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Item 16 - Status Report on Pending Legislation ~ ~~-~3-9(i:, AGENDA REPORT SUMMARY TO: DATE: Honorable Mayor and Members of the City Council James L. Bowersox, City Man~ ~~ John D, Fitch, Assistant City Manager~ Penny Riley, Senior Management Ana1ys Scott A. Nespor, Management Intern~~ February 27, 1996 FROM: INITIATED BY: SUBJECT: Status Report on Pending Legislation ABSTRACT The League of California Cities has informed the City of AB 1770 (Brewer) Public Utilities: Services To Tenants and S8 1590 (O'Connell) Santa Clara/Guardino Decision Implementation, which are pending in the State Legislature. Additionally, staff has reviewed the March 1996 Ballot and recommends that the Council support Proposition 203: Public Education Facilities Bond Act of 1996. ENVIRONMENTAL REVIEW This informational report is not subject to CEQA review. FISCAL IMPACT There is no fiscal impact associated with this informational report. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Assemblyman Jan Goldsmith; Senator David Kelley; Bob Wilson, the City's Lobbyist; and the League of California Cities will be mailed a copy of this agenda report. RECOMMENDATION It is recommended that the City Council oppose AB 1770, support SB 1590, and support Proposition 203 and direct staff to notify the appropriate legislative members, committees, and organizations of the City's position on these measures. ACTION 1 of 4 FrB 27 1996 ITEM 16 ~ AGENDA REPORr- CITY OF POW A Y This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. INITIATED BY: Honorable Mayor and MemberS~f e City Council James L. Bowersox, City Mana ^ . . . ~\~ John D. Fltch, Asslstant Clty Manager Penny Riley, Senior Management Analys Scott A. Nespor, Management Intern;;~ TO: FROM: SUBJECT: February 27, 1996 Status Report on Pending Legislation DATE: BACKGROUND The League of California cities has informed the City of AB 1770 (Brewer) Public Utilities: Services To Tenants and SB 1590 (O'Connell) Santa Clara/Guardino Decision Implementation. Additionally, staff has been informed of Proposition 203: Public Education Facilities Bond Act of 1996. FINDINGS AB 1770 (Brewer) Public utilities: Services To Tenants Assemblymember Brewer introduced AB 1770 on February 24, 1996, which prohibits municipally owned utilities and municipal utility districts from seeking any recovery of charges or penalties for the furnishing of services (such as water, trash, or sewer) from any subsequent tenant or the property owner due to nonpayment of charges by a previous tenant. This legislation has passed the Senate Judiciary Committee and has been referred to the Senate Appropriations Committee. AB 1770 would change the procedures municipal utilities use in requiring security deposits and collecting bad debts and non-payment of services. It would require municipal utilities to use different deposit and collection procedures than those used by investor-owned utilities. It is recommended that the City Council oppose AB 1770. ACTION: 2 of 4 rEa 2 7 1996 ITEM 16 status Report on Pending Legislation ""- February 27, 1996 Page 2 SB 1590 (O'Connell) Santa Clara/Guardino Decision Implementation The League of California cities has drafted a measure which generally contains the following provisions: . Implements the Santa Clara/Guardino court decision by confirming that Proposition 62 subjects all taxes imposed or increased after December 14, 1995 to the majority voter requirements of Proposition 62. . Designates in stature that December 14, 1995 is the effective date of the Supreme Court Santa Clara/Guardino decision. . Validates all taxes enacted prior to December 14, 1995. This legislation encodes the Santa Clara/Guardino court decision and clears up confusion over the validity of taxes levied by California counties and General Law cities before the Santa Clara/Guardino decision. Currently, taxes that have not met the 2/3 voter approval requirement might be invalid. If not passed, cities which have already experienced cutbacks in revenues during the past decade might see their revenues further diminished. Some cities might be faced with the repayment of taxes, if this bill is not passed into law. It is recommended that the City Council support SB 1590. Proposition 203 - Public Education Facilities Bond Act of 1996 Proposition 203 is slated for the March 26, 1996 Primary Election and authorizes the issuance of $3 billion of State general obligation bonds to provide funds for school facility improvement programs. The bonds would help upgrade and construct classrooms, libraries, and other needed facilities in California's public schools, community colleges, and state universities. The legislation earmarks $2.025 billion for primary and secondary schools and $975 million for higher education. Funds will be used to make current classrooms safer in the event of earthquakes, to equip classrooms for the computer technology in the 21st century, to reduce class size, and to meet enrollment growth. For the poway Unified School District, these funds could enrich the redevelopment funds being used to retrofit older schools. It is recommended that the City Council support Proposition 203. ENVIRONMENTAL REVIEW This informational report is not subject to CEQA review. 3 of 4 FEB 2 7 1996 ITEM 16 status Report on Pending Legislation February 27, 1996 Page 3 FISCAL IMPACT There is no fiscal impact associated with this informational report. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Assemblyman Jan Goldsmith; Senator David Kelley; Bob Wilson, the City's Lobbyist; and the League of California cities will be mailed a copy of this agenda report. RECOMMENDATION It is recommended that the City Council take the following action: 1. Oppose AB 1770 and direct staff to notify the Senate Appropriations Committee of the City's support for the measure. 2. Support SB 1590 and direct staff to notify interested parties of the City's support for the measure. 3. Support Proposition 203 and direct staff to notify interested parties of the City's support for the measure. 4 of 4 rEB 2 7 1996 ITEM 16