HomeMy WebLinkAboutStaff Report 3.F 08/06/2018Imn
DATE: August 6, 2018
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Manager
SUBJECT: Letter to Sonoma County Board of Supervisors Requesting an Amendment to the
Memorandum of Agreement with the Lytton Rancheria.
RECOMMENDATION
It is recommended the City Council consider and, if appropriate, authorize the Mayor to sign a
letter to the Sonoma County Board of Supervisors Requesting an Amendment to the
Memorandum of Agreement with the Lytton Rancheria.
BACKGROUND
House Resolution (H.R.) 597, the Lytton Rancheria Homelands Act of 2017, was introduced on
January 20, 2017, by Representative Jeff Denham.
H.R. 597 would take into trust and make part of its reservation, for the benefit of the Lytton
Rancheria of California, a federally recognized Indian tribe, 511 acres owned by the Rancheria
and adjacent to the City of Windsor. The bill prohibits gaming on lands taken into trust north of
the intersection of Highways 101 and 12. The Bill also provides gaming will be prohibited until
March 16, 2037 on other lands taken into trust for the benefit of the tribe after enactment of H.R.
597, which is consistent with a memorandum of agreement (MOA) executed between the
Rancheria and the County of Sonoma in 2015.
H.R. 597 was passed by the House on July 11, 2017, received in the Senate on July 12, 2017, and
referred to the Senate Committee on Indian Affairs.
In September 2017, the City Council authorized and executed a letter of opposition to H.R. 597
(Attachment 2). In November 2017, the City Council reiterated its opposition to H.R. 597, and
proposed amendments to the Bill that would make permanent a prohibition on gaming on the
lands in question (Attachment 3).
On July 11, 2018, the Senate Committee on Indian Affairs passed H.R. 597. Vice Mayor Healy
attended the Senate Committee hearing, and argued for the amendments proposed in the City's
November 2017 letter: a permanent ban on gaming on the lands in question to be taken into trust
by the Lytton Rancheria. The Committee asked the County and the Rancheria to address those
changes in amendments to their 2015 MOA.
DISCUSSION
The County and the Lytton Tribal Council have drafted proposed amendments to the MOA, in
response to the Senate Committee's request, the operative language of which is as follows:
"The Count) of Sonoma and the Lytton Rancheria of California hereby agree, effective
immediately, to amend the Memorandum of Agreement Between the County of Sonoma and
the Lytton Rancheria of California regarding Fee to Trust lands entered into as of March 10,
2015 (the "Agreement'), as folloivs:
1. Section 6.3 of the Agreement is amended to read as follows:
"The Tribe agrees not to engage in any Gaming or Gaming Activities in Sonoma County
during the term of this Agreement. Notwithstanding this, upon the enactment into law of HR.
597, the Lytton Rancheria Homelands Act of 2017, as passed by the U.S. House of
Representatives, or any other federal legislation containing substantially identical language
to H.R. 597 in the 115th Congress (the "Federal Legislation'), the Tribe agrees to a
permanentprohibition on engaging in any Gaming or Gaining Activities in Sonoma County.
Except with regard to the Federal Legislation, nothing in this provision shall impact or
diminish the County's right to object to and/or comment on lands being taken into trust,
whether or not for the purposes of Gaming. Any disputes arising under this section are
subject to sections II, XI, XIV and XV of this Agreement, which are incorporated by
reference.
2. Section 9.1 of the Agreement is amended to read as follows:
This Agreement shall be in fuill force and effectfor twenty-two (22) years from the Effective
Date, provided that Section 6.3, and Sections II, XI, XIV and XV of the Agreement required to
enforce Section 6.3, shall survive and continue in full force and effectfor so long as the Tribe
has Trust Lands in Sonoma County. "
3. All other provisions of the Agreement remain in effect and unchanged".
Concerns have been raised with this proposed language because, as a Memorandum of
Understanding, it can be modified by future Boards of Supervisors and Tribal Councils, and lacks
enforceability by an outside party. Vice Mayor Healy, working with the City Attorney, has proposed
a solution to that concern: adding language to the amendment that would give the City of Petaluma
third -party beneficiary status, and require the City's consent to any changes to Section 6.3 of the
proposed amendment. Incorporating the proposed language, the operative section of the amendment
would read as follows (proposed change underscored):
"1. Section 6.3 of the Agreement is amended to read os follows:
The Tribe agrees not to engage in any Gaining or Gaming Activities in Sonoma County
during the terin of this Agreement. Notwithstanding this, upon the enachnent into law of H.R.
