BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                          AB 3|
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                                   THIRD READING 


          Bill No:  AB 3
          Author:   Williams (D)
          Amended:  9/4/15 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).




          Senate Floor Amendments of 9/4/15 make numerous changes to the  
          bill's provisions authorizing the formation of the IVCSD,  
          including:  exempting specified properties from the IVCSD's  
          boundaries, allowing the district to contract for code  
          enforcement services, increasing the time allowed for review by  
          the Santa Barbara County Local Agency Formation Commission  
          (LAFCO), and modifying the types of functions or services that  
          IVCSD can perform when it is established. 









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          ANALYSIS:   


          Existing law:


           1) Controls, pursuant to the Cortese-Knox-Hertzberg Local  
             Government Reorganization Act of 2000, 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 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  








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             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 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.


           3) Requires the LAFCO to complete the review no later than 150  
             days following receipt of the completed resolution of  
             application and prohibits the LAFCO from having the power to  
             disapprove the resolution of application.


           4) Requires that, at the next countywide election after the  
             completion of the LAFCO review, the LAFCO must order the  








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             formation of the IVCSD subject to a vote of registered voter  
             residing within the IVCSD's boundaries. 


           5) Requires that the IVCSD's boundaries must be contiguous with  
             the area known as County Service Area No. 31 within Santa  
             Barbara County.


           6) 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.


           7) 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.


           8) Requires that the IVCSD must be dissolved voters do not vote  
             to impose a UUT within the IVCSD on or before January 1,  
             2023.


           9) 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.


           10)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.









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              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 to supplement 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 to supplement 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.


              h)    Abate graffiti.


           11)Exempts the IVCSD from provisions of CSD Law, which govern  
             the establishment of a board of directors, and instead,  








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             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.


           12)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.


           13)Requires that that IVCSD must be formed if a majority of  
             voters within the District's boundaries vote in favor of the  
             District.


           14)Allows the IVCSD, within its boundaries, to do any of the  
             following:


              a)    Create a tenant mediation program;










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              b)    Exercise the powers of a parking district pursuant 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 to supplement 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 to supplement 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.


              f)    Contract with the County of Santa Barbara, the Santa  
                Barbara County Department of Planning and Development's  
                Code Enforcement Program, or both, to provide  
                supplementary code enforcement services, which may include  
                contracting for zoning enforcement services or building  
                enforcement services, as specified.


           15)Specifies the manner in which the IVCSD may petition the  
             county LAFCO to exercise new or different functions or  
             classes of services in addition to those that were authorized  
             when the IVCSD was created.


           16)Prohibits services provided by the IVCSD from supplanting  
             the level of services provided by any other service provider.








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           17)Prohibits a UUT imposed by the IVCSD from applying to any  
             utility provided by a telecommunications service provider.


           18)Directs that the IVCSD does not possess, and must not  
             exercise, the power of eminent domain.


           19)Specifies that the Cortese-Knox-Hertzberg Local Government  
             Reorganization Act of 2000 does not apply to the IVCSD's  
             formation or to the selection of specified functions or  
             services upon IVCSD's establishment.  


           20)Directs that the Act does apply to any other change or  
             organization or reorganization following the IVCSD's  
             establishment.


          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  
          infrastructure, insufficient land use planning, and a  
          poorly-maintained housing stock, and other local challenges  








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          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:   (Verified9/4/15)

          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 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:   (Verified9/4/15)


          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

          ASSEMBLY FLOOR:  51-26, 6/3/15
          AYES:  Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  








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            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
          9/9/15 10:05:23


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