July 22, 2005
Issue #29-2005
WANT MORE DET AILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
CITY HALL DIRECTORY NOW AVAILABLE
THE LEAGUE SEEKS YOUR INPUT ON WEBSITE
Page 2
Page 4
The League is urging city officials to contact their representatives and
Senators Barbara Boxer and Dianne Feinstein about H.R. 6, an energy bill
Congress is working on to send to President George W. Bush. For more, see
Page 2.
MTBE IN COMPREHENSIVE ENERGY BILL, H.R. 6
California Senator Dianne Feinstein proved once again this week that she
understands the tools that city officials need to restore blighted areas, build
affordable housing, create jobs and restore public safety. For more, see Page 3.
FEINSTEIN FIGHTS TO MAINTAIN CRITICAL LOCAL
GOVERNMENT TOOL
Local government officials and staff are invited to participate in an exciting
new educational joint venture - an online web seminar - to learn about
California’s new electronic waste recycling program. “E-Waste Recycling for
Local Governments” is a joint effort between the League and the California
Integrated Waste Management Board (CIWMB). For more, see Page 2.
LEAGUE AND WASTE BOARD COLLABORATE ON WEB BASED E-
WASTE SEMINAR FOR LOCAL GOVERNMENT OFFICIALS
The Legislature is
in recess until
August 15.Visit the League’s Official Website--www.cacities.org
PAGE 2/PRIORITY FOCUS
Cities should OPPOSE amendments to the bill
that would exempt manufacturers of methyl tertiary
butyl ether (MTBE) from any liability for contamina-
tion of local drinking water supplies, despite the
Senate’s position to the contrary.
Under the agreement that is currently being
considered, city county and other local agencies
would be prevented from filing “defective product”
lawsuits to recover cleanup costs. Numerous cities
in the United States are engaged in active litigation
on this legal principle.
If signed into law, the MTBE manufacturers’
liability exemption would cost local taxpayers
nationwide an estimated $29 billion to clean up and
replace local water supplies. This would represent
one of the largest unfounded mandates passed
down from Congress to local taxpayers in recent
history.
Take Action!
Contact Senators Barbara Boxer and Dianne
Feinstein, and your representatives, to strongly
urge them to strip any MTBE liability exemption
from H.R. 6. For a sample letter on talking points
on this issue log on to the League’s Online Advo-
cacy Center, www.cacities.org/advocacycenter.
Any agreement on MTBE must include the
principles of full cost recovery to community water
systems; funds to pay for cleaning up drinking
water, not just removing leaking tanks; no un-
founded mandate on local governments; no bailout
for MTBE producers; and no cleanup funds should
be subject to annual appropriations.
MTBE from page 1 E-WASTE from page 1
The four online 60-minute sessions will be
offered during August and September. Module 1,
open only to local governments that are not yet
approved e-waste collectors, will be offered on
August 17 or August 30. Module 2, open to all
local governments, will be offered on September 7
or September 15.
Attending presentations via the Internet pro-
vides local government representatives with the
opportunity to access needed information from the
comfort and convenience of their home or office.
Just dial a toll-free number to enter a virtual
classroom with other attendees and log on to the
visual portion online. It’s as easy as point, dial and
click. Handouts can be printed directly from the
logged in area of the virtual classroom.
Presenters will include CIWMB staff mem-
bers, and the interactive format will allow attend-
ees to ask questions and share information. The
sessions will be recorded and available for future
viewing.
This pilot project web seminar is offered free
to attendees. However, future web seminars may
include a modest charge to cover production and
technical costs. Enrollment is open only to repre-
sentatives from local government and is limited,
so you are encouraged to sign up early. The E-
Waste webinar announcements have been sent
electronically to city and other local government
officials. Copies of the announcement are also
available on the League’s web site at
www.cacities.org/resource_files.
Don’t miss this opportunity to get one of the League’s most useful reference tools! This
comprehensive California directory provides important contact information for mayors,
council members and city department heads. The directory also features the League’s
staff directory, League partners, affiliate organizations and a wide variety of advertisers.
Purchase this publication on-line at www.cacities.org/store or call (916) 658-8257 for an
order form. City officials price $30, non-city official price $65, plus shipping & handling.
