85A - LEGISLATIVE ADVOCACY SERVICE

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TPA will build on our previous efforts with the City of Santa Ana to protect the Enterprise Zone benefits that aid the city's economic development. We will help shape legislative proposals to extend the benefi' of the Enterprise Zone designation as well as promote other proposals through the legislature and thb Governor's Special Commission and Jobs and Economic Development State Funding Advocacy Our engagement with the City would focus on the City's priority projects and initiatives, which will include, but not be limited to, the following opportunities as previously identified in discussion with city management: Proposition 40: $128.4 Million Cultural and Historical Resources Fund Proposition 40 created a $267.5 million fund for the preservation of historical and cultural resources. $91.35 million was awarded in the Fall of 2002 as "opportunity grants". The remaining $128.4 million has been appropriated by the legislature to the recently created California Cultural and Historical Endowment (CCHE) within the Office of the State Library, which will be awarded this Fall via a competitive grant process that is being established this Spring. TPA would work on behalf of the City of Santa Ana to advocate for favorable guidelines and for subsequent grant funding from this source for its own project and/or a project in conjunction with another cultural, historic, or museum organization. Proposition 40: $50 Million 5B 359 Kevin Murray Fund: This funding, which is currently expected to be appropriated in the FY05 Budget, will be divided between the following two programs (and also be divided with roughly 60% going to the southern portion of the state, south of the Tehachapi Mountains, and 40% to the northern portion): 0 California Youth Soccer and Recreation Development Fund: (http://www.parks.ca .qov/default.asp?paqe id=22320) 0 State Urban Parks and Healthy Communities Fund: (http://www.parks.ca.qov/default.asp?paqe id=22321) How the fund will be divided between the Healthy Communities fund and the Soccer fund is entirely undecided at this point, and could be spent all on one program or half on each. Further, TPA can also help the City develop a competitive grant application for the $50 million remaining in the Murray SB 359 (Health Families and Youth Soccer Funds). This fund could assist programs such as the YMCA facility, as well as additional improvements at EI Salvador parks, which was partially funded in the past through our efforts. Proposition 50: $3.44 Billion Water Bond: Passed by the voters in November, 2002, Proposition 50 is in its implementation stage at this point. The portions of the bond that focus on water-related projects are being administered by three separate state agencies: the Department of Water Resources (DWR), the State Water Resources Control Board (SWRCB), and the Department of Health Services (DHS). Though some Proposition 50 funds will be awarded through existing programs, the proposition also called for the establishment of new criteria, and even the creation of entirely new programs. Townsend Public Affairs has been involved with the implementation of Proposition 50 since just after the bond passed and working groups began meeting to develop the implementing legislation. As existing programs have been modified, and new programs created, our participation in the working groups and our continuous involvement in the implementation process provide insight into the technical and political landscapes of those funding sources. 85A-2