Criticism of the Cal-Fed Bay-Delta Program continued to pile up during November. First, the Department of Finance released a draft report on Cal-Fed implementation that found a mixed record of progress. One week later, the Little Hoover Commission recommended dissolution of the California Bay-Delta Authority, which began overseeing the Cal-Fed program in 2003. Gov. Schwarzenegger requested the two studies as well as an organization and program management review by KPMG that is due this month. Schwarzenegger asked for the examinations because of growing concern that Cal-Fed is not making adequate progress on its four goals of improving water supply reliability, levee stability, water quality and the ecosystem (see , October 2005). In a November 10 transmittal letter to Resources Secretary Michael Chrisman, Acting Finance Director Michael Genest wrote, “We found areas with significant accomplishments, such as increased groundwater storage, support of local watershed efforts, and maintenance of water supplies through the Environmental Water Account, as well as areas where progress to date is promising for longer term results, such as ecosystem restoration. We also found several areas where significant progress was lacking, such as levee improvements and increased export of water from the Delta.” The Little Hoover Commission found that the Bay-Delta Authority, composed of 25 state and federal agencies, is too fragmented to succeed. The Authority “was not given the authority to implement the Cal-Fed Program and it is not clear within the implementing agencies who is in charge of Cal-Fed implementation,” the Commission reported. The Commission recommended re-creating a previous policy group, with the U.S. interior secretary and the state resources secretary clearly in charge. “One lesson of the last five years is that Cal-Fed will require an amount of political capital and leadership that can only flow from the institution of the governor,” Little Hoover Commission Chairman Michael Alpert said. The Commission further recommended adoption of a comprehensive state water policy, a larger role for science in Cal-Fed decisions, and more meaningful public involvement. Additionally, the Commission said the Legislature should clarify its expectations for state agencies and hold them accountable. The Cal-Fed reports hit at the same time that the Department of Water Resources released an environmental impact report for a project that is intended to meet two Cal-Fed goals: better water quality for farmers and cities, and protection of migrating fish. The EIR drew sharply different responses — just the sort of conflict that Cal-Fed was supposed to stem. The South Delta Improvements Program would install barriers near pumps at Byron that remove water from the Delta for transport to farms and cities via the California Aqueduct. The movable barriers would decrease saltwater intrusion into the area from which the pumps take water and block fish from the pumping zone. The EIR released on November 10 found that the project would not harm water quality or fish. However, the Contra Costa Water District immediately questioned the EIR’s conclusion. District officials said the project could increase water salinity at the district’s Delta pumps. Environmentalists and some farmers also questioned the EIR and the entire project, saying it was a partial solution at best. Meanwhile, a coalition of water agencies, farmers and business interests called California Water Future endorsed the EIR. The EIR as well as the Little Hoover Commission and the Department of Finance reports are all available on the Cal-Fed website: www.calwater.ca.gov.

Water agencies cannot charge water users incrementally more per gallon of use following a  ruling  by the Fourth District Court of Appeals that cited a 1996 law prohibiting government agencies from overcharging for services. The suit came about after San Juan Capistrano charged nearly four times as much per unit of water for users in the highest tier to provide an incentive to conserve, but failed to show that the water was that expensive to deliver. Governor Jerry Brown wanted to use the rates to save water and create strong disincentives for wealthier residents. Other water districts must now review the ruling to make sure that their rates are in step with the court, while still encouraging conservation during the drought. Two-thirds of water districts use some form of tiered water pricing, but now agencies will have to show that hikes are directly tied to the cost of water, according to the court. Change in Leadership at Dept. of Housing and Community Development Claudia Cappio has left her role as director of the Department of Housing and Community Development to head the "Coliseum City" development plan in Oakland. Replacing her as acting director will be Susan Riggs, the former Executive Director of the San Diego Housing Federation. Riggs has been serving as Deputy Secretary of Housing Policy for the Business, Consumer Services and Housing Agency (BCSH) since January 2014. Prior to joining BCSH, Riggs served as the Executive Director of the San Diego Housing Federation. In this capacity, her primary goal was to promote the creation of safe, stable, and healthy housing that is affordable to lower income families and people in need. Newly Discovered Fault Puts Ventura at Risk An earthquake fault that runs through downtown Ventura is extremely dangerous and could produce a magnitude 8.0 earthquake every 400 to 2,400 years, according to new research from the California Geological Survey. In contrast with the inland San Andreas fault, an earthquake at the Ventura fault could bring a devastating tsunami to the region that would begin "in the Santa Barbara Channel area, and would affect the coastline � of Santa Barbara, Carpinteria, down through the Santa Monica area and further south," according to Southern California Earthquake Center director Tom Jordan, as quoted in the Los Angeles Times . Up until the study, experts believed that California's biggest threat of tsunami would be a mega-quake in Alaska, which would still give Californians hours to evacuate. Services for Homeless Cost L.A. $100 Million Annually Five members of the Los Angeles City Council proposed that the city take a new approach in dealing with 23,000 people living on the streets. Reacting to a scathing report indicating that homelessness costs the city $100 million per year and saying that the city's response has been fractured and dysfunctional, the council members want to create a new council committee focused just on that problem. In the report, City Administrative Officer Miguel A. Santana said that $87 million of indirect costs go to the Los Angeles Police Department for arrests, patrols and mental health interventions. "What's happening in the city and county is unconscionable and unacceptable," Councilmember Mike Bonin said at the meeting. "For the most part we're wasting our money." Waze, Los Angeles Establish Partnership for Data-Sharing In a new private-public partnership, the City of Los Angeles and the traffic app Waze will share data on traffic patterns and roadway conditions. The partnership will allow people using the traffic app to see alerts about hit-and-runs and abducted children, and several government departments will send Waze information about construction, film shoots, and road closures. In return, the app will send the city real-time data about traffic patterns and roadway conditions. Police officers had previously worried that the Google-owned app, which has about 1.3 million users in the city, would put police officers in danger by giving their location and allowing people to track them down.  Napa County Parks In Dire Financial Straits A new financial report brought disappointing news to the Napa County Regional Park and Open Space District: a planned expansion of the county's park and open space system doesn't have nearly enough funding and could take a century to complete unless a new tax speeds up the process. Currently, the district has enough funds to maintain existing amenities, but it only has about $100,000 annually available for expansions. Completion of the Bay Area Ridge Trail alone could cost the city $15 million. To raise the funds, the district's advisory committee is looking at the possibilities of a parcel tax, property tax, or sales taxes. "We're not trying to buy the whole county," District General Manager John Woodbury told the Napa Valley Register . "That's not the idea. But those special places that would benefit from being owned publicly, that's where we come in." Laguna Woods Begins General Plan Update The City Council of Laguna Woods agreed to begin work on a comprehensive update of the city's General Plan to map out the city's direction for the next 25 years. Estimated to cost $315,000, the update will focus on transportation, housing, land use, noise, open space, and fiscal development to provide direction on attracting and retaining industries. Adoption of the plan is projected for spring of 2017.  Rents Keep Rising News reports have recently been focusing on the state of rental markets across California. Among the highlights:  San Francisco, Oakland, and San Jose were respectively named the three worst cities nationwide for renters by Forbes. The rankings looked at the jumps in rent from 2014 to now, as well as vacancy rates, median household income, and other factors. The best cities for renters included Indianapolis, Kansas City, and Las Vegas. The influx of tech money into San Francisco shot the city's rental rates up 14.8 percent since last year, averaging more than $3,000 a month in some areas. The increase dwarfs the nationwide average of 3.7 percent. Homes in Orange County are flying off the shelves, as the city has become the fifth-fastest in the nation at selling homes. 59 percent of the homes listed through the real estate company Trulia this year came off the market in two months or less, compared with 40 percent nationwide. "Expensive markets � including many in California � have tight housing supplies because of limited construction in the face of growing demand. So homes get snapped up quickly," the report said. Report: Bay Area Ill-prepared for Superstorm Flood Waters A new report shows that, despite the persistence of drought in California, the Bay Area is extremely susceptible to a superstorm that occurs every 150 years. The study, released by the nonprofit Bay Area Council, says that flooding from this type of storm could produce $10.4 billion in economic damage, and it calls for the implementation of infrastructure projects ranging from levees to sea walls to wetlands to prepare for the storm. Eighty percent of the flooding damage from a 150-year storm would be concentrated in Marin, San Mateo and Santa Clara counties. In the Bay Area, 355,000 residents and $46.2 billion in assets are situated in areas that are susceptible, according to the report. "The drought is a function of extreme weather, but it's only one side of the coin, and we know what's coming next," Adrian Covert, policy director for the council, told the San Mateo County Times . "With this report, it shows that we can't say we weren't warned, and the time to prepare is now." The last major storm of this type occurred in the Great Flood of 1862, when 34 inches of rain fell on San Francisco in about a month.  BART May Seek 2016 Property Tax Increase  Officials at Bay Area Rapid Transit are considering putting a property tax increase on the 2016 ballot to fund badly needed upgrades to the system, according to Daniel Borenstein at the Contra Costa Times. The district is expecting operating shortfalls of $35-50 million in the years 2018-2024 due to costly employee compensation, and it lacks money to replace or improve 306 of its train cars. All in all, the district estimates that it would need about $4.8 billion in the next 10 years. However, with a tax increase requiring two-thirds of voters' approval, Borenstein warned that such an effort could torpedo the upgrades, and possibly even other unrelated transportation improvements. "Making matters worse, the district is aiming for the same presidential election ballot that Contra Costa Transportation Authority officials are eyeing for a measure to double their current half-cent sales tax for road and transit improvements," Borenstein told the Contra Costa Times . "By loading up the ballot, BART risks dividing the more fiscally conservative, tax-sensitive suburban vote between the two measures and killing both." PPIC Establishes Water Policy Center Amid the state's worst drought, the Public Policy Institute of California is launching a $9 million Water Policy Center with funding from the S.D. Bechtel, Jr. Foundation. The center will be headed by Ellen Hanak and will focus on research to promote public policy that would ensure clean and reliable water supplies, build healthy and resilient ecosystems, and prepare for future droughts and floods. "If California's water is managed well, it can support a vibrant economy, society, and environment now and in the future," Hanak said in a  statement . "But we will need new approaches that are practical, evidence-based, and scientifically sound.

