Western City October 2020 by Western City Magazine

OCTOBER 2020 |

The Monthly Magazine of the League of California Cities

Libraries Respond in Crisis and Beyond p.6 Maximize Your Virtual Annual Conference Experience: 10 Ways to Prep Like a Pro p.10 What You Need to Know About Municipal Finance p.15

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CONTENTS 2 Calendar of League Events President’s Message 3 An Unconventional Year

By John F. Dunbar

I n circumstances as transformative as a global pandemic and a groundswell of civil unrest, effective leadership requires the ability to adapt.

15 What You Need to Know

About Municipal Finance

By Heather Cousin

L ibrary staff throughout California put on masks and gloves and transformed their work with new processes and procedures and with safety and community service as their top priorities.

News From the Institute for 9 Local Government

Coronavirus Lockdowns Spark a Boom in Online Learning

By Erica Manuel

on’t miss ILG’s upcoming sessions D on virtual community engagement, SB 1383 organic waste requirements, essential ethics training, and more.

aximize Your Virtual M Annual Conference Experience: 10 Ways to Prep Like a Pro

By Katie Pebler

et practical tips for a valuable and G memorable experience.

Expo Exhibitors 12

Employment Litigation Related to COVID-19

Recent Major Developments in the Law

By Michael G. Colantuono

California’s appellate courts have delivered three very significant decisions involving municipal revenues.

By Brian P. Walter and Alexander Volberding

17 Is Your City Really

Given the unique employment issues resulting from the pandemic, public agencies should be prepared for an increase in legal, administrative, and contractual claims.

Job Opportunities 30

Prepared for Rising Pension Costs?

#LocalWorks

Libraries Respond in Crisis and Beyond

28 Best Practices to Avoid

By Rachael Sanders and Charlie Francis

Revenues are not keeping pace with pension expenses. Learn how your city can prepare for ongoing economic uncertainty.

19 Leadership in a Time

Professional Services 35 Directory

over photo: A costumed Placentia C Public Library staffer delivers books for curbside pickup.

of Uncertainty, Fear, and Recovery

By Ken Pulskamp

In many ways, 2020 has been incredibly difficult for California’s public servants. Learn from city managers and a mayor on the front lines.

21 Regional Partnership:

How to Address Homelessness Differently

By Damien R. Arrula and Aaron France

Twelve cities in northern Orange County collaborated to create a system of regional centers providing safe shelter and supportive services.

Legal Notes 25

SB 450: A Path Toward Improving Communities

The California Municipal Revenue Sources Handbook FIFTH EDITION

An essential resource for any official involved in local government finance in California. The handbook includes: • • • • • •

Data and charts Relevant history and issues Legal references Definitions of terms Capital financing and cost recovery A detailed guidance for calculating an agency’s Gann Appropriations Limit

The California Municipal Revenue Sources Handbook FIFTH EDITION

By Valerie Escalante Troesh and Matthew R. Silver

y waiving environmental review for B qualifying projects and incentivizing investments, SB 450 may aid cities’ efforts to combat homelessness. Michael Coleman

PURCHASE YOUR COPY TODAY www.cacities.org/publications

1400 K Street, Sacramento, CA 95814 (916) 658-8200; Fax (916) 658-8240

First Vice President Cheryl Viegas Walker Council Member El Centro

Second Vice President Cindy Silva Council Member Walnut Creek

Immediate Past President Jan Arbuckle Council Member Grass Valley

Magazine Staff

For a complete list of the League board of directors, visit www.cacities.org/board.

Editor in Chief Jill Oviatt (916) 658-8228; email: joviatt@cacities.org

leaguevents

Managing Editor Jude Lemons, Citrus 3 Communications (916) 658-8234; email: editor@westerncity.com Contributing Editor Kayla Woods (916) 658-8213; email: kwoods@cacities.org Business and Creative Manager Amanda Cadelago (916) 658-8226; email: acadelago@cacities.org Advertising Sales Cici Trino Association Outsource Services, Inc. (916) 961-9999; email: cicit@aosinc.biz Administrative Assistant Savannah Cobbs (916) 658-8223; email: scobbs@cacities.org

Executive Director Carolyn Coleman

OCTOBER 7–9

League of California Cities Annual Conference & Expo, Virtual Event The conference offers educational sessions, professional development activities, exhibits, and a chance to participate in the League’s policymaking activities.

Board of Directors Meeting, Virtual Event The League board reviews, discusses, and takes action on a variety of issues affecting cities, including legislation, legal advocacy, education and training, and more.

Contributors Kayla Boutros Rebecca Inman Melissa Kuehne Alison Leary Corrie Manning Melissa Tualla Jennifer Whiting

16, 23, 30, and November 6

Associate Editors Carol Malinowski Carolyn Walker

City Attorneys’ Department Virtual Conference Conducted over four consecutive Fridays, the virtual conference provides training on cutting-edge issues in municipal law.

December Board of Directors Meeting, Virtual Event The League board reviews, discusses, and takes action on a variety of issues affecting cities, including legislation, legal advocacy, education and training, and more.

Design Taber Creative Group Advertising Design ImagePoint Design

7, 9, and 11

For photo credits, see page 31. 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.

NT RI

ED US IN

Postmaster: Send address changes to Western City, 1400 K Street, Sacramento, CA 95814. Western City Trademark Reg. U.S. Pat. Off. ©2020 League of California Cities. All rights reserved. Material may not be reprinted without written permission. This issue is Volume XCVI, No. 10.

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President John F. Dunbar Mayor Yountville

League of California Cities

Municipal Finance Institute, Virtual Event This conference provides essential information for city officials and staff involved in fiscal planning for municipalities.

Fire Chiefs Leadership Seminar, Virtual Event This virtual event features a department business meeting and a session of importance to city fire service professionals.

17 and 18

City Clerks New Law & Elections Seminar, Virtual Event The seminar covers laws affecting elections as well as other aspects of clerks’ responsibilities.

Event and registration information is available at www.cacities.org. For legislative and policy updates and more, follow @CaCities. Follow Western City @WesternCityMag. Join us on Facebook. www.facebook.com/westerncity www.facebook.com/LeagueofCaCities Visit us on LinkedIn at Western City Magazine. www.cacities.org

President’s Message by John F. Dunbar

An Unconventional Year

I should have expected my year as president of the League would be unconventional. It started that way. My tenure as first vice president lasted only six weeks. After former Murrieta Mayor pro Tem Randon Lane resigned from the position to accept a post in the U.S. Department of Transportation, suddenly I was the one on stage during the 2019 Annual Conference & Expo accepting the presidential pin from outgoing League President Jan Arbuckle, one year earlier than planned. Shortly after that, things started to get even more interesting. About two weeks after taking office, I had a Skype interview at 7:00 a.m. on a Sunday with CNN International about the economic impacts of wildfires and utilityinitiated power shutoffs. That altered my expectation about “work hours.”

The next day, we co-hosted with our California State Association of Counties colleagues a homelessness workshop in Sacramento that was interrupted by a group of protesters who forced their way into the hotel conference room. Trying to avoid a national headline-making scene, I invited the demonstrators onto the stage for three minutes each of public comment. Fortunately, that diffused the tense situation. Two weeks later, I traveled to the National League of Cities (NLC) City Summit in San Antonio, where the California delegation celebrated Los Angeles City Council Member Joe Buscaino becoming NLC president by dancing onstage with the Beach Boys.

CNN International interviews League President John Dunbar about how utility-initiated power shutoffs and wildfires affect California’s economy.

The next two months had a more normal rhythm, with a League Leaders meeting and a board meeting in Napa in December. In typical fashion, League members headed home afterward with our top strategic priorities in place: housing, homelessness, disaster preparedness and resiliency, pension reform, and public safety. The game plan was set for the coming year.

Hitting the Ground Running in 2020 We started 2020 in full swing, advancing our strategic priorities and welcoming newly elected local leaders at the New Mayors and Council Members Academy, policy committee meetings, and legislator meetings in the state Capitol in January. February included our board meeting in Yountville highlighted by a visit with Gov. Gavin Newsom, followed by an advocacy trip to Washington, D.C. At that time, we were making real progress on homelessness and housing, and it would have been hard to see how any other issue could have eclipsed these priorities. continued

That was month one. www.westerncity.com

Western City, October 2020

An Unconventional Year, continued

During an early March trip back to D.C. for the NLC Congressional City Conference, everything took an unexpected and troubling turn. While visiting the White House and meeting with congressional leadership, the severity and scope of the COVID-19 outbreak was starting to become apparent. Traveling with League officers and staff, it wasn’t clear until the last moment if we could even fly home as the coronavirus transformed into a global pandemic. While our original priorities didn’t disappear, our focus shifted quickly to the public health crisis that was starting to spread throughout our communities. Almost overnight, we had orders to stay home, schools and businesses closed, and our public health systems were filled with sick and dying residents stricken by COVID-19. As local revenues almost completely disappeared, city leaders needed to figure out how to support local businesses, hold public meetings virtually, retool budgets, and shift some municipal services and programs online, while absorbing workforce changes and telecommuting. Then, on May 25, our nation was rocked by the brutal killing of George Floyd while he was handcuffed in police custody. His senseless death, along with the racially motivated deaths of countless

other Black Americans, launched a movement that continues to demand justice and equity in the treatment of all people, regardless of color. Demonstrations in many of our cities have represented the pain and frustration resulting from generations of systemic injustice and bias. In response, local leaders were compelled to evaluate, reimagine, and open dialogue with community members to reform our institutions to achieve social justice and racial equity. League members and staff have continued to work together to drive the change and accountability needed in all our communities. Going forward, our city operations and services should be evaluated through an equity lens to ensure that we are the generation of local leaders who support total and sustainable liberty and justice for all.

