IN THIS ISSUE: March 7, 2008
Issue #10-2008
Page 3: Interested in Serving on the League Board of Directors?
Court Holds Public Employees Relations Board Has Exclusive Jurisdiction Over Labor Disputes
Page 4: Sustainable Cities Feature: Ventura’s Green TV
Page 5: HCD Releases Final Prop. 1C Infill Guidelines
Climate Leadership Opportunities for Local Officials
Page 6: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
NLC 2008 CONGRESSIONAL CITY CONFERENCE BEGINS NEXT WEEK
The 2008 National League of Cities (NLC) Congressional City Conference is next week, March 8-
12, in Washington, D.C. The League of California Cities is organizing a number of important
events during the conference. For more, see Page 2.
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CITY-BY-CITY ESTIMATES OF IMPACTS OF LAO’S PROPOSED SHIFT OF CITY
PUBLIC SAFETY FUNDING FOR PAROLE COSTS
A provision in the Legislative Analyst Elizabeth Hill’s recently released alternative budget
proposal would shift state parole responsibilities to counties and fund it by taking away city public
safety dollars.
City officials will want to review the League’s analysis of the Legislative Analyst’s Office’s (LAO)
proposal, which includes city-by-city estimates of the potential impact. The analysis is available
on the League’s Web site at www.cacities.org/resource_files/26631.LAOanalysis080225.pdf.
For more, see Page 2.
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LEAGUE PRESIDENT APPOINTS BOARD OF DIRECTORS
NOMINATING COMMITTEE
Jim Madaffer, president and San Diego city council member, has appointed the 2008 Board of
Directors Nominating Committee. For more, see Page 2. 2
‘NLC’ Continued from Page 1…
California city officials who are attending the NLC conference should mark their calendars for the
following activities.
Monday, March 10
• 6-7:30 p.m. - League Reception, Washington Hilton, Lincoln East Room
Tuesday, March 11
• 4 p.m. - Meeting with California Senator Barbara Boxer, Dirksen Senate Office Building,
Room 406
• 6-8 p.m. - Capitol Hill Reception for California City Officials and California Congressional
Delegation, Tortilla Coast, 400 1st Street, SE
Wednesday, March 12
• 9:30-10:30 a.m. - Roundtable discussion on energy with the California Congressional
Delegation, HC-6 in the U.S. Capitol Building.
o Please note that you must bring valid photo identification to gain entrance to the
U.S. Capitol Building
_____________________________________________________________________________
‘LAO’s Budget Proposal’ Continued from Page 1…
Take Action!
• Immediately review the potential impact to your city with your police chief (or fire chief if
applicable).
• Ask your police chief (or fire chief if applicable) to call your Assembly Member and
Senator and explain what these proposed cuts would mean to your city’s public safety
department(s).
o The Legislative Council Web site has a database of legislators. Search for your’s
at www.leginfo.ca.gov.
What’s Next
The Assembly Budget Subcommittee #4 is scheduled to hold a hearing on the LAO parole
proposal on Wednesday, March 12. The League encourages city officials to contact their
Assembly Members now because it is crucial that legislators understand what these cuts will
mean for cities in their districts.
_____________________________________________________________________________
‘Nominating Committee’ Continued from Page 1…
Appointed to the Committee and charged with the responsibility of nominating League officers
and at-large directors, are: Jere Melo (chair), council member, Fort Bragg; James Ridenour,
mayor, Modesto; Sedalia Sanders, council member, El Centro; Stephany Aguilar, mayor, Scotts
Valley; Mike Segala, council member, Suisun City; Richard Dixon, mayor, Lake Forest; Robert
Jehn, council member, Cloverdale; Miguel Ucovich, council member, Loomis; Art Madrid, mayor,
La Mesa; Terry Henderson, council member, La Quinta; and Kay Vinson, city clerk, Murrieta.
The Nominating Committee will meet on July 25 before the July 25-26 board meeting to interview
the 10 finalists for at-large and all second vice president candidates.
The Committee’s recommendations will be announced during the opening session of the
League’s annual conference in Long Beach on Sept. 24.
_____________________________________________________________________________
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Interested in Serving on the League Board of Directors?
