June 24, 2005
Issue #25-2005
WANT MORE DET AILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
Of the U.S. Supreme Court’s three takings cases this year, Kelo v. City of
New London received a significant amount of media coverage. It had all the
elements of a good press story. On one hand, an economically “distressed
municipality” was struggling to offset the loss of a military base and 1,500
jobs. On the other, sympathetic owners were being forced to sell their life
long homes in the name of progress. For more, see Page 8.
U.S. SUPREME COURT UPHOLDS CONDEMNATION FOR
ECONOMIC DEVELOPMENT
Sometimes, common sense prevails.
Such was the case when the U.S. Supreme Court affirmed that property
owners do not get a “second bite at the apple” by bringing a takings claim in
federal court after the case has already been decided in state court. For more,
see Page 4.
COURT AFFIRMS STANDARD PRACTICES IN
PROPERTY RIGHTS LITIGATION
With a deadline of June 30 looming on the latest Transportation Equity Act
for the 21st Century (TEA-21) extension, news reports late in the evening on
Thursday, June 23, indicated that lawmakers reached an agreement on a final
spending figure for a multi-year authorization bill for renewing the 1998 TEA-
21 bill. For more, see Page 7.
TEA-21 REAUTHORIZATION CONFERENCE REPORTEDLY REACH
AGREEMENT ON FUNDING TOTAL
MAYORS AND COUNCIL MEMBERS LEADERSHIP WORKSHOPS
• MAYORS AND COUNCIL MEMBERS EXECUTIVE FORUM, JULY 27- 29
STATE SUPREME COURT DENIES REVIEW
• LAWSUIT CHALLENGING PARCEL TAX TOSSED
GOVERNOR SIGNS NEW INDIAN GAMING AGREEMENTS
LEGISLATIVE BILL SUMMARIES
Page 4
Page 2
Page 3
Page 5Visit the League’s Official Website--www.cacities.org
PAGE 2/PRIORITY FOCUS
If your city had a natural disaster or terrorist
attack, what are the first three steps you would
take? “Elected Officials’ Role in Providing Home-
land Security” is one of the five workshops follow-
ing the Mayors and Council Members Academy
Executive Forum in Monterey. The description is
below:
If a terrorist attack, natural disaster, or other
emergency struck your city, what actions would
you take? Who would you communicate with and
how? What would you tell the public through the
media? How would you interact with other respon-
sible agencies such as the FBI and OES? These
are important issues that face elected officials.
Strategic planning is necessary to ensure our
communities are prepared and equipped to handle
homeland security concerns. Learn answers to
these questions and much more in this unique
workshop designed by homeland security experts
who understand the needs of cities because they
are also city elected officials.
For registration information, please visit
www.cacities.org/events. Each workshop is five to
six hours spread over Friday afternoon and Satur-
day morning, July 29-30.
REGISTER NOW!
MAYORS AND COUNCIL MEMBERS
ACADEMY ADVANCED
LEADERSHIP WORKSHOPS
This year’s Mayors and Council Members
Executive Forum promises to deliver the latest
developments in your field and leave you with
ideas that you can implement in your city.
There are numerous sessions that will provide
elected officials with fresh insights and information
– extremely useful in meeting the challenges of
California’s rapid changes and tight local budgets.
This year’s conference theme is maintaining the
political power of cities. In keeping with the goals
of the League of California Cities board of direc-
tors, sessions will address housing, infrastructure,
economic development and redevelopment. Many
other sessions target timely topics such as land
use planning, how to increase city finances,
telecommunication regulations and much more.
A full daily breakfast buffet will increase your
energy level for days packed with exciting ses-
sions and events. Discussion groups, briefings,
and presentations will enhance your knowledge,
and allow you to network with your fellow elected
officials. Enjoy a beach party reception dinner
with live music, palm trees, roaring bonfire, ping-
pong, and other entertainment.
Don’t miss this event to acquire new skills,
learn about key city issues, and exchange innova-
tive ideas all in the relaxed atmosphere of the
Monterey Peninsula.
Register before July 15 and receive a coupon
worth $25 redeemable at CityBooks.
To register for the conference and view the
preliminary program, visit our web site at
www.cacities.org/events. For more information,
you may contact Paul Flint via e-mail at
pflint@cacities.org.
Restore and protect local control
for cities through education and
advocacy to enhance the quality of
life for all Californians.
League Mission
MAYORS AND COUNCIL MEMBERS
EXECUTIVE FORUM, JULY 27- 29
IN MONTEREY
REGISTER ONLINE!PRIORITY FOCUS/PAGE 3 Visit the League’s Official Website--www.cacities.org
On June 16, the state Supreme Court denied
review in Howard Jarvis Taxpayers Association v.
City of Fresno. The case involved a city of Fresno
ordinance that required each municipal utility to pay
into the city’s general fund a yearly fee “in lieu of
property and other taxes normally placed upon
private business.” In 2002, the city expected to
generate approximately $8.6 million from these in
lieu fees paid by the municipal utilities. The
amount paid by each utility was passed through to
its customers.
In January 2003, a lawsuit was filed against
Fresno, alleging that the in lieu fees were pre-
empted by state law and that they violated various
state constitutional provisions and statutes. The
Fifth District Court of Appeal agreed. In its deci-
sion, the court held that:
• Water, sewer and trash fees are subject to
Proposition 218;
• Proposition 218’s requirements have
applied to such fees since July 1, 1997, regardless
whether such fees have been “extended, imposed
or increased” since then; and
• Utility fees may include the cost of providing
municipal services to public utilities, such as the
cost of repairing streets impacted by wear and tear
of utility vehicle traffic.
By denying review, the decision by the Fifth
District Court of Appeal stands.
For more information on this case, please see
“Are Utility Fees Subject to Proposition 218?” by
Michael Colantuono in the May 2005 edition of
Western City.
STATE SUPREME COURT DENIES REVIEW
Several lawsuits are currently underway in
California that challenge parcel tax elections. On
June 17, a Santa Clara County judge dismissed
one such action. The lawsuit challenged the
election on the basis that it did not permit non-
resident property owners to vote on the parcel tax,
even though they would have to pay it.
The lawsuit was dismissed on the grounds that
the plaintiff failed to “properly publish papers in a
certain format and in a timely manner.” The judge
did not address the underlying merits of the case.
It is believed that a similar lawsuit filed against the
Mountain View-Whisman Elementary School
District will be dismissed on the same grounds.
