BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 239|
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UNFINISHED BUSINESS
Bill No: SB 239
Author: Hertzberg (D)
Amended: 9/2/15
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
SENATE FLOOR: 26-12, 6/2/15
AYES: Allen, Beall, Block, Cannella, De León, Galgiani, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara,
Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Nguyen, Pan,
Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Huff,
Moorlach, Morrell, Nielsen, Runner, Stone, Vidak
NO VOTE RECORDED: Glazer, Monning
ASSEMBLY FLOOR: 54-23, 9/08/15 - See last page for vote
SUBJECT: Local services: contracts: fire protection services
SOURCE: California Professional Firefighters
DIGEST: This bill requires a local agency formation commission
(LAFCO) to review a contract or agreement for new or extended
fire service outside of a public agency's jurisdictional
boundaries.
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Page 2
Assembly Amendments:
1)Replace references to a public agency's "service area" with
references to an agency's "jurisdictional boundaries," as
defined.
2)Exempt cooperative agreements entered into by the California
Department of Forestry and Fire Protection (CAL FIRE) and a
city, county, special district, or political subdivision for
the purpose of preventing and suppressing fires, pursuant to
specified statutes, from the definition of a "fire protection
contract."
3)Change the required elements that must be included in an
independent comprehensive fiscal analysis submitted pursuant
to this bill's provisions.
4)Add double-jointing language to avoid chaptering out conflicts
in the event that both this bill and AB 402 (Dodd), which also
amends Section 56133 of the Government Code, are enacted into
law.
ANALYSIS:
Existing law:
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1) Pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act, delegates the Legislature's power to
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:
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a) Is for the exercise of new or extended fire protection
services outside a public agency's jurisdictional
boundaries;
b) Is executed pursuant to specified statutes allowing
local governments and CALFIRE to enter into fire
protection service contracts and agreements; and,
c) Does either of the following:
i) Transfers responsibility for providing services
in more than 25% of the jurisdictional boundaries 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
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Page 5
application, which must be approved by the Director of
Finance.
5) Defines "jurisdictional boundaries" as include the territory
or lands protected pursuant to a fire protection contract
entered into on or before December 31, 2015.
6) Directs that an extension of a fire protection contract
entered into on or before December 31, 2015, that would meet
the definition of a fire protection contract must be deemed a
fire protection contract for the purposes of this bill.
7) Specifies the manner in which a request by a public agency
for commission approval of new or extended services provided
pursuant to a fire protection contract must be initiated and
approved.
8) 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,
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,
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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.
9) 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 ten specified
elements.
10) Requires a public agency to cause to be prepared by
contract an independent comprehensive fiscal analysis that
reviews and documents:
a) The plan for services submitted to the LAFCO by the
public agency.
b) How the costs of the existing service provider compare
to the costs of services provided in service areas with
similar populations and of similar geographic size that
provide a similar level and range of services and make a
reasonable determination of the costs expected to be borne
by the public agency providing new or extended fire
protection services.
c) Any other information and analysis needed to support
the findings that a LAFCO must make to approve services
under a fire protection contract.
11)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
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must process resolutions of application submitted to the
executive officer.
12)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.
13)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.
14)Prohibits a LAFCO from approving an application for approval
of a fire protection reorganization contract unless the LAFCO
makes specified determinations, based on the entire record.
15)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.
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16)Specifies that a fire protection contract is exempt from the
statute that governs LAFCOs' approval of extraterritorial
service contracts.
17)Directs that its provisions must not be construed to abrogate
a public agency's obligations under the Meyers-Milias-Brown
Act.
18)Makes additional technical and conforming changes to the
Cortese-Knox-Hertzberg Act.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Assembly Appropriations Committee:
Unknown increased GF costs to the Department of Forestry
and Fire Protection (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. CAL FIRE currently
has 115 contracts with local agencies for full fire
protection services, and the contracts typically have a
duration of three years. It is likely that all of those
contracts would meet the criteria in the bill requiring
LAFCO approval. For illustrative purposes, if CAL FIRE
incurred additional costs of $10,000 to extend 38 fire
protection contracts in a year through the LAFCO process,
annual administrative costs would be $380,000. It is likely
that CAL FIRE would incur higher costs to assess the
impacts of contracts for larger service areas.
Unknown, potentially significant impact on CAL FIRE fire
protection costs (GF). Currently, CAL FIRE provides over
$50 million in contracted reimbursements to counties for
fire protection services in "state responsibility areas,"
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and the state is provided with over $300 million in
contracted reimbursements from local agencies for CAL FIRE
to provide a variety of fire protection services to cities,
counties, and fire protection districts. To the extent this
bill discourages or prevents contracting for fire services,
both CAL FIRE and local agencies could experience increased
costs to provide fire protection.
SUPPORT: (Verified9/8/15)
California Professional Firefighters (Source)
CAL FIRE, Local 2881
California Labor Federation
OPPOSITION: (Verified9/8/15)
Alameda County Local Agency Formation Commission
California Building Industry Association
California Business Properties Association
California Special Districts Association
California State Association of Counties
Cities of Calimesa, Coalinga, Colton, El Centro, Fortuna,
Fremont, Hesperia, Highland, Indio, Lakewood, Montclair, Rancho
Mirage, and Seaside
Contra Costa County
Contra Costa County Local Agency Formation Commission
El Dorado County Local Agency Formation Commission
League of California Cities
Los Angeles County Board of Supervisors
Los Angeles County Division, League of California Cities
Madera County Board of Supervisors
North Tahoe Fire Protection District
Pebble Beach Community Services District
Rural County Representatives of California
San Bernardino County Local Agency Formation Commission (unless
amended)
San Diego Local Agency Formation Commission
San Luis Obispo Local Agency Formation Commission
San Mateo County Local Agency Formation Commission
Santa Cruz Local Agency Formation Commission
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Sausalito-Marin City Sanitary District
Sonoma Local Agency Formation Commission
ARGUMENTS IN SUPPORT: 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. SB 239 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.
ARGUMENTS IN OPPOSITION: Local voters elect county
supervisors, city council members, and special district board
members to make 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
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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, potentially disrupting fire services
and increasing local costs.
ASSEMBLY FLOOR: 54-23, 9/08/15
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, Gray, Roger Hernández, Holden, Irwin,
Jones-Sawyer, Linder, Lopez, Low, Maienschein, McCarty,
Medina, Mullin, Nazarian, O'Donnell, Patterson, Perea, Quirk,
Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth,
Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Dahle,
Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim,
Lackey, Levine, Mathis, Mayes, Melendez, Obernolte, Olsen,
Wagner, Waldron, Wilk
NO VOTE RECORDED: Chang, Chávez, Gordon
Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
9/8/15 20:10:33
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