A lot of jurisdictions already have that sort of thing, a city-run TIS.
The city I'm in (Lafayette, a suburb of SF located along Highway 24 just west of Walnut Creek) has one.
It's operated by the police department and operates on 1670 AM. Apparently it is relatively new, as the signs I see reading "In case of emergency, tune to 1670 AM" are fairly new, probably not much more than 4 or 5 years old).
In the daytime, it covers pretty much everywhere between Moraga to the south, Orinda to the west, Briones reservoir to the northwest, Walnut Creek to the east and almost to Martinez to the northeast (there's apparently a Mexican flamethrower on 1670 whose skywave signal tends to bury it in the more distant fringe areas at night, but even then, it still covers downtown and most core neighborhoods – including mine – quite well, which is good since that's the target area).
Why they didn't choose something more modern like FM or something else, I don't know, but apparently they still see AM as a viable tool for notifying the public during emergencies, so in that context, removing AM from cars – one of the few places where radios are still common – would seem to be kind of stupid (how would anyone hear what the PD has to say on 1670 if nobody has a radio capable of receiving it?)
Yes, most people would simply use their ever-present smartphones if they need emergency info (especially here), but when something bad happens, there's always the risk that cell service will likely be the first to go out, and having a fallback system in place is important for that reason.
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