A NEW STUDY OF WATER SUPPLY in California provides a mixed picture. The state could meet much of the demand required by a growing population through water conservation, groundwater banking, recycling and water transfers, according to a report from the Public Policy Institute of California. However, the long-term plans of many water agencies rely heavily on the development of new supplies, especially groundwater in areas with no groundwater management policies. “Water for Growth: California’s New Frontier” by Public Policy Institute of California Research Fellow Ellen Hanak recognizes what many water experts have said for years — the era of constructing large dams and aqueducts is over. Instead, water suppliers will have to be more creative in managing limited water supplies. According to the PPIC report, California is expected to add 14 million new residents by 2030. If current water use trends prevail, the state would need an additional 3.6 million acre-feet of water to provide for population growth. And that projection might be low because about half of the state’s population growth is expected to be in the Sacramento region, the San Joaquin Valley and the Inland Empire — locations where single-family houses predominate and more than half of water is used for landscaping. Hanak was encouraged to find that a little more than half of planning agencies participate to some extent in utility planning and in regional water policy groups. She also reports that compliance with SBs 610 and 221 — 2001 legislation requiring proof that water will be available for large developments —is quite high. Hanak was less upbeat about mandatory urban water management plans. She found that one-sixth of agencies did not submit required plans during the 2000 update cycle, and the plans of many utilities rely heavily on “paper water” and additional groundwater pumping to meet future needs. Hanak makes four recommendations: • Strengthen long-term water planning, in part by giving land use planners more say. • Streamline project-level water adequacy reviews by improving long-term planning documents and finding ways to pay for new water supplies. Hanak also recommends charging developers impact fees to fund water development. • Realize the potential of water conservation, in part by charging higher rates to the biggest water users. • Consolidate progress in groundwater management because overdraft is a serious problem in some areas. Hanak further recommends that the state withhold new water supply permits from local agencies that do not manage water responsibly. The PPIC report is available at www.ppic.org HOUSES IN FRESNO will have water meters. In July, the city approved a 40-year contract renewal with the U.S. Bureau of Reclamation for the delivery of 60,000 acre-feet of water from the San Joaquin River. The deal requires installation of water meters at all single-family houses in the city by 2013. Only about 25,000 of the city’s 105,000 houses have meters, and the city has never billed homeowners anything but a flat rate. However, both state lawmakers and federal officials insist that the days of meter-less water use in Fresno had to end so that homeowners would be encouraged to conserve. Retrofitting existing customers with water meters is estimated to cost at least $50 million. Commercial and multi-family developments already have meters. RECONSTRUCTION OF THE BAY BRIDGE is again moving forward now that Gov. Arnold Schwarzenegger has signed a bill that addresses funding of the $6.3 billion project. Under the deal spearheaded by state Senate President Pro Tem Don Perata (D-Oakland), the state will provide an additional $630 million for the project. Tolls on all bridges in the Bay Area except the Golden Gate Bridge will increase by a buck to $4 in 2007 to raise another $800 million for the project. Caltrans will keep the single-tower suspension design that has caused much consternation. The 1989 Loma Prieta earthquake caused a section of the Bay Bridge’s eastern span to fail. Caltrans has retrofitted the western span and plans to replace the eastern span. However, the project stalled last year when the state received only one bid, at double the expected $740 million cost, for the suspension tower (see , October 2004). Nearly a year of negotiations, which added an estimated $400,000 per day to the project cost, resulted in the deal signed by Schwarzenegger. The re-bidding process has already begun. The project’s expected 2012 completion date would give a fourth governor a Bay Bridge photo op. Pete Wilson signed the first funding bill on the bridge in 1997. Gray Davis attended the project groundbreaking. And in July Schwarzenegger signed the latest funding bill with the bridge looming over his shoulder. CITY OF SANTA PAULA VOTERS will not decide on a growth-control initiative during the November 8 special election. Ventura County Superior Court Judge Steven Hintz ruled in July that Santa Paula City Clerk Josie Herrera was correct to disqualify the initiative because signed petitions did not include the ordinances that the initiative wanted to amend. The proposed initiative would have put to a public vote any project of more than 80 acres proposed at a higher density than allowed under the general plan. The initiative came in response to Centex Homes’ proposal for about 2,200 houses, townhouses and apartments on 2,200 acres that Santa Paula would annex. The city’s general plan now calls for about 450 houses on the site. The City Council is scheduled to consider the housing project later this year. Opponents vowed to keep fighting. A 5.8-MILE TROLLEY EXTENSION to San Diego State University opened in July — 28 years after it was first planned. The $500 million project extends San Diego’s thriving, 54-mile trolley system through Mission Valley, providing an alternative to congested Interstate 8. The line is expected to get about 11,000 riders a day, one-third of them SDSU students. THE AIR FORCE IS PROPOSING to reduce the cleanup of groundwater contamination at the closed McClellan Air Force Base, according to the . Sacramento County fears that the reduced cleanup could substantially set back reuse of the 3,000-acre base as a business and industrial park. The military has been pumping and treating tainted groundwater at McClellan for two decades. The new proposal calls for shutting down extraction wells. Instead, the military would only take steps necessary to contain pollution within the base boundaries. The change would save about $600 million, but it still needs approval from the U.S. Environmental Protection Agency. TWO SAN DIEGO CITY COUNCILMEN were convicted in July in a federal corruption trial. According to prosecutors, Councilmen Michael Zucchet and Ralph Inzunza accepted $23,000 in campaign contributions from the owner of Cheetahs adult nightclub. They were convicted of conspiracy, wire fraud and extortion. Also convicted was Lance Malone, a former Clark County, Nevada, commissioner, who went between the Cheetah’s owner and the San Diego councilmen. Zucchet, Inzunza and Councilman Charles Lewis, who died while under indictment, tried to ease the city’s “no touch” rule for nude dance clubs. The scheme also involved closing down a Cheetahs competitor and amending the city’s zoning code to make it more difficult to open new adult businesses. Zucchet, Inzunza and Malone have maintained their innocence and vowed to appeal. Sentencing is scheduled for November. THE MARIN COUNTY GRAND JURY has criticized the county’s planning process as “unclear, convoluted, time-consuming and costly.” The Marin Community Development Agency got the grant jury’s attention last year when there was controversy over a 6,500-square-foot house in Greenbrae that was originally permitted for only 3,950 square feet. The grand jury found flaws in the agency’s code enforcement, building inspection and planning practices. The county, however, has already undertaken steps to improve the system, according to officials. The county has adopted new design guidelines for single-family homes, added planners and revised various procedures.