The Ability to Adapt Especially under circumstances as transformative as a global pandemic and a groundswell of civil unrest, effective leadership requires the ability to adapt. We have witnessed that with our city colleagues, and we see it in our League staff. Community service and legislative advocacy did not waver even as we transitioned to working and learning from home, navigating an unprecedented public health response, and managing severe budget shortfalls.

Still, we endured. With little choice, we transformed these challenges into opportunities. Instead of traveling to educational seminars, regional division meetings, and events in cities throughout California, I learned to engage city colleagues, League staff, and our League Partners in thumbnail size on my laptop from my home office. As I assumed the presidency during last year’s annual conference, I said that the personal relationships we build through the League hold significant and lasting benefits. Even though we have not been able to gather in person, meeting virtually has fostered surprisingly deep connections.

Acknowledging Leadership and Support With this new way of conducting business, the importance of a unified League voice and focus has been magnified, so we can maintain our ability to work with our state representatives and influence legislation. Through it all, the professionalism, demeanor, and knowledge displayed by our officers and League leadership is a true source of pride and respect. First Vice President Cheryl Viegas Walker has led El Centro through extreme public health challenges. Second Vice President Cindy Silva has responded to peaceful protests as well as destructive looting in Walnut Creek. Immediate Past President Jan Arbuckle has continued

President Dunbar speaks to California city officials; Gov. Gavin Newsom and Dunbar talk during a break at a League board meeting; Dunbar addresses NLC conference attendees; and at NLC, Dunbar and colleagues dance as the Beach Boys play.

clockwise from far left

League of California Cities

www.cacities.org

The League conducts a policy committee meeting via Zoom.

to represent Grass Valley and the League, advocating for our aging populations and rural communities. Words cannot fully express my appreciation for our entire League team that has elevated their already exceptional advocacy and support for all California cities. While trading trips to Sacramento for Zoom calls several times a week, the education and support I’ve received despite League office closures, a dramatic shift in the work environment, and an unpredictable legislative calendar has been impressive and greatly appreciated. Knowing I will fail to name all who are deserving, I want to express my special thanks to Executive Director Carolyn Coleman; Executive Assistant Pam Herrera; Deputy Executive Director, Advocacy and Public Affairs Melanie Perron; Deputy Executive Director, Finance and Operations Norman Coppinger; Director of Communications and Marketing

www.westerncity.com

Jill Oviatt; Executive Communications Specialist Kayla Woods; Legislative Director Jason Rhine; Director of Public Affairs Bismarck Obando; Director of Education and Member Services Jennifer Whiting; and North Bay Division Regional Public Affairs Manager Nancy Hall Bennett.

A phrase I often have shared with the board officers and League leadership during our weekly virtual meetings is, “Hard things are hard.” What 2020 taught me is that even during an unconventional and grueling year, hard things were no match for the dedication and resilience of our League team. ■

Western City, October 2020

A costumed Placentia Public Library staffer delivers books for curbside pickup; a Redwood City Public Library staffer carries materials to residents picking up orders; cars arrive for curbside pickup service in Placentia; and a toddler watches the Placentia Public Library’s storytime.

clockwise from left

Libraries Respond in by Heather Cousin

Crisis and Beyond

The Thousand Oaks Library abruptly transitioned to entirely virtual library operations in March 2020 in response to the COVID-19 pandemic. One of the library’s first challenges was how to accept the return of roughly 30,000 physical items checked out before the shutdown. Ultimately, staff decided that a drivethrough service would be ideal, and in late May, the library launched its curbside checkout program. Library staff welcomed carloads of families and individuals who expressed how grateful they were to see familiar faces again and check out items. As they

drove through the checkout line, patrons thanked staff by name, recognizing most of them even with masks on. For some, it was their first trip out of the house in weeks — and they were looking forward to picking up something special from their public library. In Monterey County, staff kept even their most geographically distant patrons supplied with every type of library material through the popular Library by Mail program. And library staff served over 12,000 meals and handed out activity bags during the Summer Lunch at the Library program, in addition to providing other services to the community.

The Placentia Public Library assembled its “sewing squad” in the earliest days after Gov. Gavin Newsom issued a stayat-home executive order on March 19, 2020, to slow the spread of COVID-19. By April, the team had made 2,000 masks that were mailed directly to patrons’ homes. The Placentia team also began posting virtual storytime sessions for their youngest patrons, complete with stories, songs, and games, just like the popular programs toddlers and children enjoyed in the library before the pandemic. When the shutdown began, the Redwood City Public Library staff helped the city’s economic development manager reach

Heather Cousin is library services director for the City of Thousand Oaks and can be reached at hcousin@tolibrary.org.

League of California Cities

www.cacities.org

Efforts like these were underway throughout California as library staff put on their masks and gloves and transformed their work — with a new set of processes and procedures and with safety and community service as their top priorities.

In addition, libraries including the San Francisco Public Library and Glendale Library employ social workers who actively seek out those needing services or referrals to community agencies, shelters, or food programs.

Beyond Books: Providing Essential Services to Support Community Needs

During the COVID-19 pandemic, library staffs statewide have been working in food pantries, making masks for first responders, or serving meals at temporary homeless shelter sites as part of their efforts to help meet local needs.

In California communities, over 1,100 public libraries provide myriad resources and services that extend far beyond their core function of offering materials to inspire, inform, and engage users of all ages. In 2019 and 2020, municipal and county public libraries in California: out to over 6,600 local businesses with information on financial support available from local, state, and federal sources. The library staff made over 8,000 phone calls to businesses in Redwood City and called more than 150 child-care centers to let them know about resources available to them. In addition, 10 bilingual library staff members were deployed as disaster service workers to assist with food distribution, answer phones at a rental assistance hotline, and process rental assistance applications to help quickly distribute over $1.7 million in aid to more than 1,300 families.

• Served 289,000 summer lunches for children who qualify for free and reduced school lunch programs. • Helped adults earn their diploma through the Career Online High School Program (1,600 students graduated in 2020). • Served as a trusted source of news and information about the U.S. Census, promoting participation, informing their communities about the use of census data, and answering questions.

For decades, libraries have adapted their services to keep pace with technology and changing community needs. Most importantly, libraries have become key to a community’s ability to connect residents with services during and after disasters. Summer 2020 brought another devastating wildfire season to California, compounding the challenges of the pandemic and recovery. As cities continue facing unprecedented circumstances, the library’s role and unique capacity to build community resilience will be even more critical.

Responsive Programs and Staff Build Community Resilience The public library is rich in resources, and none is more precious than its well-trained and trusted staff. The public’s connection with staff adds tremendous value to the continued

Prior to the COVID-19 pandemic, the Thousand Oaks Library provides a Read to Succeed program and a local Disaster Assistance Center; and the Placentia Public Library adapts its front counter to observe safety protocols during the pandemic. left to right

Western City, October 2020

Libraries Respond in Crisis and Beyond, continued

Libraries have become key to a community’s ability to connect residents with services during and after disasters.

library and the community it serves. After major disruptive events occur, library staff provides a sense of continuity and calm — whether leading classes on tapping into grant opportunities and small business resources, partnering with local agencies and giving them space to meet with clients when their offices are unavailable, or simply offering a safe place for yoga classes and book discussion groups. From functioning as a gathering place to providing stable internet connections, libraries serve as a communication hub in the community. Beyond the place and technology, libraries are filled with familiar faces. The highly competent staff can communicate in a variety of languages, and they are known throughout the town. The same person you and your children love from storytime is also the one you will trust to help you find the

closest evacuation shelter during a fire, to help you determine whether the information on a website can be trusted, or to tell where you’ve been for the last two weeks during a contact tracing interview. But it’s not just in times of crisis that libraries play this unique role. In fiscal year 2018–19, local libraries in California hosted over 435,000 programs with more than 10 million attendees. These programs offered everything from school readiness skills for students to enrichment activities for seniors with cognitive challenges. People find and build community at their local library as much through the programming and services as through the collections. Those interactions spark conversations that foster friendships and relationships that enable richer, deeper community discussions of all kinds. Such connections are essential to enhancing and building community resilience.

Children enjoy the Placentia Public Library’s storytime.

As the 21st century’s living room, the public library is the place where our California communities are choosing to gather. They are coming to us to learn from our resources and each other, to hear lectures or be tutored by study partners, to let their spirits soar, or find comfort and support when tragedy strikes. The public library is nothing like it used to be and everything it always was. ■

Learn More at the 2020 Annual Conference & Expo When cities were faced with responding to COVID-19, many turned to libraries to fill gaps no other agencies could. From lending Wi-Fi hot spots for distance learners to setting up child-care centers for first responders, library staff answered the call. This quick transition from information centers to virtual community centers is not new for the library. In addition to traditional services, libraries provide support for job training, early education, wellness, and more. To learn more, attend the session titled “Libraries Respond in Crisis and Beyond” at the League of California Cities 2020 Annual Conference & Expo, Oct. 7–9. This session will demonstrate how a well-trained staff and solidly equipped facilities can produce a huge return on investment and serve as a crucial element in your city’s emergency preparedness toolkit. See page 10 for more conference details; to register, visit www. cacities.org/events.