597, the Lytton Rancheria Homelands Act of 2017, as passed by the U.S. House of
Representatives, or any other federal legislation containing substantially identical language
to H. R. 597 in the IlSth Congress (the "Federal Legislation'), the Tribe agrees to a
2
permanent prohibition on engaging in any Gaming or Gaming Activities in Sonoma County.
Except with regard to the Federal Legislation, nothing in this provision shall impact or
diminish the County's right to object to and/or comment on lands being taken into trust,
whether or notfor the purposes of Gaming. Any disputes arising under this section are
subject to sections II, XI, XIV and XV of this Agreement, which are incorporated by
reference.
Notwithstanding Section 10.1 of the Agreement, the City of Petaluma shall be a third party
beneficiary in accordance with Civil Code section 1559 for purposes of this section 6.3.
Nohvithstanding Section 10.2, the Parties may not amend this Section 6.3 without first
obtaining- the written consent of the Cibh ofPetaluma. Notwithstanding Section 14.5 or any
other provision of the Agreement, the Cib� of Petahnna may IudiciallLnforce this Section 6.3
ygainst the County o Sonoma.
2. Section 9.1 of the Agreement is amended to read as follows:
This Agreement shall be in full force and effect for twenty-hvo (22) years from the Effective
Date, provided that Section 6.3, and Sections II, XI, XIV and XV of the Agreement required to
enforce Section 6.3, shall survive and continue in full force and effect for so long as the Tribe
has Trust Lands in Sonoma County. "
3. All other provisions of the Agreement remain in effect and unchanged."
On August 2, 2018, the City Attorney and I participated in a conference call with corresponding
County staff, and Supervisor Rabbitt, to determine whether the City's proposed language could be
incorporated into the amendment to the MOA developed between the County and the Rancheria. We
were advised to raise the matter with the full Board of Supervisors.
The Board of Supervisors is scheduled to consider amendments to the MOA with the Lytton
Rancheria at its August 7, 2018 meeting. This matter is placed on your August 6, 2018 agenda to
provide the City Council an opportunity to consider the language proposed by Mr. Healy and City
staff to amend the MOU. If the Council deems it appropriate, a draft letter, requesting the Board of
Supervisors to incorporate this proposed language into the Amendment to the MOA, has been
prepared and is attached for the Council's approval and the Mayor's signature.
FINANCIAL IMPACTS
The cost associated with this item was the staff time required to prepare, review and process it.
ATTACHMENTS
1. Draft Letter to County Board of Supervisors
1. September 18, 2017 Letter of Opposition to H.R. 597
2. November 6, 2018 Letter of Opposition to H.R. 597
3
I:v 1 MOVI l l -M -11i1
Sonoma County Board of Supervisors
575 Administration Drive, #100A
Santa Rosa, CA 95403
RE: HR 597 — Oppose
Honorable Chair and Members of the Board:
At its regular meeting of November 6, 2017, the Petaluma City Council authorized me to
request text changes to the Amendment to the Memorandum of Agreement (MOA) between the
County of Sonoma and Lytton Rancheria, scheduled for consideration at your August 7, 2018
meeting.
Supervisor Rabbitt and your Board are aware of the City's opposition to H.R 597. The
reasons for our opposition are clearly stated in our correspondences to our federal legislators
dated September 18 and November 6, 2017, copies of which are enclosed with this letter. Our
November correspondence offered amendments to the Bill that would make permanent the ban
on gaming on the lands in question to be taken into trust by the Rancheria, rather than for the
two-year period contemplated in the Bill.
You are also aware that on July 11, 2018, the Senate Committee on Indian Affairs
approved H.R. 597. In doing so, the Senate Committee directed the County and the Rancheria to
amend the 2015 MOA to make permanent the ban on gaming on the lands in question to be taken
into trust by the Rancheria. The amendments to the MOA before you for consideration on
August 7, 2018 reflect that direction. The serious concern expressed by the Petaluma City
Council is that an MOA can be modified, and enforceable between the parties, but not by a party
outside the agreement. While we do not doubt the intentions or sincerity of the current Board of
Supervisors, or the Lytton Tribal Council, over a period of decades, players and positions can
change. The safeguards in the current MOA could well be eliminated by the action of future
Boards and Tribal Councils.
