Item 29 REPORTenTcniKii Meeting Date: November 26, 2018 General Plan Element: Public Services & Facilities General Plan Goal: Provide services to improve neighborhoods and the lives of Scottsdale residents

ACTION

Consider the approval of the City of Scottsdale's 2019 State Legislative Agenda.

BACKGROUND

Each year the Government Relations Office, in concurrence with the City Council, staff, and the City Manager, develops a State Legislative Agenda (Agenda) based on priorities and needs of the City and community. Once approved by the City Council, the Agenda provides guidance for activities occurring at the Arizona State Legislature during the Legislature's annual session. This year, the First Regular Session of the 54‘^ Legislature will convene Monday, January 14, 2019.

The Government Relations Office staff will provide updates to the Scottsdale City Council on a regular basis throughout the session and seek additional direction as needed.

ANALYSIS & ASSESSMENT

Significant Issues to be Addressed The 2019 State Legislative Agenda features a Mission Statement and two sections: Core Principies, and Legisiative Poiicy Statements, which includes a 2019 Key Positions overview. The Core Principies give general direction on issues of significant overall importance to the City. The Legisiative Poiicy Statements section identifies requests to support or oppose legislation or legislative concepts, should they arise during the Session. If approved, the Agenda will serve to guide the lobbying activities of the Government Relations Office with regard to issues that arise under their purview.

In development of the Agenda, the Government Relations Office is attempting to integrate elements contained in the City of Scottsdale's General Plan with the provisions of the Legislative Agenda. The General Plan provides a declaration of the City's policies and is used by the City Council to evaluate policy changes and make funding and budget decisions.

RESOURCE IMPACTS

Action Taken City Council Report | Consider Approval of 2019 State Legislative Agenda

Future Budget Implications Adoption of the 2019 State Legislative Agenda does not require funding. However, actions by the Legislature can have an impact on the City's budget. For example, the City Council adopted FY 2018/19 General Fund revenues that include $65.7 million in state-shared revenues ($24.5 million sales tax, $30.3 million income tax and $10.9 million auto lieu tax) or 22 percent of General Fund revenues and transfers in. These state-shared revenues represent 24 percent of the City's General Fund operating budget of approximately $276.1 million.

OPTIONS & STAFF RECOMMENDATION

Recommended Approach Approve 2019 State Legislative Agenda with changes supported by the Council.

RESPONSIBLE DEPARTMENT

Government Relations

STAFF CONTACTS

Brad Lundahl, Government Relations Director. blundahl(5)scottsdaleaz.gov

APPROVED BY

BradAundahl, Director, Government Relations Date (480) 312-2683, [email protected]

Jim Thompson, City Manager Date (480) 312-2811, ithompson(5)scottsdaleaz.gov

ATTACHMENTS

1. Proposed 2019 State Legislative Agenda

Page 2 of 2 City of Scottsdale

2019 State Legislative Agenda

,54tli Ar izona Legislatur e Fir st Regular’ Session 2019

ATTACHMENT 1 Table of Contents

The Scottsdale City Council...... 2 Mission Statement...... 3 Core Principles...... 3 2019 Key Positions...... 4 State Legislative Policy Statements

Economic Vitality and Tourism...... 5 Local Government Finance...... 5 Transportation...... 5 Neighborhoods...... 6 Public Safety ...... 6 Preservation and Environmental Planning...... 6 Water Services and Facilities...... 7

- ] - The Scottsdale City Council

Mayor W.J. “Jim” Lane

t't

y I Councilwoman Councilmember Councilwoman Suzanne Klapp Virginia Korte Kathy Littlefield

Councilwoman Vice Mayor Councilman Linda Milhaven Guy Phillips David N. Smith

-2- City of Scottsdale 2019 State Legislative Agenda mm MISSION

‘Simply Better Service for a World-Class Community’

CORE PRINCIPLES

Value Scottsdale’s Unique Lifestyle and Character Protect those attributes that make Scottsdale unique and desirable. These may include; safe neighborhoods; a Sonoran Desert lifestyle; arts and culture; land preservation and open space; a vibrant and diverse economy; efficient transportation; and high standards of aesthetics, public amenities, and levels of service.

Preserve Local Funding Protect existing funding and authorities that bring revenue to the City of Scottsdale, which support the quality of life for its residents. Such areas may include: the protection of state-shared revenues; the ability to collect compensation for the use of a public right-of-way; and opposition to the imposition of new fees by other levels of government that would increase costs to the City.

State-Shared Revenues - Arizona voters chose, through a series of initiatives, to return a portion of tax revenues back to local communities through revenue sharing. This was provided to municipalities in exchange for losses in local taxing authority such as income and luxury taxes. The City Council adopted FY 2018/19 General Fund revenues that include $65.7 million in state-shared revenues ($24.5 million sales tax, $30.3 million income tax and $10.9 million auto lieu tax) or 22 percent of General Fund revenues and transfers in. These state-shared revenues represent 24 percent of the City’s General Fund operating budget of approximately $276.1 million.

