Government Affairs Report

Save the Date: San Pedro Community Plan Workshop on Wednesday, November 12, 2008

david@southbayaor.com — Tue, 14 Oct 2008 16:17:00 GMT

Come see proposed San Pedro Community Plan changes! This is your opportunity to share your ideas and discuss proposed changes on how to make San Pedro a better, more livable community. This event is coordinated by the Los Angeles Department of City Planning.

Please come by any time between 5:00 - 8:00 p.m. Parking is available in the Peck Park parking lot off Western Ave. between Summerland St. and Crestwood St.

DATE: Wednesday, November 12, 2008

TIME: 5:00 - 8:00 p.m.

LOCATION: Peck Park Auditorium, 560 N. Western Ave., San Pedro, Ca 90732

Light refreshments will be provided.

For more information, please contact:

Conni Pallini-Tipton, Los Angeles Department of City Planning

(213) 978-1196 or Conni.Pallini-Tipton@lacity.org

Visit this website for maps and more information.

http://sites.google.com/site/sanpedronewcommunityplan/

Congresswoman Jane Harman hosts homeownership and credit counseling workshops

david@southbayaor.com — Mon, 13 Oct 2008 16:06:00 GMT

Are you or your client falling behind on house payments? Will your interest rate reset soon? Have you received a notice of default? You and your clients are invited to a Homeownership and Credit Counseling Workshop hosted by Congresswoman Jane Harman (D-36) in two South Bay locations. Take action now and learn how to build good credit and repair bad credit.

Tuesday October 14, 5:30 p.m. in Lomita City Hall, 24300 Narbonne Ave.

Wednesday, October 22, 5:30 p.m. in th San Pedro Public Library,931 S. Gaffey St.

Parking is free but seating is limited. For information or to R.S.V.P., call (310)549-8282.

L.A. Mayor proposes $5 billion, 5 year Affordable Housing Program

david@southbayaor.com — Mon, 06 Oct 2008 21:06:00 GMT

Mayor Villaraigosa issued a new proposal for affordable housing in the city. Over the next five years, the city seeks to spend $5 billion for affordable housing in partnership with private sector sources like developers, employers and financial institutions. SBAOR has participated in regional business coalitions working with city officials for improved housing.

The Mayor's proposed $5 billion Housing Plan for the City of Los Angeles is available here. A coalition of Los Angeles-area business organizations, including SBAOR, is working with L.A. city officials to put together a housing plan that works. The coalition said in a statement that "the broad proposal offered by the Mayor contains some important policy advances that could help to make the process of housing development more efficient. Reforms of the planning and EIR processes will be helpful and should encourage more development in those neighborhoods that need more housing."

The business coalition continued in its statement that "some of the concepts raised in the Mayor’s plan now need to be hammered into specific proposals. It will be the details of these proposals that will determine if these plans will succeed or fail in bringing more affordable and diverse housing to Los Angeles."

Private and non-profit developers have added thousands of units of housing at all levels of affordability across many neighborhoods of Los Angeles over the past several years. But given the current economic climate, it will be more challenging to match these achievements over the next several years.

Port of Los Angeles releases EIR for San Pedro Waterfront Project; Hearing on Oct. 27

david@southbayaor.com — Mon, 06 Oct 2008 16:32:00 GMT

The Los Angeles Harbor Department and the U.S. Army Corps of Engineers release the draft Environmental Report (EIR) for the proposed San Pedro Waterfront Project. The Waterfront Project sits on about 400 acres on the west side of the Harbor’s Main Channel between the Vincent Thomas Bridge and Cabrillo Beach. The proposal includes public open spaces, expanded retail and commercial uses, expanded Red Car light rail service, new cruise ship terminals and other transportation improvements. Click here for a full review of the Waterfront Project and its newly-released Environmental Impact Report.

The Port of Los Angeles is a unique asset to Los Angeles and the South Bay – not just for its nonstop, 24/7 activity but also for the jobs and economic impact that it brings to the region. The Ports of Los Angeles and Long Beach together handle nearly 20% of all ship cargo in the United States, more than 1 million cruise passengers and more than $400 million in annual revenues.

PUBLIC MEETING: The Corps and the Port will jointly conduct a public meeting to receive public comment on the Draft EIS/EIR for this project on October 27, 2008 at the Crowne Plaza Hotel located at 601 S. Palos Verdes Street, San Pedro CA 90731.

President signs bailout bill. Now what?

david@southbayaor.com — Fri, 03 Oct 2008 21:07:00 GMT

The President today signed the landmark financial bailout bill that was passed by both Houses of Congress after a volatile week of political wrangling, jittery markets on Wall Street, and angry consumers around the country. The National Association of REALTORS®, in response to queries from members around the country, discusses its efforts to support the federal bailout - see "Why NAR Supports Government Intervention" at www.REALTOR.org.

