 billion backlog in work for the state highway system but also the $70 billion funding shortfall for the local transportation network, which was documented in a series of biennial reports. This painstaking and costly effort demonstrated how the condition of our local transportation infrastructure was deteriorating due to inadequate funding. The contributing factors were obvious: Available revenues for maintenance were eroding, the gas tax (last increased in the 1990s) had never been indexed for inflation, more efficient vehicles meant less per-gallon revenue and electric vehicles were not contributing any revenue whatsoever. The most recent 2018 California Statewide Local Streets and Roads Needs Assessment Report found that SB 1 will reduce the funding shortfall for cities and counties by $18 billion over the next 10 years while bringing over two-thirds of the local network into a state of good repair. In its first year alone, more than 6,500 local and state transportation safety and improvement projects are already underway, with thousands of additional projects forecasted beyond the first year.
The League sincerely thanks California voters. In rejecting Prop. 6, voters demonstrated their support for maintaining infrastructure as a worthwhile public investment and validated the work of the Legislature to craft a balanced package on a tough issue.
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Prop. 6 would have eliminated these projects and more than $52 billion in dedicated transportation funding authorized by SB 1 for the state highway system, transit and local streets and roads. Half of the SB 1 total is dedicated for local transportation networks, including $15 billion in direct subventions to cities and counties throughout the state, which doubles the amount these agencies were receiving prior to SB 1. The League sincerely thanks California voters. In rejecting Prop. 6, voters demonstrated their support for maintaining infrastructure as a worthwhile public investment and validated the work of the Legislature to craft a balanced package on a tough issue, while avoiding an even greater infrastructure crisis. Cities can now move forward and use these funds to improve the conditions and safety of their roads and bridges. The League also thanks Gov. Brown and our many allies in business, labor, local government and transit who jointly committed so much time and extensive resources to battling Prop. 6 — and to making sure California voters fully understood that this proposal would have halted more than 6,000 transportation improvement projects, threatened driver and pedestrian safety, increased traffic congestion, cost jobs and hurt taxpayers. Bravo!
For these reasons, the League aggressively supported numerous proposals that will provide funding to build units — and served on the steering committee for the coalition to pass Prop. 1, a $4 billion affordable housing bond, and Prop. 2, a $2 billion funding proposal to help construct 10,000 housing units for homeless individuals with mental illness. These measures are sorely needed, but much more must be done.
Building Affordable Housing and Homeless Housing: Supporting Props. 1 and 2 (November). Despite the Legislature’s significant policy focus on affordable housing in recent decades, state funding is hard to find when it comes to offering subsidies to build affordable units for lowincome households and homeless individuals and families. And though housing elements and the local zoning, development and approval processes are debated in great detail, the reality is that many individuals — absent public subsidies — are too poor to afford private-sector rents. The reduction of federal affordable housing construction programs, which began in the 1980s, compounded these challenges. The Legislature also eliminated local redevelopment
Improving Park and Water Infrastructure: Prop. 68 (June) and Prop. 3 (November). As California’s population grows, state and local agencies face increasing challenges in keeping up with infrastructure demands. Local governments also face a higher vote threshold (two-thirds) than the state (which needs only a simple majority) when seeking voter approval of bonds that improve infrastructure; local school construction is the only exception (requiring 55 percent voter approval). Though the League has long supported a lower vote threshold for such investments, including sponsoring ACA 4 (Aguiar-Curry) in the 2017–18 legislative session, such measures have difficulty moving in the Legislature. As
agencies that provided the single largest state source of affordable housing, averaging over $1 billion per year. The absence of funding for affordable housing has certainly contributed to the current affordable housing and homelessness crisis.
a result, it is much more challenging to fund such investments via local efforts. • Prop. 68, Park and Water Bond: The League supported SB 4 (de León), a $4 billion park and water bond that was placed as Prop. 68 on the June ballot and passed by the voters with 57.4 percent of the vote. Under the measure, each city receives at least $200,000 for its parks and will also be eligible to apply for hundreds of millions of dollars in additional funding for local parks and water upgrades, including safe drinking water, recycling, flood protection and climate change adaptation projects. • Prop. 3, Supply and Water Quality Bond: The League also supported Prop. 3, a proposed $8.877 billion general obligation bond to improve water infrastructure. Perhaps influenced by the earlier approval of Prop. 68 in June, voters rejected this proposal by a narrow margin. Property-Tax Breaks and Rent Control: Props. 5 and 10 Both Defeated. Although the League analyzed and debated Props. 5 and 10 in its policy committees, after significant discussion the League board opted not to engage on these two ballot measures; voters defeated both by heavy margins. Prop. 5, sponsored by the California Association of Realtors, would have provided up to $2 billion in annual property-tax breaks as an incentive continued
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2018 Legislative and Ballot Year in Review, continued
for seniors to move. Prop. 10, sponsored by housing advocacy groups, would have restored local authority to enact rent control after the Legislature pre-empted cities with the 1996 Costa-Hawkins Act.
Lessons Learned From the 2018 Ballot Leverage Game History is a great teacher, and many stakeholder groups took notice of the successful efforts of two 2018 ballot proponents to leverage concessions from the Legislature. The tactic they used was simple: Draft a proposed ballot measure that has a good chance of passing unless tens of millions of dollars are spent in a campaign to defeat it, collect enough signatures to qualify it for the ballot, wait until the statutory deadline to pull measures from the November ballot arrives in late June and see who blinks. In 2018, three ballot proponents employed this strategy: • The American Beverage Association (ABA) paid for most of the signature gathering for the Business Roundtable’s Tax Fairness, Transparency and Accountability Act and then the weekend before the deadline offered a legislative deal to pull the ballot measure in exchange for a 12-year ban on local soda taxes; • Proponents of the California Consumer Privacy Act of 2018, a measure giving consumers aggressive tools to control the use of personal information by companies using or providing internet services, similarly leveraged the passage of AB 375 (Chau), a narrower version of the ballot measure; and • Paint companies, facing litigation over lead paint, attempted to forge a legislative agreement to cap their liability after qualifying the Healthy Homes and Schools Act but were unsuccessful in leveraging an alternative — possibly because their ballot measure didn’t poll sufficiently well.
