BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 239|
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THIRD READING
Bill No: SB 239
Author: Hertzberg (D)
Amended: 6/1/15
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 4/29/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Nguyen, Moorlach
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Local services: contracts: fire protection
services
SOURCE: Author
DIGEST: This bill requires a local agency formation commission
(LAFCO) to review a contract or agreement for new or extended
fire service outside of an existing service area.
ANALYSIS:
Existing law:
1) Pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act, delegates the Legislature's power to
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control the boundaries of cities and special districts to
LAFCOs.
2) Requires that cities and districts must get a LAFCO's
written approval before they can serve territory outside
their boundaries (AB 1335, Gotch, Chapter 1307, Statutes of
1993). However, LAFCO approval is not required for contracts
or agreements solely involving two or more public agencies
where the public service to be provided is an alternative to,
or substitute for, public services already being provided by
an existing public service provider and where the level of
service to be provided is consistent with the level of
service contemplated by the exiting service provider.
3) Allows cities and fire protection districts to contract with
a county to provide fire protection services within the local
agency's jurisdiction.
4) Allows local governments to contract with the California
Department of Forestry and Fire Protection (CAL FIRE) to
provide fire protection services.
This bill:
1) Requires a public agency to obtain a LAFCO's approval to
provide new or extended services under a fire protection
contract, pursuant to a specified approval process.
2) Defines a "fire protection contract" as a contract or
agreement that:
a) Is for the exercise of new or extended fire protection
services outside a public agency's current service area;
b) Is executed pursuant to specified statutes allowing
local governments and CALFIRE to enter into fire
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protection service contracts and agreements; and,
c) Does either of the following:
i) Transfers responsibility for providing services
in more than 25% of the service area of any public
agency affected by the contract or agreement.
ii) Changes the employment status of more than
25% of the employees of any public agency affected by
the contract or agreement.
3) Applies the definition of a fire protection contract to a
contract or agreement that, in combination with other
contracts or agreements, meets the bill's definition of a
fire protection contract.
4) Requires a public agency to initiate a request for LAFCO
approval of services provided under a fire protection
contract by adopting a resolution of application as follows:
a) The legislative body of a public agency that is not a
state agency must adopt a resolution of application
proposing to provide new or extended services outside the
public agency's current service area.
b) The director of a state agency must initiate an
application, which must be approved by the Director of
Finance.
5) Requires that the legislative body of a public agency or the
director of a state agency must do all of the following
before submitting a resolution of application to the LAFCO:
a) Conduct an open and public hearing on the resolution,
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and
b) Do either of the following:
i) Obtain and submit with the resolution a written
agreement validated and executed by each affected
public agency and recognized employee organization that
represents firefighters of the existing and proposed
service providers consenting to the proposed change of
organization.
ii) At least 30 days before the public hearing,
provide written notice to each affected public agency
and recognized employee organization that represents
firefighters of the existing and proposed service
providers of the proposed fire protection contract and
submit a copy of each written notice with the
resolution of application. The notice must include a
full copy of the proposed contract.
6) Requires that a proposal for a change of organization must be
submitted with a plan prepared pursuant to specified
statutory requirements. The plan must include:
a) A total cost estimate for providing new or extended
services.
b) The estimated cost of the new or extended services to
customers.
c) An identification of existing service providers and the
potential fiscal impact to the customers of those existing
providers.
d) A plan for financing the exercise of the new or
extended services.
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e) Alternatives for the exercise of the new or extended
services.
f) An enumeration and description of the new or extended
fire protection services proposed to be extended to the
affected territory.
g) The level and range of new or extended fire protection
services.
h) An indication of when the new or extended fire
protection services can feasibly be extended to the
affected territory.
i) An indication of any improvements or upgrades to
structures, roads, sewer, and water facilities, or other
conditions the public agency would impose or require
within the affected territory of the fire protection
contract is completed.
7) Requires a public agency to cause to be prepared by contract
an independent comprehensive fiscal analysis that reviews and
documents:
a) The costs to the public agency that has proposed to
provide new or extended services during the three fiscal
years following a public agency entering into a contract
to provide new or extended services outside its current
service area by contract or agreement, in accordance with
specified requirements.
b) The revenues of the public agency that has proposed a
new or extended service outside its current service area
during the three fiscal years following the effective date
of a contract or agreement with another public agency to
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provide a new or extended service.
c) The effects on the costs and revenues of any affected
public agency, including the public agency proposing to
provide the new or extended service, during the three
fiscal years that the new or extended service will be
provided.
d) Any other information and analysis needed to support
the findings that a LAFCO must make to approve services
under a fire protection contract.
8) Requires the clerk of the legislative body of a public agency
or the director of a state agency adopting a resolution of
application to file a certified copy of the resolution with
the LAFCO executive officer. This bill specifies how a LAFCO
must process resolutions of application submitted to the
executive officer.
9) Requires a LAFCO to review and approve, disapprove, or
approve with conditions a fire protection reorganization
contract after a public hearing called and held for that
purpose. This bill allows an applicant to request
reconsideration if a contract is disapproved or approved with
conditions.
10)Generally prohibits a LAFCO from approving an application
unless the LAFCO determines that the public agency will have
sufficient revenues to carry out the exercise of the new or
extended services outside its current area. However, if the
LAFCO has determined that the public agency will not have
sufficient revenue to provide the proposed new or different
functions or class of services, this bill allows a LAFCO to
approve an application if the LAFCO conditions its approval
on the concurrent approval of sufficient revenue sources
pursuant to state law. In approving an application, the
LAFCO must provide that if the revenue sources are not
approved, the public agency's authority to provide new or
extended services must not be exercised.
