REPORT TO COUNCIL
SUBJECT
Title
Adopt Positions on State and Local Ballot Measures for the November 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 November 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, if 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) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change 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
Proposition 2 - Authorizes Bonds for Public School and Community College Facilities. Legislative Statute.
Summary: Authorizes $10 billion in state general obligation bonds for repair, upgrade, and construction of facilities at K-12 public schools (including charter schools) and community colleges. Provides funding for new facilities, to improve school health and safety conditions at existing facilities, and for classroom upgrades (e.g., science, engineering, transitional kindergarten, and vocational classrooms). Expands eligibility for financial hardship grants for small and disadvantaged school districts. Provides higher percentage of state matching funds to schools demonstrating greatest need. Requires public hearings and performance audits. Appropriates money from General Fund to repay bonds.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increased state costs of about $500 million annually for 35 years to repay bond.
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 be dedicated to repair and upgrade K-12 school and community college facilities thereby providing a safe and welcoming learning environment for our students.
Existing City Policy:
Staff Recommendation: Support
Proposition 4 - Authorizes Bonds for Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands from Climate Risks. Legislative Statute.
Summary: Authorizes $10 billion in state general obligation bonds for various projects to reduce climate risks and impacts: $3.8 billion for safe drinking water and water resilience; $1.95 billion for wildfire prevention and extreme heat mitigation; $1.9 billion for protection of natural lands, parks, and wildlife; $1.2 billion for protection of coastal lands, bays, and oceans; $850 million for clean energy; and $300 million for agriculture. Prioritizes projects benefitting disadvantaged communities. Requires annual audits. Appropriates money from General Fund to repay bonds.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increased state costs of about $400 million annually for 40 years to repay the bond.
City of Sunnyvale Staff Analysis: Local agencies such as Sunnyvale and special districts such as Santa Clara Valley Water District will be eligible to apply for water and climate resilience projects (such as advanced purified water and recycled water) that can directly benefit the regional and local water supplies. Additional funding may be available for flood protection (sea level rise) and clean energy projects.
Existing City Policy:
Long-Term Advocacy Positions - Environmental Management
3.1 (4) Water Resources - "Support local and regional efforts that address water resource issues for new water supply projects and water conservation programs".
General Plan Goal EM-1 Adequate Water Supplies and EM-1.2 Maximize Recycled Water Use. Sea level rise protection and clean energy projects align with our Climate Action Plan.
Staff Recommendation: Support
Proposition 5 - Allows Local Bonds for Affordable Housing and Public Infrastructure with 55% Voter Approval. Legislative Constitutional Amendment.
Summary: Allows local bonds for affordable housing for low- and middle-income Californians, or for public infrastructure including roads, water, and fire protection to be approved by 55% of voters rather than current two-thirds approval requirement. Bonds must include accountability requirements, including citizens oversight committee and annual independent financial and performance audits. Allows local governments to assess property taxes above 1% to repay affordable housing and infrastructure bonds if approved by 55% of voters instead of current two-thirds approval requirement.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increased local borrowing to fund affordable housing, supportive housing, and public infrastructure. The amount of increased borrowing would depend on decisions by local governments and voters. Borrowed funds would be repaid with higher property taxes.
City of Sunnyvale Staff Analysis: Section 18 of Article XVI of the California Constitution requires all local bond measures to be approved by two-thirds of voters, except local school and community college districts.
In September 2023, the Legislature passed Assembly Constitutional Amendment (ACA) 1 by Assemblymember Cecilia Aguiar-Curry. ACA 1 was amended in June 2024 with the passage of ACA 10, also authored by Assemblymember Aguiar-Curry. Secretary of State Shirley N. Weber designated ACA 10 as Proposition 5.
If passed, Proposition 5 would align the voting threshold for bonds issued by local jurisdictions for affordable housing and public infrastructure projects with the voting threshold required for local school and community college district bonds. If passed, Proposition 5’s lower voting threshold would improve the City’s ability to finance affordable housing and public infrastructure needs that cannot be funded with current revenues. The Proposition, if passed, would apply to the City’s Main Library General Obligation Bond measure (Measure E) also on the November 5, 2024 ballot.