What has been possibly the longest-running general plan controversy on record appears to have concluded on August 31, when a Sacramento County Superior Court judge accepted a revised environmental impact report for a new El Dorado County general plan. The judge’ decision gives the county a legal general plan for the first time since 1999. After a seven-year process with multiple political swings, the El Dorado County Board of Supervisors adopted a new general plan in 1996. A collection of homeowners and environmental groups sued, arguing that the plan’s EIR was inadequate. A Sacramento County judge agreed in an early 1999 decision that eliminated the county’s ability to approve discretionary projects (see , March 1999, March 1996). Last year, the Board of Supervisors approved a slightly revised general plan and a new EIR. The plan survived a referendum in March of this year (see , April 2005). The county then returned to court, where it won Judge Gail Ohanesian’s blessing. The county intends to begin processing applications again this month. An appeal of the decision is likely. The case is , Sacramento County Superior Court Case No. 96CS01290. In a controversy nearly as old as El Dorado County’s, a federal judge has stalled a proposed giant garbage dump in Riverside County near Joshua Tree National Park. In late September, U.S. District Court Judge Robert Timlin rejected the Bureau of Land Management’s study of a proposed land swap with Kaiser Ventures, which first proposed the Eagle Mountain landfill in the late 1980s. Kaiser now has a deal with Los Angeles County, which intends to purchase the landfill site from Kaiser for $41 million. Kaiser and the BLM propose swapping approximately 2,500 acres owned by the federal government for a like amount of property Kaiser owns elsewhere in the desert. Judge Timlin found that the BLM did not fully consider alternatives to the land trade, failed to adequately analyze the project’s impacts on national park visitors and bighorn sheep, and did not consider the increased number of predators that that landfill may lure. The proposed garbage dump has withstood extensive state court litigation and political controversy (see , June 1999, April 1996, November 1994; , October 1997; , November 1992). However, environmentalists have continued to fight the project vigorously. San Diego County has sued the City of El Cajon over two proposed development projects — a Home Depot and an 11-lot residential subdivision. Pointing primarily to traffic, the county argues that the environmental reviews for the projects are inadequate. But city officials question whether the county is trying to halt the city from annexing the properties because development within the city limits would deprive the county of a new traffic impact fee. “We’ve never had the county jump on us, and I’ve been with the city for 32 years,” El Cajon Community Development Director Jim Griffin said. “Now we have to pay money to defend lawsuits, and applicants are hung out to dry.” The Home Depot project on East Main Street has been particularly controversial. The city certified an EIR in 1999, but later that year rejected the development. This time around, the city used the six-year-old EIR but added an addendum to address traffic, air quality, noise and other issues. Neighbors remained opposed and they got support from county Supervisor Dianne Jacob, who testified against the project. With both projects now in court, the San Diego County Local Agency Formation Commission has put the annexations on hold. The salamander wars continue unabated in Central and coastal California. In a victory for environmentalists, U.S. District Court Judge William Alsup ruled that the Santa Barbara County and Sonoma County populations of California tiger salamander qualify as endangered. The U.S. Fish and Wildlife Service (USFWS), which granted the amphibians Endangered Species Act protection only after earlier litigation, had downgraded the two salamander populations from endangered to threatened. Alsup determined that the agency “did not supply any scientific evidence” for the downgraded status. The case is , No. 04-04324. The listing has been particularly controversial in Sonoma County because of the potential for slowing development and wine-growing activities (see , July 2004). Federal officials have proposed designating 74,000 acres near Santa Rosa as critical habitat for the salamander. In a victory for development interests and landowners, USFWS released a new map of critical habitat for the Central California and Santa Barbara County populations of the tiger salamander. The map covers 199,000 acres in 19 counties, but contains only about half as much territory has an earlier proposed critical habitat designation. In its final decision, USFWS eliminated from the critical habitat designation 12 census tracts in Alameda, Contra Costa, Fresno, Monterey, San Benito and Santa Clara counties because of the economic impact the designation would have had. A pair of 53-story hotel and condominium towers proposed for the Capitol Mall in Sacramento has received the Sacramento Planning Commission’s approval. At 615-feet, the towers would be the tallest structures in Sacramento by nearly 200 feet. Proposed by developer John Saca for Capitol Mall at Third Street, the buildings would have a hotel on the lower floors and at least 700 condominiums on the upper stories.

Caltrans released the California Transportation Plan 2040, a long-range integrated approach to transportation planning that is multimodal, sustainable and environmentally responsible. Caltrans describes the plan as taking a "whole system" approach toward the state's transportation system that integrates statewide long-range modal plans and programs with the latest technology and tools to articulate the State's broad vision for a single, seamless transportation system that complements regional transportation plans, sustainable communities strategies and land-use visions for greater mobility choices. The plan included input from governmental agencies, tribal governments, advocacy groups, public stakeholders, elected and appointed officials, and community-based organizations from around the state. The CTP includes recommendations and goals for meeting greenhouse gas reduction targets and how to make transportation in California more sustainable and integrated. More information is available at www.californiatransportationplan2040.org . November Ballot to Include Major Measures Related to Land Use The November statewide ballot, to be finalized this week, will likely include several measures related to land use. California lawmakers proposed a $3.12 billio n bond for the November ballot that would pay for parks, water and climate change actions; 20 percent of the bond must assist disadvantaged communities. Tens of millions of dollars are for specific programs in San Diego, Ventura County, Central Valley and the High Desert/Coachella area. The improvements in state and local parks would improve public safety, health and air quality through added green space. The state parks have maintenance backlog of over $1 billion. The measure was approved in the Assembly, 55-14, and must now go to the senate for a vote. Another measure slated for the ballot is a “No Blank Checks Initiative” which would require a public vote for any state project that spends more than $2 billion in revenue bonds. This initiative could apply to many infrastructure projects, including high speed rail and a plan to construct water tunnels in the Sacramento Bay-Delta. Finally, a measure to legalize recreational marijuana is sure to raise local zoning questions about dispensaries and commercial growing facilities. (See prior CP&DR coverage .) Judge Blocks Bay-Delta Management Plan Sacramento Superior Court Judge Michael P. Kenny ruled the current management plan for the Sacramento Bay-Delta must be “set aside” because the comprehensive management plan for the estuary is no longer valid. This means a serious delay in Gov. Jerry Brown’s plan to build the two water tunnels through the Sacramento-San Joaquin Delta. This means for the tunnels to get built, state officials have to prove the project complies with the Delta Plan for managing land use and water exports in the estuary. The Delta Plan balances the “co-equal goals” of protecting the environment in the Delta and providing stable freshwater for the Southern half of the state. Kenny said the plan fails on many of the environmental issues and failed to provide quantifiable targets for achieving reduced Delta reliance. Airbnb Files Suit Against San Francisco Airbnb is suing its hometown, San Francisco, for its decision to fine the company $1,000 a day for unregistered hosts. The fine is intended to compel hosts to register, and may transient occupancy taxes, in accordance with city regulations adopted in early 2015. San Francisco affordable housing advocates have pushed Airbnb to cap its short-term rentals and required hosts to register with the city. However, reports indicate that only 20 percent of the 7,000 hosts registered and Airbnb has not assisted the city. Airbnb is combating the suit by claiming that the city’s regulation violates the Communications Decency Act, a federal law that shields websites from the actions of contributors. Airbnb claims that it is not responsible for content posted by unregistered hosts. Lands Commission to Address Diablo Canyon Closure The State Lands Commission is considering whether to waive an environmental impact report for the closure of Diablo Canyon nuclear power plant in order to speed up its planned decommissioning. The Diablo Canyon twin-reactor facility could forego environmental review and close the site by 2025, nine years before the contract is up. The plant, managed by PG&E, is 31-years old and would close 20 years ahead of planned termination. The twin reactors are located in San Luis Obispo County and built near seismic faults that have triggered an environmental movement to shut down the facility. PG&E says the reactors could withstand a strong earthquake, but the electricity is no longer required from this plant. Anaheim Bans Short Term Rentals Anaheim, home of Disneyland and other tourist attractions, has become the largest city in California to ban short-term rentals outright. The Anaheim City Council for the ban during a five-hour special session. Hosts of the 363 permitted STR have 18 months to stop renting. Residents of the city said the vacationers were ruining their quality of life by staying in “mini-hotels” with all-night parties, littering streets and taking up parking spots. STR owners say they invested into turning eyesore properties into beautiful homes. “The sharing economy is exciting and something that gives people a chance to earn extra income but this is not really the sharing economy,” Mayor Tom Tait told the Orange County Register. “These are motels in residential neighborhoods.” Costa Mesa Approves Plan Update Amid ongoing controversy about housing in Costa Mesa, the Costa Mesa City Council voted, 3-1, to approve updates to the general plan through 2035. Included in the plan is a program to incentivize motel owners along Harbor and Newport boulevards to demolish their establishments to build high-density apartments. However, affordable-housing advocates say these motels are last-resort housing for many families and individuals. The city said these new units would be 40 units per acres, and 20 percent required affordable for lower-income households. There may be a lawsuit, as these types of incentives may violate state law because it does not set aside low-income units. Updates & Quick Hits LA Metro released its draft EIR for the Airport Metro Connector 96th Street Transit Station, which will serve trains on the Crenshaw/LAX line, Green Line, buses, cyclists, pedestrians and the Automated People Mover that brings people to the LAX terminals. The Monterey City Council approved a citywide bike share program. The city also approved its Climate Action Plan, after receiving a $250,000 grant from the Coastal Commission and the Ocean Protection Council to update its plan. Richmond has adopted one of the state’s most liberal marijuana regulations. It will allow an unlimited number of permits for commercial cannabis growing operations as well a business permits to produce edibles like cookies, brownies and tinctures. Mayor Tom Butt estimates it will generate $1 million each year. California senators have approved , 35-1, a $2 billion bond to assist counties in offering permanent housing for mentally ill homeless people. The money would come from an existing fund for mental health care financed by a tax on millionaires that was approved in 2004. A Stanford University study found that California has three times more groundwater than was earlier estimated. However, this water is located in deeper aquifers,1,000 to 3,000 feet underground, which would require much more money and engineering expertise to access as drinking water. The water quality is unsure, and may require desalination. The OCTA board  voted unanimously to cancel the 3.2-mile, $300 million Anaheim Streetcar project. The Transportation Authority will now conduct a study of the Harbor Boulevard corridor and come up with less expensive transit solutions for the corridor.  The California Supreme Court blocked a lower court ruling that said certain tax increases only need a simple majority instead of two-thirds of voters as required by Proposition 13. Having the court review a case will take months, or even years, before a final ruling is made. The ruling will not affect measures on the November ballot. Supporters of a ballot initiative to approve a new football stadium in San Diego had hoped for the 50 percent threshold. Ocean Avenue South, a mixed-use, mixed income development in Santa Monica, is one of 26 global finalists for the 2016 Urban Land Institute Global Awards for Excellence. Half of the projects 160 units are affordable housing and was funded by the city’s former redevelopment agency. L.A. Metro is recommending a combined development team of Trammell Crow Company and Greenland USA to begin negotiations for development of the 15.6 acre Red/Orange Line station in North Hollywood. The project would be one of Los Angeles’ largest transit oriented developments.

