BILL ANALYSIS Ó
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 3
(Williams) - As Amended May 5, 2015
SUBJECT: Isla Vista Community Services District.
SUMMARY: Establishes the formation process, boundaries,
services, and governing body for the Isla Vista Community
Services District (District). Specifically, this bill:
1)Requires the Santa Barbara County Board of Supervisors (Board
of Supervisors) to place the question of whether the District
shall be established on the next countywide election ballot.
Requires, if a majority of voters within the District
boundaries established by this bill vote in favor of the
District, that the District be formed in accordance with this
bill.
2)Exempts the District from the formation process established in
Community Services District Law (CSD Law) and provides that
all other provisions of CSD Law apply to the District upon its
establishment, except as provided in this bill.
3)Requires the Board of Supervisors to also place the candidates
for the five elected positions for the District's initial
board of directors (Board) on the ballot at the next
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countywide election.
4)Requires the Board, if the District is formed pursuant to 1),
above, to place a utility user tax (UUT) on the ballot,
pursuant to a two-thirds voter approval, in accordance with
Section 2 of Article XIII C of the California Constitution.
5)Provides that the District is dissolved, if the voters of the
District do not vote to impose a Utility User's Tax (UUT)
within the District on or before January 1, 2027.
6)Exempts the District from provisions of CSD Law, which govern
the establishment of a board of directors, and instead,
requires the Board to be composed as follows:
a) Five members elected at large from with the District for
a term of four years;
b) One member appointed by the Board of Supervisors for a
term of four years; and,
c) One member appointed by the Chancellor of the University
of California, Santa Barbara (UCSB) for a term of four
years.
7)Requires the boundaries of the District to be contiguous with
the area known as the County Service Area No. 31 (CSA 31)
within Santa Barbara County (County) and requires the
District's boundaries to additionally include UCSB.
8)Provides that the services specified in CSD Law do not apply
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to the District. Authorizes the District, within its
boundaries, to do any of the following:
a) Finance the operations of a municipal advisory council
(MAC) formed pursuant to existing law which authorizes any
county to establish and provide funds for a MAC for any
unincorporated area in the county to advise the board of
supervisors;
b) Create a tenant mediation program;
c) Finance the operations of an area planning commission
(APC) formed pursuant to existing law which authorizes a
city or county to create an APC and specifies the functions
of APCs;
d) Exercise the powers of a parking district pursuant to
the Parking District Law of 1951;
e) Contract with the County or the Regents of the
University of California, or both, for additional police
protection services above the level of police protection
services already provided by either within the area of the
District;
f) Acquire, construct, improve, maintain, and operate
community facilities, including, but not limited to,
community centers, libraries, theaters, museums, cultural
facilities, and child care facilities;
g) Acquire, construct, improve, and maintain sidewalks,
lighting, gutters, and trees. Prohibits the District from
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acquiring, constructing, improving, or maintaining any work
owned by another public agency, unless that other public
agency gives its written consent; and,
h) Abate graffiti.
9)Prohibits the District from having the power to organize,
promote, conduct, or advertise programs of community
recreation in the same manner as the Isla Vista Parks and
Recreation District.
10)Provides that, if the Commission on State Mandates determines
that this bill contains costs mandated by the state,
reimbursement to local agencies and school districts for those
costs shall be made pursuant to current law governing state
mandated local costs.
11)Makes findings and declarations that a special law is
necessary and that a general law cannot be made applicable
within the meaning provided in existing law because of the
unique community needs in the Isla Vista area that would be
served by the Isla Vista Community Services District.
FISCAL EFFECT: This bill is keyed fiscal and contains a
state-mandated local program.
COMMENTS:
1)Isla Vista History. There is extensive history surrounding
Isla Vista's community efforts to form a more representative
government, which is currently in the unincorporated area of
the County. A municipal advisory council was formed and later
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dissolved due to lack of funding. SB 921 (Lagomarsino),
Chapter 1420, Statutes of 1972, allowed Isla Vista to form a
CSD, however, the authority granted by the bill was never
used. There have been three separate cityhood efforts in
1972, 1975, and 1983, and an effort to include Isla Vista in
the City of Goleta's incorporation; however, the petitioners
explicitly excluded Isla Vista from their proposed boundaries.
