BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 2231                     HEARING:  7/3/12
          AUTHOR:  Fuentes                      FISCAL:  Yes
          VERSION:  6/28/12                     TAX LEVY:  No
          CONSULTANT:  Weinberger               

                           SIDEWALK REPAIR ORDINANCES
          

          Requires majority-voter approval to repeal any city or 
          county ordinance requiring the city or county to repair 
          sidewalks.


                          Background and Existing Law  

          State law requires the owners of lots or portions of lots 
          fronting on any portion of a public street or place to 
          maintain any sidewalk in such condition that the sidewalk 
          will not endanger persons or property and maintain it in a 
          condition that will not interfere with the public 
          convenience in the use of those works or areas, except as 
          to those conditions created or maintained by persons other 
          than the owner.  The superintendent of streets, as defined, 
          must provide specified notice to the owner or person in 
          possession of the property fronting on that portion of the 
          sidewalk out of repair or pending reconstruction, to repair 
          the sidewalk.  Under existing law, if the repair is not 
          commenced within two weeks after the notice has been 
          provided, the superintendent of streets must make the 
          repair and impose the cost of the repair as a lien on the 
          property.

          A benefit assessment is an involuntary charge that property 
          owners pay for a public improvement or service that 
          provides a special benefit to their property.  The amount 
          of the assessment must be directly related to the amount of 
          the benefit that the property receives.  Benefit 
          assessments can finance public projects like sidewalk and 
          street improvements.

          As an alternative to benefit assessments, and only with the 
          free and willing consent of affected property owners, 
          public agencies can use "voluntary contractual assessments" 
          to finance public improvements to developed parcels (SB 




          AB 2231 -- 6/28/12 -- Page 2



          837, McQuorquodale, 1987).

          In some cities, including Los Angeles, Oakland, Berkeley, 
          Half Moon Bay, Placentia, Burlingame, and Redlands, city 
          ordinances make the city responsible for paying the costs 
          of repairing damage to sidewalks caused by street trees.  
          Facing total sidewalk repair costs that may exceed $1 
          billion, the Los Angeles City Council has been considering 
          a variety of options for financing the costs of sidewalk 
          repairs.   One option reportedly under consideration last 
          year was to change city ordinance to make homeowners pay 
          for sidewalk repairs.

          In response, some public officials and property owners want 
          to require that voters must approve any repeal of a local 
          ordinance that makes a city or county responsible for the 
          costs of repairing sidewalks.   They also want to prevent a 
          city or county from imposing any fee, charge or assessment 
          for the costs of sidewalk repairs on any property owners 
          unless the assessment is imposed with the property owner's 
          free and willing consent.


                                   Proposed Law  

          Assembly Bill 2231 prohibits a city or county from 
          repealing an ordinance that requires the city or county to 
          repair sidewalks unless the repeal is approved by the 
          majority of voters voting on that measure, in a 
          consolidated or general election.

          AB 2231 prohibits a city or county with an ordinance that 
          requires the city or county to repair sidewalks from 
          imposing a fee, charge, or assessment against a private 
          property owner for sidewalk repairs under a specified 
          statute, unless a repeal of the city or county's sidewalk 
          repair ordinance is approved by a majority of voters.  The 
          bill specifies that this prohibition on imposing fees, 
          charges, and assessments for sidewalk repairs does not 
          apply to voluntary contractual assessments levied pursuant 
          to specified statutes.


                               State Revenue Impact
           
          No estimate.





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                                     Comments  

          1.   Purpose of the bill  .  When a city ordinance makes the 
          city responsible for repairing damaged sidewalks and the 
          city allows sidewalks to fall into disrepair, it is unfair 
          for the city to change the law and force property owners to 
          pay the costs for decades of deferred maintenance.  
          Particularly during difficult economic times, when many 
          homeowners are struggling to avoid foreclosure, it seems 
          wrong for local governments to add to the costs of 
          homeownership by changing their long-standing sidewalk 
          repair policies.  AB 2231 guarantees that the public will 
          have a voice whenever a city or county tries to shift the 
          financial burden for sidewalk repairs onto homeowners by 
          repealing a sidewalk repair ordinance.  The bill also 
          guarantees that city that is legally responsible for the 
          costs of sidewalk maintenance can only impose an assessment 
          for sidewalk repair with a property owner's free and 
          willing consent.  AB 2231 protects property owners by 
          ensuring that they fully participate in local decisions 
          about who pays for sidewalk repairs.

