IN THIS ISSUE: June 6, 2008
Issue #22-2008
Page 3: Cities Encouraged to Take Positions on List of Major Bills Affecting Cities
Page 5: Menifee to Become 480th City in California
Public-Private Partnership Conference Registration Opens
Page 6: Sustainable Cities Feature: Vacaville’s CNG Vehicle Incentive Program Improves Local Air Quality
Page 7: Western Municipal Conference Unites Local Governments across the West
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
VOTERS SUPPORT EMINENT DOMAIN REFORM AS PROP. 99 WINS IN A
LANDSLIDE AND PROP. 98 LOSES
Tuesday’s election made it clear that California voters want responsible eminent domain reform,
not a law that appears to provide such reform but in reality would have eliminated renter
protections and rent control, weakened environmental protections and threatened the state's
ability to rebuild its aging infrastructure. For more, see Page 2.
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BUDGET COMMITTEES CHOOSE NOT TO INCLUDE SEVERAL
LAO-SUGGESTED GRABS OF CITY FUNDS
Cities received good news this week when neither the Assembly nor Senate Budget Committees
elected to adopt proposals by the Legislative Analyst to take city funds to support state parole
realignment to county probation or for an ERAF-style grab of local redevelopment funds.
Legislators should be thanked for this positive decision. For more, see Page 2.
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POSITIVE RESULTS FOR LOCAL TAX MEASURES ACROSS CALIFORNIA
Along with Propositions 98 and 99 and primaries for congressional and legislative seats on the
June 3 ballot, California voters also considered over 100 local measures. Seventy-eight of these
related to city, county, special district, school bonds or taxes. In addition, voters in Riverside
County made Menifee the state’s 480th city. For more, see Page 3. 2
‘Eminent Domain Reform’ Continued from Page 1…
Sixty-three percent of voters supported Proposition 99, the Home Owners Protection Act, which
directly protects single-family homes from being taken by the government for private
development. On the other hand, 61 percent of voters rejected Prop. 98, signaling that they were
not willing to sacrifice decades of progress or future investments in new water supplies,
affordable housing, environmental protections and well-planned communities for an ill-conceived
scheme.
Prop. 98 would have been so destructive that more than 70 newspapers statewide opposed the
measure as “cynical and devious” (L.A. Times) and a “wolf in sheep’s clothing” (Palm Springs
Desert Sun).
In the months leading up to the June 3 election, numerous high level state officials publicly
opposed Prop. 98, including Gov. Arnold Schwarzenegger, U.S. Senators Dianne Feinstein and
Barbara Boxer, former Governor Pete Wilson, Speaker of the House Nancy Pelosi (D-San
Francisco) and many others. A large and diverse coalition of organizations also denounced Prop.
98, including the California Chamber of Commerce, the Natural Resources Defense Council, the
League of Women Voters and the AARP.
Prop. 99 was supported by a broad coalition of environmental groups, business, housing rights,
seniors, local government and more. This coalition included the California League of
Conservation Voters, Sierra Club California, Silicon Valley Leadership Group, Consulting
Engineers and Land Surveyors of California, the California Mexican American Chamber of
Commerce, Silicon Valley Leadership Group, the League of Women Voters, the Mobile Home
Owners Coalition, California Alliance for Retired Americans and the League of California Cities.
For more information about the No on 98/Yes on 99 campaign, please visit www.no98yes99.com.
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‘Budget Committees’ Continued from Page 1…
Below is a summary of the status of key city funds before the full Budget Conference committees
begin to meet next week:
• Proposition 1A (local property taxes) and Prop. 42 (transportation revenues) remain
untouched.
• Prop. 172 (local public safety), city allocations of Vehicle License Fees (VLF), and special
district property tax revenues remain untouched.
• Local redevelopment funds remain secure (with the exception of a separate discussion
involving correcting redevelopment pass-through reporting errors identified in a recent
State Controller’s audit.)
• Local Citizen Options for Public Safety (COPS) funding and Booking Fees remain
vulnerable. (Gov. Arnold Schwarzenegger proposes full funding with a 10 percent cut; the
Assembly proposes to fund COPS at the Governor’s level, but only allocates a token
$1,000 for Booking Fees; the Senate proposes to fund neither; the recently qualified
initiative, the Safe Neighborhoods Act, requires COPS to be fully-funded at FY 2007-08
levels, plus inflation, and also funds Booking Fees at FY 2007-08 levels.)
• Transit Funding: Both the Assembly and Senate budget committees propose increased
levels of funding over the Governor’s May budget revise.
The Budget Conference Committee will next begin to work on reconciling the differences between
the Senate and Assembly versions of the budget. As listed above, the fate of local public safety
funding for COPS and Booking Fees is uncertain and the budget deficit remains large.