Sen. Jim Beall (D-San Jose) and Assembly Member Jim Frazier (D-Oakley) have introduced two bills that would dedicate $7.4 billion annually for transportation projects. Approximately $2.5 billion will go to local streets and roads and another significant portion to freight, transit, active transportation, maintenance and rehabilitation of state highways and local roads. The plan would also stabilize the variable gas tax to help generate more revenues by adding a 17-cent per gallon increase. The bills also require local reporting and cities and counties to maintain existing general fund levels for transportation projects. Other parts of the plan include moving “complete streets” design to highways, creating an Office of Transportation Inspector General, and creating an advanced mitigation program for transportation projects. The two bills have been introduced in a special session, which allows negotiations to continue past the regular session’s deadlines. San Jose Sues Santa Clara over Mixed-Use Project The City of San Jose is suing the City of Santa Clara for approving the 240-acre mixed-use City Place project, which that allegedly have a negative impact on San Jose. City Place, also called Related Project, is located across from the Levi’s Stadium and will include retail, entertainment, office space, hotels and residential units. San Jose claims the EIR that was approved by Santa Clara City Council in June failed to adequately address impacts on traffic and housing. According to a letter San Jose sent to Santa Clara in November, the project does not include enough housing within City Place to support the jobs the project will generate. Additionally the City of San Jose commented on the lack of analysis on greenhouse gas emissions, air quality and public services. Cap-and-Trade Auction Again Yields Disappointing Results Revenue generated from the cap-and-trade program last month is estimated to be around $390 million, even weaker than the previous round in May. Around 30.8 million credits were sold out of the nearly 96 million available. The market did have a higher demand for permits than three months ago, which is a measure of success. Gov. Jerry Brown’s high-speed rail will get around $8.4 million this round, but the program needs significantly more. Cap and Trade funds also contribute to planning-related programs such as the Affordable Housing and Sustainable Communities grants. The Cap and Trade program is still facing a pending lawsuit as to the legality of this potentially unconstitutional tax. And the recent auction was conducted before the legislature approved an extension of the program, thus calling into the question the long-term value of carbon credits.  Planning Reform and Moratorium Initiative Qualifies for Los Angeles Ballot Los Angeles activists have submitted 104,000 signatures to place the anti-development Neighborhood Integrity Initiative on the March 2017 ballot. The measure includes fast-tracking a new general plan, rules that developers cannot meet with city officials and a two-year moratorium on most major development projects. The major group in opposition, Coalition to Protect LA Neighborhoods and Jobs has raised $722,335, half of the money came from CH Palladium. Coalition to Preserve LA, the backers of the initiative, have received $1 million from the AIDS Healthcare Foundation, as well as Leonardo DiCaprio, Kirsten Dunst, Lowe Enterprises, Planning Architecture Engineering Alliance, Westfield and Eli Broad, among others. Ride-Hailing Services Collaborate with Public Transit in Dublin In a unique collaboration between the public sector and ride-hailing services, Lyft and Uber riders in Dublin will get subsidized fares for not riding the bus. The Livermore Amador Valley Transit Authority has launched a $200,000, one-year pilot project to help pave the way for changes in how public transit serves suburban areas. Fares would be limited to $3 per trip within West Dublin and $5 within East Dublin. Managers of the bus service say offering these rideshare subsidizes will cost less than operating a bus for a few passengers. The pilot program was funded evenly by the Wheels funds and a grant from the Alameda County Transportation Commission. First Public Street Opens in Sacramento Rail Yards The City of Sacramento has opened the new Fifth Street bridge making it possible to drive from downtown into the heart of the old rail yards, which has been the subject of a long-term redevelopment. The property will house a Kaiser Permanente medical facility, major-league soccer stadium, new Superior Court building and up to 10,000 housing units. The city has been pushing for redevelopment of the railyard for 25 years, including ownership changes, toxic cleanup fights, recession doldrums and changing markets. Kelley’s Downtown Railyard Venture LLC bought the yard a year ago, and says the first apartment buildings will be available in 2018. Anaheim Paves Way for Development Near Angel Stadium The City of Anaheim Planning Commission voted , 4-0, to develop a 15-acre site across from the Los Angeles Angels’ parking lot for shops, restaurants, offices, residences and a hotel. The Angels are opposed to the project because, according to Angels’ attorney Allan Abshez “would cannibalize the Angels’ existing food, beverage and retail operations at Angels’ Stadium.” The plans include a 30-story residential tower with views of the stadium as well as an outdoor entertainment center. The Angels have plans to develop a “sports-entertainment-hotel” to help generate profits for the stadium renovations. The Angels, lead developer of the 15-acre site and the city will now try to reach a plan that is beneficial for all. The Anaheim City Council must still vote on the project within the next two months. Soda Mountain Solar Plant Proposal Rejected San Bernardino County Board of Supervisors rejected , 3-2, a solar plant proposed for the Mojave Desert’s Soda Mountains. The supervisors were concerned with the project destroying habitat and blocking ancient trails used by bighorn sheep. The Mojave Desert has hundreds of miles of land that has already been disturbed and can be used for such projects, Soda Mountains was not one of them. Soda Mountain Solar would bring hundreds of well-paying local union jobs, economic benefits to the county and local economy, and the production of clean solar energy. Quick Hits & Updates Executive Director Chris McKenzie of League of California Cities has announced his retirement after 17 years in the position. The board is conducting a nationwide recruitment for his successor. McKenzie will remain director until the Oct. 5-7 annual conference in Long Beach.  Long Beach was one of the six cities nationwide selected from a group of 18 to be part of a tactical urbanism workshop series. The cities receive funding from the John S. and James L. Knight Foundation to “advance street safety and placemaking projects such as pedestrian plazas, bike lanes, shared streets, and more.” West Hollywood will be the fourth L.A.-area city to welcome bike-sharing. The WeHo Pedals bike pilot program begins August 30th at four stations. When WeHo Pedals is fully launched there will be 20 stations and 150 bikes. The Center for Biological Diversity, Sierra Club and the San Bernardino Valley Audubon Society are planning to sue  the Regional Tertiary Treatment and Water Reclamation Authority as well as the cities of San Bernardino and Colton over the alleged repeated stranding and killing of the threatened Santa Ana sucker fish. The Water Treatment plant shuts down its outflows to conduct maintenance, which leaves the fish with 75 percent less water in their critical habitat. San Francisco City Controller released a draft report on affordable housing percentages in the city. The report finds that 18 percent affordable units for renting apartments was the ideal number and 20 percent for condominiums. This study was a feasibility study for Proposition C, the June ballot initiative that tried to raise the affordability requirements from 12 to 25 percent. The California Coastal Commission halted the demolition of three decorative waterfalls at Trump National Golf Club in Rancho Palos Verdes last April. The club has since sent four revisions to restore habitat of the protected California gnatcatchers; the most recent draft has been accepted.