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Expect more stakeholder groups to use this strategy to advance their priorities as positioning begins for the 2020 ballot.
Overly Weighted Focus on Local Housing and Land Use A University of Southern California (USC)-Los Angeles Times poll conducted in October asked California voters about the contributing causes to the state’s housing crisis. Besides voters rejecting more state intervention in local land use, only 9 percent of voters agreed that local zoning rules are a major cause of the state’s housing affordability problems. The voters also seemed to recognize that many other factors affect housing prices and rents, yet in the halls of the state Capitol, it is often politically convenient to heap blame on local planning and resident input. The appetite for top-down planning and control edicts is growing in the Legislature. Accompanying this trend is the perception that existing residents — who engage in local government decisionmaking in an open and transparent process under the Brown Act and other laws — should have their issues and concerns dismissed and overridden to expedite development projects. State agencies and local governments are just beginning to implement the 15-bill housing package adopted in 2017 — much of which focused on local
land-use planning. Nevertheless, legislators introduced another 300 bills pertaining to nearly every aspect of housing and land-use law in California. Thus, for the League, 2018 was a year of constant defense against efforts to limit or remove local authority. Fortunately, many bills died or were amended to resolve important issues, but others got through. SB 827 (Wiener) would have effectively rezoned all land within a half-mile radius of a “major transit stop” or a quarter-mile radius of a transit stop on a “high quality transit corridor” but was halted in the Senate. Various second-unit bills, including SB 831 (Wieckowski) that would have prohibited cities from imposing any fees on these units, stalled as well. Similar measures will likely be introduced in 2019. Still other bills passed, including: • SB 828 (Wiener) and AB 1771 (Bloom), which make comprehensive changes to the Regional Housing Needs Assessment (RHNA) process; • AB 2162 (Chiu), which requires that supportive housing be a “use by right” in zones where multiple dwelling uses are permitted, including mixed-use zones; and • AB 2923 (Chiu and Grayson), which provides Bay Area Rapid Transit (BART) land-use authority over its property.
Only 9 percent of voters agreed that local zoning rules are a major cause of the state’s housing affordability problems.
Such bills reflect legislators’ frustration with housing costs and a desire to push for solutions, but the isolated focus on local government planning also reflects political reality. In the USC-Los Angeles Times poll, voters ranked the lack of rent control, inadequate funding for low-income housing, environmental regulation, foreign buyers, influence of the tech industry and other factors as bigger contributors to the state’s housing problems than local zoning rules, but legislators often prefer to sidestep such issues as politically difficult. Furthermore, other actions supported by environmental organizations and developers conflict with the state's objectives of increasing housing supply and lowering costs. Developers often cite litigation against housing filed under the California Environmental Quality Act as a key barrier, but seriously addressing the issue has been a nonstarter in the Capitol. A booming economy enables apartment owners to rapidly increase rents in desirable areas, but AB 1506 (Bloom), which was supported by housing advocates and tenant groups and would have restored local authority to enact rent control, stalled in its first committee, and the development industry spent over $61 million to defeat Prop. 10. Legislators and developers make demands for local governments to reduce fees, eliminate parking requirements and cut back on design criteria, but there is no accompanying requirement for developers benefiting from such cost reductions to actually reduce the price of homes sold or rented. Local fees are criticized for adding to housing costs, but no legislative resistance occurred in May when the Building Standards Commission required solar panels on all new homes built after 2020 — at an estimated additional cost of $9,500 per unit. Developers and housing advocates raise concerns about the need to expand housing supply and locals are blamed for the lack of housing production, but then the Legislature adopts conflicting bills like AB 2913 (Wood) that doubles the time
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The League worked in partnership with the California Fire Chiefs Association to secure $50 million for pre-positioning emergency equipment and supported SB 833 (McGuire), which improves emergency notifications. from six to 12 months before a developer with local permits must commence work and AB 2973 (Gray) that authorizes developers with approved tentative maps, parcel maps or vesting tentative maps to request to further delay housing development for an additional two years. The voters surveyed in the USC-Los Angeles Times poll are correct in asserting that many factors contribute to housing development prices and rents. And other areas should also be examined — such as increasing poverty levels, young adults saddled with student debt, the meager savings of aging baby boomers, increasing mortgage rates, inadequate supplies of skilled construction labor and developers slowing production of inventory to keep profits up. Blaming residents and local governments only goes so far and does not move the discussion forward. And although the passage of the housing bond is helpful, it barely begins to fill the massive void in affordable housing funding created by the elimination of
redevelopment. It’s time for the Legislature to take a broader look and address other factors contributing to a slower housing market recovery.
Wildfire Response The devastating wildfires of 2017 — including the Tubbs Fire in Santa Rosa that destroyed over 5,000 homes — triggered more than 70 bills responding to issues including forestry management, homeowner insurance policies, pre-positioning of fire suppression equipment and efforts to shift liability for utility-caused fires by reversing the long-established principle of inverse condemnation. To prepare for these issues, the League worked through its policy committees to update and clarify its policies and then engaged as a major player in the successful effort to improve fire safety and prevention and to protect fire victims and cities from absorbing increased liability for utilitycaused fires. continued
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2018 Legislative and Ballot Year in Review, continued
At some point a reality check will occur about how willing California residents are to alter their lifestyles and how employers and millions of households will afford all the additional costs of increasingly ambitious state goals to reduce greenhouse gas emissions.
A comprehensive legislative package was developed in a conference committee and amended into SB 901 (Dodd). The measure: • Includes over $1 billion over five years for forest management and fire prevention; • Streamlines procedures associated with forest thinning and fuel reduction; • Increases energy production from biomass fuels; • Expands the mutual aid system to allow for advance placement of firefighters and equipment and fuel reduction; • Requires utilities to adopt wildfire mitigation plans and provides some additional flexibility for utilities to securitize wildfire-related debts and recover costs from ratepayers; and • Establishes the Commission on Wildfire Cost Recovery. In related efforts, the League worked in partnership with the California Fire Chiefs Association to secure $50 million for pre-positioning emergency equipment and supported SB 833 (McGuire), which improves emergency notifications.