Although some form of a lottery “securitization” proposal may be part of the final package, the
Democrats have not embraced the Governor’s budget stabilization reforms. Recent revenue
raising and “loophole closing” proposals by Democrats have been rejected by Republicans, while
Democrats oppose the notion of closing the budget with cuts only.
3
Sports fans have learned that it is unwise to be too positive about the scoreboard at halftime, and
those same lessons apply to evaluating the vulnerability of city funds in this year’s legislative
budget process. City officials should remain in close contact with their legislators and ready to
react to a variety of proposals during what may be a long summer.
The League will continue to communicate major developments and action alerts through its
network of regional representatives, upcoming issues of Priority Focus and other means.
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‘Local Tax Measures’ Continued from Page 1…
The results were generally positive for most California cities with revenue measures on the ballot
this week. Among the 19 city measures, five were special taxes requiring two-thirds voter
approval and 14 concerned general taxes, which needed a simple majority to pass. Of the five
special taxes on local ballots, two passed. Twelve of the 14 general taxes passed.
League fiscal consultant Michael Coleman has prepared a preliminary breakdown of the
measures. To access the report, visit www.californiacityfinance.com and look under “votes.”
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Cities Encouraged to Take Positions on List of Major Bills Affecting Cities
The Legislature just passed its traditional half-way point, when legislation has crossed from its
house of origin to the other house—bills authored by Assembly Members have moved to the
Senate and vice versa.
Each legislative session, the League tracks hundreds of bills with potential impacts to cities but
focuses its lobbying on a much smaller amount of legislation with the greatest potential impact.
As the session goes on, many bills stall due to opposition, costs, or other reasons.
What remains is a smaller list of priority legislation supported and opposed by the League. The
League’s lobbying team has assembled a list of some of the major bills of interest to cities. Of
course, the Legislature is a place of constant change, so other measures of interest to cities are
certain to emerge.
Below is a list of 19 major bills affecting cities. The bills are listed by policy area, with a brief
description and summary of the League’s position. The League’s letters and sample letters are
available for each of these bills. It is important that city officials submit letters of support or
opposition to their legislators on these bills. These letters are valuable and help with city lobbying
efforts, not only in the Legislature but in helping make the case for Gov. Arnold Schwarzenegger
to sign or veto legislation that may reach his desk.
Community Services
AB 2427 (Eng): Prohibits a city or county from incidentally regulating a local business that is
licensed or certified by the State Department of Consumer Affairs. (Oppose)
Employee Relations
AB 2716 (Ma): Mandates that all part-time workers who work seven or more days in a calendar
year are entitled to paid sick days. (Oppose)
AB 2754 (Bass): Expands the scope of presumptions to include any methicillin-resistant
Staphylococcus aureus (MRSA) skin infection. (Oppose)
SB 1296 (Corbett): Makes declarations and findings relating to the jurisdiction of the Public
Employment Relations Board to bolster firefighter rights. (Oppose)
SB 1338 (Migden): Deletes the 12/31/09 repeal date pertaining to an employee’s pre-designation
of a personal physician. (Oppose)
4
Environmental Quality
AB 2176 (Caballero): Establishes a mechanism through which the federal Energy Efficiency Block
Grant (EEBG) funds received by the state would then be passed on to cities and counties in an
cost efficient and expedited manner. (Support/Sponsor)
AB 844 (Berryhill): Requires that junk dealers and recyclers comply with additional recordkeeping
and identification procedures to ensure that they are not purchasing stolen scrap metal. (Support)
SB 1357 (Padilla): Authorizes the Department of Conservation to expend up to $20 million to fund
grants for beverage container recycling and litter reduction programs or focused, regional
community beverage container recycling and litter reduction programs. (Support)
Housing/Land Use
AB 2000 (Mendoza): Provides an incentive to approve housing units by allowing local agencies to
credit any excess of housing units that are actually constructed over the RHNA category
allocation to the next planning period. (Support)
AB 2097 (Coto): Allows no more than 5 percent of the total redevelopment set aside funds for low
and moderate income to be used for supportive services for transitional housing. (Support)
AB 2280 (Saldana): Makes changes to the Density Bonus Law to assure that developers make
clear what concessions they are seeking at the beginning of the review process and makes
several other technical fixes. (Support)
AB 2594 (Mullin): Addresses some issues related to high foreclosure rates by allowing
redevelopment agencies to use low and moderate income housing funds to retain or purchase
foreclosed units to be retained as a source of affordable housing. (Support)
SB 375 (Steinberg): Provides a detailed process for identifying resource areas and designating
growth areas within the regional transportation plan in order to guide investment of transportation
funds to reduce greenhouse gas emissions. Also provides for limited California Environmental
Quality Act (CEQA) relief in infill and areas where development pattern is consistent with
designations in regional transportation plan. (Oppose, Unless Amended)
SB 1103 (Cedillo): Requires local agencies to provide ongoing reporting of costs and
expenditures related to economic development; and cost made or incurred for the purpose of
stimulating economic development is reportable (except for expenses related to affordable
housing). (Oppose)
Public Safety
AB 38 (Nava): Consolidates the Governor’s Office of Emergency Services and Office of
Homeland Security into a single state Department of Emergency Services and Homeland
Security to streamline disaster response and emergency assistance for local government
agencies. (Support)
Revenue and Taxation
AB 1836 (Feuer): Streamlines existing law related to the formation of Infrastructure Financing
Districts by removing an unnecessary voter approval requirement. (Support)
AB 1957 (Eng): Improves the collection of use tax revenues owed to state and local government
by consumers and businesses through clarifications made to state income tax return forms.
