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06-07-2011 - City of West Covina 2011 Legislative Platform - Item 11 Attach B (2).docCurrent Legislation with Position of the League of California Cities and Staff Recommendation City staff is recommending that the City of West Covina take a position to support or oppose the following bills. It is important to note, that this list does not include all bills, but those that impact West Covina and are currently being heard in the State Legislature. Many bills have been determined to be two-year bills, which means they will be heard next year, or have been sent to the suspense file for inactivity. AB 208 (Fuentes) Land Use: Subdivision Maps: Expiration Dates League Position: Support City Position: Support Summary: Would extend by 24 months the expiration date of any approved tentative map or vesting tentative map that has not expired as of the effective date of this act and will expire prior to January 1, 2014. By adding to the procedures that local agency officials must follow, this bill would impose a state-mandated local program. This bill contains other related provisions and other current laws. Analysis: In the early 1990s, many projects for which maps had been approved were postponed due to the housing collapse and generally weak economic conditions. As a result, many maps were set to expire. In order to avoid the time and expense associated with a new application process, the Legislature enacted legislation to provide relief to developers. This bill spares developers affected by the recession the added time and expense of obtaining new maps when the economic picture brightens. AB 264 (Hagman) Transitional Housing League Position: Support City Position: Support Summary: Under current law, in each city and county there is a public agency known as the housing authority of the city or county. This bill would require operators of transitional housing to notify the city or county and residents within 300 feet of the property when a transitional housing facility will be established so that the city or county and residents have specified knowledge about the transitional housing facility. Analysis: This bill will provide better notification to cities and counties when transitional housing is placed inside a community and require notification to residents within 300 feet to be notified as well. AB 344 (Furutani) Public Employees’ Retirement League Position: Oppose City Position: Oppose Summary: This bill would eliminate the ability of a CalPERS employer to request that a retired annuitant be extended beyond the 960-hour limit in any fiscal year. Analysis: Utilizing retired annuitants to fill a position allows a city to lower the costs of to provide that service while a replacement candidate is being selected. Opponents argue that while it may seem difficult to justify the on-going employment of a retired annuitant, in many ways it is beneficial to the state or local agency, the employee and the taxpayer, and by eliminating this option it impedes local agencies' ability to immediately fill highly technical positions - expertise that may be in short supply. AB 455 (Campos) Public Employment: Local Public Employee Organizations League Position: Oppose City Position: Oppose Summary: This bill would provide that when a local public agency has established a personnel commission or merit commission to administer personnel rules or a merit system, the governing board of the public agency would appoint 1/2 of the members of the commission, and 1/2 of the members of the commission, nominated by the recognized employee organization, would be appointed by the governing board of the public agency. Whenever multiple bargaining units are represented by different recognized employee organizations, the employee organization representing the largest number of employees would designate commission members pursuant to that provision. Analysis: The League of California Cities states, "AB 455 unnecessarily intrudes into what is fundamentally a local municipal affair over the compensation method of appointment, qualifications, tenure of office, and removal of employees. Additionally, agencies that no longer have authority to appoint the full board will likely forgo the civil/personnel commission and instead took to an outside hearing officer or binding arbitration. Either of these options would be more costly to the agency and to employees." AB 506 (Wieckowski) Local Government Bankruptcy League Position: Oppose City Position: Oppose Summary: Would provide that a local public entity shall not file under federal bankruptcy law unless the local public entity has participated in mediation with interested parties, as defined, has received a certificate of good faith participation, and if the mediation results in either an agreement for debt readjustment, or if the mediator certifies in writing that continued mediation will not contribute to a resolution of the parties' dispute, under certain circumstances. The bill would also require the California Debt and Investment Advisory Commission to adopt mediation guidelines, as specified. Analysis: Cities argue that this bill is a state intrusion into local affairs. Cities are concerned that the bill creates obstacles rather than assisting municipalities and the state commission will not be a neutral forum. AB 527 (Hernandez) Public Officials: Financial Interests League Position: Concern Unless Amended City Position: Oppose Summary: This bill would require that a remote interest be disclosed at a public meeting of a local government body or board and would require a statutory basis for classifying the interest as a remote interest to be identified. By