ParkScore , a project of the Trust for Public Land, ranked the 100 largest U.S. cities on their needs for parks by using mapping technology and demographic data on a 0-to-100 scale. Five California cities as appear in the top 20: San Francisco with 77.5 (ranked 5 overall), Irvine 75 (8), San Diego 71.5 (12), Oakland 70 (14), Sacramento 67.5 (17); other cities fared poorly, including Stockton 40 (82), Santa Ana 38.5 (83), and Fresno 29 (97). The score, out of 100, is based on acreage (median size of parks), investments and amenities (spending per resident), access (percentage of people within ten-minute walk of a public park). Twenty points are given for median park size and another twenty for percentage of city area. Twenty for investment and forty for percentage of population within short park distance. West Coast Cities Agree to Climate Change Pact            San Francisco, Oakland, Los Angeles and three other West Coast cities have agreed to work together to reduce greenhouse gas emissions and fight climate change under the Pacific Coast Action Plan on Climate and Energy. The plan encourages zero-emission vehicles, reporting of energy usage for large buildings and install more charging stations for electric vehicles. These cities are working with California Gov. Jerry Brown, governors of Oregon and Washington and the premier of British Columbia. Together this region hopes to build an electric car-charging network that allows individuals to drive from Southern California to British Columbia.  Grand Jury Faults Shasta County LAFCO A new Grand Jury report  criticizes  Shasta County Local Agency Formation Commission for failure to meet deadlines and poorly managed staffing. Between 2001 and 2012 the agency did not complete any mandatory reviews of special districts or municipal services in the county. The agency then depleted its budget in order to finish the required paperwork. The report contends that the agency “is not fulfilling its purposes and programs.”  It cites complaints voiced by city staff in Anderson, who said that the agency delayed on an annexation. The report also recommends review of executive officers performance and a revision of the budget to bring back staff that had hours cut. Income Gap Grows in Silicon Valley In the past 25 years the gap in Silicon Valley between wealthy and lower income groups has increased dramatically, according to a new report from the California Budget and Policy Center. For instance in San Mateo County (where the gap is largest), the top 1 percent earn roughly $4.2 million annually which is 46.2 times more than the average income of the bottom 99 percent. The report analyzes these trends and speculates on what could be exacerbating income inequality in the region. The report makes further links between inequality and economic mobility for future generations, income inequality and economic prosperity, and Silicon Valley’s role in combating inequality. The report looks at the dwindling middle class of Silicon Valley, and what could be done to allow this group to afford to live and work in one of the wealthiest areas of the country. Giants Ask City for Tax Break for Stadium Depreciation The San Francisco Giants are asking the city for millions of dollars of property tax refunds, claiming the value of AT&T Park has dropped below $200 million. This means in the 2011 to 2014 term the property-tax bill be slashed in half for $8 million total. The Giants will make a case with the San Francisco Assessment Appeals Board that deals with such disputes. City officials valued the park at $407 million in 2014, while the Giants said it was more like $158 million. A similar case was made in 2003 when the Giants sought refunds from the years 2001 to 2003, the Appeals Board agreed and gave the Giants $3.6 million in refunds. Then the two groups came to a truce and agreed to a ten-year payment schedule that kept the value constant. The agreement has now expired and both groups are making bids to estimate the value of the property. Updates & Quick Hits Humboldt County Supervisors voted unanimously to support removal of four hydroelectric dams in the Klamath River by 2020. Instead of seeing congressional approval, the decommission of the dams is now through the Federal Energy Regulatory Commission. The removal will cost $450 million. Humboldt County is asking AirBnb to pay county lodging tax. This means the company will deduct 10 percent of gross revenues from its renters in unincorporated Humboldt County.  San Jose has moved up to the third-most expensive to city to rent in after San Francisco and New York. Zumper, an apartment rental website, announced that Boston moved down to fourth while Oakland and Washington D.C. are tied at fifth. This means three Bay Area cities are in the top five most expensive cities. A group of non-union construction companies and workers, Coalition for Fair Employment in Construction, announced its opposition to the Chargers’ initiative for a downtown stadium and convention center. The Chargers recently announced they would partner with labor unions and ban non-union construction workers for the $1.8 billion project. Kings County officials have decided not to appeal  a Sacramento County judge ruling that the high-speed rail system did not violate promises made to voters in the 2008 bond initiative.

The San Jose city council  voted , 6-5, to reduce annual rent hikes in a third of apartments, which is a move to stabilize rent in one of the nation's most expensive cities. The city has 44,000 rent-controlled units that can raise rents only 5 percent per year instead of 8. The city's housing department suggested tying annual rent to inflation like other CA cities while Councilman Peralez pushed for only 4 percent increase annually. The council approved another housing item: an anti-retaliation ordinance that would protect renters against requesting repairs and being evicted. The Council also approved, 7-4, to eliminate a program that allowed landlords to pass debt off to renters unless they were "major improvement costs." San Joaquin River Rated As Endangered The San Joaquin River ranks second on American Rivers' recently released annual list of America's Most Endangered Rivers. While other river's threats were mining, mountain top-removal, and harmful dams, San Joaquin River's biggest threat is poor water management, exacerbated by the recent drought. The San Joaquin is not only a source of drinking water, but shortages could also threaten billions of dollars in agricultural production and fisheries. The river basin has four million inhabitants along with two million acres of arid land. The system has been managed primarily for agriculture, hydropower and flood control and the dams and levees have harmed the rivers habitat and recreation opportunities. Recently, water utilities, conservation groups and state agencies have begun to work together to create sustainable solutions. Lawsuit Filed Against Hollywood Palladium Project AIDS Healthcare Foundation has filed a lawsuit against the City of Los Angeles for improper and illegal planning approval process for the Palladium Residences, a controversial residential and commercial development in Hollywood. The proposed project, which includes two 30 story towers with 731 residential units, with 37 units designated at lower rents, was approved by City Council in a 12-0 vote on March 22. The foundation, whose headquarters is near the Palladium, is a major funder and supporter of Neighborhood Integrity Initiative, which seeks to halt the growth of these "megadevelopment" projects throughout the city. "We believe and assert in our lawsuit that the pattern and practice of the Mayor, City Attorney, City Planning Department, City Planning Commission, and City Council operating in defiance of an express City Charter limitation on authority to process and grant general plan amendments is a willful failure to comply with public duties imposed by the City's fundamental land use laws," said AHF President Michael Weinstein in a statement.  Environmental Groups Sue MWD Over Purchase of Delta Islands On April 14th the Planning and Conservation League, Food and Water Watch, San Joaquin County, Contra Costa County, and the Central Delta Water Agency sued the Metropolitan Water District of Southern California (MWD) charging that its claim of complete exemption from environmental review for the proposed purchase of 20,000 acres of Delta islands and farmland is illegal and unjustified. The lawsuit asks the Court to enjoin MWD from purchasing the property unless and until it completes the environmental review required under the California Environmental Quality Act (CEQA). MWD has promoted this land purchase to clear the path for the "California Water Fix" twin tunnels project and remove obstacles to its completion. The purchase would also enable physical changes affecting the properties that may harm the Delta environment and could cost California ratepayers and taxpayers billions of dollars. Plaintiffs allege that the land purchase by MWD is part of an attempt to take more water from the Delta for MWD use and that the environmental impacts resulting from that activity would be "significant" and outside any exemption from CEQA. Congress Members Oppose Central Valley Water Deal California Democrats in Congress are challenging a settlement meant to end decades of litigation over a contentious federal water project in Fresno and Kings counties. The Westlands Water District and farmers have been litigating since hundreds of thousands of acres of land are contaminated with high levels of salt and minerals. The Obama administration would forgive $375 million in Westlands debt and create long-term agreements for water delivery in exchange for taking responsibility of the contamination. However opponents, primarily democrats, argue it gives too much to Westlands and could harm others with water cuts, financial costs and environmental damage. Opponents of the deal are asking US EPA, Natural Resources Committee and the Obama administration to review Westland's finances.  Fresno Annexation Area May Be Downsized by LAFCO A battle between the City of Fresno and the Local Agency Formation Commission is brewing over the fate of a proposed 9,000 acre expansion of the city. LAFCO is proposing to eliminate 2,560 acres from the Southeast Development Area, which was approved 10 years ago but has yet to be developed. The city has been focusing on infill and may want to bank the land for up to 40 years. Up to 45,000 homes may be built in the area if it is kept intact. A city typically has 20 years after annexation to develop land before it risks being taken back by the county. Postponing a scheduled vote in April, the commission will give Fresno another month before changing the borders but the city must defend its position and provide evidence for water for the development. Local school districts however, have purchased lands and $30 million in unused bonds to develop a North Campus. Another school district purchased 159 acres for $17.5 million and without residents and students; the taxpayers are paying investments to a new school for no one.  City Manager Bruce Rudd said the city has ten years to design and begin building, he estimates 9,000 homes may be built by 2035.

