In a possible blow to High Speed Rail and climate-change programs like the Affordable Housing and Sustainable Communities grant program, the most recent cap-and-trade auction fell short of expectations. Only 2 percent of carbon credits were purchased -- 785,000 of the 43 million offered, all sold at the floor price of $12.73. The Department of Finance had anticipated revenues of $2.4 billion for the fiscal year. Three previous auctions met expectations, resulting in a total of $1.8 billion for the year. The rail authority was expecting $150 million and received $2.5 million from the $10 million that was generated last week. Some analysts suggest that emitters of carbon dioxide have cut back on emissions more than anticipated. Other reasons for the low turnout are because there is less need for credits, litigation may overturn the entire system and volatility by speculators in a secondary trading market. There is a $500 million reserve set up for volatility that could help close the gap, which will be decided on by Gov. Jerry Brown and the legislature.

Riverside to Reconsider Governance of March Air Base
Riverside County supervisors are sponsoring a measure to ask the Board of Supervisors to restructure the March Joint Powers Authority, which in 1993 was tasked with overseeing the transition from military to civilian use. The former March Air Force Base is significantly smaller now and does not need the annual $600,000 subsidy. The remaining land would be parceled equally among the three cities: Riverside, Moreno Valley and Perris. The JPA will still exist but its role would be as airport authority, overseeing civilian use of the March base and promoting base’s importance in case of downsizing or elimination by Congress. Disbanding the JPA has been considered before and failed, but the supervisors are more hopeful because the vision and most land has been developed.

Sacramento May Shut Underperforming Light Rail Segment
Sacramento Regional Transit is considering closing the Green Line to North Natomas and Sacramento International Airport indefinitely, after costing $44 million and operating for four years. This line averages only 440 boardings a day and costs $330,000 annually. Transit officials had hoped housing developments in the areas the Green Line served would come online more quickly. Another option, instead of closing a line, would be having every few Gold Line trains make the entire Green Line loop . Final decisions will be made in June, and the cuts would take place January 2017. RT has suffered from low ridership, increased costs, and less state and federal transportation funding. Fares were increased by 10 percent, making tickets the most expensive in the state.

Lawsuit Filed by Critic of Inglewood Football Stadium
Barbara Ohno, a former accountant for the city of Inglewood, is filing a lawsuit against Mayor James Butts and other officials because she claims to have been let go for “whistle-blowing” on alleged financial and accounting irregularities during the city’s pursuit of an NFL team. She says the city “engaged in faulty financial and accounting practices, fraudulent regulatory reporting, and reclassification of costs to depict a favorable, but false, financial picture.” City representatives say Ohno was a probationary employee released before completing her probationary period and that the city was never required to present financial data to the NFL.

Los Angles May Subsidize Grand Avenue Project
The City of Los Angeles may offer a financial aid package of $198.5 million over 25 years to Related Cos. to support the completion of the long-awaited Grand Avenue Project. Related put $50 million into constructing Grand Park and opened Emerson, a luxury apartment building nearby, two years later. Now, a pair of hotel and residential towers are planned across from Walt Disney Concert Hall but the funds are short. The proposed funds would help Related finish constructing a four-star hotel, 429 residential units, restaurants and stores on Grand Avenue. Related would be able to keep half of the taxes generated for the city. This subsidy package represents half of the funding gap, which an analyst says is so high because of the decision to hire Frank Gehry as the architect.  City Council will vote on the proposal next week and construction on the towers will begin next year.

Los Angeles Sponsors Competition for Innovative Urban Solutions
Los Angeles Mayor Eric Garcetti has announced the first Mayor’s Cup, with a $25,000 prize, for innovative solutions for promoting entrepreneurship, preserving affordable housing, supporting small businesses, and beautifying vacant and blighted spaces. The program is soliciting proposals from student entrepreneurs and local academics to incentivize creativity. Submissions must solve one of eight challenges posed by the program.  Finalists will pitch ideas to panel of business and government leaders; grand prize winners will work with City Hall for eight weeks to bring their proposals to life. Applications are due Oct. 15 and finalists will be announced early November.

San Francisco Competes for ‘Smart City’ Grant
San Francisco is one of seven cities pitching a transportation vision to U.S. Department of Transportation for a $50 million “Smart City” grant. The San Francisco plan includes Mayor Ed Lee, SF Municipal Transportation Agency, UC Berkeley, Google, Uber and Lyft. The plan includes autonomous buses, shared bikes, Uber and Lyft vehicles and parking structures converted into green space or affordable housing. The entire system would be available using a single smartphone app. More than 40 companies have pledged a combined $99 million should they receive the federal grant. This new system would improve safety, reduce greenhouse gas emissions and allow people to travel anywhere in the city in twenty minutes or less. The project will be implemented in three-year phases over the next decade.


Quick Hits & Updates
Madera County is creating a Department of Water and Natural Resources to streamline services for residents, ensure groundwater management, and deal with supply, quality and storage. Julia Berry, former executive director of Madera County Farm Bureau, is the new director of the department.

A judge approved the Metropolitan Water District’s purchase of 20,000 acres in the Sacramento-San Joaquin River Delta. San Joaquin and Contra Costa counties asked the Superior Court to block the purchase arguing about the potential harm to the delta.

In one of the largest commercial deals in recent memory in San Francisco, the Planning Commission approved two mixed-use towers totaling 2.3 million square feet in the Transbay district in South of Market. One tower is 850 feet with residence and offices and the other is 605 with residences and a hotel. City officials say the project supports walkability, increased public transit and restores historic buildings on site.

KaBOOM! announced its 2016 Playful Cities USA that make it easy for kids to get “balanced and active play in their neighborhoods.” Out of the 257 communities that were recognized, 30 are in California. San Francisco and Kerman have been recognized as honorees ten times.

The ongoing lawsuit on Bakersfield’s Centennial Corridor project must return to court earlier than expected because demolition contractors began dismantling vacant structures. The group suing, Concerned Citizens About Centennial Corridor, is asking for a preliminary injunction against further work on the project before the June 3 court date.

The Del Rey Oaks city council unanimously approved a would-be ballot initiative clearing the way for  the development of a 54-acre RV park in the city. It is believed to be the first time the “Tuolumne tactic,” which enables a council to pre-empt a popular vote without CEQA review, has been used on a project that small.