BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
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|Bill No: |AB 3 |Hearing |7/8/15 |
| | |Date: | |
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|Author: |Williams |Tax Levy: |No |
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|Version: |7/1/15 |Fiscal: |Yes |
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|Consultant|Weinberger |
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ISLA VISTA COMMUNITY SERVICES DISTRICT
[REVISED]
Authorizes the creation of the Isla Vista Community Service
District.
Background and Existing Law
The Cortese-Knox-Hertzberg Act controls how local officials
change the boundaries of cities and special districts, and
designates a local agency formation commission (LAFCO) in each
county to oversee boundary changes. Besides the more common
annexations to cities and special districts, LAFCOs also control
district formations, consolidations, and dissolutions, as well
as city incorporations, consolidations, and disincorporations.
Existing law authorizes a county to create a municipal advisory
committee to advise the board of supervisors and an area
planning commission to carry out the county's land use planning
and development in a designated area.
The Community Services District Law generally authorizes the
establishment of Community Services Districts (CSDs) to provide
over 30 types of public services and facilities, and provides
special statutes for the delivery of additional services. CSDs
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are often established to provide services in an unincorporated
area as an alternative to incorporation or as a transition into
cityhood. Existing law provides for the election of CSD
directors, and specifies requirements for open government, such
as adoption of annual budgets, setting up designated reserves,
following the Brown Act, holding regular meetings, and following
standard auditing rules. CSD laws also require voter approval
of special taxes and property owners' approval of benefit
assessments, as required by Propositions 13, 62, and 218. The
Legislature originally passed the CSD Law in 1951, re-enacted it
in 1955, and reenacted it again in 2005 (SB 135, Kehoe, 2005).
State law allows a city to impose a utility user tax (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.
The unincorporated community of 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.
In response to concerns about public safety, inadequate
infrastructure, insufficient land use planning, and a
poorly-maintained housing stock, and other local challenges
there have been a variety of efforts to establish different
local governance structures in Isla Vista. A municipal advisory
council was formed and later dissolved due to lack of funding.
SB 921 (Lagomarsino), Chapter 1420, Statutes of 1972, allowed
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Isla Vista to form a CSD, however, the authority granted by SB
921 was never used. Proposals to incorporate Isla Vista as a
city or annex it to adjacent cities have met substantial local
opposition. 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."
A report issued in November 2014 by the UC Santa Barbara
Foundation Trustees' Advisory Committee on Isla Vista Strategies
identified the goal of developing a form of self-governance for
Isla Vista that will provide the necessary infrastructure and
services, and promote the safety and well-being of its
residents. To achieve this goal, the advisory committee
recommended the creation of a community services district or
municipal services district, with specified powers. In response
to the challenges confronting the Isla Vista and the recent
recommendations for improved self-governance structures, some
community stakeholders want the Legislature to create a
community services district with a formation process, governing
board structure, and authorized powers that are uniquely
tailored to Isla Vista's needs.
Proposed Law
Assembly Bill 3 prescribes a formation process, boundaries,
governing body, tax authority, and permissible services for the
Isla Vista Community Services District (IVCSD).
LAFCO review of district formation . Assembly Bill 3 exempts the
IVCSD from the formation process established in Community
Services District Law (CSD Law) and provides that all other
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provisions of CSD Law apply to the IVCSD upon its establishment,
except as provided in the bill.
AB 3 requires the Santa Barbara County Board of Supervisors, on
or before January 5, 2016, to file a resolution of application
with the Santa Barbara County Local Agency Formation Commission
(LAFCO), pursuant to a specified statute, to initiate a
comprehensive review and recommendation of the formation of the
district by the LAFCO. The application filed with LAFCO cannot
be subject to any protest proceedings and the Board of
Supervisors must pay any fees associated with the resolution of
application.
The bill requires the LAFCO to complete the review no later than
120 days following receipt of the completed resolution of
application and prohibits the LAFCO from having the power to
disapprove the resolution of application.