THE 2005 CITY HALL DIRECTORY IS NOW A VAILABLEPRIORITY FOCUS/PAGE 3 Visit the League’s Official Website--www.cacities.org
This week Senator Feinstein joined with Louisi-
ana Senator Mary Landrieu, in persuading Missouri
Senator Christopher Bond to defer action on an
amendment to a Senate Appropriations Committee
mark-up. The mark-up would have denied any
federal funding for local projects if city councils or
county commissions used the power of eminent
domain in condemning property for the benefit of
private redevelopers. His proposal was a reaction
to a recent U.S. Supreme Court ruling that en-
dorsed the condemnation power by local officials
for private projects.
Senators Feinstein and Landrieu objected to
the amendment on the grounds that it had not been
adequately aired by the committee, and won a
pledge by Bond to defer action on it until the bill
reaches the Senate floor.
The two senators said that more time was
needed to research the impacts that the amend-
ment would have on cities’ ability to engage in
economic development, and to develop the infor-
mation needed for an informed decision.
Please Thank Senator Feinstein
City officials should be sure to thank Senator
Feinstein for standing up for cities’ responsible use
of eminent domain. Among the points to make are
the following:
• California is not Connecticut. The Boyd
amendment would unfairly punish a state like
California, which already has strong laws on the
books protecting property owners and restricting
the use of eminent domain. Eminent domain is
rarely used; redevelopment agencies may only use
it as a last resort, and only where there is a clear
finding of blight, as defined by state law. Land does
not qualify simply because it is not being put to its
optimum use or may be more valuable for other
uses.
• The Amendment Is a Job Killer. California
is in the midst of an economic recovery. Cutting off
federal funding for projects that may require some
use of eminent domain under California’s already
restrictive laws would kill valuable construction
and other jobs that redevelopment projects
create. Redevelopment is a significant economic
and job-generating resource for California and
local communities, responsible for more than
$31.84 billion in economic activity and gener-
ating or maintaining 310,000 full and part-time
jobs in a single year.
• The Amendment Would Undermine
Efforts to Build Affordable Housing. Federal
funds available for affordable housing would be
unusable in some cases if redevelopment agen-
cies were stripped of the ability to use eminent
domain as a last resort. After the federal govern-
ment, redevelopment is the biggest funder of
affordable housing projects in the state. And
redevelopment is sometimes the only tool a
community has to jump start revitalization of
downtrodden, blighted communities.
According to information from the state
Department of Housing and Community Develop-
ment and the State Controller, redevelopment has
been responsible for the construction of 63,406
units of affordable housing units since 1994.
Another 20,048 units of low- and moderate-
income housing are expected to be built or
refurbished as part of redevelopment projects
over the next two years. Since 1997-98, agen-
cies have assisted 88,711 households obtain
affordable housing; 45% of this activity occurred
in the last two reporting years.
• Tell Your Local Story. Provide Senator
Feinstein with the information she needs to
protect the use of eminent domain under the
restrictions currently in place here in California.
Explain how eminent domain is a seldom used,
but critical tool to bring parties to the table to build
affordable housing, remove blight, and create
jobs. Describe the specific redevelopment
projects in your city that have included new
housing, improved public safety, generated jobs
and economic activity.
FEINSTEIN from page 1Visit the League’s Official Website--www.cacities.org
PAGE 4/PRIORITY FOCUS
Do you use the League of California Cities’
website? If so, we’d like to know what you think
about it!
The League has posted a short, five-minute-
or-less online website survey so that website
users can let us know how well the site works for
them, and what services they find most valuable.
If you use the site - whether frequently or only
occasionally – please help us by participating in
this short survey. Data from the survey is col-
lected anonymously.
To take the survey, please visit the League’s
website at www.cacities.org. Thank you!
THE LEAGUE SEEKS YOUR
INPUT ON WEBSITE
2005 LEAGUE ANNUAL
CONFERENCE: OCTOBER 6-8,
MOSCONE CONVENTION CENTER,
SAN FRANCISCO
Plan now to attend the League’s 2005
Annual Conference this fall - the first time it
has been in San Francisco since 1997.
