REPORT TO COUNCIL
SUBJECT
Title
Adopt Positions on State and Local Ballot Measures for the March 5, 2024 Election
Report
BACKGROUND
This report provides an opportunity for the Sunnyvale City Council to take positions on state and local measures on the March 5, 2024 Ballot. The report summarizes each measure, provides the City’s adopted policy on the measure (if any), and a staff recommendation, when appropriate. Council Policy 7.4.16 Ballot Measure Positions, states that staff will provide analysis and a position recommendation on only those ballot measures that directly impact City business. City business is defined as all matters directly related to service delivery, or otherwise contributing to the City's
operational success (Pursuant to Council Policy 7.4.14 Legislative Advocacy Positions).
As required by state law, no public funds have been or will be used to campaign for or against any of these measures. Public resources may be used to adopt a position on a measure, as long as that position is taken at an open and public meeting where all perspectives have the opportunity to be heard. Staff's recommendations are generally based on existing City policies from documents such as the General Plan, Legislative Advocacy Positions, and impact on City services and/or operations.
EXISTING POLICY
Council Policy 7.4.16 Ballot Measure Positions: As soon as possible following the release of the Secretary of State's Official Voter Information Guide or the Santa Clara County Registrar of Voter's Voter Information Pamphlet, staff will present to Council a report reviewing proposed ballot measures.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (a) (5) in that it is a governmental organization or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
A brief analysis of each measure follows, including a measure summary and, for statewide measures only, the California Legislative Analyst's estimate of state and local government fiscal impact; for those measures deemed City business, City staff analysis by the appropriate department, existing City policy citation (if any), and, as appropriate, a staff recommendation are also identified.
Staff recommendation options are: Support, Oppose, No Staff Recommendation, or Take No Position. While the meaning of “Support” and “Oppose” recommendations are clear, "No Staff Recommendation" and "Take No Position" are clarified as follows:
No Staff Recommendation - Consistent with City policy, staff does not provide analysis or make recommendations on measures that do not impact City business as defined in Council Policy 7.4.14, Legislative Advocacy Positions.
Take No Position - Despite a measure's ability to impact City business, Staff may recommend that Council abstain from taking a position. This recommendation to remain neutral on an issue may be made for a variety of reasons (e.g., ballot language is not clear; the pros and cons of the business impact cancel each other out; etc.). The reason for recommending this position will be explained as part of the staff analysis.
State and Local Ballot Measures Deemed City Business
Measure C - Sunnyvale School District School Bonds 55% Vote
Summary: The following is the ballot question for Measure C:
To continue critical renovation and modernization of local elementary and middle schools, upgrade schools safety/security, improve access to technology, and ensure accessibility for students with disabilities, shall Sunnyvale School District’s measure be adopted authorizing $214 million in bonds at legal interest rates, raising an average of $13.2 million annually for approximately 34 years, at a projected rate of $15 per $100,000 assessed value, with oversight, accountability, all funds benefiting schools, and no funds for administrator salaries?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: This measure is in alignment with Sunnyvale’s goal of supporting efforts to improve quality education. Funding from this measure would provide students and teachers with comparable classrooms and facilities. The bond will help provide schools with long-term facility maintenance funds and updated instructional technology. In addition to updating classrooms, maintenance improvements, and modernization of Sunnyvale Middle School, the School District has also committed to improving accessibility for students with disabilities and expanding counseling facilities to support the mental health needs of students.
Existing City Policy: Policy 5.1.1 Goal 5.1E Support efforts to improve the availability and quality of education made available in Sunnyvale.
General Plan Chapter 2 Community Vision Citywide Vision Goals VII: Quality Education: To support and work cooperatively with the educational institutions which serve Sunnyvale so as to provide the opportunity for a quality education for all youth, and life-long learning for all residents.
Staff Recommendation: Support
Proposition 1 - Authorizes $6.38 Billion in Bonds to Build Mental Health Treatment Facilities for Those with Mental Health and Substance Use Challenges; Provides Housing for the Homeless. Legislative Statute.
Summary: Authorizes $6.38 billion in state general obligation bonds for mental health and substance use treatment and residential care facilities ($4.4 billion) and supportive housing for veterans and individuals with behavioral health challenges who are experiencing homelessness ($2 billion). Amends Mental Health Services Act to: Allow funding to be used to treat substance use disorders (instead of only mental health disorders); Re-allocate funding for Full Service Partnerships (FSP) programs, other behavioral health services (e.g., early intervention), and housing programs; Require annual audits of programs; Restructures current funding, which serves all ages and a wide range of conditions, in order to target a subset of this population with severe behavioral health conditions; Renames the program as the Behavioral Health Services Act.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Shift roughly $140 million annually of existing tax revenue for mental health, drug, and alcohol treatment from counties to the state. Increased state costs to repay bonds of about $310 million annually for 30 years. These bond funds would be used to build (1) more places where people can get mental health care and drug or alcohol treatment and (2) more housing for people with mental health, drug, or alcohol challenges.
City of Sunnyvale Staff Analysis: Proposition 1 would give $2 billion to the state program that gives money to local governments to turn hotels, motels, and other buildings into housing and construct new housing. Local governments would get either grants or loans from the state. The housing added by the measure would be for people who are (1) experiencing homelessness or at risk of becoming homeless and (2) have mental health, drug, or alcohol challenges. These funds will NOT be administered by the City, but they can support financing the development of new supportive housing for homeless people living with serious mental health conditions. Any new development of this type of housing would likely require additional funding support by the City through local housing funds as State funding amounts would not likely be significant enough to cover development and/or operating costs. While new funding sources for development of affordable housing are welcomed by the City, there is concern about movement of existing funding from a local level to the State level and impacts are to be determined.
Existing City Policy:
GOAL HE-1 Adequate Housing
Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale’s households of all income levels.
Policy HE-5.6 Participate in the County Collaborative on Affordable Housing and Homeless Issues to provide a continuum of care of services and facilities for the homeless. Support local service providers that offer facilities and support services to homeless individuals and families, and persons at risk of homelessness.
Staff Recommendation: Take No Position
FISCAL IMPACT
As required by state law, no public funds have been or will be used to campaign for or against any of these measures and therefore there is no fiscal impact to this report.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Adopt the following staff-recommended positions on the ballot measures deemed City business, including any items where staff recommends Council remain neutral (take no position).
SUPPORT - Measure C - Sunnyvale School District School Bonds 55% Vote
TAKE NO POSITION - Proposition 1 - Authorizes $6.38 Billion in Bonds to Build Mental Health Treatment Facilities for Those With Mental Health and Substance Use Challenges; Provides Housing for the Homeless. Legislative Statute.
2. Adopt alternative positions on the ballot measures.
3. Other action as directed by Council.
STAFF RECOMMENDATION
Recommendation
Alternative 1:
Adopt the following staff-recommended positions on the ballot measures deemed City business, including any items where staff recommends Council remain neutral (take no position).
SUPPORT - Measure C - Sunnyvale School District School Bonds 55% Vote
TAKE NO POSITION - Proposition 1 - Authorizes $6.38 Billion in Bonds to Build Mental Health Treatment Facilities for Those With Mental Health and Substance Use Challenges; Provides Housing for the Homeless. Legislative Statute.
Staff
Prepared by: Michelle Zahraie, Senior Management Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Prop 1 Legislative Analyst’s Office Report
2. March 2024 List of Local Measures