That the City Council provide direction to the City of La Habra voting delegate and alternate voting delegate regarding resolutions that will be considered by voting members during the 2021 League of California Cities (League) Annual Conference in Sacramento, September 22-24, 2021.

Each year the League holds a conference for its member cities.  The 2021 League Conference will occur in Sacramento, September 22-24.  The League's Business Meeting will occur on Friday, September 24, at which time the voting delegate for each member city will cast a vote on League resolutions on behalf of his/her city. In order to cast a vote during the Business Meeting, the voting delegate must be in attendance.  At its regular meeting of July 19, 2021, City Council designated Mayor Espinoza as La Habra's voting delegate and Mayor Pro Tem Medrano as La Habra's alternate to the 2021 League Conference, respectively.

2021 Annual Conference Resolutions
At this time there are two resolutions that will be considered during the conference (Attachment 1).  Summaries of each resolution are as follows:

Resolution No. 1 - Online Sales Tax Equity
(Resolution Source:  City of Rancho Cucamonga)
Resolution No. 1 would direct the League to advocate for legislation that provides for a fair and equitable distribution to the Bradley-Burns 1% local sales tax from in-state online purchases, based on data where products are shipped, and that takes into consideration the impacts that fulfillment centers have on host cities, but also provides a fair share to California cities that are not host cities. 

As the sponsor of the resolution, the City of Rancho Cucamonga contends that the Bradley-Burns tax structure for local sales tax has become more complex over time, particularly in relation to the allocation of sales tax revenue stemming from online sales. Recent changes by one of the largest online retailers that altered its ownership structure has had unfavorable change for many cities such that sales tax revenue generated by online sales that had once been distributed via the countywide pool now are distributed entirely to the city in which the online retailer's fulfillment centers are located. 

Cities that do not have a fulfillment center receive no revenue from the retailer's in-state sales transactions, even when packages are delivered to locations within that community and paid for by residents who reside in those jurisdictions.  This "all-or-nothing" practice has created "winners and losers" scenarios amongst cities that had once received a fair share from the countywide pools, but now benefits a few cities at the expense of the majority. This inequity is particularly harsh for cities that border jurisdictions with fulfillment centers who experience negative effects of commerce, such as increased truck traffic, noise, air pollution, and declining road conditions without realizing revenue with which to address these conditions. 

The primary issue is one of with fiscal responsibility and the ability of local agencies to meet their fiduciary responsibilities to the communities they serve.  Support for Resolution No. 1 is consistent with the City of La Habra FY21-22 Legislative Platform, including the following elements:

-  2.A (Finance):  "Support measures that seek to protect local government revenue from takings by the State and oppose legislation that reduces general or special local revenues in any way, whether through a shift, borrowing, diversion, or some other financial mechanism."

- 2.C (Finance):  "Support local government finance reform efforts that seek to more equitably distribute sales and property taxes and ensure that Orange County receives its fair share of resources.

In addition, the City's FY21-22 Goals and Objectives include a variety of programs and projects meant to manage and protect public revenues and fiscal assets, including the following:

-  Goal 2.A (Management of Public Revenues and Fiscal Assets):  "Closely monitor revenues, expenditures, and fiscal issues to ensure the City's financial stability.

For these reasons, City staff recommends approval of Resolution No. 1.

Resolution No. 2 - Securing Railroad Property Maintenance
(Resolution Source:  City of South Gate)
The State of California has more than 6,000 miles of rail lines, with a significant amount of these lines running through established residential neighborhoods and commercial districts.  While it is true that the railroad industry provides a strong base that helps drive the economy, rail lines often become "out of sight" places that witness illegal dumping and the establishment of homeless encampments.  The impact of these activities create quality of life challenges that prove difficult to overcome.

The City of South Gate, the sponsor of Resolution No. 2, has asked that League staff be directed to urge the Governor and Legislature to provide adequate regulatory authority and necessary funding to assist cities with railroad right-of-way areas to address illegal dumping, graffiti, and homeless encampments that proliferate along the rail lines and result in public safety issues. Resolution No. 2 deals in large part with the protection of public safety by the Police Department, although there are aspects of the matter that also touch on issues related to work efforts by the Community Development, Community Services, and Public Works.  Support for Resolution No. 2 is consistent with the City of La Habra FY21-22 Legislative Platform, including the following:

-  4.I (Community Development):  "The City supports measures that demonstrate regional, collaborative approaches to the issue of homelessness and provide funding for emergency and transitional housing, expanding affordable permanent housing opportunities, and promoting greater self-empowerment for those at risk through counseling, drug/alcohol rehabilitation programs, job training, and other supportive services."

-  5.F  (Public Works):  "The supports efforts to preserve or enhance local control of the public right-of-way, including full control over the manner, place and time of use."

In addition, the City's FY21-22 Goals and Objectives include a variety of programs and projects meant to protect and improve the overall quality of life in the community.  The achievement of several of the City's Goals and Objectives is consistent with a position that would indicate support for Resolution No. 2.  Among these are the following:

-  Goal 1.B (Protection of Public Safety):  "Continue community-oriented policing efforts."

-  Goal 1.F (Protection of Public Safety):  "Continue proactive anti-graffiti and graffiti removal efforts citywide."

- Goal 5.A (Development Activity and Business Assistance):  "Identify blighted properties within the community and prepare targeted strategies to address the challenge."

-  Goal 5.C (Development Activity and Business Assistance):  "Work closely with commercial and residential property-owners to improve and update the appearance of their properties."

-  Goal 6.E (Community Outreach):  "Build and maintain partnerships and collaborations with other local government agencies, the business community, local non-profit organizations, and the faith-based community."

For these reasons, City staff recommends approval of Resolution No. 2.