Make you reservations through our online
system at www.cacities.org/ac.
July 29, 2005
Issue #30-2005
WANT MORE DET AILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
P,G&E ANNOUNCES 2005 LOCAL ED GRANT PROGRAM
INDEPENDENT LEGISLATIVE ANALYST’S OFFICE RELEASES FINAL
BUDGET ANALYSIS
Page 2
This week, the state made full repayment of the Vehicle License Fee (VLF)
gap loan to cities and counties - more than a year in advance of the originally
scheduled payment date of August 15, 2006. For more, see Page 3.
VLF GAP LOAN UPDATE FOR CALIFORNIA COMMUNITIES
PROGRAM PARTICIPANTS
Earlier this week, Gov. Arnold Schwarzenegger joined with the governors
of New York, Florida and Texas in sending a joint letter to the chairmen and
ranking Democratic members of the House and Senate Appropriations Com-
mittees to call for a risk-based apportionment of homeland security funds.
For more, see Page 3.
SCHWARZENEGGER, LARGE STATE GOVERNORS
WEIGH IN ON TERRORIST FUNDING
STATE CONTROLLER RELEASES VLF
GAP LOAN PAYMENTS
State Controller Steve Westly held press
events on July 26 in Sacramento, San
Fernando and San Francisco to announce
the release of $1.2 billion in Vehicle License
Fee (VLF) gap loan payments to cities and
counties. For more, see Page 2.
State Controller Westly, with (L-R) Dixon
Mayor Mary Ann Courville, CSAC
Director Jim Keene, and League Deputy
Executive Dir. Dwight Stenbakken.
The Legislature is
in recess until
August 15.Visit the League’s Official Website--www.cacities.org
PAGE 2/PRIORITY FOCUS
The Pacific Gas and Electric Company (PG&E)
has announced its fourth annual California Local
Economic Development Grant Program to help fund
economic development projects and events.
Last year, PG&E provided $300,000 to 58 com-
munity-based organizations and governments for
local economic development projects. Qualifying
organizations in PG&E’s service territory can apply for
grants of $500 up to $10,000. The completed appli-
cations must be postmarked no later than August 24
and grantees will be announced in late September.
Applications can be submitted online. The announce-
ment letter, application guidelines, and, application
can be found on the PG&E website at www.pge.com/
edgrant/.
Information about the PG&E program was for-
warded to the League by the California Local Eco-
nomic Development Association (CALED). For those
League members who would value a partnership and
additional assistance from CALED in their community,
but haven’t had the resources, these grants can be
used to:
• Host a Local Elected Officials Economic
Development Training
• Host a Local Workforce Investment Board
Economic Development Training
• Sponsor a Professional Advisory Service
or one-day workshop in your
community where a team of expert
practitioners from around the state
helps you work through a local issue
or problem
• Facilitate the creation of a board strategy
• Facilitate the creation of a community
strategy or action plan
• Facilitate the creation of an Economic
Development staff strategy or
action plan
Please note that the grants are only available to local
governments and 501 (c)(3) nonprofit organizations.
The Academy is a 501 (c)(3) and is available for
CALED members to help you qualify for these grants.
For more information, contact Kay Reynolds at (916)
448-8252, ext. 104, or via e-mail at
kreynolds@caled.org.
PG&E ANNOUNCES 2005 LOCAL
GRANT PROGRAM
The non-partisan, independent Legislative
Analyst’s Office (LAO) has released its final
analysis of the state budget signed into law early
July. The budget provides $113 billion in spend-
ing overall, with $90 billion from the state general
fund. The remaining $23 billion is from special
funds.
Taking into account the 2005-06 budget’s
projection of a $1.3 billion reserve, and earlier
revenue projections, LAO predicts a deficit of
$4.8 billion entering into the 2006-07 budget year.
The LAO will update their revenue analysis and
projections in November.
A full copy of the report can be accessed on
the LAO website at www.lao.ca.gov.
INDEPENDENT LEGISLATIVE ANALYST’S
OFFICE RELEASES FINAL
BUDGET ANALYSIS
The payments are being made approximately
two weeks following the signing of the budget bill
into law - a development that Controller Westly
said, “is the right thing to do.”