To address this concern, the City Council proposes that Section 1 of the proposed
Amendment be further amended (proposed change underscored) to read:
" 1. Section 6.3 of the Agreement is amended to read as follows:
The Tribe agrees not to engage in any Gaining or Gaming Activities in Sonoma County
during the term of this Agreement Nohvithstanding this, upon the enactment into lair of HR.
597, the Lytton Rancheria Homelands Act of 2017, as passed by the U.S. House of
Representatives, or any other federal legislation containing substantially identical language
to H.R. 597 in the 1151h Congress (the "Federal Legislation'), the Tribe agrees to a
permanent prohibition on engaging in any Gaining or Gaming Activities in Sonoma C011170�.
Except with regard to the Federal Legislation, nothing in this provision shall impact or
diminish the Comno) 's right to object to andlor connnent on lands being taken into trust,
whether or not for the purposes of Gaining. Any disputes arising under this section are
4
subject to sections II, XI, XIV and XV of this Agreement, which are incorporated by
reference.
Nohvithstanding Section 10.1 of the Agreement, the City ofPetalznna shall be a third party
benefician, in accordance i,vith Civil Code section 1559° or purposes of this section 6.3.
Notwithstanding Section 10.2, the Parties may not amend this Section 6.3 without first
obtaining the written consent of the Cite of Petaluma. Nohvithstanding Section 14.5 or any
other provision of the Agreement, the Cith of Petalanna nnay judicially enforce this Section 6.3
ygainst the Counb� ofSonoma.
The City Council appreciates the stewardship efforts the Board of Supervisors and the Lytton
Tribal Council have made thus far regarding lands to be taken into trust by the Rancheria and the
ban on gaming there that is important to residents in Petaluma and throughout the County. The
addition of our proposed language strengthens the safeguards currently found in the proposed
amendment. For that reason, your favorable consideration of our additions is respectfully
requested.
Sincerely,
David Glass
Mayor
5
ATTACHMENT 2
David Glass
Mayor
Chris Albertson
Teresa Barrett
Mike Healy
Gabe Kearney
Dave King
Kathy Miller
Councibnembers
City Manager's Office
11 English Street
Petaluma, CA 94952
Phone (707) 778-4345
Fax (707) 778-4419
E -Mail:
citymgr&i petahana.ca.us
Economic Developinent
Phone (707) 778-4549
Fax (707) 778-4586
Housing Division
Phone (707) 778-4555
Fax (707) 778- 4586
Information Technology Division
Phone (707) 778-4417
Fax (707) 776-3623
Risk Management Division
Phone (707) 776-3695
Fax (707) 776-3697
OPPO TYYslYY
September 18, 2017
Honorable Dianne Feinstein
United States Senate
331 Hart Senate Office Building
Washington, DC 20510
RE: HR 597 — Oppose
Dear Senators Feinstein and Harris:
Honorable Kamala Harris
United States Senate
112 Hart Senate Office Building
Washington, DC 20510
We write in opposition to HR 597 (Denham), which would take into federal
trust lands in Sonoma County adjacent to the Town of Windsor on behalf of the Lytton
Rancheria of California. As you know, legislation is necessary because the Lytton
Rancheria, which was not a federally recognized tribe in 1934, faces what appears to
be an insurmountable Carcieri problem.
HR 597 represents another.unsavory step in the reservation shopping saga in
the North Bay. The North Bay counties in general, and Petaluma in particular, are
highly sensitized to reservation shopping efforts by both -newly recognized and long
established tribes. The Graton Rancheria, established by Congress in 2000, after being
pressured to abandon its original Highway 37 site, eyed Petaluma before settling on
Rohnert Park. Every single Rohnet-t Park councilmember who supported bringing the
Graton casino there was defeated in their next election.
In Petaluma's case, the Dry Creek band, which operates River Rock casino in
northern Sonoma County, purchased a ranch adjacent to Highway 101 on our southern
boundary shortly after the Graton Rancheria announced plans for Rohnert Park. The
Dry Creek band has agreed, in negotiations with the County of Sonoma centered on
River Rock, not to seek for several more years to have the Petaluma parcel taken into
federal trust. But that agreement will expire, and we are faced with the prospect of .
another potential casino or, at the least, intensive development on lands zoned for
agriculture outside our Urban Growth Boundary in a highly visible community
separator.
The County of Sonoma has negotiated a Memorandum of Agreement with the
Lytton Rancheria obligating it to support the Lytton's land -to -trust efforts. The
County apparently felt it negotiated the best deal possible under the legal
circumstances, although we note that it mistakenly contemplated that the land might
be taken into trust by the Department of the Interior without congressional action.
