Q: What is "local items"keychain and its password, how can i reset the password if i forgot the password

I just fixed the same problem.  Here's what to do. 

Click on the finder, then scroll across to the GO on the top menu bar, but also hold down the option or alt key while you do this.

scroll down the go menu to library and highlight library.

the library folder will open

go to the keychains folder and open it

in the keychains folder, then click and drag the blue folder that has all the letters and numbers for a title like "A2CEEE274-....."

drag this folder to the desktop

now restart your machine

when the machine restarts, you should see the keychains folder still open with a new folder in it that looks just like the one you dragged out onto the desktop

throw the one on the desktop out in the trash

You just reset the keychain folder so the new mavericks update could recognize it correctly, by the way apple customer support mentioned the reason this was happening was due to the update, and this is the standard fix.  The apple keychain access pw should be your apple id or logon password. 

Good luck!!!

STEVE FARRELL