The League is monitoring these various cases
and has filed a friend-of-the-court brief in an
appellate court case that raises similar issues. In
Neilsen v. City of California City, an out-of-town
property owner filed a lawsuit challenging a parcel
tax election that limited the voting electorate to
parties residing within the precincts in California
City. The brief was written on behalf of the League
by Michael Colantuono.
Western City magazine’s job opportunity
section is the source for job seekers looking
for positions in local government. According
to our reader survey, the job opportunity
section is the best read section of our
magazine!
When you place an ad in Western City
magazine, it will be posted at no additional
charge on our website, which receives over
80,000 hits per month.
Call to place your recruitment ad today!
We Have What You Need
(800) 262-1801 or visit our website at
www.westerncity.com
LOOKING FOR CALIFORNIA’S BEST TO
FILL A POSITION IN YOUR CITY?
LAWSUIT CHALLENGING PARCEL
TAX TOSSEDVisit the League’s Official Website--www.cacities.org
PAGE 4/PRIORITY FOCUS
Gov. Arnold Schwarzenegger recently
announced the completion of Indian gaming
agreements with the Quechan Tribe of the Fort
Yuma Indian Reservation and the Yurok Tribe.
The governor ascertains that the agreements
provide a fair contribution of revenues to the
state, provide protections to patrons and employ-
ees, and ensure that local communities will be
protected and receive compensation to mitigate
off-reservation and environmental impacts.
The Yurok and Quechan tribes are two of the
largest tribes in the California, and the compacts
authorize a single casino each at a single loca-
tion on their reservations in Del Norte and Impe-
rial County, respectively (the 1999 compacts
afforded each tribe the right to two casinos).
The Yurok Tribe anticipates that its facility will
generate $7 million annually in net win from the
operation of its slot machines, and the Quechan
Tribe anticipates that its new facility will generate
around $59 million annually.
According to a press release from the
governor’s office, in each case, the tribes will
provide a revenue contribution to the state based
on a percentage of their net win from the opera-
tion of their slot machines, based on a sliding
scale starting at 10 percent. The two compacts
are anticipated to provide the state with approxi-
mately $7 million in revenue per year.
In addition, the tribes have agreed to enter
into intergovernmental agreements with their
local communities to mitigate impacts on infra-
structure, the environment, fire protection, law
enforcement, public safety, gambling addiction,
and emergency medical services.
The compacts must now be ratified by the
State Legislature and then approved by the U.S.
Department of the Interior.
Click here for details of the recently signed
compacts.
GOVERNOR SIGNS NEW INDIAN
GAMING AGREEMENTS
The case involved a challenge to San
Francisco’s hotel conversion fee. The San Remo
Hotel (San Remo) claimed that the fee amounted a
taking. At issue before the U.S. Supreme Court,
however, was the extent to which a takings claim
could be heard in federal court after a state court
had already reached a final decision on the claim.
The procedural history was complex. San
Remo first filed a claim in federal court. But the
federal court held that the state court was the
proper venue under the “Williamson County” rule,
which holds that compensation claims under the
Takings Clause should be brought in state court.
See Williamson County Regional Planning Comm’n
v. Hamilton Bank of Johnson City, 473 U.S. 172
(1985). San Remo, however, was allowed to
preserve its right to bring a subsequent claim in
federal court to the extent that such a claim was
different than what could be brought in state court.
Fast-forward a few years. San Remo pursued
its claim all the way to the California Supreme Court
and ultimately lost. Afterwards, San Remo re-filed a
claim in federal court that made the same argu-
ments already decided by the California Supreme
Court. San Francisco argued that there was no
difference between federal law and state law on the
takings issue, and thus San Remo should be
precluded from filing it claim in federal court.
The U.S. Supreme Court sided unanimously
with the City of San Francisco. Justice John Paul
Stevens, writing for the court, found that federal
courts cannot disregard the full faith and credit
statute, which prohibits the re-litigation of issues
resolved by courts of competent jurisdiction. Thus,
the federal court was precluded from hearing San
Remo’s claim because a fully competent state
court had already reached a determination.
The Supreme Court also upheld its long-stand-
ing Williamson County rule (as mentioned above,
that takings claims should be heard in state court).
Chief Justice Rehnquist, however, who had origi-
nally signed the Williamson County opinion 20
Continued on Page 7
SAN REMO from page 1Visit the League’s Official Website--www.cacities.org PRIORITY FOCUS/PAGE 5
Legislative Bill Action
The following are summaries of just a few of the legislative bills that are currently being acted upon
by the League of California Cities. For more information about these and other bills, please visit the
League website to access information about legislation, policy issues and related developments.
You can track information on bills (www.cacities.org/billsearch), locate legislators and legislative
committees, send letters to legislators or the media through the online Advocacy Center
(www.cacities.org/advocacycenter), research League policy positions, access useful related
links, and much more.
HOUSING AND LAND USE
SB 4 (Murray). The California Public Per-
formance Facilities Authority Act. SB 4 would
establish the California Public Performance Facili-
ties Authority (Authority) Act in state government to
be administered by a board of directors. The
Authority, among other powers and duties, would
have the ability to acquire, construct and operate a
sports facility, sell naming and sponsorship rights,
impose facility fees on tickets, and issue revenue
bonds for financing.
On June 21, the bill was heard in the Assembly
Arts, Entertainment, Sports, Tourism, and Internet
Media Committee. The League had previously
adopted a “Watch” position on SB 4 because of
concerns of how the bill will impact local land use
authority. During the committee hearing, the
League asked Senator Murray to take several
amendments that would address concerns about
local land use approval.
The requested amendments would clarify that
proposed facilities must receive all necessary land
use and other development approvals required by
the local government in which the proposed facility
would be located. Senator Murray also agreed to
remove a section of the bill that would give the
Authority the power of eminent domain to acquire
land. The League requests that cities and their
financial officers review the newly amended version
of SB 4 and give feedback on whether the
amended version could be a useful financing tool
for local governments. The author is soliciting
support from cities on this measure. Staff: Dan
Carrigg; Status: AsApps; Position: Review and
comment.
SB 575 (Torlakson) Housing Development
Projects. This bill would revise the conditions
under state Anti-NIMBY Law, upon which a disap-
proval or conditional approval of a housing devel-
opment project is based. The League had many
concerns with the introduced version of this bill, so
the author removed the most controversial items to
facilitate discussions. A working group of city
attorneys and housing advocates met for several
months and have been able to reach consensus on
a number of issues. The author has agreed to take
the working group’s amendments and place them
into the bill. Staff: Dan Carrigg; Status: AsmFlr;
Position: Neutral.