Oppose Preemption of Local Authority Support the retention of local decision-making authority. Scottsdale was voluntarily created by the residents of this community to provide local self- government and to allow the Scottsdale City Council to make decisions at a local level that best meet the needs of the community. Scottsdale has unique needs and characteristics that are best met by policies set by its own local governing body. Unfunded mandates and preemptive efforts to remove the ability to set policy at the local level should be opposed.

-3 - 2019 Key Positions

SUPPORT implementation of the Drought Contingency Plan, if such implementation protects the City’s existing priorities and rights, including underground storage of our Colorado River and reclaimed water, and ensure water left in Lake Mead benefits the Colorado River System.

SUPPORT legislation to address the negative impacts that short-term rental properties can have on adjacent properties and neighborhoods.

SUPPORT legislation to prohibit discrimination in employment, housing, and public accommodations based on sexual orientation and gender identity.

OPPOSE legislation that would to limit or curtail the City’s current zoning authority of home-based businesses in residential areas.

OPPOSE changing the imposition of construction sales taxes to “materials only’’ or other methods that do not equitably return those revenues to where the construction activity occurs.

-4- LEGISLATIVE POLICY STATEMENTS

ECONOMIC VITALITY AND TOURISM

SUPPORT legislation to prohibit discrimination in employment, housing, and public accommodations based on sexual orientation and gender identity.

• SUPPORT a dedicated state fund to better position Arizona to attract and host major attraction events.

• SUPPORT policies that enhance Arizona’s reputation as a world- class medical destination for cutting-edge health care facilities and services.

• SUPPORT legislation or actions that increase angel investor initiatives for start-up technology companies.

• SUPPORT additional Job creation measures including workforce training.

• SUPPORT legislation or actions that embrace emerging technology in Arizona.

LOCAL GOVERNMENT FINANCE

• SUPPORT the continued viability of HURF funding to cities and towns and support phasing down the percentage of HURF revenues being used to fund the Arizona Department of Public Safety.

• OPPOSE legislation that would prohibit or eliminate the transaction privilege tax on the renting or leasing of real property for residential purposes. The negative impact to the City of Scottsdale from the loss of these funds would be in excess of $5 million annually.

TRANSPORTATION

• SUPPORT the continuation of Arizona’s leadership in the development of autonomous vehicles and devices.

• SUPPORT the continued viability of the State Aviation Fund including assurances that fuel taxes will be placed in the Fund or returned to the airport where the fuel sales occur.

-5- Ksa NEIGHBORHOODS

SUPPORT legislation to address the negative impacts that short-term rental properties can have on adjacent properties and neighborhoods.

^ OPPOSE legislation that would to limit or curtail the City’s current zoning authority of home-based businesses in residential areas.

PUBLIC SAFETY

• OPPOSE legislation that would impair the City’s ability to maintain the effectiveness of Scottsdale’s measures such as the Public Safety Plan Ordinance. The purpose of the Ordinance is to promote the general health, safety, and welfare of our community by requiring certain types of businesses to file, follow, and keep current a public safety plan. The Ordinance also requires mandatory training for security personnel.

• OPPOSE legislation that negatively impacts the City’s Fire Code or its ability to enforce its Fire Code provisions. The primary purpose of a fire code Is the prevention of fires, reducing the impact of fire incidents that do occur, ensuring that necessary training and equipment will be on hand and that the original design basis of a home or building does not compromise the safety of its occupants.

• OPPOSE legalizing additional fireworks or other changes that would increase the risk of fires to residents and the McDowell Sonoran Preserve.

• OPPOSE legislation that will restrict the City’s ability to pass or enact local community risk reduction measures.

• OPPOSE legislation that would limit the City’s ability to use photo technology for enforcement of speed and intersection violations.

PRESERVATION AND ENVIRONMENTAL PLANNING Native Plant Ordinance - The City of Scottsdale adopted its Native Plant Ordinance in 1981. Its purpose was to protect the slow-growing cactus and native trees that make the Sonoran Desert a special place.

• OPPOSE legislation that would negatively alter or remove the City of Scottsdale’s important and long-established ordinances regarding native plants and how development occurs in the natural Sonoran Desert environment.

-6- Forest Restoration/Watershed Management - There are millions of acres of diseased, dying, and overgrown forests that have created a widespread forest health problem. The poor condition of these forests has dramatically increased the effects of insect infestation, understory overgrowth, and unnatural fire conditions. The forest health problem is widespread and is affecting wildlife habitat, watershed management, and increasing the dangers to human life and property.

• SUPPORT legislative efforts to bring about changes in forest management with the goal of enacting effective and large-scale forest restoration projects to improve forest health, increase water yield, and reduce the risks and costs of catastrophic wildfires.

WATER SERVICES AND FACILITIES Water Service - It is essential to ensure the protection and enhancement of the City’s ability to provide safe, sustainable, and reliable water and wastewater services to the citizens of Scottsdale at a reasonable cost.

