IN THIS ISSUE: April 25, 2008
Issue #16-2008
Page 6: Coalition Condemns Deceptive Prop. 98 Radio Campaign
Page 7: League Urges City Opposition of AB 2676
Page 8: Senate Budget Committee Examines Legislative Analysts’ Parole Reform Proposal
Page 9: Letters Needed in Support of AB 642 Design-Build Contracting Legislation
City Officials Urged to Complete Illegal Dumping Survey by May 16
City Officials Encouraged to Take Local Streets and Roads Assessment Survey Now
Page 10: Cities Should Apply for Prop. 1B Local Street and Road Funds Now
Western City Magazine Wins Three CAPIO Excellence in Communications Awards
Sustainable Cities Feature: Lincoln’s NEV Transportation Plan
Page 11: Court Validates Cooperative Purchasing Through U.S. Communities
Page 12: Legislature Welcomes Two New Leaders This Spring
Page 13: Governor Appoints New Secretary of the Department of Corrections and Rehabilitation
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
2008 LEGISLATIVE ACTION DAYS DRAWS HUNDREDS OF CITY
OFFICIALS TO SACRAMENTO
Budget, Climate Change and Infrastructure Top Issues
The League of California Cities annual Legislative Action Days occurred April 16-17 in
Sacramento. The two-day event was well attended with over 350 city officials coming to lobby in
the Capitol and hear about pressing legislative issues. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
LEAGUE BOARD OF DIRECTORS MEETS IN CONJUNCTION WITH
LEGISLATIVE ACTION DAYS
The League board held its second meeting of 2008, April 17-18 at the Sheraton Grand
Sacramento. The Sacramento-based meeting provided an opportunity for the board to hear from
some of the state’s top officials. For more, see Page 4.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
STATE TREASURER LOCKYER BRIEFS LEAGUE BOARD ON
MUNICIPAL BOND RATING SYSTEM
Board Unanimously Supports Reform Effort
Although municipal bonds carry a very low default risk for investors, their ratings are subject to
higher standards than corporate bonds, mortgage-backed securities and other debt investments.
That fact has prompted California Treasurer Bill Lockyer, 10 other state treasurers and financial
officers from a number of local agencies, including the city of Los Angeles, to call for rating
agency reform. For more, see Page 5. 2
‘Legislative Action Days’ Continued from Page 1…
The League’s legislative briefings were held at the Sacramento Convention Center on April 16
and the Sheraton Grand Hotel Sacramento on April 17. League President Jim Madaffer’s
welcoming remarks on the first day were followed by a long list of impressive speakers from Gov.
Arnold Schwarzenegger’s Administration and the Legislature.
The budget was the topic du jour for all the speakers with the Governor delivering his May Budget
Revise on May 15.
Finance Director Mike Genest
readily acknowledged the very
tough position California is in this
year. He provided a historical
perspective on the state’s budget
between 1998 and today to help
explain why California has a cash-
flow problem for the current fiscal
year (FY 2007-08) and a significant
budget deficit for the budget year
that starts July 1 (FY 2008-09).
“We should have been cutting, but it
is not embedded in the DNA of the
budget process,” said Genest as he
explained why the Governor is
working to enact a constitutional
amendment to create a “rainy day” fund to smooth out future state budget turbulence.
Assembly Member Anna Caballero, chair of the Local Government Committee, recalled her days
as mayor of Salinas when she would come to Sacramento to lobby. She commented to her
former local government colleagues that the budget will only be solved through bipartisan
cooperation.
Senator Alan Lowenthal spoke about
SB 974, legislation he’s introduced
which would give the Ports of Long
Beach, Los Angeles and Oakland the
authority to collect a $30 fee per
container to fund congestion
management and air quality
improvement projects related to the
ports. He conveyed to the audience his
frustration about the toll that
transporting goods from California ports
out of state has on our infrastructure.
On the budget, the senator, who chairs
a budget subcommittee, remarked,
“Cuts won’t be enough to solve our
budget problems. We need more
revenues.”
Department of Finance Director Mike Genest
Sen. Alan Lowenthal (D-Long Beach)
3
Sen. Alex Padilla, former League
president, spoke about Proposition 1A
protections. “I’m fighting to not have the
state make locals pay for state cash
flow problems,” Padilla told the
audience.
New Senate Republican Minority
Leader Dave Cogdill addressed the
League, expressing his admiration for
local government. He served on the
Modesto City Council years ago and
told the audience that they have the
hardest job in government.
“This budget crisis makes previous
ones pale in comparison,” said Sen.
Cogdill in his remarks about the state budget. He told the city officials present that the
Republicans are looking to find ways to make cuts where they make sense to make California
more efficient and find revenues—outside of tax increases—to stimulate the economy.
Speaker-Elect Karen Bass closed the Wednesday general session. She will assume her new post
May 13, just two days before the May Revise is delivered. The assembly woman from Los
Angeles told the city officials gathered that, “It will take a unified effort by the Legislature, cities
and counties coming together to figure out how to get out of this mess.”
Climate Change and Budget Issues Dominate Day Two General Session
The second day of Legislative Action Days, April 17, featured two key speakers: Cynthia Bryant,
deputy chief of staff and director, Office of Planning and Research and James Tilton, secretary,
California Department of Corrections and Rehabilitation.