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Addressing Pensions, California Cities’ Sleeping Giant In February, the League released a comprehensive study revealing the hard truths that many cities are grappling with as they are forced to shift ever-growing shares of their General Fund revenues to cover dramatic increases in pension costs. To better understand the cost drivers behind the increasing local employer contribution rates and the impacts on cities, the League commissioned a leading California actuarial firm serving only public sector agencies to analyze anticipated pension contribution rates for cities as a percentage of payroll and determine how those future contribution rates would impact cities’ General Funds. This study was limited only to pension liability and did not reflect costs associated with active or other post-employment benefits such as health care. The study found that rising pension costs will require cities to nearly double the percentage of the General Fund dollars they pay to the California Public Employees’ Retirement System (CalPERS) over the next seven years, with 10 percent of cities projected
to spend 21 percent or more of General Fund revenues on pension costs. For many cities, these costs will soon reach unsustainable levels. Pension cost increases affect city budgets much more than they do the state budget. Cities spend a large portion of their budgets for police, fire and other municipal services. Also, unlike the state budget, which has recovered significantly since the Great Recession thanks to voterapproved tax increases, many cities have not experienced a financial rebound. With local pension costs outstripping revenue growth, cities face difficult choices that will be compounded in the next recession. Under current law, cities have two choices: Attempt to increase revenue or reduce services. When local cuts occur, public safety — including response times — will likely be impacted. As expected, the Legislature had little appetite in 2018 to lead an effort to identify sustainable pension solutions. Gov. Brown, who understood and was vocal about these challenges, filed a comprehensive legal brief on the pending Cal Fire Local 2881 v. the California Public Employees’ Retirement System case at the California
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Supreme Court. He urged the court to revise its previous interpretations of the “California Rule” to provide additional flexibility for public agencies to address unsustainable costs. In April, the League also filed a brief with the court, and oral arguments occurred on Dec. 5, 2018. The court is expected to rule within 90 days. The League also continued increasing the presence of cities at CalPERS meetings and strengthening relations with its board members and executive staff. It is vital to expand their awareness of the impacts on cities of the board’s decisions, including divestment proposals that would weaken the fund’s returns. The League’s executive officers met with CalPERS leaders in April to further convey the challenges cities are facing. To ensure that city employees were better informed about the positions of the candidates for the board seat representing active employees, the League also conducted a candidate survey and distributed the results to cities. In October, public employees rejected the incumbent and chose a police officer from the City of Corona — a city experiencing significant pension challenges
The League convened a city managers’ working group to explore common ground on sales tax allocations from internet sales.
— as a new CalPERS board representative. In the Legislature, the League also engaged on many bills affecting employers and was instrumental in negotiating a tailored solution in AB 1912 (Rodriguez) to the challenge of pension liabilities of joint powers agencies.
Renewed Discussions on Tax Reform Gov. Brown successfully avoided getting drawn into the abyss of tax reform in the Capitol during his eight-year tenure, likely influenced by his experience with Prop. 13 during his first terms as governor. The issues are controversial and complicated. Solutions require two-thirds legislative votes and possibly ballot measures, and any changes will leave some stakeholders unhappy. But such obstacles do not stop the discussions. For the past several years, Sen. Bob Hertzberg (D-Van Nuys) has been introducing legislative proposals to reduce state revenue volatility by expanding the sales tax base to apply to various services in exchange for reducing the state income tax. While these bills triggered some discussions, they
stalled due to the governor’s lack of engagement on the issue. The federal tax reform package punished high-tax states like California because it caps federal deductions for state and local taxes at $10,000. It sparked the introduction of several proposals that explored allowing state taxpayers to convert their tax obligations into charitable deductions under federal law, but these stalled after the Internal Revenue Service issued a mid-year advisory warning that it would reject such tactics. Sen. Steve Glazer (D-Orinda) introduced SCA 20, a proposed constitutional amendment to allocate local sales tax derived from online purchases to the destination where the customers receive the product. This measure highlighted the growing trend of consumer purchases made using e-commerce; however, the changing retail landscape with fewer brick-and-mortar stores is not a new issue for the League. Since 2015, the League has been having internal policy discussions on sales taxes and convened a working group of city managers in fall 2017 to attempt to find common ground on sales tax allocations from internet sales. After numerous meetings in 2018, the group made several recommendations to be considered by the League policy committees in January 2019, including the need for better data from the California Department of Tax and Fee Administration on how a potential shift to destination allocation would affect individual cities. A major related development occurred in late June when the U.S. Supreme Court decision in South Dakota v. Wayfair reversed several prior cases and held that states and local governments may require retailers with no in-state physical presence to collect sales and use tax. The California Department of Tax and Fee Administration issued an implementation memo in late December 2018 as this issue of Western City went to press. continued
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2018 Legislative and Ballot Year in Review, continued
Thousands of former state prisoners and smaller-time criminals who once were in county jails are now on the streets.
Several factors ensure that tax reform discussions will accelerate in the Capitol in 2019:
• Prop. 47 (2014), which reduced criminal penalties associated with various crimes;
• The qualification of the “split-roll” ballot measure for the November 2020 ballot, proposing to change Prop. 13 to require periodic property-tax reassessments of commercial properties;
• Prop. 57 (2016), which made more felons eligible for earlier parole; and
• The California Association of Realtors’ expected efforts to craft a revised version of the recently failed Prop. 5; and • A new governor who touts the benefit of having “big hairy audacious goals.”