increasing the scope of actions that constitute a crime, this bill would impose a state-mandated local program. This bill would also prohibit an officer or employee, as defined, of the state, a county, district, judicial district or city, or any city officer or employee from authorizing the expenditure of public funds, and from approving any project, plan, permit, or conveyance of land in which a member of that body is financially interested. The bill would make a violation of these provisions a crime, thereby imposing a state-mandated local program. Analysis: Many of the provisions being requested by the author are a duplication of law already in place. In response to the City of Bell scandal, cities have condemned the actions of those city officials and have promoted better transparency and prosecution for illegal activities. Opposition to this bill is being recommended because the bill calls for an employee issuing a check under the direction of the City Council to be held liable for violating conflict of interest laws even if they had no financial interest. This unfairly punishes employees doing their job at the direction of the council. In addition, if a Councilmember is advised there is no conflict by legal counsel, then votes on the matter, the Councilmember and any employees that make payments on the decision are now liable. Will City staff be required to obtain indemnification prior to paying city obligations? The legislation penalizes staff for doing their job, even if they are not qualified to determine if the matter is a conflict of not. AB 646 (Atkins) Local Public Employee Organizations: Impasse Procedures League Position: Oppose City Position: Oppose Summary: Would authorize the employee organization, if the mediator is unable to effect settlement of the controversy within 15 days of his or her appointment, to request that the matter be submitted to a fact-finding panel. The bill would require that the fact-finding panel consist of one member selected by each party as well as a chairperson selected by the board or by agreement of the parties. The fact-finding panel would be authorized to make investigations and hold hearings, and to issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence. The bill would require all political subdivisions of the state to comply with the panel's requests for information. This bill contains other related provisions Analysis: Local governments argue that AB 646 undermines a local agency's authority to establish local rules for resolving impasse and the requirement that a local agency engage in fact-finding may delay rather than speed the conclusion of contract negotiations. Opponents state they are not aware of any abuses or shortcomings of the current process and question the need for making such an important change in the process of reaching a collective bargaining agreement. Cities also argue that AB 646 would provide a disincentive for employee organizations to negotiate in good faith when there is the option of further processes under the PERB that will prolong negotiations. AB 834 (Hernandez) Local Government Contracts League Position: Watch City Position: Oppose Summary: Existing law authorizes the legislative body of a city, county, or district to enter into contracts for various services, and, among other things, to include within the contract a time within which the whole or any specified portion of the work contemplated is to be completed. This bill would require the legislative body of a city, county, or district to review any contract with a private party with a total value of $250,000 or more, that contains an automatic renewal clause on or before the annual date by which the contract may be rescinded. Analysis: An evergreen contract is an agreement between two parties that is automatically renewed after each maturity period until one of the contracting parties gives notice at a specified interval in the manner required to terminate the otherwise perpetual agreement. The specified interval could be annually or as long as several years. Evergreens are commonly used for long-term agreements, such as memberships and maintenance agreements. This type of contract is in contrast to fixed-term agreements, where both parties are required to affirmatively agree to extend the term of the contract beyond the initial term. Local governments commonly use evergreen contracts for service contracts, including waste hauling, park maintenance, road maintenance, and public safety. City staff is recommending the City oppose this legislation as evergreen clauses allow expensive community facilities and equipment to be more easily financed through private lenders; allows smaller service providers to amortize the costs of expensive facilities and equipment over an extended period of time, thus allowing them to compete against larger companies; and provides service providers to guarantee rates over a longer period of time to maintain their business with a City, thus saving taxpayers and cities. In addition, the Legislative Analyst’s Office has expressed concerns that the legislation is too vague, “The language is vague and could be interpreted by a local government to require the issuance of a request for proposals as part of their review for their official findings. Or a legislative body could interpret this bill to mean the legislative body need only issue a perfunctory statement of "ABC contract fits the needs of the City of XYZ and contains updated information" with no other action required. The Legislature may wish to consider whether this bill needs more specific language so local governments have more guidance on how to comply with its provisions. AB 1087 (Brownley) Cities