Bryant, a member of the Governor’s Administration since its earliest days, spoke about new
developments related to implementing the Global Warming Solutions Act (AB 32) and the
potential for achieving better planning through regional blueprints, regional transportation plans
and the regional housing needs allocation process.
She told the audience that the Governor frequently refers to local government as his partner and
this partnership extends to work on climate change. “Land use has become sexy and everyone
wants to be involved,” Bryant said.
Her outline for how state and local government can work best on greenhouse gas (GHG)
emission reduction included:
• Coordinating planning efforts;
• Addressing planning resources; and
• Aligning infill infrastructure investments with GHG reduction goals.
The Governor, Bryant remarked, has been quoted as saying “The local level is where all the
answers are.”
California Department of Corrections and Rehabilitation Secretary James Tilton was the final
Legislative Action Days speaker.
Tilton, who had announced his retirement just days before he addressed the general session,
reflected on his accomplishments and provided perspective on his agency’s work. He told the
audience that Corrections is the largest provider of mental health services in the state.
The secretary’s remarks concluded with a discussion of the challenges of the state budget.
The issue papers prepared for Legislative Action Days are available on the League’s Web site.
Sen. Alex Padilla (D-Los Angeles
4
• State Budget http://www.cacities.org/resource_files/26742.FINAL Issue Paper State
Budget.rtf
• Climate Change http://www.cacities.org/resource_files/26740.FINAL Issue Paper Climate
Change.rtf
• Infrastructure and Economic Stimulus
http://www.cacities.org/resource_files/26741.FINALIssuePaperInfrastructureandEconomi
cStimlus.rtf
_____________________________________________________________________________
‘April Board Meeting’ Continued from Page 1…
State Budget Discussion
Mike Genest, director, Department of Finance, Diane Cummins, Office of Senate Pro Tem Don
Perata and Rick Pratt, assistant executive director, California School Boards Association,
conducted a panel discussion on the looming state budget crisis. Each provided insight based on
their expert perspectives.
Genest, who addressed the Legislative Action Days’ Wednesday general session, acknowledged
the difficulty of this year’s budget. He spoke about the Governor’s proposed constitutional
amendment which would create a rainy day fund to capture revenues during boom years to save
for years like this one. Part of the Governor’s plan includes creating a mechanism to reduce
spending faster than is possible now to help stave off such a large projected deficit.
The Finance director said that borrowing Prop. 1A funds would be terrible for California because
the pay-back period is so short it would make recovery more difficult. Although right now the
Governor is leaving all budget options on the table, he said that he hopes 1A won’t be used.
Diane Cummins said the day of reckoning is here. As a 30-year veteran of state budget
negotiations, she said she’s never seen a worse budget, largely because all of the easy solutions
have already been used.
Speaking to the board, Cummins commented “We have to close the gap and are going to make
major reductions. If we can’t get revenue then those cuts are going to be more devastating.”
Rick Pratt said that although schools had weathered previous budget shortfalls, nothing
compares to this year’s budget. He told the board that school boards had to send out pink slips
March 15 because they have to finalize their budgets for the coming year by July 1, even if the
state fails to finish its own. Echoing Cummins remarks, Pratt commented that we need a
balanced approach to the budget because cuts can’t solve the problem entirely.
The board had a preliminary discussion of a proposed League policy-statement on the state
budget crisis. It will meet next week by conference call to finalize the statement.
State Treasurer Bill Lockyer briefed the board on his work to reform the municipal bond rating
system. Please read “State Treasurer Lockyer Briefs League Board on Municipal Bond Rating
System,” on page 1 for a full discussion of his presentation.
Strategic Priorities
The board was briefed on the League’s strategic priorities. The short update on the priority to
“protect funding for vital community services,” preceded the budget presentation by Genest,
Cummins and Pratt.
The board was briefed on the second priority, “support green and sustainable cities,” with a
discussion on the Institute for Local Government’s (ILG) work on climate change and an update
on the League’s work on SB 375 (Steinberg).
5
ILG’s Climate Action Network has a recognition component to celebrate how cities are reducing
emissions. The program is designed to recognize cities based on the percentages they reduce to
allow for the difference in size between cities.
The board was also advised that staff and a group of local and regional agencies are continuing
discussions on SB 375 with author Sen. Darrel Steinberg and the bill’s sponsor, the California
League of Conservation Voters. When the negotiations are complete, League policy committee
chairs with jurisdiction on the bill will work with the board to review the package of recommended
changes.
Over the past few months, the League has been convening meetings of local and regional
stakeholders with the author’s representatives and sponsor in an effort to hammer out a
responsible set of amendments to the bill.
In the briefing on the League’s third priority this year to “expand infrastructure investment,” the
board was advised that cities are beginning to receive Proposition 1B Local Street and Road
funds. As of mid-April, 235 cities have received their FY 2007-08 allocations.
Finally, the board learned how its fourth priority to “enact honest and responsible eminent domain
reform” was faring when it received reports on the large coalition that has been formed to defeat
Prop. 98 and pass Prop. 99.
The board learned of the recent opposition to Prop. 98 by the California Chamber of Commerce,
the California Transportation Commission (CTC) and U.S. Representative George Radonovich
(R-Mariposa). The board was also advised that State Treasurer Bill Lockyer is the first California
constitutional officer to officially oppose 98 and support 99.