League of California Cities

www.cacities.org

Coronavirus Lockdowns Spark a Boom in Online Learning by Erica Manuel As organizations throughout the state postpone and cancel in-person conferences in response to the coronavirus, online workplace learning is one of today’s fastest-growing trends. Webinars abound on a variety of topics aimed at helping local government staff and policymakers navigate this complex environment and learn new skills. Changes in work and home environments have led to increased responsibilities for many, and South Gate City Manager Michael Flad said this is the perfect time to turn to online learning. “We are encouraging staff to take full advantage of the online opportunities to enhance their skill sets,” said Flad. “You can either be frustrated by the changes in daily life due to the coronavirus or use them as an opportunity.” Lifelong educator and East Palo Alto Council Member Ruben Abrica agrees; he has been participating in as many online opportunities as possible. “Local government and the public benefit greatly from webinars when they are well-planned and focused and cover a diversity of timely issues,” said Abrica. Digital engagement and online learning can be incredibly efficient and cost-effective, but it can also be mentally tiring. Consequently, it is important to ensure that meetings, webinars, and content delivery are appealing and take into account all learning types and personalities. Over the past few months, the Institute for Local Government (ILG) has hosted numerous webinars on a variety of topics ranging from housing and disaster recovery to virtual engagement. ILG has also experimented with a variety of platforms, technology solutions, and techniques to engage our audience and make learning fun. You can find recordings of these webinars at www.ca-ilg.org/pastwebinars. We also invite you to register for our virtual sessions at the League of California Cities 2020 Annual Conference & Expo and see our techniques in action. Visit www.cacities.org/events for complete information about the conference schedule, and join us for the following conference sessions.

What to Do When In-Person Engagement Isn’t Possible The COVID-19 pandemic has created a new reality in many sectors, including public participation. In this session, city leaders will learn how to leverage virtual platforms to engage residents on budgeting, land-use planning, and transparency without meeting face to face. Many of these tools and techniques, while essential in this time of physical distancing, also have the potential to attract new, hard-to-reach segments of the community and will be useful beyond the current crisis.

clockwise from top left

Annual Conference sessions will feature speakers Cara Morgan, Charles Helget, and Jennifer Chong on SB 1383, and David Loya on public engagement.

Local Government Apprenticeship and Workforce Strategies: A Latino Caucus Perspective Apprenticeships are one solution that can meet your agency’s talent development needs for new and incumbent employees. Through partnerships with community colleges statewide, cities can strengthen and sustain a skilled workforce that meets evolving community needs. In this workshop, you will learn how apprenticeships can benefit your organization economically and socially and how to make them work in your city.

Scrap Your Fears About Food Waste Regulations: Preparing for SB 1383 The plates of city staff are full. From managing pandemic response efforts to rolling out electric vehicle infrastructure, they have no shortage of challenges to tackle. But there is one topic that often slips right off the plate: food waste. New requirements around organic waste recycling are coming, and cities are scrambling to position themselves to meet the aggressive targets required by law. This session will cover how SB 1383 regulations will impact your city services and delivery, and you will hear from colleagues about promising practices for developing and implementing local programs to reach the statewide organic waste reduction targets.

State-Mandated Ethics Training for Elected Officials The ILG team will also help local elected officials ensure that they are in compliance with state-mandated ethics requirements. Please join us for both sessions to make sure your certifications are current: • Public Service Ethics Laws and Principles: AB 1234 Training • Harassment Prevention Training for Supervisors and Officials: AB 1661 Training ILG is committed to helping local government leaders navigate complex issues, increase capacity, and build trust in their communities. For more information about our programs, training options, and other resources, visit www.ca-ilg.org. ■

Erica Manuel is CEO and executive director of the Institute for Local Government and can be reached at emanuel@ca-ilg.org.

www.westerncity.com

Western City, October 2020

ANNUAL CONFERENCE & EXPO 2020 OCTOBER 7–9

Maximize Your Virtual Annual Conference Experience: 10 Ways to Prep Like a Pro by Katie Pebler

It’s time to get ready for the 2020 Annual Conference & Expo! Are you excited? We are! Preparing for a three-day virtual conference will be different from preparing for a face-to-face conference. You don’t need to book a hotel or airfare, but you can take many actions to help create a valuable and memorable experience. Enjoy this list of top 10 ideas to get the most out of the event.

1. Take time to familiarize yourself with the technology. We know, we know — few people like to learn new technology, but the League has designed an easy-to-use and interactive website specifically for the Annual Conference & Expo. After you receive your unique login a few days before the conference, take some time to familiarize yourself with the features of the conference platform.

2. Review the session descriptions and bookmark the session materials page. The lineup of sessions may be hard to choose from, so it’s a good idea to pick your priority sessions. Recordings of the sessions will be available for viewing for six months after the conference, so you’ll want to decide which to attend live and which to schedule for later viewing. All session materials will be posted as they are received online at www.cacities.org/acmaterials. Staff highly recommends that you bookmark the session materials page to easily pull up the presentations you will see. Pro tip: Spend a few minutes adding your must-see sessions to your Outlook or Google calendar, and include time to review recorded sessions after the conference.

3. Attend the sessions from the best seat in the house. The Annual Conference Opening General Session begins at 10:00 a.m. on Wednesday, Oct. 7. Join us from your preferred remote spot with your favorite snack, a notebook to jot down your take-aways, and a good set of speakers or headphones. Make sure your water bottle is filled and ready to go, and plan to watch a couple of sessions in a non-office setting, such as your backyard or patio. All you need is your laptop or favorite mobile device. Cue the slippers!

4. Find new ideas and state-of-the-art products and services inside the Virtual Expo. The first-ever Virtual Expo will present many companies offering online videos, product showcases, related upcoming events, and much more. Speak to the sales staff for demonstrations of how their products and services can improve all facets of city business within the California economy. You’ll find it very convenient to locate all exhibitors by product categories and company names. Look for a direct link on the conference website to visit the Expo anytime during the conference.

5. Save time for networking. This conference is not just about the presentations. Take advantage of the many opportunities for networking in the Virtual Expo and at scheduled events such as the CitiPAC Reception and diversity caucus and division events. Don’t forget to download or create a variety of virtual backgrounds to use during networking events!

Katie Pebler is conference program manager for the League and can be reached at kpebler@cacities.org.

League of California Cities

www.cacities.org

6. Review the Annual Conference Resolutions. Policy development is a key part of the League’s legislative effectiveness. Annual Conference Resolutions provide a way for city officials to directly participate in developing League policy. Resolutions must focus on direct municipal issues of statewide importance and can be submitted by any elected or appointed city official, individual city, division, department, policy committee, or the board of directors. Resolutions for 2020 were due to the League Aug. 8. All background information and resolutions are available at www.cacities.org/resolutions. A petitioned resolution can also be introduced during the Annual Conference to address any late-breaking issues. Resolutions will be considered up to three times: before the conference at policy committee meetings, during the conference at the General Resolutions Committee meeting, and finally during the General Assembly. Each city council designates a voting delegate to represent its city during the General Assembly. Your city may also appoint up to two alternate voting delegates who may vote if the designated voting delegate is unavailable.

7. Get acquainted with the League Partners. In addition to the exhibitors, attendees will find a special zone to visit the League Partners in the League Partners Pavilion of the Virtual Expo. Many League Partners will also host booths in the Virtual Expo. Take some time to get to know these companies and organizations that support cities in a variety of ways throughout the year. And cities receiving a 2020 Helen Putnam

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Award, a program sponsored by the League Partners, can also be found in the Expo.

8. Visit the Member Services Booth in the Virtual Expo. League members have access to a wealth of information and opportunities to get involved and better their communities. Visit the Member Services Booth, located in the Virtual Expo hall, for information on opportunities for professional growth and League services available to you and your city.

9. Plan to attend your department meeting. If you have not been to a department meeting at the League’s Annual Conference, you are missing out. Department meetings are made up of your colleagues in similar professions throughout California. Attendees gather to discuss the issues they are facing, hear timely legislation updates, and ultimately find common ground that propels their work on unified department goals, thus setting the course for positive change in their communities.

10. Avoid multitasking so you don’t miss the inspiration. Aside from networking, most conference goers place inspiration and education at the top of their lists as the main reasons to attend a conference. This year’s virtual event has plenty of both to find, but we all know how easy it is to get sidetracked with email and other tasks. Take advantage of the scheduled breaks and check email as you would regularly, and set a timer to alert you when the next session is starting. Be inspired in the moment as you listen to speakers who will provide you with new tips, tools, and ideas to take back to your city. ■

Western City, October 2020

Annual Conference & Expo 2020

Expo Exhibitors Accela* Aleshire & Wynder, LLP Alliance Resource Consulting, LLC Ameresco Anaergia Asphalt Zipper, Inc. AT&T

California Department of General Services

Dapeer, Rosenblit & Litvak, LLP

California Department of Housing and Community Development

DRC Pacific

California Health Collaborative California Joint Powers Insurance Authority

DAVE BANG ASSOCIATES

DTA ECORP Consulting, Inc. ENGIE Services U.S.* Enterprise Fleet Management*

Avenu Insights Analytics*

California Statewide Community Development Authority

Bang the Table

California Water Service

FlashVote

Berliner Cohen, LLP

CalTrust

ForeFront Power

Blais & Associates, Inc.

Charles Abbott Associates, Inc.

