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Record of Proceedings

Law and Legislation Committee Meeting: Community Benefits Agreement Ordinance Discussed and Sent Back for Revisions - April 18, 2023

Law and Legislation Committee — Tuesday, April 18, 2023
BodySacramento, California
SessionLaw and Legislation Committee
DateTuesday, April 18, 2023
StatusFILED
Video Record
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Transcript — Verbatim
0:28

All right, we'll call this meeting of the law and legislation committee to order.

0:32

Welcome everybody.

0:33

Will a clerk please call the role to establish a quorum?

0:35

Councilmember Kaplan.

0:37

Councilmember Jennings.

0:38

Here.

0:39

Councilmember Gera.

0:41

Here.

0:42

And Chair Valenzuela.

0:43

I am here.

0:44

Vice Mayor Guerrero, would you be willing to do the land acknowledgement and pledge of allegiance for us today?

0:50

Yes, I would.

0:56

Please rise for the opening acknowledgments in honor of Sacramento's Indigenous People and Tribal Lands.

1:03

To the original people of this land, the Nissanan people, the Southern Maidu, and Valley and Plains Miwok, the Putwin and Winton people, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe, and we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in the native act of pre in the active practice of acknowledgement and appreciation of Sacramento's indigenous people's history contributions and lives.

1:36

Please stay standing.

1:37

Join me in the uh Pledge of Allegiance.

1:39

Salute Pledge.

1:40

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

1:55

Awesome.

1:56

Thank you, Vice Mayor.

1:58

So thank you all for joining us here today.

2:00

As a friendly reminder, if you're here to make comment on any item today, there are comment sheets in the back of the room.

2:06

Please bring them up here to the clerk's office before we start public comment.

2:10

After the first commenter, we will close public comment.

2:13

And for folks on Zoom, there is a raise hand feature that you can select when your item begins, and we will call on you after we call on folks in the room.

2:22

Now we will go to our consent calendar, items one through three.

2:26

Do I have any committee members who have any questions or comments on consent today?

2:31

Thank you.

2:33

All right.

2:33

Moved and seconded.

2:34

Um, all those in favor, please say aye.

2:37

Aye.

2:37

Any opposed?

2:38

Abstentions?

2:39

That passes unanimously.

2:41

All right.

2:41

Item four was placed on the agenda um inadvertently, so we will not be hearing um anything on surplus lands today.

2:47

Madam Clerk, do we need a vote on that?

2:49

Or is that we do not?

2:50

It's a receive and file.

2:51

If we can just remove it from the agenda.

2:53

Perfect.

2:53

Thank you.

2:54

All right.

2:54

Um, if folks want to talk about surplus lands, they can definitely reach back out.

2:58

But today, the big item on the agenda is the orders related to community benefits agreement.

3:03

So, with that, I'd love to invite the city staff up to begin our presentation.

3:07

Welcome, Mr.

3:07

Jasso.

3:09

Thank you.

3:11

Good morning, madam chair and members of the committee.

3:13

Happy birthday, uh, Councilmember Jennings.

3:17

So before you this afternoon for your review, input dire uh direction and ultimate consideration before the entire council is a draft ordinance requiring the city to engage in a defined community benefit process and ultimate community benefits agreement for projects that meet certain parameters based on direct city assistance.

3:38

I'm joined by staff from the Office of Innovation and Economic Development, Leslie Fritschie and Ellen Sullivan, and Michael Sparks from the City Attorney's Office, all three of whom were instrumental in the drafting of this ordinance.

4:10

Balancing the objective of achieving meaningful and tangible community benefits while also recognizing the very real challenges of supporting projects to fruition, such as predictability, challenging financing, and being as expeditious as possible to deliver such projects, and respecting the rule role of the city council as the duly elected representatives from our communities and the ultimate approver of most projects, the vast majority that might be supported within the context of this community benefits ordinances as well as outside of that context.

4:42

So, with that having been said, staff will go through the ordinance in greater detail, and I turn it over to Leslie Fritschie at this time.

4:49

Thank you.

4:54

Good afternoon.

4:55

Sorry, I always have to make this adjustment.

4:57

Good afternoon, Chair, members of the Law and Ledge community.

Discussion Breakdown — Share of Meeting
Community Benefits Agreement█████████████████████████████████████████████69%
Economic Development██████9%
Procedural████6%
Affordable Housing███5%
Legal███4%
Public Engagement██3%
Community Engagement█2%
Racial Equity Committee█2%
Summary of Proceedings

Law and Legislation Committee Meeting Summary – April 18, 2023

The Law and Legislation Committee of the Sacramento City Council met on April 18, 2023, at 1:03 p.m. in the City Hall Council Chamber. The primary agenda item was a proposed ordinance adding Chapter 3.156 to the Sacramento City Code, relating to Community Benefits Agreements (CBAs). After hearing public testimony and committee deliberation, the committee voted unanimously to send the ordinance back to staff for further revisions and to bring it back to the committee before forwarding to the full City Council.