          2.   Unnecessary  .  Current law gives local residents ample 
          opportunity to influence a city council's decision to 
          repeal a sidewalk repair ordinance.  The action repealing 
          an ordinance would have to be subject to a vote of the city 
          council in an open and public meeting, which would be 
          subject to the Brown Act's provisions requiring advanced 
          notice and opportunity for public comment.  City voters can 
          hold city council members directly accountable in 
          subsequent elections for deciding to shift sidewalk repair 
          costs to property owners.  A city council action to amend a 
          sidewalk repair ordinance also may be subject to voter 
          referendum.  A successful referendum effort would require 
          the city council to either reverse its action or place the 
          matter before city voters at a future election.  The fact 
          that the City of Los Angeles has not changed its sidewalk 
          repair ordinance after city residents responded negatively 
          to the idea, suggests that local residents may already have 
          sufficient opportunities to influence city officials' 
          decisions about allocating the costs of sidewalk repairs.  

          3.   Too restrictive  .  Local governments, like many 
          individuals, face substantial fiscal challenges cause by 





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          the recent economic downturn.  Although some cities chose 
          to accept responsibility for the costs of sidewalk repairs, 
          those cities may no longer be able to afford the repairs.  
          Banning the imposition of any fees, charges, or assessments 
          to pay for sidewalk repairs ties the hands of local 
          officials who must make difficult choices about allocating 
          scarce general purpose tax revenues among competing local 
          needs.  By making it harder for city officials to shift 
          repair costs to property owners, AB 2231 may simply ensure 
          that city sidewalks remain in a state of disrepair.  

          4.   Constitutional question  .  The California Constitution 
          allows cities that adopt charters to control their own 
          "municipal affairs."  In all other matters, charter cities 
          must follow the general, statewide laws.  Because the 
          Constitution doesn't define "municipal affairs," the courts 
          determine whether a topic is a municipal affair or whether 
          it's an issue of statewide concern.  At least four charter 
          cities (Berkeley, Los Angeles, Oakland, and Placentia) have 
          sidewalk repair ordinances that make the city responsible 
          for paying repair costs.  AB 2231 says that it applies to 
          all cities, including charter cities.  To support this 
          assertion, the bill includes a legislative finding and 
          declaration that the bill's provisions constitute a matter 
          of statewide concern and supersede any inconsistent 
          provisions in the charter of any county or city.  Skeptics 
          may question whether the manner in which a city pays for 
          the cost of sidewalk repairs is truly a matter of statewide 
          concern.  The Committee may wish to consider amending AB 
          2231 to include more detailed and specific findings to 
          bolster the argument that the bill's provisions should 
          apply to charter cities.  Otherwise, the courts may not 
          agree.

          5.   Mandate  . The California Constitution requires the state 
          government to reimburse the costs of new or expanded state 
          mandated local programs.  Legislative Counsel says that AB 
          2231 creates a new state mandated local program by 
          requiring city and county officials to seek voter approval 
          of a decision to repeal an ordinance.  Section 2 of the 
          bill requires the state to reimburse any costs identified 
          by the Commission on State Mandates.


                                 Assembly Actions  






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          Assembly Local Government Committee:  7-0
          Assembly Appropriations Committee:12-0
          Assembly Floor:                    29-25
          Assembly Floor (reconsideration)   47-21
          Assembly Floor (amendment):   46-23
          Assembly Local Government Committee:  6-0
          Assembly Floor:                    48-10


                        Support and Opposition  (6/28/12)

           Support  :  Apartment Association, California Southern 
          Cities; Apartment Association of Los Angeles; Building 
          Owners and Managers Association of California; California 
          Apartment Association; California Business Properties 
          Association; California Restaurant Association; East Bay 
          Rental Housing Association; International Council of 
          Shopping Centers; Neighborhood Market Association; NORCAL 
          Rental Property Association; Silver Lake Neighborhood 
          Council; California Association of Realtors.  

           Opposition  :  California State Association of Counties; 
          Cities of Camarillo, Concord, Lakewood, Los Angeles, 
          Palmdale, Rancho Cucamonga, Torrance, Burbank, Pasadena, 
          San Jose, and Sunnyvale; Counties of San Joaquin and 
          Ventura; Glendale City Employees Association; League of 
          California Cities; Organization of SMUD Employees; San 
          Bernardino Public Employees Association; San Luis Obispo 
          County Employees Association; Santa Rosa City Employees 
          Association.