Formation election, boundaries, and board membership . Assembly
Bill 3 requires that, at the next countywide election after the
completion of the LAFCO review, the County Board of Supervisors
must place on the ballot:
The question of whether the District shall be
established on the next countywide election ballot after
the completion of the LAFCO review.
The candidates for the five elected positions for the
District's initial board of directors (Board).
AB 3 requires that the District's boundaries must be contiguous
with the area known as County Service Area No. 31 within Santa
Barbara County.
AB 3 exempts the District from provisions of CSD Law, which
govern the establishment of a board of directors, and instead,
requires the seven-member Board to be composed of:
Four members elected at large from within the District
for a term of four years, except that for the first
election two members must be elected for a term of two
years and two members must be elected for a term of four
years;
One member elected at large from within the District for
a term of two years;
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One member appointed by the Board of Supervisors for a
term of two years for the first appointment following the
District's creation and for a term of four years
thereafter; and,
One member appointed by the Chancellor of the University
of California, Santa Barbara (UCSB) for a term of four
years.
The bill specifies that there is no limit on the number of terms
any individual may serve on the District's board of directors
either as an appointed or elected member.
If a majority of voters within the District's boundaries, as
established by AB 3, vote in favor of the District, then the
District must be formed.
Utility user taxes . Assembly Bill 3 requires that, if the
District is formed, the Board must place a utility user tax
(UUT) on the ballot, pursuant to approval by a two-thirds vote
in accordance with Section 2 of Article XIII C of the California
Constitution. The bill requires that the district must be
dissolved if District voters do not vote to impose a UUT within
the District on or before January 1, 2023.
Services . Assembly Bill 3 allows the District, within its
boundaries, to do any of the following:
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;
Create a tenant mediation program;
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;
Exercise the powers of a parking district pursuant to
the Parking District Law of 1951;
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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;
Acquire, construct, improve, maintain, and operate
community facilities, including, but not limited to,
community centers, libraries, theaters, museums, cultural
facilities, and child care facilities;
Acquire, construct, improve, and maintain sidewalks,
lighting, gutters, and trees, except that the District may
not acquire, construct, improve, or maintain any work owned
by another public agency, unless that other public agency
gives its written consent;
Abate graffiti;
Levy a utility user tax at a rate specified by the
governing board of the district pursuant to approval by a
2/3 vote in accordance with Section 2 of Article XIII
C of the California Constitution.
AB 3 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 Recreation and Park
District.
The bill directs that the District does not possess, and must
not exercise, the power of eminent domain.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . Recent tragic events in Isla Vista,
including multiple violent sexual assaults, riots, and a mass
murder make it clear that the community faces unique challenges
that require a new approach to governance. County government is
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not meeting the critical infrastructure and service needs of
such a large and densely populated community. 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. 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. The current
situation in Isla Vista 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. State
legislative action is necessary because the Cities of Santa
Barbara and Goleta are openly opposed to annexing Isla Vista and
the County of Santa Barbara is not likely to create the
necessary structure for self-governance for Isla Vista. AB 3
creates a self-governance mechanism through which local funding
could be generated, to provide an increase in services directly
to Isla Vista. By providing critical service to the community,
AB 3 will help advance the cause of creating a safe and
supportive environment for Isla Vista's residents.
2. Proper role for LAFCO ? The usual LAFCO process for creating
a new special district provides substantial opportunities for
public involvement and allows for a thorough vetting of proposed
district's viability and the services it would provide.
Requiring LAFCO to conduct a review of the IVCSD's proposed
formation in only 120 days without allowing LAFCO to disapprove
the proposal, or impose conditions on the formation may not
allow sufficient public involvement in the District's formation
process. By specifying several aspects of the IVCSD's powers
and structure in a special statute, AB 3 may also limit LAFCO's
future ability to approve changes to local government
organization within Isla Vista. For example, if the IVCSD is
successful, local residents may want to expand its boundaries,
or allow it to assume additional service responsibilities.
Unlike other CSDs, which could accomplish these changes through
a local LAFCO process, IVCSD would likely need to seek statutory
changes though legislation. The Committee may wish to consider
amending AB 3 to allow for the Isla Vista CSD to be subject to a
future change of organization, through the Santa Barbara LAFCO
without requiring the Legislature to change state law.
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3. New UUT precedent . The IVCSD would be the first California
special district, of any type, to have the authority to levy a
utility user tax within its boundaries. State law currently
empowers only counties and cities to impose UUTs, which are
excise taxes imposed on the consumption of utility services,
including electricity, gas, water, sewer, telephone, sanitation,
and cable television. Although a city or county can impose a
UUT as a special tax, generating revenues that must be used for
a specific purpose, nearly all UUTs are imposed as general
taxes, which allow revenues to be used for any purpose. AB 3
sets a precedent that may invite other special districts to ask
for similar authority to levy a UUT.
4. Deadline . Because the elections to form the district and
elect board members are subject to majority-voter approval and
the vote to impose a UUT requires 2/3-voter approval, it is
conceivable that the IVCSD will be formed, but won't be able to
generate revenues to pay for any services. AB 3 requires that
the IVCSD must be dissolved within six years if its voters do
not approve levying a UUT within the district. While it makes
sense to allow the District more than one opportunity to surpass
the difficult 2/3 vote threshold for approving special taxes,
six years is a long time for the District to persevere without
any revenues to support its activities. The Committee may wish
to consider amending AB 3 to shorten the number of years within
which the District must get voter approval for a UUT before
dissolving.
5. Representation without taxation . AB 3 empowers the
Chancellor of the University of California, Santa Barbara to
appoint one member to the IVCSD's governing board. However, the
boundaries of the district do not include UCSB's campus and the
university is not subject to taxation, or otherwise required to
provide financial support to the district. The Committee may
wish to consider why UCSB's Chancellor should be given an
appointment to the IVCSD's board if the university is neither
subject to the district's governance, nor obligated to provide
resources towards the public services that the district's board
members are responsible for administering.
6. Special legislation . The California Constitution prohibits
special legislation when a general law can apply (Article IV,
§16). Assembly Bill 3 contains findings and declarations
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explaining the need for legislation that applies only to the
Isla Vista Community Services District.
7. Mandate . The California Constitution requires the state to
reimburse local governments for the costs of new or expanded
state mandated local programs. Because AB 3 imposes additional
duties on Santa Barbara County officials related to the IVCSD's
formation process, Legislative Counsel says that it imposes a
new state mandate. AB 3 requires the state to reimburse local
agencies if the Commission on State Mandates determines that the
bill imposes a reimbursable mandate.
Assembly Actions
Assembly Local Government Committee: 6-1
Assembly Appropriations Committee: 13-4
Assembly Floor: 51-26
Support and
Opposition (7/2/15)
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); Santa Barbara
City Council Member Gregg Hart, Cities of Goleta and Santa
Barbara; Santa Barbara City Council Member Cathy Murillo; Santa
Barbara City Council Member Harwood "Bendy" White; City of Santa
Barbara Mayor Helene Schneider; Service Employees International
Union, Local 721; Santa Barbara County Supervisor Doreen Farr;
Santa Barbara County Supervisor Salud Carbajal; UAW, Local 2865;
UAW, Local 5810; 68 individual supporters.
Opposition : California Association of Local Agency Formation
Commissions; California Special Districts Association, Santa
Barbara County Chapter; California Taxpayers Association; Goleta
City Council Member Roger Aceves; Goleta City Council Member
Tony Vallejo; Howard Jarvis Taxpayers Association; Nevada
County LAFCO; San Mateo County LAFCO; Santa Barbara County
LAFCO; Santa Barbara Rental Property Association; 47 individual
opponents.
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