BILL ANALYSIS Ó
AB 3
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ASSEMBLY THIRD READING
AB
3 (Williams)
As Amended May 5, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
|Local |6-1 |Gonzalez, Alejo, |Linder |
|Government | |Chiu, Cooley, | |
| | |Gordon, Holden | |
| | | | |
|----------------+------+--------------------+--------------------|
|Appropriations |13-4 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Jones, Wagner |
| | |Eggman, Gallagher, | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Establishes the formation process, boundaries, services,
and governing body for the Isla Vista Community Services District
(District). Specifically, this bill:
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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 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 California
Constitution Article XIII C, Section 2.
5)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.
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;
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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 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
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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
specified community facilities;
g) Acquire, construct, improve, and maintain sidewalks,
lighting, gutters, and trees, as specified; 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 for those costs shall be made.
11)Makes findings and declarations that a special law is necessary
and that a general law cannot be made applicable because of the
unique community needs in the Isla Vista area that would be
served by the District.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, one-time potentially reimbursable County costs, likely
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less than $150,000, to place the district formation question, and
the candidates for the initial board of directors, on the
countywide ballot.
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
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 SB 921 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
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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:
a) No government body is fully in charge.
b) Housing, zoning, safety, and parking ordinances are
inadequately enforced.
c) An unhealthy balance exists among resident college
students, families, and other adults.
d) Expensive, substandard housing is often overcrowded.
e) An insufficient number of businesses are present to make a
real community.
f) Current policing is often contentious and confrontational.
g) A party culture has resulted in irresponsible and
destructive behavior.
h) Criminal activity is a major issue and concern.
i) Proposed solutions are rarely implemented.
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New 21st century issues affect Isla Vista as well:
a) An extremely low housing vacancy rate (less than 1%)
exists in expensive Santa Barbara County.
b) Isla Vista's population has increased to 23,000, creating
an acute densification of the community.
c) A large influx of Santa Barbara City College students now
reside in Isla Vista.
d) Widespread use of social media attracts thousands of
non-residents.
2)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.
3)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
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subject to Local Agency Formation Commission (LAFCO)
jurisdiction and are subject to the proceedings contained in the
Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000. This bill is author-sponsored.
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 UCSB
Chancellor. All of the board members, whether elected or
appointed, will serve a term of four years.
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Services. CSD Law specifies up to 32 different services,
including water, fire 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.
Under current law, a city may impose a UUT on the consumption of
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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.
4)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.
"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,
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. The
current conditions in Isla Vista have reached a breaking point.
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.
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"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."
5)Policy Considerations. The Legislature 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) Tax Burden. UUT is a regressive tax; therefore, the
Legislature may wish to consider, if the reliance on the
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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
Legislature may wish to consider, if this bill and the
reliance on a UUT lets property owners off the hook.
c) 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 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
Legislature may wish to consider, if this is an appropriate
authority to grant to special districts.
d) Board. The Assembly Local Government Committee has heard
several bills for individual CSDs that are unable to maintain
a five-member governing board. The Legislature 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 Legislature may wish to encourage the author to be more
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specific about the provisions in existing law that this bill
not withstands to ensure that the Board is accountable and
can function under the direction of its enabling Act.
e) Powers. The Legislature may wish to ask the author to
further define some of the services granted to the District.
For example, the Legislature may wish to ask the author what
tenant mediation services are intended for the District to
provide.
6)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."
7)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
authorizing a UUT is not warranted.
Analysis Prepared by:
Misa Lennox / L. GOV. / (916) 319-3958 FN:
0000530
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