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HomeMy WebLinkAbout03/05/2002, C2 - 2002 LEGISLATIVE ACTION PROGRAM council M� 3-5- 5-02 acEnaa Report '�h� c 2 CITY OF SAN LUIS OBISPO FROM: Jeffrey G.Jorgense City Attorney SUBJECT: 2002 Legislative Action Program CAO RECOMMENDATION Adopt a resolution establishing legislative priorities for 2002 DISCUSSION Attached for the Council's consideration is the 2002 Legislative Action Program Resolution. Similar resolutions have been adopted by the Council since 1993. The City Attorney's Office coordinates the Legislative Action Program with the assistance of the City Administrator's Office and the various City departments. This resolution authorizes staff to respond to legislative issues affecting the City (via letters signed by the Mayor, or in his absence, a Councilmember), provided that the positions taken in the letters are consistent with the priorities identified in Exhibits A and B of the resolution. By establishing broad legislative priorities and delegating responsibility to staff to respond to proposed legislation and recommendations from the League of California Cities, the City is better able to react quickly to changed circumstances and urgent requests than it would be if each item needed to be brought to the Council on a formal agenda. The process has been efficient given the limited City resources available, and the City has been very active in communicating our position on Federal and State legislation which effects our interests. In addition to the submission of letters to Federal and State officials,the resolution also encourages "face-to-face"communication, which should(1)focus on our Federal and State representatives; (2) continue to emphasize our relationship with north county cities and agencies, and (3) attempt.to establish effective communication with the County concerning land use issues adjacent to the City, and County government expansion/parking in the downtown. FISCAL IMPACT Minor additional staff workload is anticipated. ALTERNATIVES The.Council is encouraged to provide any additional recommendations on the process or specific priorities. ca -� .f Council Agenda Report—Report Title Page 2 Attachments 1. Resolution(establishing Legislative Priorities) Exhibit A,Legislative Action Program Exhibit B (League Legislative Priorities) ca- a ATTACHMENT 1 RESOLUTION NO. (2002 Series) ESTABLISHMENT OF THE CITY LEGISLATIVE ACTION . PROGRAM AND PRIORITIES FOR 2002 WHEREAS,a major objective of the City Council is to adopt an aggressive legislative program which strengthens local government,promotes City goals and defends the City against legislative actions by State and Federal governments that would weaken local government and/or take away traditional revenue sources; and WHEREAS,it is vital to the fiscal health and the self determination of the City to effectively communicate with State Legislators and Federal representatives in order to favorably influence State and Federal legislation,regulations and grant requests; and WHEREAS,the League of California Cities conducts a legislative analysis and advocacy program on behalf of cities for State issues and major Federal issues, and WHEREAS,with four County supervisors representing different portions of the City,it is imperative that the City develop an improved system for regular communication with the Board of Supervisors,particularly concerning land use issues adjacent to the City; and WHEREAS,the City should continue to emphasize developing a positive relationship with North County Cities and agencies concerning water issues; and WHEREAS,the City desires to be proactive and involved in the governmental decision making processes directly affecting the City legislative priorities identified in Exhibit"A",the League of California Cities legislative priorities identified in Exhibit"B", and other selected issues as may from time to time be recommended by the League of California Cities; and WHEREAS, a key component of the City's Legislative Action Program is face-to-face meetings between City representatives and elected officials at the Federal, State,and County levels,and c a-3 ATTACHMENT 1 Resolution No. (2002) Page Two coordination with similar efforts made by other local government entities. NOW,THEREFORE,BE IT RESOLVED, that the City Council of the City of San Luis Obispo does hereby establish the Legislative Action Priorities for 2002,as set forth in the attached Exhibits"A" and"B", and authorizes staff to take positions on legislation generally consistent with the Legislation Action Priorities and such other resolutions and recommendations of the League of California Cities as may be from time to time presented to the City. Upon motion of , seconded by , and on the following roll call vote: Ayes: Noes: Absent: the foregoing resolution was adopted this day of ,2002. Mayor Allen Settle ATTEST: City Clerk APPROVED AS TO FORM: torn y ca- � r.