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<br />8A <br />Page 7 <br /> <br />'Bonds' Continued from Page 1... <br /> <br />The 408 cities enrolled in the program will receive the equivalent of 8 percent of local property <br />taxes which local agencies are obligated to loan the state. Participating cities will receive 50 <br />percent of the securitized amounts on Jan. 15, 2010 and the remaining 50 percent on May 3, <br />2010. <br /> <br />The League strongly opposed the proposed borrowing of local funds during the budget battles <br />earlier in the year, but once that borrowing occurred, the League lobbied for necessary clean up <br />legislation to ensure that cities would be able to securitize the lost property taxes. Gov. Arnold <br />Schwarzenegger on Oct. 19, signed SB 67, the budget clean-up bill that enabled a successful <br />securitization to move forward. <br /> <br />The state is paying all costs associated with the securitization including the 4 percent yield on the <br />bonds and all transaction costs. <br /> <br />California Communities posted a list of the amounts securitized and payable to each agency on <br />its Web site at <br />httos:/Iwww.osacommunities.ora/fs/aoosloroo 1 A/ProDosition%201 A %20Securitization%20Partici <br />oatina%20Aaencles.odf. <br /> <br />'Waste Board' Continued from Page 1... <br /> <br />IWMB staff recently conducted a meeting with stakeholders including waste haulers and local <br />governments to discuss the transition. SB 63, the bill which provided for this change, contained a <br />provision that transferred alllWMB employees to the new department. Staff told stakeholders that <br />they are committed to maintaining transparency and plan to continue distributing governance <br />documents via IIstserv and publiC notices. <br /> <br />Staff also expects that DR3 will continue using existing systems regarding permitting, establishing <br />loan criteria, developing regulations and hearing appeals. The new department will also <br />collaborate with local enforcement agencies and will continue to be involved at local hearings. <br /> <br />Although many current IWMB procedures are expected to remain intact after the transition, the <br />DR3 director will likely make some changes to department operations such as how appeals are <br />adjudicated. Gov. Arnold Schwarzenegger has yet to appoint the DR3 director. The main <br />question with this transition is who will occupy this position and what direction will be set for the <br />department. <br /> <br />League staff will continue to monitor transition actions and provide updates as available. <br /> <br />'DIR' Continued from Page 1... <br /> <br />SBx2 9 amends sections of law that require government agencies engaging in public works <br />projects to initiate. operate, and enforce their own LCP or to contract with a third party. Some <br />laws require LCPs for projects funded in whole or in part from specific voter-approved state <br />bonds, while others require LCPs for certain projects utilizing design-build or other contracting <br />authorities. <br /> <br />With the new provisions under SBx2 9, government agencies will no longer be able to contract <br />with a third party LCP on future projects. Instead, cities will pay a small fee to DIR or continue to <br />operate their own approved LCP. The fee requirement to DIR will only apply to public works <br />contracts awarded after the new fee and regulatory structure have been adopted. DIR anticipates <br />implementing the new fee and regulatory structure in early 2010 and will be providing adequate <br />notice to public agencies. <br /> <br />The League sent a survey request through the League's public works listerv to find out what cities <br />are doing regarding LCPs. Of the responding cities most were operating their own LCP. <br /> <br />It's important for cities to note the following: <br /> <br />2 <br />