A year after Mayor Libby Schaaf announced its creation, the City of Oakland has formally instituted its Department of Transportation and installed Jeffrey Tumlin as interim director. Tumlin is a consultant Nelson/Nygaard on an eight-month contract with the city. Among the department’s top priorities will be a potential $600 million infrastructure bond that the city is considering for the November ballot. It would allocate $350 million for transportation, $100 million for affordable housing, and $150 million for facilities. The department will also manage the city’s streets, which had been under the purview of Public Works; other elements of transportation infrastructure, such as parking and transit, had been governed piecemeal by other city departments. According to the Oakland Tribune, many non-profit leaders and citizens hope the new department will put transportation issues such as bike infrastructure, improving existing transit and pedestrian safety to the forefront. Editor's Note: An earlier version of this brief erroneously indicated that Tumlin has left Nelson/Nygaard. CTC Developing Guidelines For Regional Plans The California Transportation Commission is developing guidelines for the preparation of Regional Transportation Plans (RTPs) and the California Transportation Plan (CTP). The RTP Guidelines were last updated in 2010 and the CTP Guidelines is being prepared for the first time. While the commission will adopt the Guidelines, Caltrans prepares both documents. Updates to the RTP Guidelines are necessary because of changes in state statute, final rule-making and recent passage of the Fixing America’s Surface Transportation (FAST) Act of 2015. The CTP is a long-range plan to provide policy framework to guide transportation investments and decision by all levels of government, private sector and transportation stakeholders. The workgroups include a variety of topics ranging from public health to modeling to freight. The kick-off meeting was June 30 in Sacramento but the first draft of the RTP and CTP Guidelines will be released early July for stakeholder comment with a meeting July 13 and 14. In September the Final draft will be released and few months later the Guidelines finalized. The Commission will consider the two documents late this year or early 2017. Los Angeles Adopts $2 Billion Plan for L.A. River The Los Angeles City Council voted unanimously to approve a long-sought restoration plan for 11 miles of the Los Angeles River from Griffith Park to Downtown. The approved plan, Alternative 20, was the most ambitious of three plans proposed to the council by the Army Corps of Engineers, which oversees the river’s infrastructure. The city and federal government will share the almost $2 billion cost, with the city contribution estimated to be around $980 million. Most of the cost goes to acquiring land for ecosystem restoration projects. The plan will be carried out on a project-by-project basis meaning the city can prioritize projects that are less costly. The plan excludes renowned architect Frank Gehry, who had been approached by the city to design some elements of the restoration. Gehry’s involvement had been scorned by some longtime river advocates; he does not have a reputation for working on landscape. San Jose Sharks Sue City Over Downtown Development Sharks Sports & Entertainment, parent company of the San Jose Sharks hockey team, is suing the City of San Jose over Diridon Station, a $600 million development that, the suit says, will severely impact parking downtown near the San Jose Sharks arena. The suit, filed under the California Environmental Quality Acts, contends that the environmental study was completed years ago when the city experienced different conditions. The Trammell Crow project would convert Diridon Station’s massive parking lot into a 1 million-square-foot high-rise office building with 325 apartments and 30,000 square feet of retail. The Sharks are concerned about 800 parking spaces that would be removed from the vicinity around their SAP Center and say that the removal would violate a contract between the team and the city ensuring that at least 6,350 spaces are within a half-mile for attendees. San Diego Pursues Funding Plan for Parks San Diego Mayor Kevin Faulconer unveiled two proposals that would provide funding boosts to regional parks and accelerate other projects. One proposal would extend Proposition C, a 2008 ballot measure that directs millions in lease revenue from Mission Bay Park into improvements there and in other regional parks. This raises around $10 million annually and expires in 2039, but the proposal would extend to 2069 to allow selling of future bonds. The second proposal involves a plan approved in 2012 to replace cars and traffic in center of Balboa Park with public gathering spaces by building a large parking garage and bypass off the Cabrillo Bridge as well as Plaza de Panama upgrades. This proposal would cost roughly $50 million and need approval from city council. The project has support from billionaire Qualcomm co-founder Irwin Jacobs who is working with Faulconer. State Greenhouse Gas Emissions Dip Slightly amid Economic Boom According to new data from the California Air Resources Board, in 2014, California saw a reduction in greenhouse gas emissions even though the state’s economy improved dramatically. However, the reduction was negligible: less than 1 percent, or around 2.8 million metric tons. Assmbly Bill 32, California’s 2006 climate change law, requires the state to cut back to 1990 levels by 2020; the current trend puts the state on track to reach that goal. While greenhouse gas emissions are falling across the state, those from the transportation sector have increased 1 percent. Transportation accounts for 36 percent of California’s GHG emissions. This year, gas is inexpensive, Californians are driving more, especially those with conventional, non-electric cars. Nonetheless, Gov. Jerry Brown hopes to cut gas consumption in half by 2030. Caltrans Tests Pay-by-Mile Gas Tax Alternative Caltrans has recruited 5,000 volunteers to test out a new revenue pilot program to potentially replace the gas tax. The new program would be a pay-by-the-mile, which gives drivers six different ways to report their mileage and pay accordingly. This is part of the effort to regain funds that were lost from the gas tax with the switch to more fuel efficient and hybrid vehicles. Even with population growth the $4.13 billion in 2004 fell to $3.05 billion in 2015. Now, drivers will pay based on the miles each vehicle travels. Drivers can either purchase a permit for a set period of time or specified number of miles, or make payments based on odometer readings. Other option include plugging a device into the car that has a location-tracking system, self-reporting on smartphone app, or using car’s built-in GPS technology. Caltrans is looking at a variety of measures to accommodate different concerns on enforcement, privacy, administrative costs and equity. Carlsbad Considers Consequences of Sea Level Rise Carlsbad city planners released a draft Sea Level Rise Vulnerability Assessment that looks at hazards through 2050 and 2100. For both, they discuss strategies to prevent flooding, erosion and property damage. The report projects an average rise of up to 1.6 feet by 2050 and 6.6 feet by 2100. The majority of damage will occur to the city’s natural shoreline, most man-made structures are not in affected areas. The sand has already been washing away, and will worsen in the next decades. This is detrimental to tourism, a main economic driver in the area. Other cities in the region such as Del Mar and National City have seen much worse results in their Sea Level Rise Assessments, both will experience significant flooding and erosion. Updates & Quick Hits The Proposition 1 California Urban Rivers Grant Program is holding technical assistance workshops across the state. The first begins July 13 in Sacramento and continues on to Los Angeles July 25, San Jose July 29, San Diego August 2, and August 9 in Redding. The City of Encinitas reached a settlement with DCM Properties because of a density bonus program and adoption of the city’s housing element. Encinitas will send the housing element to the November ballot, adjust its density bonus calculation, and pay DCM Properties $125,000 in legal fees. Gov. Jerry Brown signed an updated gambling agreement for the Amador County Buena Vista Rancheria of Me-Wuk Indians to build a 67.5-acre casino complex. The tribe promised to pay the county $18 million, plus $8 million a year to offset environmental impacts the casino development. SANDAG announced plans to develop a 600,000 square-foot complex with retail, office, residential space and a stopover facility for Metropolitan Transit System Rapid Buses. LA City Council approved a $1.2-billion bond measure for the November ballot to generate money for financing new apartments and other facilities for the homeless. It increases property taxes for the next 30 years. The plan won out over a proposed parcel tax. Morro Bay City Council voted to prohibit secondary dwellings to be used as vacation rentals to preserve affordable housing. Of the 50 secondary dwelling units in the city, only five are licensed as vacation rentals and exempt from the new ordinance.

The City of San Francisco announced  a plan to upzone Central South of Market to accommodate around 7,800 new affordable and market-rate housing units and 40,000 new jobs. The potential plan includes 2.1-million square food redevelopment of the Flower Mart, a tennis club redevelopment, and a 400-foot residential tower. Proposed developer fees, of up to $2 billion, would escalate based on amount of additional height and will help pay for new sidewalks, open space and affordable housing. Half of the fees, nearly $900 million will fund affordable housing production. The plan also prioritizes $500 million for public transit and sidewalk improvements. A separate EIR on the plan will be released end of this year and the Planning Commission will vote early next year. If passed, the Board of Supervisors will consider the plan. State Doles Out $391 Million in Cap-and-Trade Funds for Transit The California Transportation Agency has selected  14 public transit projects to receive part of the $391 million in  funds  from a recent cap-and-trade auction. Nearly $109 million will go to Los Angeles’s subway system and $28 million will fund a streetcar project connecting Santa Ana and Garden Grove. Senate President Pro Tem Kevin de León has a plan to help poorer Californians: $100 million on areas including transit, $100 million on rebates for purchasing clean vehicles and $150 million for vehicle trade-in for low-income families. The two largest projects are High-Speed Rail alignments in Fresno and Madera Counties with $259 million. The next eight projects received $41.2 million each towards Metrolink or Muni programs to provide cleaner, safer and more reliable service. Judge Clears Way for Subway Tunnel Under Beverly Hills High School A U.S. District Court judge has ruled  in favor of Los Angeles County Metro’s plans to tunnel beneath Beverly Hills High School for subway extension to Los Angeles’ west side. The City of Beverly Hills and the its school district have spent $10 million in litigation in the last five years over claims that the alignment would endanger the school and that Metro did not adequately analyze or publicize it. Judge George H. Wu said the Federal Transit Administration did not adequately respond to Beverly Hills Unified School District’s concerns about methane, air quality and recreation from the effects of tunneling the subway line. However Wu did not void the entire environmental review because of the “domino effect” on other phases and jeopardizing grants. Metro now has to complete additional analysis. (See prior CP&DR coverage .) Orange County Cities Get Transportation Grants The board of directors of the Orange County Transportation Authortity approved  $19.5 million to help 13 projects in Orange County cities improve their bikeways and walkways. Funding through the federal Congestion Mitigation and Air Quality Improvement Program will help promote mobility options by improving safety and air quality, providing regional linkages to key destinations, and closing bikeway corridor gaps. Projects awarded include $2.3 million for street improvements in Tustin, $2.27 million for protected bike lanes in Santa Ana, $2.22 million for bike boulevard in Fullerton, $2.07 million to extend bikeway on Coast Highway in Dana Point and $1.11 million for bike improvements in Garden Grove. Caltrain Announces Major Upgrade Program Caltrain officials announced  a $2 billion plan to electrify the commuter rail corridor along the San Francisco Peninsula after high-speed rail officials unanimously agreed to increase the state’s contribution. The High-Speed Rail Authority offered $713 million to Caltrain and an additional $84 million to the city of San Mateo to help fund three new grade separations. The funding will improve the Peninsula tracks so the bullet train may ride from San Jose to San Francisco on the new “blended system” designed to serve commuters regardless of when and whether high speed rail is completed through the peninsula. Caltrain hopes to have the trains running on 51 miles of electric track in late 2020. This week, the