%A EXHIBIT A: CITY LEGISLATIVE ACTION PRIORITIES FOR 200472 FEDERAL PRIORITIES 1. Requiring funding of federally mandated programs, including new water/wastewater regulations, or eliminating such mandates 2. Promoting continued and increased funding sources for transportation, especially transit 3. Obtaining new funding sources to expand housing opportunities for low and moderate income families 4. Supporting legislation to transfer ownership of Salinas Reservoir to a local agency for the purpose of facilitating the Salinas Dam Expansion Project 5. Supporting legislation on coastal preservation 6. Supporting legislation that provides regulatory relief to local government in complying with the Fair Labor Standards Act and overtime provisions for exempt employees 7. Supporting continued funding for the Land.and Water Conservation Grant Program 8. Supporting legislation to exempt cities from liability for leakage of hazardous waste discharge to Publicly Owned Treatment_Works(POTW's)from sewers 9. Supporting legislation which strengthens the ability of cities to control their public rights-of-way and apply zoning regulations relative to the telecommunications industry 10. Supporting legislation to increase the availability of grant funding to replace aging infrastructure of all types; e.g.: streets,bridges,water and sewer systems,etc. 11. Supporting legislation that grants monies to local government fof infiastructure ... . improvements in areas that have contamination from oil and gas production. 12. Endorsing legislation which provides local government with a fair share tax on catalog and internet sales; and opposing legislation-that limits state or local authority to tax catalog or Internet sales 13. Supporting legislation which assists welfare reform to work in a positive way and provides funding for the social service programs_of_local non-profit organizations A-1 c a=s Euhj bj t A 14. Obtaining cooperation and prompt approval from the Environmental Protection Agency(EPA)and Army Corps of Engineers for necessary flood control projects and lake dredging, and the Damon-Garcia Sportsfields 15. Supporting legislative action to retain the existing process of local judicial review of land use decisions,thus avoiding preemptory,premature intrusion of federal courts into matters best known to local authorities at the local level 16. Supporting legislation for grant funding for steelhead restoration projects 17. Opposing mandatory social security for newly hired local governmental employees 18. Supporting legislation to promote the safe,responsible,and cost effective reuse of biosolids 19. Supporting the existing federal water efficient plumbing standards contained in the Clean Water Act 20. Promoting Federal efforts toward preservation of open space,coastal.resources signature land forms,wetlands, and other natural resources or areas threatened by development 21. Supporting the creation of National Marine Sanctuary off the Coast of San Luis Obispo County to protect this fragile habitat from offshore oil and gas development 22. Supporting legislation that encourages research and development by businesses through tax credits or other incentive programs 23. Supporting legislation that grants monies to local agencies,educational institutions and non-profit corporations to provide incubator services to new and small businesses dedicated to developing new technologies 24. Supporting legislation that funds the arts-especially public art 25. Seeking federal participation in the Ahearn property,acquisition(within the boundaries of Los padres National Forest)through the Federal.Forest Legacy Program or other appropriate Federal funding'program 26. Supporting,funding for national and international tourism promotion . 27. Supporting,continued funding for CDBG at or above recent levels A-2 ca-� 29. Supporting continued funding for Federal block grants for local law enforcement 30. Supporting cleanair transit funding for San Luis Obispo County 31. Supporting a sustainable energy policy STATE PRIORITIES FINANCE 1. Supporting efforts to protect the City from loss of revenues due to State mandates 2. Supporting legislation that strengthens opportunities for local fiscal independence 3. Returning ERAF 4. Supporting efforts to "protect,preserve and reform" local government revenue sources 5. Supporting legislation which better assures any reductions in Vehicle License Fees by the State will be back-filled to local government in a permanent way 6. Supporting funding for state tourism promotion 7. Endorsing legislation which provides local government with a fair share tax on catalog and internet sales; and opposing legislation that limits state or local authority to tax catalog or Internet sales COMMUNITY DEVELOPMENT 1. Opposing mandated State approval of local General Plan Elements, such as implementing and compliance with State General Plan Housing element law (especially any return of SB 910 or other sanctions for noncompliance) 2. Promoting funding sources to encourage the retrofitting of unreinforced masonry - _. .