Public Safety and Criminal Justice Tensions Continue Gov. Jerry Brown’s eight-year tenure was accompanied by a massive reversal of previous state policy approaches to public safety and criminal justice. As a result of these changes, thousands of former state prisoners and smaller-time criminals who once were in county jails are now on the streets. California’s radical changes to criminal justice policies include: • Realignment in 2011, which shifted state prisoners to county jails to reduce state prison overcrowding in response to court orders;
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• Prop. 64 (2016), which legalized recreational cannabis. Throughout his tenure, Gov. Brown also vetoed most bills that proposed additional penalties and sentence enhancements for various crimes. These actions reflected his policy concern that criminal justice laws and penalties had grown overly punitive and dismissive of opportunities for individual rehabilitation. But there were obvious financial motivations as well — reducing the state prisoner population saved costs for a state budget recovering from massive deficits. In 2018, the deconstruction of the state’s criminal justice system continued with the passage of SB 10 (Hertzberg), which eliminated the state’s pre-trial bail system in exchange for a “risk assessment” process. The bail industry, however, gathered signatures for a referendum to place this issue before state voters in 2020. At the local level, city officials, police chiefs and business owners have expressed intensifying concern about increasing crime and a growing attitude among perpetrators that criminal
behavior has few consequences. A resolution sponsored at the League’s 2017 Annual Conference by the City of Whittier, where a habitual felon killed a police officer, called “upon the governor and Legislature to enter into discussion with League and other public safety stakeholders to identify and implement strategies that will relieve the unintended negative impacts of existing criminal law.” Efforts by the League and California Police Chiefs Association to seek legislative action or a negotiated resolution with Gov. Brown went nowhere. The California Police Chiefs Association and California Grocers Association turned their attention to gathering signatures for a ballot measure. The ballot measure, the Reducing Crime and Keeping California Safe Act of 2018, has qualified for the November 2020 ballot and is supported by the League. This measure would: • Broaden the definition of violent felonies; • Address serial theft by facilitating prosecution for repeat offenses; • Address organized retail theft; • Alter the rules for granting parole to nonviolent offenders;
• Authorize DNA collection upon arrest for specified misdemeanors; and • Enact changes to the management of the post-release community supervision population of offenders. Absent a compromise with incoming Gov. Gavin Newsom, whose past criminal justice philosophy mirrors that of Gov. Brown, voters will decide the issue. But it could be a costly and difficult campaign. Former Gov. Brown, who adamantly opposes the measure he views as rolling back some of his previous reforms, retains a multimillion-dollar war chest that could be used to combat the measure. In other areas, legislative concern continued over police use of force, exacerbated by the police shooting of a suspect in Sacramento, and subsequent civic demonstrations that filled the streets around the Capitol. The League convened a dialogue in its Public Safety Committee and published a comprehensive interview in the October 2018 issue of Western City with Sacramento Police Chief Daniel Hahn on strategies to build stronger relationships between the community and local law enforcement. In the Legislature, contentious debate occurred over AB 931 (Weber), which proposed to change the legal standards associated with police use of deadly force; the bill was halted in the Senate during the final days of the session, but the issue is expected to return. In related actions, Gov. Brown vetoed AB 3131 (Gloria), a League-opposed bill that would have overly restricted local law enforcement’s access to surplus military equipment, but signed SB 1421 (Skinner), which exposes peace officers to the risk of having their identity revealed for nonsustained or exonerated incidents.
Act authorized by Prop. 64 took effect Jan.1, 2018. But rather than allowing the law to settle, legislative and administrative efforts to change the law continued, often at the behest of those looking to expand access to and profit from cannabis. Over 30 bills were introduced, and 18 passed. Though many cities enacted ordinances to permit cannabis activity in their jurisdictions, within months cannabis advocates were arguing that more must be done to accelerate market expansion and access. SB 1302 (Lara) was proposed as an end run around local authority by allowing statewide cannabis delivery — in conflict with local ordinances. The League and other groups opposed the bill. That opposition, plus a two-thirds vote requirement, caused the measure to stall on the Senate floor. Shortly afterward, however, a similar delivery proposal appeared as part of a 100-plus-page set of proposed regulatory changes advocated by the Bureau of Cannabis Control (BCC). The League, other groups and nearly 100 cities opposed it as conflicting with both the letter of Prop. 64 and representations made to the voters. Despite the obvious conflicts, the BCC’s proposal continued to move forward and is under review by the Office of Administrative Law. Should this regulation take final effect, legal challenges are expected. This experience
also raises questions about the growing influence of the cannabis industry in the Legislature and on the BCC.
Energy, Climate and Recycling Over the past decade, California has established itself as a global policy leader in renewable energy, greenhouse gas reduction and other programs responding to global warming. The state established many ambitious goals, which include reducing greenhouse gas emissions 40 percent below 1990 levels by 2030, increasing renewable electricity production by 50 percent, reducing petroleum use in vehicles by 50 percent, doubling energy efficiency in existing buildings, limiting daily indoor water use to 55 gallons per person, reducing short-lived climate pollutants and more. The pragmatic obstacles and massive costs associated with such rapid change are daunting. Nevertheless, each year, administrative agencies and legislators strive to increase these goals. In 2018, SB 100 (de León) ratcheted up the state’s renewable energy objective to 100 percent renewables by 2045, and the Building Standards Commission required solar energy panels on every new housing unit built after 2020. AB 1745 (Ting), continued
Cannabis Implementation: Industry and BCC Make End Run on Deliveries The fledgling regulatory framework to implement the Adult Use of Marijuana
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2018 Legislative and Ballot Year in Review, continued
which proposed banning the Department of Motor Vehicles from accepting new registrations for any non-zero emission vehicle after 2040, stalled. While such efforts are laudable, at some point a reality check will occur about how willing California residents are to alter their lifestyles and how employers and millions of households will afford all the additional costs of increasingly ambitious state goals to reduce greenhouse gas emissions. In other energy and environmental areas, SB 901 (Dodd) established biomass purchasing thresholds for utilities and SB 237 (Hertzberg) increased the ability of commercial and industrial energy users to purchase energy directly from suppliers rather than through the applicable utility or community choice aggregation. And SB 212 (Jackson) established a new program to require pharmaceutical
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and medical sharps manufacturers and distributors to create recycling programs for their products to divert these harmful items from municipal waste streams.