Shortly after the meeting it was announced that the board of directors of the California Building
Industry Association voted to oppose Prop. 98. On Thursday, April 24, U.S. Senator Diane
Feinstein (D-CA) announced her opposition to Prop. 98 and support for Prop. 99.
Next Board Meeting
The League of California Cities board of directors will next meet July 25-26 in Santa Cruz.
_____________________________________________________________________________
‘Municipal Bond Rating Reform’ Continued from Page 1…
Treasurer Lockyer briefed the League’s board of directors during its meeting Thursday, April 17
on his campaign. The board voted unanimously to support the campaign because of the
importance to the fiscal vitality of cities, especially given the current budget crisis. The League’s
Revenue and Taxation Policy Committee took a support position on this matter when it met in
early April in Ontario.
Lockyer explained to the board last week that the current rating system discriminates against
local and state agencies which issue bonds which results in public agencies paying a higher
interest on the bonds than private corporations with similar default exposure. The practice
penalizes taxpayers because public money that could be invested in infrastructure is instead
being used to borrow at high interest rates.
Under the current system, municipal bonds that are typically assigned an A rating by Standard &
Poor’s, Moody’s and Fitch can by upgraded to AAA if the agencies issuing the bonds purchase
expensive bond insurance. Lockyer estimates that in the past five years, California has spent
$102 million purchasing insurance which is unneeded given the extremely low default rate.
Municipal bonds are extremely safe investments, especially compared to other bonds. Standard
& Poor’s has found that the default rate of A-rated municipal bonds is just .023 percent, while
corporate bonds have a default rate of 2.91 percent—or a 13 times greater chance of default than
municipal bonds.
During his presentation, the treasurer spoke about his frustration with the bond rating agencies
which have not answered why municipal bonds are assigned such low ratings. He has reminded 6
them in correspondence and in his testimony to the House Financial Services Committee in
March that California is the eighth largest economy in the world and has constitutional protection
for debt repayment and that its bonds are extremely secure investments.
The campaign calling for reform to the municipal bond rating system is getting attention across
the country. Moody’s has begun an internal review of its rating practices and is considering a new
global rating scale for all bonds. Lockyer has also been encouraged by the public agencies that
have begun to write letters and pass resolutions asking the rating organizations to review their
methodologies and is optimistic that this will ultimately result in significantly lower interest rates
for municipal bonds.
After the League board voted unanimously to support the municipal bond rating reform campaign,
League Executive Director Chris McKenzie notified the three rating agencies of the action. The
League board strongly urges cities to pass resolutions supporting municipal bond rating reform.
A sample resolution and letter to the rating agencies is available on the League’s Web site. Links
to each are provided below.
• Sample resolution http://www.cacities.org/resource_files/26738.Lockyer Story Sample
Resolution.rtf
• Sample letter
http://www.cacities.org/resource_files/26739.LockyerStorySampleRatingAgencyLetter.rtf
A recently launched Web site, www.treasurer.ca.gov/fairbondratings, with additional information
to support the nationwide effort to reform how Wall Street rating agencies grade bonds issued by
state and local governments.
The site includes features to help interested parties register their support for a fair system that
bases all bond ratings—for both government and corporate issuers—on the risk the issuer will
default. The Web site also includes background information, updates on the latest developments,
a current list of supporters, news articles and opinion pieces.
Priority Focus reported on Treasurer Lockyer’s campaign in the April 4 issue. The article is
available on the League’s Web site. http://www.cacities.org/resource_files/26708.april4.pdf
_____________________________________________________________________________
Coalition Condemns Deceptive Prop. 98 Radio Campaign
Rallying at a news conference at the state AARP headquarters in Pasadena on Wednesday, April
23, representatives from AARP, the League of Women Voters of California, and senior and tenant
rights groups blasted new ‘Yes on Proposition 98’ radio commercials as a deceptive campaign
being funded by apartment and mobile park landlords who are trying to trick voters into
supporting Prop. 98. The measure is slated for the June 2008 ballot.
The radio ads began airing Tuesday, April 22 in
most media markets. The spots draw on voters’
concerns about eminent domain. However, the ads
intentionally exclude any mention of the real reason
landlords have contributed 80 percent of the
funding for this campaign—to eliminate rent control
and renter protections.
Additionally, Prop. 98 would abolish local land use
regulations and environmental protections and
would obstruct future water projects. The League is
part of a broad coalition opposing Prop. 98.
Groups rallying at AARP headquarters in Pasadena.
7
The following individuals spoke at Wednesday’s event:
• Chris Carson, government director, League of Women Voters of California
• Larry Gross, executive director, Coalition for Economic Survivial
• Elena Popp, tenants rights attorney
• Marvin Schachter, AARP California Executive Council Member
• Greg Spiegel, housing attorney, Western Center on Law and Poverty
Media Coverage
The Pasadena press conference attracted a great deal of news coverage including:
• KNBC-TV 4 (NBC)
• KMEX-TV 34 (Univision)
• KPCC-FM 89.3 (NPR)
• KFWB-AM 980
• KFBK-FM 90.9
• Pasadena Star News
• Pasadena Weekly
• Chinese Daily Newspaper
Yes on Prop. 99
Prop. 99, the Homeowners Protection Act, also on the June 2008 ballot, offers true eminent
domain reform, by prohibiting the government from using eminent domain to take a home to
transfer to a private developer. Prop. 99 is supported by a broad coalition of homeowners,
business, labor groups, cities, counties and environmentalists.