TRANSPORTATION
AB 1051 (Benoit and Umberg). Pocket
Bikes. Restrictions. AB 1051 requires a manu-
facturer of a two-wheeled motorized vehicle, com-
monly known as a “pocket bike,” to provide a
printed disclosure indicating prohibited uses of
pocket bikes. Additionally, AB 1051 authorizes a
peace officer to remove and seize a pocket bike
that is found to be operating in violation of this bill
for a minimum of 48 hours. AB 1051 improves
public safety on local streets and roads by requiring
notification to purchasers of the limited use of
pocket bikes. Staff: Liisa Lawson Stark; Status:
SenApps, Hrg. 6/27; Position: Support.
SB 275 (Torlakson) Transportation Needs
Assessment. SB 275 requires the California
Transportation Commission (CTC), working with the
Department of Transportation (DOT), regional
planning agencies, cities and counties to complete
a 10-year needs assessment of the state’s trans-
portation system.Visit the League’s Official Website -- www.cacities.org
PAGE 6/PRIORITY FOCUS
The proposed 10-year needs assessment is to
include the state highway system, local streets and
roads, rail programs, regional transit systems, as
well as high priority projects that anticipate traffic
reduction, and are economically and environmentally
beneficial to the state. In addition, the CTC, with the
help of involved entities, will submit actions and
estimates necessary for the DOT to complete the
projects in a timely and cost-effective manner.
In 1999, when the last needs assessment (SR-8)
was complete, the report demonstrated the need to
reinvest in, and fund, California’s existing transporta-
tion systems. With the continual population growth
and vehicle miles traveled in California, a new needs
assessment is necessary to evaluate where our
transportation infrastructure stands. Staff: Liisa
Lawson Stark; Status: AsTrans, Hrg. 6/27; Posi-
tion: Support.
PUBLIC SAFETY
AB 1507 (Pavley). Cardiac Health. Automatic
External Defibrillators. Health Studios. AB 1507
requires that health club facilities purchase and
install Automatic External Defibrillators (AEDs), as
well as train personnel in their use. Many private
health clubs are located within city limits, within
response areas of local fire departments. Placing
AEDs in health clubs is a good public safety mea-
sure that will allow increased chances of survival of a
cardiac arrest victim if use of an AED is available
prior to the arrival of emergency responders. Staff:
Liisa Lawson Stark; Status: SenJud, Hrg. 6/28;
Position: Support.
AB 669 (La Suer). Firefighter Training and
Standards. AB 669 creates the California
Firefighter Training Standards Task Force to develop
a system that puts in place a comprehensive, con-
tinuing training and education structure that meets
the needs of the disciplines within the fire service
profession. Many public entities provide education
and training to firefighters, including cities, counties,
special districts, community colleges and the state.
The California Firefighter Training Standards Task
Force will bring together these stakeholders to
develop coordinated training and education for the
fire service. Staff: Liisa Lawson Stark; Status:
SenGO, Hrg.6/28; Position: Support.
SB 719 (Romero). Police Vehicle Pursuits.
SB 719 narrows the available immunity for public
entities that employ peace officers when a third
party is injured or killed in a collision with a person
fleeing from peace officer pursuits. Such entities
are immune if they 1) have adopted and promul-
gated a policy for safe conduct of motor vehicle
pursuits that meet minimum state standards, and
2) provide regular and periodic training for their
officers regarding safe pursuits. Additionally, SB
719 increases criminal penalties for willfully fleeing
or attempting to evade police pursuit in a motor
vehicle.
The act of driving a motor vehicle in an at-
tempt to evade a peace officer is dangerous and
unnecessarily places the lives of peace officers
and other citizens at risk for injury or even death.
SB 719 is a good approach to help curb the
escalating danger of high-speed pursuits by
increasing peace officer training and providing
prison sentence enhancements to deter offenders
from attempting to flee law enforcement officers
and endangering lives. Staff: Liisa Lawson
Stark; Status: AsPubSfty, Hrg. 6/28, Position:
Support.
WANT TO SEND A LETTER IN SUPPORT
OF A LEAGUE POSITION? HERE’S WHO
TO CALL:
ASSEMBLY APPROPRIATIONS (18)—Chu
(Chair), Runner (Vice Chair), Bass, Berg,
Calderon, Emmerson, Gordon, Haynes, Karnette,
Klehs, Leno, Nakanishi, Nation, Oropeza, Ridley–
Thomas, Saldaña, Walters, and Yee. Room 2114.
Phone: (916) 319–2081.
ASSEMBLY PUBLIC SAFETY (7)—Leno
(Chair), La Suer (Vice Chair), Cohn, Dymally,
Goldberg, Ruskin, and Spitzer. 1020 N Street,
Room 111. Phone: (916) 319–3744.
ASSEMBLY TRANSPORTATION (13)—
Oropeza (Chair), Huff (Vice Chair), Bogh, Chan, S.
Legislative Bill ActionVisit the League’s Official Website -- www.cacities.org PRIORITY FOCUS/PAGE 7
Legislative Bill Action
Horton, Karnette, Liu, Mountjoy, Niello, Pavley,
Ridley–Thomas, Salinas, and Torrico. 1020 N
Street, Room 112. Phone: (916) 319–2093.
SENATE APPROPRIATIONS—(13)—Migden
(Chair), Aanestad (Vice–Chair), Alquist, Ashburn,
Battin, Bowen, Dutton, Escutia, Murray, Ortiz,
Poochigian, Speier, and Vacancy. Staff Director:
Anne Maitland. Deputy Director: Bob Franzoia.
Consultants: George Cate, Miriam Barcellona
Ingenito, Nora Lynn, Lisa Matocq and Maureen
Ortiz,. Assistant: Sally Ann Romo. Phone: (916)
445–3284. Room: 2206.
SENATE GOVERNMENTAL ORGANIZATION—
(11)—Florez (Chair), Denham (Vice–Chair), Battin,
Chesbro, Cox, Dunn, Margett, McClintock, Murray,
Soto, and Vincent. Consultants: Steve Hardy and
Arthur Terzakis. Assistant: Brenda K. Heiser. 1020 N
Street, Suite 584. Phone: (916) 445–1193.
SENATE JUDICIARY—(7)—Dunn (Chair),
Morrow (Vice–Chair), Ackerman, Cedillo, Escutia,
Figueroa, and Kuehl. Chief Counsel: Gene Wong.