Consent Calendar

  • Approved the Law and Legislation Committee meeting minutes from March 21, 2023, and April 4, 2023 (Item 1).
  • Approved the Law and Legislation Log (Item 2).
  • Received and filed the Legislative Advocacy Correspondence (Item 3).

Public Comments & Testimony

  • Annie Keys (Downtown Sacramento Partnership) urged a balanced approach, recommending amendments to the funding threshold and definition of development subsidies to avoid constraining development.
  • Rachel Brown (Power and Alliance) echoed the Downtown Sacramento Partnership’s concerns and recommended amendments.
  • Barry Broom expressed frustration with unintended consequences of the ordinance, citing potential harm to economic development and equity concerns.
  • Michelle Willard (Greater Sacramento Economic Council) opposed the draft, stating it would place the urban core at a disadvantage and hinder job creation for low-income communities.
  • Jack Blatner (Sacramento Metro Chamber) supported a percentage-based threshold rather than a flat $10 million, warning of a chilling effect on development.
  • Devin Strucker (River District) requested more time to review the ordinance before taking a position.
  • James Allison (Midtown Association) expressed concerns about overly broad subsidy definitions and the $10 million threshold, urging greater specificity.
  • Sacramento Investment Without Displacement (SIWD) , represented by Gabi Trejo, Kim Williams, and Kira Reid, presented their own draft amendments, including a lower trigger threshold ($3 million), inclusion of land and zoning changes as public investments, stronger community voice in negotiations, and enforcement mechanisms. They urged the committee to move their amendments forward.

Discussion Items

  • Committee members discussed key differences between the city staff draft and the SIWD proposal, including the trigger threshold ($10 million vs. $3 million), the definition of public investment (including land and zoning changes), minimum benefits, community engagement, and enforcement.
  • Vice Mayor Eric Guerra noted the importance of balancing growth with anti-displacement measures and suggested more stakeholder engagement, including industrial partners.
  • Councilmember Lisa Kaplan raised legal concerns regarding the takings clause (Nolan and Dolan cases) and asked for legal research on the city’s authority to impose CBA requirements, especially when no direct city financial contribution is involved but a rezone occurs.
  • Chair Katie Valenzuela emphasized the need for consistency in definitions (e.g., affordability), a tiered approach to thresholds, and clear enforcement mechanisms. She also requested that the City Council approve the implementation guidelines before finalization.
  • The committee agreed that the ordinance needed more work and that additional time was required for stakeholder input and legal review.

Key Outcomes

  • Motion by Vice Mayor Eric Guerra, seconded by Councilmember Rick Jennings, to send the proposed ordinance back to city staff to work with stakeholders (including SIWD, business groups, and new council members) and return to the Law and Legislation Committee for a further hearing before consideration by the full City Council.
  • Vote: Unanimous (4-0).
  • Timeline: Staff will aim to bring the revised ordinance back to the committee on May 2, 2023, or at a later date if needed (possibly June) to allow adequate time for revisions and stakeholder input. The City Council hearing will be scheduled after the committee review.
  • The committee also requested that SIWD provide legal research supporting the city’s ability to impose CBA requirements in cases where a rezone occurs without direct city financial contribution.

Meeting Transcript

All right, we'll call this meeting of the law and legislation committee to order. Welcome everybody. Will a clerk please call the role to establish a quorum? Councilmember Kaplan. Councilmember Jennings. Here. Councilmember Gera. Here. And Chair Valenzuela. I am here. Vice Mayor Guerrero, would you be willing to do the land acknowledgement and pledge of allegiance for us today? Yes, I would. Please rise for the opening acknowledgments in honor of Sacramento's Indigenous People and Tribal Lands. To the original people of this land, the Nissanan people, the Southern Maidu, and Valley and Plains Miwok, the Putwin and Winton people, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe, and we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in the native act of pre in the active practice of acknowledgement and appreciation of Sacramento's indigenous people's history contributions and lives. Please stay standing. Join me in the uh Pledge of Allegiance. Salute Pledge. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. Awesome. Thank you, Vice Mayor. So thank you all for joining us here today. As a friendly reminder, if you're here to make comment on any item today, there are comment sheets in the back of the room. Please bring them up here to the clerk's office before we start public comment. After the first commenter, we will close public comment. And for folks on Zoom, there is a raise hand feature that you can select when your item begins, and we will call on you after we call on folks in the room. Now we will go to our consent calendar, items one through three. Do I have any committee members who have any questions or comments on consent today? Thank you. All right. Moved and seconded. Um, all those in favor, please say aye. Aye. Any opposed? Abstentions? That passes unanimously. All right. Item four was placed on the agenda um inadvertently, so we will not be hearing um anything on surplus lands today. Madam Clerk, do we need a vote on that? Or is that we do not? It's a receive and file. If we can just remove it from the agenda. Perfect. Thank you. All right. Um, if folks want to talk about surplus lands, they can definitely reach back out. But today, the big item on the agenda is the orders related to community benefits agreement. So, with that, I'd love to invite the city staff up to begin our presentation. Welcome, Mr. Jasso. Thank you.

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