__ buildings 3. Promoting state efforts toward preservation of open space,coastal resources, signature land forums,wetlands, and other natural resources or areas threatened by development 4. Promoting realistic housing requirements in the Housing Element—more local influence on HCD Regional Housing Need Allocations A-3 Cd-7 h� b�t A 5. Promoting funding of on-campus housing at Community Colleges and CSU for student and faculty housing 6. Promoting the concept of Urban Growth Boundaries 7. Promoting funding for the arts,especially public art 8. Promoting legislation which moves final decision on school site locations from school district authority to local government(city or county) authority 9. Preserving local control of planning and zoning matters(such as the prohibition of drive-through windows 10. Promoting funding and/or legislation that encourages research and development by businesses in California 11. Supporting funding for the promotion of California as a place to locate businesses 12. Making funding available for affordable housing for low and moderate income families to all cities and communities without regard to whether or not HCD has certified their housing element. Affordable housing need does not depend on Housing element status PUBLIC SAFETY 1. Preserving city's authority to investigate police misconduct 2. Preserving city's authority to establish emergency medical service levels 3. Increasing City authority to regulate group homes for juvenile offenders 4. Continuing support for disaster preparedness/earthquake preparedness 5r. Supporting grant requests for Regional Hazardous Material Response Team, and er athiag€aei and other related activities 6. Supporting efforts to secure higher levels of cost recovery for DUI's 7. Supporting efforts to expand the scope of parental responsibility for crimes committed by minors 8. Supporting efforts to provide the Governor with authority to override the parole board when anyone convicted of a violent offense-is proposed to be released on parole A-4 Ca -� Exh�bJ A 9. Preserving the authority of local control on issuance of concealed weapons permits 10. Supporting a state-wide gaming commission to oversee all forms of gambling in the state 11. Retaining budget commitments for Public Safety supplemental funding-State COPS Program 12. Supporting legislation to help curb underage drinking 13. Supporting another ABC inspector to work on minor/alcohol issues 14. Opposing new or increased state fees for state provided law enforcement services TRANSPORTATION 1. Changing Gas tax laws to allow local tax for transportation purposes based on a majority vote of the public 2. Increasing transportation funding(including transit,bicycles,others),especially transit 3. Working with Caltrans, SLOCOG,and the California Transportation Commission to abandon Hwy 227 as a state facility within the City 4. Working with Caltrans to modify.the blanket maintenance Agreement to have. City perform all traffic signal maintenance. 5. Providing state funding for CalTrans replacement of structures that have contributed to local flooding 6 Supporting cleanair transit funding-for San Luis Obispo County HUMAN RESOURCES/EMPLOYEE RELATIONS 1. Further reforming Worker's compensation 2. Supporting the legal challenge to SB 402;which instituted-a-system'of compulsory and binding arbitration for the resolution of collective_bargaining disputes with police and fire employees for all public-agencies- 3. Preserving the fiscal integrity of PERS and opposing State mandates that augment PERS benefits outside of the collective bargaining process A-5 �a=9 4. Opposing the expansion of the"Peace Officers' Bill of Rights"or other attempts to curtail management rights 5. Monitoring employee healthcare/benefit changes PUBLIC WORKS 1. Better defining"qualified" bidders in public contracts bidding 2. Redefining Prevailing wages as"average"local wages 3. Streamlining Federal and State process for funding street projects 4. Increase to $20,000 limits of work(from$5,000) for public projects not requiring competitive bidding 5 Supporting Proposition 42 The Transportation Congestion Improvement Act PARKS AND RECREATION AND NATURAL RESOURCES 1. Supporting recreational programming,particularly.for"at risk"individuals within the City 2. Supporting funding for: protection of natural resources(e.g.,the Morros),open space,and parks development(e.g. Proposition 12) 3. Supporting funding for rehabilitation of urban parks 4. Supporting efforts at the State level fora park and open space bond measure 5. Seeking legislative grants supporting the City's acquisition of properties in the City greenbelt 6. Obtaining grant funding for unmet community recreational needs 7. Improving the timeliness and accuracy of fingerprinting for volunteers 8. Supporting another statewide parks and recreation bond measure to be adopted by the state legislature, approved by the governor,and passed by the voting public 9. Encouraging the State Department of Parks and Recreation to expedite the distribution of Proposition 12 funds A-6 Cxh, 61+ A 10. Encouraging our