(Support)
5
Transportation
AB 642 (Wolk): Allows cities to use design-build contracting for building construction projects as
well as wastewater facilities, solid waste management facilities, or water recycling facilities for
more efficient, cost-effective public works projects. (Support)
AB 983 (Ma): Requires cities to provide full, complete, and accurate plans, including cost-
estimates on all public works projects, which would reduce incentives for contractors to report
errors in plans during bidding because additional expenses could be recouped through change-
order claims against the public agency. (Oppose)
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Menifee to Become 480th City in California
June 3 Election Also Makes Victorville, Carlsbad Charter Cities
On Oct. 1, Menifee will officially become California’s 480th city.
Voters in Riverside County approved cityhood for Menifee with 61 percent of the 8,507 votes cast
in favor of incorporating the 48-square-mile areas of Menifee, Sun City, Quail Valley and parts of
Romoland. The new municipality will be home to about 60,000 residents.
Voters approved the name of Menifee over Menifee Valley and also chose to elect council
representatives by districts rather than at-large.
In February, Riverside County voters approved the incorporation of Wildomar, a community of
about 29,000. Wildomar will officially become the state’s 479th city on July 1.
The cities of Victorville and Carlsbad also voted on Tuesday to become “charter” cities rather than
remain “general law” cities. Becoming a charter city allows voters to determine how their city
government is organized and, with respect to municipal affairs, enact legislation different than that
adopted by the state.
Information about the differences between general law and charter cities is available on the
League’s Web site at www.cacities.org and click on “All About Cities.”
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Public-Private Partnerships Conference Registration Opens
Registration is now open for “Performance-Based Infrastructure: Making Public-Private
Partnerships Work for California.” This informative conference that will help city leaders explore
the possibilities available with public-private partnerships is slated for Friday, July 18 from 8 a.m.–
4 p.m. at the San Jose City Hall. The event is organized by the Silicon Valley Leadership Group
and is co-sponsored by the League of California Cities.
California is facing an estimated $500 billion infrastructure shortfall over the next 20 years. Public-
private partnerships are one way for cities to get more for the money when building libraries, fire
stations, transit lines, schools and other infrastructure.
Through public-private partnerships, governments can shift some of the risk to private sector
partners for financing, designing, constructing, and sometimes operating and maintaining public
improvements. Done right, the partnerships pay off in lower costs, better design, faster
construction and better performance.
Attendees at the July 18 conference will learn about:
• What authority local governments have now to use public-private partnerships;
• How public-private partnerships might address infrastructure needs in your community;
• When and where the traditional methods for public projects still work best;
• Arguments being made by unionized workers pressing for and against greater use of
such partnerships; and 6
• Other local and state agencies (and countries) who are using them to build an array of
improvements.
To register online or view a full conference agenda, visit www.svlg.net. For more information,
contact Laura Stuchinsky at lstuchinsky@svlg.net.
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Sustainable Cities Feature: Vacaville’s CNG Vehicle Program Improves Local Air
Quality
With 25 Toyota electric RAV4s, the City of Vacaville holds the distinction of being the city with the
most of that model in any municipality in the nation. The city is also the first in the country to get
federal money designated for air quality improvement to support the city’s clean vehicle program
and subsidize the purchase price of compressed natural gas (CNG) running Honda Civic GX for
people who live or work in Vacaville. This distinction has earned Vacaville the name
“Voltageville.”
Vacaville’s Vehicle Incentive
Program (VIP) began in 1999
when the city first applied to the
Congestion Mitigation and Air
Quality Improvement Program for
money to reduce the cost of
purchasing alternative fuel
vehicles. Allocated through the
federal Safe, Accountable
Flexible, Efficient Transportation
Equity Act (SAFETEA-LU), the
funding is designated for air
quality improvement programs.
