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Home My WebLink AboutAGENDA REPORT 2013 0320 CCSA REG ITEM 10G ITEM 10.G. MOORPARK CITY COUNCIL E : AGENDA REPORT TO: Honorable City Council FROM: Jennifer Mellon, Administrative Services Managek_:�", DATE: March 8, 2013 (CC Meeting of 2/20/13) SUBJECT: Consider Approval of Payment of a Voluntary Litigation Surcharge to the League of California Cities DISCUSSION The City of Moorpark is a member of the League of California Cities (League) and pays dues of $11,736 annually. The League Strategic Priorities for 2013 include Building lasting partnerships with state policy-makers and others; expanding community economic development tools and funding options for city services; and, continuing pension and other post-employment benefits (OPEB) reform. The mission of the League is to expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. League membership dues have remained unchanged since 2008. League membership dues will once again remain the same for 2013; however, Cities are being asked to support vital litigation by paying an additional voluntary surcharge of 10% in order to provide resources required to initiate litigation and bring it to a final conclusion. FISCAL IMPACT League of California Cities dues are budgeted within the City Council General Fund Expenditure Budget. For Fiscal Year 2012-13, there are enough funds available within the City Council expenditure budget that will remain unspent to cover the additional $1,173 needed to pay the voluntary surcharge. The City Council General Fund Budget line item for League dues shall need to be increased by $1,000 in future years to cover the continuing payment of the voluntary surcharge if approved. STAFF RECOMMENDATION Approve payment of the League of California Cities Voluntary 10% Surcharge for Vital Litigation. Attachment- League of California Cities Letter Regarding League Dues for 2013 and the Voluntary Surcharge to Support Vital Litigation 93 STREET LEAGUE SACC ACRAM erJTO,CA95814 OF CALIFORNIA (916)658-8200 Ex:(916)658-8240 L��_CITIES WWW.CACITIES.ORG December 7, 2012 TO: City Managers and City Clerks in non-manager cities FROM: Officers of the League of California Cities Bill Bogaard, President, and Mayor of Pasadena Jose Cisneros, First Vice-President, and Treasurer of San Francisco Tony Ferrara, Second Vice-President, and Mayor of Arroyo Grande Mike Kasperzak, Past President, and Mayor of Mountain View Chris McKenzie, Executive Director SUBJECT: League Dues for 2013—No Increase! Voluntary Surcharge to Support Vital Litigation Thank you for your City's membership in the League of California Cities. Enclosed please find your city's customized 2013 dues statement and related supporting documentation. League Membership—A Great Investment The value your city derives from membership in the League of California Cities makes the payment of League dues a wise investment. Please review the enclosed customized "Return on Investment"report for your city. It reflects financial benefits your city enjoys as a direct result of the League's legislative and ballot measure advocacy. A strong and effective League is central to your city's continued strength and vitality. Benefits of Membership The League is the leading advocate for California cities. Protecting local control remains the cornerstone of League activities as we work in concert with cities,partners, and coalition members. Please find the enclosed `Benefits of Membership in the League of California Cities," a summary of the more significant benefits cities and city officials receive from League membership. Litigation Strategy to Defend Revenue Protections The League and city officials have invested tremendous human and financial resources over the past decade to secure meaningful constitutional protection of city revenue sources. Proposition 1A and Proposition 22 represent the will of the voters and significant victories for local control. However, it is now clear that defending and enforcing these protections will require vigilance and even litigation, possibly on a repeated basis, until the protections are generally understood and respected, especially by the Legislature and Administration. Our mission is to expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. 94 2 The League currently has two lawsuits pending in the courts challenging state actions that violate Prop. I and Prop. 22. In League of California Cities v. Chiang, the League is challenging the state's shifting VLF from cities and directing this revenue to priorities the state has unilaterally deemed to be more important. In a second case,League of California Cities v. Matasantos, the League is challenging the unconstitutional "claw-back" penalties in the AB 1484 budget trailer bill that puts city sales and property tax revenues at risk. Every city in the state has an interest in the outcome of these two lawsuits. This vital defensive strategy is expensive, but essential. Implementing this strategy is conducted at greatly reduced cost and effort if the League serves as the lead plaintiff on behalf of all cities. The alternative would be for each city or ad hoc groupings of cities to initiate separate lawsuits. By coordinating their efforts through the League, cities can leverage their resources for the benefit of all cities to challenge the state whenever it attempts to weaken the important local revenue protections California cities have worked so hard to achieve. Voluntary Litigation Surcharge As noted, the resources required to initiate litigation and bring it to a final conclusion are substantial. Throughout the ongoing economic downturn that cities have lived with for several years, the League has avoided imposing any increase in dues for membership in the League. Due to the recession, the League also has experienced a reduction in revenue from conference registrations and from other major revenue sources. To finance this new and important role for the League, the board of directors is asking that each city consider paying an optional surcharge equal to ten percent of the League dues to support vital litigation. The surcharge is shown on the enclosed invoice. The recommended surcharge is optional; a city may pay the base dues and enjoy all the benefits of membership. However, we sincerely hope you will consider supporting this new and important role the League is undertaking because of its tremendous value to your city and all cities throughout the state. Conclusion—California Cities Work Together Through the League, all cities and all city officials have the opportunity to help shape solutions to the issues of greatest importance to our cities and the state of California. Working together, we pursue those solutions most effectively. It is important for cities to act energetically, in unison, and with renewed focus to amplify our voice in key statewide policy matters. The board of directors encourages your enthusiastic support of and participation in the League of California Cities in 2013. We look forward to continuing our fight together to protect local control and help you provide outstanding service to the residents of your great city. If you have any questions about this matter, please contact Dan Harrison, Director of Administrative Services, at dharrision(a)cacities.or or 916-658-8267. Enclosures: • Dues invoice • Return on Investment Report • Benefits of Membership 95