local legislators to include an item in the state budget to allocate $1,000,000 to the City for construction of a portion of the Community Center/Thcrapy Pool project 11. Seeking-legislative exemption from property taxes on lands dedicated to open space purposes which are outside the boundaries of the jurisdiction owning such lands 12. Supporting Proposition 40,The California Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Act of 2002 UTILITIES 1. Providing funding for reclaimed water programs 2. Supporting clean water grant programs 3. Supporting legislation to modify or enhance local government's ability to comply with solid waste requirements 4. Supporting legislation to eliminate mandatory penalties for violations of NPDES Requirements and returning discretionary control to the Regional Water Quality Control Board Executive Officers. (Repeal SB 709) 5. Supporting legislation which will enhance market development for recycled materials 6. Supporting legislation to exempt cities from liability for leakage of hazardous waste discharged to POTW's from sewers 7. Supporting legislation to increase availability of grant funding for replacement of aging infrastructure 8. Supporting legislation promoting the safe;responsible, and cost-effective reuse of biosolids 9. Supporting legislation to streamline the state regulatory permit process through the use of general permits 10. Supporting legislation to establish water efficiency standards in the"Appliance Efficiency Standards" 11. Supporting legislation to return discretion and flexibility to the Regional Water Ouality Control Boards in permitting 12. Supporting Legislation funding local,community based energy efficiency programs A-7 Exh, 6 f A 13. Supporting a sustainable energy policy COUNTY PRIORITIES 1. Reaching agreement with the County and North County communities on solutions for Salinas Reservoir expansion and Nacimiento pipeline projects 2. Developing consistency between the City and County General Plans,particularly to emphasize the concepts that(1)urban development should be municipal, and(2) unincorporated areas shall remain rural, agricultural,or open space in character 3. Working cooperatively with the County in the construction of County administrative and judicial offices and courts in the in the downtown area. Encouraging participation by County in providing nearby parking for County employees and clients 4. Improving regional solid waste management 5. Developing cooperative approaches for providing services on a regional basis 6. Resolving County issues relative to the local review of biosolids to maximize our opportunities for safe and cost effective reuse opportunities 7. Discussing and resolving issues on the City periphery, such as conversion of agricultural zoning to residential subdivision and industrial use,allowing increases in density in residential and industrial areas, allowing substantial development beyond the City's urban reserve line and giving greater credence to and respecting the integrity of the City's planning process 8. Continuing to work with other cities to convince the County that urban-like development should take place within the boundaries of cities,and not in the unincorporated areas—and especially not within the urban growth boundaries of cities 9. Working with the Aimort Land Use Commission to develop a mutuall�ceptable plan for the Margarita Area EDUCATION 1. Supporting efforts to adequately fund the educational units within our community: -primary and secondary schools -special education programs for disadvantaged as well as gifted students -Cuesta College -the CPSU/SLO,whose unique programs and educational approach within the CSU warrant special consideration A-8 c a-�� LOOKING AHEAD: PREDICTING LEGISLATIVE ISSUES FOR 2002 State Budget Crisis and Potential Impact on He encouraged the employer community to negotiate City Revenues with the applicant attorneys, labor representatives, Budget forecasters from both the legislature and and legislators to arrive at a mutually agreed-upon administration agree that the State faces major package. financial shortfalls in the current and next fiscal year. The Legislative Analyst projects a 2001-02 While the governor planned to work with the deficit of $4.5 billion and shortfall in 2002-03 of Legislature and all interested parties on a new reform $12.4 billion. package in 2002, labor interests, represented by Senator Burton and Assembly Member Calderon, have As the Governor and legislators scramble to upped the ante by launching an effort to put a balance the State Budget, a number of city revenues benefits increase initiative on the November 2002 look ripe for the picking. The most vulnerable city ballot. The governor is likely to put a new legislative revenue is the state general fund "backfill" for the proposal on the table in January in an effort to head vehicle license fee reduction made in 1999. That off further work on this initiative, which increases backfill figure is now $3.7 billion for cities and benefits, but does nothing to address his concerns counties. For local government, this evokes images about system reforms. For more information, contact of the early 1990's, when the State grabbed local Amy Brown at browna@cacities.org. property taxes to meet obligations for school funding. Housing We were all gratified to hear the Governor vow at The year 2002 may turn out to be the year for our Annual Conference in December that he would significant housing element reform, based upon the not "balance the budget on the backs of local work of the Lowenthal/Wiggins working group. In government". Nevertheless, we expect that there addition, look for various proposals that attempt to assist local governments when they approve housing, will be pressure within the administration and by with additional fiscal tools triggered on future legislators to consider all options to balance the budget and meet the State's statutory requirement budget upswings. The prospects far a significant to fund schools, including local revenues. Cities housing bond for the November, 2002 ballot also appear favorable. As usual, look for bills sponsored must engage their legislators, local community by developers or housing advocates aimed at limit- organizations and employee groups in keeping local revenues off the table in any state budget negotia- ing the ability of a local jurisdiction to deny hous- tions. For more information, contact ing. For more information, contact Dan Can igg at cranbakk a .i i s.nra� carriggd@racities.org. Workers' Compensation Planning Issues There is widespread agreement among all Despite all the focus on "smart growth" over concerned parties that state workers' compensation recent years, neither the Legislature nor the Gover- benefits to injured California workers are exceed- nor — through their actions —has particularly ingly low when compared to national averages. For embraced the concept. It's also not clear how this the past three years, the legislature has passed issue will be affected by a slowing economy. Look several bills to increase the level of benefits. The for renewed efforts to insert various principles into Governor has vetoed every measure that reached his state and local planning, including potential state desk, asserting that additional reforms are needed. CONTINUED ON PAGE 6 Visit the Leagues Official Web Site--www cacities.org PRIORITY FOCUS/PAGE 5 EXHIBIT B-1 ca-0 Exhrhr'f � LEGISLATIVE PRIORITIES from page 5■■■■■■■■■■■■■■■■■■■■■■■■•■•••■•■■ school bonds, water bonds, infrastructure bonds, as state, even the rural areas where service was not well as legislation to promote transit-oriented profitable. However, due to recent changes in the development and infill development. Group home Public Utilities Commission regulations, generally, issues may also return following the implementation telephone corporations are no longer required to of Proposition 36. For more information, contact provide service throughout entire regions. In the Dan Carrigg at carrwggdL@caceties.org. absence of this obligation, there is no longer any justification for receiving special treatment. For Economic Development more information, contact Amy Brown at browna @ ca c i t i es.ora., Economic downturns tend to create legislative interest in promoting job development and new investment. It is not clear how this issue will play Transportation out, perhaps in expanded authority for enterprise Proposition 42, which will appear on the March zones, expanded job creation tax credits, infrastruc- 2002 ballot would amend the state constitution to ture bonds and other mechanisms. For more informa- dedicate the sales tax revenues on gasoline to tion, contact Dan Carrigg at carriggd@cacities.ora. transportation purposes, particularly beginning in 2008-09. This would provide a significant injection Telecommunications — Public Right of Way of new revenue for the entire transportation system, and for a variety of multi-modal purposes. The League will be working to push legislation that would give the State and local governments the Proposition 42 will help speed up the delivery of authority to receive payment for telecommunications planned traffic relief projects on highways and local companies using public rights-of-way. Currently, rods, and will help expand local bus and commuter State and local governments are authorized to services throughout California. require compensation from some types of telecom- munications providers (including cable television companies and providers of certain other non Haw it works telephone services) but not from others (namely Beginning in 2008-09 and every year thereafter, telephone corporations that provide telephone funds generated from the sales tax on gas would be service to the general public, including internet allocated 40% to the State Transportation Improve- access). ment Program (STIP), 20%to cities for the same purposes, 20% to counties for maintenance, rehabilita- Public rights-of-way are public assets that tion, reconstruction and storm damage and 