The city’s mission is to help
reduce pollution in the Solano
County air basin by giving locals
an incentive to buy cleaner cars.
Advantages of CNG
Running the city’s transportation
department, Ed Huestis has become an evangelical about the benefits of cars that run on CNG.
While the Honda Civic GX gets about the same gas mileage as a traditional Civic (24 mpg in town
and 36 mpg on the freeway), because it is “fueled” by CNG it is 90 percent cleaner than a
gasoline-powered car. Greencars.org, part of the American Council for an Energy-Efficient
Economy (ACEEE), has named the GX as the most clean and green car for model years 2004-
2008. Visit www.greenercars.org and click on “ratings highlights” for a complete list of vehicles
ranked.
Huestis’ comment on the GX sums up its extremely low emission output. “You can put your finger
in the tailpipe—there’s nothing there!”
The U.S. gets all of its CNG from North America, with 85 percent coming this country and Canada
supplying the remaining 15 percent, meaning drivers of CNG cars have no dependence foreign
oil.
Traditionally, CNG costs about 30 percent less than gasoline. However, with today’s high and
rapidly increasing gas prices Huestis says it’s about 40 percent cheaper. At PG& E refueling
stations, customers paid the equivalent of $2.45 per gallon in May to fill up their CNG tanks.
(PG&E sets its CNG price once a month). Owners of CNG vehicles can also purchase a special
device that allows them to tap into their home natural gas supply to refuel their vehicles.
Civic GX drivers have access to high occupancy vehicle (HOV) lanes on the freeway during rush
hours and are also exempt from bridge tolls.
Vacaville transportation department director Ed Huestis fills his Honda Civic
GX with compressed natural gas.
7
Huestis says VIP is really about quality of life. “Our residents can save on car maintenance costs,
are not dependent on foreign oil and improve air quality. Because drivers who commute to the
Bay Area can use the HOV lanes, they get home in time for dinner with their families.”
How the Compressed Natural Gas Vehicle Incentive Program Works
Originally, Vacaville used federal funding for the electric vehicles (EVs), but when manufacturers
stopped production, the city switched to supporting the purchase of cars that run on compressed
natural gas in 2002. Currently the city’s VIP has funding to help about 50 people buy a Honda
Civic GX annually. Since the program started, 101 people have purchased cars with 50 of those
in the last year alone. Huestis reports that he’s now getting calls daily from people who want to
know how to qualify for the program. .
A traditional Honda Civic costs approximately $18,000 but the GX model, which runs on CNG,
isn’t mass-produced so the MRSP of this model is $25,225. Through city incentive programs, a
federal tax credit and a new state program, the cost of the GX model for Vacaville residents or
people who live outside Vacaville but work within the city is reduced to the price of a regular Civic.
Here is a summary of the incentives available.
• Federal tax credit: $4,000
• State Alternative Fuel Vehicle Incentive Program: $3,000 rebate for Honda Civic GX cars
purchased after July 1, 2007. (This program is currently out of funding but the California
Air Resources Board is working to secure new funding to reinstate the incentive.)
• City of Vacaville incentive: $1,000 for qualified GX buyers (people who live or work full
time in Vacaville, Dixon or Rio Vista)
• Local dealership incentive: Vacaville Honda, Mel Rapton Honda (Sacramento) and Lodi
Honda have agreed to reduce the MRSP on GX models to purchasers who qualify for
Vacaville’s program.
The City of Vacaville’s Web site www.ci.vacaville.ca.us has information about VIP.
____________________________________________________________________________
Western Municipal Conference Unites Local Governments across the West
Founded 10 years ago, the Western Municipal Conference (WMC) has recently re-energized. The
WMC includes 17 Western States: Alaska, Arizona, California, Colorado, Idaho, Kansas,
Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota,
Utah, Washington and Wyoming.
Novato Mayor and League Immediate Past President Pat Eklund was appointed chair of the
organization in November 2007. Chris McKenzie, League executive director, serves as
secretary/treasurer.
WMC’s mission is based on four key purposes:
• Policy – to establish a cohesive, effective voice for a stronger federal-state-local
partnership and relationships in the region in the development and implementation of
municipal policy issues for the Western Region.
• Political – to provide an effective forum and to develop a coordinated Western legislative
effort for members of the Western state municipal leagues on national, state, and local
issues affecting the municipal governments of the Western region.
• Information Exchange – to serve as a forum for the exchange of comparative research
and information, current issues and emerging trends among participating leagues in the
West.