Visit www.no98yes99.com for more information, fact sheets and news about the No on 98/Yes
on 99 campaign.
Public Officials Voice Opposition to Prop. 98 and Support for Prop. 99
In recent weeks, a number of high level state and national officials and organizations have
publicly opposed Prop. 98 and or supported Prop. 99 including:
• U.S. Senator Diane Feinstein opposed Prop. 98 and supports Prop. 99
• State Treasurer Bill Lockyer opposes Prop. 98 and supports Prop. 99
• Former Gov. Pete Wilson opposes Prop. 98
• California Transportation Commission opposes Prop. 98
• Speaker of the House, U.S. Rep. Nancy Pelosi (D-San Francisco) opposed Prop. 98 and
supports Prop. 99
• U.S. Representative George Radanovich (R-Mariposa) opposes Prop. 98
• Assembly Member Patricia Wiggins (D-Santa Rosa) opposes Prop. 98 and supports
Prop. 99
_____________________________________________________________________________
League Urges City Opposition of AB 2676
Bill Would Limit Transit-Occupancy Tax
City officials are urged to review and send letters of opposition on AB 2676 (Calderon). This bill
would prohibit a city or county from imposing a transit occupancy tax (TOT) retroactively in certain
situations. This bill will be heard next Wednesday, April 30 by the Assembly Committee on Local
Government.
A sample opposition letter is available on the League’s Web site at www.cacities.org/billsearch.
Plug in AB 2676 into the bill search function to access the sample letter.
8
Letters of opposition should be sent to Assembly Member Charles Calderon, the bill’s author. Fax
the letter to his office at (916) 319-2158.
In addition, please fax a copy of the letter to the following:
• Your Assembly Member and Senator
• J.Stacy Sullivan, chief consultant, Assembly Committee on Local Government, fax: (916)
319-3959
• Dan Carrigg, legislative director, League of California Cities, fax: (916) 658-8240
Background
For many California cities, transient occupancy tax (TOT) has become an important and vital
source of revenue, which is collected from guests who stay at hotels and similar lodging
establishments. The ordinances implementing these local taxes vary in their wording, and the
level and type of activity that is taxed.
AB 2676 contains four pages of intent language that point to concerns that the sponsors of this
legislation have about the application of ordinances within the City and County of San Francisco,
as well as other matters. These disputes over the interpretation of particular local ordinances are
best settled at the local level, rather than attempt to dictate a state-wide one-size-fits-all approach
outlined in this legislation.
Furthermore, the drafting of this bill could be interpreted to require local governments to amend
their ordinances, as well as interfere with a city’s ability to appropriately audit the tax collection
practices of hotel owners/operators to ensure they are in full compliance with local ordinances.
____________________________________________________________________________
Senate Budget Committee Examines Legislative Analysts’ Parole Reform Proposal
On Thursday, April 17, Senate Budget Subcommittee #4 held a hearing to examine the
Legislative Analyst’s Office (LAO) proposal to shift state parole responsibility to counties, paying
for it by taking city Proposition 172 public safety dollars, eliminating the COPS program,
eliminating Booking Fee reimbursements, and shifting special district property tax dollars.
In addition to county and probation representatives, Assistant Police Chief Dan Katz represented
the city of San Jose and provided the local law enforcement perspective on the proposal.
Specifically, Chief Katz pointed out that the frontline impacts of parole realignment would be
devastating to local law enforcement agencies. He supported this by pointing out that city police
provide services to over 80 percent of the state’s population, which includes the vast majority of
inmates who are paroled.
Chief Katz also urged the committee to realize that the LAO proposal should not be assessed in
isolation regarding impacts to law enforcement. The effects of a declining economy are severely
impacting city budgets in all areas as well. Any cuts to services in one area will have a trickle
effect to other areas of city budgets, including funding that is essential for public safety services.
La Mesa Council Member and League Public Safety Policy Committee Chair Dave Allan also
testified during the hearing. His remarks called attention to the fact that in addition to law
enforcement, the LAO proposes to eliminate fire protection funds by eliminating cities’ portion of
Prop. 172 funds.
The League recognizes that tough budget decisions will have to be made during the state’s
economic slowdown. This includes exploring options to realign or reorganize state services,
which is an appropriate policy discussion given the current fiscal crisis.
However, when the state realigns responsibility to another level of government, it should also shift
specific state revenues associated with the new responsibility to fund the program. An
appropriate and available funding source should be identified to fund the shift. Funds relied on to
protect public health and safety should not.
9
The subcommittee did not take specific action on the proposal. However, it is anticipated that
discussions regarding parole realignment, and how to pay for it, will continue.
____________________________________________________________________________
Letters Needed in Support of AB 642 Design-Build Contracting Legislation
City officials are urged to send in letters of support for AB 642 (Wolk). This legislation would allow
cities, upon approval of the city council, to utilize design-build contracting until Jan. 1, 2019 for
building construction projects as well as wastewater facilities, solid waste management facilities,
or water recycling facilities.
Currently, this method of contracting is available only to a handful of California cities. The League
supports allowing cities flexibility and different options in public works contracting to maximize
timeliness and cost-effectiveness. The streamlined design-build method of contracting has shown
it is effective in reducing project cost and expediting project completion. AB 642 would allow cities
to use design-build if a local agency desired, allowing cities the option of a more efficient process.