The League of California Cities welcomes nominations from elected officials interested in serving
in five at-large positions (two-year term) or second vice president (one-year term). All nominees
for second vice president must have previously served on the board of directors.
If you are interested in submitting your name (or another elected official’s name) for nomination to
the League board of directors, please provide the information requested on the Nominating Form,
along with a bio and a letter requesting consideration, to the League’s Sacramento headquarters.
Materials are due on or before the end of business on Friday, May 16, 2008.
Nomination materials can be found on the League’s Web site at www.cacities.org/board or
obtained by contacting Mimi Sharpe at (916) 658-8232 or e-mail sharpem@cacities.org.
Nomination applications should be sent to:
Mimi Sharpe
League of California Cities
1400 K Street
Sacramento, CA 95814
Or by fax: (916) 658-8240 attn: Mimi Sharpe
Or by e-mail: sharpem@cacities.org
_____________________________________________________________________________
Court Holds Public Employees Relations Board Has Exclusive Jurisdiction Over
Labor Disputes
In the June 8, 2007 issue, Priority Focus reported on a trio of cases regarding the jurisdiction of
the Public Employee Relations Board (PERB) over labor disputes between public agencies and
their employees, and in particular, a decision issued in a case involving the City and County of
San Francisco. The 6th District Court of Appeal recently issued a decision in one of these cases
that PERB has exclusive initial jurisdiction over labor disputes involving employees with job duties
essential to preserving the public health and safety.
The labor dispute at issue involved the City of San Jose and the Operating Engineers union. The
union gave San Jose 72 hours notice of its intent to picket various public facilities, including the
city’s wastewater treatment plant. The city sought an emergency injunction from the Superior
Court to prevent the union from picketing the plant, and to prevent certain employees, such as
wastewater treatment plant operators, from going on strike because these positions are essential
to preserving the public health and safety.
The Superior Court declined to hear the matter, concluding that under state law, PERB had
exclusive initial jurisdiction over the labor dispute. San Jose appealed this determination to the
Court of Appeal, which issued a decision upholding the Superior Court’s determination.
The Court of Appeal examined the state law creating PERB and concluded that the Legislature
intended for PERB to have exclusive initial jurisdiction over public sector labor disputes, even
where the employees involved have job duties essential to preserving the public health and
safety.
The Court concluded that PERB was uniquely suited to adjudicate these labor disputes, and that
it had the capability to quickly consider such disputes where the public health and safety may be
implicated. Lastly, the Court concluded that PERB had the authority to grant binding injunctive
relief in appropriate circumstances.
This decision follows the previous decision from the 1st District Court of Appeal pertaining to the
City and County of San Francisco. (This decision was reported in the June 8, 2007 Priority 4
Focus.) That decision held PERB has exclusive jurisdiction over a labor dispute even where the
city charter allowed either party to refer the dispute to binding arbitration.
A decision has not been issued in the third case involving PERB jurisdiction. This remaining case
concerns Contra Costa County and concerns to a fact pattern similar to the one in the San Jose
case. It is currently before the 1st District Court of Appeal.
Two cases for which decisions have been issued are: City of San Jose v. Operating Engineers
Local No. 3, 2008 WL 56820 and City and County of San Francisco v. Int’l Union of Operating
Engineers, Local 39, 151 Cal. App. 4st 938. The remaining case is County of Contra Costa v.
Public Employees Union Local No. 1, Case No. A115095.
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Sustainable Cities Feature: Ventura’s Green TV
“Lights, camera, action,” might not be words you’d expect to hear from a city environmental
services superintendent. But that’s exactly what Ventura’s Ray Olson says in his spare time to the
volunteer actors, camera operators and editors who help him create a series of funny videos with
an environmental theme for the city.
Olson, who heads up Ventura’s environmental services unit, started making the videos in 1998.
His 22 minute programs, which air on Ventura’s public access channel, publicize the city’s
message about conservation in an amusing way.
The shows cover everything from recycling to energy efficiency. Olson makes them entertaining
by using campy parodies of genres to tell the message. He’s done everything from reality TV to
westerns, science fiction, 1940s detective dramas, horror monster movies and even silent
movies.