• Collaboration – to facilitate communication and collaboration among Western state and
local public officials and their associations.
More information about WMC can be found online at www.westmc.org. 8
_____________________________________________________________________________
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.
_____________________________________________________________________________
IN THIS ISSUE: June 13, 2008
Issue #23-2008
Page 3: Conflict Over Labor Dispute Jurisdictions May Go to Supreme Court
Page 4: U.S. Supreme Court Rules Against Allowing Public Employees to Sue for “Class-of-One” Violations
New Web Site Engages More African American Local Officials
Page 5: Addressing the Impacts of Foreclosure Crisis
2008 Annual Conference Offers First-Time Attendees Orientation
Page 6: ILG Luncheon at Annual Conference Focuses on California Demographics
Software Makes Reporting Affordable Housing Funding Easy
Page 7: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEGISLATIVE BUDGET CONFERENCE COMMITTEE BEGINS
City Leaders Urged to Remain in Close Contact with Legislators
The Legislative Conference Committee began its work of reconciling differences between the
Assembly and Senate versions of the budget on Thursday, June 12. The Senate conferees are
Sens. Denise Ducheny (D-San Diego), Bob Dutton (R-Inland Empire) and Mike Machado (D-
Linden). The Assembly is represented by Assembly Members John Laird (D-Santa Cruz), Roger
Niello (R-Sacramento), and Mark Leno (D-San Francisco). For more, see Page 2.
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LEAGUE OPPOSES ENERGY INITIATIVE ON NOVEMBER BALLOT
"Solar and Clean Energy Act" Could Thwart Efforts to Secure More Renewable
Power and Would Undermine Local Control
A growing coalition that includes local governments, renewable energy providers,
environmentalists, business and labor leaders have opposed the Solar and Clean Energy Act of
2008. The initiative qualified June 2 for the November 2008 ballot. For cities, one of the most
significant issues is that, if passed, this measure would significantly erode local control over the
permitting of new power plants. The measure could also undermine the ability of municipal and
local government-run utilities to determine the power portfolio appropriate for their customers.
For more, see Page 2.
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HOUSING BILL AMENDED TO INCLUDE ADDITIONAL $150 MILLION FOR INFILL
INFRASTRUCTURE AND TOD
Senate Appropriations Committee Will Hear AB 1252 Monday
AB 1252 (Caballero, Saldana) has been gutted and amended to include the allocation of an
additional $150 million in funding from the Proposition 1C Infill Infrastructure and Transit Oriented
Development (TOD) Fund for FY 2007-08: $100 million for infill and $50 million for TOD.
For more, see Page 3. 2
‘Budget Conference Committee’ Continued from Page 1…
The Conference Committee recently released a potential schedule of meeting times—proposing
to meet almost daily between now and June 30, when a budget bill will be scheduled for a vote.
Although this may be the official calendar, there continues to be wide speculation on when a
budget will ultimately be adopted.
Senate leadership recently announced that they were rejecting Gov. Arnold Schwarzenegger’s
lottery proposal and proposing $11.5 billion in unspecified revenue increases to resolve the
budget. Sen. Don Perata (D-Oakland) was also recently quoted as giving an Aug. 1 date for the
potential adoption of the budget.
In the typical budget process, the Conference Committee focuses on closing out as many issues
as possible, while leaving major outstanding issues for the “big five” which is comprised of Gov.
Arnold Schwarzenegger, Senate President Pro Tem Don Perata (D-Oakland), Senate Republican
Leader Dave Cogdill (R-Fresno), Assembly Speaker Karen Bass (D-Los Angeles), and Assembly
Republican Leader Mike Villines (R-Clovis).
The most significant item for cities for the Conference Committee to address remains the status
of local public safety funding. The most recent listing of the city-by-city allocations of COPS
funding and Booking Fees is available on www.californiacityfinance.com.
(http://www.californiacityfinance.com/COPsBkgFeeImpacts.pdf)
City officials are advised to stay in close contact with their legislators as the budget process
continues this summer. It is also advisable to approach discussions with legislators with some
caution and patience because these are opening moves in what will likely become a major
partisan battle over potential revenue increases as a component of the budget solution.
_____________________________________________________________________________
‘Energy Initiative’ Continued from Page 1…
The League's board of directors voted unanimously to oppose the initiative at its April meeting in
Sacramento.
While all these groups, including the League, support efforts to move to more renewable supplies
of power, environmental and energy experts warn that significant drafting flaws could actually
thwart clean power development by locking into law barriers to renewable development, and
could result in rate increases for all consumers.
The initiative would require all utilities, including municipal utilities, to provide 50 percent of power
from renewable sources by 2025, without truly addressing existing barriers to renewable
development, including transmission development.