Deputy Chief Counsel: Gloria Megino Ochoa.
Counsels: Alexandra Montgomery. Assistants: Carol
Thomas and Emily Crossland. Phone (916) 445–
5957. Room 2187.
years ago, filed a separate opinion suggesting rule
should be “reconsidered.” The fact that three other
justices joined him effectively creates an invitation
to challenge the rule. It only takes the vote of four
justices to place a case on the Supreme Court’s
calendar.
The League’s legal advocacy committee has
been involved the earlier stages of this case in
both state court and federal court. The National
League of Cities filed a brief on behalf of all cities
before the U.S. Supreme Court.
For a copy of the decision, see U.S. Supreme
Court’s website at www.supremecourtus.gov/
opinions/04slipopinion.html.
SAN REMO from page 4
TEA 21 from page 1
For more information on this and
other League issues, visit
www.cacities.org.
After 21 months of deadlock, it was reported
that House and Senate conferees have agreed on
$286.5 billion for multi-year highways, transit and
traffic safety legislation.
Both chambers of Congress successfully ap-
proved transportation legislation earlier this year,
but a lack of consensus over a reauthorization
spending total stalled conference negotiations for
weeks. A $295 billion Senate bill (S.732) cleared
in May was deemed too expensive by the White
House, which continues to back the House’s $284
billion spending measure (HR 3).
It is unclear if the Bush Administration would
accept a compromise figure, the deal would
represent a significant step forward for transporta-
tion conferees that have struggled with the overall
funding level dilemma for almost two years. Since
prior authorization law expired in 2003, several
short-term extensions have kept transportation
programs running while Congress continues work
on a final bill, which has been said, might occur
before the June 30
deadline next week.
Earlier this week, the California Delegation
sent a letter to the conferees outlining three
reauthorization priorities for California. They
include Minimum Guarantees, preservation of
urban transit formula in current law and adopting
House Congestion, Mitigation and Air Quality
(CMAQ) Improvement language.
Visit the League’s website for a copy of the
California Delegation letter to the Conferees.Visit the League’s Official Website -- www.cacities.org
PAGE 8/PRIORITY FOCUS
The case involved a development plan to
create 1,000 jobs, increase public revenues, and
generally revitalize an economically distressed
city. To implement the plan, New London pur-
chased most of the property earmarked for the
project from willing sellers, but initiated condem-
nation proceedings against those who refused to
sell.
In reviewing the legal issues, however, the
court upheld in a five-to-four decision the city’s
authority to condemn land for the purpose of
economic development. Specifically, court exam-
ined the scope of the “public use” requirement of
the Takings Clause, which provides that the power
of eminent domain (and the resulting just compen-
sation) may only be used for “public purposes.”
The owners had challenged the public nature
of the New London’s action because the ultimate
result was to turn the land over to a developer.
Thus, the owners argued, the action was effec-
tively “private” insofar that it ultimately resulted in
transferring ownership of the land from one private
part to another.
Justice Stevens, delivering the opinion of the
court, rejected this argument, noting that subse-
quent private ownership did not necessarily
negate the public purpose of the action. There is
no principled way of distinguishing economic
development from the other recognized public
purposes. Indeed, the city’s development plan
included many public elements, such as a marina,
parks, and a riverwalk.
Moreover, the court deferred to the city’s
determination that the overall objective of rejuve-
nating the downtown and waterfront was in itself a
sufficient public purpose to justify the condemna-
tion action.
The court concluded by noting that in “affirm-
ing the city’s authority to take petitioners’ proper-
ties, we do not minimize the hardship that con-
demnations may entail, notwithstanding the
payment of just compensation. We emphasize
that nothing in our opinion precludes any state
from placing further restrictions on its exercise of
the takings power..”
Finally, Justice Kennedy hinted that this ruling
might not be so broad as it first appears. Though
he joined the majority, he filed a concurring opinion
stating that in his mind there were limits to how
deferential the court would be to deferring to
legislative bodies on the issue of public purpose.
In such cases, he would entertain a higher level of
judicial scrutiny. When combined with the four
dissenting justices, there would seem to be a
majority of justices that would favor some limita-
tions to the rule affirmed by the court. But Justice
Kennedy did not provide any further clarification,
leaving that determination to another day.
For a copy of the decision, see U.S. Supreme
Court’s website at www.supremecourtus.gov/
opinions/04slipopinion.html.
KELO from page 1
Don’t miss this opportunity to get the
League’s most useful reference tool.
This comprehensive California directory
provides important contact information
for mayors, council members and city
department heads. The directory also
features the League’s staff directory,
League partners, affiliate organizations
and a wide variety of advertisers.
INFORMA TION YOU NEED, RIGHT AT
YOUR FINGERTIPS!
Purchase this publication on-line at
www.cacities.org/store or call 916-658-
8257 for an order form. City officials
price$30, non-city official price $65,
plus shipping & handling.
THE 2005
CITY HALL DIRECTORY
IS NOW A VAILABLE
July 1, 2005
Issue #26-2005
WANT MORE DET AILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
GREATER SAN DIEGO WINS 2005 REGIONAL STEWARDSHIP AWARD
• CANOGA PARK HONORED AS WINNER OF 2005 ALL-AMERICAN CITY AWARD
• WEST HOLLYWOOD RECEIVES CITY LIVABILITY AWARD
LEGISLATIVE BILL SUMMARIES
LEAGUE URGES COMMUNITY DEBATES
TELECOMMUNICATIONS ISSUES AFFECTING CITIES
Page 4
Page 3
Page 8
Page 9
As we go to print, there is a growing sense that a final agreement on the
budget (SB 77) may be close. For more, see Page 2.
At the urging of the League and other stakeholders with telecommunica-
tions interests, the Senate Energy, Utilities and Commerce Committee this
week voted to pass two telecommunications bills out of the committee, and
will work with Senate and Assembly leadership to establish an interim confer-
ence committee to develop compromise approaches on the telecommunica-
tions issues they raise. For more, see Page 8.
TELECOM DEBATE IN CALIFORNIA MOVES TO THE FALL
As reported last week, it was expected that Congress would pass the
Transportation Reauthorization bill. But on the evening of July 30, before
concluding business and adjourning for the July 4 recess, the House and
Senate passed another short-term extension of current highway and transit
law. This will give conferees time to negotiate and iron out the policy details of
a comprehensive reauthorization bill. For more, see Page 2.