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11)Prohibits a LAFCO from approving an application for approval
of a fire protection reorganization contract unless the LAFCO
makes specified findings, based on the entire record.
12)Specifies the manner in which a LAFCO executive officer must
provide public notice by mail, in a newspaper, and on the
Internet, of a hearing to review an application for approval
of a fire protection contract. This bill allows a LAFCO to
continue a hearing and requires that a LAFCO must hear and
consider oral or written testimony presented by any affected
local agency, affected county, or any interested person who
appears at the hearing.
13)Specifies that a fire protection contract is exempt from the
statute that governs LAFCOs' approval of extraterritorial
service contracts.
14)Directs that its provisions must not be construed to abrogate
a public agency's obligations under the Meyers-Milias-Brown
Act.
15)Makes additional technical and conforming changes to the
Cortese-Knox-Hertzberg Act.
Background
Some of contracts and cooperative agreements for fire protection
services result in a local department shifting all
responsibility for providing fire protections services to a
county or CAL FIRE, while others supplement existing local fire
services with additional services provided by a county or CAL
FIRE. However, because these contracts and agreements solely
involve public agencies and existing services, they are not
subject to LAFCO approval.
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In some communities that recently entered into contracts or
agreements that shifted the responsibility for providing fire
protection services from one public agency to another, the
agreements have generated controversy while failing to produce
anticipated cost savings and administrative efficiencies. As a
result, firefighters' labor union officials want the Legislature
to require LAFCOs to give fire protection service contracts and
agreements more scrutiny than is required under current law.
Comments
Purpose of the bill. When a contract or agreement between two
public agencies makes substantial changes to the administration
of fire protection services in a community, it deserves to be
scrutinized by LAFCO in a manner that is similar to how a
detachment and annexation of fire protection services would be
scrutinized under current law. When the Legislature enacted the
1993 Gotch bill requiring LAFCO review of some extraterritorial
service contracts, it did so in response to concerns that local
governments were using service contracts to circumvent LAFCO
review of major changes to local service delivery. However, the
review requirement for extraterritorial service contracts
contained a substantial loophole for contracts that only
involved public agencies. This bill will narrow that loophole.
Some recent fire protection service contracts between public
agencies have resulted in costly litigation and generated deep
divisions among community members. Other agreements have been
jeopardized by public officials' reliance on financial data that
later was determined to be inaccurate. Problems like these can
be avoided by providing more opportunities for the public to
review and consider independent analyses of proposed changes to
fire service delivery in their communities. By requiring a
public agency to submit a plan for extended services for fire
protection to LAFCO for review and approval, this bill will
ensure that the details of service delivery and costs are
thoroughly and independently examined, which will benefit the
residents, the public agency and the firefighters in all of the
affected areas.
Local control. Local voters elect county supervisors, city
council members, and special district board members to make
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public policy in response to local needs. Local elected
officials strive to provide their communities' residents with
the best services at the most reasonable cost. They have to
answer to residents who are displeased with the quality and cost
of their services. As a result, a decision to enter into a
contract with another public agency to provide fire protection
services is a decision that elected officials make only after
considering the fiscal, administrative, and service delivery
implications for their communities. By requiring LAFCO review
of fire protection reorganization contracts, this bill
diminishes local officials' autonomy to contract for fire
protection services in the manner that they determine will best
serve their constituents.
Next in line? Fire protection services aren't the only kind of
public service that local agencies provide outside of their
boundaries pursuant to contracts with other public agencies.
Local agencies commonly contract for law enforcement services,
utility services, and park and recreation services, among
others. Enacting this bill may invite requests from other
interest groups for LAFCOs to more carefully scrutinize other
types of contracts for services provided outside of existing
service areas.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
Unknown increased General Fund costs to the CAL FIRE,
likely in the low hundreds of thousands annually, to comply
with specified administrative requirements prior to
contracting with local agencies for fire protection
services.
Unknown, potentially significant impact on CAL FIRE fire
protection costs (General Fund).
SUPPORT: (Verified5/29/15)
California Professional Firefighters
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CALFIRE Local 2881
California Labor Federation
OPPOSITION: (Verified5/29/15)
Alameda County LAFCO
Apple Valley Fire Protection District
Bonita-Sunnyside Fire Protection District
California Association of LAFCOs
California Ambulance Association
California Building Industry Association
California Special Districts Association
California State Association of Counties
Chino Valley Fire District
Contra Costa County LAFCO
Covelo Fire Protection District
Happy Valley Fire Protection District
Hesperia Recreation & Park District
Fire Districts Association of California
Fresno County Fire Protection District
Hesperia Recreation and Park District
League of California Cities
Los Angeles County LAFCO
Madera County Board of Supervisors
Monterey County Business Council
Monterey County LAFCO
Monterey County Regional Fire District
Nevada County LAFCO
North County Fire Protection District
North Tahoe Fire Protection District
Orange County LAFCO
Riverside County LAFCO
Running Springs Water District
Rural County Representatives of California
San Diego County LAFCO
San Luis Obispo County LAFCO
San Mateo County LAFCO
Santa Cruz County LAFCO
Saratoga Fire District
Shasta Lake Fire Protection District
Squaw Valley Public Service District
Tuolumne Fire District
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Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
6/1/15 18:23:26
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