In a western parody, the hero arrives in town with his own recycling bin. The sheriff, who owns
the town dump, tells the hero to clear out of town by high-noon. Meanwhile, the hero has
convinced the town folk that they need recycling. In the final showdown, the hero runs the sheriff
out of town and sets up a recycling program.
Olson now has a reusable archive of 60 different shows. Each is done with an evergreen
message so it can be rebroadcast again and again. Annually, these programs get about 2000
hours of airtime.
Olson’s Inspiration
For years, Ventura used traditional means to communicate its environmental message to
residents. Olson had an epiphany about 10 years ago when paying for an ad about composting
in the local paper. He realized that he could reach more people more efficiently by making TV
programs with environmental themes than running an ad in the paper. Penciling it out, Olson
determined that by using volunteers, the production cost for each show would run about the same
as placing an ad, $800 when he began, $1,300 today.
When Olson started, he had no video production experience and has learned the craft over many
years of trial and error. He writes the scripts and a couple of young technologically savvy city
staffers help shoot and edit the programs. Volunteers serve as the actors, which has been a great
way to engage residents with the city and its programs.
City Wide Focus on Conservation
Ventura’s green TV programming is just one part of the city’s environmental commitment. In the
last two years, the city has reduced electricity use at city facilities by 25 percent. Ventura’s fleet of
hybrid vehicles helps save 1,500 gallons of gas annually.
With a diversion rate of 67 percent of all waste, one of the highest in the state, Ventura’s efforts
are making a sizable impact on the environment. Residents can even recycle their old tennis
shoes. 5
In one year, the material the city recycles creates the following benefits:
• Saves enough energy to provide the power needs of 5,300 households;
• Reduces the amount of pollution emitted into the air by 899 tons;
• Reduces the amount of pollution released into the water by 147 tons;
• Saves more than 324,000 trees by recycling paper; and
• Reduces greenhouse gas emissions by 37,000 tons (the equivalent of removing
7,400 cars from the road).
More information about Ventura’s program can be found on the city’s Web site at
www.cityofventura.net/GreenVentura.
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HCD Releases Final Prop. 1C Infill Guidelines
City officials will want to review the final Proposition 1C Infill Guidelines released last week by the
Department of Housing and Community Development (HCD).
Prop. 1C, the Housing and Emergency Shelter Trust Fund Act of 2006, includes a grant program
to promote infill housing development. The Infill Infrastructure Grant Program provides financial
assistance for the infrastructure improvements needed to support the development of new infill
housing.
The final Infill Guidelines are located on HCD’s Web site at www.hcd.ca.gov/fa/iig.
_____________________________________________________________________________
Climate Leadership Opportunities for Local Officials
If your city is looking for ways to reduce greenhouse gas (GHG) emissions and save money, the
Institute for Local Government’s (ILG) new Best Practices Framework is a resource of sustainable
ideas, actions and opportunities.
The Best Practices Framework was produced by ILG’s California Climate Action Network
(CCAN), which offers local officials a variety of sample policies and resources on climate change.
CCAN’s Best Practices Framework includes 10 action GHG reduction categories for local
governments:
1. Energy Efficiency and Conservation
2. Waste Reduction and Recycling
3. Climate-Friendly Purchasing
4. Renewable Energy and Low-Carbon Fuels
5. Land Use and Community Design
6. Efficient Transportation
7. Green Building
8. Water and Wastewater Systems
9. Storing and Offsetting Carbon Emissions
10. Promoting Community and Individual Action
The new framework can be found on ILG’s Web site at www.ca-ilg.org/climatepractices.
ILG wants city officials to review the Best Practices Framework. City officials can send their
feedback to climatechange@ca-ilg.org.
Share Your City’s Story with ILG
Many cities have already launched innovative and exciting initiatives in these areas. ILG wants to
know if your city has examples to share because other communities can benefit from your
experience. Send your city’s policies, sample documents and any other relevant materials to
climatechange@ca-ilg.org.
6
ILG has more information about this program online at www.ca-ilg.org/climateresources.
Background
The Best Practices Framework is the result of extensive collaboration over the past year by
CCAN and a wide array of technical advisors from local government, investor-owned and
municipal utilities, the waste management industry, non-profit organizations, state agencies and
other partners.
ILG is the 501(c)(3) research affiliate for the California State Association of Counties and League
of California Cities.