and Counties: Public Safety Services: Contracts League Position: Oppose City Position: Oppose Summary: Would, commencing January 1, 2012, provide that, unless otherwise stipulated in the contract, if a city that contracts with a county for public safety services through the county, notifies the county of its intent to terminate the contract, then the county is authorized to require the city to provide a comprehensive fiscal analysis relating to the ability of the city to provide public safety services, as specified. Analysis: Cities oppose this bill because it imposes artificial barriers on a city wishing to form its own police department and infringes on a city's home rule and sovereignty. AB 1250 (Alejo) Redevelopment League Position: Support City Position: Oppose Summary: Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in blighted areas in those communities known as project areas. Existing law requires that each redevelopment agency submit the final report of any audit undertaken by any other local, state, or federal government entity to its legislative body and to additionally present an annual report to the legislative body containing specified information. This bill would impose new requirements on the agency with respect to implementation plans and evidentiary standards and expand existing prohibitions on agency direct assistance to certain projects. Analysis: AB 1250 is a compromise bill being supported by the California Redevelopment Association and the League of California Cities to provide an alternate bill to the elimination of redevelopment. Collectively, this legislation contains the most sweeping set of proposed reforms to California redevelopment law in two decades. In brief, this measure tightens the definition of “blight,” limits project area size, reduces tax increment to cities for expansion of project areas, etc. City staff is opposed to the elimination of redevelopment agencies and any legislation that threatens the City’s proactive efforts to eliminate blight in the community, create jobs, build additional affordable housing, retain current businesses, and encourage new business from entering the community. With the introduction of this bill, City staff has been able to have amendments done to allow for the continuation of the proposed redevelopment of the former BKK site. The original legislation would have prohibited the future projects that the City of West Covina has been proposing for the last several years. AB 1338 (Hernandez) Redevelopment League Position: Neutral City Position: Support Summary: Would require that on and after January 1, 2012, all real property purchased or otherwise acquired in exchange for financial remuneration by an agency pursuant to the above provisions be subject to an appraisal by a qualified independent appraiser to determine the fair market value of that property. Analysis: The California Redevelopment Association is supporting this measure as the bill is putting the current practice of RDAs to obtain an independent third-party appraisal into statute that protects both the interests of the property owner and the taxpayer are served in a real estate transaction. This bill will require an appraisal be done in those instances where an appraisal may not have been necessary previously. In addition, City staff is recommending the City Council support this legislation as many of the controversial measures have been gutted from the legislation. Assemblymember Hernandez has been inaccurately and unfairly describing the West Covina Senior Villas II project as his motivation for introducing this legislation. At the time of that development project, an appraisal was not needed as the City did not own or acquire the property as part of the development. Assemblymember Hernandez still maintains that the City of West Covina violated the law in the project, even though legal counsel and the County District Attorney’s Office found no merit to his claim. City staff has had discussions with Senator Ed Hernandez’ Office, California Redevelopment Association, and Joe Gonsalves’ & Sons to clarify the matter, and will be working with these offices to have an official statement be introduced, on the record, that Assemblymember Hernandez’ comments are inaccurate and unfairly targeting West Covina. SB 186 (Kehoe) The Controller League Position: Watch City Position: Oppose Summary: Authorizes the Controller to exercise discretionary authority to perform an audit or investigation of any county, city, special district, joint powers authority, or redevelopment agency, if the Controller has reasons to believe, supported by documentation, that the local agency is not complying with state law, grant agreements, local ordinances, to determine fiscal viability and to prepare a report of the results of the audit or investigation and to file a copy with the local legislative body. Analysis: While City staff is supportive of the reform of laws to prevent the abuses in the City of Bell, SB 186 could have far more implications than just reviewing a city’s finances and the granting of discretionary authority to conduct audits and investigations. This new authority could be used to take punitive actions or make personal attacks against city officials based on political agendas or disagreements between cities and the State of California. The legislation does not specify any criteria to justify the use of an individual persons discretionary judgment to initiate an audit of a county, city, special district, etc. SB 264 (Correa) Recreational Activities: Skateboard Parks League Position: Support City Position: Support Summary: Would continue indefinitely the latter provision deeming skateboarding