BILL ANALYSIS Ó
AB 3
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(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
3 (Williams)
As Amended September 9, 2015
Majority vote
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|ASSEMBLY: |51-26 |(June 3, 2015) |SENATE: | |(September 11, |
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(vote not available)
Original Committee Reference: L. GOV.
SUMMARY: Establishes the formation process, boundaries,
services, and governing body for the Isla Vista Community
Services District (District).
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The Senate amendments:
1)Require the Santa Barbara County Board of Supervisors (Board
of Supervisors), on or before January 5, 2016, to file a
resolution of application with the Santa Barbara County Local
Agency Formation Commission (Santa Barbara LAFCO), to initiate
a comprehensive review and recommendation of the formation of
the District. Require the Board of Supervisors to pay any
fees associated with the resolution of application.
2)Require Santa Barbara LAFCO to complete the review no later
than 150 days following the receipt of the completed
resolution of application. Prohibit Santa Barbara LAFCO from
having the power to disapprove the resolution of application.
3)Prohibit the resolution of application from being subject to
any protest proceedings.
4)Require Santa Barbara LAFCO to order the formation of the
District subject to a vote of the registered voters residing
within the boundaries of the District.
5)Require Santa Barbara LAFCO to determine the appropriate rate
of taxation for a utility user tax (UUT), applicable utilities
to be taxed, and which services the District will be initially
authorized to provide. Require the rate to be no lower than
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5% and no higher than 8% of the total cost of an individual's
service charge for the utility being taxed.
6)Limit the application of the UUT to electricity, garbage
disposal, gas, sewage, or water services.
7)Change the date the District shall be dissolved, if the voters
do not vote to impose a UUT, from January 1, 2027, to January
1, 2023.
8)Require Santa Barbara LAFCO to direct the 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 the District approval, candidates for the
District's board, and the UUT at the next countywide election.
9)Require the initial UUT imposed by the District to only be
used to fund the following services and powers of the
District:
a) Finance the operations of a municipal advisory council
(MAC) formed pursuant to existing law;
b) Create a tenant mediation program;
c) Finance the operations of an area planning commission
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(APC) formed pursuant to existing law;
d) Exercise the powers of a parking district pursuant to
the 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, as specified;
g) Acquire, construct, improve, and maintain sidewalks,
lighting, gutters, and trees, as specified; and,
h) Abate graffiti.
10)Specify terms for the five members of the District Board
elected at large, as follows:
a) Four members to be elected for terms of four years and
for the first election of the Board, two members to be
elected for a term of two years and two members to be
elected for a term of four years; and,
b) One member to be elected for a term of two years.
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11)Specify for the one member appointed by the Board of
Supervisors to the District Board that the term be two years
for the first appointment following the creation of the
District, and four year terms thereafter.
12)Require the qualification of candidates for the initial Board
of Directors to be conducted pursuant to the Uniform District
Election Law in the Elections Code.
13)Prohibit the District from exercising the power of eminent
domain.
14)Prohibit a UUT from applying to any utility provided by a
telecommunications service provider.
15)Add to the list of powers granted to the District to include
contracting for dedicated zoning enforcement services, as
specified.
16)Authorize the District, following the creation of the
District, to petition Santa Barbara LAFCO to exercise new or
different functions or classes of services as specified.
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FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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
Community Services District (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 LAFCO commissioned a study to examine the
local governance options for the unincorporated area
consisting of Isla Vista and University of California, Santa
Barbara (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."
2)Local Governments Providing Services in Isla Vista. As an
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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. This bill establishes the formation process,
boundaries, services, and governing body for the District.
This bill is author-sponsored.
Senate amendments require the Board of Supervisors to submit
to Santa Barbara LAFCO a resolution of application for the
formation of the District. Under this bill, Santa Barbara
LAFCO would not have the usual power to disapprove the
application. Santa Barbara LAFCO must direct county officials
to place the formation of the District, the initial board
member candidates, and determine the UUT to be placed on the
ballot. Senate amendments also change the boundaries the
District to exclude any property owned by the Regents of the
University of California.
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.
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"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.
"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) Limiting LAFCO Powers. 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.
This bill places several requirements on LAFCO, but does
not allow for the usual formation process to occur. The
Legislature may wish to consider if by prohibiting LAFCO
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from disapproving the application it is taking away one of
the fundamental powers the Legislature has tasked LAFCOs
with.
b) Tax Burden. UUT is a regressive tax; therefore, the
Legislature may wish to consider if the reliance on the
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) University Involvement. Senate amendments revised the
boundaries of the District to remove any property owned by
the Regents of the University of California. On August 31,
2015 the author received a letter from the University of
California, Santa Barbara, stating, "Furthermore, should AB
3 be approved by the State Legislature and a Community
Services District is subsequently approved by the voters of
the proposed District, the University is willing to commit
$200,000 annually to support mutually-agreed upon projects,
programs, and/or services that advance the common goals of
the university and the CSD, either by providing the funds
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for such a projects, programs, and/or services, or by
financing them and providing them directly. This new,
annual commitment is pledged from 2017, if the District is
created, until 2024, at which point this commitment would
be considered for renewal and/or renegotiation."
In light of recent property purchases by the University
within the proposed boundaries, the Legislature may wish to
consider if the noncontiguous boundaries will hinder the
overall goal of improving services within the District.
Additionally, the Legislature may wish to consider if it is
appropriate to maintain the appointment of a District board
member given the changes to the District's boundaries.
e) 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.
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 usual LAFCO formation
process. 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.
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Analysis Prepared by:
Misa Lennox / L. GOV. / (916) 319-3958 FN:
0002377