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HomeMy WebLinkAbout1981-02-10; City Council; 6446-1; Legislative PolicyCITY OF CARLSBAD A Tmtisl* AGENDA BILL NO. {/ */*/& - .^^^f^ojL^^^f ***/ Dept. Head DATE: February 10, 1981 City Att¥- City Mgr. DEPARTMENT: City Manager Subject: LEGISLATIVE POLICY Statement of the Matter Many of the problems faced by the city can only be resolved by the state legislature. As a direct result of Proposition 13, the state is assuming more and more authority over local government finances. Currently, about 75% of general fund revenues are controlled by the state. Only 25% are controlled by the City Council. In addition, the state legislature continuously passes laws which directly affect the operations of local government. For these reasons it is highly desirable that the city develop a legislative program which will allow the council to have a timely and effective influence on state legislation. We are fortunate to have Senator Craven and Assemblyman Frazee representing Carlsbad. Both of these legislators have had experience in local government and are supportive of our needs. A city legislative program can enhance the cooperation which now exists and could become a real advantage to the people of Carlsbad. Attached is a proposed legislative program for 1981. It is suggested that the Council review and approve policy positions which will enable the Mayor and City Manager to represent the Council's position in a timely manner. Further, it is recommended the Council authorize the City Manager to enter into a contract for services with John McTighe to monitor the city's legislative program during the year. Fiscal Impact A contract with John McTighe for monitoring the city program would cost $7,200 for 1981. This would include a weekly summary of all bills moving through the legislature and,in addition, up to 8 hours per month of specific analysis on city proposals. Without a contract, the City Manager would monitor the legislature on a time available basis. There would be no weekly summary of bills and significantly less time invested in developing a positive city program. Council Action: 2-10-81 Council approved the legislative policy and directed that the matter of the contract with Mr. McTighe be placed on a future agenda when a full COUncil « present. Page 2 Agenda Bill No. Legislative Policy Exhibits 1. Council Legislative Policy 2. Letter from John McTighe re legislative hearings, 1/29/81 3. Agenda Bill 6446, 12/2/80 4. Summary of legislation, John McTighe, 12/15/80 Recommendation 1. That Council review and approve Council Legislative Policy for 1981. 2. That Council authorize City Manager to enter into a contract with John McTighe for legislative service, not to exceed $7,200. CITY OF CARLSBAD COUNCIL LEGISLATIVE POLICY NUMBER POLICY BILL NUMBER ACTION I. II. III. IV. V. VI. VII. VIII. IX. COASTAL ZONE HOUSING CITY REVENUES DEFLATOR BUENA VISTA LAGOON DREDGE WATER RESOURCES PERIPHERAL CANAL AIR POL- LUTION VEHICLE INSPECTION SUBSIDIARY DISTRICTS HOUSING BOND COMMITTEE COASTAL ZONE LCP COASTAL ZONE AGRI- CULTURAL EXHIBIT 1 CITY OF CARLSBAD COUNCIL LEGISLATIVE POLICY PURPOSE These general legislative policy guidelines allow the City Manager and staff to respond in a timely manner to the legislative issues in Sacramento. Positions are stated on those issues which have the most significant potential impact upon the City of Carlsbad. This legislative policy is considered a dynamic working document and is intended to be expanded and modified as additional issues or new information become available to the Council. PROCEDURE Issues to be included in the Council Legislative Policy will be referred to the City Manager for analysis and recommendation of a policy position for consideration by the Council. Once the Council has taken a position on a specific issue, it will be incorporated into this policy statement. The City Manager will report to the Council monthly on the status of legislation relating to the legislative policy guidelines. The City Manager will prepare correspondence and testimony for the Mayor and/or Council members on specific legislation which is in support of the policy positions included in these guidelines. The City Attorney shall be involved in the formulation of legislative proposals to ensure that; a. the policies are consistent with legal principles and constitutional restrictions; and b. the proposal legally accomplishes the policy. I. COASTAL ZONE - HOUSING A. BACKGROUND The California Coastal Act of 1976 provides for the planning and regulation of development under a coastal development permit process within the coastal zone which is based on various coastal resources planning and management policies set forth in the act. Some of the policies require that housing opportunities for persons and families of low or moderate