REPORT ON ACTIONS TAKEN AT THE JUNE 19, 2006 MEETING

 

1.  Minutes.  On a motion made by Rose Goldwater and seconded by Bob Kunz, both the Minutes and the Record of Actions of the May 15, 2006 meeting were unanimously approved as submitted.

 

2.   Request to Endorse Campaign for California Homeownership.  Several questions were raised regarding the Coalition’s overall focus.  Concerns were expressed that the materials provided were vague and too general.   One member indicated concern over the Coalition’s legislative program, feeling that some of the member Chambers would not likely support expediting CEQA or EIR requirements if the result was to weaken them.  The large housing development on the Ventura/Los Angeles County line, proposed a few years ago, was cited as an example of a project that sparked major opposition based on traffic issues which ultimately doomed it. 

 

It was the consensus of the group not to take action at this time on the Coalition’s request for endorsement of its campaign and legislative program.  The Chair was asked to invite a representative from the Coalition to attend the next meeting to provide more specific information about its goals and objectives, and on its source of funding. 

 

It was also the consensus of the group not to join broad coalitions, but to consider issues separately as they arise.  Concern was expressed that the purpose of a coalition could change over time, and UCC would be locked in as a supporter even if the new direction was one not supported by UCC or a majority of its member chambers.

 

3.      City Council Moratorium on Condo Conversions.  While it was the consensus of the group that condo conversions was symptomatic of a much larger problem regarding housing and affordability issues (for both owners and renters), it was:

 

MSP [Vic Vierck/Rose Goldwater]:  To support Vic Vierck’s proposal to write members of the Los Angeles City Council and the Mayor, urging that the following two changes be made to the current Rent Stabilization Ordinance:

 

(1)    Allow 100% pass through of capital improvement costs, comparable to the manner included in the initial rent stabilization ordinance; and

(2)     Require means testing, based on HUD standards, in order to qualify for restricted rent levels (i.e., people would have to be in certain income brackets to qualify for rent controlled apartments).

     

      The vote was unanimous.

 

4.   AB 2330 (Arambula):  Cost Impacts of State Regulations on Small Businesses.  The Chair stated that this legislation has the strong support of the California Chamber of Commerce and has been passed unanimously by two Assembly Committees and by the full Assembly.  The bill seeks to require the Office of the Small Business Advocate to commission a study on the cost impacts of state regulations on California small businesses.  Following discussion, it was:

 

      MSP [Rose Goldwater/Pam Corradi]:  To support AB 2330, and to express that support in letters to the Chair and Vice-Chair of the Senate Committee on Business, Professions and Economic Development, where the bill is scheduled to be heard on June 26. 

 

      The vote was unanimous.

 

6.  Public Pension Plans.  Vic Vierck presented his proposed position that UCC support government agencies changing pension plans for future employees from defined benefit to defined contribution.  A lengthy discussion ensued on the looming size of the unfunded liability posed by generous pension plans that governments have no funding scheme to cover, versus the value of a good benefit package for generally low paid teachers, university professors and other government employees in competing for top talent with other states and institutions.

 

      It was the consensus of the committee that more specific information is needed on the actual numbers--the size and scope of the problem.   The Chair was asked to invite a representative from the Legislative Analyst’s Office to attend the July meeting to provide more specificity on the issues.  Members were asked to send their questions to the Chair who will forward them to the LAO representative.  The Chair was also asked to find out what position the California Chamber of Commerce holds on public pension plans.