Current California law provides for the most aggressive targets in the nation, requiring that by
2010, 20 percent of electricity must come from a renewable source. State agencies and Gov.
Arnold Schwarzenegger have established a 33 percent target by 2020.
Some of the key problems the League has identified with the Solar and Clean Energy Act of 2008
are:
Preempts Local Land Use Authority: The initiative would reassign permitting authority from
local governments to the California Energy Commission (CEC) to approve solar and clean energy
plants and related facilities. Local agencies would have 100 days after a project application is
filed with CEC to provide final comments, determinations, or opinions to CEC. It is unclear
whether the Commission has any obligation to defer to a city's determination, for example, what
happens when a plant location does not comply with the city's General Plan.
Removes Local Control Over Resource Mix: Existing law in the Public Utilities Code
encourages municipalities who own utilities to consider renewable energy, while taking into
consideration rates, reliability, financial resources, and the goal of environmental improvement.
The initiative would remove local control over local decisions on resource mix and may impact a
utility's financial resources. Also, as technologies become cheaper and more efficient, there is 3
nothing in this existing code section that would prevent a government-owned utility from making
the decision to switch technologies or pursue a different resource mix.
The diverse group of organizations that oppose this measure include: the Natural Resources
Defense Council, the California League of Conservation Voters, the California Small Business
Association, California Municipal Utilities Association, Coalition of California Utility Employees,
International Brotherhood of Electrical Workers, Locals 47, 1245 and 9th District, California
Chamber of Commerce, PG&E, Sempra, Southern California Edison and the California Solar
Energy Industries Association.
The League will continue to monitor the Solar and Clean Energy Act of 2008 and will provide
updates through the League's Web site and Priority Focus.
_____________________________________________________________________________
‘Housing Bill’ Continued from Page 1…
Because this funding would be allocated for the fiscal year ending June 30, AB 1252 is expected
to be heard June 16 by the Senate Appropriations Committee due to its urgency. The bill also has
the added benefit of invigorating the economy at a time when California is experiencing great
economic strain. Promoting infill and TOD contributes to the reduction of greenhouse gas
emissions.
For FY 2007-08, the Legislature appropriated $240 million from the Infill Incentives Grant
Program and $95 million for TOD. However, the applications submitted for this initial
appropriation significantly outstripped the appropriated funds. In fact, the Infill Infrastructure Fund
received 124 applications that exceeded $1 billion—four times the amount of the original $240
million. Applications for TOD funding were five times greater than the allocated $95 million.
Take Action!
Cities with applications pending for these Prop. 1C funds are urged to submit support letters to
their senator. The League’s letter of support can be found online at www.cacities.org/billsearch.
Plug in AB 1252 to pull up the letter.
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Conflict Over Labor Dispute Jurisdictions May Go to Supreme Court
Last March, Priority Focus reported on a case in which California’s Sixth District Court of Appeal
concluded that the Public Employment Relations Board (PERB) has exclusive initial jurisdiction
over labor disputes between public agencies and their employees whose job duties are essential
to preserving public health and safety. The Sixth District’s decision was disappointing to local
governments that want the option of going to court in lieu of PERB when a dispute arises.
Recently, however, another California appellate court—the First District—examined this same
issue and ruled the opposite: PERB does not have exclusive initial jurisdiction over these types of
disputes. Rather, local governments may bypass PERB and go directly to the courts when a
planned strike threatens public health and safety.
In this recent case, County of Contra Costa v. Public Employees Union Local One, the county
sued several public employee unions to prevent certain “essential employees” from participating
in a one-day strike. The trial court granted the county’s request for a temporary restraining order,
thereby preventing approximately 160 employees from striking, including airport operations
specialists, animal service workers, probation counselors, and various county hospital workers.
The PERB intervened, arguing that it had exclusive jurisdiction over the matter because the
proposed strike was “arguably protected or prohibited by the [Meyers-Milias-Brown Act],” one of
the statutes PERB is charged with enforcing.
The appellate court disagreed. Instead, the court sided with the county and concluded that
because the county did not allege any “unfair practice” under the Meyers-Milias-Brown-Act, which
is a prerequisite for PERB jurisdiction, the county was free to go straight to court to seek an order
protecting the public from imminent threats to health and safety. 4
The court also dismissed the assertion that PERB rather than a court was better suited to handle
these types of disputes. The court commented, “Although we recognize that this balancing
process [in determining whether the public interest overrides the basic right to strike] may impose
an additional burden on the judiciary, it is neither a novel nor unmanageable task.”
As for the Sixth District’s differing analysis, the First District stated, “We recognize that our
colleagues in the Sixth District arrived at the opposite conclusion . . . We believe [that] court’s
reasoning is overly broad.”