More information about ILG can be found at www.ca-ilg.org.
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
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IN THIS ISSUE: March 14, 2008
Issue #11-2008
Page 7: More Cities Receive Prop. 1B Local Street and Road Funds
Relief for Cities Affected by the Spike in Variable Rate Interest Costs
Page 8: California Communities Offers Cities Short Term Cash Flow Financing
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
BUDGET SUBCOMMITTEES REVIEW LEGISLATIVE ANALYST’S PROPOSAL TO USE CITY
AND COUNTY SUBVENTIONS TO PAY FOR PROBATION REALIGNMENT PROGRAM
Wednesday, March 12 was a busy day for budget activity with both the Senate Budget
Subcommittee #4 and the Assembly Budget Subcommittee #4 meeting to discuss aspects of the
Legislative Analyst’s Office (LAO) proposal that would have a direct impact on city revenues.
For more, see Page 2.
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GOVERNOR CALLS MEETING ON INFRASTRUCTURE AND OPPORTUNITIES FOR
PUBLIC-PRIVATE PARTNERSHIPS
Earlier this week, Gov. Arnold Schwarzenegger met with the League and public and private sector
representatives with a stake in improving California’s public infrastructure. The March 12 meeting
focused on the state’s infrastructure needs and included a discussion with examples of public and
private partnerships on key infrastructure projects in California. For more, see Page 2.
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CALIFORNIA CITY OFFICIALS DELIVER THEIR MESSAGE TO WASHINGTON
More than 220 California city officials joined thousands of other city officials from across the nation
for the 2008 National League of Cities (NLC) Congressional Cities Conference, March 8-12. This is
an annual event aimed at communicating with U.S. senators and Congressional representatives
and policy experts about the direct impact of federal decisions on local government. For more, see
Page 3. 2
‘Budget Subcommittees’ Continued from Page 1…
Senate Subcommittee #4
The Senate Subcommittee #4 focused primarily on LAO’s proposal to “realign” responsibility for
supervising 71,000 parolees with current convictions for non-serious, non-violent drug and property
crimes to local probation departments who already supervise similar offenders.
Past realignment proposals of other programs (mental health) have worked with some success.
This LAO proposal however, is victim to the tendency in that office to take money from cities to pay
the costs of some other program. In particular, the LAO proposal shifts $178 of Proposition 172
sales tax revenue that now goes to cities to help pay for the program.
The proposal would also shift $188 million from water and waste district property taxes to the
program along with $130 million in revenue that now goes to the Department of Motor Vehicles to
administer vehicle license fee collections.
Senator Mike Machado (D-Linden), subcommittee chair, pressed the Department of Finance
representative about the quality of the Governor’s proposal to release 20,000 inmates with non-
serious, nonviolent drug and property crimes from state prisons. The LAO realignment proposal is
intended to provide probation services to assist the transition of these 20,000 inmates into local
communities.
The League testified that the LAO proposal has a policy disconnect because it would take money
from cities currently dedicated to front-line law enforcement and public safety programs and give it
to counties for probation services. It is highly likely that if 20,000 prisoners are released into local
communities, there will be a significant and direct impact on local law enforcement.
The League suggested that other revenue sources should be explored instead. Witnesses from
special districts that provide water and sewer services also voiced their strong opposition to taking
property taxes from their jurisdictions and using it to pay for probation services.
Assembly Subcommittee #4
The Assembly Budget Subcommittee #4 hearing examined the aspects of the LAO proposal aimed
at cutting state subventions for local law enforcement programs, including the realignment
proposal.
The additional programs targeted for cuts by LAO include the Community Oriented Policing
Services (COPS) program that sends $119 million to cities and counties for front-line law
enforcement personnel, the juvenile justice program for counties ($119 million) and the booking fee
reimbursement for cities to pay county jail booking fees ($38 million).
LAO’s proposals to cut city money for all of these programs met heavy opposition from local
government, including the local government law enforcement community.
It was also clear that city officials had done a good job of contacting members of the subcommittee
about the proposals. Most members of the subcommittee expressed serious objections to the
funding proposals recommended by the LAO.
_____________________________________________________________________________
‘Infrastructure’ Continued from Page 1…
David Crane, special advisor to the Governor on jobs and the economy and Dale Bonner, secretary
of Business, Transportation and Housing facilitated the meeting with the Governor.