Existing City Policy:
Council Policy, Chapter 7.1B, Revenue Policies, Policy B.1.4 - When considering a new tax or revenue source or an increase in an existing tax or revenue source, the following criteria should be considered:
• Community/Voter Acceptance
• Competitiveness with surrounding communities
• Efficiency of revenue collection and enforcement
• Effectiveness in generating sufficient revenues in the short and long-term to justify its establishment
• Enhancement of revenue diversity to promote stability and provide protection from downturns in business cycles
• Equity/Fairness in distribution of the revenue burden on various segments of the community
Council Policy, Chapter 7.1F, Debt Issuance, Policy F.2.1 - Debt should be used only to finance improvements that cannot be paid for with current revenues, unless the purpose of the debt is to spread improvement costs over a longer period of time and ensure that future users become responsible for portions of the cost.
Staff Recommendation: Support
Proposition 36 - Allows Felony Charges and Increases Sentences for Certain Drug and Theft Crimes. Initiative Statute.
Summary: Allows felony charges for possessing certain drugs and for thefts under $950-both currently chargeable only as misdemeanors-with two prior drug or two prior theft convictions, as applicable. Defendants who plead guilty to felony drug possession and complete treatment can have charges dismissed. Increases sentences for other specified drug and theft crimes. Increased prison sentences may reduce savings that currently fund mental health and drug treatment programs, K-12 schools, and crime victims; any remaining savings may be used for new felony treatment program.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increased state criminal justice costs, likely ranging from several tens of millions of dollars to the low hundreds of millions of dollars annually, primarily due to an increase in the prison population. Increased local criminal justice costs, likely in the tens of millions of dollars annually, primarily due to county jail, community supervision, and court-mandated mental health and drug treatment workload.
City of Sunnyvale Staff Analysis: Proposition 36 adds new provisions with greater consequences for drug related crimes, creates a new class of treatment-mandated felonies, increases sentences, and enhances accountability for repeat and “smash and grab” thefts. While Proposition 36 comes with additional fiscal impacts to state and local governments, the fiscal impacts are not anticipated to directly impact Sunnyvale. Rather, they are associated with a net increase to County Jail and Community Supervision population and an increase in court-related workload.
The City of Sunnyvale faces challenges associated with enforcing misdemeanor offenses related to the possession of certain drugs and thefts under $950. Proposition 36 provides our peace officers with enhanced capability to enforce theft and specific drug related crimes by allowing felony charges for possession of certain drugs (including fentanyl) and thefts under $950, both with two prior convictions, regardless of the value of stolen property. Additionally, for businesses in Sunnyvale, particularly those in retail, the increased penalties for theft may serve as a deterrent against shoplifting and other property crimes, potentially creating a safer environment for commerce.
Current City of Sunnyvale policy places a high priority on reducing crime and ensuring a safe and secure environment for people and property in the community. Proposition 36 expands the ability to enforce retail theft, which in turn enhances Public Safety service delivery, consistent with our City's goal of providing a Safe and Secure City. Several supporters include the League of California Cities, California Retailers Association, and the California Police Chiefs Association.
Existing City Policy:
General Plan - Goal SN-3 Safe and Secure City.
Ensure a safe and secure environment for people and property in the community by providing effective public safety response and prevention and educations services.
Staff Recommendation: Support
Measure E - Sunnyvale Main Library General Obligation Bonds. 2/3rds Vote
Summary: The following is the ballot question for Measure E:
Sunnyvale Main Library Measure. To provide residents an accessible modern, sustainable, earthquake-safe library; expand spaces for: collections, events, educational programs for children, teens and seniors; replace deteriorating plumbing, electrical, roofing; shall the measure of the City of Sunnyvale to issue $290,000,000 in bonds at legal interest rates with a maximum levy of $27.47 per $100,000 of assessed value while bonds are outstanding, generating approximately $18,600,000 annually, with audits, citizen's oversight, all funds used locally, be adopted?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: The City Council placed this General Obligation Bond on the ballot to issue $290 million in bonds for the construction of a 120,000 square foot, three story new library. Staff recommends the City Council support this ballot measure because the construction of a new Sunnyvale Main Library aligns with City Council Strategic Priority - Civic Center Campus Modernization. Note that if Proposition 5 passes, Measure E would pass with a 55% threshold rather than two-thirds.