Issues for 2019 Any discussion of issues for 2019 starts with the tone that will be set and policies established by incoming Gov. Gavin Newsom. Based on his record as the former mayor of San Francisco, his experience in business, the books and reports he has published, the contents of his campaign website and his statements made when interviewed by the press and various stakeholder organizations, it is fair to expect he will set a very ambitious and aggressive agenda on some of the major policy challenges facing California, including addressing the widening economic gap between the haves and have-nots, crafting a better health care solution and improving both educational achievement and housing affordability. Gov. Brown deserves major credit for cleaning up the state’s disastrous finances, including eliminating a $26 billion deficit, repaying many state debts and obligations, convincing state voters to approve a tax increase, enacting pension reform for new hires and stubbornly resisting many legislative spending requests while accumulating a $14 billion Rainy Day Fund. But at some point, the economy will stall, perhaps accelerated by increasing interest rates and global tariff battles. When it does, the Legislative Analyst’s Office predicts that without cuts, the state’s Rainy Day Fund would be quickly absorbed, followed by several years of budget deficits that could exceed $15 billion annually. Despite the present political tensions, the importance of federal funding for state health and welfare, disaster response and other programs cannot be ignored; it will be important for Gov. Newsom and legislators to maintain a working relationship with Congress and the Trump administration.
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Robust tax reform discussions are guaranteed with the qualification of the split-roll property-tax proposal for the 2020 ballot, the expectation of another ballot proposal by the realtors to reduce property-tax impacts on seniors who move, implementation of sales tax collections under the Wayfair decision and renewed debate over how to allocate local sales tax from internet sales. Criminal justice policies will also be at the forefront, with an expected referendum on bail reform and the California Police Chiefs Association and California Grocers Association’s criminal justice ballot proposal qualified for 2020. Public pensions will continue to create challenges for local agencies as costs increase. A decision by the California Supreme Court may open avenues for additional flexibility. Any judicial ruling modifying the California Rule, however, would likely require state legislation to provide direction and or authority to state and local governments. If not, expect increasing limitations on local services. Housing supply and affordability will continue to be a focus. The many changes to local land-use laws enacted over the past two years should be given time to take effect before more are piled on. Simplistic concepts such as mandating local governments to “build” housing need to take into account economic reality, when the means of production rely on private market decisions and the availability of public subsidies. Recent polling
also suggests state voters would reject aggressive efforts to insert the state into local development decisions. In a time of such political division, collaborative approaches should be explored rather than exacerbating the anti-city, anti-resident tone of recent years. California cities are centers of innovation, commerce and quality-of-life services for 83 percent of the state’s population. The variety and unique aspects of our communities reflect the history, priorities and aspirations of our residents. The state’s economic success and progress on its climate goals require collaboration with cities. Restoring workable tax-increment financing and establishing much more aggressive state funding commitments for affordable housing would be a huge step forward. As 2019 commences, there is much to celebrate about California and the continued promise of its future. The Golden State serves as a beacon not only for the nation but for the world. California cities and the League remain committed to our belief in the principles of local democracy, civic engagement and the innovative approaches we take to delivering services and building communities that reflect our residents’ needs and desires. The League stands ready to work collaboratively with our new governor and legislators to continue advancing and improving the quality of life for our residents whom we collectively serve. ■
California cities are centers of innovation, commerce and qualityof-life services for 83 percent of the state’s population.
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The city uses employee leadership programs to boost morale and provide opportunities for professional growth.
La Quinta Transforms Its Workplace Culture to Better Serve the Community La Quinta (pop. 41,204) is one of nine cities in the Coachella Valley. Today, the city employs 88 full-time and 16 parttime staff and contracts for police, fire, landscape maintenance, water and sewer services. But in 2012, like many cities statewide, La Quinta was grappling with the impacts of the Great Recession. A budget deficit forced the layoff of 21 percent of its workforce. The remaining staff struggled to maintain morale in the face of a significantly increased workload and shrinking city resources with which to serve the public. For the good of the entire community, the city didn’t need to just survive — it needed to rebound and flourish.
• Invest in the municipal workforce and technology; and
Tackling the Crisis
• Introducing a sales tax ballot measure;
With strong and supportive leadership from the city council and city manager, La Quinta forged ahead by setting these key goals:
• Providing staff training in analytical thinking, strategic planning, communications and project management;
• Balance the budget; • Restructure service levels; • Engage its historically anti-tax community to increase revenue by passing a sales tax measure;
• Implement succession planning to address the retirement of many baby boomers on staff and to help maintain the quality of essential community services. Achieving these goals began with working to eliminate an operating budget deficit of over $2 million. Specific initiatives included: • Launching a robust community engagement program to communicate the city’s financial position and garner input on service delivery changes;
• Making strategic investments in technology to support service delivery; and • Establishing a development and building permit processing center (online and in-house) to increase over-thecounter permit approvals.
This course of action helped galvanize staffers, who recognized the city’s constructive focus and committed to working collaboratively to provide services that exceed residents’ expectations.
Fostering a Culture of Creativity and Innovation La Quinta set out to create an energetic and engaged workforce and foster a culture of creativity, innovation and passion. City leaders’ vision included giving employees ownership of the services they provide and cultivating an environment of trust, respect and appreciation for the organization and each other. To drive this shift, La Quinta implemented new training platforms and a performance-based evaluation system, employed active succession planning and community engagement and used metrics to measure progress. “The city council and the executive team wanted to create opportunities for the staff to thrive and grow,” says La Quinta City Manager Frank Spevacek. “Implementing programs that taught leadership continued on page 27
The City of La Quinta won the Award for Excellence in the Internal Administration category of the 2018 Helen Putnam Award for Excellence program. For more about the award program, visit www.helenputnam.org. www.westerncity.com
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Finance Director
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City of South San Francisco
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Teri Black • 424.296.3111 Julie Yuan-Miu • 925.820.8436
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City of Cypress | City Clerk
Open Until Filled (First review of applications - 1/7/19)
Duties and responsibilities include scheduling and preparing City Council meeting agendas; maintaining official documents and records and overseeing the record management program; coordinating responses to public records requests; coordinating elections with the County and advising candidates on procedures and deadlines; receiving and processing all liability claims against the City. He/she will: • Promote an inclusive environment. • Value different perspectives and understand how to integrate ideas. • Champion technology and stay attune with industry trends. • Seek opportunities for improvement. • Possess a thorough understanding of California election, open government, and transparency laws. Contact: Regina Nguyen: rnguyen@cypressca. org (714) 229-6689.