Caltrain’s Board of Directors should issue the “limited notice to proceed” to the two contractors working on the railway. Report Cites Statewide Need for Road Maintenance TRIP, a national transportation organization released  the “California Transportation by the Numbers: Meeting the State’s Need for Safe, Smooth and Efficient Mobility.” The report found that one-third of major local and state-maintained roads are in poor condition and 8 percent of bridges are structurally deficient. It recommends increased investments in transportation improvements could relieve traffic congestion, improve road, bridge and transit conditions, boost safety and support long-term economic growth in California. Deficient, congested or undesirable safety features on roads and bridges costs California motorists $53.6 billion annually due to higher vehicle operating costs, traffic crashes and congestion-related delays. Updates & Quick Hits A $625-million proposal to move the northernmost runway at Los Angeles International Airport 260 feet closer to nearby homes has been shelved indefinitely per an recently announced agreement with the city. The agreement ends a lawsuit alleging that the project did not complete the required environmental impact evaluation or take measures to reduce negative impacts. According to HVS consulting firm, the Chargers’ plan for downtown stadium-convention center will not generate enough meeting business to justify the increase in hotel tax. However, Chargers’ adviser says the analysis was pre-determined and taxpayer money was wasted to come to the conclusion the self-interested hotel owners wanted. The Los Angeles County Board of Supervisors voted to approve the 70-acre South Rancho Los Amigos Property in the city of Downey. The county will invest $468 million, and the plan includes several county departments and the development of a 15-acre regional sports center. Public interest group World Business Academy is suing the State Lands Commission for allowing the Diablo Canyon nuclear power plant to operate through 2025 without studying the environmental consequences. Earlier this month the Los Angeles Superior Court ruled that the state agency did not have the authority to exempt the plant from preparing an EIR and that attempting to do so was arbitrary and capricious. The Los Angeles Angels of Anaheim have resumed discussions with the City of Anaheim to stay in the Angels Stadium after possible bid to relocate to Tustin fell through because of the cost of building a new stadium. The city and the team have been discussing $130-$150 million in renovations. The Coastal Commission unanimously approved a proposed amendment to allow Carmel’s Local Coastal Program to offer developers incentives to create more lower-income and senior housing in the denser city core. The amendment allows developers to build more units than existing zoning allows if a certain percentage of units are set aside as affordable housing. Disneyland announced plans to build a $1 billion, 7-level, 6,800-space parking structure and pedestrian bridge to the resort near a hotel. The Los Angeles City Planning Commission has approved The Reef, a development south of Downtown that includes an outdoor plaza, public gardens, 1,000 apartment and condos, restaurants and a hotel. Community activists claim the development will be unaffordable for the people who currently live in the South LA neighborhood. Commissioners told the developers 5 percent of the apartments must be set aside for tenants with lower incomes. The commission also asked the developer to pay the city $15 million for affordable housing off-site. The Mill Valley Planning Commission will consider a new affordable housing ordinance that would establish a local affordable housing fund, an affordable housing impact fee and requirements for new developments with four or more units.

San Francisco Superior Court Judge Garrett Wong ruled the city’s environmental review of the proposed Golden State Warriors’ arena in Mission Bay neighborhood was adequate. The court ruled the mitigations were reasonable and that local transit agencies were notified and able to respond to add additional services. The arena will be called the Chase Center after the team reached a deal with JPMorgan Chase. The main opposition to the project is the Mission Bay Alliance made up of UCSF donors. They argue the 18,500-seat arena will create congestion and slow access to the medical center. The team says the Chase Center will open in 2019. Norco's Rejection Hindu Temple Prompts Accusations of Discrimination The Norco City Council rejected , 5-0, a proposed Hindu temple that did not fit “western aesthetic” required by the laws of a city known as Horsetown, located in the Inland Empire. Those in favor of the project say it is “thinly veiled cultural discrimination.” The developers appealed to city leaders to meet city standards by lowering the building’s height by ten feet and removing the traditional dome. Council members raised other concerns about adequate parking, water drainage and the effect on residential vistas on the four-acre site. The facility would have drawn people from a 20-mile radius to promote “secular harmony” and “a balance between spirituality and modernity.” The project received seven opposition letters from stakeholders (to one support letter), one of which contended that the temple’s “way of life is not conducive to their beliefs…. I’d like to continue on with its hometown atmosphere and not be another casualty of political correctness and tolerance.” The temple’s bakers will have to wait one year before resubmitting a proposal. Alameda County Bans Fracking Alameda County has become the first Bay Area County to ban the practice of hydraulic fracturing for the purpose of extracting natural gas and other fossil fuels. County supervisors unanimously approved the ban making it the fifth county in the state to do so. The county’s only oil generator, E&B Natural Resources, does not use fracking to extract oil, so the ban is mostly preventative and symbolic. Supervisors contend that the ban will protect residents’ water and their health. (See prior CP&DR coverage .) Judge Rules in Favor of Sale of Delta Islands The California Supreme Court sided with the Metropolitan Water District’s $175-million purchase of five islands in the Sacramento-San Joaquin River Delta. While MWD does not have a project for the land, it has said it could be used for a proposed multibillion-dollar water tunnel system. While this was a win for MWD, there are two other lawsuits facing the Southern California Water District. The first claims a breach of contract and the other argues that an environmental impact report should have been completed before purchase. It could be months or even years before all the legal challenges are resolved.  Chumash Win Federal Permission to Expand Reservation The Chumash tribe has received federal permission to annex Camp 4, a 1,400-acre parcel outside the current boundaries of its reservation in Santa Barbara County. The House Committee on Natural Resources moved forward a federal bill that would allow the annexation. Chumash leaders filed for the annexation three years ago, hoping to be freed of the county’s strict permitting process and property tax rolls. The reservation expansion has been the subject of hostility between neighbors and tribal leaders. Those opposed for the bill cite the fact that 10 out of 20 of the bill’s author’s top contributors this election cycle were Indian gambling interests. Others say it is an example of overstepping bounds, and these types of issues need to be dealt with at the local level. Lawmakers Protest Federal Transportation Grant Decisions Southern California was excluded from an inaugural round of federal transportation grants aimed at improving freight movement to and from ports, highways, and rail. Local democratic lawmakers sent  Transportation Secretary Anthony Foxx a letter saying this snub would hurt California and national economies. Los Angeles has the busiest port in the U.S. and is responsible for moving 40 percent or an estimated $396 billion of the nation’s cargo. DOT omitted 16 projects in the six-county region that would improve the Port of Long Beach or pay for zero-emission cranes. Instead the DOT awarded $759 million in projects from Seattle to Louisiana. Only one project, expanding freeway in San Diego County to the Mexican border received $50 million. While the decisions cannot be changed for 2016, the congressional lawmakers hope to make it known how unhappy they are with being overlooked. The delegation is contesting $90 million going to revamp the Arlington Memorial Bridge in Washington D.C. which connects cars to pedestrian, saying it does not meet the criteria of improving freight movement. Oakland Approves Rental Protections The Oakland City Council approved two companion measures to limit the property owners’ ability to raise rents in what is now the fourth most expensive rental market in the nation. The measures will go before voters in November as the Renters Protection Act. They proposals require any annual rent hike of more than 10 percent to be approved by the city. Additionally, the proposal limits the amount the property owners can charge their tenants for capital improvements to their buildings. Buyers of duplexes and triplexes must live in the buildings for at least two years before they are exempt from rent control. Neither measure applies to buildings constructed after 1983, which are exempted under state law that restricts local rent controls. Los Angeles Strikes Deal with Airbnb to Collect Taxes The City of Los Angeles will start collecting taxes from Airbnb hosts. The city has had a tax similar to a transient occupancy tax but has faced difficulty making sure the money was collected. In the new deal, Airbnb will collect the tax and hand it over to the city. This would generate an estimated $5 million that may help pay for homeless programs. Airbnb is in favor of the plan and says it will help residents and ensure the city shares in the economic benefits. The tax still represents a paradox. In L.A. it is still illegal to rent out a home for less than 30 days at a time, although planning officials are working on a new law that could legalize and regulate such rentals. SCAG Issues Report in Advance of Regional Plan Discussions The Southern California Association of Governments has published a new report called “Toward a Sustainable Future: Is Southern California on Track?” The report hopes to build on the last regional plan by seeking more balance between mobility and housing needs with economic, environmental and public health goals. For instance its goal is to reduce carbon pollution by eight percent in four years and 21 percent by 2040. The four main recommendations include: 1) connecting transportation decisions to impact on climate and communities; 2) investing sooner in alternative transportation; 3) convening leaders and getting better data; 4) and bottom-up regional planning. While good progress has been made in public transportation in LA and Imperial County, major gaps remain in affordable housing in the region. Updates & Quick Hits A Los Angeles County Superior Court judge denied a request to halt construction on the Regional Connector subway project through downtown LA. The pending lawsuit, filed by owners of Japanese Village shopping center, claims Metro and two construction companies planned to inject a cement-like substance beneath the pedestrian mall without securing easements. This is the third lawsuit the Japanese Village has filed over the Regional Connector. The Coastal Commission unanimously approved a permit for the planned $2 billion Mid-Coast Trolley in San Diego. The 11-mile, nine-station project will travel through 3.5 miles of designated coastal zone.  The Santa Monica City Council unanimously voted to put the Land Use Voter Empowerment (LUVE) initiative on the November ballot. The initiative would subject any new construction over 32 feet or two stories to gain voter approval. While none of the council members supports proposal, they had no choice besides enacting it into law because the group had gathered enough signatures. San Diego Unified Port District voted , 6-1, to support Seaport San Diego, a $1.2 billion replacement for the 500-foot spire for Seaport Village. The plan includes three hotels with 1,077 rooms, more than 388,000 square feet of retail and restaurant space, a 480 “spire” observation tower and an aquarium. Three lawsuits have been filed in the past month against the City of Long Beach for selling prominent downtown properties without proper parking and traffic studies. The suit alleges the city is “piecemealing” its development projects and not doing a complete environmental study. The plans for the properties include a hotel, luxury apartments, and student housing. The Alameda City Council voted to place a pro-renter initiative on the November ballot and is now considering placing the current city ordinance-with more modest controls- alongside the renters’ measure. The current ordinance restricts landlords to one increase per year and requiring rises of more than 5 percent to be reviewed by an ad-hoc committee. The pro-renter initiative already approved for the ballot would cap annual increases at 65 percent of the change in the CPI for the previous year. (See prior CP&DR coverage .)