GameTime c/o GWR & MRC

Bob Murray & Associates

CIMCON Lighting, Inc.

GHD

Bureau Veritas North America, Inc.

Climatec, LLC*

Granicus

Burwood Group

Contractor Compliance & Monitoring, Inc.

Graphic Solutions

Counting Opinions (SQUIRE)

HdL Companies

CSG Consultants, Inc.

Holman Capital Corporation

Cyber Defenses

INFRAMARK

California Citrus Pest & Disease Control California Consulting, Inc.

Fieldman, Rolapp & Associates, Inc.

Greenfields Outdoor Fitness

League Partnersâ&#x20AC;&#x2122; names appear in bold. Institute for Local Government Partners are in blue. CitiPAC supporters are marked with an asterisk. The list is current as of Sept. 18, 2020. For an updated list, visit www.cacities.org/expo.

League of California Cities

www.cacities.org

Intelligent Traffic Equipment Marketing Ltd.

SyTech Solutions

Vanir Construction Management, Inc.*

The Pun Group, LLP

Wells Fargo

Interwest Consulting Group*

Trane Energy Services

West Coast Arborists, Inc.

Johnson Controls*

Transtech Engineers, Inc.

Willdan

Kaiser Permanente

UC Davis Continuing & Professional Education Land Use & Natural Resources

Working Scholars â&#x2013;

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What You Need to Know About Municipal Finance Recent Major Developments in the Law by Michael G. Colantuono California’s appellate courts have delivered three very significant decisions involving municipal revenues in the past few months. Most significant is the San Francisco Court of Appeal’s landmark decision in City and County of San Francisco v. All Persons Interested in the Matter of Proposition C. The case concludes that special taxes do not require two-thirds voter approval if proposed by initiative under Proposition 13 (1978), Prop. 218 (1996), or San Francisco’s charter. The decision follows on a 2017 decision of the California Supreme Court under Prop. 218 in California Cannabis Coalition v. City of Upland. That case challenged Upland’s refusal to call a special election on an initiative proposal to allow marijuana dispensaries. The city argued the measure imposed a general tax, because it required each dispensary to pay a regulatory fee that the city concluded would exceed its cost to regulate. A provision of Prop. 218, a 1996 initiative amendment to California’s Constitution, requires local general taxes (those that can be used at the discretion of the legislative body) to appear on general election ballots when city council or board of supervisors seats are contested. In Upland, the Supreme Court concluded that Prop. 218 did not apply to initiative tax proposals because “local government” did not include the electorate exercising its initiative power. The decision was written broadly, however, and raised immediate

questions about its implications for other provisions of Prop. 218, specifically the two-thirds voter approval requirement for special taxes. The late Burk “Buck” Delventhal, a respected deputy city attorney of San Francisco who had litigated some of the earliest cases involving Prop. 13, prepared a public opinion for his office concluding that initiative special tax proposals could be approved by a simple majority. San Francisco promptly set out to test Delventhal’s opinion. San Francisco voters approved Prop. C in 2018 to raise a business license tax to fund homeless services. It passed with 61 percent, and the city filed a validation action to test whether it could be enforced despite the lack of two-thirds voter approval. The California Business Properties Association, the Howard Jarvis Taxpayers Association, and the California Business Roundtable answered the published summons to argue for the two-thirds requirement. The trial court ruled for the city, citing Upland.

The three business associations argued that two-thirds voter approval was required by Prop. 13, Prop. 218, and the city charter, which extends the initiative power to measures “within the powers conferred upon the Board of Supervisors to enact.” The appellate court disagreed. First, the court concluded that Prop. 13 was ambiguous as to whether its twothirds voter approval requirement for special taxes applies to initiatives, because it makes no express reference to initiatives. Under the laws governing how legal texts are interpreted, this ambiguity allowed the court to resort to extrinsic evidence to determine the voters’ intent — the ultimate issue to be decided. The two-thirds voter approval requirement is in conflict with the initiative provisions of the state Constitution, which require only simple-majority approval of initiatives. Several doctrines favor construing Prop. 13 not to require two-thirds voter approval for initiative special taxes. Among these was language from the California continued

Michael G. Colantuono is a shareholder in the law firm of Colantuono, Highsmith & Whatley PC and can be reached at mcolantuono@chwlaw.us.

www.westerncity.com

Western City, October 2020

What You Need to Know About Municipal Finance, continued

Supreme Court’s 1982 decision in City and County of San Francisco v. Farrell (one of Delventhal’s cases) narrowly construing the supermajority requirements of Prop. 13 because they are anti-majoritarian. This theory was not often cited in the years following the 1986 recall of Chief Justice Rose Bird and two other justices and the

creation of a very conservative judiciary under the Deukmejian and Wilson administrations. California has since changed greatly and its courts along with it, especially after former Gov. Jerry Brown’s second, eight-year stint in office. In addition, contemporaneous construction of Prop. 13 by the Legislature did not show Prop. 13

was intended to limit the initiative power. This reflects a rule of construction that requires a court to consider the Legislature’s views on a measure’s meaning if the Legislature expresses such a view at about the same time as voters approved the measure. The appellate court also concluded Prop. 218 does not require two-thirds voter approval of initiative special taxes, noting it was intended to be construed similarly to Prop. 13. It cited Upland’s conclusion that “local governments” as used in Prop. 218 means legislative bodies, not voters, and noted that Prop. 218’s ballot materials did not indicate intent to limit the initiative power. As to San Francisco’s charter, the court applied the rule that procedural restrictions on legislation by legislators are not applied to voters legislating by initiative. Now that the California Supreme Court has denied review, the case is the most significant change in local governments’ revenue authority since Prop. 26 (2010). But the story continues to unfold. A trial court in Oakland reached the opposite conclusion, and the appeal in that case is now being briefed. That appellate court could disagree. A Fresno court also ruled that the two-thirds rule applies to local government initiatives, and an appeal is pending in the appellate court in that city. That case was fully briefed as of continued on page 31

San Francisco’s Prop. C victory is a major development for local taxes. 16

League of California Cities

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Is Your City Really Prepared for

Rising Pension Costs? by Rachael Sanders and Charlie Francis For years now, the rising costs of pensions have affected public agencies. Revenues are not keeping pace with the expenses of employee benefits and basic services, and these costs are eating away at local government budgets throughout California. In 2020, California cities have faced even more adversity due to the damaging effects of COVID-19. Similarly, pension systems like the California Public Employees Retirement System (CalPERS) have suffered in the current economic environment, realizing only a 4.7 percent return for fiscal year 2019–20, while its discount rate remains at 7 percent. Pension systems falling short of their targeted returns can mean only one thing for California cities: higher anticipated employer contributions. In the session titled “Is Your City Really Prepared for Rising Pension Costs?” at the League of California Cities 2020 Annual Conference & Expo, learn what your city can start doing today to prepare for continuing trends of economic uncertainty and hardship. In particular, the session will cover the option of prefunding pension costs in a Section 115 Trust. A panel of experts will provide you with an overview of a pension prefunding trust and its advantages, such as investment flexibility,

how it can improve your balance sheets, and how it can affect your long-term obligations. The panel will also present a case study from Sausalito, one of many cities that used this strategy to address its pension obligations, and will discuss the lasting impacts achieved.

Options to Reduce Pension Liabilities and Annual Costs The City of Sausalito considered its pension obligations very seriously and continually examined all options to reduce pension liabilities and annual costs. Consequently, Sausalito implemented policies for reform that focused on the variables that the city could control, such as not increasing benefits during the dotcom era, requiring that employees pay the employee portion of CalPERS contributions, paying off CalPERS side funds, creating new classic pension tiers in the months prior to the implementation of the Public Employees Pension Reform Act (PEPRA), keeping wage and salary growth less than actuarial assumptions, negotiating with employees to pay up to 50 percent of total employer normal costs, and similar measures.

But even all those improvements could not mitigate the rate and unfunded liability volatility from one CalPERS actuarial report to the next; there were just too many variables outside the city’s control. To stabilize rates charged to the city’s General Fund, the city’s Finance Committee looked at developing a pension funding methodology, which involved answering these questions: • What is the desired funding target, and what is the desired timeline to achieve that target? (Though 100 percent funding would be the presumptive goal, achieving this quickly could require drastic service reductions with corresponding workforce and community impacts; thus, a balanced and thoughtful strategy was necessary.) • Should the policy be evergreen (similar to a budget stabilization reserve policy)? It should guide staff and the council when certain parameters are met and should require action when those parameters are not met. The more conservative the policy, the more accountability it needs to include. continued

Rachael Sanders is a senior manager with Public Agency Retirement Services (PARS) and can be reached at rsanders@pars.org. Charlie Francis is former finance director for the City of Sausalito and a senior consultant with PARS; he can be reached at cfrancis@pars.org. www.westerncity.com

Western City, October 2020

Is Your City Really Prepared for Rising Pension Costs?, continued

• What can the city afford? • What is the most efficient use of its funding? Based on its answers, Sausalito had to look for new tools that best aligned with its considerations. First, the city stresstested its pension liabilities and costs, running various scenarios on discount rates, investment rates of return, wage

and payroll growth, and so forth. As a result of the stress testing, Sausalito found that its long-term financial plan could afford pension charges to its General Fund in excess of the CalPERS actuarially calculated percentage of payroll and unfunded actuarial accrued liability payments without affecting current levels of service or resources. But what to do with the excess funds over and above the annual required contribution?

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A Section 115 Trust provided the solution that Sausalito needed.

