BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2549
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 2549 (Ridley-Thomas) 
          As Amended  April 24, 2014
          Majority vote 

           LOCAL GOVERNMENT    8-1                                         
           
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          |Ayes:|Achadjian, Levine, Alejo, |     |                          |
          |     |Bradford, Melendez,       |     |                          |
          |     |Mullin, Rendon, Waldron   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Gordon                    |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Allows the City of Milpitas to organize an independent  
          local commission to investigate and study issues related to  
          economic development in the City.  Specifically, 
           this bill  :  

          1)Allows, on or before April 1, 2015, the City of Milpitas to  
            organize an independent local commission to investigate and  
            study issues related to employment, revenues, and economic  
            activity in order to identify and recommend ways to raise  
            revenues to increase city staff to adequate levels, to invest  
            in infrastructure and development projects, and to increase  
            economic activity in the McCarthy Ranch area of Milpitas near  
            the Newby Island landfill.

          2)Requires the commission to be comprised of seven people to be  
            appointed by the City Council of Milpitas, as follows:

             a)   One member of the business community who is also a  
               member of the Milpitas Chamber of Commerce;

             b)   One employee of the City of Milpitas Fire Department;

             c)   One employee of the City of Milpitas Police Department;

             d)   One member of a local union that is unaffiliated with  
               public employee unions representing workers for the City of  
               Milpitas;









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             e)   One owner of real property within the McCarthy Ranch  
               area of Milpitas near the Newby Island landfill; and,

             f)   Two citizens of the City of Milpitas.

          3)Requires the commission to elect its own chairperson.

          4)Requires the City Manager of Milpitas to be an ex officio  
            member of the commission and report on the commission's  
            activities to the Milpitas City Council.

          5)Specifies that the commission's authority shall cease one year  
            from the formation of the commission.
          6)Sunsets the authority of the City of Milpitas to organize an  
            independent local commission on January 1, 2017, unless a  
            later enacted statute that is enacted before January 1, 2017,  
            deletes or extends that date.

          7)Finds and declares the need for a special law and that a  
            general law cannot be made applicable because of the unique  
            circumstances in the City of Milpitas, where parcels on the  
            west side of Interstate 880 and to the east of Coyote Creek in  
            the McCarthy Ranch area of Milpitas near the Newby Island  
            landfill, the San Francisco Bay area, and the regional water  
            pollution control plant and the particular challenges to  
            economic development as a result of their restrictive  
            location.

          8)Makes a number of other findings and declarations related to  
            economic development in the City of Milpitas.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)Purpose of this bill.  This bill allows the City of Milpitas  
            to organize an independent local commission to investigate and  
            study issued related to employment, revenues, and economic  
            activity, and specifies the membership of the commission.  The  
            bill is sponsored by the City of Milpitas.

          2)Author's statement.  According to the author, "The City has  
            attempted to form an agency to help it (1) meet its  
            obligations, (2) replace public safety and other positions  
            lost, and (3) spur economic activity only to be told that  








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            State law was ambiguous with respect to forming a new agency.  
            The City is focused on encouraging development in a specific  
            area, which presents certain challenges and would like the  
            Legislature to clarify that it may form an agency to pursue  
            development in that area."

          3)Is legislation needed?  The Legislature may wish to consider  
            whether legislation is needed to form this independent local  
            commission.  The City of Milpitas could form this commission  
            via resolution or ordinance, as long as the City of Milpitas  
            does not grant the commission any power that would normally be  
            reserved for the City of Milpitas and its legislative body.   
            In this case, the commission is only tasked with investigating  
            and studying issues related to economic development in order  
            to identify and recommend ways to raise revenues for specified  
            purposes - the recommendations are not binding, and the City  
            Council of Milpitas can consider those recommendations and  
            make its own decision about whether to adopt the  
            recommendations.

          4)Arguments in support.  Supporters argue that this bill will  
            help the City of Milpitas encourage both public and private  
            investment to secure new public safety positions within the  
            city.

          5)Arguments in opposition.  None on file.

           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958 

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