Because of this MOA, \-ve understand that Sonoma County supervisors are being told
by their legal coLuzsel that they cannot oppose efforts to take the land into trust for the
M
Lytton, even if that is their personal viewpoint. Similarly, our colleagues on the Windsor Town
Council are apparently still hopeful of obtaining fimding from the Lytton to build a community pool.
A particularly troublesome aspect of HR 597 is Section 5. Section 5(b)(1) provides that
additional lands taken into trust for the Lytton in Sonoma County will not be gaming eligible until
after March 15, 2037. Section.5(b)(2) makes the prohibition on gaming permanent for future trust
lands in Sonoma County located north of the intersection of Highways 12 and 101.
The two largest cities in Sonoma County located south of the intersection of Highways 12 and
101 are Rohnert Park and Petaluma. No new casino would want to locate in Rohnert Park because
the Graton casino is already there. Conversely, locating in or near Petaluma would be attractive as
the Dry Creek investment demonstrates — because it would leapfrog the Gratbn casino and be closer
to the central Bay Area. Section 5 of HR 597 paints a big bull's eye on the City of Petaluma.
Section 5 is even more problematic because it could be construed as overriding IGRA and
making lands taken into trust for the Lytton in or near Petaluma gaming eligible, even though such
lands would not otherwise be gaming eligible under IGRA. See 25 U.S.C. § 2719(a)&(b).
For the above reasons, we respectfully request that Hk 597 not be approved.
a,
avid Glass
Mayor
Chris Albertson
Councilmember
Gabe I earney
Councilmember
U Com—.
{athy A'
filler
Councilmember
Teresa Barrett
Vice Mayor
d-,�Z
Mike Healy
Councilmember
leoe (---
Dave King
Councilmember
7
David Glass
Mayor
Chris Albertson
Teresa Barrett
Mike Healy
Gabe Kearney
Dave King
Kathy Miller
Councilinemhers
City Manager's Office
11 English Street
Petaluma, Cif 94952
Phone (707) 778-4345
Fax (707) 778-4419
E -Mail:
cit}nngr&i petahona.ca.its
Economic Development
Phone (707) 778-4549
Fax (707) 778-4586
Hoasing.Divisian
Phone (707) 778-4555
Fax (707) 778- 4586
Information Technologv Division
Phone (707) 778-4417
Fax (707) 776-3623
Risk Management Division
Phone (707) 776-3695
Fav (707) 776-3697
CITY OF A 1
POST ®FFICE Box 61
PETALUMA, CA 94953-0061
November 6, 2017
Honorable Dianne Feinstein
United States Senate
331 Hart Senate Office Building
Washington, DC 20510
RE: HR 597 — Oppose
Dear Senators Feinstein and Harris:
ATTACHMENT 3
Honorable Kamala Harris
United States Senate
112 Hart Senate Office Building
Washington, DC 20510
At its regular meeting of November 6, 2017, the Petaluma City Council
adopted the attached resolution, offering proposed amendments to HR 597, and
indicating our continuing opposition to the Bill.
We write to follow our September 18 letter opposing HR 597 (Denham),
and a subsequent conference call with members of your staff. Thank you for the
prompt response to our letter. In the conference call, John Watts of Senator
Feinstein's office asked how the City would like to see section 5 of HR 597
changed to address the specific concerns pertaining to -Petaluma that were raised
in the September 18 letter.
The Council has considered Mr. Watts' question, and proposes.the
statutory language modifications shown in Exhibit 1 of the attached resolution.
From our perspective, HR 597 would pose less of a threat if the preferred
modification was amended into the bill. However, even with the preferred
amendment, the City of Petaluma will remain opposed to HR 597. Our reasoning
follows:
All nine cities in Sonoma County, including both Petaluma and Windsor,
are surrounded by voter -approved Urban Growth Boundaries to prevent sprawl
type development. Layered over that are voter -approved Urban Separators and
county zoning that support the same policy goals. These policies are enormously
popular with voters.
Petaluma views the Lytton proposal and HR 597 as a pernicious test case
that could serve as a model for frustrated landowners and anti -zoning developers
to partner with a tribe and blow up carefully designed regulations limiting sprawl
development on lands adjoining cities throughout the region.
The City of Petaluma is surrounded by privately owned ranches and farms
outside our Urban Growth Boundary in areas zoned for agriculture, many of
P
which are also located in voter -approved community separators. Under existing policies, these
lands are off limits to intense development. As you know, there are enormous financial
incentives to find ways to develop such lands, especially in the Bay Area, and that financial
pressure will only intensify in the future. The Lytton proposal and HR 597 provide a blueprint
for wrecking these carefully crafted land use policies.