CONGRESS PASSES 8
TH
EXTENSION FOR TRANSPORTATION
REAUTHORIZATION BILL
BUDGET DEAL NEAR?Visit the League’s Official Website--www.cacities.org
PAGE 2/PRIORITY FOCUS
TEA 21 from page 1
The new extension’s deadline is set for July
19, giving House and Senate members less than
two weeks to complete a final bill when they return
from recess on July 11.
While conferees are close to reaching an
agreement on the overall spending level of $286.5
billion, they are still seeking consensus on an
acceptable minimum guarantee threshold and
other policy considerations. Conferees have also
yet to agree on the following an adequate high-
ways-transit split, which was an 80-20 percent
split in the original TEA-21 law.
Additionally, the Bush administration has not
signaled its approval for the compromise-spend-
ing total, the administration stated earlier this year
that it would not sign a bill that was in excess of
$284 billion.
We will keep you posted as the conferees take
up this issue again later this month
The Senate convened today, but recessed
until noon on Sunday, July 3. Assembly Speaker
Fabian Nunez sent Assemblymembers home, but
has scheduled them for check-in sessions
throughout the weekend.
Yesterday Gov. Schwarzenegger convened a
meeting of the “Big Five”-Senate Pro Tem Don
Perata, Senate Minority Leader Dick Ackerman,
Assembly Speaker Fabian Nunez and Assembly
Minority Leader Kevin McCarthy. Following their
discussions, the Senate called a surprise session,
as Democratic senators pushed to try to pass a
budget that met the June 30 constitutional dead-
line for budget adoption.
While the effort was unsuccessful, there
appeared to be more open acknowledgement by
both sides that each has worked hard to try and
meet the deadline. Both the Republicans and
Democrats suggested they had made conces-
sions on specific budget items since the June 15
failed vote on the budget. Republicans continued
to express concerns over what they assert is a $2
billion out-year budget deficit increase in the
conference committee budget proposal, over the
governor’s May revision proposal. Democrats
assert that they are really only $400 to $500
million.
There appeared to be a sentiment by both
sides that the Senate will likely pass the budget
before the Assembly, and possibly by next week.
Senate President Pro Tem Perata announced that
Senate leadership had rescinded a prior agree-
ment that there would be a suspension of Senate
committee hearings until after the budget is
passed, and that the Senate will resume commit-
tee hearings the week after next. This could well
be a signal that the Senate plans to push for
passage quickly of a final budget agreement.
Please watch the League website for budget
updates. If a deal emerges, we will work to obtain
as much information as we can and post the
information on the website.
BUDGET from page 1
Western City magazine’s job opportunity
section is the source for job seekers looking
for positions in local government. According
to our reader survey, the job opportunity
section is the best read section of our
magazine!
When you place an ad in Western City
magazine, it will be posted at no additional
charge on our website, which receives over
80,000 hits per month.
Call to place your recruitment ad today!
We Have What You Need
(800) 262-1801 or visit our website at
www.westerncity.com
LOOKING FOR CALIFORNIA’S BEST TO
FILL A POSITION IN YOUR CITY?PRIORITY FOCUS/PAGE 3 Visit the League’s Official Website--www.cacities.org
The Greater San Diego’s Partnership for the
New Economy has won a 2005 Regional Steward-
ship Award from the Alliance for Regional Steward-
ship (ARS), a national, peer-to-peer network of
regional stewards that share experiences and
working collaboratively on innovative approaches to
common regional challenges.
These annual awards recognize the innovative
work of regional alliances and organizations that
have demonstrated progress in all four elements of
ARS’ Principles for Regional Stewardship (collabo-
rative governance, innovative economy, livable
communities, and social inclusion) and have
achieved tangible results, increased regional
capacity, and shown the potential for sustainability.
The San Diego Partnership for the New
Economy is a collaborative group made up of
public officials, economic developers, educational
institutions, and industry associations. Through
forums and dialogue, the Partnership identified a
number of key issues facing the San Diego region,
including transit options, affordable housing, fiscal
reform, economic prosperity, and educational
opportunities.
For additional information on the award program
and the 2005 winners, visit
www.regionalstewardship.org/awards/.
GREATER SAN DIEGO WINS 2005
REGIONAL STEWARDSHIP AWARD
The National Civic League (NCL) recently
announced the winners of the 2005 All-American
City Awards. Canoga Park, Calif., was one of the 10
cities honored in this year’s competition.
The All-America City Award encourages and
recognizes civic excellence, and honors communi-
ties where citizens, the government, businesses and
non-profit organizations demonstrate successful
resolution of critical issues. Since 1949, more than
4,000 cities have competed with approximately 500
earning the prestigious designation as an All-
America City.
The cities of Lincoln and Modesto were also
among the 30 finalists in the 2005 competition. The
League congratulates all three California cities on
their achievements.
For more information on the program and this year’s
winners, visit http://ncl.org/aac/index.html.
CANOGA PARK HONORED AS WINNER OF
2005 ALL-AMERICAN CITY AWARD
On June 11, the United States Conference of
Mayors announced the 2005 City Livability
Awards. John J. Duran, mayor of West Hollywood,
Calif., was the sole recipient in the state of Califor-
nia, and received Honorable Mention in the cat-
egory of cities with populations less than 100,000.
The awards recognize and honor mayors for
exemplary leadership in developing and imple-
menting programs that improve the quality of life in
American’s cities. An independent panel of
judges, selected by the U.S. Conference of May-
ors, determined the winning mayors from a pool of
151 applicants based on three criteria: mayoral
leadership, creativity and innovation, and broad
impact on the quality of life for residents.
The League congratulates Mayor Duran on his
achievement. For more information on the 2005
awards, visit http://usmayors.org/
73rdAnnualMeeting/citylivability_061105.pdf.
WEST HOLLYWOOD MAYOR RECEIVES
HONORABLE MENTION IN 2005 CITY
LIVABILITY AWARDS
Plan now to attend the 2005 Annual
Conference this fall - the first time it has
been in San Francisco since 1997.
Make you reservations through our
online system at www.cacities.org/ac.
2005 ANNUAL CONFERENCE:
OCTOBER 6-8, MOSCONE WEST
CONVENTION CENTERVisit the League’s Official Website--www.cacities.org
PAGE 4/PRIORITY FOCUS
Legislative Bill Action
The following are summaries of just a few of the legislative bills that are currently being acted upon
by the League of California Cities. For more information about these and other bills, please visit
the League website to access information about legislation, policy issues and related develop-
ments. You can track information on bills (www.cacities.org/billsearch), locate legislators and
legislative committees, send letters to legislators or the media through the online Advocacy Center
(www.cacities.org/advocacycenter), research League policy positions, access useful related
links, and much more.