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League of California Cities
Human Resources Director City of Santa Rosa, CA
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anta Rosa (pop. 175,000) located 55 miles north of San Francisco and 30 miles west of the Pacific Ocean, is the County seat for Sonoma County, encompassing 41.5 square miles in the heart of Sonoma’s wine country. Santa Rosa is a full-service Charter City made up of 13 departments and approximately 1,300 staff. The Human Resources Department operates with the support of 21 FTE responsible for core human resource functions and risk management. The ideal candidate will be a knowledgeable and experienced human resource professional with a strong foundation in public sector personnel management and a well-rounded background in all human resource disciplines. Along with being an exceptional mentor and manager, knowledge of contemporary public HR principles and best practices will also be expected. A Bachelor’s degree and progressively responsible experience in public personnel management, including experience supervising professional personnel staff, are desired. The salary range for this position goes up to $175,037. Salary is supplemented by a competitive benefits package. This recruitment will close at midnight on Sunday, January 13, 2019. Visit www.tbcrecruiting.com for latest info and to apply online. Suzanne Mason • 562.631.2500 Teri Black • 424.296.3111
www.cacities.org
Current & Upcoming Opportunities City of Menifee, CA Chief of Police
City of El Segundo, CA • City Manager
• Jurupa Community
Services District, CA
General Manager
City of Rancho Palos Verdes, CA Building Official
City of Live Oak, CA • City Manager
• Mountain House Community Services District, CA General Manager
City of Roseville, CA
Assistant City Manager
Yuba County, CA • County Counsel
If you are interested in these outstanding opportunities, visit our website to apply online.
www.bobmurrayassoc.com
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Introducing . . .
General Manager
Indio Water Authority – City of Indio CITY OF GREENFIELD
COMMUNITY DEVELOPMENT DIRECTOR Salary: $135,200
Assist the City Manager in the daily administration of intergovernmental related activities. Direct City of Greenfield Building & Planning. Supervise the Community Development division and Direct the preparation of planning and grant documents for communitybased programs. Coordinate City-wide community development planning activities.
Director of Water
Santa Rosa Water – City of Santa Rosa
Director – Risk Management Alameda County
Director of Parks & Recreation City of Santa Paula tel. 424.296.3111
City of Lincoln, California
City Manager
Education and/or Experience: Master’s degree in Planning, Public Administration, Business Administration or related field and four (4) years’ experience in Community Development or Public Administration in a management position. A Bachelor’s degree with two (2) additional years of experience will substitute. Knowledge of Federal and state law and regulations governing community development, planning principles, housing development finances, statistical research methodology, business principles, and contract administration.
License: Must possess a valid California class C driver’s license and have a driving record acceptable with the City’s insurance carrier. For complete Job Description, please visit: www.ci.greenfield.ca.us Submit your completed employment application, DMV record, résumé to: Nina Aguayo, naguayo@ci.greenfield. ca.us or turn it in personally at: 599 El Camino Real, Greenfield, CA 93927. INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED. November 14, 2018 – January 15, 2019. We are an Equal Opportunity Employer.
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The City of Lincoln (estimated population 47,200) is located in Placer County at the edge of Northern California’s foothills, 27 miles northeast of California’s State Capital of Sacramento. One of the fastest growing cities in the country from 2000 to 2007, the City has managed to maintain the small-town charm that has made it such a desired location to live, work, and play. The City is currently seeking a strong leader and experienced manager to provide effective leadership while coordinating the activities of a municipal organization. The City will benefit from a candidate with well-rounded experience that includes a successful history and background in community engagement, economic development, and experience dealing with municipal finance. Any combination of education and experience that has provided the knowledge, skills, and abilities necessary for a City Manager, is qualifying. A typical way of obtaining the required qualifications is to possess the equivalent of five (5) years of increasingly responsible experience in municipal administration, including at least three (3) years of high level administrative responsibility, and a Bachelor’s degree in Public or Business Administration, Political Science, or a related field. A Master’s degree in Public or Business Administration and experience working in California cities is highly desirable. The annual salary range for the City Manager is $167,152-$224,000; placement within this range is dependent upon qualifications. If you are interested in this outstanding opportunity, apply online at www.bobmurrayassoc.com and contact Mr. Gary Phillips at (916) 784-9080 should you have any questions. Filing Deadline: January 25, 2019 ph. 916.784.9080, fax 916.784.1985
www.bobmurrayassoc.com Lincoln City Manager.indd 1
12/11/2018 12:30:44 PM
Photo/Art Credits Page 3: Top, Dapperland/Shutterstock.com; below, Flamingo Images/Shutterstock.com Page 4: Top, Steve Debenport/Shutterstock.com; bottom, Song_about_summer/Shutterstock.com Page 5: Top, Cosmonaut/Shutterstock.com Pages 6–7: Graphic, Sandipkumar Patel Pages 8–9: FrozenShutter Pages 10–14: Header/wrap, Art Wager Pages 10 &11: Bottom, Lpettet Pages 12–13: Header/wrap, KathyDewar Page 12: Bottom, Peeterv Page 13: Bottom, NNehring Pages 14–15: Bottom/wrap, CampPhoto Page 14: Bottom center, fstop123
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La Quinta Transforms Its Workplace Culture to Better Serve the Community, continued from page 23
skills and making significant investments in our staff increased their skill sets to a whole new level. We saw a new culture emerge that had never been seen before in our organization.”
The city’s employee leadership programs are popular and provide continuing support for delivering effective, efficient services to the community.
Mentoring Managers and Staff La Quinta launched two programs to mentor managers and supervisors: the Leadership Investment & Knowledge Sharing program and a leadership academy. These programs work hand in hand to advance employees’ professional growth and the city’s succession planning program.
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In 2018, the city rolled out La Quinta Academy 2.0 to offer another step in the talent development ladder for those who have completed La Quinta Academy 1.0. This program focuses on thinking strategically, nurturing and developing
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New Year brings new opportunities . . .
The Leadership Investment & Knowledge Sharing program is designed to develop leadership and provide an understanding of the city’s culture, decisionmaking approaches and management philosophy. Employees participate in small groups that comprise eight employees from different departments. Each group meets with the city manager, department directors and various managers on a rotating basis. The meetings use informal discussion designed to encourage interaction and questions. Full-time employees who have been with the city for a minimum of one year are eligible to participate. In 2016, the city initiated its successful leadership academy, La Quinta Academy 1.0, to help staff develop their knowledge, skills and abilities in three key areas: projects, people and metrics. Employees who are managers or supervisors or have graduated from the Leadership Investment & Knowledge Sharing program are eligible to participate. Approximately 15 to 20 staff from assorted departments make up the academy’s yearly class. The sessions focus on building skills in areas including project resources, performance reviews, career development plans, contracts and agreements, staff reports, hiring, presentations and more.
