03. Prop. 90
"
CITY OF
CUPERJINO
City Hall
10:100 Torre Ayenue
Cupertino. CA 9501.J-3255
(.J08) 777-3212
FAX: (.J08) 777-3366
COMMUNICATION
SUMMARY
Agenda Item .J..-
Date: October 3,2006
Subject: Consider opposition to Proposition 90, Government Acquisition, Regulation of
Private Property.
Background
This measure amends the California Constitution to:
· Require local and state government to pay property owners for substantial economic
losses resulting from some new laws and rules.
· Limit local and state government authority to take ownership of private property. This
measure applies to all types of private property, including homes, buildings, land, cars,
and "intangible" property (such as ownership of a business or patent).
.
A team of economists at LECG consulting, led by former non-partisan legislative Analyst
Dr. William Hamm, released the first comprehensive report outlining Proposition 90's
potential fiscal impact on California and its taxpayers. In their report "The Fiscal Impact
C?f Proposition 90", economists at LECG conclude that "the costs imposed on the
taxpayers by Proposition 90 would amount to billions of dollars annually".
"There can be no question that Proposition 90 will increase the annual cost of government
by billions of dollars each year," said Bill Hamm. "Ultimately, these costs will be borne by
California taxpayers through increased taxes or a reduction in state and local services."
Among the key findings of the report:
· Proposition 90 would increase the annual cost of state and local government in
California by billions of dollars.
· By increasing the cost of public works, like schools, roads, water systems, flood
protection and utility services, Prop. 90 would curtail infrastructure development. For
example, CalTrans is projecting that Proposition 90 will lead to more than $180
million in project schedule delay costs over the next seven years, and another $43
million per year in added litigation-related expenses -- without even considering the
higher property acquisition costs that the measure will require the agency to pay for
highway improvements.
· By increasing the cost of regulation, Prop 90 would reduce government's ability to
regulate land use, protect consumers and workers, and safeguard the environment.
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The new report also included an in-depth analysis of the measure and its provisions, and
the likely impact on state and local government actions in California.
According to the report, two features of Proposition 90 are mainly responsible for the
measure's multi-billion-dollar price tag:
· The measure would require government (and the taxpayers) to pay businesses and
individuals whenever it passes laws or adopts regulations intended to protect the
public's interest (other than health- and safety-related) that substantially affect
property values.
· Proposition 90 also would significantly increase the amount that government and
state-regulated, investor-owned utilities are required to pay owners when their
property is acquired through eminent domain for public uses such as roads, schools,
hospitals, airports, utility transmission lines, and power plants. Under current law,
government must compensate owners by paying them the fair market value of their
property, taking into consideration existing limitations on how the property can be
used (e.g.. zoning restrictions). In some cases, Proposition 90 would require
government to pay owners more than thefair market vallie of their property by
directing courts to ignore these use limitations.
An evaluation of Oregon's Measure 37, which has similar provisions as Proposition 90.
Passed only two years ago, Measure 37 has already generated claims of more than $5.4
billion, or $4,060 per household for which Oregon taxpayers could be liable.
Recommended Action
It is recommended that the council officially adopt a position opposed to Proposition 90.
Approved for submission:
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Rick Kitson
Public Communication Manager
David W. Knapp
City Manager
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We Oppose Proposition 90
The Taxpayer Trap
Homeowners
League of California Homeowners
Home Owners Acting Together
Resident Owned Parks, Inc.
Brentwood Hills Homeowners Association
Crescent Gardens Homeowners
Association
Harrison Street Homeowners Association
Lake Shastina Property Owners
Association
Los Pueblos Homeowner Association
Golden State Manufactured-Home
Owners League
Golden State Manufactured-Home
Owners League, Chapter 955
Golden State Manufactured-Home
Owners League, Chapter 1420
Coalition of Mobilehome Owners -
California
Public Safetv
California Professional Firefighters
California Police Chiefs Association
California Fire Chiefs Association
California State Sheriffs' Association
California State Firefighters' Association
California Peace Officers' Association
Peace Officers Research Association of
California
Fire Districts Association of California
Windsor Fire Protection District
National Guard Association of California -
PAC
Education
California Teachers Association
California Retired Teachers Association
California School Boards Association
Association of California School
Administrators
Coalition for Adequate School Housing
(C.A.S.H.)
Small School Districts' Association
(List as of 10.6.06)
TaXDavers
California Taxpayers' Association
California Tax Reform Association
Valley Taxpayers Coalition, Inc.