In 2001, the Santa Barbara Local Agency Formation Commission
commissioned a study to examine the local government options
for the unincorporated area consisting of Isla Vista and UCSB
while they examined the proposal to incorporate Goleta. The
report states that, "The Isla Vista community encompasses a
population of over 20,000 residents. It is adjacent to UC
Santa Barbara campus and its student population. Including
University property, the area totals about 1,500 acres. Isla
Vista faces various challenges in local governance. For
example, as a university town, Isla Vista must accommodate the
service needs associated with its transient student population
and a predominantly renter-oriented community. Isla Vista's
situation is complicated by its unincorporated status, which
limits local participation in managing public services and
providing needed public improvements."
In November of 2014 the UC Santa Barbara Foundation Trustees'
Advisory Committee on Isla Vista Strategies released a report
detailing problems and specific recommendations. The report
notes that "Isla Vista has been studied exhaustively for 45
years with at least nine formal reports by government
agencies, grand juries, and the University of California. All
reports reached the same conclusions, decade after decade:"
The report contains the following conclusions:
No government body is fully in charge.
Housing, zoning, safety, and parking ordinances are
inadequately enforced.
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An unhealthy balance exists among resident college
students, families, and other adults.
Expensive, substandard housing is often overcrowded.
An insufficient number of businesses are present to make
a real community.
Current policing is often contentious and
confrontational.
A party culture has resulted in irresponsible and
destructive behavior.
Criminal activity is a major issue and concern.
Proposed solutions are rarely implemented.
New 21st century issues affect Isla Vista as well:
An extremely low housing vacancy rate (<1%) exists in
expensive Santa Barbara County.
Isla Vista's population has increased to 23,000,
creating an acute densification of the community.
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A large influx of Santa Barbara City College students
now reside in Isla Vista.
Widespread use of social media attracts thousands of
non-residents.
1)Local Governments Providing Services in Isla Vista. As an
unincorporated community, Isla Vista receives regional and
local services from Santa Barbara County and from two County
Service Areas (CSAs), which are special districts governed by
the Board of Supervisors. CSA 32 provides Sheriff patrol in
the unincorporated areas of the County and is funded by
non-property tax revenues. CSA 31 services more than 250
streetlights and is funded by benefit assessments and
approximately $15,000 of property tax.
Additionally, several special districts provide services to
Isla Vista, including the Isla Vista Recreation and Park
District, County Fire Protection District, Goleta West
Sanitary District, Goleta Water District, Santa Barbara
Metropolitan Transit District, and the Santa Barbara Vector
Control District.
2)Bill Summary. The Community Services District Law is a
principal act that governs the 312 CSDs in California. The
Legislature originally passed the CSD Law in 1951, and
re-enacted it in 1955 and 2005. As a special district, CSDs
are subject to LAFCO jurisdiction and are subject to the
proceedings contained in the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000.
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Formation and Boundaries. This bill exempts the district from
the formation process defined under current law for CSDs,
which would have required Santa Barbara LAFCO to approve the
District's formation. Instead, this bill requires the Santa
Barbara County Board of Supervisors to place the question of
formation on the next countywide election ballot. A majority
of voters in the District, who are registered voters within
the District's boundaries established by this bill, must
support District formation. Additionally, this bill requires
the Board of Supervisors to place the initial board member
candidates on the same countywide election ballot. This bill
establishes the boundaries of the District to be the same area
as
CSA 31 and also includes UCSB.
Board of Directors. Current law requires that CSDs are
governed by five-member Board
of Directors that are elected by resident voters to four-year
terms. Directors can be elected at large or by divisions.
This bill exempts the District from the provisions in CSD Law
which govern the initial formation of a board of directors,
the reorganization of a board of directors, and other
provisions which establish requirements for when a board must
meet, what constitutes a quorum, and other transparency and
accountability requirements.
This bill specifies a seven-member board of directors for the
District, which include five members elected at large by
registered voters in the District, one member appointed by the
Board of Supervisors, and one member appointed by the UC Santa
Barbara Chancellor. All of the board members, whether elected
or appointed, will serve a term of four years.
Services. CSD Law specifies up to 32 different services,
including water, sewage, flood, hydroelectric power, fire
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protection, public recreation, street lights, police
protection, library, street, and transportation services that
can be provided by a CSD. Following formation, a CSD Board of
Directors must receive approval from LAFCO to exercise any
latent power. The Cortese-Knox-Hertzberg Act establishes the
process to activate a latent power, including passing a
resolution by the Board, holding a public hearing, and
submitting a petition to LAFCO which includes a plan for
services and the estimated cost of the new service. A
district's plan for services must demonstrate that a district
will have sufficient revenue to carry out new services. LAFCO
cannot authorize the exercise of a latent power, if they
determine that another local agency provides substantially
similar services.