The Advantages of a Section 115 Trust The city’s only prior option was to commit those additional funds to CalPERS (in excess of its annual required contributions) to reduce its unfunded liability. However, a Section 115 Trust provider received a private letter ruling from the IRS indicating that municipalities could create a separate trust to prefund their CalPERS unfunded liabilities. This would provide Sausalito with an alternative to sending funds to CalPERS that would allow for greater local control over assets and portfolio management by a registered investment advisor selected and monitored by the city, with future excess contributions transferred to CalPERS at the city’s discretion. Sausalito realized the following benefits from this solution:

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Join us for our session, “Is Your City Really Prepared for Rising Pension Costs?” during The League of Cities Virtual Conference on October 7th from 4:00-5:15 pm!

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Is Your City Prepared for Rising Pension Costs ? Continuing trends of economic uncertainty and hardship due to the damaging effects of COVID-19 have made it now more important then ever for special districts to understand the importance of prefunding pension. The Pension Rate Stabilization Program (PRSP) was designed to provide public agencies with: • Investment flexibility for potential to earn greater rate of return than the general fund • No cost to set up, no annual fees and no minimum contribution requirements • A tool to mitigate long-term contribution rate volatility For more information please contact PARS at: (800) 540-6369 x 127 or info@pars.org www.pars.org

League of California Cities

• Investments tailored to the city’s unique demographics. • Oversight and local control of fund management selection and performance monitoring. • Increased flexibility on the use of trust assets. • Potential for a positive credit rating and investor consideration.

Explore This Solution at the Annual Conference The session titled “Is Your City Really Prepared for Rising Pension Costs?” at the League of California Cities 2020 Annual Conference & Expo, Oct. 7–9, will discuss in detail the benefits of prefunding a Section 115 Trust and why many cities are using it as a valuable tool to help address their ongoing pension obligations. See page 10 for more conference details; for registration information, visit www.cacities.org/events. ■

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Leadership in a Time of by Ken Pulskamp Uncertainty, Fear, and Recovery In many ways, 2020 has been incredibly difficult for California’s public servants. For the past few years, some of the deadliest wildfires in history have devastated the state; while many communities were still reeling from recovery efforts, widespread lightning strikes triggered another record-breaking fire season in August. On top of that, residents and city employees alike have become all too familiar with utility-initiated power shutoffs and the ensuing chaos that shutoffs bring. Cities started forming task forces and developing protocols for responding to these recurring disasters and events. Then the COVID-19 pandemic arrived and created a newfound respect for what “emergency preparedness” truly means. At the League of California Cities 2020 Annual Conference & Expo, Oct. 7–9, attendees will have the opportunity to hear how four city leaders have been addressing some of the most significant challenges of our time during a session titled “Leadership in a Time of Uncertainty, Fear, and Recovery.” Three city managers and a mayor will share insights gleaned from unique situations encountered in responding to the COVID-19 pandemic.

Meeting an Unprecedented Set of Challenges Whether you are your city’s top administrator or make policy decisions from the dais, no manuals or policies tell you how to deal with the stress and pressure of leading your community through a deadly global pandemic. This is especially true when situations change so rapidly that county and state governments have to constantly shift their regulations and recommendations to accommodate new scenarios — or when your residents and local businesses see conflicting reports about what they can and cannot do. In the City of American Canyon, the community received grim news in early April 2020 that Santa Rosa Detective Marylou Armer, an American Canyon resident, had died of complications caused by COVID-19. She was just 43 years old and the first

COVID-19 fatality in Napa County. The news sparked increased anxiety in the community about what cities in the region were collectively doing to protect residents. As more positive cases occurred in the city, external communications also required delicately balancing the community’s desire for details with Health Insurance Portability and Accountability Act (HIPAA) regulations about patient privacy. In the upcoming conference session, American Canyon City Manager Jason Holley will discuss his proactive approach to communications, such as his push to prepare a statement in case one of the city employees was diagnosed with COVID-19. But what happens when you are one of the infected employees? Laguna Beach City Manager John Pietig was diagnosed with a mild case of COVID-19 in late March 2020. “I am in good spirits, will continue to work from home, and expect to make a full recovery,” Pietig said in a virtual statement during a city council meeting. At a time when his agency was tackling the complexities of a very publicized battle about closing its public beaches, the city faced the additional challenge of its top administrator leading while in quarantine. As a small seaside town that relies heavily on tourism to support city services, Laguna Beach’s anticipated $27 million loss in revenue from March 2020 through June 2021 dealt a heavy blow to its economic recovery efforts. In the conference session, Pietig will describe his approach to leading the city through this difficult time. Santa Clarita, with Mayor Cameron Smyth at the helm, was one of many Los Angeles County cities frustrated with the ongoing “yo-yo” of regulations from the state and county about how local businesses should modify their operations in response to the pandemic. In late May 2020, the city petitioned its Fifth District county supervisor to request a variance from county ordinances. And in June 2020, the city partnered with multiple local economic entities to launch a program called Santa Clarita Safer Business continued

Ken Pulskamp is executive director of the California City Management Foundation and a former city manager; he can be reached at ken@cacitymanagers.org.

www.westerncity.com

Western City, October 2020

Leadership in a Time of Uncertainty, Fear, and Recovery, continued

Commitment. Mayor Smyth will discuss implementing a pledge for businesses to commit to slowing the spread of COVID-19 through practices such as conducting temperature checks on employees, intensifying cleaning and disinfection practices, and implementing contactless payment. Drawing on her experience in leading her community through challenges, Malibu City Manager Reva Feldman will preside on the panel to guide the conversation and garner key insights from the panelists. Feldman has implemented strategies from the Woolsey Fire emergency response to reach and inform Malibu residents during the COVID-19 pandemic, focusing her leadership skills on disseminating information and resources. She learned that in times of crisis, it becomes critical to take advantage of all communications media, from sandwich boards to sophisticated digital alert systems. Feldman will guide the conversation through lessons learned during COVID-19 toward key takeaways for use in current and future multi-layered crisis situations. All these stories may contain familiar elements that you have experienced in your own city or region. The strength of their leadership, the collaboration among multiple levels of government, and the willpower to make unpopular decisions set these particular cities apart. The speakers’ stories about embracing leadership in a time of uncertainty, fear, and recovery will offer practical tips, inspiration, and hope. ■

Annual Conference Session Will Cover This Topic in Depth Collectively, California had one of the most aggressive responses in the nation when it came to stay-at-home and social distancing directives during the early stages of the COVID-19 pandemic. This approach also meant a longer timeline for reassuring worried residents and business owners who were impacted economically and itching to return to normal life and activities. Plan to attend the League of California Cities 2020 Annual Conference & Expo session titled “Leadership in a Time of Uncertainty, Fear, and Recovery” to learn how four cities — American Canyon, Laguna Beach, Malibu, and Santa Clarita — coped with unique situations and kept their communities informed, calmed their staff, and paved the road to economic recovery.

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Buena Park Navigation Center welcomes homeless individuals; below the Placentia Navigation Center offers a safe place to sleep.

Regional Partnership: How to Address Homelessness Differently by Damien R. Arrula and Aaron France The U.S. Court of Appeals for the Ninth Circuit ruled in Martin v. City of Boise in September 2018, a case of importance to cities throughout the Ninth Circuit jurisdiction, which includes California. The court ruled that enforcement of ordinances against homeless individuals is unconstitutional when those individuals do not have a meaningful alternative, such as shelter space or a legal place to camp. In an effort to comply with the Martin v. City of Boise decision, 12 cities in northern Orange County that comprise the North Specific Planning Area of Orange County (N-SPA) collaborated on a regional approach to address homelessness. The 12 cities include Placentia, Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Villa Park, Stanton, and Yorba Linda. The N-SPA cities adopted this unique approach as a proactive response to a series of civil rights lawsuits filed against cities and counties (including Orange County) under the Martin v. City of Boise decision to challenge their authority to enforce anti-camping or anti-loitering ordinances against unsheltered individuals and specifically in those jurisdictions that lacked adequate overnight shelter capacity for their homeless population. To avoid the cost and expense of litigating issues that were essentially resolved in Martin v. City of Boise, each city in the N-SPA voluntarily entered into a settlement agreement that established a comprehensive shelter plan for the region. U.S. District Court Judge David O. Carter accepted the settlement agreement and will oversee the

parties’ implementation of the shelter plan during the agreement’s four-year term.

Details of the Agreement The goal of the settlement agreement was to create a system of regional navigation centers that would provide safe shelter and an array of supportive services to homeless residents of the North Orange County region. To accomplish this, the agreement provided for: 1. The N-SPA cities to develop two new navigation centers offering at least 200 shelter beds. 2. The cities’ sharing of referral capacity in the two new navigation centers, together with capacity available in existing shelters in the N-SPA. 3. The N-SPA cities’ enforcement of anticamping and anti-loitering ordinances after the two new navigation centers were operational, using agreed-upon enforcement procedures. These procedures are designed to facilitate the placement of unsheltered individuals in appropriate temporary housing, decrease the frequency of negative encounters, respect individuals’ rights, and comply with Martin v. City of Boise.