Marin United Taxpayers Association
Monterey Peninsula Taxpayers
Association
Orange County Taxpayers Association
Ventura County Taxpayers Association
Seniors
Gray Panthers California
California Legislative Council for Older
Americans
Business/Economic Interest
California Small Business Association
Small Business Action Committee
California Chamber of Commerce
California Business Properties Association
California Association of Realtors
California Manufacturers & Technology
Association
California Business Roundtable
Associated General Contractors of
California
California Association for Local Economic
Development
California Tribal Business Alliance
California Building Industry Association
Sempra Energy
Bay Area Council
Central City Association of Los Angeles
Contra Costa Council
Downtown Sacramento Partnership
Downtown San Diego Partnership
Economic Development Corporation of
San Benito County
Greater Concord Chamber of Commerce
Greater Fresno Area Chamber of
Commerce
Greater Riverside Chambers of
Commerce (More)
Paid for by No on 90, Californians Against the Taxpayer Trap, a committee of taxpayers, educators, business, environmentalists, local govemment
and public safety, the League of California Cities (Non-Public Funds, CITIPAC), and No on 90, Conservationists for Taxpayer Protection, a
sponsored committee of the CA League of Conservation Voters
www.NoProp90.com
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Business/Economic Interest (cont.)
Hollywood Chamber of Commerce
Inland Empire Economic Partnership
Irvine Chamber of Commerce
Lake Elsinore Valley Chamber of
Commerce
Long Beach Area Chamber of Commerce
Los Angeles Area Chamber of Commerce
Los Angeles Business Council
Manhattan Beach Chamber of Commerce
Monrovia Chamber of Commerce
Monterey Peninsula Chamber of
Commerce
Morgan Hill Chamber of Commerce
Mountain View Chamber of Commerce
Murrieta Chamber of Commerce
Napa Chamber of Commerce
Ontario Chamber of Commerce
Orange County Business Council
Real Estate and Consulting Services, Inc.
Redlands Chamber of Commerce
Redwood City - San Mateo County
Chamber of Commerce
Sacramento Convention & Visitors Bureau
Salinas Valley Chamber of Commerce
San Carlos Chamber of Commerce
San Francisco Chamber of Commerce
San Gabriel Valley Economic Partnership
San Jose Silicon Valley Chamber of
Commerce
San Luis Obispo Chamber of Commerce
San Mateo County Association of Realtors
Santa Clara Chamber of Commerce
Santa Rosa Chamber of Commerce
Silicon Valley Leadership Group
Solano County Economic Development
Corporation
South Bay Association of Chambers of
Commerce
Southwest Legislative Council
Sunnyvale Chamber of Commerce
Temecula Valley Chamber of Commerce
Valley Industry and Commerce
Association (VICA)
Ventura County Economic Development
Association (VCEDA)
Visalia Chamber of Commerce
Working Assets
Consumer
Consumers First
Consumers Coalition of California
Civil Justice/legal
Civil Justice Association of California
Consumer Attorneys of California
Ethnic
NAACP, California State Conference
National Coalition of Hispanic
Organizations
Los Angeles Metropolitan Hispanic
Chamber of Commerce
San Joaquin Valley Black Chamber of
Commerce
Greenlining Institute
Healthcare
California Nurses Association
Physicians for Social Responsibility, Los
Angeles
Organized labor
California Labor Federation, AFL-CIO
American Federation of State, County and
Municipal Employees, AFL-CIO
(AFSCME)
California State Council of Laborers
State Building & Construction Trades
Council of California
Service Employees International Union,
California State Council
California Teamsters Public Affairs
Council
California Association of Professional
Employees, AFL-CIO
Professional Engineers in California
Government
California Apollo Alliance
Agriculture
California Farm Bureau Federation
Agricultural Council of California
American Farmland Trust
Imperial County Farm Bureau
Kings County Farm Bureau
Napa County Farm Bureau
(More)
Paid for by No on 90, Californians Against the Taxpayer Trap, a committee of taxpayers, educators, business, environmentalists, local govemment and
public safety, the League of California Cities (Non-Public Funds, CITIPAC), and No on 90, Conservationists for Taxpayer Protection, a sponsored
committee of the CA League of Conservation Voters
www.NoProp90.com
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Infrastructure/TransDortation
California Transportation Commission
California Infrastructure Coalition
California Transit Association
Transportation and Land Use Coalition
Metropolitan Transportation Commission
American Society of Civil Engineers,
California Chapter
Riverside County Transportation
Commission
Public Interest
League of Women Voters of California
Western Center on Law & Poverty
Public Advocates, Inc.