This bill provides that the services specified in CSD Law do
not apply to the District, and instead, establishes a number
of powers for the District, including a tenant mediation
program, parking district services, and the ability to finance
a MAC and APC.
Financing. Current law authorizes a CSD to receive a portion
of property tax revenue, establish rates for services and
facilities, and levy special taxes, benefit assessments,
property-related fees, and standby charges. In addition to
these revenue generating powers, this bill also authorizes the
District to levy a UUT, at a rate specified by the District's
Board, with two-thirds voter approval. This bill requires the
District's Board to place a UUT measure on the ballot and
makes the District contingent on its passage. If the UUT
measure is not passed by the voters on or before January 1,
2027, then the District is dissolved.
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Under current law, a city may impose a UUT on the consumption
of utility services, including, but not limited to,
electricity, gas, water, sewer, telephone, sanitation and
cable television. Additionally, a county may levy a UUT on
the consumption of electricity, gas, water, sewer, telephone,
telegraph and cable television services in the unincorporated
area. The city or county determines the rate of the tax and
the use of its proceeds. UUTs are collected by the utility as
part of its regular billing, and then remitted to the city or
county.
In California, 153 cities and four counties impose a UUT on
electricity.
State Mandate. This bill is keyed a state mandate, which
means the state could be required to reimburse local agencies
and school districts for implementing the bill's provisions,
if the Commission on State Mandates determines that the bill
contains costs mandated by the state.
This bill is author-sponsored.
3)Author's Statement. According to the author, "Following
several, tragic events earlier this year, UCSB formed an
advisory committee to analyze the conditions and dynamics of
[Isla Vista] and develop mid- and long-term recommendations to
establish a viable, safe, supportive environment. Among their
recommendations is that the State of California create a
Community Services District/Municipal Improvement District in
Isla Vista with potential powers of infrastructure, utilities,
garbage, police services, parks, recreation, cultural
facilities, fire, security, and roads.
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"The current conditions in Isla Vista have reached a breaking
point. County government is not equipped to meet the critical
infrastructure and service needs of such a large and densely
populated population. With UCSB set to admit 5,000 more
students over the next 20 years to meet the state's growing
need for an educated workforce, a growing population is likely
to lead to further deterioration in conditions over time
without a direct, local self-governance structure in place to
provide the services that will meet [Isla Vista's] unique
needs.
"Since [Isla Vista] is represented by only one Supervisor on a
five-member board, it must always compete with the rest of the
county for even the most basic of services. Self-governance
would create a mechanism through which local funding could be
generated from [Isla Vista] to provide an increase in services
directly to [Isla Vista]. Complicating the issue locally, the
Cities of Santa Barbara and Goleta are openly opposed to
annexing Isla Vista. Further, it isn't likely the County of
Santa Barbara will create the necessary structure for
self-governance for Isla Vista. Further, it is highly
unlikely that the County alone will be able to adequately fund
local services, even if it set up a MAC or some other
structure.
"At stake is a significant state investment. UCSB represents
an investment of billions of dollars on the part of
California. The current situation in IV diminishes the value
of the State's investment in UCSB and the State has a vested
interest in policies that will improve the educational
opportunities of that institution. The time is right for
state action.
"Over the last year, the Isla Vista community in Santa Barbara
County has been faced with many challenges due to high-profile
tragic events, including multiple violent sexual assaults,
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riots, and a mass murder that emphasized the unique needs of
[Isla Vista]. There is a clear need for services that create
a safe supportive environment for Isla Vista's residents. As
such, this bill establishes a community services district for
the purposes of providing critical services to community of
Isla Vista."
4)Policy Considerations. The Committee may wish to consider the
following:
a) Circumventing LAFCO. The Legislature has delegated the
power to control local boundaries to the 58 LAFCOs;
directing the LAFCOs to discourage urban sprawl, preserve
open space and agricultural lands, provide efficient
government services, and encourage orderly government while
considering local conditions and circumstances.