This disagreement among the appellate courts makes the issue ripe for review by the California
Supreme Court. The high court has yet to decide whether it will accept the case for review.
The League along with the California State Association of Counties submitted an amicus brief to
the First District in support of the county.
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U.S. Supreme Court Rules Against Allowing Public Employees to Sue for “Class-
of-One” Violations
Guided by the “common sense realization that government offices could not function if every
employment decision became a constitutional matter,” the United States Supreme Court has
ruled that public employees cannot sue their employers for alleged “class-of-one” equal protection
violations.
The High Court’s decision brings a sigh of relief to public entities, as a contrary decision could
have jeopardized the concept of at-will employment and put public agencies at risk for defending
every employment decision such as hiring, promotion, transfer, and discipline in court.
In Enguist v. Oregon Department of Agriculture, Anup Engquist, an employee of the Oregon
Department of Agriculture (ODA), sued her employer for a variety of problems she experienced
while at ODA. Enquist sued under a variety of theories including that she was fired for “arbitrary,
vindictive, and malicious reasons” in violation of her “class-of-one” equal protection rights. At
issue before the Court was whether this was a proper basis for filing a lawsuit.
The Court stated, “The federal court is not the appropriate forum in which to review the multitude
of personnel decisions that are made daily by public agencies.” Allowing employees to go forward
with these types of claims would force governments to “defend a multitude of such claims . . . and
courts will be obliged to sort through them in a search for the proverbial needle in a haystack.”
The Court’s decision does not affect a public employee’s ability to sue an employer for violating
other rights such as the right to be free from discrimination on the basis of race, religious creed,
color, national origin, ancestry, physical or mental disability, medical condition, marital status, sex,
age, or sexual orientation.
Rather, the Court’s decision makes clear that an employee cannot sue an employer simply
because the employee feels he or she was treated arbitrarily, vindictively, or maliciously. Had the
court ruled the other way, public entities would have found it difficult to exercise their rights as at-
will employers as every employment decision could later be the subject of a lawsuit.
The League filed an amicus brief with the Supreme Court in support of the Oregon Department of
Agriculture. The League thanks Melanie M. Poturica, Brian P. Walter, David A. Urban, and Alex
Y. Wong of Liebert Cassidy Whitmore for drafting the League’s brief.
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New Web Site Engages More African American Local Officials
The newly launched League of California Cities African American Caucus Web site is a vehicle to
inform and connect all African American local elected and appointed officials in the state. Log on
to the Web site at www.loccaac.org.
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An affiliate of the League, the African American Caucus represents the interests of African
American city officials and the greater African American community. The caucus also collaborates
with the California Legislative Black Caucus (LBC) and the National Black Caucus of Local
Elected Officials (NBCLEO).
Visitors to www.loccaac.org will find information about the caucus’ work, membership and
upcoming events. The caucus continues to identify African American elected and appointed
officials across California, engage them in the organization and help support the League of
California Cities’ mission to protect local control and authority.
“The African American Caucus has built incredible momentum, so it was natural for us to create a
Web site to better serve our members and utilize the site as another vehicle to accomplish our
goals,” commented John Shoals, caucus president and mayor, City of Grover Beach.
El Centro Council Member Sedalia Sanders has been involved with the caucus since its inception
and says the organization has a great contribution to make in California.
“We want people to recognize that this is a substantive group that is interested in addressing the
concerns of the African American community in California. This community folds into the larger
community. So while we focus on this niche, this niche blossoms out and is something that
affects all Californians with issues like housing, jobs, health care and quality education being at
the forefront,” said Council Member Sanders.
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Addressing the Impacts of Foreclosure Crisis
Los Angeles Symposium Helps Local Leaders Deal with the Aftermath of the Mortgage
Meltdown
City officials are encouraged to attend “Stabilizing Communities: Addressing the Negative
Impacts of Foreclosure,” July 15-16 at the Hollywood Renaissance Hotel in Los Angeles.
Hosted by the Federal Reserve Bank of San Francisco, the Stabilizing Communities symposium
will bring together national experts to share best practices for mitigating the negative impacts of
foreclosure on borrowers and neighborhoods. The objective is to provide local leaders and
practitioners with tangible examples of how to address the foreclosure crisis within their
communities, with a special emphasis on the issues facing high-cost markets such as those in
Arizona, California and Nevada. Over the two days, panels and concurrent workshops will answer
the following questions:
• What models and strategies are available to help borrowers and convert real estate-owned
(REO) properties into affordable homeownership or rental units?
• How might these strategies need to be adapted for high-cost real estate markets?