REALTORS® are also urged to educate themselves about the details of the bailout package and what it means for you. This legislation seeks to addess key issues, including:

Relief for homeowners and borrowners
Tax relief provisions such as leashold improvement relief, brownfield improvements and relief for the Alternative Minimum Tax
Get money quickly back into the financial system
Oversight of the U.S. Treasury Department
Fraud investigation and enforcement
Give taxpayers a stake in potential profits

Green Building Program in Los Angeles County

david@southbayaor.com — Fri, 03 Oct 2008 20:49:00 GMT

County Supervisors hold a hearing on October 7 for a Green Building Program to ensure green building standards for new development projects beginning January 1, 2009. County planning officials seek to incorporate green building principles into the County's development standards for new development projects, both residential and non-residential, in unincorporated areas of the County. In addition, the Green Program will include modifications to existing building and zoning codes.

The proposed ordinance intends to apply Green Building standards (as defined here) for most building permits as of January 1, 2009. In some instances, County inspectors would adhere to LEED standards (Leadership in Energy and Environmental Design).

County departments recommend the creation of a Green Building Task Force to "implement the ordinances by encouraging innovation, removing obstacles to green building, and facilitating the County’s green building objectives. The taskforce should include not only representatives from County departments, but community stakeholders."

As part of the Green Building Program, County officials propose a Drought-Tolerant Landscaping Ordinance and a Low Impact Development Ordinance.

Watch this space for updates on the County's Green Building Task Force and the status of the Green Building Program. Click here for more information on the ordinance and the public hearing.

Financial Bailout: What's at Stake for REALTORS®

david@southbayaor.com — Tue, 30 Sep 2008 17:11:00 GMT

Negotiations over the landmark Congressional bailout of the financial markets are very fluid and changing almost by the hour. The National Association of REALTORS® reports that the House will need to amend the bill's language and resubmit it after its failed vote on September 29, because the Senate Majority Leader has indicated he does not want to originate legislation in the Senate. No new votes have been scheduled as of 10:00 a.m. PST today.

You can download and read resources here in order to help answer your questions about the credit crisis and the federal government's reponse. More information is also available at http://www.realtor.org/creditcrisis.

Lawndale now requires 50% recycling of waste from construction sites

david@southbayaor.com — Fri, 26 Sep 2008 16:21:00 GMT

The City of Lawndale passed an ordinance to increase recycling at construction and demolition sites. This ordinance requires persons pulling a building permit for any demolition project and all other projects with an estimated cost over $100,000 to divert 50 percent of all waste generated from the jobsite, fill out a waste reduction and recycling plan, and to pay a security deposit and administrative fee. For more information please visit the City’s website or pick up information at Lawndale City Hall or the Public Works Department.

The City said in a statement that construction and demolition waste accounts for approximately a quarter of all waste going into California’s landfills. There are many materials from jobsites that can salvaged or recycled (concrete, asphalt, wood, dirt, doors, windows, etc.) The city further argues that recycling, salvaging, and reusing construction material can save you money by reducing your disposal costs. Before beginning any construction or demolition job in Lawndale, please pick up (or download from the City’s website) a copy of the brochure “Save Money and Conserve Our Natural Resources by Recycling Your Construction and Demolition Debris,“ to learn how to reduce your job cost and the amount of materials ending up in our landfills.

For more information on Lawndale's construction recycling ordinance, download the City's Frequently Asked Questions page.

Watch the Road! Texting Ban Takes Effect January 1

david@southbayaor.com — Fri, 26 Sep 2008 15:53:00 GMT

The Governor signed SB 28 (Simitian, D-Palo Alto) which bans the use of text messaging while driving a car in California. Taking effect on January 1, 2009, the texting ban imposes a fine of $20 for the first offense and $50 for each subsequent offense. Govern Schwarzenegger said in a statement that "banning electronic text messaging while driving will keep drivers' hands on the wheel and their eyes on the road, making our roadways a safer place for all Californians."

