I'm interested in carrying out a survey of local newspapers to see how much reporting of councils is still undertaken. I started this debate on my blog where you can read more. http://sarahhartley.wordpress.com/2009/09/04/my-local-paper-and-the-reporting-of-council-matters/
Guidance on how to measure coverage can be found here, and there is a spreadsheet to enter your results here.
UPDATE: There's also an ongoing blog covering the issue at http://councilcoverage.posterous.com/