This bill will be heard in the Senate Local Government Committee soon and all support letters
and phone calls must be received by April 30.
A sample letter and talking points in support of AB 642 are available on the League’s Web site at
www.cacities.org/billsearch. Plug AB 642 in to the Bill Search function to find the sample letter.
For more information, please call Liisa Lawson Stark at (916) 658-8249.
____________________________________________________________________________
City Officials Encouraged to Complete Illegal Dumping Survey by May 16
City managers, in conjunction with other city departments that oversee solid waste issues, are
encouraged to participate in an important statewide survey on illegal dumping and litter
abatement. Developed by the League, the California State Association of Counties (CSAC) and
the California Integrated Waste Management Board (CIWMB), the survey is a shortened version
of a similar survey conducted two years ago.
The 2008 survey is critical to local governments. The previous survey produced a significant
database on the costs of illegal dumping to local governments as well as the demographics of
illegal dumping. Thirty-seven cities and 35 counties participated in the 2006 survey which found
that local governments spent $44 million annually on abatement and enforcement.
The 2008 survey must be completed by the extended deadline of Friday, May 16.
To participate in the survey, click here.
http://cacities.qualtrics.com/SE/?SID=SV_5c1w1ztiBze79Z2&SVID=Prod
_____________________________________________________________________________
City Officials Urged to Take Local Streets and Roads Assessment Survey Now
The Local Streets and Roads Needs Assessment project survey is now available online. City
officials should take the survey and report important factors impacting local transportation
systems. The survey is available at www.savecaliforniastreets.org and should be completed by
the end of May.
Participation from every California city will ensure a comprehensive report when the survey
results are presented to Gov. Arnold Schwarzenegger and the Legislature as part of a plan to
secure additional infrastructure funding for local jurisdictions.
The survey requests information on the various aspects of local transportation systems, including
the number of miles of streets and roads, pavement condition ratings, and non-pavement assets
like sidewalks, streetlights and traffic signals. The survey is also looking for information about the
available resources cities have to maintain these resources as well as what funding shortfalls
each city faces. 10
Please visit www.savecaliforniastreets.org for more information and to take the online survey.
_____________________________________________________________________________
Cities Should Apply for Prop. 1B Local Street and Road Funds Now
As of mid-April, 235 cities have received their FY 2007-08 Proposition 1B local street and road
funds, according to the Department of Finance (DOF). Cities that have not already submitted their
applications for Prop. 1B local street and road funds should do so immediately.
DOF sent all California cities a letter in January with Prop. 1B application instructions as well as a
list detailing each city’s proportional share of the funds.
These materials, along with the Prop. 1B Implementation Guidelines and a city-by-city list of
funds, are posted on the infrastructure page of the League’s Web site at
www.cacities.org/infrastructure.
_____________________________________________________________________________
Western City Magazine Wins Three CAPIO Excellence in Communications Awards
The League of California Cities’ Western City magazine was honored with three awards from the
California Association of Public Information Officials (CAPIO) on April 17 at its annual conference
in South Lake Tahoe.
CAPIO’s Excellence in Communications Awards recognizes outstanding public agency
information and communications programs.
Western City won in the following categories:
Special Innovation (third place): “How Should California Grow?” series. Click here for the series.
http://www.westerncity.com/grow
Writing (second place): “Two Columns about China” by League Executive Director Chris
McKenzie.
Click here for McKenzie’s first column.
http://www.cacities.org/index.jsp?zone=wcm&previewStory=26851
Click here for McKenzie’s second column.
http://www.cacities.org/index.jsp?zone=wcm&previewStory=26959
Writing (third place): “Crisis Leadership” column by League President Jim Madaffer.
Click here for Madaffer’s column.
http://www.cacities.org/index.jsp?zone=wcm&previewStory=26896
____________________________________________________________________________
Sustainable Cities Feature: Lincoln’s NEV Transportation Plan
Thanks to a special alternative transportation plan, Neighborhood Electric Vehicles (NEV) are
transforming the way residents get around Lincoln and improving the city’s air quality.
Lincoln, a city of about 38,000 on the eastern edge of the Sacramento Valley, has grown
dramatically since 1997 when the population was just 8,500 residents. That growth is the result of
California’s statewide growth spurt earlier this decade and the development of the Sun City active
adult community in Lincoln.
Sun City sparked the NEV program because the adult community had a golf cart transportation
plan so residents could move around the development in golf carts or NEVs at 15 miles per hour.
However, drivers weren’t able to legally access the shopping centers adjacent to the community
because they would have to travel roads with speed limits upwards of 35 mph.
11
A NEV is a four wheeled vehicle which is larger than a golf cart but smaller than a typical light-
duty car. They are defined by the U.S. National Highway Safety Administration’s Federal Motor
Vehicle Safety Standard as having top speeds between 20-25 miles per hour.
At the time, under California laws, NEVs could only be driven in golf cart communities and the city
needed to come up with a strategy to allow the vehicles to move about the entire city. That
strategy ultimately resulted in the Lincoln City Council drafting state legislation (AB 2353) to
create a pilot program whereby Lincoln and its neighbor, the city of Rocklin, could develop NEV
transportation plans. The bill passed in 2004, and August 8 will mark the two year anniversary of
Lincoln’s NEV plan.