“Local government is where the rubber hits the
road” in terms of the delivery of services, Westly
noted. The State Controller said he had asked his
staff to commit extra efforts to ensure that checks
to repay cities and counties for funds that the state
borrowed in 2003 were provided as quickly as
possible.
“The early deliver of these funds will be a great
help in many cities,” explained Dwight Stenbakken,
executive deputy director of the League of Califor-
nia Cities. “We thank the Legislature and Gov.
Schwarzenegger for making these funds available
through the budget, and we appreciate Controller
Westly’s efforts to make the funds available in the
first days of this fiscal year.”
Vi s it t he League’ s websit e at www.cacities.org
to view a city-by-city distribution of the VLF funds.
VLF PAYMENTS from page 1PRIORITY FOCUS/PAGE 3 Visit the League’s Official Website--www.cacities.org
Marked by press events around California, State
Controller Steve Westly released $1.2 billion in
payments on Tuesday, July 26. Given this develop-
ment, California Communities evaluated the alterna-
tives and decided to defease the VLF Financing
Program Notes that were issued to purchase VLF
Gap Loan Receivable in March.
About 150 cities and counties secured the loan
by selling Revenue Anticipation Notes to investors
secured by the state’s promise to repay. Of the $1.2
billion total statewide gap loan, cities and counties
secured more than $650 million. Twenty-six cities
had enrolled in a second VLF gap loan financing,
but with enactment of the state budget, including
early repayment of the VLF gap loan, the second
round was canceled.
Under the terms of the VLF Financing Program
documents, so long as the notes are outstanding,
the trustee must hold any amounts received from
the state until the maturity of the notes in November
2006 (the notes are not subject to early redemp-
tion). The state’s early payment will produce inter-
est income that will be in excess of amounts needed
to repay the notes.
By defeasing the notes (so that they will no
longer be deemed “outstanding” under the inden-
ture) California Communities will be permitted to
remit these excess interest earnings to program
participants upon completion of the defeasance,
rather than waiting until November 2006.
California Communities Bond Counsel, Orrick,
Herrington & Sutcliffe, LLP, will be contacting pro-
gram participants to confirm payment instructions for
their share of the excess interest earnings amount.
The exact amount of the payment to each partici-
pant will not be known until the defeasance is
accomplished.
The VLF Financing Program team is working this
week to complete all of the requirements of a full
defeasance of the notes. VLF Program participants
will not incur any fees for the defeasance of the
notes by the financing team. California Communi-
ties expects the defeasance to be accomplished and
funds wired to participants on or about Friday,
August 5.
CA COMMUNITIES from page 1
The letter comes two weeks after the Senate
voted down a proposal by Senators Dianne
Feinstein (California) and Mary Landrieu (Louisi-
ana) to increase the amount of homeland secu-
rity funds distributed to states on the basis of
where terrorist risk were highest. The Senate
then voted to support an amendment sponsored
by Senators Collins (Maine) and Lieberman
(Connecticut) to increase the percentage of
homeland security funds distributed to states on
a non-risk basis.
“We are united on the following principles of
the distribution of homeland security funding
supported by the Administration, the 9/11 Com-
mission, and a bipartisan coalition of Members of
Congress,” the governors stated. “First, funds
should be distributed based on the specific
threats, vulnerabilities, and consequences faced
by each state as determined by the Department
of Homeland Security (DHS). Second, funds
should not be diminished by an across the board
distribution in the form of state minimums.”
The letter continued: “We strongly believe
that the best option (for distribution of funds),
next to the complete elimination of state mini-
mums, is the Feinstein-Cornyn proposal that
would allocate funds based on an analysis of
risks.”
To view a complete copy of the letter, please
see the attached document or visit the League’s
website at www.cacities.org.
HOMELAND SECURITY from page 1
2005 LEAGUE ANNUAL
CONFERENCE: OCTOBER 5-8,
MOSCONE CONVENTION CENTER,
SAN FRANCISCO
Plan now to attend the League’s 2005
Annual Conference this fall - the first time it
has been in San Francisco since 1997.
Make you reservations through our
online system at www.cacities.org/ac.