Governor Issues Outline of Budget Agreement

david@southbayaor.com — Tue, 23 Sep 2008 17:00:00 GMT

The Office of Governor Arnold Schwarzenegger released an outline of the state budget that the legislature recently passed after a record-long delay. According to the Governor's statement, the budget "addresses California's $15.2 billion budget shortfall with a combination of cuts and increased revenues." Furthermore, the budget fully funds Proposition 98's requirements for education and does not borrow funds from local government or transportation funds. See below for a full outline of the Governor's analysis:

Increases the size of California's Budget Stabilization Account (BSA) from 5 percent of General Fund expenditures to 12.5 percent —or approximately $13 billion dollars today.
Requires annual transfers to the BSA of 3 percent of General Fund and eliminates the ability to suspend those annual transfers. During economic downturns, when funds can be drawn out of the BSA, the transfer would not occur.
In addition to the annual transfer of 3 percent of General Fund to the BSA, requires that all current-year revenue that is above 5 percent of the amounts included in the Budget Act be transferred to the BSA, after first providing funding to education as required under Proposition 98. This would mean that any unexpected spike in revenues that occur during the fiscal year – normally recognized in the Governor’s May Revision – would be transferred to the BSA.
Funds could only be transferred out from the BSA under the following conditions: 1) actual revenues during the Fiscal Year must be below a specified level: prior year spending adjusted by population growth and per capita personal income growth; 2) funds transferred from the BSA back into the General Fund must be appropriated in a stand-alone bill. The amount transferred out of the BSA during a fiscal year would be limited to the amount which would bring revenues up to prior year spending adjusted by population and per capita personal income growth.
When the balance in the BSA reaches 12.5 percent, the excess would be available for one-time purposes only. One-time purposes would include: paying down debt, paying off outstanding General Obligation bonds, investing in infrastructure and capital outlay projects, paying for “settle-up” dollars owed to education, pre-paying health care liability for retired employees (OPEB), and tax relief.
- If this mechanism had been in place over the past decade, California’s budget deficit this year would have been $13 billion smaller, our surplus at the end of 2008-09 would have been approximately $9 billion, and we would have had $23 billion over the past ten years to spend on projects such as infrastructure.

Mid-Year Reduction Authority

Authorizes the Director of Finance to do the following when s/he determines, mid-year, that revenues have fallen below specified levels:

Reduce state operations budgets by up to 7 percent without modifying or suspending the law.
Freeze Cost of Living Adjustments (COLAs), rate increases or increases in state participation in local costs, as designated in the Budget Act, for up to 120 days.
Requires the governor to submit urgency legislation to permanently suspend COLAs and other rate increases. If the governor fails to act within the 120 days, or the Legislature fails to adopt the suspension, the COLAs and other rate increases are reinstated.

ADDITIONAL BUDGET CUTS

Makes an additional $1.4 billion in cuts on top of the reductions adopted by the Conference Committee Report, for a total of $9.3 billion in spending reductions in 2008-09 (this is prior to any additional cuts the Governor may make through line-item vetoes).

LOTTERY MODERNIZATION AND SECURITIZATION

Proposes a ballot measure to modernize the state Lottery and improve the performance of this underperforming state-owned asset.
Future proceeds of an improved state Lottery would be securitized (estimated to be approximately $5 billion in 2009-10) with the additional revenues used to pay down debt and fill the rainy-day fund in the out-years.

EDUCATION FUNDING

Funds the Proposition 98 guarantee at $58.1 billion – $1.5 billion higher than the current-year funding. This level of funding eliminates the proposed reductions in the Governor’s May Revision and maintains funding to base categorical programs such as class size reduction, special education, child nutrition programs and child care.

BRINGING IN REVENUE

The budget passed by the Legislature originally included a measure that would have taken more money out of hardworking Californians’ paychecks by requiring that they pay 10 percent more state taxes from Californians to balance the state’s books in 2009 – for a total of $1.6 billion. The Governor rejected it, and it was replaced instead with a plan to bring in outstanding tax revenue owed to the state by increasing penalties on corporations that under-report by more than $1 million what they owe the state.

Imposes a 20 percent penalty on the under-reporting of tax owed to the state and applies to any corporation that under-reports by more than $1 million. (Applies to taxable years beginning in 2003 in which the statute of limitations is open and allows taxpayers an opportunity to file an amended return by May 31, 2009, to avoid the penalty.)
The Franchise Tax Board estimates that the state will bring in $1.51 billion over the 2007-08 and 2008-09 budget years. California has had success will this kind of tax collection program before. The similar tax amnesty program the state conducted in 2005 brought in an additional $3.6 billion, according to the Department of Finance.

A two-year suspension of the Net Operating Loss (NOL) tax deduction: Suspends for two years the ability of corporations to reduce their tax liability based on prior losses and phases in conformity to federal law over three years starting in 2010 by allowing losses to offset profits in two prior years; also extends the period for carrying forward losses from 10 to 20 years.

ECONOMIC STIMULUS

Includes an economic stimulus package that:

Expedites the allocation and disbursement of existing transportation and housing bond funds to stimulate economic growth and job creation immediately.
Authorizes new lease revenue bonds to accelerate capital outlay projects for higher education.
Provides flexibility in overtime laws to exempt high-paid software engineers in the competitive technology industry from overtime rules.

The rest of the details can be found on the California Dept. of Finance website:

http://www.dof.ca.gov/