With an opportunity to present its priorities to the Governor, the League made the following
recommendations:
Expedite Proposition 1B Money and Authorize Round II of Funding for Cities and Counties.
The initial allocation of Prop. 1B money is just starting to flow to cities, but future appropriations 3
could be expedited for the remaining Local Street and Road funds. Cities can put this money to
work immediately since there is a tremendous unmet need in the local transportation system.
The state should authorize the balance of the funding to be committed ($1.05 billion) and authorize
an additional $2 billion to cities and counties.
Green/Infill Infrastructure. The infill infrastructure program in the Prop. 1C housing bond
successfully responds to infill housing and infrastructure needs of local communities. This money
enables local governments to approve transit-oriented development and the infrastructure to
support development such as: transit capital projects, storm water management and treatment
systems, and wastewater management systems. These projects tie directly to the goal of AB 32
(2006) to lower green house gases.
The League supports a bold financing plan with voter approval of a bond for green/infill
infrastructure, including schools served by transit and other infrastructure to better connect jobs
and housing. Possible Cost: $10 billion.
Water Quality Infrastructure Investments. Cities and counties across California are confronting a
dramatic need to upgrade wastewater and storm water infrastructure to meet new treatment
requirements.
There is a rapidly growing need for the state to issue a bond to finance loans and grants to urban
and rural cities, large and small, to upgrade their existing wastewater collection and treatment
infrastructure and to finance new storm water management and treatment infrastructure to prevent
continued pollution of our streams, rivers and ocean. Possible Cost: $5 billion.
Reduce Voter Threshold for Infrastructure Projects. The League recognizes that it is not
feasible for the state to be the only source for infrastructure funding.
A proposal to give local governments the same 55 percent voter-approval threshold that has been
given to schools for capital projects would help effectively address California’s infrastructure needs.
This will also engage local residents in the civic dialogue about the urban development of their
community.
Stabilize Transit Operations. Construction of transit-oriented development is a goal that is
consistent with the parameters of AB 32 (2006), but it can’t be done unless transit has sufficient
operating funding.
Some recognition of the need for transit operations revenues is an important piece of a
comprehensive transportation financing plan.
Caltrans/Local Project Streamlining Task Force. Create a state and local task force to develop a
recommendation to streamline the CalTrans project permit process. This is currently a very
cumbersome process which adds delays to worthwhile projects as well as significant cost
increases as construction costs rise.
Next Step
The March 12 meeting was part of an on-going effort by the Schwarzenegger Administration to
begin a serious, comprehensive infrastructure program for California to handle the tremendous
backlog in public facility maintenance and the reality that those facilities must accommodate a
constantly growing population.
The League expects to be engaged with the Administration in future discussions about California’s
infrastructure needs and will provide updates on its Web site at www.cacities.org/infrastructure.
_____________________________________________________________________________
4
‘NLC Congressional Cities Conference’ Continued from Page 1…
During the NLC conference, 3,500 city officials attended sessions on a variety of federal issues
critical to cities including infrastructure investment, public safety, energy, climate change,
transportation and the mortgage crisis. The California delegation was led by Jim Madaffer, League
president and San Diego city council member and Judy Mitchell, League second vice president and
Rolling Hills Estates council member.
NLC President and Madison, Ala. Council Member Cynthia McCollum unveiled the American Cities
2008 NLC’s campaign to bring awareness of local issues to the presidential campaign. A video
shown during the opening general session featured elected officials from across the country posing
city-related questions to the candidates.
Ron Loveridge, mayor of Riverside, past president of the League and current NLC second vice
president asked in the video: "In the late 50s, President Eisenhower proposed a federal highway
system. Since then, we've not had an overarching look at transportation -- but more than
transportation, our entire national infrastructure. What do you propose to do to rebuild America?
How do we build America's future?"
Visit www.americancities08.org for additional information about American Cities 2008.
Congressional Meetings and Policy Briefings
The League’s officers met with Senators Dianne Feinstein (D-CA) and Barbara Boxer (D-CA),
Speaker Nancy Pelosi (D-8th) and Representative Laura Richardson (D-37th) and other members
of the California Congressional Delegation to brief them on the League’s federal priorities.
