Item 35 - Status Report on Pending Legislation
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AGENDA REPORT SUMMARY
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TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch, Assistant City Managef1L~~
Penny Riley, Senior Management ~s~
Brian Jewett, Management Intern
DATE: August 1, 1995
SUBJECI': Status Report on Pending Legislation
ABSTRACI'
The League of California Cities has informed the City of the following measures which
are pending in the State legislature: AB 1949 (Conroy) Retention, Public Works
Contracts; SB 646 (Kelley) Alcoholic Beverage Licenses, Bankruptcy Transfers; and SB
561 (Mountjoy) Notification, Violent Felon Release.
ENVIRONMENTAL REVIEW
Environmental review is not required for this item under CEQA.
FISCAL IMPACI'
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 ODDose AB 1949; ODDose SB 646; and SUDDort
SB 561.
ACI'ION
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CITY OF POWAY
AGENDA REPORT
Th1s report is 1nclwded on the Cons.nt Calandar. Thera will b. no saparat. discussion of the report pr10r to approva1 by the City
Council un'e,s ~b.rl of the Council, staff or public request it to b. removed from the Consant C.lendar and discuss.d saparately.
If you wish to hava this report pulled for discussion, pl..,. f1'1 out. slip indicating the report number and giva it to the City
Clark prior to the beg1nn1ng of the City Council ~.ting.
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Ma~ ~^
INITIATED BY: John D. Fitch, Assistant City Manage~
Penny Riley, Senior Management Analys
Brian Jewett, Management Intern~~
DATE: August 1, 1995
SUBJECT: Status Report on Pending Legislation
BACKGROUND
The League of California Cities has informed the City of the following measures
which are pending in the State legislature: AB 1949 (Conroy) Retention, Public
Works Contracts; SB 646 (Kelley) Alcoholic Beverage Licenses, Bankruptcy
Transfers; and SB 561 (Mountjoy) Notification, Violent Felon Release,
FINDINGS
AB 1949 (Conrov) - Retention. Public Works Contracts
Assemblymember Conroy introduced AB 1949 on February 24, 1995, which would limit
cities to 5 percent retention payments on public works projects from contractors,
Currently, cities can withhold up to 10 percent until final completion of the job
for which they are contracted. This assures the public that the work they are
paying for is completed to specifications and guarantees subcontractors are
compensated,
AB 1949 would "allow" cities to accept a surety bond, deed of trust, irrevocable
letter of credit, or other similar security as agreed upon by the contractor and
public agency in lieu of a retention withholding. However, public agencies would
be barred from unreasonably refusing to accept any of these types of securities,
This clause would either lead to forcing cities to accept, for example, a deed of
trust in lieu of a retention withholding, or, face a lawsuit to determine whether
they refused the deed unreasonably.
Additionally, AB 1949 would force cities to deposit retention proceeds in an
interest bearing escrow account to which the contractor is entitled to the
accured interest, This requirement would also impose a costly record keeping
mandate on cities,
It is recommended that the City Council oppose AB 1949 because its limitations
would disrupt city public contracting procedures.
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Status Report on Pending Legislation
August 1, 1995
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SB 646 (Kellev) - Alcoholic Beveraae Licenses. Bankruotcv Transfers
Senator Kelley introduced S8 646 on February 22, 1995, which would allow existing
alcohol licensed locations, where there is a bankruptcy, to retain for 12 months
the option of having a new replacement licensee issued for the premises,
This measure would set an unworkable precedent by severing the traditional
linkage of the alcohol license to the licensee and instead grant a "right" to the
premises to have a license. SB 646 would result in less accountability and will
remove the incentive of the property owner to make a lessor "clean up their act."
The new licensee would also be able to operate under the same conditions as the
prior operator, assuming an establishment was opened before a city enacted a
conditional use permit ordinance for liquor stores. Under current law, new
licensees are required to comply with the local zoning conditions established by
the city. Therefore, 58646 would allow these operators to skirt local control,
It is recommended that the City Council oppose S8 646.
S8 561 (Mountiov) - Notification. Violent Felon Release
Senator Mountjoy introduced S8 561 on February 21, 1995, which would give police
chiefs the ability to notify the necessary individuals of the impending release
of a violent felon. Current law bars police chiefs and sheriffs from release of
this information to anyone outside their department.
S8 561 would give law enforcement officials the needed discretion to inform other
agencies or individuals who may need to know that a parolee is about to be
released. Additionally, the measure would grant immunity for either releasing or
not releasing this information.
It is recommended that the City Council support 58 561.
ENVIRONMENTAL REVIEW
Environmental review is not required for this item under California Environmental
Quality Act guidelines.
FISCAL IMPACT
There is no fiscal impact associated with this informational report.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Assemblyman Jan Goldsmith; Senator David Kelley; 80b Wilson, the City's Lobbyist;
and the League of California Cities will be mailed a copy of this agenda report.
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Status Report on Pending Legislation
August I, 1995
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RECOMMENDATION
It is recommended that the City Council take the following actions:
1. Oppose AB 1949 and direct staff to notify the Senate Judiciary Committee of
the City's opposition to the measure.
2. Oppose SB 646 and direct staff to notify the local Assembly delegation of
the City's opposition to the measure.
3. Support SB 561 and direct staff to notify the Assembly Appropriations
Committee of the City's support of the measure.
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