HOUSING AND LAND USE
AB 1335 (Vargas) Business Improvement
Districts: This bill makes a number of changes
to laws affecting the formation and terms affect-
ing Business Improvement Districts. The
League worked extensively with the author’s
staff to address technical issues with prior
versions of this legislation, and sent a letter of
support on the June 8, version of the bill. On
June 27 and 29, however, the bill was amended
to make significant changes. Key among these
changes is an amendment that reduces the
initial petition threshold for business owners from
50 to 30 percent. While a lower initial threshold
may seem appealing to some, it can also be
maintained that a significant level of business
support is necessary to maintain a viable district.
Given these recent changes, the League has
notified the author that it is removing its prior
support position because we have not received
sufficient policy direction from our membership
as to the advisability of the recent changes.
Cities affected by this bill should carefully review
the recent changes to this legislation. Staff:
Daniel Carrigg; Status: SenLG, Hrg. 7/6;
Position: Review and Comment.
SB 135 (Kehoe) Community Service
Districts. This legislation contains a compre-
hensive update of statutes relating to community
services districts, based upon the work of a task
force hosted by the Senate Local Government
Committee. Although the bill enjoys broad
support because many of its provisions are
helpful and non-controversial, the League re-
cently adopted an Oppose, Unless Amended
position based upon the effect of a provision of
legislation that partially erodes city authority versus
the role of local agency formation commissions and
community services districts.
The issue raised by the League focused on a
change the bill makes to the permitted exercise of
“latent powers” by a district that operates within an
existing city. Under existing law, Section 61601
Government Code, a district may only exercise a
latent power not listed in its original documents of
formation with the approval of the voters and the
Local Agency Formation Commission (LAFCO).
This bill removes the voter approval requirement,
and requires only LAFCO to approve. Further, this
bill lists 31 separate latent powers that a community
services district may exercise in the future with
simple LAFCO approval. While LAFCO may be the
appropriate body to consider service delivery
outside the boundaries of incorporated cities, this
bill – which is presented as a statutory clean-up
vehicle – should not be permitted to weaken protec-
tion for city authority inside a city’s boundaries.
While an amendment was taken to ensure that
LAFCO could not approve duplicate services, the
League requested that this measure be further
amended to ensure that if a community services
district proposes to expand a new service or exer-
cise a new power to an area within a city’s borders,
the affected city can veto the expansion by object-
ing to it in writing with the appropriate LAFCO if the
power or service duplicates one the city intends to
provide or desires to reserve its right to provide.Visit the League’s Official Website--www.cacities.org PRIORITY FOCUS/PAGE 5
Legislative Bill Action
The League’s request for an amendment was
not approved by the Assembly Local Government
Committee. Staff: Daniel Carrigg; Status:
AsApps; Position: Oppose Unless Amended.
ENVIRONMENTAL
SB 1059 (Escutia). Transmission Corridor
Zones. Local Preemption. SB 1059 is a two-
year bill and as such it is dead for the year! Spon-
sored by the Administration, this measure would
authorize the California Energy Commission to
designate “transmission corridor zones” (TCZs)
and require local governments to amend their
general plans to reflect any TCZ within their
boundaries. While the League agrees with the
need to do better long range planning for future
transmission line needs, the process included in
SB 1059 is severely flawed, to say the least.
The coalition of local governments opposed to
SB 1059, led by the League, the California State
Association of Counties (CSAC) and the Regional
Council of Rural Counties (RCRC), were recently
joined by a growing number of private business,
landowner and developer groups, who either
officially opposed the bill or expressed strong
reservations about its provisions. Given this
growing level of opposition, the author and Admin-
istration decided to make SB 1059 a two-year bill.
Discussions will take place during the fall to try
to find a workable compromise that will promote
better long range planning without the problems
associated with the current version of SB 1059.
Thanks to cities that responded to the League’s
requests to send letter of opposition. Staff:
Yvonne Hunter; Status: AsRules, two-year bill;
Position: Oppose unless amended.
ACA 13 (Harman). Storm Water and Flood
Control Fees. Proposition 218. ACA 13, which
is sponsored by the Administration and strongly
supported by the League, would add storm water
and flood control fees to those types of fees that
currently are exempt from the voter approval
requirements of Proposition 218. The bill is part of
the Administration’s legislative package to address
flood control issues, which also includes AB 1665
(Laird).
As a Constitutional amendment, ACA 13 faces
the daunting task of securing a two-thirds vote on
the Assembly Floor – and at this time, it is clear
that in its current form, that is not possible. Thus,
the League has been told by representatives of the
Administration that ACA 13 will not move ahead in
its current form this year and most likely is a two-
year bill.
The negotiations on AB 1665, while ongoing
and productive, appear to have stalled. The newly
amended version of the bill now in print soon will
form the basis of continued negotiations. It is
unclear whether they have stalled temporarily or
permanently this year. The League has no posi-
tion on AB 1665, but has been participating in the
stakeholder meetings. It appears at this time that
AB 1665 is a two-year bill as well.
We’ll keep you posted as events unfold. Staff:
Yvonne Hunter; Status: AsLG; Position:
Support.
SB 861 (Speier). Dangerous and Vicious
Dogs. Local Regulation. As amended last week,
SB 861 would authorize local governments to
enact regulations related to dangerous and vicious
dogs that are specific to individual breeds, pro-
vided that the local regulations do not constitute a
ban on the breed. Additional amendments
adopted by the author this week in the Assembly
Local Government Committee would narrow the
types of local agency regulation to breed-specific
requirements for neutering and spaying, and
breeding restrictions. The bill returns to local
governments some limited regulatory authority
that was lost in the late 1980s when legislation
banned any type of breed-specific local ordi-
nances.
SB 861 is in response to a number of tragic
situations in which Pit Bulls and other large dogsVisit the League’s Official Website -- www.cacities.org
PAGE 6/PRIORITY FOCUS
Legislative Bill Action
have attacked and injured or killed children and
adults. As a result, the City of San Francisco
recently evaluated what steps could be taken by
local governments to prevent canine-related inju-
ries. The report prepared by the city’s animal
control department recommends a number of
sensible and proactive regulatory steps that local
governments could enact for individual breeds, if
existing law is changed to provide that such autho-
rization. SB 861 reflects several of the recommen-
dations included in the report. A copy of the San
Francisco report is posted on the League’s website
under the information included on SB 861.