Riverside County reached  a settlement with Highland Fairview, the developers of the World Logistics Center in Moreno Valley, to mitigate impacts of the massive facility. The deal asks the developer to provide funding for road improvement projects throughout the county. The planned 40.6-million-square foot warehouse complex will generate an estimated 68,721 vehicle trips a day and approximately 20,000 jobs. The developer will pay $3 million for improvements on Gilman Springs Road and another $3 million to improve Highway 60. The project is facing a dozen lawsuits, and this settlement only eliminates three. The other legal challenges are air quality and endangered species. A Riverside County judge has 90 days to rule  on a Moreno Valley City Council vote to allow the complex to skirt the California Environmental Quality Act via the so-called "Tuolumne Tactic." The cases say the city and developer did not adequately address environmental issues such as air pollution, traffic and other consequences required by CEQA. City Council then adopted three developer-back initiatives exempting the project from environmental laws. (See prior CP&DR coverage .) Obama Administration Finalizing Desert Conservation Plan The Obama administration is advancing  the Desert Renewable Energy Conservation Plan, which would promote wind and solar installations on 10 million acres of the Mojave Desert. The plan, which the administration is seeking to finalize before President Obama leaves office, would permit install 20,000 megawatts of renewable energy on federal land. The plan sets aside nearly 2,000 square miles of land in the Mojave Desert and 5 million acres for conservation. Besides the three national parks, the desert is considered a wasteland used for military bases, off-road vehicle playgrounds and desert cities. However, scientists say developing the undisturbed desert soils could harm the fight against climate change. University researchers find that building rooftop solar systems on parking lots and large stores could provide the state with enough energy three to five times over. Driving this push for large-scale renewable development is the California law requiring half the energy provided by utilities to come from clean sources within 14 years. San Francisco Poised to Embrace Accessory Dwelling Units San Francisco Board of Supervisors are set to approve  so-called “in-law units” in existing private buildings. These accessory dwelling units could potentially create 30,000 more affordable housing units. The main concern was that ADUs should be permitted outside the actual structures of the building. The compromise was the units could only be created within existing structures in place for at least three years or in the open space under decks or light wells. District 3 and 8, which includes Castro, Noe Valley, Chinatown and North Beach, all have ordinances that legalize ADUs. The new provision states one ADU can be built for buildings with fewer than five units and an unlimited number for larger buildings, provided the units are 300 square feet for a studio and 500 for a one-bedroom. The city will create an outreach program to meet with qualifying property owners to provide technical assistance and possible financial assistance through banks. Delta Tunnel Biological Assessment Released The Department of Water Resources released  its biological assessment for the proposed $15.5 billion water tunnel project promoted by Gov. Jerry Brown. The assessment claims that the plan “minimizes potential effects” on endangered fish in the Delta. The biological assessment will now be reviewed by the U.S. Fish and Wildlife Service and National Marine Fisheries Service and analyzed for potential violation on the ESA. A draft was received last fall. California officials are hoping to secure a decision before President Obama leaves in January. California Congressman Introduces Empowerment Zone Legislation Rep. Jerry McNerney (D-Stockton) has introduced  federal legislation, Revitalize Our Cities Act (HR 5498), to extend the federal Empowerment Zones program. The Act would open another 20 cities over the next three years that could include cities such as Stockton that need assistance but have been repeatedly left out of other federal funding programs. In empowerment zones, businesses that generate jobs in areas of high poverty or unemployment receive federal tax incentives. San Joaquin County has around 7.1 percent unemployment rate while the state average is 4.7 percent. Feds Awards Four TIGER Grants to California Cities California received  $40 million in four federal Transportation Investment Generating Economic Recovery (TIGER) grants to improve transportation. Three of the grants will improve transit service and the last will fund a one-mile road. The transit programs are $15 million to LA Metro for grade separation in Santa Fe Springs, $8.7 million to San Bernardino County for passenger rail service to Redlands, $6.3 million to Bay Area Rapid Transit to modernize Oakland’s 19 th Street Station, and $10 million to Live Oak to widen and upgrade one mile of Route 99, the city’s main street. Report Makes Recommendations for Healthy Land Use in Los Angeles Healthy, Equitable, Active Land Use (HEALU) Network released  “Strategic Opportunities to Create a Healthy, Equitable Land Use System in Los Angeles,” a policy brief address issues of health equity through land use. The brief has four key items to make Los Angeles a healthier and more equitable land use system. The first is increasing the percentage of public funds investing in health-promoting infrastructure in low-income communities. Second, is building capacity in the government, private sector, and community-based organizations for more engagement. The policy brief pushes for accelerated land use innovations and demonstration projects. The last is fostering cross-government collaboration to engage health and equity in all land use decisions. Ruling Complicates Development of Rail Yard at Port of L.A. A Contra Costa Superior Court Judge has ruled that the proposed BNSF Railway’s Southern California International Gateway project at the Port of Los Angeles must complete a “more robust and accurate analysis” of the possible environmental impacts. The ruling means the port and BNSF either improve the EIR, scrap the project altogether or appeal the decision. The proposed transshipment facility, to be located 185 acres four miles north of the port, would exceed local noise ordinances and generate 2 million trips per year from truck and trains. The ruling is part of a suit brought on by several groups in neighboring Long Beach; many have raised concerns about environmental justice, noting that the environmental impact report acknowledges that pollution form the facility "would fall disproportionately on minority and low-income populations because the census block groups are adjacent to the point of impact." Updates & Quick Hits The Los Angeles County Board of Supervisors unanimously voted to add Measure M, a half-cent tax increase proposal, to the November ballot to fund transportation projects. The proposal could generate $860 million per year. Starting in September in San Diego, smaller hotels, motels and short-term rentals will no longer have to pay a special room surcharge for tourism marketing. The city council voted that only lodgings with more than 70 rooms will pay the 2 percent on top of the city’s 10.5 percent room tax. The federal Department of the Interior approved the gaming compact for the North Fork Mono Rancheria tribe’s 305-acre casino complex north of Madera. However, a federal lawsuit is still pending which could affect start construction times. San Mateo City Council approved a rent-control initiative for the November ballot. The San Mateo Community Preservation and Fair Rent Charter Amendment seeks to cap rent increases at the regional consumer price index and instate just-cause eviction regulations. The rent-control measures would only apply to apartments built before Feb. 1, 1995 however all residents would receive protection against eviction without cause. The Sacramento City Council will vote on new rules for safeguarding, maintaining and removing trees on public and private land. The proposal would require a 15-day notice before city trees and some privately owned heritage trees could be cut down, with higher fines. Latham Square in Oakland has reopened after nearly three years of planning and construction. The square was enlarged and is now four times larger. Additionally there is a working fountain for the first time since 1941. The money for the project came from a state grand ($1.4 million), $3.8 from a half-cent sales tax revenue, $500,000 fro Alameda County Transportation Commission and $1.3 million in local funds. In the last year, Santa Monica issued 893 fines to local property owners and collected $20,000 from Airbnb, after enacting one of the strictest STR laws in the country. The city restricts its property owners from renting out homes or apartments on a short-term basis. Hosts who violate the law will pay fines of up to $500. Airbnb filed suit against the City of Anaheim after the city council banned short-term rentals and said home-sharing websites would be fined for illegal listings. The company says the city is violating the Communications Decency Act and the First Amendment. This is a similar lawsuit Airbnb is fighting in San Francisco. The new L.A. Football Club MLS team is proposing to build a massive athletic facility in Tustin on 85-acres of Navy-owned land surrounding a former blimp hangar. The plans for the site includes a 5,000-8,000 seat stadium, 18 sports fields, 12 baseball diamonds, a medical center, sports research lab, three hotels as well as a promenade with restaurants, stores and apartments.