BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 3|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 3
Author: Williams (D)
Amended: 8/17/15 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 5-2, 7/8/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NOES: Nguyen, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 51-26, 6/3/15 - See last page for vote
SUBJECT: Isla Vista Community Services District
SOURCE: Author
DIGEST: This bill prescribes a formation process, boundaries,
governing body, tax authority, and permissible services for the
Isla Vista Community Services District (IVCSD).
ANALYSIS:
Existing law:
1) Controls, pursuant to the Cortese-Knox-Hertzberg Act, how
local officials change the boundaries of cities and special
districts, and designates a local agency formation
commission in each county to oversee boundary changes.
2) Authorizes a county to create a municipal advisory
committee to advise the board of supervisors and an area
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Page 2
planning commission to carry out the county's land use
planning and development in a designated area.
3) Authorizes, pursuant to the Community Services District
Law, 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.
4) 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.
5) Requires voter approval of special taxes and property
owners' approval of benefit assessments, as required by
Propositions 13, 62, and 218.
6) 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.
7) Allows a county to levy a UUT on the consumption of
electricity, gas, water, sewer, telephone, telegraph and
cable television services in the unincorporated area.
8) Allows a city or county to determine 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.
This bill:
1) Exempts the IVCSD from the formation process established
in Community Services District Law (CSD Law) and provides
that all other provisions of CSD Law apply to the IVCSD upon
its establishment, except as provided in this bill.
2) Requires that the Cortese-Knox-Hertzberg Local Government
Act of 2000 must govern any change of organization or
reorganization of the IVCSD following the establishment of
the IVCSD, except as provided in this bill.
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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.
4) 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.
5) Requires that, at the next countywide election after the
completion of the LAFCO review, the LAFCO must order the
formation of the IVCSD subject to a vote of registered voter
residing within the IVCSD's boundaries.
6) Requires that the IVCSD's boundaries must be contiguous
with the area known as County Service Area No. 31 within
Santa Barbara County.
7) Requires the LAFCO to determine the appropriate rate of
taxation for a UUT, applicable utilities to be taxed, and
which services the district will be initially authorized to
provide.
8) Specifies that the UUT rate must be no lower than 5% and
no higher than 8% of the total cost of an individual's
service charge for the utility being taxed and must only be
applied to electricity, garbage disposal, gas, sewage, or
water services.
9) Requires the IVCSD's board of directors to, within six
months of the passage of a UUT, develop a low-income
exemption to provide tax exemptions to those who would be
disproportionately burdened by the UUT.
10) Requires that the IVCSD must be dissolved voters do not
vote to impose a UUT within the IVCSD on or before January
1, 2023.
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11) Requires the LAFCO to direct the Santa Barbara County
Board of Supervisors to direct county officials to conduct
the necessary elections on behalf of the proposed district
and place the items on the ballot including district
approval, candidates for the IVCSD's board, and the UUT at
the next countywide election, as provided in state law.
12) Requires that the initial UUT imposed by the IVCSD must
only be used to fund the following services and powers of
the district:
a) Finance the operations of municipal advisory
councils.
b) Create a tenant mediation program.
c) Finance the operations of area planning commissions.
d) Exercise the powers of a parking district, in the
same manner as a parking district formed pursuant to the
Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division 18 of the Streets and Highways
Code).
e) Contract with the County of Santa Barbara 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 the
County of Santa Barbara or the Regents of the University
of California within the area of the IVCSD.
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 above the level of service
already provided by either the County of Santa Barbara or
County Service Area 31. The IVCSD shall not acquire,
construct, improve, or maintain any work owned by another
public agency unless that other public agency gives its
written consent.
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h) Abate graffiti.
13) Exempts the IVCSD 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:
a) Four members elected at large from within the IVCSD
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;
b) One member elected at large from within the IVCSD
for a term of two years;
c) One member appointed by the Board of Supervisors for
a term of two years for the first appointment following
the IVCSD's creation and for a term of four years
thereafter; and,
d) One member appointed by the Chancellor of the
University of California, Santa Barbara (UCSB) for a term
of four years.
14) Specifies that there is no limit on the number of terms
any individual may serve on the IVCSD's board of directors
either as an appointed or elected member.
15) Requires that that IVCSD must be formed if a majority of
voters within the District's boundaries vote in favor of the
District.
16) Grants the IVCSD all of the powers that are generally
granted to CSDs pursuant to a specified statute, with the
exception of two statutory provisions relating to park and
recreation facilities and programs.
17) Allows the IVCSD, within its boundaries, to do any of the
following:
a) Create a tenant mediation program;
b) Exercise the powers of a parking district pursuant
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Page 6
to the Parking District Law of 1951;
c) 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;
d) Acquire, construct, improve, and maintain sidewalks,
lighting, gutters, and trees beyond the level of service
provided by either the County of Santa Barbara or County
Service Area 31, except that the IVCSD may not acquire,
construct, improve, or maintain any work owned by another
public agency, unless that other public agency gives its
written consent;
e) Levy a UUT proposed by resolution of the IVCSD's
governing board pursuant to approval by a 2/3 vote in
accordance with Section 2 of Article XIII C of the
California Constitution.
18) Prohibits a UUT imposed by the IVCSD from applying to any
utility provided by a telecommunications service provider.
19) Directs that the IVCSD does not possess, and must not
exercise, the power of eminent domain.
Background
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
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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
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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
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SUPPORT: (Verified8/18/15)
Associated Student Government of Santa Barbara City College
Associated Students of the University of California, Santa
Barbara
Central Coast Alliance United for a Sustainable Economy
City of Goleta
City of Santa Barbara
City of Santa Barbara Mayor Helene Schneider
Isla Vista Relationship Committee
Santa Barbara City Council Member Gregg Hart
Santa Barbara City Council Member Cathy Murillo
Santa Barbara City Council Member Harwood "Bendy" White
Service Employees International Union, Local 721
Santa Barbara Community College District
Santa Barbara County Board of Supervisors
Santa Barbara County Supervisor Doreen Farr
Santa Barbara County Supervisor Salud Carbajal
UAW, Local 2865
UAW, Local 5810
68 individual supporters
OPPOSITION: (Verified8/18/15)
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
Yolo County LAFCO
47 individual opponents
ARGUMENTS IN SUPPORT: Supporters argue recent tragic events
in Isla Vista, including multiple violent sexual assaults,
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riots, and a mass murder make it clear that the community faces
unique challenges that require a new approach to governance.
County government is 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. This bill 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, this
bill will help advance the cause of creating a safe and
supportive environment for Isla Vista's residents.
ARGUMENTS IN OPPOSITION: Opponents note 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. Additionally, the IVCSD would be
the first California special district, of any type, to have the
authority to levy a UUT 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
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Page 10
used for a specific purpose, nearly all UUTs are imposed as
general taxes, which allow revenues to be used for any purpose.
This bill sets a precedent that may invite other special
districts to ask for similar authority to levy a UUT.
ASSEMBLY FLOOR: 51-26, 6/3/15
AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,
Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández,
Holden, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina,
Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Travis Allen, Baker, Bigelow, Brough, Chang, Chávez,
Dahle, Beth Gaines, Grove, Hadley, Harper, Irwin, Jones, Kim,
Lackey, Linder, Maienschein, Mathis, Mayes, Melendez,
Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron
NO VOTE RECORDED: Achadjian, Gallagher, Wilk
Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
8/20/15 13:32:04
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