income shall be protected, encouraged, and, where feasible, provided. It is further required that new housing in the coastal zone be developed in conformity with the standards, policies, and goals of local housing elements adopted in accor- dance with certain provisions of the Government Code. The Coastal Act further requires that a coastal development permit or any development, or action approved on appeal, be subject to reasonable terms and conditions to ensure that such development or action will be in accordance with the Coastal Act. The above noted provisions of the Coastal Act may in fact result in a conflict with the city's effort to plan for housing opportunities for persons of all income groups in the city as a whole. B. POLICY It is the legislative policy of the Council to support: 1. Legislation to amend the California Coastal Act of 1976 to delete the authority of the Coastal Commission to regulate the provision of low or moderate income housing in the coastal zone. — 3 — II. CITY REVENUES - DEFLATOR A. BACKGROUND The passage of Proposition 13 in June, 1978 resulted in several significant changes in the funding of local agencies throughout the state. In 1979 the legislature enacted Assembly Bill 8 which, among other provisions, shifted a share of the property tax from school districts to cities in lieu of previous "state bail out" funding. Assembly Bill 8 also contained a "deflator" provision which would require a reduction in the amount of revenue to cities if the state's revenues fell below a certain amount. The deflator provisions, as well as arbitrary reductions in existing property tax allocation, make it impossible for the city to accomplish intermediate and long range fiscal planning essential to sustaining responsiveness and effectiveness of the city's services. B. POLICY It is the legislative policy of the Council to support: 1. Legislation that will repeal the deflator provisions of Assembly Bill 8 of 1979. It is the legislative policy of the Council to oppose: 1. Legislation that provides a reduction in the amount of property tax revenue that is due to the city pursuant to Assembly Bill 8 of 1979. III. BUENA VISTA LAGOON - DREDGE A. BACKGROUND The City of Carlsbad is endowed with the inclusion of the Buena Vista Lagoon within its city limits. This lagoon provides a unique habitat which is supportive of water- fowl and other wildlife. The city encourages the preservation and enhancement of the Buena Vista Lagoon as a wildlife refuge. Damage to the lagoon caused by siltation from the winter rains of 1980 has resulted in de- priving wildlife of much of their natural habitat. B. POLICY It is the legislative policy of the Council to support: 1. Legislation that would appropriate funds to the State Department of Fish and Game to dredge and replenish the Buena Vista Lagoon. -5- IV. WATER RESOURCES - PERIPHERAL CANAL A. BACKGROUND Without construction and operation of the Peripheral Canal, southern California will not have a reliable adequate water supply after the cutoff of Colorado River water. Senate Bill 200 enacted in 1980 authorizes construction of the 43 mile Peripheral Canal to carry additional water from northern California to southern California. However, a referendum to bar construction of the Peripheral Canal has qualified for the ballot. Unless a statewide special election is called for the referendum, it will be voted on at the June, 1982 election. Until such time that an election is held on the referendum, no work can begin on the canal. It is important that this referendum be voted upon as early as possible in order to either locate and develop alternative water supplies or to avoid costly escalation of construction costs of the canal. B. POLICY It is the legislative policy of the Council to support; 1. Legislation that will call for a special election on the Water Facilities Referendum Statute at an early date. -6- ? V. AIR POLLUTION - VEHICLE INSPECTION A. BACKGROUND The federal Clean Air Act Amendments of 1977 require states which do not meet federal clean air standards to implement mandatory periodic motor vehicle inspection and maintenance pro- grams. The act provides sanctions for states which do not comply with this provision. These sanctions include the withholding of certain federal transportation, water quality and air quality funds that would otherwise be received by public agencies within the state. The California Legislature has not enacted legislation for a motor vehicle inspection and maintenance program. The federal Environmental Protection Agency and Depart- ment of Transportation have imposed the funding sanctions on California. Included within the funding sanctions are funds for expansion and improvement of water pollution control facilities and federal funds for state and local highway projects. It is believed that the long run effect