1. Government Affairs Strategic Initiatives for Member Benefit and Retention 1. Industry Defense 2. Economic Stimulus (Proactive Government Affairs Strategies) 3. Membership Education

2. Industry Defense Newport Beach Forced delay in adoption and implementation of Traffic Impact Fees (Nexus Study Pending) Cost Savings $500 approx. $385 per trip. Negotiated 50% reduction in staff proposed recommendation for update affordable housing in-lieu fee Anticipated Cost Savings Approx. $17k per unit.

3. Industry Defense Costa Mesa Defeat of Adoption and implementation of New Library Impact Fee. Cost Savings Approx. $4k per unit. Orange Defeat of Staff Proposal to increase all development impact fees including Park (Quimby), Park and Rec., Traffic, and Library Fees. Cost Savings Approx. $7k per unit.

4. Industry Defense San Juan Capistrano Defeat of Inclusionary Zoning Policy and affordable housing in-lieu fee update. The proposed fee calculation methodology would have more than doubled in-lieu fees exacted from new home construction projects. San Clemente Defeat of Inclusionary Zoning Policy and affordable housing in-lieu fee update. In-lieu fee Cost Savings Approx. $30k per unit On-site Affordable Unit Cost Savings starting at Approx. $200k – 350K per door subsidy (depending on density and product type)

5. Economic Stimulus State Legislation SB1185 – Map Extension Bill (Assembly Floor) AB 2604 – Fee Deferral Authorization Bill (Passed out of Senate 7/2)

6. Economic Stimulus Local Fee Deferral JurisdictionProgram Status City of OrangePermanent Deferral to C of O Approved 4-08 Deferral Amount up to $13k per unit County1 year Deferral to C of O Approved 5-08 Deferral Amount up to $40k per unit City of Anaheim2 year Deferral to C of OApproved 5-08 Deferral Amount up to $10k per unit City of Irvine1 year Deferral to C of OApproved 7-8-08 Deferral Amount up to $33k per unit City of Garden GroveI year Deferral to C o OApproved 9-23-08 Deferral Amount up to $15,000 per unit

7. Economic Stimulus JurisdictionProgram Status City of Mission ViejoPermanent Deferral to C of O Approved 7-7-08 Deferral Amount up to $20k per unit City of Santa Ana1 year Deferral to C of O Approved 8-18-08 Deferral Amount up to $15,852 City of TustinTBD Deferral Program Approved 10-7-08 Deferral Amount up to $17, 515 City of BreaI year Deferral to C o O Approved Sept. Deferral Amount up to $22, 720 OC Sanitation DistrictEnabling Resolution for Deferral Approved Deferral Amount up to $5,000

8. Economic Stimulus City of FullertonTBD Deferral Program Staff Review Deferral Amount TBD City of Costa MesaTBD Deferral Program Staff Review Deferral Amount TBD City of San ClementeTBD Deferral Program Staff Review Deferral Amount TBD City of Huntington Beach TBD Deferral Program Staff Review Deferral Amount up to $30k per unit Anaheim Union School District Deferral Program Pending Final Approval Anticipate the resolution will come back for consideration in January 2009.

9. Economic Stimulus Brea Olinda Unified School District Capistrano Unified School District Garden Grove Unified School District Irvine Unified School District Laguna Beach Unified School District Los Alamitos Unified School District Newport-Mesa Unified School District Orange Unified School District Placentia-Yorba Linda Unified School District Saddleback Valley Unified School District Santa Ana Unified School District Tustin Unified School District Anaheim Union High School District Fullerton Joint Union High School District Huntington Beach Union High School District Anaheim City School District Buena Park School District Centralia School District Cypress School District Fountain Joint School District Magnolia School District Ocean View Valley School District Fullerton School District Huntington Beach City School District La Habra City School District Lowell School District Savanna School District Westminster School District School District Fee Deferral – Letters out 7-11-08

10. Membership Education January 2008 ½ Day Training on 2008 7A Fire Code Regulations May 2008 Climate Change and Land Use Workshop August 2008 2008-2009 Storm Water Requirements