Existing City Policy:
Council Policy, Chapter 7, Planning and Management, Policy B.1.4 - When considering a new tax or revenue source or an increase in an existing tax or revenue source, the following criteria should be considered:
• Community/Voter Acceptance
• Competitiveness with surrounding communities
• Efficiency of revenue collection and enforcement
• Effectiveness in generating sufficient revenues in the short and long-term to justify its establishment
• Enhancement of revenue diversity to promote stability and provide protection from downturns in business cycles
• Equity/Fairness in distribution of the revenue burden on various segments of the community
Council Policy, Chapter 7, Planning and Management, Fiscal Policy 7.1.1., Long Range Goal XI. - To prudently utilize the issuance of debt to minimize costs, maximize cash flow, and/or ensure that future users are responsible for costs as appropriate.
Council Policy, Chapter 7, Planning and Management, Debt Management 7.1.8 - entire policy provides clear and comprehensive guidelines for the issuance and financial management of debt.
Staff Recommendation: Support
Measure F - City of Sunnyvale City Charter Amendments. Majority Vote
Summary: The following is the ballot question for Measure F:
Shall the Sunnyvale City Charter be amended to (1) eliminate the voter registration/citizenship requirement for members of all boards and commissions to remove barriers to volunteering; (2) change the required City Council meeting frequency from 2 meetings per month to at least 24 meetings per year, with no more than 6 weeks between meetings, to provide more scheduling flexibility; and (3) replace gendered references throughout the charter with gender-neutral language?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: The City Council placed this Charter Amendment measure on the ballot to make three changes to the City Charter. Staff recommends the City Council support this ballot measure because the proposed changes align with City Council Strategic Priorities.
1. Eliminating the voter registration and citizenship requirements for all boards and commissions removes barriers to volunteering with the City and aligns with the Equity, Access and Inclusion Strategic Priority. Removing these requirements would allow the City Council to consider residents with different backgrounds and experiences than currently permitted under the City Charter.
2. Providing greater scheduling flexibility for Council meetings by requiring 24 regular Council meetings per year versus two per month provides the City Council with greater flexibility to meet at times that do not conflict with various religious holidays, school breaks and professional conferences throughout the year, in alignment with the Equity, Access and Inclusion Strategic Priority.
3. Replacing gendered references throughout the charter with gender-neutral language aligns with the Equity, Access and Inclusion Strategic Priority.
Existing City Policy:
Sunnyvale City Charter
Council Policy 7.3.4 (Roles and Responsibilities of Mayor, Vice Mayor and Councilmembers)
Staff Recommendation: Support
Measure Y - Sunnyvale School District. Special Tax for Educational Purposes. 2/3rds Vote
Summary: The following is the ballot question for Measure Y:
To renew annual funding for local elementary and middle schools without raising tax rates, support academic programs including math, English, science and technology; attract and retain quality teachers; and keep class sizes small, shall Sunnyvale School District's measure be adopted extending its existing $59 per parcel tax providing $1 million annually for eight years, with senior exemptions and all expenditures audited and reviewed by a community oversight committee with no funds for administrators and all funds staying local?
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 be dedicated to supporting multiple academic programs, attracting and retaining quality teachers, while keeping class sizes small.
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
Measure Z - Cupertino Union School District. School Bond Measure. 55% Vote
Summary: The following is the ballot question for Measure Z:
With funds the State cannot take and no projected increase in current tax rates, shall Cupertino Union School District's measure to replace leaky roofs/ plumbing and expand CUSD's Science, Technology, Engineering, and Math classrooms in Cupertino, Los Altos, San Jose, Santa Clara, Saratoga and Sunnyvale be adopted, authorizing $347 million of bonds with average levies below $21 per $100,000 of assessed valuation (generating $23,300,000 annually) while outstanding, audits, legal rates, independent oversight, State matching funds eligibility, and full disclosure of spending?
