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9B Page 6 So-Calied`Eminent Damain Refarm Initiative'Would Threafien Water Projec#s Earlier this week, attameys for Eminent Domafi Reform Now—Protecf Our Homes Committee(a broad coaiition that includes fhe League of Califarnia Gities)and is backing ACA 8 fio reform the state's eminent domain r�form laws to protect homeowners and smait businesses fram eminent domain,reteased a legal anafysis o#an initiative thaf is in the signature gathering stage and is b8cked by the Howard Jarvis Taxpayers Association(H.lTA}and the Ca�ifomia Farm Bureau Federation. According ta the Iegal analysis,the initiative,called the Caiifornia Property Owners and�armland Protection Act(CPOFPA),threatens virtually a!I f�uture public and private water projects up and down the state intended to preserve clean drinking water, protect existing water resources, and secure additional water supply. [t daes this by including a provision defining as a prohibi#ed"private use""the transfer of propertyr rEghts to a'public agency'tor the'consumption af natural resources."'According to the author of ihe apinion,former Deputy F,ttorney Generai Richard Martl�nd, it is clear ihat fhe inifiative wc�uld 'brohibit ti3e use of eminent domain#o c�nsfruc:k p�alaiic wat�r projects.° Spokespersons in the offices of Gov,Amofd Schwarzenegger and Sen. Dave Cogdill(the leading legislative advocate for new wafer storage investments in the sta#e}, expressed serious reservations about this provision ana the etfect it could have on meeiing the water needs of Califomia_ Their comments appeared in an a�ticle in the Sacrarr�nto Bee on Wednesday,Aug. 22. To read the article,visit the"Politics"section of www.sacbee.com and search for: "Governor Warries Over Bid to Limit Land Seizures,"by Kevin Yamartrura. Tha Emin�nt Domain Reform Nov�-Protect�ur Homes Commiftee continues its efior'ts to secure fegislative passag�of ACA 8 to reform the eminent domain laws of the state. It took another step in this process eariier this week wrhen the Assembly Commit#ee on Local Government advanced the amenclment to the Assembly Committee on Apprnpriations ftom which it is expected#o move to the Assembly floor in short order. Cities Urged to Oppose Senate Bit1619 Measure Would Create�inancial Burdens on Cities and Taxpayers The i,eague of California Cities urges cities to oppose Senate Bil(619(Migden},a measure that if signed into law,would cfrasticaily cut the current retention level to just five percent of the tota� payment due to contractors,weaicen�ng cost-contro(protections for local agencies. Currently,the retention levei is up to 10 percent of the payment. Retention,the withhoiding of money for payments to a contractor, is a cflmmon and effective toal u�ed in pubkc works project coriracts th�#�r�#�ct again�t additional expens2s and d��ayJ.Thi�;� especially important for local agencies to maintain financial control when they must accept the towest responsib[e bidder's proposal. The current state retention rate of up to 10 percent keeps casts down and ensures the timely completion of pub�ic cpnstruction projects by: • Creating an incentive for a contractor to comptete a project � Assuring work is done in compliance with contract, as retentians are nat paid until final inspection is approved • Retaining sufficient funds to comptete uMinished work shou{d the contractor abandon the project Local agencies commonly reduce retentian to fve percent once a project is half complete,as an act af geod fa�th if the contractor is making satis€actory progress. Mandating a reduced retention, 6