20% to involve substantial public costs to acquire and transit. Revenue generated from the sales tax on maintain. Many other utilities and specialized users gasoline is projected to reach $1.4 billion by 2008-09, of public rights-of-way pay their fair share for that meaning the STIP would receive approximately $560 use, including electric utilities, gas utilities, oil million, counties and cities $280 each and transit pipeline companies, cable television providers and $280 annually. Proposition 42 also protects funds that sometimes ambulance and taxicab companies. It is were commited to the Govemors Traffic Congestion time to have telephone corporations pay their fair Relief Plan, according to AB 2928 (Chanter 91. Stat- share. utes200. The funds from AB 2928 would be allocated from 2003-04 until 2007-08. This protec- Telephone companies were initially given free tion would be locked in from the year 2003-2004. use of public property in the early days of telephone as a quid pro quo for agreeing to wire the entire CONTINUED ON PAGE 7 PAGE 6/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org B-2 ca_�� LEGISLATIVE PRIORITIES from page 6•■••• ■■•■•••••••■••■••••••••••••• Cities and counties will receive revenues dedicated to The IGSDF, which is used for the receipt and deposit filling potholes and repaving city streets and county of moneys received by the state from Indian tribes roads in dire need of repair throughout many commu- pursuant to the terms of the tribal-state gaming nities in the State. Investing in these projects now will compacts, are available for appropriation by the save the taxpayers costs up to 4 to 5 times greater Legislature in the form of grants for the support of than today's costs should these repairs be delayed. For state and local government agencies impacted by tribal more information, contact Natasha Fooman at government gaming. For more information, contact foomann@cacities.oro. Natasha Fooman at foomann(Pcacities.oro. Public Safety Water We expect to see a huge emphasis on police and With the heavy rains and snow in December, fire funding and reimbursements. Cities will face concerns of a drought in 2002 appear to be lessen- significant costs, especially for training and new ing. Thus, legislation to address water conservation, equipment to combat terrorism. They are the first supply and pricing as they relate to a drought may responders to any public safety emergency, and their or may not come before the Legislature. In addition, number ane job is protecting the public's health and water quality proposals — especially relating to safety. sewage treatment facilities and stormwater systems — may be the focus of some activity. For more These expenditures were not planned and information, contact Yvonne Hunter at unfortunately must come out of existing local h m P @cari i ,;.org budgets. Results of a recent League/CSAC survey regarding local government anti-terrorism expendi- Energy tures indicates current department budget overruns of 13% in public safety services, 10% in fire and EMS A number of energy issues may continue to-be services, and 6% in hazardous materials response debated in 2002. Whether these issues translate into services. These figures are certain to increase by the legislation depends upon what happens within the end of the fiscal year'as cities continue to assess regulatory and legal arenas. Key potential topics are their public safety service requirements. investor-owned utilities' solvency and rescue, public power and the future of direct access. For more Additionally, local governments are being forced information, contact Yvonne Hunter at to protect public infrastructure. The League/CSAC h n 9cacities.ora survey also indicated that local governments have spent $17.8 million for protection of key facilities, Solid Waste and Recycling including security and surveillance systems, fencing, Efforts to revise regulation of solid waste facili camera equipment, water systems, and training. These expenditures represent millions of dollars in ties may once again surface, including potential unanticipated costs to local governments, and there efforts to limit local authority to approve and is no indication of how long they will have to sustain regulate solid waste facilities. for more information, them. contact Yvonne Hunter at huntery@cacities.ora. Gaming is certain to be an important issue this For more information on this and Other. year. Legislation will be introduced regarding the important topics for California cities,visit the method by which moneys from the Indian Gaming League's official Web site,www.caddes.org Special Distribution Fund (IGSDF) are distributed. Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 7 B-3 LEAGUE DEVELOPS 2002 FEDERAL PRIORITY ISSUES As the 107th Congress begins their second year,the League is working with the National League of Cities, California city lobbyists and other appropriate partners on a well-defined list of priorities. Key areas that have been identified as priorities include homeland security, affordable housing,transportation, and telecommunications and technology. HOMELAND SECURITY Support of flexible block grants to local governments to improve security and public safety locally: Such funding would enable cities, as the first-responders, to increase emergency response and public safety efforts, improve communications systems, effectively prepare against bioterrorism attacks, develop citizen preparedness programs, and meet other critical security needs. In the first two and a half months since September 11, California local governments have encountered budget overruns of 13%in public safety. Cities and counties estimate over$1 billion in additional one-time and ongoing funding needs in 2002. AFFORDABLE HOUSING • Support increased resources and tools to expand the supply of affordable housing, including creation of an affordable rental housing production program that provides=cities with direct assistance to help produce, rehabilitate, and preserve affordable housing.-. • Support tax incentives to promote private investment in the production of rental housing.units, including enactment of new tax benefits that complement the federal Low-Income Housing Tax Credit Program and provide additional incentives to invest in.multi-family rental housing. The California Department of Housing and Community:Development in'a recenfreport titled"Raising the RooFfound that California is suffering from a significant shortfall of housing production. California's projected need through 2020 is 220,000 new housing units annually. California is currently producing only around 150,000 units—a 70,000-unit shortfall. Additionally, a September 2000 report by the National Low-Income Housing Coalition, ranked California 45th among states in rental housing affordability. TRANSPORTATION • Support the reauthorization of TEA-21, including improving funding for California's state and local transportation programs. • Support increased flexibility and streamlining reforms that assist cities in operating and maintaining the existing transportation network, including allowing reciprocity between the National Environmental Protection Act(NEPA)and the California Environmental Quality Act(CEQA)to alleviate redundant environmental review for transportation projects and assure more timely project delivery. In California, such changes are key for cities as local governments bear responsibility,for the operation and maintenance of approximately 79 percent of the state's total maintained road system. • Support new funding to enhance the security and safety of California's transportation and infrastructure systems. TELECOMMUN ICATIONSRECH N OLOGY Public SafetySpectrum: Ensure adequate broadcast spectrum is available to local governments for public safety communications. Current spectrum allocations are insufficient and often force local response agencies to operate across different, incompatible radio frequency bands. As a result, agencies responding to emergencies are often unable to communicate rapidly with each other, creating a significant vulnerability for cities. This occurred in the aftermath of the September 11 attacks and remains a constant problem for California public safety agencies. B-4 - - c a�i� Lxh X61+ Public Rights-of-Way Maintenance: Preserve state and local authority to manage public rights-of- way,zoning,and protect public safety and welfare. Oppose proposals that reduce or eliminate compensation paid to cities for the use of their property and rights-of-way. E-Commerce: Support efforts to ensure all sales transactions are treated equally, leveling the playing field for traditional"Brick and Mortar"merchants,out of state sellers such as remote web sites, and mail order outlets, as well as new hybrid"Click and Mortar"businesses. • Oppose proposals that bar collection of sales and use taxes on Internet transactions which cities and their residents depend on to provide critical municipal services (e.g., police and fire services receive approximately 60 percent of city discretionary spending; other important services include sewer and water systems, road maintenance, parks,recreation, and libraries.) • Support state and local governments' ability to require remote sellers without a physical presence in the state to collect use taxes on goods and services sold, and remit those taxes to the purchaser's state. • Support state and local governments'efforts to simplify and reduce compliance costs for remote sellers on use tax remittance. This includes uniform definitions and categories for items subject to sales and use tax and a method to keep these uniform definitions in place for a multi-year period to make such systems sustainable. • Support proposals that allow state and local governments to gain taxing authority automatically after fulfilling Congress'simplification requirements. • Oppose proposals that exempt all intangible property and software downloads from sales and use tax. Makers of these products should pay their fair share. B-5 ca- 1 