at a public skateboard park a hazardous recreational activity. Analysis: This bill enables public entities to maintain their current skateboard parks with less risk of liability. If the sunset provisions contained in Health and Safety Code Section 115800, is not extended, public entities will face increased liability related to skateboard parks and will no longer have incentive to build and operate these facilities. SB 469 (Vargas) Land use: Development Project Review: Superstores League Position: Oppose City Position: Oppose Summary: Would, in addition, require a city, county, or city and county, including a charter city, prior to approving or disapproving a proposed development project that would permit the construction of a superstore retailer, as defined, to cause an economic impact report to be prepared, as specified, to be paid for by the project applicant, and that includes specified assessments and projections including, among other things, an assessment of the effect that the construction and operation of the proposed superstore retailer will have on retail operations and employment in the same market area. The bill would also require the governing body to provide an opportunity for public comment on the economic impact report. By increasing the duties of local public officials, the bill would impose a state-mandated local program. Analysis: Cities have the local authority to determine if they wish to allow big box retailers in their community. According to the League of California Cities, “each of the State's 481 diverse cities must maintain the ability to make decisions which best fit their community. By singling out a specific type of large retailer, SB 469 fundamentally undermines local land use discretion and authority. SB 474 (Evans) Commercial Construction: Indemnify League Position: Oppose City Position: Oppose Summary: This bill would provide, for construction contracts executed on and after January 1, 2013 , that are not for residential construction or executed by a public entity, as defined , that any provision in a contract purporting to indemnify, hold harmless, or defend another person against actual or claimed liability, damage, or expense arising, in whole or in part, from the negligence, willful misconduct, defective design, violation of law, or other fault of that person or that person's agents, employees, independent contractors, subcontractors, or representatives is against public policy and is void and unenforceable. Analysis: The League of California Cities must regretfully oppose your SB 474, which would prohibit indemnification provisions in contracts between cities and contractors. This will limit a city’s ability to negotiate contract terms and ultimately result in increased costs to the public. California public agencies face substantial challenges in the efforts to maintain and expand infrastructure for education, transportation, water, environmental protection, and health care. In order to develop infrastructure projects, public agencies enter into written contracts that establish the scope of the project and allocate the risks associated with the particular project through some type of indemnity or “hold harmless” provision. SB 474 would be detrimental to public agencies because in the typical lawsuit, it will result in refusal by the contractor or its insurance carrier to provide a legal defense for the public agency prior to a full trial. The net effect would be to shift to taxpayers’ legal defense costs that should be borne to varying degrees by contractors and their insurance carriers. SB 475 (Wright) Infrastructure Financing League Position: Support City Position: Support Summary: Would authorize a local governmental agency to enter into an agreement with a private entity for financing for specified types of revenue-generating infrastructure projects. The bill would require an agreement entered into under these provisions to include adequate financial resources to perform the agreement, and would additionally permit the agreements to lease or license to, or provide other permitted uses by, the private entity. Analysis: Confronted by aging infrastructure, growing populations, and limited revenue sources, local governments want to use public-private partnerships to finance, build, replace or operate public infrastructure. In addition to making new projects feasible by providing additional financing options, public-private agreements can facilitate new infrastructure projects through cost-savings and the opportunity to transfer project risks from local governments to their private sector partners. SB 679 (Pavley) Energy: Energy Conservation Projects: Financial Assistance: Local Governments and Public Institutions League Position: Support City Position: Support Summary: Would appropriate the unencumbered balance of the $50,000,000 that was appropriated to the Energy Conservation Assistance Account, a continuously appropriated account, to be expended by the Energy Commission for the purposes of providing low-interest energy efficiency revolving loans to local governments and public institutions, thereby making an appropriation. Analysis: Originally these funds were to be made available for residential loans, however, the Federal Housing Administration (FHA) issued a directive to the federal residential lending agencies (such as Fannie May) prohibiting them from lending on properties encumbered by Property Assessed Clean Energy (PACE) loans. The FHA was concerned that the PACE loans would take priority in repayment before the federal loans. Therefore, the PACE program was suspended. Therefore, this bill will re-appropriate the funds to local government and public institutions.