The N-SPA cities entered into a memorandum of understanding (MOU) to create full-service navigation centers for the region’s homeless individuals. The comprehensive MOU defines each city’s financial obligation and references a formula that accounts for each jurisdiction’s anticipated capacity needs, and it also includes a process for reconciling each city’s financial shares on an annual basis if the actual usage exceeds estimates. The MOU (and settlement agreement) expressly restricts capacity to residents of the N-SPA region and details the client referral process, transportation policies and responsibilities, and general operating standards. A committee composed of a city manager from each N-SPA city met frequently over a two-year period to develop the MOU and settlement agreement, oversee management and operations, and identify funding opportunities.

Funding for the Project The N-SPA cities used a variety of funding sources to finance construction of the new navigation centers and offset initial operating costs with limited General Fund impact for the participating cities. In November 2018, the State of California awarded $12,062,300 in Homeless Emergency Aid Program (HEAP) funding for N-SPA’s proposal, via the Orange County continued

Damien R. Arrula is city administrator for the City of Placentia and can be reached at darrula@placentia.org. Aaron France is interim city manager for the City of Buena Park and can be reached at afrance@buenapark.com. Western City, October 2020

Regional Partnership: How to Address Homelessness Differently, continued

Continuum of Care. HEAP is designed to provide direct assistance to cities and counties to address homelessness, and the N-SPA cities applied the funds toward site acquisition and construction costs. In addition, the N-SPA cities are using SB 2 funding to pay 42 percent of operating costs; funds made available by Orange County (which has access to capacity in the navigation centers) will offset another 55 percent of estimated operating expenses. The N-SPA cities will cooperatively fund the remaining 3 percent of the first year’s operating costs, based on the MOU formula. A designated N-SPA member city acts as treasurer, consolidating and managing funds from these various sources, including the cities’ direct contributions. Cities’ ongoing financial obligations to the N-SPA will be considered and approved as part of each city’s annual budget process. Moreover, all revenues and expenditures of the program will be subject to

The Placentia Navigation Center provides bathroom facilities, and signage advises clients on steps to take if they feel ill. an annual audit prepared by a licensed professional in accordance with government auditing standards. The N-SPA cities recently completed the construction phase of the program and commenced implementation of the settlement agreement and MOU as of July 15, 2020, despite the unforeseen circumstances created by the COVID-19 pandemic.

Navigation Centers Launch Operations The Placentia Navigation Center officially opened on March 31, 2020, and

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the 11,082-square-foot facility has a bed capacity of 100. The second facility, the Buena Park Navigation Center, opened June 29, 2020; the 15,000-square-foot shelter has 150 beds. Both facilities offer resident amenities such as offices, classrooms, conference rooms, kitchens and eating areas, pet accommodations, and outdoor meeting and recreation spaces. The navigation centers are operated under contract with experienced service providers. Operating standards, protocols, and codes of conduct (which were reviewed and vetted by the N-SPA cities and developed in collaboration with Orange County) govern the navigation centers. In addition, pandemic protocols to fight the spread of COVID-19 are in place for staff and clients. Though the operational phase of the program began only recently, the N-SPA cities are encouraged by early positive outcomes. The unique collaborative approach taken by the North Orange County cities differs from the jurisdiction-by-jurisdiction approach attempted previously by communities nationwide, and other cities have recently adopted similar approaches as a tool in combating California’s longstanding homeless crisis. The collaborative regional approach ensures that the participating cities are addressing homelessness comprehensively and making efficient use of taxpayer money and limited resources. ■

Learn More About This Topic at the 2020 Annual Conference & Expo Interested in exploring this issue? Don’t miss the “Regional Partnership: How to Address Homelessness Differently” session at the League of California Cities 2020 Annual Conference & Expo, Oct. 7–9. See page 10 for more conference details; to register, visit www.cacities.org/events.

Did the California Legislature Make Good on Housing Promises?

By Elizabeth W. Hull

alifornia State Senate pro Tempore Toni G. Atkins said in January that “come hell or high water,” the State would pass legislation this year to build more homes. Then came COVID-19. When the legislative session began, legislators focused on a variety of housing issues, including homelessness, density bonus and development standards, and permit streamlining. An abbreviated legislative session resulted in legislators shifting focus to COVID-19 relief bills and, ultimately, passing just a few housing bills. One that was passed and signed is Assembly Bill 3088, which enacted the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020. This Act extends eviction protections for residential tenants experiencing a financial hardship related to COVID-19. It prevents residential tenants from being evicted for a COVID-19-related hardship between March 1 and Aug. 31, 2020, so long as the tenant provides the landlord with a written declaration of hardship. Residential tenants experiencing a new COVID-19-related hardship between Sept. 1, 2020 and Jan. 31, 2021 are also protected from eviction provided they pay at least 25 percent of the rent due during this period. In addition to providing a written declaration of hardship, tenants with a household income of at least $100,000 per year, or 130 percent of the median household income, can be asked to submit additional documentation. Though not grounds for eviction, rent from March 4, 2020 through Jan. 31, 2021 is still owed by all residential tenants, and landlords are permitted to start recovering unpaid rent beginning March 1, 2021. Additionally, local rental relief ordinances may remain in place, but any future local ordinances must be consistent with the Act. To address the economic downturn and slowdown in housing construction as a result of the pandemic, AB 1561, if signed, will, among other things, extend certain previously approved housing entitlements. Historically, California had a housing production deficit, meaning production has not kept pace with population growth.

The economic downturn has exacerbated the lack of housing production. Although construction was • City Attorney Services deemed an essential service, • Code Enforcement • Disaster Recovery the availability of workers, • Elections project financing and some • Employee Benefits construction supplies have • Environmental Law negatively impacted con• Government Relations struction during the pan& Funding demic. To address this, AB • Labor & Employment 1561 extends by 18 months • Litigation certain housing entitlements • Planning, Development, that were in effect on March Housing & Real Estate 4, 2020 and will expire be• Police & Public Safety • Public Contracts, fore Dec. 31, 2021. Public Works, Utilities In addition to the & Infrastructure COVID-19 related bills, the • Public Finance, Fees, Legislature approved bills Taxes & Assessments modifying laws governing • Public Records Act Housing Elements, acces• Telecommunications sory dwelling units, density bonuses and permit streamlining provisions. At press time, AB 1561 and the other housing related bills were still pending before the governor. It doesn’t look like Sen. Atkins was able to make good on her promise this year, but there are a few bills that may be back next year which, if passed, may stimulate housing production. The most controversial of these bills are SB 899, which allows by right development of housing by higher education and religious institutions under certain circumstances and SB 902, which allows multiplexes by right in single-family residential zones.

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SB 450: A Path Toward Improving Communities by Valerie Escalante Troesh and Matthew R. Silver California has experienced an alarming spike in homelessness over the past decade, with a significant increase in the number of unsheltered people in our communities. In the most recent official count conducted in 2019, the number of Californians experiencing homelessness had climbed to over 151,000. Though California comprises only 12 percent of the total U.S. population, it is home to 25 percent of the nation’s homeless population; nearly 60 people per day in California became homeless in 2019. This reality belies substantial efforts by cities and counties to provide supportive housing and other services to those expe-

riencing homelessness, driving home the fact that finding a solution is no simple feat. Fortunately, the recently enacted SB 450 (Chapter 344, Statutes of 2019) may aid cities and counties in their efforts to combat homelessness by encouraging investors to offer temporary housing to those in need, while providing local agencies a novel incentive for remediating certain nuisance properties. Hotels, motels, and hostels often succumb to blight or abandonment due to their owners’ inability to maintain them. In the face of increasing costs of land and development in California, the cost of investing in such properties can often

The new law provides incentives to repurpose abandoned motels for homelessness services.

About Legal Notes This column is provided as general information and not as legal advice. The law is constantly evolving, and attorneys can and do disagree about what the law requires. Local agencies interested in determining how the law applies in a particular situation should consult their local agency attorneys.

seem insurmountable to property owners and developers. Thus, far too often, such efforts fall on cities’ shoulders. These properties — which often serve individuals experiencing housing insecurity — become a nuisance for local governments to address. Such properties pose major health and safety hazards to occupants and surrounding communities, disincentivize neighboring economic development, and strain government resources when cities and counties are forced to abate them. Attempting to offer one innovative solution for two weighty problems, SB 450 allows cities and counties to simultaneously address homelessness and alleviate the costs of remediating dilapidated hotels, motels, and hostels. continued Valerie Escalante Troesh is a partner with the law firm of Silver & Wright LLP and can be reached at VEscalanteTroesh@ silverwrightlaw.com. Matthew R. Silver is a founding partner with Silver & Wright LLP and can be reached at msilver@ silverwrightlaw.com.

SB 450 offers an innovative solution for blighted hotels, motels, and hostels.

Western City, October 2020

SB 450: A Path Toward Improving Communities, continued

A Multifaceted Solution SB 450, which took effect Jan. 1, 2020, offers a cost-saving program to those willing to clean up run-down hotels, hostels, and motels. The bill (which sunsets Jan. 1, 2025, unless extended) permits projects that convert neglected hotels, motels, and hostels into transitional or supportive housing to bypass California Environmental Quality Act (CEQA) review. To qualify, the project must also offer some form of support for its future residents, such as medical care, substance abuse treatment, or employment assistance. Thus, SB 450 encourages rundown and neglected properties to become sites for useful and altruistic services.

By waiving CEQA review for qualifying projects, SB 450 incentivizes investment in these dilapidated properties by saving project applicants thousands of dollars. Though CEQA regulations are meant to protect and improve California’s environment, the review process can mean red tape, delays, and additional expenses to developers. Removing such hurdles allows properties that would otherwise be public nuisances, which cities and counties have to abate, to become enticing investments for outside parties. The hope is that local governments will see these properties transition from being strains on public resources to being spaces that improve the local community.