In order to safely enable NEVs to drive on roads with speed limits of 35 mph or higher, Lincoln
had to create special signage and lanes. These specially striped lanes are seven feet wide and
are used by both NEVs and bicycles. The city has spent about $800,000 on the lanes and
signage. The NEV transportation plan proposes approximately 50 miles of NEV lanes and NEV-
designated routes. So far, Lincoln has completed about six miles of the special striping and
expects to finish by 2009.
Tom Cosgrove, a Lincoln council member, who was active in getting AB 2353 passed, believes
this program helped make Lincoln a stronger community.
“Most cities are looking for ways to grow that retains the charm of their communities, so when
residents asked us to help expand the range of neighborhood electric vehicles within our city, we
saw an opportunity to connect our neighborhoods without adding cars,” he says. “We need to
provide the infrastructure so that we can be sure that NEVS can work in our city and this will also
be an example to other communities on how this can work for them, too.”
Lincoln’s growing reliance on NEVs helps reduce traffic around town and air pollution. These
vehicles use electricity instead of gas so they don’t have the “cold start” problem of a regular car.
Furthermore, NEVs’ energy efficiency is quivalent to 150 miles per gallon of gasoline. Today
there are 600 NEVs in Lincoln and the city wants to increase that number to 5,000 by 2025. The
NEVs in use in the city today eliminate approximately 10 tons of air pollution annually. According
to John Pedri, public works director, this saves 42,500 gallons of gas each year.
Although originally designed to connect residents of the active adult community with the rest of
Lincoln, NEVs have become popular throughout the city. A community group in the city has
launched a Web site dedicated to NEVs at www.lincolnhillslsv.com.
Lincoln’s NEV Transportation Plan is available as a PDF online.
http://www.ci.lincoln.ca.us/pagedownloads/Final%20NEV%20Transportation%20Plan.pdf
More information about the city of Lincoln can be found at www.ci.lincoln.ca.us.
____________________________________________________________________________
Court Validates Cooperative Purchasing Through U.S. Communities
A ruling issued April 10 by a Los Angeles Superior Court judge rejected claims that the city of Los
Angeles violated antitrust and other laws when it agreed to pool its purchasing power with other
agencies through U.S. Communities to procure better pricing in its purchase of copy machines.
The case potentially would have affected the purchasing power of tens of thousands of public
agencies across the U.S. and could have jeopardized millions of dollars in taxpayer savings.
In 2007, Canon Business Solutions-West sued Los Angeles for allegedly engaging in anti-
competitive conduct after the city issued a request for quotations (RFQ) and awarded a master
agreement to another company. Under the city’s RFQ, the successful bidder would have to offer
the same price to public agencies nationwide under the U.S. Communities program. Canon did
not want to offer the same pricing nationwide and argued that the U.S. Communities program
invited public agencies to effectively collude on setting national prices. Canon claimed that it was
unfair to force bidders to offer their products at a single price nationwide.
12
The city and U.S. Communities demonstrated to the Court that aggregating purchasing
agreements actually benefits competition and results in lower costs to local governments. It also
eliminates lengthy and expensive procurement procedures for the agencies that agree to
participate in the program. Los Angeles and U.S. Communities also argued that the agreements
also help suppliers, who, as successful bidders, secure instantaneous access to a broad range of
markets.
The judge denied all of Canon’s claims. As to its antitrust allegations, the Court held that: “[A]ll
governing courts and agencies have concluded that group purchasing agreements are pro-
competitive and do not constitute a violation of antitrust laws.”
This case validates the close partnership between U.S. Communities, the city of Los Angeles,
and thousands of other public agencies who are working together to provide unparalleled value in
public procurement.
Please contact James Hamill with U.S. communities with further questions by e-mail at
jhamill@uscommunities.org.
Visit www.uscommunities.org for more information about the cost-saving contracts available
through U.S. Communities.
____________________________________________________________________________
Legislature Welcomes Two New Leaders This Spring
April and May bring new leadership to the Legislature with Senator Dave Cogdill (R-Fresno)
assuming his new role as Republican Leader April 15, and Assembly Member Karen Bass (D-Los
Angeles) will become Speaker of the Assembly on May 13.
In his new leadership position, Senate Republican Leader Cogdill will play a key role in the
budget this year. A former Modesto city council member, Sen. Cogdill was elected to the Senate
in 2006 after serving for six years in the California State Assembly. The senator was first elected
to public office in 1975 as a member of the board of directors of the Bridgeport Fire Protection
District in Mono County.
He is vice chair of the Senate
Public Safety, the Revenue and
Taxation and the Legislative Audit
Committees and sits on a number
of other committees including
Budget and Fiscal Review; Budget
Subcommittee on Health and
Human Services, Elections,
Reapportionment and
Constitutional Amendments,
Human Services, Natural
Resources and Water, Joint
Legislative Budget, and Select
Committee on Air Quality. The
senator has also been very active
in the effort to put together a water
supply package for California.
Assembly member Karen Bass will
make history in mid-May when she becomes Speaker of the California Assembly. She will be the
first African American woman to serve in this powerful state legislative position.
Senate Republican Leader Dave Cogdill (R-Fresno)
13
A long-time community activist,
Speaker-Elect Bass came to the
Assembly in 2005. Listed among her
key legislative interests are affordable
housing and job creation—two issues
of paramount concern to all California
cities. Speaker Fabian Núñez selected
her as the Majority Floor Leader for
the California State Assembly during
the 2007-2008 legislative session,
making her the first African American
and the first woman to hold this
leadership position.
During the 2005-2006 legislative
session, the Speaker-Elect served as
the Majority Whip. She also serves as
the chair of the Select Committee on Foster Care. As the vice chair of the Legislative Black
Caucus, Speaker-Elect Bass commissioned a report to research the basic demographic profile of
Black Californians including the basic social and economic conditions.
____________________________________________________________________________
Governor Appoints New Secretary of the Department of Corrections and
Rehabilitation
Gov. Arnold Schwarzenegger appointed Matt Cate as the Department of Corrections and
Rehabilitation (CDCR) secretary, following the announcement that current CDCR Secretary
James Tilton will retire May 16 for health reasons.
Cate has pledged to work with stakeholders at the state and local levels and to continue the
projects begun under Secretary Tilton, including those that address re-entry facility placement,
prison overcrowding, and prisoner health.
In March 2004, Gov. Schwarzenegger appointed Cate CDCR inspector general. Prior to this
position, he served as a deputy attorney general with the California Department of Justice from
1996-2004, including as a supervising deputy attorney general from 2002-2004.
___________________________________________________________________________
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.
_____________________________________________________________________________
Speaker-Elect Karen Bass (D-Los Angeles)
IN THIS ISSUE: May 2, 2008
Issue #17-2008
Page 3: Gov. Arnold Schwarzenegger Opposes Prop. 98
Support Letters Needed for Bill To Consolidate Office of Homeland Security and Office of Emergency Services
Page 4: A Reminder on the Upcoming Digital TV Transition
Page 5: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
BUDGET ACTION DAY SCHEDULED FOR WEDNESDAY, MAY 21
The League is holding a special one day event on May 21, following the release of the May
Budget Revise, to bring city officials to Sacramento to lobby their legislators and administration
officials on the impact of the budget on cities. The session is designed so city officials can come
just for the day. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
REGISTER NOW FOR MAYORS AND COUNCIL MEMBERS EXECUTIVE FORUM
Monday, May 12 is the deadline to register for the League’s 2008 Mayors and Council Members
Executive Forum and Advanced Leadership Workshops. Slated for Wednesday, June 4 –
Saturday, June 6, the annual event will be held at the Resort at Squaw Creek in Squaw Valley.
For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
ABSENTEE BALLOTS TO BE MAILED NEXT MONDAY
Advise Your Family and Friends Prior to Voting
Ready or not…here they come. Beginning Monday, May 5, county election officials are expected
to mail ballots to permanent absentee voters. Even though Election Day is June 3, voting by mail
could start as early as next week. Experts project that up to 60 percent of citizens could vote in
June by mail! For more, see Page 2. 2
‘Budget Action Day’ Continued from Page 1…
With California’s fiscal crisis, the FY 2008-09 budget negotiations are predicted to be extremely
difficult. The final signed budget will likely include a combination of significant cuts and revenue-
generating solutions, and the May Revise (scheduled to be released May 15) will set the tone for
the coming weeks of negotiations. California cities need to join forces to respond to any relevant
May Revise proposals to ensure cities’ needs are heard and understood in the Capitol.
Schedule of Events
10 – 11:30 a.m., May Revise Budget Briefing
Sheraton Grand Hotel Sacramento, Bataglieri Room
1230 J Street
Sacramento, CA 95814
11:30 a.m. – 3:30 p.m., Time for Scheduling Lunch and Lobbying Appointments with
Legislators
3:30 – 4:30 p.m., Post-Lobbying Debrief (Stop by the League offices for light snacks and
refreshments)
League of California Cities
1400 K Street, 4th floor conference room
Sacramento, CA 95814
R.S.V.P.
Please R.S.V.P to League Staff Meghan McKelvey by Wednesday, May 14 at
mmckelvey@cacities.org or (916) 658-8253.
District Budget Meetings
City officials who are unable to make the trip to Sacramento May 21, are encouraged to contact
their League public affairs manager to schedule a district meeting with their legislator.
_____________________________________________________________________________
‘Executive Forum’ Continued from Page 1…
Created for mayors, mayor pro-tems, council members, city managers and assistant city
managers, the three-day conference is designed to equip city leaders with the skills they need
and offer practical workshops for planning ahead for the challenges their city is facing. Session
topics include:
• Achieve Substantial Water Saving in Your City
• Strategies for Council-Manager Conflict Resolution
• Gang and Violence Protection
• Delivering Messages in the Media Interview
• Land Use and Climate Change
Advanced Leadership Workshops will be offered Friday, June 6 – Saturday, June 7. Participants
may choose from one of three workshop tracks: economic development, meeting management or
city finances. A separate fee is required for Advanced Leadership Workshops.
To register online, visit www.cacities.org/events.
For more information, contact Brian Sanders, the League’s education program director, at
bsanders@cacities.org or (916) 658-8238.
_____________________________________________________________________________
‘Absentee Voting ’ Continued from Page 1…
In addition to congressional and state legislative primaries, the only two statewide ballot
measures are Propositions 98 and 99. The League opposes Prop. 98 because it will undermine 3
local land use regulations, water supply development projects, public works projects,
environmental protection laws and affordable housing programs. In contrast, the League supports
Prop. 99 because it protects single-family homes from eminent domain without the hidden
provisions of Prop. 98.