of these sanctions will be to thwart the ability of the city to accomplish the orderly growth and development of its general plan. B. POLICY It is the legislative policy of the Council to support: 1. Legislation that would authorize the implementation of a periodic motor vehicle inspection and maintenance program. -7- VI. SUBSIDIARY DISTRICTS A. BACKGROUND The Council finds and declares that the orderly and efficient provision of public services to the residents within the city can best be accomplished if a single public agency provides the same service to all portions of the city and if that service can be combined with services of a similar nature. In order to accomplish the above, it may be desirable to seek the merger of a sub- sidiary special district with the city. Present state laws providing for the creation of a subsidiary district are unclear and costly to comply with. The law should be simplified and clarified in order to carry out the intention of the legislature. B. POLICY It is the legislative policy of the Council to support: 1. Legislation that would amend subdivision (a) (1) of section 56403 of the Govern- ment Code to clarify that the portion of territory of the subsidiary district lying within the city shall represent 70 percent or more of the assessed value of land within the district^ -8- 10 VII. HOUSING - BOND COMMITTEE A. BACKGROUND The State of California encourages the provision of housing opportunities for low and moderate income persons and families through, among other means, the provision of state-backed mortgage revenue bonds sponsored by cities and counties. The State Housing Bond Committee must approve the proposed bonds before they may be offered for sale. That committee, however, consists entirely of state officers with no local or legislative representation. B. POLICY It is the legislative policy of the Council to support: 1. Legislation that would change the membership of the State Housing Bond Committee by deleting the Governor and Executive Director of the California Housing Finance Agency and replacing them with a representative of city government and a representative of county government. -9- VIII. COASTAL ZONE - LOCAL COASTAL PLAN A. BACKGROUND Current state law requires the Coastal Commission to adopt the Carlsbad Local Coastal Plan (LCP) on or before July 1, 1981. Based upon progress to date, it is unlikely that the state will complete hearings before July 1. In addition, the city has many differences with state staff over provisions in the LCP. It is unlikely that the city will be able to resolve these differences. Pursuant to the Chula Vista Court decision, it is anticipated that the state will disapprove the LCP. Since there are no penalties in the law for failure to adopt the LCP on July 1, it seems advisable to delete the July 1, 1981 compliance date. B. POLICY It is the legislative policy of the Council to support: 1. Legislation to repeal section 30171 of the Public Resources Code which requires the adoption of an LCP for portions of the City of Carlsbad on or before July 1, 1981. IX. COASTAL ZONE - AGRICULTURE A. BACKGROUND The State Coastal Commission defines agri- cultural land as land which produced $200 gross income per acre. Using that definition, large portions of Carlsbad are being designated in the Local Coastal Plan (LCP) as permanent agriculture. Due to the economics of agri- culture today, the definition is no longer appropriate. B. POLICY It is the legislative policy of the Council to support: 1. Legislation to lift the $200 per acre ceiling now used by the Coastal Commission to define agricultural land. 13 January 29, 1981 JOHN J. McTIGHE, M.P.A. PUBLIC AFFAIRS CONSULTANT 1438 Bathurst Place El Cajon, California 92020 (714) 440-3808 Mr. Frank Aleshire City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Dear Frank: The following is a list of legislative hearings scheduled over the next few weeks on subjects that might be of interest to the City of Carlsbad: Wednesday, February 4, 1981 - Senate Local Government Com- mittee - "Alternative methods for financing public facilities required for residential development - Who should pay for what?" Wednesday, February 11, 1981 - Senate Local Government Com- mittee - "The impact of the proposed 1981-82 budget on Lo c a1 Government." Tuesday, February 17, 1981 - Senate Judiciary Committee - "SB 61 (Garamendi) Acquired property: compensation" Friday, February 20, 1981 - Senate Elections and Reappor- tionment Committee (in San Diego) - "Senate Reapportionment - San Diego and Riverside Counties." Tuesday, March 3, 1981 - Assembly Transportation Committee - "ACR 21 (L. Stirling) Freeways (State Route 52 & State Route 125 inclusion in the state transportation improvement pro- gram) . " Please let me know if you would further information on any of these hearings. Until we complete the legislative policies and get Council adoption, I will continue to review the list of scheduled hearings and will let you know of the ones r think look like they may be of interest to your city. Very truly yours, Policy Analysis Legislative Analysis Fiscal Analysis EXHIBIT 2 Legislative Representation CITY OF CARLSBAD AGE11DA BILL DATE : Initial: Dept., Hd • DECEMBER 2, 1980 DEPARTMENT:CITY MANAGER C. Mgr.TV- PROPOSAL TO PROVIDE LEGISLATIVE SERVICES Statement of the Matter John McTighe has proposed to provide the following leoislative services to the City: ' ' 1 2 Assist in formulation of State legislative policies, Monitor and report on all proposed State legislation which relates to adopted legislative policy of the City, 3. Provide an analysis of effect of specified legislation on Carlsbad. . " " . A more detailed description of the proposed service is contained inExhibit I. The.services that McTighe offers would allow the City to organize its State legislative activities into a comprehensive program which woulc^ provide a more effective way of dealing with legislative issues A numcer of significant issues with profound local effect will be before the Legislature in the coming year. Such issues,the local coastal program, annexation tax-split, inclusionary zoning, low-moderate housino, and the AB-8 deflator are just a sample. The program as outlined " by McTighe would allow the City to become more proactive and not always be in a reactive position. . Fiscal Impact: ; • The cosifof proposed service is broken into three components: 1. Legislative Policy Development $1,540 2. Legislative Monitoring • $2 400 3. Legislative Analysis $4,800 TOTAL $8,740 The funds for this service would need to be appropriated from the Contingency Reserve which currently has a balance of $385,305. Exhibits ' ... 1. Letter from John'McTighe dated October 10, 1980. Re commc n d a t i oh That the City enter into an agreement with Mr. McTighe for services • outlined in Exhibit I. Direct staff to bring back a Resolution approving- this agreement. EXHIB.IT 3 JOHN J. McTIGHE, M.P.A. PUBLIC AFFAIRS CONSULTANT 1438 Bathurst Place El Cajon, California 92020 (714)440-3808 October 10, 1980 Mr. Frank Aleshire City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, Ca 92008 Dear Frank: I am submitting a revised proposal for legislative services along the lines we recently discussed. Specifically, I have reduced the scope of the legislative monitoring and legislative analysis to cover only those issues which will be included in the City's legislative policies. Because the number and complexity of the issues to be covered is unknown at this time, I have quoted you a minimal number of hours which in my judgment would be necessary to carry out these services. The proposal contem- plates the possibility of additional analysis at a set hourly rate added to the base cost. I have also quoted you a rate for legislative representative services should you have a need for such services. The prices quoted in this revised proposal are good only if accepted by the City Council not later than December 1, 1980. In summary, I am proposing three distinct services: 1) Legislative Policy Development, 2) Legislative Monitoring, and 3) Legislative Analysis. Should you choose to contract with me for all three services, the minimum total cost to the city for the period December 1, 1980 through November 31, 1981 would be $8,740.00. You have the option, however, of contracting for only one or two of the proposed services. For example, you could contract for the legislative policy development and monitoring of the related legislation and leave the analysis of the specific impact of the proposed legislation to City staff. I am hoping your Council will act upon this proposal relatively soon so that we may begin the legislative policy development on December 1 in order to have the policies in place as early in the legislative session as possible. Policy Analysis • Legislative Analysis « Fiscal Analysis • Legislative Rcpiesentation Mr. Frank Aleshire City of Carlsbad October 10, 1980 Page Two Please give me a call if you need additional information or have questions about the revised proposal. Very truly^yours, JOHN J. McTIGHE, M.P.A. PUBLIC AFFAIRS CONSULTANT 1438 Bathurst Place tl Cajon, California 92020 (714)440-3808 , Proposal for Legislative Services for the City of Carlsbad, California Revised October 7, 1980 Purpose of Services: 1. To assist the City Council arid Manager in the formulation of State legislative policies. 2. To summarize, monitor and report to the City Council and Manager on all proposed State legislation which relates to the adopted legislative policies of the City. 3. To provide the City Council and Manager with analysis of the potential effect of specified proposed legislation on the City of Carlsbad. Scope of Services: Consultant will develop for Council consideration and adoption a set of legislative policy statements dealing with those issues anticipated to be considered by the State Legislature in the 1981-82 biennial session of importance to the City. Consultant will regularly monitor and report on all proposed legislation which relates to the City's adopted legislative policies. Consultant will perform up to eight hours per month of analysis of pending legislation. Legislation to be analyzed will be determined by the City Manager or his designated representative. ' i Description of Services: I 1. Legislative Policy Development This service will consist of meetings with City Council I Members, the City Manager and key City staff to determine < those issues of greatest significance to the City which | might be addressed by future legislation. In addition, | consultant will meet with legislators, staff of the League of California Cities and staff of other cities in San Diego County to determine which issues are most likely to be considered in the 1981-82 legislative session. At the conclusion of the above meetings, consultant will draft a set of policy statements for the Council's consideration which most nearly reflect the consensus of of Council and staff on those issues most likely to be addressed by the Legislature. Consultant will meet with the Council in a workshop session to discuss the proposed policies. Consultant will follow up the workshop session with the submittal of a final set of legislative policies for adoption by the City Council. Policy Analysis • Legislative Analysis « Fiscal Analysis . Legislative Representation Proposal for Legislative Services for the City of Carlsbad, Ca October 10, 1980 Page Two 2. Legislative Monitoring This service will consist of continual review of all legislation introduced or amended that relates to the legislative policies of the City. Consultant will provide a weekly written summary of all such legislation that has been introduced or amended in the previous week. In addition, consultant will provide a monthly written summary of the status of all legislation that has been previously reported on in the weekly summaries. 3• Legislative Analysis Analysis will consist of a summary of the proposed legis- lation together with, a description of the potential effect passage of the legislation would have on the City of Carlsbad. Consultant will provide the City Manager with a complete written analysis of the legislation and its potential effect on the City. Consultant will further meet with the City Council once a month to orally review legislation and answer questions concerning the written analysis. During conduct of analysis, consultant will meet with appropriate City staff to gather pertinent data and information to be utilized in the analysis. Term of Services: 1. Legislative Policy Development - December 1, 1980 through January 31, 1981. 2. Legislative Monitoring - December 1, 1980 through November 31, 1981. 3. Legislative Analysis - December 1, 1980 through November 31, 1981. Cost of Services: 1- Legislative Policy Development: $1,540.00 payable in two equal installments ol:£770.00, the first due ten days following submission of the draft set of policy statements and the final due ten days following submission of the final set of policy statements. Proposal for Legislative Services for the City of Carlsbad, Ca October 10, 1980" Page Three 2. Legislative Monitoring: $2,400.00 payable in tv/elve equal monthly installments of $200.00 by the fifteenth day of each month, commencing with January, 1981. 3- Legislative Analysis; $4,800.00 payable in twelve equal monthly installments of $400.00 by the fifteenth day of ' each month, commencing with January, 1981. Additional Services: 1. Legislative Analysis If the City Manager or his designated representative authorize analysis in excess of eight (8) hours in any one month, consultant will provide such services at an ho\irly rate of $50.00 for the first eight additional hours, $45.00 for each of the next four hours/ and $40.00 for each hour thereafter up to a total of twenty four additional hours in any one month. Such additional services will be invoiced to City on a monthly basis and are payable within ten (10) days following the receipt of consultant's invoice. 2. Legis 1 atiye Repres en tat.ion If the City Council should determine to use consultant's services to represent the City's interests with the State Legislature or individual Legislators, consultant will provide such services at an hoxirly rate of $35.00 plus expenses incurred in the performance of such services. Such additional services will be invoiced to City on a monthly basis and are payable within ten (10) days following the receipt of consultant's invoice. JOHN J. McTIGHE, M.P.A. PUBLIC AFFAIRS CONSUL! ANT 1438 Bathurst Place El Cajon, California 92020 (734)440-3808 August 1980 In these times when the State Legislature is exerting increasing influence over the affairs of local agencies, it is more important than ever before that local agencies keep abreast of proposed changes in State law that affect them. It is most critical that local agencies take advantage of every opportunity to insure their voices are heard in Sacramento. State associations can only go so far in the legislative process and by necessity must represent the best interests of the majority of their membership on those few issues where a concensus of the members is possible. John J. McTighe has developed a unique set of services tailored to the individual needs of local agencies to be involved in the State legislative process. These services are intended not to duplicate, but rather to supplement the services currently provided by state associations. Agencies may pick from several types of services to develop a custom package which precisely fits their needs. Each agency pays only for what it needs. Contracting with John J. McTighe for legislative services offers the advantages of receiving highly professional legis- lative summaries, analyses and/or representation for a fraction of the cost of employing staff to perform the same functions. John combines over ten years of experience in legislative representation and local government administration with solid Policy Analysis • Legislative Analysis • Fiscal Analysis . Legislative Representation grounding in public affairs and administration. He is able to concentrate on legislation and bring your agency the quality of services that previously only the larger local agencies could afford. John possesses a firm belief in the importance of local control of governmental functions and an understanding of the inter- governmental realities of the 1980s, Local agencies are able to select from legislative summaries, legislative analyses, and legislative representation or a combination of these services depending on their need. In addition, John J. McTighe will work with the local agency to develop a positive state legislative program to allow the agency to aggressively track legislation and to work toward the enactment of legislation that will be in the best interests of the agency's constituents. As the State is becoming more of a factor in local affairs, few agencies can afford not to have the services of John J. McTighe. It is important that you act now if you feel your agency can use these services. The next Legislative session is only a few months away and you won't want to miss any legislation that will affect you. There are only a limited number of clients that John J. McTighe will be serving for the 1981 session. You are encouraged to contact John today so you don't miss the opportunity to be among them. JOHN J. McTIGHE, M.P.A. PUBLIC AFFAIRS CONSULTANT 1438 Bathurst Place El Cajon, California 92020 (714)440-3808 December 15, 1980 Honorable Ronald Packard, Mayor and Member3 of the City Council City of Carlsbad 1200 £lem Avenue Carlsbad, California 92008 Dear Mayor Packard and Council Members: During discussion of agenda bill #6446 on December 2, 1980, your Council determined to postpone consideration of contrating for my legislative services until after you had an opportunity to review a sample of my work. In a subsequent discussion with the City Manager, I agreed to prepare, at no obligation to the City, a summary of legislation introduced in the first week of the new legislative session that might be of interest to you. Due to the lack of a statement of legislative policies of your Council, the following summary may include issues which are not of particular concern to youi However, I have attempted to be selective and have covered only those issues which would appear to have some effect on the City of Carlsbad. SUMMARY OF LEGISLATION INTRODUCED AS OF DECEMBER 5. 1980; Coastal Act Senate Bill 36 by Senator Beverly would exempt the conversion of apartments to condominiums from the requirements of the Coastal Act. Preprint Assembly Bill 25 by Assemblyman Frazee would prohibit the Coastal Commission from placing any housing requirements or conditions on coastal development permits if the city or county has an adopted housing element in conformance with the Government Code. Buena Vista Lagoon Senate Bill 13 by Senator Craven would appropriate $1.5 million for dredging and repair of the Buena Vista Lagoon Ecological Reserve in order to restore and preserve the wet- land habitat for wildlife. EXHIBIT 4 Policy Analysis • Legislative Analysis « Fiscal Analysis • Legislative Representation Honorable Ronald Packard, Mayor ar;d Members of tne City Council City of Carlsbad December 15, 1930 Page two Housing Senate Bill 53 by Senator Boatwright would delete the Governor and the Executive Director of the California Housing Finance Agency from membership on the Housing Bond Credit Committee and would add in their place two Governor's appointees, who would be a mayor or a councilman and a coanty supervisor. The mayor or city councilman would be appointed from among nominees sxabmitted by the League of California Cities. The county supervisor would be appointed from among nominees submitted by the County Supervisors Association of California. Senate Constitutional Amendment 1 would remove the requirement for an election to approve a public body's development, con- struction or acquisition of a low rent housing project. It would substitute a referendum on such projects if a petition signed by 10% of the number of voters who voted in the last gubernatorial election is submitted within 60 days of the required public notice of intent to develop, construct or acquire. Assembly Bill 39 by Assemblyman Young would authorize the sale of $5 billion of tax-exempt revenue bonds by the California Housing Finance Agency to purchase mortgage loans made by savings and loan associations prior to January 1, 1982. The bill requires that at least 75% of the monies received by the savings and loan associations be used for relending to provide housing for persons of low or moderate income. Local Agency Finance Senate Bill 25 by Senator Campbell would distribute a 1% rate of the State sales and use tax to cities and counties in pro- portion to population. For the 1981-82 fiscal year only, each city ana county receiving the sales tax revenue would receive a reduction in property tax revenue equal to the amount of additional sales tax revenue received. The amount of property tax not received by cities and counties as a result of this bill would be received by school districts on a tax rate area basis. Senate Bill 29 by Senator Campbell removes most of the "cost-of-living" allowances built into existing state law and substitutes fixed amounts allowing for adjustments to be made only in the annual State Budget Act. The only por- tion of this bill which directly affects cities deals with the reimbursement for the business inventory tax exemption. Honorable Ronald Packard, Mayor and Members of the City Council City of Carlsbad December 15, 1980 Page three Local Agency Finance (continued) Assembly Bill 21 by Assemblyman Lockyer would revise the form- ula for distributing money allocated to cities and counties from the Financial Aid to Local Agencies Fund by deleting the part of the formula which distributes funds among cities and the county based on per capita personal income and substituting a part which distributes funds based on the proportion of entitlements received by each city and the county under the federal Housing and Community Development Act of 1974, as amended. Assembly Bill 45 by Assemblyman Vasconcellos requires the fiscal committee of each house before completing its action on the annual budget to review each state revenue and ex- penditure program which provides for automatic cost-of-living adjustments to determine whether it is appropriate to index that program and if so, whether the index presently in use most accurately reflects the inflation effect on the program. Taxation Senate Bill 44 and Senate Constitutional Amendment 8 would require all residential real property to be annually reassessed to its fair market value. The bill would limit the total amount of property tax collected from residential real prop- erty to the amount that would have been collected without the proposed change in valuation. Assembly Bill 10 by Assemblyman Kelley would exempt from state and local sales and use taxes the sale of liquefied petroleum gas for residential use in household appliances. This bill would reimburse cities and counties for the revenue loss from the exemption. Assembly Bill 19 and Assembly Constitutional Amendment 1 by Assemblyman Lockyer v.7ould establish a yield tax on gas and oil production throughout the state in lieu of property taxes on such production. This bill would provide for the payment to local agencies of proceeds from the Oil and Gas Production Fund equivalent to the average of the 1980-81 & 1981-82 property tax received by the local agencies from oil and gas production, increased annually by the percentage increase in the state's "Gatin" expenditure limit" The balance of the monies not distributed to local agencies would be deposited in the Oil and Gas Production Tax Account of the state General Fund. If ACA 1 is enacted by the people, this measure would become effective for the 1983-84 fiscal year. Honorable Ronald Packard, Mayor and Members of the City Council City of Carlsbad December 15, 198C Page four Taxation (continued) Assembly Bill 20 by Assemblyman Lockyer would cancel all interest and penalties owing due to rhe late payment of supplemental unsecured property taxes for 1978-79, if the supplemental taxes are paid prior to December 31, 1981. Assembly Constitutional Amendment 6 by Assemblyman Dennis Brown would amend the Constitution to state that unsecured property on the 1978-79 roll is covered by the 1% limitation of Proposition 13. This measure would require local agencies which"collected taxes at a higher rate for 1973-79 to refund the excess taxes upon a claim being made. Assembly Constitutional Amendment 4 by Assemblyman Campbell would exempt the acquisition of real property as a replace- ment for comparable property from reassessment, if the per- son acquiring the real property has been displaced from the property replaced by eminent domain proceedings, by acquis- ition by a government agency, or by government action which has resulted in a judgement of inverse condemnation. Economic Development Senate Bill 27 would allow for the establishment of Urban Job Zones in any city over 4,000 population if any of the following conditions exist: 1. The unemployment rate within the zone exceeds 2 times the national average and the poverty rate exceeds 30 percent; 2. The unemployment rate within the zone exceeds 3 times the national average; or 3. The poverty rate within the zone exceeds SO percent. Once designated an Urban Job Zone, the designation would remain effective for 5 years. The designation of the Urban Job Zone would lead to special tax incentives under the per- sonal income tax law and the bank and corporation tax law for businesses located within an Urban Job Zone. Land Use Assembly Bill 78 by Assemblyman McAlister revises the pro- cedures for suits in eminent domain to require a named defendent who holds a lien that secures a special assess- ment to file an answer, instead of a certification, with the court* • . Senate Bill 15 and Senate Constitutional Amendment 15 by Senator Speraw would require a public entity to prepare an economic analysis estimating the aggregate dollar amount of reduction in fair market value that a regulation, control or ••«. - Honorable Ronald Packard/ Mayor and Members of the City Council City of Carlsbad December 15, 1980 Page five •. Land Use (continued) restriction on the use of real property will have before enactment of such regulation, control or restriction. This bill requires notification of property owners affected by such action and an offer to pay the total amount of the impairment in fair market value to those whose estimated reduction in valueis 50% or more. Establishes a cause of action in the courts for property owners whose property has been impaired by the enactment of a regulation, control or restriction. Permits a two part trial to allow the public entity to rescind the action or affirm the action and pay just compensation within 45 days of the court's finding of substantial impairmentT Air Pollution Senate Bill 33 by Senator Presley would authorize an air pollution control district to implement a motor vehicle inspection and maintenance program in a non-attainment area or to require the Office of Motor Vehicle Inspection (created by this bill) to implement such a program. The inspection and maintenance program would apply to 1969 and later model-year vehicles from whose owners would be collected an annual fee not toexceed $15 when the vehicle is rereg- istered each year.This bill would allow for either a cen- tral inspection or for decentralized inspection by licensed clean air test stations. Local Agency Formation Commissions Senate Bill 55 would allow an alternative member appointed by an independent special district selection committee to serve and vote if a regular member representing independent special districts is disqualified.(Johnson) Peripheral Canal-Special Election Assembly Bill 9 would call a special election to be held on June 2, 1981 to consider a referendum on Senate Bill 200 of the 1979-80 session(the peripheral canal bill).(Johnson) Assembly Bill 68 by Assemblyman Young would call a special election to be held on April 7, 1981 to consider a referen- dum on Senate Bill 200 of the 1979-80 session(the peripheral canal bill) and an initiative measure entitled "The Gift and Inheritance Taxes Initiative Statute." Public Communications Assembly Bill 98 would make it a misdemeanor for an employer to interfere with, restrain, or coerce employees with respect: to their communications to public officials. (Harris) Honorable Ronald Packard, Mayor and Members of the City Council City of Carlsbad December IS, 1980 Page six I welcome the opportunity to sit down with each of you to personally review the legislation reported on here as well as to discuss the areas of particular concern that you believe might be addressed in future legislation. I hope you have found the above information useful and agree with me that a continuation of such service will be of benefit to your Council. Very truly yours,