The California Association of Local Agency Formation
Commissions states, "The Act provides that LAFCOs have
jurisdiction over a CSD and that the organization or
reorganization of such a district be subject to LAFCO
proceedings. This process allows for the comprehensive
review of the viability of the proposed district and
services to be provided. Bypassing this critical process
jeopardizes the CSD in that there is not thorough analysis
of the long-term sustainability of the financial,
governance, and service capacities of the CSD. We strongly
believe that LAFCO process should not be circumvented and
request the bill be amended to ensure the formation process
complies with the Act."
b) Precedent Setting. This bill conditions the existence
of the District on the passage of a UUT by two-thirds of
the voters in the District. In a letter of concern, CSAC
argues, "Isla Vista CSD would be the first and only special
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district with this type of tax authority. Additional
consideration must be given to this unprecedented expansion
of general tax levying powers and its implications for all
special districts' tax authority and responsibilities."
The Committee may wish to consider, if this is an
appropriate authority to grant to special districts.
c) Tax Burden. UUT is a regressive tax; therefore, the
Committee may wish to consider,
if the reliance on the passage of a UUT to prevent the
District from being dissolved is appropriate. Since a UUT
is imposed on the consumption of utility services and
collected on utility bills, residents in the District,
comprised mainly of student renters, will produce the
revenue for the District. Voters in the District may be
more likely to support a parcel tax, which is collected via
the property tax bill, instead of a UUT. The Committee may
wish to consider, if this bill and the reliance on a UUT
lets property owners off the hook.
d) Board. This Committee has heard several bills for
individual CSDs that are unable to maintain a five-member
governing board. The Committee may wish to consider, given
the large population of students, if there will be enough
registered voters to sustain a five-member Board elected to
four-year terms. Additionally, since the initial Board
does not have staggered terms, there will be no continuity
from the first Board to the next Board.
This bill exempts the Board from many provisions of CSD Law
that establish general requirements like when a CSD
governing board must meet and elect officers, holding
meetings pursuant to the Ralph M. Brown Act, what
constitutes a quorum, referendum and recall provisions, and
board compensation. The Committee may wish to encourage
the author to be more specific about the provisions in
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existing law that this bill notwithstands to ensure that
the Board is accountable and can function under the
direction of its enabling Act.
In the board membership defined by this bill, the UCSB
Chancellor would appoint a director. CSAC argues, "This
breaks new ground for special district governance and could
break down the line of accountability to the community
served by the proposed district".
e) Powers. The Committee may wish to ask the author to
further define some of the services granted to the
District. For example, the Committee may wish to ask the
author what tenant mediation services are intended for the
District to provide.
5)Arguments in Support. Santa Barbara County Supervisors argue
that "County government is not designed nor does it have tools
readily available to finance and manage large, densely
populated urban areas. Santa Barbara County is already
spending millions of dollars each year into IV that is not
recovered by the property tax garnered from the area. This
bill allows for the creation of a CSD that will meet the
unique needs of Isla Vista, including additional services
above and beyond what the county can provide."
6)Arguments in Opposition. Opposition argues that the District
should be required to go through the LAFCO process where a
financial feasibility study can be done. Additionally, the
California Taxpayers Association and the Howard Jarvis
Taxpayers Association argue that establishing a completely new
and precedent setting way for CSD's to increase revenue by
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authorizing a UUT is not warranted.
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REGISTERED SUPPORT / OPPOSITION:
Support
Associated Student Government of Santa Barbara City College,
Isla Vista Relationship Committee
Associated Students of the University of California, Santa
Barbara
Central Coast Alliance United for a Sustainable Economy (CAUSE)
Council Member Gregg Hart, City of Santa Barbara
Council Member Cathy Murillo, City of Santa Barbara
Council Member Harwood "Bendy" White, City of Santa Barbara
Mayor Helene Schneider, City of Santa Barbara
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Service Employees International Union, Local 721
Supervisor Doreen Farr, Third District, Santa Barbara County
Supervisor Salud Carbajal, First District, Santa Barbara County
UAW, Local 2865
UAW, Local 5810
Individual letters (68)
Concerns
California Special Districts Association
California State Association of Counties
Santa Barbara Rental Property Association
Opposition
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California Association of Local Agency Formation Commission
(unless amended)
California Special Districts Association, Santa Barbara County
Chapter
California Taxpayers Association
Howard Jarvis Taxpayers Association
Santa Barbara Local Agency Formation Commission (unless amended)
Long-Term Residents of Isla Vista's Neighbors' Group (47)
Individual letters (2)
Analysis Prepared by:Misa Lennox / L. GOV. / (916) 319-3958
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