BILL ANALYSIS Ó AB 3 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 3 (Williams) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Local Government |Vote:|6 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill establishes the formation process, boundaries, services, and governing body for the Isla Vista Community Services District (District). Specifically, this bill: AB 3 Page 2 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. 2)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 countywide election. 3)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. 4)Provides that the District is dissolved, if the voters of the District do not vote to impose a UUT within the District on or before January 1, 2027. 5)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. FISCAL EFFECT: One-time potentially reimbursable County costs, likely less than $150,000, to place the district formation question, and the candidates for the initial board of directors, on the countywide ballot. COMMENTS: AB 3 Page 3 1)Purpose. 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. "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." 2)Background. Isla Vista, located in the unincorporated area of Santa Barbara, has a long history of seeking self governance. There have been three separate cityhood efforts in 1972, 1975, and 1983, and a failed effort to include Isla Vista in the City of Goleta's incorporation; 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. 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 AB 3 Page 4 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. 3)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 [Isla Vista] 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." 4)Arguments in Opposition. LAFCO 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 authorizing a UUT is not warranted. AB 3 Page 5 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081