In a long meeting with Sen. Feinstein, the League’s officers discussed issues ranging from the
newly authorized Energy Efficiency and Conservation Block Grant (EECBG) program to S. 456, the
senator’s gang abatement legislation.
Sen. Boxer commented to the League about California’s position as a leader on many fronts
including climate change. She said that she understood the importance of expanding infrastructure
From left to right: Ron Loveridge, mayor of Riverside, past president of the League and
current NLC second vice president, Sen. Dianne Feinstein, Judy Mitchell, League second
vice president and Rolling Hills Estates council member, Dave Allan, La Mesa council
member and Jim Madaffer, League president and San Diego city council.
5
investments to support transportation. The mortgage crisis is a personal issue to the senator and
she emphasized the need to address it immediately.
During the conversation with Sen. Boxer, League President Jim Madaffer stressed the need for a
national container fee to help fund California’s infrastructure used to transport goods outside the
state.
Sen. Barbara Boxer with the California Delegation.
In April, the League’s policy committees will review federal container fee legislation, H.R. 5102, the
ON TIME Act (Our Nation's Trade, Infrastructure, Mobility, and Efficiency Act). Introduced earlier
this year by Rep. Ken Calvert (R-44th), the legislation would implement federal fees on all
shipments in and out of the country’s ports, airports and border crossings to generate revenue to
fund transportation projects on freight routes.
League and NLC leadership met privately with Speaker Nancy Pelosi (D-8th) prior to her full
conference address. The speaker expressed her commitment to public safety funding and
emphasized her background in local government.
Speaker Pelosi’s father spent 22 years as a public official and was a Baltimore city council member
and mayor. One of her brothers also served as Baltimore council member and mayor. This family
history, she said, instilled in her an understanding of the significant role that city officials play as
leaders of their community and the daily challenges they face in providing services to their
residents.
The speaker talked at length about the critical need of upgrading the nation’s infrastructure system
as well as promoting renewable energy to protect the environment and support high quality
American jobs.
In a separate meeting with Rep. Richardson, the League’s officers focused on the need for federal
infrastructure investment. The congresswoman pointed out during the conversation that 64 percent
of goods delivered into the ports of Long Beach and Los Angeles are bound for destinations
outside of California.
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From left to right: Jim Madaffer, League president and San Diego city council, Rep. Laura
Richardson, Chris McKenzie, League executive director and Fran Mancia, League Partner.
A former Long Beach council member and League alternate board member, Rep. Richardson
credited much of her success in adjusting to Congress to her local government experiences and
said she uses this to inform her decision-making at the federal level.
The League’s legislative staff developed five issue papers on the League’s 2008 federal priorities
for the California delegation to use in their meetings with members of Congress. The papers
focused on the following:
• Addressing climate change;
• Responding to foreclosures and California’s continuing need for affordable housing;
• Transit oriented development;
• Goods movement transportation investment for national economic stimulus; and
• Protecting public safety in California.
The League’s federal priority issue papers used during the meetings are available at
www.cacities.org/federalresources.
The NLC’s 2008 Legislative Priorities can also be found online at www.nlc.org.
Emphasis on Climate Change
The League and NLC are urging Congress to support the full funding ($2 billion per year 2008-
2012) of the EECBG program authorized in H.R. 6, the Energy Independence and Security Act of
2007.
For additional information on H.R. 6 please see the Feb. 29 issue of Priority Focus at
www.cacities.org/priorityfocus.
In California, the League is sponsoring AB 2176 (Caballero) to aid in the distribution of federal
funds to non-entitlement cities and counties through the EECBG program. This legislation would
establish a mechanism through which funds received by the state would then be passed on to
smaller cities (population under 35,000) and counties (populations under 200,000).
The California Congressional Delegation hosted a roundtable on energy. With supporting green
and sustainable cities a 2008 League priority, the roundtable provided an important venue for 7
California city officials to speak with their representatives about what the federal government is
doing to support GHG reduction.