SB 450 may aid cities and counties in their efforts to combat homelessness.

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Without local incentives such as SB 450, public agencies are often the only parties that ensure these substandard properties are monitored and brought to code to protect the community, which can take a toll on public funds and staff time. For example, public agencies may attempt to compel compliance through their code enforcement departments, such as issuing citations or conducting abatement with their own forces. Public agencies also may resort to a receivership under state law to obtain the appointment of a neutral thirdparty agent of the court who will ensure the remediation of such properties, requiring the public agency to file a state court action and facilitate the receivership. Fortunately, SB 450 can curtail public agencies’ reliance on their own forces to ensure remediation without taking up much public funding or staff time. Moreover, cities may use SB 450 in tandem with a receivership. Court-appointed

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receivers can take advantage of SB 450’s CEQA waiver in their remediation efforts by seeking court approval to convert receivership hotels, motels, and hostels into transitional or supportive housing. Similarly, if after making the necessary repairs to such properties to ensure they comply with state and local law, a courtappointed receiver must sell a property to cover the costs of the receivership, he or she could market the property for sale by highlighting its potential for such altruistic conversion under SB 450. The bill not only encourages community partners to remedy substandard hotels, motels, and hostels before public agencies, like cities, are forced to intervene, but also offers a means for rehabilitation in the receivership context that will greatly serve the public’s interests.

SB 450 addresses homelessness and helps serve the public’s interests.

Protect and Improve Your Community through Code Enforcement

How Cities Can Take Advantage of SB 450’s Benefits If a city is interested in encouraging SB 450 projects within its jurisdiction, the city should take preparatory measures to ensure staff is trained on SB 450’s requirements and adopt guidelines to aid in its implementation. Agencies can get ahead of questions and potential roadblocks by outlining details such as requirements for successful applicants, how the city will ensure compliance with SB 450’s requirements, and how the CEQA exemption can be marketed to developers. Though there will be administrative costs associated with developing local guidelines for implementing SB 450, the savings associated with a successful property transition will outweigh the costs of those efforts. Formerly dilapidated properties can be given a new life by completing the transition from a blighted danger to a functioning facility that contributes positively to the community’s quality of life. ■

Find More Information Online For additional information on the details of SB 450, read the online version of this article at www.westerncity.com.

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Best Practices to Avoid Employment Litigation Related to COVID-19 by Brian P. Walter and Alexander Volberding Since Gov. Gavin Newsom declared a state of emergency in California on March 4, 2020, public agencies have encountered an immense challenge in responding to COVID-19 issues affecting their workforce. Given the unprecedented and unique employment issues facing employers as a result of the pandemic, public agencies should be prepared for an increase in legal, administrative, and contractual claims brought by employees and labor organizations. Although many uncertainties about the pandemic still exist, one certainty is that plaintiffs’ attorneys will bring litigation against public agencies, and employers can take steps now to reduce the risk and potential exposure of litigation related to COVID-19. This article addresses two areas that are likely to lead to litigation in the coming months: teleworking and managing employees returning to work.

Issues Related to Teleworking On March 19, Gov. Newsom issued Executive Order N-33-20, which required that non-essential employees stay home

and not report to work. On April 1, the U.S. Department of Labor (DOL) encouraged employers and employees to “implement highly flexible telework arrangements” in its remarks introducing the Families First Coronavirus Response Act (FFCRA) regulations. As a result, in the space of two weeks, a new state directive and federal guidance transformed millions of Californians’ homes into their workplaces. The age of teleworking presents significant management issues for public employers, many of whom only occasionally permitted employees to telework before the pandemic. One of the main reasons telework was previously discouraged was public employers’ concern about their ability to meet their obligation to taxpayers to monitor public employees’ performance and ensure their productivity. These concerns are demonstrated by wage and hour laws. While the DOL encourages “highly flexible telework arrangements” under the FFCRA, it also rigidly enforces the wage and hour requirements of the Fair Labor Standards Act (FLSA). Enterprising plaintiffs’ counsels are likely to try to exploit the space between the employers’ flexibility and the enforcing agency’s rigidity.

Under the FLSA, non-exempt employees are entitled to overtime compensation at one and a half times the employee’s regular rate of pay for any time worked over 40 hours in a work week. State overtime laws do not apply to public employers, but state minimum wage does. As a result of flexible teleworking arrangements, both federal and state wage and hour claims for underpayment for hours worked at home are likely to increase, as employees work more hours at unconventional times and their supervisors are not physically present to monitor and manage such work. Non-exempt employees may be able to recover for uncompensated or “off the clock” time if they establish that the employer knew or had reason to know of the uncompensated time worked, regardless of whether the time was recorded on their time sheet or in the timekeeping system. An employee may establish an employer’s constructive knowledge of the uncompensated work by various means, such as responding to emails at all hours of the day and night, complaints about the amount of work or the difficulty of

Brian P. Walter is a partner with the law firm of Liebert Cassidy Whitmore and can be reached at bwalter@lcwlegal.com. Alexander Volberding is an associate with Liebert Cassidy Whitmore and can be reached at avolberding@lcwlegal.com.

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completing the work within their schedule, or noting the absence of any overtime requests or payment.

Two areas are likely to lead to litigation in the coming months: teleworking and managing employees returning to work.

Additionally, employees who are teleworking may also seek reimbursement for expenses of working at home, such as internet and cellphone usage, under Labor Code Section 2802. That section requires employers to reimburse employees for all expenses necessarily incurred by the employee “in direct consequence of the discharge of his or her duties.” A court held in Cochran v. Schwan’s Home Serv., Inc. (2014) that this section requires employers to reimburse employees for cellphone usage required by their employer, although employers are permitted to agree on a reasonable reimbursement amount or percentage of the bill.

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To reduce the risk of wage and hour litigation by non-exempt employees, employers should consider the following four measures: 1. Make sure the overtime policy requires that employees receive preauthorization for any overtime work and immediately report overtime. 2. Communicate clear expectations to both employees and supervisors that non-exempt employees will adhere to the overtime policy and accurately account for their time, and enforce such expectations by disciplining employees who violate the policy.

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3. Provide training for supervisors and managers on timekeeping, overtime policy enforcement, and steps to monitor overtime work. 4. Adopt a policy to address the amount of reimbursement of employees for teleworking expenses and require preapproval from a supervisor before the employee incurs any reimbursable expenses. To read the rest of this article, including the section about issues related to managing employees returning to work, visit www. westerncity.com. ■

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Western City magazine’s job opportunity section is the source for job seekers looking for positions in local government. When you place a job opportunity ad in Western City

Call Cici Trino, Association Outsource Services, at (916) 961-9999 to place a display (boxed) ad or for rate and deadline information, or email cicit@aosinc.biz.

Website Job Postings Display ads are posted on our website at no additional charge. But if you miss the deadline for getting your job opportunity ad into the magazine, you can post it on the Western City website right away. To post your job opportunity ad on our automated website, visit www.westerncity.com or contact Savannah Cobbs, Western City administrative assistant; email: scobbs@ cacities.org; phone: (916) 658-8223.

magazine, it will be posted at no additional charge on our website. For rates and deadlines, visit www.westerncity. com and click on the Advertise link.

POLICE CHIEF

City of Orange Cove, CA Filing Deadline: Friday, October 30, 2020 at 4:00 p.m. THE CITY OF ORANGE COVE is seeking a Police Chief knowledgeable of current practices in the management of municipal Police Departments; principles of supervision and has the ability to direct the City Police Department. Applicants must submit an original City of Orange Cove application; No late or faxed applications will be accepted. Postmarks are not accepted. Resumes and/ or related certificates may accompany but do not substitute for City of Orange Cove application & required material. Application is available online at www.cityoforangecove. com. Starting Salary up to $120,000. Experience: Candidate must have a B.A. and extensive experience in a public law enforcement agency including both operational and administrative assignments, public agency budgeting, organization and planning. Send or email resume and application to Attention June V. Bracamontes, City Clerk, Orange Cove City Hall, 633 Sixth St. Orange Cove, CA 93646. Email jvb@cityoforangecove.com

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FINANCE DIRECTOR

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The City of Chowchilla is seeking a Director of Finance. This executive position performs highly responsible and complex professional work. Plans, directs, supervises, and coordinates financial planning, accounting, revenue administration, data processing, purchasing, preparation of payroll, investments telecommunication accounts, billing and collection of utilities and other user charges; provides highly responsible professional and technical staff assistance to the City Administrator, City Council, and departments; and performs other related work as required; Provides general oversight and supervision of Information Technology division and personnel and/or contractors responsible for the Information Technology network, hardware, software implementation and management. The finance director is also designated to be the City Treasurer. The candidate should have at least five (5) years of increasingly responsible experience involving financial managements with a governmental agency. A BA/BS degree in Public Administration, Accounting, Finance or related field is required; CPA preferred. APPLY IMMEDIATELY: This recruitment ends Thursday, October 29, 2020. You may apply through CalOpps www.CalOpps.org or email/mail a cover letter, comprehensive resume and five professional references to JMcClendon@CityofChowchilla.org. Recruitment details can be found on the City’s website: www.CityofChowchilla.org. EOE

New Opportunities! Town Manager, Town of Timnath, CO Director of Public Works, City of Piedmont, CA Congratulations to Recent Placements! Kendall Rose, City Clerk, City of Petaluma Reginald Williams, Fire Chief, City of Rocklin Keith DeMartini, Finance Director, City of Santa Barbara Jeannine Seher, Human Resources Director, City of Milpitas Brian Haworth, Community Services Director, City of San Marino Joe Perez, Community Development Director, City of Jurupa Valley Maximo “Andy” Pickett, County Administrative Officer, Butte County Please submit your cover letter and resume (including month/year of employment) via our website:

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What You Need to Know About Municipal Finance, continued from page 16

Aug. 18, 2020, and awaits argument, likely sometime in 2021. Moreover, other cases involving San Francisco, Oakland, and Alameda County are pending in trial and appellate courts and could produce conflicting appellate decisions, too. But for now, the new San Francisco opinion is the law.