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City Manager
City of Indian Wells
City Manager City of Poway
Assistant Director of Parks, Recreation & Neighborhood Services City of San José
Visit www.tbcrecruiting for latest info. tel. 424.296.3111
Community Development Director City of Agoura Hills, CA
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n the western edge of Los Angeles County nestled in the foothills of the Santa Monica Mountains lies the City of Agoura Hills (pop. 20,878). Spanning 8.2 square miles with substantial dedicated open space, this contract city is known for its outstanding quality of life that is characterized by its low crime, family friendly atmosphere, superior schools, and beautiful landscapes. The Planning & Community Development Department is supported by 7 staff members plus contractual and consultant support as needed. The ideal candidate will be an experienced planner accustomed to serving a community that values quality development and the importance of protecting the environment. He/she will be adept at balancing various perspectives and interests and be proactive in offering up creative solutions that are aligned with community priorities. Competitive candidates will possess a minimum of five years of progressively responsible experience in urban planning in a comparable environment, including at least two years of service in a supervisory or administrative capacity, along with a bachelor’s degree. A master’s degree is preferred. Salary range $135,778 - $165,432; salary supplemented by an attractive benefits package. This recruitment will close at midnight on Sunday, January 20, 2019. Visit www.tbcrecruiting.com brochure and to apply online. Teri Black • 424.296.3111 Bob McFall • 818.429.4699
continued on page 30
www.westerncity.com
Western City, January 2019
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Assistant City Manager City of Brentwood, CA
Brentwood is situated in the center of an emerging mega-region that is one of the fastest growing economies in the U.S.. With an anticipated build-out population of close to 80,000, Brentwood offers a high quality of life with competitively priced housing in beautiful, safe, family-friendly neighborhoods; excellent public schools; and small-town charm with big-city amenities. The city is financially stable with a total budget of $324.4M, CIP budget of $60.1M, and 308 FTEs providing a full range of services. This is an opportunity to join one of the most collaborative, dynamic, and professional leadership teams in the state. Focusing on economic development to increase jobs in the region, a Council-approved Strategic Action Plan is ready for action, and the selected Assistant City Manager will be primarily responsible for leading and implementing this plan. Proven management and leadership experience and a thorough understanding of economic development, zoning and land use, commercial real estate, and municipal finance and budgeting is strongly desired. A Bachelor’s degree is required; a Master’s degree is highly desirable. Annual salary range is $174,516 - $212,125 (3.5% increase scheduled for July 2019); appointment DOQE. Filing deadline is January 9, 2019. Contact Bobbi Peckham.
Senior Management Analyst/ Community Relations Manager City of Pleasant Hill, CA
Pleasant Hill is a modern, vibrant city offering the perfect balance of suburban amenities and small-town charm. The city’s 34,853 residents enjoy an enviable quality of life with safe, quiet residential neighborhoods complemented by an appealing downtown boasting of retail space, movie theaters, entertainment venues, restaurants, and a central plaza area for community gatherings and events. Under the direction of the City Manager, this position plans, organizes, and implements public communications for the City; serves as the City’s media contact and Public Information Officer; advises and supports the City Council, City Manager, and departments on appropriate community outreach and strategic communications; serves as liaison to civic organizations and outside agencies; and provides staff support to the Civic Action Commission, the Education Commission and the Measure K Oversight Commission. The position also provides analytical expertise and management including, but not limited to, solid waste and recycling, and cable TV franchise agreements. Bachelor’s degree with a major in journalism, communications, public/business administration, or a related field and five years of professional experience is required. Salary range is $114,372 to $152,100 DOQE. Filing deadline is January 21, 2019. Contact Phil McKenney.
City of Benicia, CA
A beautiful waterfront community of 28,000 on the San Francisco Bay, Benicia is known for its small-town charm, low crime, good schools, affordable housing, and wide range of cultural and recreational opportunities. Two outstanding career opportunities are currently available. The Public Works Director is seeking hands-on self-starters with proactive, relationship-based and inspirational management approaches, and active communication styles.
Deputy Public Works Director – Operations/City Engineer Oversees the operating divisions of engineering, streets, distribution, collections, and fleet. Five years of increasingly responsible professional engineering experience (with at least two years in a management or supervisory position) is required. Experience is required in one or more of the following: project management, CIP development, fee structures, maps, land use, street maintenance, facilities, water distribution systems, and wastewater collection systems. California certification as Professional Civil Engineer is required. Annual salary range is $121,864-$148,127 DOQE.
Deputy Public Works Director – Utilities Oversees the utilities divisions of water, wastewater, and environmental compliance. Five years of increasingly responsible experience in municipal water/wastewater operations, municipal engineering, land development, street construction or maintenance (including four years of administrative and management responsibility) is required. Bachelor’s degree or equivalent in civil engineering, public administration, or related is required. Annual salary range is $116,050-$141,060 DOQE. Filing deadline is January 21, 2019. Contact Josh Agnew.
“All about fit” City Building Official City of Beaverton, OR
Located midway between Mt. Hood and the Oregon coast, Beaverton combines the best of a big city and the peaceful surroundings of a small town. Here you will find people of all ages, from all walks of life, choosing to call Beaverton home because they feel welcome, engaged and heard. Reporting directly to the Community Development Director, the City Building Official is responsible for the operations of the Building Division and its 22 employees and provides highly technical and professional assistance in building matters to ensure building, construction and remodeling activities meet appropriate codes, standards and City ordinances. The City Building Official is a member of the Department’s Management Team and is expected to participate in the ongoing Development Review Process, which coordinates the city’s planning, building and site development functions into a single process. Bachelor’s degree and 8 years of progressively responsible experience in building inspection or plan examination, including 3 years in a supervisory or management role required. Additional requirements include a valid driver’s license, Oregon Building Official Certification, Oregon Inspector Certification (OIC), Oregon A level Plans Examiner Certification, Oregon Building Fire and Life Safety Plans Examiner Certification and Oregon Building A level Structural Inspector Certification. Out-of-state applicants will be required to obtain certifications upon hire, in a timeframe not to exceed six (6) months. Salary range from $94,042 to $126,033 with outstanding benefits. This opportunity is Open Until Filled, with the first resume review scheduled for January 28, 2019. Contact Phil McKenney. To apply for this opportunity, please visit the City of Beaverton’s website at BeavertonOregon.gov/jobs.
Finance Director
City of Bothell, WA
The City of Bothell, population 44,000, is located in the Seattle metropolitan area, in King and Snohomish Counties, just east of Lake Washington. Appointed by and reporting directly to the City Manager, the Finance Director will join a high-functioning executive leadership team and a positive, professional, values-based organization. The Director oversees a staff of 10-12 and is responsible for the 2019-20 Biennial Budget: Citywide $274.4M, General Fund $111.3M, and Finance Department $3.3M. Bothell uses the Munis software system. Seeking visionary, solution-oriented leader to advance and modernize the department and maximize the skills of an experienced, capable staff. Bachelor’s degree in finance, business or public administration, or related field. Seven years of professional management experience in municipal finance preferred. Impeccable integrity, strong work ethic, and customer service focus are mandatory. Technical skills should include significant experience with budgets, capital project finance management, procurement, bonds, levies, sales taxes, grants, payroll, and all municipal fees. Comprehensive benefits. Annual salary range is $134,551 to $171,076. Filing deadline is February 4, 2019. Contact Andrew Gorgey.
Planning Manager
City of Yuba City, CA
Yuba City is a flourishing rural community located just 40 miles north of Sacramento. The City’s many assets include an attractive climate, excellent healthcare facilities and quality public and private schools and a quality, family-oriented lifestyle including affordable housing and well-planned growth. Under direction from the Development Services Director, the Planning Manager leads, oversees and reviews current and advanced planning projects and/or issues from original submission through final approval at the Planning Commission or City Council level, and provides highly complex staff assistance to the Director or their designee. They will be the “face” of the department and will direct the assistant and associate planners and front counter staff. Bachelor’s degree from a four-year college in planning, architecture, or other design related field, urban studies, environmental planning, public administration, political science, economics, or closely related field required as is four (4) years of recent increasingly responsible full time professional experience in urban planning, including two (2) years in a supervisory role. A Master’s degree and/or AICP are desirable. The 9-step salary schedule is from $93,432 to $113,568 with excellent benefits. Filing deadline is January 21, 2019. Contact Phil McKenney.
To apply, please visit our website at:
Peckham & McKenney
www.peckhamandmckenney.com
Resumes acknowledged within two business days. Call (866) 912-1919 for more information.
La Quinta Transforms Its Workplace Culture to Better Serve the Community, continued from page 27
Measuring Progress
• A fully electronic evaluation process; and
talent, actively preserving the La Quinta culture and increasing personal leadership effectiveness. Both leadership academy programs combine intensive learning with fun and camaraderie.
The City of La Quinta has made strides toward meeting its goals. In November 2016, 54.7 percent of its voters passed a 1 percent sales tax measure to fund general city services. Technology investments have increased the city’s capacity, and La Quinta has implemented new systems for financial management, permit processing and support. The Hub, which is the city’s “one-stop shop” permit processing center, implemented a streamlined process for completing over-the-counter and online permits that receives consistently positive customer feedback. And the city’s employee leadership programs are popular and provide continuing support for delivering effective, efficient services to the community.
• Monthly “all hands” and leadership meetings with shoutouts for notable work.
“We know that leadership matters, especially when navigating change,” says Chris Escobedo, La Quinta’s director of community resources. “But what’s more important going forward is empowering our workforce and unleashing the talent in our organization.”
Rather than issuing orders, the city’s leaders communicate their intent and then get out of staff ’s way, giving them the opportunity to explore options, make decisions and foster a sense of shared ownership in programs that serve the community. When metrics reflect progress, the entire team celebrates its successes together.
Many longtime La Quinta employees have retired in recent years as the wave of baby boomers reaching retirement age grew. The city has worked to offset this departure of expertise with programs that help employees share knowledge and strengthen skill sets of newer staff. As a result, internal promotions increased from zero in 2014 to seven in 2016 and 10 in 2017.
With 30 years of service, Missy Mendoza is La Quinta’s longest tenured employee. She says, “I’m grateful for all the opportunities to be a part of the academy, mentorship, the Leadership Investment & Knowledge Sharing program, shortterm rental workshops and outreach — and honored to be part of the City of La Quinta staff.”
As part of its leadership development efforts, the city now uses: • Lean Six Sigma Lite techniques;
Contact: Angela Scott, human resources manager, City of La Quinta; phone: (760) 777-7156; email: ascott@ laquintaca.gov. ■
La Quinta’s leadership academies are popular with city employees and serve to bridge the gap in expertise created by a wave of retiring baby boomers.
• Project Teams, with members from various departments; • Process Action Teams that evaluate and redesign service delivery; • A performance-based classification system; • Active succession planning; • Mentorship programs;
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How long have you served on the city council? What do you wish you’d known when you were first elected? Read more “On the Record” at www.westerncity.com.
Eddie Neal Mayor pro Tem Lemoore
Kay Coleman Council Member San Anselmo
Jeannie Bruins Vice Mayor Citrus Heights
www.westerncity.com
Six years. I wish I had known more about redevelopment — more background and bigpicture information.
Eight years. The outside obligations I would have to fulfill and the need for extensive preparation prior to a council meeting.
Sixteen years. The value of collaborating with your community on all issues; their input is critically important.
Roseann Mikos Mayor pro Tem Moorpark
Kim Nguyen Council Member Garden Grove
Glenn Miller Council Member Indio
Eighteen years. The fact that everything takes longer to accomplish than you think it will, often for a good reason.
Two years. Drink from the water fountain of information, not the hydrant.
Ten years. The breadth of knowledge you need to accumulate to make sound, informed decisions.
Western City, January 2019
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