Representatives David Dreier (R-26th), Lois Capps (D-23rd), Jane Harman (D-36th), Ken Calvert
(R-44th), Elton Gallegly (R-24th) and Mary Bono Mack (R-45th) participated in the roundtable. The
event closed with briefings by Greg Dotson, chief environmental council of the House Oversight
and Reform Committee and Steven Chalk, deputy assistant secretary for renewable energy in the
Office of Technology Development Energy Efficiency and Renewable Energy.
Next Step
The League will continue to work with NLC and through the efforts of its Washington, D.C. office to
continue to advance these and other legislative priorities as well as respond to federal legislation
impacting cities.
Visit www.cacities.org/federalresources for more information about the League’s federal work.
_____________________________________________________________________________
More Cities Receive Prop. 1B Local Street and Road Funds
The Department of Finance (DOF) announced this week that an additional 104 cities will receive
their FY 2007-08 Proposition 1B Local Street and Road funds on Friday, March 14. The first 46
cities received their Prop. 1B funds on Feb. 15. A total of 150 of California’s 478 cities have now
received their allocation for this fiscal year for a total of $154 million of the $550 million
appropriated for cities in FY 2007-08.
A city-by-city list of released funds can be found on the League’s Web site at
www.cacities.org/infrastructure.
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Relief for Cities Affected by the Spike in Variable Rate Interest Costs
Many cities have recently seen interest on their variable rate debt jump significantly from the recent
turmoil in the credit market. California Communities offers immediate relief through its new Liquidity
Notes program for auction rate securities and variable rate demand obligations (ARS/VRDO).
California Communities is the financing authority co-sponsored by the League and the California
State Association of Counties (CSAC). The Liquidity Notes program provides assistance to issuers
affected by the current volatile markets for ARS/VRDOs and the resulting rate increases. This
program is exclusively for cities, counties, and special districts in California.
Goals of the Liquidity Notes Program
• Speed – liquidity notes can be issued within a matter of weeks
• Availability – open to a wide variety of issuers and types of issues
• Simplicity – minimal time and effort on the part of issuers to participate
• Low cost – provides substantial reduction in interest costs for at least one year
What is the Liquidity Notes Program?
• A financing program developed by Orrick, Herrington & Sutcliffe LLP and sponsored by
California Communities to provide immediate relief to local agency budgets caused by
bond insurer downgrades and the resulting failures in the ARS/VRDOs markets;
• Provides a temporary solution affording time for local agencies to undertake refundings,
restructurings and/or remarketings of their outstanding ARS/VRDOs in a more reasonable
time frame and a more orderly fashion;
• Does not displace the local agency’s existing team of underwriters, financial advisors or
bond counsel; 8
• Designed to keep existing bond insurance policies in place to preserve potential future
value of bond insurance premiums already paid; and
• Local agency participants would trigger mandatory tender of their bonds for purchase by
California Communities via notice to their bondholders of interest rate mode change to an
approximately one-year fixed-term interest rate.
Program Advisors
California Communities has assembled a team of firms that are leaders in California public finance.
Bond and Disclosure Counsel: Orrick Herrington & Sutcliffe LLP
Financial Advisor: Public Financial Management, Inc.
Underwriters (in alphabetical order): Goldman Sachs, Merrill Lynch, and Morgan Stanley
Additional Information
City officials interested in participating in the Liquidity Note program should visit California
Communities online at www.cacommunities.org.
Please contact James Hamill, Program Manager, at (925) 933-9229, ext. 216 with further
questions.
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California Communities Offers Cities Short Term Cash Flow Financing
Economic realities are driving cities to seek solutions to cash flow problems. The California
Communities TRAN (Tax and Revenue Anticipation Note) program provides an easy and cost
effective way for local governments to access the capital markets by providing funds for short term
cash flow deficits that occur due to the normal timing difference of cash receipts and cash
disbursements.
Program Accomplishments
• Over $7 billion in funds have been provided to more than 150 local governments since
1993; and
• Borrowings have ranged in size from $100 thousand to $320 million.
There is no cost to enroll in TRAN. The enrollment form can be found on the California Statewide
Communities Development Authority Web site at www.cacommunities.org.
The California Communities Web site (www.cacommunities.org) has information for city officials
interested in TRAN or other programs and services designed to benefit local governments.
For more information on TRAN, contact Terrence Murphy of California Communities at (925) 933-
9229, ext. 223.
California Communities is co-sponsored by the League and CSAC.
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