Since early voting could start next week, city officials are urged to get information on these and
other issues on the ballot in order to better advise their friends, family members and constituents.
For more information, see www.cacities.org.
All communications by city officials should be on city officials’ personal time, using personal
equipment and email accounts.
_____________________________________________________________________________
Gov. Arnold Schwarzenegger Opposes Prop. 98
On Friday, April 25, Gov. Arnold Schwarzenegger announced his opposition to Proposition 98,
joining a growing bipartisan coalition of California officials and groups opposed to the measure.
Prop. 98 purports to offer eminent domain reform but in reality would destroy renter protections
and rent control, gut environmental protections and jeopardize the state’s ability to rebuild aging
infrastructure. One of the Governor’s top priorities is water and Prop. 98 would threaten the
adequate supply of clean, safe drinking water for future generations.
Also slated for the June 2008 ballot is Prop. 99, the Homeowners Protection Act. This measure
offers true eminent domain reform, by prohibiting the government from using eminent domain to
take a home to transfer to a private developer. Prop. 99 is supported by a broad coalition of
homeowners, business, labor groups, cities, counties and environmentalists.
Along with Gov. Schwarzenegger’s opposition to Prop. 98, other high level state and national
officials and organizations have publicly opposed Prop. 98 and/or supported Prop. 99 including:
• U.S. Senator Diane Feinstein opposes Prop. 98 and supports Prop. 99
• State Treasurer Bill Lockyer opposes Prop. 98 and supports Prop. 99
• Former Gov. Pete Wilson opposes Prop. 98
• California Transportation Commission opposes Prop. 98
• Speaker of the House, U.S. Rep. Nancy Pelosi (D-San Francisco) opposes Prop. 98 and
supports Prop. 99
• U.S. Representative George Radanovich (R-Mariposa) opposes Prop. 98
• Assembly Member Patricia Wiggins (D-Santa Rosa) opposes Prop. 98 and supports
Prop. 99
For more information about the two measures, visit www.no98yes99.com.
_____________________________________________________________________________
Support Letters Needed for Bill To Consolidate Office of Homeland Security and
Office of Emergency Services
The consolidation of the Office of Homeland Security (OHS) and the Office of Emergency
Services (OES) into a single Department of Emergency Services and Homeland Security made
positive progress this week as AB 38 (Nava) moved to the Senate Appropriations Committee.
The League supports AB 38 because it would streamline emergency and disaster response
through a single state department, creating a more cohesive and responsive system.
The new department would be responsible for overseeing and coordinating emergency
preparedness, response, recovery, and homeland security activities. These duties were
previously split between OHS and OES, creating confusion and conflict for local agencies in times
of urgency.
4
In September 2007, the League board approved a resolution by the League’s Public Safety Policy
Committee endorsing combing both departments into one. The Department of Emergency
Services and Homeland Security will put a cohesive system in place to help local agencies
respond to and manage disastrous events.
Take Action!
City officials are urged to send a letter of support on AB 38 to the Senate Appropriations
Committee as well as encourage their city to pass a resolution in support of the bill.
The League’s support letter to the Senate Appropriations Committee is available online at
www.cacities.org/billsearch. Plug in AB 38 to the bill search function to access the League’s letter
of support and a sample letter of support.
The League’s supporting resolution from 2007 can be found online at
www.cacities.org/resolutions.
____________________________________________________________________________
A Reminder on the Upcoming Digital TV Transition
TV stations across the country will switch from analog to digital television (DTV) on Feb. 17,
2009. Before this federally mandated transition occurs, however, the public will need information
about how to convert their televisions to the new format, and some may turn to their city for help.
The following is a quick primer on the transition to better serve city residents.
What is Digital TV?
DTV provides crystal clear pictures and higher quality sound as well as the capacity for more
channels. Unlike analog signal, DTV transmits the sound and picture information as “data bits”
similar to a computer. Stations will be able to broadcast multiple channels simultaneously with
this new technology. This technology also offers other features such as enhanced closed
captioning ability.
Switching to DTV
According to the National Association of Broadcasters, approximately 1.99 million California
households use a traditional antenna and will not continue to receive free television after the
conversion date without taking one of three actions:
• DTV Converter Boxes. Consumers without cable who have a traditional analog TV will
need to purchase a DTV converter box. This is an electronic device that connects to
analog televisions and over-the-air antennas to convert the digital signal to analog. The
cost is expected to be $50-$70.
The National Telecommunications and Information Administration (NTIA) will be issuing
coupons for DTV converter boxes in early 2008. Each household can apply for two
coupons. The coupons are valued at $40 each and can be used towards the purchase of
the DTV converter box. They must be redeemed within three months.
For more information about the coupon program please visit
www.ntia.doc.gov/dtvcoupon.
• Digital TV sets. TVs with a built-in digital tuner will be able to receive digital signals
broadcast by stations. Consumers with these TVs will still get their free programming
without paying a monthly fee.
• Paid Service. Consumers who subscribe to a cable, satellite or telephone company
service provider will continue to be able to use their existing TV to receive local broadcast
stations carried by their service.
NAB has set up a Web site with information for consumers at www.dtvanswers.com. 5
_____________________________________________________________________________
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.
_____________________________________________________________________________