The issue of animal control and local regulation
of dogs is one that generates considerable passion
in the Legislature. The League supports SB 861 as
a way to give local governments additional tools
and flexibility to appropriately regulate dangerous
and vicious dogs within their communities in order
to protect their residents. In its amended form, it
passed the Assembly Local Government Commit-
tee this week and will be heard next on the Assem-
bly Floor. Staff: Yvonne Hunter; Status:
AsmFlr; Position: Support.
SB 655 (Ortiz). Naturally Occurring Asbes-
tos. SB 655 (Ortiz) proposes a series of steps to
identify the locations of and mitigate the exposure
impacts of naturally occurring asbestos. While
most of us know about the potential problems from
asbestos in buildings, a newly emerging health
problem and potential hazard if not mitigated
properly is naturally occurring asbestos
As currently drafted, SB 655 has a number of
problems and is not workable. However, the author
has worked with the League and others to identify
conceptual amendments to her bill that would
improve the mapping of areas where naturally
occurring asbestos is located, best management
practices that can be used to mitigate the impacts
of the asbestos during construction projects, and
property owner notification. The bill is the classic
“work in progress.” The author has committed to
continue to work with the League and others in an
attempt to resolve several of the bill’s problems.
Given those commitments, SB 655 passed both
the Assembly Environmental Safety and Toxic
Materials and Local Government Committees
this week. We’ll keep you posted. Staff:
Yvonne Hunter; Status: AsApps; Position:
Watch.
SB 412 (Figueroa). Massage Therapists.
State and Local Regulation. Don’t let the
current version of SB 412 rub you the wrong
way! SB 412 is the latest legislative attempt in
the last few years to enact professional stan-
dards for the massage therapy industry. This is
being done as a way of distinguishing legitimate
massage therapy businesses from those activi-
ties that are, in reality, part of the more shady
side of our society.
In its recently amended form, SB 412 in-
cludes local agency preemption. The League
has been in close contact with the bill’s support-
ers and author’s office about the need to modify
the preemption provisions of the bill. While we do
not object to local preemption related to profes-
sional standards, the League has emphasized
that local agencies need to retain the right to
regulate land use, impose business license fees
and continue local inspections and enforcement
of massage therapy businesses. We are confi-
dent that agreement can be reached regarding
the preemption provisions of SB 412. Without
this agreement, we know that cities will be bent
out of shape over the preemption provisions of
the bill.
The bill passed the Assembly Business and
Professions Committee this week. Staff:
Yvonne Hunter; Status: AsApps; Position:
Watch.
PUBLIC SAFETY
SB 148 (Scott). Alcoholic Beverages.
Licensing Restrictions. SB 148 authorizes a
city or county to amortize, terminate or impose
conditions on liquor stores not currently subject
to local regulation. Under current law, cities or
counties can only enforce zoning ordinances thatVisit the League’s Official Website -- www.cacities.org PRIORITY FOCUS/PAGE 7
were present when a licensee obtained a license
for alcohol sales and does not give cities the ability
to change the law and enforce it. SB 148 requires
retail liquor sales licensees issued a Type 20 or
Type 21 off-sale retail license, to comply with
zoning regulations which a city or county adopts
after a licensee obtains a liquor license.
SB 148 would assist cities and counties
throughout California in addressing repeated
public safety problems often associated with
nuisance liquor stores such as vandalism, littering,
loitering, graffiti, excessive loud noises, public
drunkenness and lewd conduct. Staff: Liisa
Lawson Stark; Status: AsGO, Hrg. June 8;
Position: Support.
AB 1329 (Wolk) Design Build Contracting:
Cities. AB 1329 permits cities residing in the Yolo
and Solano Counties to enter into design-build
contracts until January 1, 2011, subject to the
conditions and requirements currently applicable
to design-build contracts in Alameda, Contra
Costa, Sacramento, Santa Clara, Solano,
Sonoma, and Tulare Counties. AB 1329 would
limit city design-build contracting to projects for the
erection of structures, but excludes from entering
into design-build contracts for the construction of
roads, bridges, and other transit and non-transit
infrastructure. The League supports allowing
design-build contracting as an option to cities.
Staff: Liisa Lawson Stark, Status: Hearing
Date: Senate Local Gov. 7/6, Position: Sup-
port
WANT TO SEND A LETTER IN SUPPORT
OF A LEAGUE POSITION?
HERE’S WHO TO CALL:
ASSEMBLY APPROPRIATIONS (18)—Chu
(Chair), Runner (Vice Chair), Bass, Berg,
Calderon, Emmerson, Gordon, Haynes, Karnette,
Klehs, Leno, Nakanishi, Nation, Oropeza, Ridley–
Thomas, Saldaña, Walters, and Yee. Room 2114.
Phone: (916) 319–2081.
ASSEMBLY GOVERNMENTAL ORGANIZA-
TION (15)—J. Horton (Chair), Plescia (Vice
Chair), Aghazarian, Bermúdez, Calderon, Chavez,
Coto, Garcia, La Suer, Levine, Liu, Mountjoy,
Negrete McLeod, Torrico, and Yee. 1020 N Street,
Room 156. Phone: (916) 319–2531.
ASSEMBLY LOCAL GOVERNMENT (7)—
Salinas (Chair), Emmerson (Vice Chair), De La
Torre, Houston, Lieber, Nation, and Wolk. 1020 N
Street, Room 157. Phone: (916) 319–3958.
ASSEMBLY RULES (8)—Montañez (Chair),
Cogdill (Vice–Chair), Baca, Benoit, Coto, Dymally,
Karnette, and Villines (Alternates: 2 vacancies).
Chief Administrative Officer: Jonathon Waldie.
Secretary: Anna McCabe. Room 3016. Phone:
(916) 319–2800.
SENATE LOCAL GOVERNMENT—(7)—
Kehoe (Chair), Cox (Vice–Chair), Ackerman,
Machado, McClintock, Soto, and Torlakson.
Consultants: Peter Detwiler and Jennifer
Swenson. Assistant: Elvia Diaz. Phone: (916)
445–9748. Room: 410.