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 be dedicated to upgrade existing facilities thereby providing a safe and welcoming learning environment for our 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
State Ballot Measures Deemed Not City Business
All measures deemed not City business are presented for potential Council action; however, do not include staff analysis or recommendation.
Proposition 3 - Constitutional Right to Marriage. Legislative Constitutional Amendment.
Summary: Amends California Constitution to recognize fundamental right to marry, regardless of sex or race. Removes language in California Constitution stating that marriage is only between a man and a woman.
Proposition 6 - Eliminates Constitutional Provision Allowing Involuntary Servitude for Incarcerate Persons. Legislative Constitutional Amendment.
Summary: Amends the California Constitution to remove current provision that allows jails and prisons to impose involuntary servitude to punish crime (i.e., forcing incarcerated persons to work).
Proposition 32 - Raises Minimum Wage. Initiative Statute.
Summary: Raises minimum wage as follows: For employers with 26 or more employees, to $17 immediately, $18 on January 1, 2025. For employers with 25 or fewer employees, to $17 on January 1, 2025, $18 on January 1, 2026. (Note that there is no impact to City business. The minimum wage in the City is $18.55 which is higher than this Proposition proposes. The City’s minimum wage rate includes an annual adjustment based on the regional Consumer Price Index (CPI)).
Proposition 33 - Expands Local Governments’ Authority to Enact Rent Control on Residential Property. Initiative Statute.
Summary: Repeals Costa-Hawkins Rental Housing Act of 1995, which currently prohibits local ordinances limiting initial residential rental rates for new tenants or rent increases for existing tenants in certain residential properties.
Proposition 34 - Restricts Spending of Prescription Drug Revenues by Certain Health Care Providers. Initiative Statute.
Summary: Requires certain providers to spend 98% of revenues from federal discount prescription drug program on direct patient care. Authorizes statewide negotiation of Medi-Cal drug prices.
Proposition 35 - Provides Permanent Funding for Medi-Cal Health Care Services. Initiative Statute.
Summary: Makes permanent the existing tax on managed health care insurance plans, which, if approved by the federal government, provides revenues to pay for Medi-Cal health care services.
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 meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Adopt the following staff-recommended positions on the ballot measures deemed City business:
SUPPORT - Proposition 2 - Authorizes Bonds for Public School and Community College Facilities. Legislative Statute.
SUPPORT - Proposition 4 - Authorizes Bonds for Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands from Climate Risks. Legislative Statute.
SUPPORT - Proposition 5 - Allows Local Bonds for Affordable Housing and Public Infrastructure with 55% Voter Approval. Legislative Constitutional Amendment.
SUPPORT - Proposition 36 - Allows Felony Charges and Increases Sentences for Certain Drug and Theft Crimes. Initiative Statute.
SUPPORT - Measure E - Sunnyvale Main Library General Obligation Bonds. 2/3rds Vote
SUPPORT - Measure F - City of Sunnyvale City Charter Amendments. Majority Vote
SUPPORT - Measure Y - Sunnyvale School District. Special Tax for Educational Purposes. 2/3rds Vote
SUPPORT - Measure Z - Cupertino Union School District. School Bond Measure. 55% Vote
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:
SUPPORT - Proposition 2 - Authorizes Bonds for Public School and Community College Facilities. Legislative Statute.
SUPPORT - Proposition 4 - Authorizes Bonds for Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands from Climate Risks. Legislative Statute.
SUPPORT - Proposition 5 - Allows Local Bonds for Affordable Housing and Public Infrastructure with 55% Voter Approval. Legislative Constitutional Amendment.
SUPPORT - Proposition 36 - Allows Felony Charges and Increases Sentences for Certain Drug and Theft Crimes. Initiative Statute.
SUPPORT - Measure E - Sunnyvale Main Library General Obligation Bonds. 2/3rds Vote
SUPPORT - Measure F - City of Sunnyvale City Charter Amendments. Majority Vote
SUPPORT - Measure Y - Sunnyvale School District. Special Tax for Educational Purposes. 2/3rds Vote
SUPPORT - Measure Z - Cupertino Union School District. School Bond Measure. 55% Vote
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Michelle Zahraie, Senior Management Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager