IN THIS ISSUE: August 8, 2008
Issue #31-2008
Page 6: Disappointing Court Decision in Favor of PERB’s Exclusive Jurisdiction over Labor Disputes
Solid Waste Legislation Moves through Legislature
Page 8: League Issues Comments on ARB Draft Scoping Plan
AB 2176 Becomes Law
Page 9: Priority Focus Requests Sustainable Cities Feature Ideas
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEAGUE BOARD UNANIMOUSLY SUPPORTS SB 375
Legislation Moves off Suspense
Earlier this week, the League board of directors voted unanimously to support SB 375, as
amended. The League’s final support of SB 375 (Steinberg), a bill with significant land use and
transportation policy implications, was the result of many months of negotiations by the League,
various stakeholders, and Sen. Steinberg (D-Sacramento), the bill’s author. Sacramento Mayor
and League First Vice President Heather Fargo joined Sen. Steinberg and others at a news
conference at the Capitol on Wednesday, Aug. 6, to announce the League’s support of the bill
with amendments. For more, see Page 2.
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LEGISLATURE RETURNS: PRESS CONFERENCES, DUELING MEMOS,
STANCES ON BORROWING, NO PROGRESS
Although there was a lot of activity and action in the capitol this week, not much progress was
made on the budget. Now, almost six weeks overdue, things have come to a standstill between
the Democrats, Republicans and Gov. Arnold Schwarzenegger. For more, see Page 2.
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CITY LEADERS CONTINUE TO “CUT UP THE CARD” AT EVENTS
ACROSS CALIFORNIA
The push to urge state lawmakers to cut up the Local Government Credit Card continued late last
week and into this week at press conferences in Salinas, Orange County, the Inland Empire,
Modesto and San Luis Obispo. For more, see Page 4. 2
‘SB 375’ Continued from Page 1…
“City officials across California are deeply committed to implementing plans to reduce green
house gas emissions, and the League appreciates Sen. Steinberg’s leadership in authoring and
brokering an agreement on SB 375,” said Fargo. “We are proud to give our unanimous
endorsement of this historic legislation.”
Joining Sen. Steinberg at the podium was Sen. Denise Ducheny (D-San Diego), the co-author of
SB 375. Sen. Stenberg and others present spoke about the importance of this legislation for
California’s history and how all the parties involved had to compromise to come up with a final bill
that will advance the state’s efforts to address climate change, energy efficiency and
environmental protection.
The press conference Wednesday morning included all the major stakeholders of SB 375. Mayor
Fargo and Rancho Cordova Council Member Ken Cooley represented the League. Yolo County
Supervisor Mike McGowan spoke on behalf of the California State Association of Counties
(CSAC).
The two environmental groups sponsoring the legislation were present at the event: Tom Adams,
president of the board of the California League of Conservation Voters and Ann Notthoff, the
California advocacy director of the National Resources Defense Fund. Ray Becker, the 2008
California Building Industry Association (CBIA) chair, commented on the fact that he was
pleasantly surprised to be standing with Adams supporting legislation. Ed Manning, a lobbyist
representing the Major Builders Association, echoed Becker’s comments.
Next Step
SB 375 was taken up by the Assembly Committee on Appropriations on Thursday, Aug. 7, where
it was moved off the suspense file. Sen. Steinberg and the stakeholders supporting the bill are
optimistic that it will go to the full Assembly for a vote and on to Gov. Arnold Schwarzenegger’s
desk to be signed.
SB 375 History
The developments that occurred this week represent a monumental shift from where the League
board was as recently as late last month. Introduced in 2007, the League has long understood
that SB 375 presented a historic opportunity to reward land use and development decisions that
help reduce greenhouse gas (GHG) emissions.
Deeply committed to reducing GHGs, many California cities are already implementing plans to
reduce their carbon foot prints and promote energy efficiency. Transportation and housing
planning are key to creating communities with both a high quality of life and lowered emissions.
The League’s staff and board of directors devoted so much attention to SB 375 because of the
belief that it could better align a variety of regional planning functions for housing, transportation
and land use to help California cities both build more sustainable cities and meet the need for
more affordable housing.
Resource
For an overview of the amendments to SB 375, a document is now available on the League’s
Web site as a resource at www.cacities.org/resource_files/27104.375DealSummary.pdf.
_____________________________________________________________________________
‘Budget’ Continued from Page 1…
Dueling Loggerheads
In what can be characterized as “dueling loggerheads,” Senate Pro Tem Perata (D-Oakland) and
Senate Republican Leader Dave Cogdill (R-Fresno) exchanged statements on the budget on
Aug. 5.
Sen. Perata said that he thought the Governor’s proposal for a temporary tax increase was “a
step in the right direction,” while expressing his frustration that he believes the Republicans are
being too “narrow” in terms of budget compromise. The Republicans, said Perata, have not 3
offered any budget solutions, only objections. He said that the two sides are “now at loggerheads”
with an impasse.
Sen. Cogdill released a response countering the Senate Pro Tem’s “loggerhead” statement. He
said that the budget impasse is because “the Big Four” have not met in two weeks and that the
Republicans have in fact proposed ideas to close the budget without raising taxes.
To Borrow or Not to Borrow
To borrow or not to borrow is one of the on-going budget questions being debated. The League
launched www.cutupthecard.com last week as a vehicle to communicate that the state needs to
close its deficit without borrowing local government revenues.
Five more press conferences across the state in the past week have provided an opportunity for
city officials to stand up publicly and cut up the “Local Government Credit Card.” The message
continues to resonate as more and more cities pass resolutions urging the Legislature to draft a
budget that does not rely on borrowed money.
This week, the presidents of three local government associations, the League, the California
State Association of Counties (CSAC) and the California Special Districts Association (CSDA)
sent a joint letter to the Governor and members of the Assembly and Senate. The letter reiterated
the organizations’ strong opposition to borrowing Propositions 1A (property taxes) and 42
(transportation) protected revenues.
The joint letter is available on the League’s Web site at
www.cacities.org/resource_files/27103.JointLocalAssnLetterAug52008.pdf.
The Governor has repeatedly said that he is against borrowing and that it is wrong to use local
government or transportation revenues to fix the state’s deficit. He reinforced his position at his
Aug. 6 press conference once again.
“Because we have gone through this before, just as recently as 2003, when both parties were
there at a standoff and they could not move forward. And one said we won’t raise taxes, the other
one said we won’t make cuts and we won’t and we won’t. And what happened? They borrowed
and they took money and stole money left and right. And now they just kicked that can down the
alley and now we have the same problem again,” said the Governor.
He continued: “And I think it is important to not go in the direction of borrowing again, because
that’s what they have done in 2003; they have borrowed their way out of it. And I have said that
borrowing is not the solution for ongoing programs, we cannot borrow for ongoing programs. I
think it is not a good thing to do.”
The Governor’s press conference is available on his Web site at http://gov.ca.gov.
Senate Republican Leader Dave Cogdill (R-Fresno) however said this week that borrowing local
government and transportation revenues is still on the table. In an interview with KQED’s John
Myers, broadcast on the California Report on Aug. 6, the senator acknowledged that Republicans
might be willing to borrow from voter protected local government and transportation funds. He told
Myers that such borrowing would have to be accompanied by a “strong plan” to repay the money.
The California Report is available online at www.californiareport.org.
What’s Next
During the Governor’s press conference, he announced that he will not sign any bills until a
budget is passed. In fact, the Governor told reporters that he would veto any bill sent to him. This
has caused quite a stir in the Capitol. There are some ways that the Legislature can delay
sending the Governor bills. It is not yet clear what the fate will be of legislation that is going to be
sent to the Governor or has been sent to him.
_____________________________________________________________________________
4
‘Cut Up the Card’ Continued from Page 1…
The city officials held up and cut giant and small mock Local Government Credit Cards, sending
the message that the state should close its budget deficit without using local government
revenues. Many city councils are also passing resolutions and sending legislators letters to
reinforce this message.
The four press conferences held between Aug. 1 and Aug. 6, were well attended by city officials
and attracted the attention of reporters across the state. Details on each press conference is
given below, including links to some of the coverage.
Salinas: Salinas City Hall, Aug. 1
The Salinas press conference brought together a large coalition of officials. Assembly Member
Anna Caballero (D-Salinas), the former mayor of Salinas, spoke with reporters. Along with
mayors and council members from across the region, public safety and transportation personnel
were also present. Salinas Mayor Dennis Donohue spoke to reporters, cutting up a credit card as
part of his presentation. Monterey City Councilman Frank Sollecito and Scotts Valley Council
Member Stephany Aguilar also attended the event.
Press coverage of the event included:
• KCBA-TV 35 (Fox)/KION-TV 46(CBS)
• KSMS-TV 67(Univision)
• KSBW-TV 8 (NBC)
• KSCO-AM 1080
• Salinas Californian
• Monterey County Herald
• Watsonville Register Pajaronian
Orange County: Tustin Civic Center, Aug. 5
Twenty-three city officials participated at the Orange County press conference on Monday, joining
public safety officials and leadership from the private sector. Tustin Mayor Jerry Amante cut up
the card at the end of the reporter questions and some elected officials threw them on the ground.
Orange County elected officials also posed with a giant credit card and oversized scissors.
City officials who spoke at the press conference included:
• Tustin Mayor Jerry Amante
• Lake Forest Council Member Peter Herzog
• Irvine Mayor Beth Krom
City officials present who did not speak included:
• Brea Council Member Marty Simonoff
• Brea Council Member Roy Moore
• Brea Mayor Pro Tempore John Beauman
• Buena Park Mayor Jim Dow
• Costa Mesa Mayor Pro Tempore Allan Mansoor
• Cypress Mayor Pro Tempore Leroy Mills
• Dana Point Mayor Pro Tempore Lisa Bartlett
• Fullerton Council Member Pam Keller
• Garden Grove Council Member Steve Jones
• Laguna Niguel Mayor Paul Glaab
• Laguna Niguel Mayor Pro Tempore Robert Ming
• Laguna Beach Council Member Toni Iseman
• Los Alamitos Council Member Dean Grose 5
• Mission Viejo Mayor Trish Kelley
• Placentia Mayor Steve Nelson
• Rancho Santa Margarita Mayor Neil Blais
• Tustin Mayor Pro Tempore Doug Davert
• Tustin Council Member Lou Bone
• Tustin Council Member Jim Palmer
• Villa Park Council Member Richard Ulmer
Reporters came to the press conference to hear the local officials’ message. Media present
included:
• The Orange County Register
• Daily News
• Laguna Beach Independent
• KNBC
• FOX 11/TV 13
• Telemundo 52
• Metro Network News
Inland Empire: Redlands City Hall, Aug 5
The Inland Empire event held in Redlands was well attended by city officials including:
• Redlands Council Member Pete Aguilar
• Rancho Cucamonga Council Member Dennis Michael
• Paul Benson, Fire Chief, Chino Valley Independent Fire District
Deborah Barmack, SANBAG executive director and Bo Blough, general manager, San
Bernardino Public Employees Association, also participated in the event.
The event was well attended by the media, including several Los Angeles-based TV stations.
Coverage included:
• San Bernardino Sun
• Inland Valley Daily Bulletin
• Redlands Daily Facts
• ABC 7 (Los Angeles)
• Fox 11 (Los Angeles)
Modesto: 1010 Tenth Street, Aug. 5
Many Central Valley city officials turned out for Monday’s Modesto press conference including:
• Hughson Mayor Pro Tempore Ramone Bawanan
• Ceres Mayor Anthony Cannella
• Modesto Mayor John Ridenour
• Modesto Police Chief Roy Wasden
• Modesto Fire Chief James Miguel
• Newman Mayor John Fantazia
• Oakdale Mayor Farrell Jackson
• Oakdale Police Chief Marty West
• Patterson Mayor Becky Campo
• Riverbank Mayor Chris Crifasi
• Turlock Mayor John Lazar
• Turlock Police Chief Gary Hampton
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Reporters attended the event from various media outlets including:
• The Modesto Bee
• The Turlock Journal
• Latino Times
• Fox 40 News
• Central Valley Report (cable)
• KFIV-FM
San Luis Obispo: San Luis Obispo County Court House, Aug. 6
The San Luis Obispo was well attended by city officials. Speakers representing city government
included:
• Arroyo Grande Mayor Tony Ferrara
• Grover Beach Mayor John Shoals
In addition, there were many city officials present at the event who did not speak including:
• Atascadero Council Member Tom O’Malley
• Morro Bay Mayor Janice Peters
• Paso Robles Council Member Fred Strong
• Pismo Beach Mayor Mary Ann Reiss
• San Luis Obispo Council Member Christine Mulholland
• San Luis Obispo Mayor Dave Romero
News media from San Luis Obispo and Santa Barbara sent reporters to the event including:
• KEYT-TV
• KCOY-TV
• KSBY-TV
• San Luis Obispo Tribune
_____________________________________________________________________________
Disappointing Court Decision in Favor of PERB’s Exclusive Jurisdiction over Labor
Disputes
The Third District Court of Appeal held last week that the Public Employment Relations Board
(PERB) has exclusive initial jurisdiction over labor disputes between local agencies and their
employees who are essential to preserving the public’s health and safety. The case is County of
Sacramento v. AFSCME Local 146.
Priority Focus previously reported on three prior court decisions that addressed this issue. In two
of those prior decisions, the courts agreed with the Third District and held that PERB does have
exclusive jurisdiction. However, earlier this year, the First District Court of Appeal came to the
opposite conclusion and ruled PERB does not have exclusive jurisdiction over these types of
disputes.
The California Supreme Court recently decided to accept two of the prior decisions for review.
The Supreme Court’s grant of review means that the question of PERB’s jurisdiction will be
definitively resolved. The League will be filing a friend-of-the-court brief with the Supreme Court,
and will provide future updates through Priority Focus.
_____________________________________________________________________________
Solid Waste Legislation Moves through Legislature
The League is engaged in monitoring and negotiating on several important waste-related bills this
legislative session. These bills focus on solid waste diversion, disposal and fees. Following some
background is a summary of the current package of bills, what each does, the League’s position
and its status. 7
Background
All cities in California under current law are required to divert 50 percent of their solid waste from
their landfill. This mandate, over the past 19 years, has led to a major effort by local governments
to recycle waste, not dump it in a landfill. California has 54 percent diversion rate statewide for
reuse, recycling and composting. However, individually, some California cities have as low of a
diversion rate as 2-3 percent and others are well above 50 percent.
Diversion rates are calculated by taking a city’s “base year generation of solid waste” minus the
estimated disposal tonnage going to landfill. This formula is problematic because it’s both
complicated and has lead to a numbers game over the years.
A number of groups, including the California Integrated Waste Management Board (CIWMB) and
the League, hold the position that the current system for counting diversion rates is incomplete
because it is based on an estimate. Many cities report difficulty meeting the solid waste diversion
mandate even when they have implemented a large number of diversion programs. Some cities
struggle because of growth, others struggle with the mandate because their programs perform
below expectation. SB 1016 (Wiggins) attempts to address this issue by moving the focus from
numbers to programs (this is explained further in the bill section).
In addition to looking at numbers and programs in achieving lower levels of solid waste disposal
in California, SB 1020 (Padilla) attempts to provide tools to help local jurisdictions achieve higher
levels of waste diversion. Tools that have been suggested in the past include commercial
recycling mandates, extended producer responsibility mandates, diversion credit for emerging
technologies (conversion of solid waste to energy), additional credits for host jurisdictions, and
assisting local governments who are attempting to site new transfer stations, compost facilities
and recycling facilities.
Diversion Bills
SB 1016 (Wiggins) Diversion: compliance: per capita disposal rate
This bill changes the existing solid waste diversion management system to a disposal based
measurement system from the current emphasis on meeting the 50 percent solid waste diversion
requirement to emphasizing local programs that help meet the new goal of reduced per-capita
disposal of solid waste.
League position: Support
Status: Assembly Floor
SB 1020 (Padilla): Diversion (as proposed to be amended)
This bill, as proposed to be amended, increases the mandated statewide diversion rate from 50
percent to 60 percent by 2012 and requires a target statewide aggregate goal of 75 percent
waste diversion by 2020. The bill also includes mandated commercial recycling on any business
in California that produces over four cubic yards of waste per week. SB 1020 would require any
city or county, or city and county within a county with a population of over 200,000, to adopt an
ordinance to enforce the commercial recycling mandate in the bill.
League position: None
Status: Assembly Appropriations Committee Suspense File
Solid Waste Tipping Fee Bills
There are two bills related to the statewide solid waste tipping fee. This tipping fee is set at $1.40
per ton of solid waste and is remitted by local jurisdictions to the state’s Integrated Waste
Management Fund. Most local governments charge an additional local tipping fee that funds local
programs.
8
AB 2866 (De Leon) Solid Waste: Solid Waster disposal fees: postclosure trust fund
This bill increases the state solid waste tipping fee from $1.40 per ton to $2 per ton beginning July
1, 2009 and would direct the additional funding to be used for clean fuel demonstration solid
waste vehicles and solid waste landfill closure/post-closure fund.
League position: The League board unanimously voted to continue opposing AB 2866. It was
concerned that the state would be enacting a fee that would fund programs that are outside the
purview of the CIWMB (i.e., clean fuel demonstration projects would be run by the Air Resources
Board even though the fee is collected by the CIWMB). The board also took issue with the
closure/postclosure provisions of the bill.
The committee was concerned about whether local governments should pay into the
closure/postclosure fund established under the bill when local government owner/operators can
already meet their mandated financial assurance obligations with a “pledge of revenue.”
Status: Senate Appropriations Committee (failed passage on Aug. 4, but is expected to be
brought back up on a reconsideration vote)
AB 2640 (Huffman) Solid Waste: compostable organics management
This bill would require CIWMB to adopt policies and develop programs to reduce 50 percent of
compostable organic material in solid waste landfills by the year 2020, increase the “tipping fee”
to $2.00 per ton on any green material that goes into a landfill and is used as Alternative Daily
Cover (ADC). It also creates new grant and loan programs.
AB 2640 is double joined to AB 2866 (De Leon). If AB 2866 becomes law, an operator of a
disposal facility would pay the amount equivalent to the state tipping fee for the amount of green
materials used as ADC that exceeds 7 ½ percent of the amount of solid waste disposed at that
site.
League position: Support
Status: Senate Appropriations Committee Suspense File
_____________________________________________________________________________
League Issues Comments on ARB Draft Scoping Plan
The California State Air Resources Board (ARB) recently released its draft scoping plan. ARB is
responsible for the implementation of California’s climate change law (AB 32), the draft plan
represents ARB’s proposal on how to reach California’s climate change goals of reducing
greenhouse gas emissions (GHG) to 1990 levels by 2020.
A copy of ARB’s plan can be found online at the State’s Climate Change Web portal.
http://www.arb.ca.gov/cc/scopingplan/document/draftscopingplan.htm.
The League has held a number of conference calls to discuss the plan and the League's
comments. A copy of the League’s final letter is on the Web site at
www.cacities.org/resource_files/27105.Scoping Plan Comment Letter 8aug08 FINAL _2_.pdf.
Comments from the draft will be integrated into ARB's Preliminary Scoping Plan, which is due to
be released Oct. 1, with a subsequent 45-day comment period. The final plan is expected to be
presented at the November ARB meeting.
_____________________________________________________________________________
AB 2176 Becomes Law
AB 2176 (Caballero), a bill that would aid in distribution of federal funds to cities through the
Federal Energy Efficiency Block Grant (EEBG) program was signed by Gov. Arnold
Schwarzenegger on Friday, Aug. 1. It will be effective Jan. 1, 2009.
9
As sponsor of AB 2176, the League has been working closely with the California Energy
Commission (CEC) to ensure the efficiency of the funding mechanism once this grant money is
allocated by the federal government.
Background
The EEBG program is part of the Energy Independence and Security Act (H.R. 6), which
President Bush signed into law in December 2007. The program would provide cities with federal
funding for innovative practices to improve energy efficiency, lower energy usage and reduce
fossil fuel emissions. Although H.R. 6 authorizes $10 billion ($2 billion per year 2008-2012), the
funds need to be appropriated by Congress each year as part of the federal budget process.
H.R. 6 splits up the $2 billion annual allocation into four different funding pots: 68 percent is
designated for cities and counties (local government pot), 28 percent for states (state pot), 2
percent for Indian tribes, and 2 percent for competitive grants to local governments or a consortia
of local governments who are ineligible for funding out of the other funding streams.
Cities with a population of 35,000 or more, and counties with a population of 200,000 or more (as
well as the top 10 most populous cities and counties in each state) will be eligible for funds out of
the local government pot.
AB 2176 addresses California’s portion of the state funding and would establish a mechanism
through which funds received by the state would then be passed on to cities and counties. H.R. 6
mandates that 60 percent of the state portion must go to cities and counties that are not eligible to
receive funding out of the local government pot (those not eligible would be cities under 35,000 in
population).
What’s Next
League staff will now focus on energy efficiency funding to lobbying the federal government to
fully fund the EEBG program at the authorized $2 billion per year. The backing for full funding is
strongly supported by California’s congressional delegation as well as the National League of
Cities (NLC).
_____________________________________________________________________________
Priority Focus Requests Sustainable Cities Feature Ideas
The League is asking cities to submit story ideas for the Sustainable Cities Feature which runs
every other week in Priority Focus. Launched in January, this relatively new feature highlights
different innovations California cities are implementing to promote energy efficiency and reduce
their carbon foot prints.
Each story runs between 400-750 words and focuses on one aspect of what a city is doing to
improve the environment. Previous stories have focused on a variety of city programs including:
integrated pest management, brown water recycling, tree planting, CNG vehicle purchasing
incentive program and food waste composting.
How to Submit Ideas
If your city is doing something revolutionary on the green front, please send a short description (a
few sentences) to League Communications Director Eva Spiegel via e-mail to
espiegel@cacities.org. Include your name, phone number and e-mail with the description.
_____________________________________________________________________________
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: August 15, 2008
Issue #32-2008
Page 5: Summit for Municipal Leaders on Climate Change Scheduled for Sept. 4
Legislation Improving Water Quality Goes to the Governor
Page 6: FACT Act Compliance Required by November
Paid Sick Leave Bill Conceivably Dead
Proposal for Second Prop. 1B Allocation Moves Forward
Page 7: Sustainable Cities Feature: San Leandro Secures Prop. 1C TOD Grant
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
STATE BUDGET NEGOTIATIONS GAIN SOME MOMENTUM
Almost seven weeks past the state Constitutional deadline, the budget continues to be the focus of intense
discussion and much speculation in Sacramento. The League has been in constant contact with California’s
479 cities in an effort to push hard for a responsible state budget that does not harm California cities by
relying on “borrowing” or otherwise taking local government property tax, transportation or redevelopment
funds. As of this writing, the Assembly is scheduled to take up the budget Sunday afternoon. Whether the
Senate will act earlier is uncertain. For more, see Page 2.
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NEW FEDERAL HOUSING LEGISLATION EXPECTED TO HELP
CALIFORNIA’S STRUGGLING CITIES
The recently signed Housing and Economic Recovery Act of 2008, (H.R. 3221), is expected to help
California’s housing market. There is $3.9 billion designated for local governments for foreclosure and
abandoned home assistance. H.R. 3221 also includes provisions to create further underwriting opportunities
for mortgages that are in danger of being foreclosed upon, establishment of a national Housing Trust Fund,
and several other service oriented provisions that fund housing programs for specific need populations.
For more, see Page 3.
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ARB REQUESTS LOCAL PARTICIPATION IN AUG. 20 SCOPING PLAN MEETING
The California Air Resources Board (ARB) is holding a meeting with local government officials on Aug. 20 in
Sacramento as part of its AB 32 mandated Climate Change Scoping Plan. Interested city officials can
participate either via the Web (Webinar) or in person and are encouraged to RSVP early.
For more, see Page 4. 2
‘Budget’ Continued from Page 1…
Details of Budget Proposal Remain Sketchy
Rumors emerged mid-week about a possible budget agreement between Senate Pro Tem Don Perata (D-
Oakland) and Gov. Arnold Schwarzenegger. Although the details of this agreement have not been released,
some of the themes remain: a temporary sales tax increase, additional cuts, some budget reform, etc. The
good news for cities is that so far the Pro Tem has repeatedly told the press that the deal does not involve
any borrowing.
The League is still working to determine if this budget deal includes a $200 million on-going take from
redevelopment funds. Such a proposal would have significant impact on cities and the state as a whole
because redevelopment funds provide vital economic stimulus and local infrastructure investments.
With the state’s commitment to meeting the goals of AB 32, the seizure of 5 percent of redevelopment funds
would only cause the state to lose vital ground in reducing greenhouse gas emissions. Redevelopment
agencies are the only local infrastructure and economic development tool that focuses on rebuilding urban
cores and expanding infill development—the type of development that is essential to altering land use
planning patterns to reduce emissions.
The California Building Industry Association (CBIA) and the Major Home Builders Council (MHBC) have
been actively working the Administration and Republican legislators in opposition to a redevelopment shift.
The League appreciates their focused efforts to try to prevent this terrible budget solution. The letter from the
CBIA underscores the fact the state will lose $20,000 in revenue for every unit of housing not constructed,
and redevelopment agencies are responsible for the construction of 10,000 affordable units each year—a
potential loss to the state of $160 million to the state.
Deadlines and Other Factors
There are some upcoming key deadlines and other factors which may impact the culmination of a budget
deal:
• California Secretary of State Debra Bowen set Saturday, Aug. 16 as the deadline (that often slips) for
measures to qualify for the November 2008 ballot. Changes to the high speed rail bond, any
Constitutional budget reform, and a possible water bond must be placed on the November ballot.
While lawmakers can change statutory deadlines that apply to placing issues on the ballot, the cost
of delay escalates and practical problems are created for election officials producing ballot
pamphlets.
• The Democratic National Convention starts Aug. 25 in Denver, Colo. and many Democratic
legislators had planned to attend. Senate Pro Tem Perata instructed his caucus to cancel their trips
without a budget. Some Assembly members, however, appear to be making plans to attend.
• Aug. 31 is the Constitutional deadline for the end of the 2007-08 legislative session. The Legislature
could continue in an emergency session after that deadline.
• The Governor has also vowed to veto all bills that reach his desk until a budget agreement is
reached. This may become more significant as the Aug. 31, adjournment date approaches.
League Engages City Officials, City Managers and Board
This week the League held several special meetings to update members and energize participation in the
budget process.
League Executive Director Chris McKenzie convened several conference calls on Tuesday, Aug. 12, with
city managers statewide to alert them to some facts and myths about the budget. The concern is that the
state budget could rely on mandatory “loans” of local government and transportation funds that may never be
repaid and a seizure of redevelopment funds.
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These calls were followed up by an emergency meeting with the League’s board of directors on Wednesday,
Aug. 13. Board members were given an up-to-date budget briefing and urged to make the state budget a top
priority for their cities.
McKenzie impressed upon the board members how their participation in calling legislators, holding them
accountable about the impact that “loans” or seizures would have on their constituents, and the ongoing
impact to the state’s structural deficit.
Call to Action: City Officials Make Your Voices Heard!
It is absolutely critical for city leaders make the state budget the priority for the coming weeks to ensure a
successful budget outcome. City officials should take action and continue to urge legislators to draft a budget
that does not seize local government revenues, transportation or redevelopment funds.
The League strongly urges city officials to engage in this budget fight. At this time, it is essential that city
officials stay in close contact with their League regional public affairs managers. They are providing daily
updates to their regions and the League may request participation in certain key activities in the coming
days. In the meantime, city officials can take six steps to help ensure a positive budget resolution for cities.
The action items are:
1. Ask community leaders to call legislators to oppose “loans” or raids — provide a concrete list of
impacts to them;
2. Call your legislator and stress your city’s opposition to “loans” or raids of local funds. Be specific
about the impacts;
3. Call the Governor [(916)-445-2841] and thank him for his support and ask that he continue to
oppose “loans” or raids of local government funding, transportation funding or redevelopment funds.
Be specific about the impacts;
4. Let your local news media know what is being contemplated by state leaders and how it would
hurt your city. Talk with editors about the legislature considering these fiscally irresponsible moves.
5. Invite community leaders and citizens to a TOWN HALL MEETING and talk publicly about what
legislators may do with specific impacts to your city. Notify the news media. Thank legislators who
oppose borrowing or local government raids.
6. Schedule time on your next council meeting agenda to discuss this issue, its impact on your city,
and your continued opposition. Ask your legislators for a commitment to fiscal responsibility and not
to harming local services.
Priority Focus will continue to report on all budget developments. Urgent updates will be sent directly to city
officials as events occur.
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‘HR 3221’ Continued from Page 1…
The potential for H.R. 3221 to offer California’s cities some relief from the foreclosure fallout couldn’t have
come sooner. The latest statistics regarding the current foreclosure landscape in California are staggering.
California continues to lead the nation in foreclosures. In June 2008 alone, California had 61,107
foreclosures.
The League has spent significant time analyzing the bill, and is drafting a white paper detailing the specifics
of the legislation which will be distributed in the near future. Cities throughout California stand to gain from
the legislation as money is appropriated in the coming months.
Several of the key topics covered by the legislation include:
4
Neighborhood Stabilization: Money for Local Governments
• H.R. 3221 will appropriate a one-time $3.9 billion in emergency Community Development Block
Grant (CDBG) funds to assist states and local government in the redevelopment of abandoned and
foreclosed homes and residential properties.
• Funding will be calculated and distributed to states and local governments with the greatest need,
which will be based on:
o Number and percentage of home foreclosures in each state or local government
o Number and percentage of homes financed by a sub-prime mortgage related loan
o Number and percentage of homes in default or delinquency
• This formula appears to be favorable to California since it has the highest amount of foreclosures of
any state. Using foreclosures as a barometer alone, California may receive as much as $800 million
of the funds, or more than 20 percent of the total.
“Hope for Homeowners” Program: More Mortgage Assistance
• The “Hope for Homeowners” program authorizes the Federal Housing Administration (FHA) to
refinance up $300 billion in mortgages of at-risk borrowers living in their homes who can afford to
make a reduced loan payment.
Housing Trust Fund
• Over the long term, the creation of a new Housing Trust Fund may be one of the most significant
provisions of H.R. 3221;
• Full funding will not occur until 2011. However, HCD will begin a process in the upcoming year to
develop a state plan for using and distributing this funding source in which cities will want to have a
voice; and
• Additionally, local agencies can start planning for the use of these funds. Those local agencies that
are currently updating their housing elements can include investigating how these funds can be used
within their communities as a program to be completed.
Other Programs
• H.R. 3221 provides $150 million nation wide for housing counseling services;
• Homeless assistance programs will be increased by an additional $30 million; and
• H.R. 3221 contains several provisions which make changes to the low income housing tax credit
program, which allows California to increase its bond cap limit and receive $1.2 billion of these funds.
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‘Scoping Plan Meeting’ Continued from Page 1…
Background:
ARB's Office of Climate Change (OCC) staff is seeking formal comment on the draft to help inform the final
Scoping Plan, scheduled to be released in October. In addition to these more formal settings, ARB wanted to
give each sector the opportunity to meet informally with OCC staff to discuss the next steps in the process
and to hear from local governments directly.
Specifically, ARB is offering local governments an opportunity to discuss the interface between a cap-and-
trade program and other efforts to reduce greenhouse gas emissions. The goal is that this process will lay a
solid foundation for future work. OCC Scoping Plan liaisons and other agency staff will attend the meeting.
Meeting Details
California Environmental Protection Agency Building, Room 230
*check in at front desk for room confirmation
Sacramento, CA
Wednesday, Aug. 20, 1:30-4:30 p.m.
5
Webinar Instructions
To participate by web conference, log on to www.readytalk.com, enter 4458251(the seven digit access code
number) and click to join the conference. Participants will be taken to a registration page before being placed
in the conference.
After submitting you will be placed into the conference. To participate by audio only call 1-866-740-1260 and
enter the seven digit access code number of 4458251.
RSVP
Please RSVP to both ARB Air Pollution Specialist Barbara Bamberger (bbamberg@arb.ca.gov or (916) 324-
2303) and League Legislative Representative Kyra Ross (kross@cacities.org).
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Summit for Municipal Leaders on Climate Change Scheduled for Sept. 4
League President and San Diego City Council President Pro Tem Jim Madaffer invites elected officials and
city staff to the Summit for Municipal Leaders on Climate Change Mitigation and Adaptation. Scheduled 8:30
a.m. to 5 p.m. on Sept. 4 in San Diego, this interactive forum will focus on the scope and intent of AB 32
within the broader context of climate change mitigation and adaptation.
The local government perspective will be presented on land use planning and CEQA, landfill management
and recycling, energy production, water and wastewater utilities, and transportation. Breakout sessions on
each topic and an executive session for elected officials will be held in the afternoon.
Summit participants will be given a summary of the municipal responses to the California Air Resources
Board’s (ARB) AB 32 Scoping Plan, along with the major findings from the San Diego Regional 2050 Study.
The objective is to provide a resource document that can help guide municipal leaders with operational,
financial and programmatic issues as AB 32 is implemented over the next few years.
The summit is co-sponsored by the City of San Diego, the League of California Cities, San Diego Gas and
Electric and the San Diego Foundation.
Location
Caltrans District 11 Administrative Office
4050 Taylor Street
San Diego, CA 92119
Please contact Linda Giannelli Pratt with the City of San Diego for additional information. She can be
reached by e-mail Lpratt@sandiego.gov or phone (858) 492-5088.
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Legislation Improving Water Quality Goes to the Governor
Both the Assembly and Senate passed AB 2270 (Laird & Feuer), a bill that would benefit city water quality
through the local regulation of the use of water softeners. Now moving to Gov. Arnold Schwarzenegger’s
desk for signature, the bill had bipartisan support throughout the legislative process.
Cities across California have increasingly had to deal with rising salinity levels in municipal wastewater.
Increasing levels of salt in treated water can reduce and even preclude the use of recycled water. This is a
serious issue in years like this one when the state faces such a critical water shortage. Residential water
softeners are one of the major contributors to this problem.
Under AB 2270, cities and water agencies would be able to restrict usage of specific types of water softeners
only if the Regional Water Quality Control Boards made a finding that control of residential salinity will
contribute to the achievement of water quality objectives in the region.
6
Take Action
The League supports this legislation because it would improve municipal water quality statewide. The
League asks city officials to send the Governor a letter to request his signature on this bill. A sample letter
can be found on the League’s Web site at www.cacities.org/billsearch. Plug in AB 2270 to find the letter.
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FACT Act Compliance Required by November
Final rules have been set out by the Fair and Accurate Credit Transactions (FACT) Act of 2003 which
requires compliance by November 1, 2008. The FACT Act added new provisions to the Federal Credit
Reporting Act to protect consumers against identity theft. New regulations published November 1, 2007
require financial institutions and creditors to develop and implement written identity theft prevention
programs.
It is important that city officials understand that they may be considered a “creditor” as it is defined in the act,
according to the Federal Trade Commission. A city could be considered a creditor if they provide for deferred
payments on goods or services. “Deferring payments” refers to postponing payments to a future date and/or
installment payments on fines or costs. Likely examples for cities may include providing public utility services
or providing a payment plan for parking tickets.
To comply with the new FACT Act regulations, known as the Red Flag Rules, entities will be required to
provide for the identification, detection, and response to patterns, practices, or specific activities (“red flags”)
that could indicate identity theft in their identity theft prevention programs.
The League is working to determine more clearly how the FACT Act could affect cities and will provide an
update in the near future. Please contact League Legislative Analyst Natasha Karl with questions at (916)
658-8254 or nkarl@cacities.org.
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Paid Sick Leave Bill Conceivably Dead
AB 2716 (Ma), the paid sick leave legislation the League has been tracking for months, failed to move
forward last week when it was not taken off the Senate Appropriations suspense file. This bill and issue may
be dead for the remainder of the 2008 legislative session.
Assembly Member Ma’s bill would have required every employer in California to provide one hour of paid
sick leave for every 30 hours worked to any employee who worked seven or more calendar days in a year.
Private sector employers labeled this bill as a “job killer and cost driver.” It also would have proved to be an
administrative nightmare to overlay the legislation’s requirements on top of existing local government sick
leave policies. This is particularly true as it applies to part-time and seasonal employees in public sector
employment.
Although AB 2716 is dead for this legislative session, it’s not going away permanently. Assembly Member
Ma says she remains deeply committed to the issue. Almost three years ago, Measure F, a measure nearly
identical to AB 2716, was passed in San Francisco, the district the Assembly Member represents. She has
promised to bring the bill back in the next legislative session, which is not surprising given her dedication to
the issue. City officials should expect a new version of AB 2716 in 2009.
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Proposal for Second Prop. 1B Allocation Moves Forward
The League’s proposal to include a Proposition 1B Local Streets and Roads allocation in the FY 2008-09
state budget is moving forward as Gov. Arnold Schwarzenegger’s office and legislative leadership are
currently reviewing the language.
The proposal, developed in collaboration with the Department of Finance (DOF), would allow cities who
already received their FY 2007-08, to receive funding on a first come, first serve basis. The language was
developed to ensure cities could program or spend the second allocation of funds within the next fiscal year
to drive economic growth through infrastructure improvements.
7
As of Aug. 8, 439 of California’s 478 cities have received their FY 2007-08 Prop. 1B funds, according to the
DOF. Funds are released by DOF in the middle of each month. A city-by-city list has been posted on the
League’s Web site at www.cacities.org/infrastructure.
To date, $422 million of the $550 million of Prop. 1B Local Street and Road funds for FY 2007-08 have been
allocated.
DOF sent all California cities a letter in January with Prop. 1B application instructions and a list detailing each
city’s proportional share of the funds. These materials, along with the Prop. 1B Implementation Guidelines
are posted on the infrastructure page of the League’s Web site at www.cacities.org/infrastructure.
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Sustainable Cities Feature: San Leandro Secures Prop. 1C Grant for TOD
Improving urban living with access to amenities and transit is a strategy many communities are employing
with an eye to meeting the goals set out in AB 32, California’s pre-eminent global warming legislation. San
Leandro, an East Bay city of about 80,000 residents located between Oakland and Hayward, was recently
awarded $24.4 million in Proposition 1C funding for infill infrastructure and Transit Oriented Development
(TOD).
Although many communities have already focused on creating more TOD—livable, walkable communities
with close access to mass transit, these Prop. 1C funds will enable San Leandro to create its first such
project. Prop. 1C, the Housing and Emergency Shelter Trust Fund Act, passed by voters in 2006, included
$850 million for infill infrastructure and $300 million for TOD. So far, $400 million of the infill infrastructure
funds have been appropriated and $145 million of the TOD funding has been appropriated.
The city applied for the Prop. 1C funding after securing a $450,000 Metropolitan Transportation Commission
(MTC) planning grant two years ago to create a TOD strategy for downtown San Leandro. Member Michael
Gregory credits San Leandro’s success with the Prop. 1C funds as a direct result of the incredible community
input in the planning process. With the MTC grant, the city brought together city staff, planners,
transportation experts, engineers and a large citizen advisory committee to focus on San Leandro’s need for
more infill development and housing near transit.
This Bay Area suburb sits in the middle of a major transit corridor along Interstates 580 and 880 with BART
and Amtrak stations. The city has a downtown Bay Area Rapid Transit (BART) station which includes a large
parking structure and an adjacent abandoned lot. With the Prop. 1C funds, the city will create about 300 units
of housing (200 market rate and 100 affordable) where the current parking lot sits and build a new parking
structure for commuters on the abandoned lot location. The new housing will be built to the U.S. Building
Council’s Leadership in Energy and Environmental Design (LEED) standards.
Council Member Gregory is proud of the project because San Leandro will develop the abandoned site of a
former cannery and create a smart growth community that will give residents a high quality of life without
having to get in their cars.
San Leandro’s Prop. 1C grant will be broken down as follows:
• $9.8 million to build the BART garage;
• $6.1 million for streets, sidewalks, landscaping and lighting;
• $3.4 million for parks;
• $3 million for the city’s nonprofit housing partner;
• $1.5 million for utility improvement; and
• $.6 million.
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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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