Legislative Bill Action
Stay Up-To-Date on Bills That
May Impact Your City
www.cacities.org/billsearch
Become a regular user of the League’s online
Legislative Tracking System. The League’s
website is your gateway to all the information
you need: bills sorted by subject areas, show-
ing the bill history, current status, committee
analyses, votes, and much more. You can
even view League letters of support or opposi-
tion, and access the League lobbyist working
on the bill.Visit the League’s Official Website -- www.cacities.org
PAGE 8/PRIORITY FOCUS
The bills addressed by the senate committee
were AB 1547 (Levine) and AB 1735 (De la Torre).
A third bill, SB 909 (Escutia) is being held in the
Assembly Utilities and Commerce Committee.
The bills in the senate committee raise the
issue of whether non-cable television companies
(telephone companies and energy companies)
should be exempted from local franchising author-
ity. While we were prepared for a debate on the
issue, led by Chairperson Martha Escutia the
committee voted unanimously to gut the afore-
mentioned bills and send them to a conference
committee, with interim hearings to be held in the
fall (between sessions). Some of chair’s com-
ments are paraphrased as follows:
• I am looking for a big push for conference
committee language for all three bills
• I am damn serious about the process
being fair.
• I would like to take the conference commit-
tee throughout the state, i.e. San Francisco,
Fresno and Los Angeles. etc. This will guarantee
that we receive input from throughout the state.
• This is not a show-and-tell-type of exercise
— unlike other conference committees.
• I want to come back in January with
language that all stakeholders have bought into,
and to forward to two to three bills via the legisla-
tive process.
Conference Committee Urged
Senator Escutia said she will seek approval
from Senate Pro Tem Don Perata to form the
conference committee and request that he serve
as a co-chair. She also encouraged Assembly-
man Levine to follow the same approach with
Speaker Fabian Nunez. With both Escutia and
Levine requesting the creation of the conference
committee, and the co-chair participation by their
respective leaders, the leaders are likely to ap-
prove the request.
Contrary to an earlier report, the conference
committee has not been officially approved by
either house leadership.
Many things can happen in a conference
committee. Both Escutia and Senator Deborah
Bowen, a member of the Energy, Utilities and
Commerce Committee, intend for the conference
committee to be substantive.
The cable television industry supports the
creation of conference committee, as does the
League. However, other groups apparently do not
favor a conference committee and may approach
legislative leadership trying to convince them to
push ahead this session with more narrow legisla-
tion to address their industry-specific problems.
Levine Discussions Ongoing
The Assembly Utilities and Commerce Com-
mittee Chairperson, Assemblymember Levine, is
holding weekly meetings with stakeholders in an
attempt to develop a comprehensive regulatory
scheme the communications industry in California.
The assemblymember apparently plans to con-
tinue to hold the weekly meetings to gather further
input (see “Telecommunications Issues Affecting
Cities”).
While these discussions are ongoing, the
League strongly urges cities to begin the debate
locally about how emerging telecommunications
issues should be addressed at the local level (see
“League Urges Community Debates”). In the
meantime, we will keep you informed as this issue
develops and a clearer agenda emerges.
LEAGUE URGES COMMUNITY DEBATES
The issue of a new regulatory scheme for the
communications industry, video, data and voice,
will be an extremely important issue for local
governments over at least the next two years. If a
discussion over these issues has not taken place
in your community, we highly encourage cities to
plan to hold such a debate. Communities that are
TELECOM from page 1
Continued on Page 9 www.cacities.org -- Visit the League’s Official Website PRIORITY FOCUS/PAGE 9
prepared for this “new regulatory world” will do
much better in shaping these services in their
communities. Those communities that are unpre-
pared will have these services shaped entirely by
the industry and industry will not be concerned
with the larger public policy issues in the deploy-
ment of a communications infrastructure (see
“Telecommunications Issues Affecting Cities”).
We urge that cities move now to address
these issues locally, while this debate continues at
the state level. Plan to participate in the statewide
meetings that will likely take place in conjunction
with the work of the Legislature. To view an issue
paper on the telecommunications issues, please
visit the Transportation, Communications and
Public Works section of the League’s website at
www.cacities.org/tcpw.
TELECOMMUNICATIONS ISSUES
AFFECTING CITIES
o State Parameters for Local Franchises.
One of the communications industry concerns
can be described in general as “uniformity.” The
argument is that the more “uniform” the franchise
process is, the better it is for industry. It is a point
that is consistent with the industry goal of “speed
to market.” The contention is that the faster the
industry gets to market the more “sound” the
industry business plan. This issue has both pros
and cons from a local government perspective. It
runs the potential of being preemptory of local
authority over the local franchise process. On the
other hand, it may speed negotiations, which can
easily become prolonged, on certain regulatory
issues. As with any legislation, the details are
important in how this issue develops.
o Local Franchise Fees. Local govern-
ments can currently collect a franchise fee from
most utilities. It is a substantial amount of money
on a statewide basis. Industry is raising the same
“uniformity” issues when it comes to fees. The
argument is that it would be easier to collect a fee
at the state level and remit it back to local govern-
ment. Local governments have not had a good
experience with state collected and remitted fees/
taxes (remember vehicle license fees (VLF)?). Is
there a compromise position on this issue? Will a
franchise fee or some other fee apply to what are
now the traditional telephone companies?
o Utility User Taxes. In an attempt to
achieve this industry concern for “uniformity,”
there is interest in trying to lump franchise
issues with utility user tax (UUT) issues.
Among the problems with this concept is that a
franchise fee is just that – a “fee” with a nexus to
the public right-of-way. Utilities pay these fees for
the privilege of putting down their infrastructure in
the public’s right-of-way. On the other hand, a UUT
is just that – a “tax” and is enacted by a city to pay
for general fund services such as police and fire.
Combining a tax and a fee is at best wrong, and
presents numerous questions as to communities
that have these two revenue sources may be held
harmless. Approximately 150 local agencies have
a UUT and the rates vary considerably across the
state.
o Public, Education and Government
Channels (PEG). The requirement of PEG
channels for the community is a critical concern to
many communities and is one of the more difficult
issues in local franchise negotiations. While there
is strong legislative sentiment about the need for
PEG channels, there are questions about how
many are needed and under what conditions? Is
there a way to place a portion of the PEG require-
ments in state law, but allow local flexibility in
negotiations?
o Build-Out of Communications Systems.
A key issue, again with good support in the Legis-
lature, is the need to build out the communications
infrastructure in a community in a manner that
does not discriminate against one portion of the
community over another. This is a consideration at
the city level as well as at a statewide or regional
level.
TELECOM from page 8