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