• What are the challenges that governments and nonprofits face in acquiring, rehabilitating,
and managing foreclosed properties?
• And how can governments and nonprofits work with service providers and lenders to
successfully convert foreclosed properties into community assets?
This symposium is part of a broader Federal Reserve System series, "Recovery—Renewal—
Rebuilding,” that seeks to develop and disseminate innovative strategies and policies that can
help to address the broad range of challenges related to the rise in mortgage delinquencies and
foreclosures.
Space is limited, so please register by June 30. Registration information, lodging details and the
agenda can be found at www.frbsf.org/community.
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2008 Annual Conference Offers First-Time Attendees Orientation
Registration is open for the 2008 League of California Cities Annual Conference, slated for Sept.
24-27 in Long Beach. First-time attendees are encouraged to attend a special orientation from 6
2:30-3:30 p.m. on Wednesday, Sept. 24 for helpful tips on how to make the most of their annual
conference experience.
The registration fee for the League’s annual conference is an outstanding value for the breadth
and quality of information, resources and networking activities provided. The program has a core
agenda of policy, plenary sessions with outstanding keynote speakers, 50 workshop sessions
plus an exposition with 250 industry-related vendors.
Register for the 2008 Annual Conference online at www.cacities.org/ac. Remember to book your
hotel room as well because accommodations are limited.
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ILG Luncheon at Annual Conference Focuses on California Demographics
USC Professor Manuel Pastor will speak on the changing demographics in California at the
Institute for Local Government (ILG)’s Symposium during the League’s 2008 Annual Conference
on Sept. 25 in Long Beach.
By 2012, naturalized adults, naturalization-eligible immigrants, and young-adult citizen children of
immigrants could represent 7.7 million voters in California, or 29 percent of the electorate.
Pastor, a professor in USC’s departments of geography and American studies and ethnicity, will
present his perspectives on the state’s changing demographics and the opportunities and
challenges they present for local officials.
Register for the luncheon when you register for the League’s 2008 Annual Conference. League
staff Julia Stagg is also registering people for the luncheon. Contact her via e-mail at
lstagg@cacities.org. The luncheon is $45 to attend.
The symposium flyer has additional information.
(http://www.cacities.org/resource_files/26913.2008SymposiumFlyerFinal.pdf)
The luncheon will be followed up on the afternoon of Sept. 25 with a session titled “Immigrant
Integration and Engagement: Ideas & Resources for Local Leaders.” Participating panelists will
discuss opportunities, challenges and resources for local officials to support immigrant integration
and engagement in their cities.
ILG is the nonprofit research affiliate of the League and the California State Association of
Counties.
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Software Makes Reporting Affordable Housing Funding Easy
U.S. Communities’ FOCUS Software Helps Cities Comply with AB 987
When AB 987 became effective on Jan. 1, it required that all redevelopment agencies (RDAs)
compile a database of affordable housing units that are assisted with low- and moderate-income
housing funds. This database must be updated annually and made available to the public via the
Internet.
U.S. Communities developed specialized software to help cities comply with this new law.
Originally created in 2006, FOCUS Housing Compliance Software recently added a component
which formats the AB 987-required data into a report which is then posted on the agency’s Web
site. Additionally, as new RDA loans are made, the AB 987 report is automatically updated with
the new property information.
For those agencies interested in meeting the AB 987 requirements only – without needing the full
spectrum of the FOCUS software – U.S. Communities will license the AB 987 module on a
standalone basis. AB 987 does allow agencies to recoup the cost of preparing the database from
the owners of the affordable housing.
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FOCUS Compliance Software
U.S. Communities developed FOCUS Compliance Software, a web-based compliance monitoring
software and reporting system for public agencies and developers with affordable housing
compliance monitoring obligations. The software automates a series of complex and time-
consuming income and rent calculations that must be performed for every tenant to ensure
individual tenants and the overall property are in compliance with federal, state and local income
and rent restrictions.
FOCUS is used to monitor over 500 affordable housing properties representing over 55,000 units.
The program has proven to significantly reduce the time and cost associated with compliance
monitoring while improving reporting compliance, reducing paperwork and increasing accuracy.
U.S. Communities can provide the custom software or additional compliance services (including,
but not limited to compliance training and/or consulting support) to assist cities in managing their
affordable housing compliance requirements.
U.S. Communities is a joint powers authority sponsored by the League of California Cities and the
California State Association of Counties. Its mission is to create programs that assist local
authorities to build better communities, stimulate social and economic growth and save public
agencies time and resources.
Please visit www.housingcompliance.org for additional information about compliance issues.
Lorna Henri is also available to answer questions, and can be reached by e-mail at
lhenri@cacommunities.org.
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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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