Center on Policy Initiatives
Friends Committee on Legislation of
California
Commonweal Institute
San Francisco Planning and Urban
Research Association
Poverty Matters
Communitv/Faith Based
California Church Impact
California ACORN
Santa Monica Coalition for a Livable City
San Francisco Human Services Network
CHARO Community Development
Corporation
Lutheran Office of Public Policy -
California
Urban Habitat
Preservation
National Trust for Historic Preservation
Pasadena Heritage
West Adams Heritage Association
Los Angeles Conservancy
Housing Providers/Advocates
Housing California
California Housing Consortium
California Housing Partnership
Corporation
California Coalition for Rural Housing
Community Housing Partnership
California Housing Authorities Association
Housing Providers/Advocates (cont.)
California Association of Local Housing
Finance Agencies
Non-Profit Housing Association of
Northern California
Council of Community Housing
Organizations
Coalition for Economic Survival
Orange County Community Housing
Corporation
Creative Housing Associates
San Diego Housing Federation
San Francisco Tenants Union
Oakland Tenants Union
Santa Monicans for Renters' Rights
Palo Alto Housing Corporation
Eviction Defense Network
Livable Places
EAH Housing
San Diego County Mobilehome Positive
Action Committee
Water
Association of California Water Agencies
Metropolitan Water District
Los Angeles & San Gabriel Rivers
Watershed Council
Orange County Water District
North Marin Water District
Castaic Lake Water Agency
Marin Municipal Water District
Grassland Water District
Friends of Locally Owned Water
Santa Clara Valley Water District
Yuba County Water Agency
Western Municipal Water District
Eastern Municipal Water District
Elsinore Valley Municipal Water District
Yolo County Flood Control & Water
Conservation District
Environmental
The Nature Conservancy
California League of Conservation Voters
Audubon California
The Ocean Conservancy
National Wildlife Federation
Natural Resources Defense Council
Sierra Club California
Center for Environmental Health (More)
Paid for by No on 90, Californians Against the Taxpayer Trap, a committee of taxpayers, educators, business, environmentalists, local govemment and
public safety, the League of California Cities (Non-Public Funds, CITIPAC), and No on 90, Conservationists for Taxpayer Protection, a sponsored
committee of the CA League of Conservation Voters
www.NoProp90.com
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Environmental (cont.)
California State Parks Foundation
Defenders of Wildlife
Environmental Defense
Coastal Law Enforcement Action Network
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California Oak Foundation
Planning and Conservation League
Greenbelt Alliance
Endangered Habitats League
California Council of Land Trusts
Environment California
Center for Biological Diversity
Steven and Michele Kirsch Foundation
Association of Environmental
Professionals
California Council for Environmental and
Economic Balance
Trust for Public Land
Sierra-Cascade Land Trust Council
Bolsa Chica Land Trust
Bay Area Alliance for Sustainable
Communities
Orange County League of Conservation
Voters
League of Conservation Voters of San
Diego
Committee for Green Foothills
Bay Area Open Space Council
Environmental Action Committee of West
Marin
Hills for Everyone
Tuleyome
Save Mount Diablo
Sonoma County Conservation Action
Marin Audubon Society
Environmental Justice Coalition for Water
Environmental Health Coalition
Northcoast Environmental Center
California Coastkeepers Alliance
League to Save Lake Tahoe
Ventura Citizens for Hillside Preservation
Wildlife Corridor Conservation Authority
Golden Gate Audubon Society
Political Organizations
California Democratic Party
California Republican League
Log Cabin Republicans
San Francisco Women's Political
Committee
Financial Services
California Public Securities Association
MuniFinancial
Government
League of California Cities
California State Association of Counties
California Redevelopment Association
California Special Districts Association
American Planning Association, California
Chapter
American Planning Association, San
Diego
California Association of Local Agency
Formation Commissions
California Coastal Commission
California Contract Cities Association
Regional Council of Rural Counties
California Park & Recreation Society
California Association of Sanitation
Agencies
California Municipal Utilities Association
Lake Shastina Community Services
District
Vandenberg Village Community Service
District
Paid for by No on 90, Californians Against the Taxpayer Trap, a committee of taxpayers, educators, business, environmentalists, local govemment and
public safety, the League of California Cities (Non-Public Funds, CITIPAC), and No on 90, Conservationists for Taxpayer Protection, a sponsored
committee of the CA League of Conservation Voters
www.NoProp90.com
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