Franchise Fees on Trash Hauling A second major development involved franchise fees on trash hauling. A 2017 case, Jacks v. City of Santa Barbara, held that the city’s franchise fee on Southern California Edison (passed through to electricity customers in the city) was not a tax requiring voter approval. However, the California Supreme Court established

in Jacks a new test for fees for use of government property — government must prove a fee bears at least some reasonable relationship to the value of the rights the franchise confers. In March 2020, in Zolly v. City of Oakland, the appellate court overturned that city’s trial court win in a challenge to its solid waste franchise fees. The trial court had concluded the plaintiff trash customers lacked standing to sue because they did not directly pay the fees — haulers did. Zolly concludes the plaintiffs there adequately alleged a lack of a relationship between the fees and the franchise rights and remanded the case for trial — without discussing the the customers’ standing. The case is one of a growing number of challenges continued

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What You Need to Know About Municipal Finance, continued

to franchise fees generally and to solid waste franchise fees in particular. Oakland obtained Supreme Court review, and the court’s decision is not likely before late 2021. The League is providing amicus curiae (friend-of-the-court) support to Oakland in the case. J

Bay Area Toll Authority Prevails in Significant Case In the third case of interest to cities, the San Francisco Court of Appeal upheld a victory for the Bay Area Toll Authority (whose parent agency is the Metropolitan R T

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Transportation Commission) in Howard Jarvis Taxpayers Association v. Bay Area Toll Authority (HJTA v. BATA). The case challenged Regional Measure 3 (2018), which authorized a $3 hike in tolls on Bay Area bridges (other than the Golden Gate Bridge) to fund 35 alternative transportation programs. The plaintiffs argued the toll increase was a special tax requiring two-thirds voter approval (55 percent of voters approved the measure) or two-thirds legislative approval (the measure received two-thirds approval in the Senate, but not the Assembly). The trial court ruled for BATA. This is an important development under Prop. 26, a 2010 initiative amendment to the California Constitution that makes most government revenues “taxes” requiring voter approval unless one of seven exceptions applies for local government fees. Only five exceptions apply to state fees.

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A special thank you to all of the brave firefighters, first responders, and volunteers who have been battling the devastating wildfires!

City of Redmond, WA – Fire Chief The City of Redmond, WA is a thriving, culturally diverse community with more than 69,900 residents who enjoy the Pacific Northwest’s year-round outdoor playground. A search is underway to attract qualified candidates to lead the Redmond Fire Department. In this challenging time, this is a rare opportunity to lead a robust department, as part of a full-service city, in a supportive and diverse community. The City of Redmond seeks to continue a strong fire-community relationship that engenders trust, advances community outreach, and increases communication. Redmond seeks a Fire Chief who is passionate about that mission and enthusiastic about this opportunity. A Bachelor’s degree in business, fire science, public administration, or a related field is required. The most competitive candidates for the Fire Chief position will possess at least ten (10) years of progressively responsible fire or related experience, including five (5) years in fire management, with a similarly sized or large metropolitan fire agency. Candidates must have a proven and demonstrated track record of working effectively with a highly unionized environment and culturally and ethnically diverse community. This position requires certification, or the ability to obtain certification, of National Incident Management Systems (NIMS) Courses 100, 200, 700, 701, 706, and 800, as well as Incident Command System (ICS) Courses 300 and 400. The selected candidate is required to have no more than a 20-minute response time to the City limits in an emergency that requires his/her presence. The annual salary range for the at-will Fire Chief position is $139,164 $194,820; placement within this range is dependent upon qualifications. Contact: Mr. Regan Williams, (916) 784-9080 First Review of Applications: November 6, 2020

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The appellate court found Regional Measure 3 was not a tax because it was a fee for the use of government property and these fees are not subject to any cost of service limit — they are one of the few revenue sources available to government that can provide discretionary revenue without voter approval. The court reasoned that the cost-of-service limits in the first three exceptions to Prop. 26 (for fees for benefits and privileges, services and products, and regulatory fees) do not apply to the fourth (for use of government property) and fifth (fines and penalties). Interestingly, HJTA v. BATA devotes a lengthy footnote to disagreeing with Zolly. It concludes Zolly erred to apply the cost-of-service standard to a fee for use of property. The Howard Jarvis Taxpayers Association petitioned the California Supreme Court on Aug. 10, 2020, to review the decision, and the decision on that petition is due by Oct. 9 — unless the court extends its time by 30 days, as it commonly does. continued

The appellate court also concluded Prop. 218 does not require two-thirds voter approval of initiative special taxes.

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City of Porterville

Community Development Director For information on this opportunity, please visit our website at www.ci.porterville.ca.us Administrative Services Department Phone 559-782-7441 Fax 559-782-7452

H CITY OF MCFARLAND H

Chief of Police The City of McFarland is seeking a Chief of Police to join the McFarland Police Department. A typical candidate will possess a bachelor’s degree with coursework in criminology, law-enforcement, social science, public administration, or a closely related field and five years of broad and extensive experience in all phases of municipal police work, preferably in a municipal police department. Any combination of training, experience and education that provides the necessary knowledge, skills, and abilities may be qualifying. Candidates must possess a valid California class “C” motor vehicle operator license, Advanced POST certificate and/or management certificates and be able to obtain an Executive Certificate; candidates must also be able to meet POST executive background, psychological, and physical requirements. Employment application and detailed recruitment information available at www.mcfarlandcity.org. Open until filled. Salary DOQ. McFarland is an equal opportunity employer.

www.westerncity.com

Western City, October 2020

What You Need to Know About Municipal Finance, continued

HJTA v. BATA’s disagreement with Zolly may make review more likely in HJTA v. BATA, but Supreme Court review is still uncommon. The Supreme

Court also has a vacancy due to Justice Chin’s Aug. 31 retirement, and the Governor’s Office indicates the governor may take a few months to fill the seat. This may make the court less willing to add to its workload while it is short-handed.

Plan to Attend This Session at the Annual Conference This topic will be the subject of a session titled “What You Need to Know About Municipal Finance” at the League of California Cities 2020 Annual Conference & Expo, Oct. 7–9. Michael Colantuono and Michael Coleman, the League’s fiscal consultant, will discuss the latest legal developments and laws affecting your city’s finances, trends and prospects for core city revenues, and financing tools. See page 10 for more conference details; for registration information, visit www.cacities.org/events.

HJTA v. BATA provides very helpful law for cities and other local governments, nearly all of which charge for the use of their property. San Francisco’s Prop. C victory is a major development for local taxes. Zolly v. Oakland portends more litigation over franchise fees. Things are still in motion, though, so stay tuned. ■

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City of Orange Cove, California

DIRECTOR OF PUBLIC WORKS

Annual salary range: $90,000 – $110,000 The Director of Public Works must have 5 years of experience in administering public works functions and a BA in Civil Engineering or related field. Director will plan, organize, direct, coordinate and evaluates the activities of the Public Works Department which is comprised of the Water/Wastewater, Parks/Recreation, Animal Control, Streets, oversees the provision of departmental services to City residents; prepares, implements and evaluates capital improvement program and long-range infrastructure development plans; prepares and manages departmental budget; ensures compliance with regulatory requirements; provides technical assistance and liaison with City staff, developers, other agencies. Annual salary range is $90,000 – $110,000. Please fill out an employment application and email a copy of your resume to jvb@ cityoforangecove.com. The Director of Public Works job description and employment application can be found on our website under Employment Opportunities. Position Open until filled.

CITY MANAGER Annual salary $140,000

The City of Orange Cove is now accepting applications for the position of City Manager. Orange Cove is an agricultural community located in Fresno County about 34 miles east of the City of Fresno, CA. Qualified candidates should have prior experience as a City Administrator/Manager, Assistant/Deputy City Administrator/ Manager, Department Director, or similar capacity. A bachelor’s degree in public or business administration or a related field is required and at least five (5) years of progressive management responsibility in municipal government is highly desirable. The City Council highly regards California experience and will also consider all viable out-of-state candidates provided the type and level of experience is in alignment with the City’s needs. Bi-lingual candidates are encouraged to apply. Annual Salary: $140,000. Qualified candidates should submit a resume and cover letter electronically to the Orange Cove City Clerk, June V. Bracamontes at jvb@cityoforangecove.com. Recruitment is open until the position is filled.

Qualified candidates should submit a resume and cover letter electronically to the Orange Cove City Clerk, June V. Bracamontes at jvb@cityoforangecove.com. Recruitments are open until the positions are filled. http://cityoforangecove.com/job-center/

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Articles inside

Regional Partnership: How to Address Homelessness Differently

Leadership in a Time of Uncertainty, Fear, and Recovery

Calendar of League Events