TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. Subject
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Consider the City of Orange’s current membership in the League of California Cities and provide direction to City staff.
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2. Summary
The City of Orange most recently became a League of California Cities member in September 2021. In considering the League of California Cities’ position on Proposition 1, the City Council directed staff to bring back a discussion item concerning the City’s membership in the League of California Cities.
3. Recommended Action
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Discuss the City of Orange’s current membership in the League of California Cities and provide direction to City staff.
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4. Fiscal Impact
The City of Orange’s 2024 membership dues for the League of California Cities totaled $34,079. Discontinuing the City of Orange’s membership will result in future savings to the General Fund.
5. Strategic Plan Goals
Goal 2: Be a Fiscally Healthy Community
a. Expend fiscal resources responsibly.
6. Discussion and Background
On December 6, 2023, the League of California Cities’ (CalCities) Board announced it had voted to support Proposition 1 - Behavioral Health Services Bond Measure (Proposition 1). At the March 12, 2024, City Council meeting, the City Council directed staff to bring back a discussion item concerning the City’s current CalCities membership. Provided below are brief summaries on CalCities’ function to the City, an overview on Proposition 1, and CalCities’ position on Proposition 1.
CalCities Membership and Function Overview
On August 10, 2021, the Orange City Council directed staff to take the necessary steps for the City to become a CalCities member. Of the 482 incorporated cities in California, CalCities reports 476 cities are current members. CalCities is organized with 16 regional divisions, including one specifically for Orange County. Over four hundred city officials comprise seven policy committees, which in part drive the policy-making and legislative advocacy process.
Aside from policy committees and legislative advocacy, CalCities provides educational opportunities for city staff and elected officials. Often these events are tailored for specific departments. Education events require payment, but registration fees are less than those available to non-member cities. As an example, CalCities will be holding a City Leaders Summit in Sacramento from April 17-19, 2024. Registration for member cities will cost $650 per person and $1,650 per person for non-member cities.
The City recently paid its annual membership dues for CalCities totaling $34,079. This payment covers the calendar year 2024. Should the City Council decide to no longer be a CalCities member, City staff will work with CalCities to secure a pro-rated reimbursement. Attached for reference is the CalCities invoice for 2024.
Proposition 1 Overview
On January 23, 2024, the Orange City Council adopted Resolution No. 11525, opposing Proposition 1. California voters considered Proposition 1 at the March 5, 2024, Presidential Primary Election. As of this writing, the election results have not been finalized.
Proposition 1 includes two aspects. First, it alters the 2004 Mental Health Services Act (MHSA), diverting more funding to the State (an estimated loss of $140 million annually to counties). It also removes some county discretion on how existing MHSA funds can be used, requiring counties to spend more MHSA money on housing and personalized support services (e.g., employment assistance) thereby leaving less resources for other mental health services.
Second, it proposes a $6.38 billion bond to develop more mental health and drug/alcohol treatment facilities while also funding more housing for individuals struggling with mental health as well as drug and alcohol abuse. If Proposition 1 passes, the bond proceeds will be distributed as follows:
• Facilities for Mental Health Care and Drug or Alcohol Treatment - $4.4 billion would go to a state program to build more facilities for mental health care and drug or alcohol treatment. Of the $4.4 billion, $1.5 billion would be set aside for local governments (i.e., cities, counties, and tribal entities).
• Housing - $2 billion to a state program to construct new housing or rehabilitate hotels or other buildings into housing. It should be noted that housing projects funded by this bond would be considered “use by right,” potentially preempting local zoning law for properties with multifamily residential, office, retail, or parking uses.
CalCities Position on Proposition 1
On December 6, 2023, the CalCities Board acknowledged cities had expressed concerns about late amendments to legislation that comprise Proposition 1.
In response, CalCities noted it had “withdrew its support” but also stated the CalCities Board “directed staff to engage in the regulatory process and pursue legislation to address these concerns while also supporting Proposition 1.” Attached for reference is the CalCities Board statement.
7. ATTACHMENTS
• CalCities Calendar Year 2024 Invoice
• City Council Resolution No. 11525
• December 6, 2023, CalCities Board Statement