^ SUPPORT implementation of the Drought Contingency Plan, if such implementation protects the City’s existing priorities and rights, including underground storage of our Colorado River and reclaimed water, and ensures water left in Lake Mead benefits the Colorado River System.

• SUPPORT legislation to enhance the value of reclaimed water by removing the 2025 sunset for the ability to earn long-term storage credits by recharging effluent and set the amounts of credits earned from recharging effluent in a managed recharge project equivalent to Central Arizona Project (CAP) water.

• SUPPORT positions that strengthen Arizona’s water management including supporting the 1980 Groundwater Management Act and the ability of local water providers to manage, plan, conserve, and acquire water resources for our customers.

• SUPPORT legislation to ensure the City’s role in the management and continued use of reclaimed and remediated waters.

For approval by the Scottsdale City Council, November 26*^, 2018

-7- ITEM 29

Proposed 2019 State

Legislative Program

City of Scottsdale

Government Relations Office

November 26, 2018 2019 State Legislative Program

First Regular Session of the 54^^ Legislature

Legislature begins January 14, 2019

Senate President:

- Karen Fann (R-, Prescott, LD1)

Speaker of the House:

- Rusty Bowers (R- Mesa, LD 25) Legislative District 23

I h

Senator Michelle Representative Representative Ugenti-Rita Jay Lawrence John Kavanagh Legislative District 24

i;

mill

Senator Representative Representative Legislative District 28

Senator Kate Representative Representative Brophy McGee 2019 State Legislative Agenda

Input from City Leadership

Two Sections

- Core Principles

- Policy Statements (includes Key Positions) 2019 Key Positions

^ SUPPORT implementation of the Drought Contingency

Plan (DCP), if such implementation protects the City’s

existing priorities and rights, including underground

storage of our Colorado River and reclaimed water, and

ensure water left in Lake Mead benefits the Colorado

River System.

^ SUPPORT legislation to address the negative impacts

that short-term rental properties can have on adjacent

properties and neighborhoods. 2019 Key Positions

ef SUPPORT legislation to prohibit discrimination in

employment, housing, and public accommodations

based on sexual orientation and gender identity.

✓ OPPOSE legislation that would limit or curtail the City’s

current zoning authority of home-based businesses in

residential areas.

^ OPPOSE changing the imposition of construction sales

taxes to “materials only” or other methods that do not

equitably return those revenues to where the

construction activity occurs. Economic Vitality & Tourism

SUPPORT increased state funding for favorable tourism and associated job creation environment.

SUPPORT small business by reducing unnecessary obstacles to small business that are inconsistent with the values of the community. Economic Vitality & Tourism

SUPPORT a dedicated fund to better position

Arizona to attract and host major events.

SUPPORT legislation or actions that increase

“angel investor” initiatives for start-up technology companies. Transportation

SUPPORT the continuation of Arizona’s eadership in the development of autonomous vehicles and devices. Approval of Legislative Agenda

Consider approval of 2019 State

Legislative Agenda. Item 29

Proposed 2019 State Legislative Program

City of Scottsdale Government Relations Office November 26, 2018

2019 State Legislative Program

First Regular Session of the 54^^ Legislature

Legislature begins January 14, 2019 Senate President: - Karen Fann (R-, Prescott, LD1) Speaker of the House: - Rusty Bowers (R- Mesa, LD 25) Legislative District 23

mmiSenator Michelle Representative Representative Ugenli-Rita Jay Lawrence John Kavanagh

Legislative District 24

I Senator Representative Representative Lela Alston Amish Shah Jennifer Longdon Legislative District 28

Senator Kate Representative Representative Brophy McGee Kelli Butler Aaron Lieberman

2019 State Legislative Agenda

• Input from City Leadership

• Two Sections - Core Principles - Policy Statements (includes Key Positions) 2019 Key Positions

✓ SUPPORT implementation of the Drought Contingency Plan (DCP), if such implementation protects the City’s existing priorities and rights, including underground storage of our Colorado River and reclaimed water, and ensure water left in Lake Mead benefits the Colorado River System.

SUPPORT legislation to address the negative impacts that short-term rental properties can have on adjacent properties and neighborhoods.

2019 Key Positions

^ SUPPORT legislation to prohibit discrimination in employment, housing, and public accommodations based on sexual orientation and gender identity.

✓ OPPOSE legislation that would limit or curtail the City’s current zoning authority of home-based businesses in residential areas.

0^ OPPOSE changing the imposition of construction sales taxes to “materials only’’ or other methods that do not equitably return those revenues to where the construction activity occurs. Economic Vitality & Tourism

SUPPORT increased state funding for favorable tourism and associated job creation environment.

SUPPORT small business by reducing unnecessary obstacles to small business that are inconsistent with the values of the community.

Economic Vitality & Tourism

SUPPORT a dedicated fund to better position Arizona to attract and host major events.

SUPPORT legislation or actions that increase “angel investor” initiatives for start-up technology companies. Transportation

SUPPORT the continuation of Arizona’s leadership in the development of autonomous vehicles and devices.

Approval of Legislative Agenda

Consider approval of 2019 State Legislative Agenda.