For the above reasons, the City of Petaluma continues to respectfully request that HR 597
not be approved.
Sincerely,
David Glass
May or
r
Chris Albertson
Coun 'member
Ga e earn
�11__(,eA_ /� /row L-_
thy Miller
Teresa Barrett
Vice Mayor
1
Mike Healy
Councilmember
Dave King
Councilmember
9
Resolution No. 2017-167 N.C.S.
of the City of Petaluma, California
RESOLUTION AUTHORIZING A LETTER OFFERING
AMENDED LANGUAGE, AND INDICATING CONTINUING
OPPOSITION, I'O HR S97 (DENHAM)
WHEREAS, the City Council sent a letter of opposition to Senators Dianne Feinstein
and Kamala Harris on September 18, 2017 opposing HR 597; and
WHEREAS, in subsequent conversations with Senator Feinstein's office, the City was
asked for specifics on how to change Section 5 of HR 597; and
WHEREAS, the City- has received direction to present the proposed statutory language
modifications shown in Exhibit 1 to the letter of opposition; and
WHEREAS, the City of Petaluma remains opposed to HR 597,
NOW, THEREFORE, BE IT RESOLVED that the City Council offers proposed
amendments to Section 5 of HR 597 as detailed in Exhibit 1 to this Resolution and indicates its
continuing opposition to the Bill,
Under the power and authority conferred upon this Council by the Charter of said City,
REFERENCE: 1 hereby certify the foregoing Resolution was introduced and adopted by the Approved asAl
Council of the City of Petaluma at a Regular meeting on the 6'h day of November, fo.. t j
2017, by the following vote: ,
City AttomS)L.`
AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Hcaly, Kearney, King, Miller
NOES: None
ABSENT: None
- a
ABSTAIN: None
ArrEsr:
City Clerk C --Mayor
Resolution No. 20.17-167 N.C.S. 10
Exhibit 1 to Resolution
HR 597, Section 5(b)
1. Lin tiage iii current bill:
(b) OTh1;R LANDS TAKEN INTO TRUST.—
(1) TIME-LIMITED PROHIBITION.—Lands taken into trust for the benefit of the Tribe
in Sonoma County after the date of the enactment of this Act shall not be eligible for gaming
under the Indian Gaming Regulatory Act (25 U.S.C. 2710 et seq.) until after March 1.5, 2037.
(2) PERMANENT PROHIBITION. -Notwithstanding paragraph (1), lands located
north of a line that runs in a cardinal cast and west direction and is defined by California State
Highway Route 12 as it crosses through Sonotna County at highway 101 as they are physically
on the ground and used for transportation on January 1, 2016, and extending to the furthest
extent of Sonoma County shall not be eligible for gaming under the Indian Gaming Regulatory
Act (25 U.S.C. 2710 et seq.).
2. City of Petaluma's Preferred Modification:
(b) OTHER LANDS TAKEN INTO TRUST.—
(1) PERMANENT PROHIBITION.—Lands taken into trust for the benefit of the Tribe
in Sonoma County after the date of the enactment of this Act shall not be eligible for gaming
under the Indian Gaming Regulatory Act (25 U.S.C. 2710 et seq).
3. City of Petaluma's Second Choice Modification:
(b) OTHER LANDS TAKEN INTO TRUST.—
(1) TIME-LIMITED PROHIBITION.—Lands taken into trust for the benefit of the Tribe
in Sonoma County after the date of the enactment of this Act shall not be eligible for gaming
under the Indian Gaming Regulatory Act (25 U.S.C. 2710 et seq) until after March 15, 2037.
After that date, lands taken into trust for the benefit of the Tribe in Sonoma County would not
automatically be eligible for gaming but would still need to qualify as eligible for gaming
pursuant to 25 U.S.C. 2519 or other statute.
(2) PERMANENT PROHIBITION.—Notwithstanding paragraph (1), lands located
north of a line that runs in a cardinal east and west direction and is defined by California State
Highway Route 12 as it crosses through Sonoma County at Highway 101 as they are physically
on the ground and used for transportation on January 1, 2016, and extending to the furthest
extent of Sonoma County shall not be eligible for gaming under the Indian Gaining Regulatory
Act (25 U.S.C. 2710 et seq).
Resolution No. 2017-167 N.C.S. I