The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the Board of Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and, upon direction by the commission, place the questions of whether the district should be established and whether a utility user tax should be imposed on the ballot at the next countywide election following the completion of the review by the commission. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the Board of Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and, upon direction by the commission, place the questions of whether the district should be established and whether a utility user tax should be imposed on the ballot at the next countywide election following the completion of the review by the commission. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the Board of Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and, upon direction by the commission, place the questions of whether the district should be established and whether a utility user tax should be imposed on the ballot at the next countywide election following the completion of the review by the commission. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the Board of Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and, upon direction by the commission, place the questions of whether the district should be established and whether a utility user tax should be imposed on the ballot at the next countywide election following the completion of the review by the commission. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the Board of Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and and, upon direction by the commission, place the question questions of whether the district should be established and whether a utility user tax should be imposed on the ballot at the next countywide election following the completion of the review by the commission. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would require the district, if established, to place the question of the imposition of a utility user tax on the ballot, and would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would authorize the establishment of the Isla Vista Community Services District by requiring the board Board of supervisors Supervisors of the County of Santa Barbara to submit a resolution of application to the Santa Barbara County Local Agency Formation Commission, and place the question of whether the district should be established on the ballot at the next countywide election. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would require the district, if established, to place the question of the imposition of a utility user tax on the ballot, and would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2027, 2023, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would establish authorize the establishment of the Isla Vista Community Services District and by requiring the board of supervisors of the County of Santa Barbara to place the question of whether the district should be established on the ballot at the next countywide election. By imposing new duties on the County of Santa Barbara, this bill would impose a state-mandated local program. The bill would require the district, if established, to place the question of the imposition of a utility user tax on the ballot, and would provide that if a utility user tax is not passed by the voters of the district on or before January 1, 2027, the district would be dissolved. The bill would set forth the board of directors of the district and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would establish the Isla Vista Community Services District and would specify the services that district would be authorized to provide, including, among others, the power to create a tenant mediation program and to exercise the powers of a parking district.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Isla Vista Community Services District.

The Community Services District Law authorizes the establishment of community services districts and specifies the powers of those districts including, among others, the power to acquire, construct, improve, maintain, and operate community facilities, as specified. Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

Existing law authorizes the formation of the Isla Vista College Community Services District within the unincorporated area of Santa Barbara County known as Isla Vista for the performance of various services, including, but not limited, to public parks, police protection, and transportation facilities.

This bill would express the intent of the Legislature to clarify and establish the necessary authority for the creation of the Isla Vista Community Services District within the unincorporated area of Santa Barbara County, and would make legislative findings and declarations relating to that intent.

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 3

Author:(Williams)

As Amended Ver:September 9, 2015

Majority vote

(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).

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 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:

   1. Finance the operations of a municipal advisory council (MAC) formed pursuant to existing law;

   2. Create a tenant mediation program;

   3. Finance the operations of an area planning commission (APC) formed pursuant to existing law;

   4. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

   5. 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;

   6. Acquire, construct, improve, maintain, and operate specified community facilities, as specified;

   7. Acquire, construct, improve, and maintain sidewalks, lighting, gutters, and trees, as specified; and,

   8. Abate graffiti.

10. Specify terms for the five members of the District Board elected at large, as follows:

1. 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,

2. One member to be elected for a term of two years.

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.

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 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.

"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:

1. 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 from disapproving the application it is taking away one of the fundamental powers the Legislature has tasked LAFCOs with.

2. 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.

3. 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.

4. 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 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.

5. 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.

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0002377

 THIRD READING  

Bill No: AB 3

Author: Williams (D)

Amended: 9/9/15 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.

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 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 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:

    1. Finance the operations of municipal advisory councils.

    2. Create a tenant mediation program.

    3. Finance the operations of area planning commissions.

    4. 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).

    5. 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.

    6. Acquire, construct, improve, maintain, and operate community facilities, including, but not limited to, community centers, libraries, theaters, museums, cultural facilities, and child care facilities.

    7. 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.

    8. Abate graffiti.

11. 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:

    1. 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;

    2. One member elected at large from within the IVCSD for a term of two years;

    3. 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,

    4. 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:

    1. Create a tenant mediation program;

    2. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

    3. 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;

    4. 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;

    5. 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.

    6. 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.

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 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.: Yes Local: Yes

SUPPORT: (Verified 9/4/15)

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: (Verified 9/4/15)

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, 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

9/10/15 23:15:32

**** END ****

 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.

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 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 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:

    1. Finance the operations of municipal advisory councils.

    2. Create a tenant mediation program.

    3. Finance the operations of area planning commissions.

    4. 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).

    5. 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.

    6. Acquire, construct, improve, maintain, and operate community facilities, including, but not limited to, community centers, libraries, theaters, museums, cultural facilities, and child care facilities.

    7. 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.

    8. Abate graffiti.

11. 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:

    1. 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;

    2. One member elected at large from within the IVCSD for a term of two years;

    3. 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,

    4. 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:

    1. Create a tenant mediation program;

    2. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

    3. 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;

    4. 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;

    5. 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.

    6. 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.

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 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.: Yes Local: Yes

SUPPORT: (Verified 9/4/15)

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: (Verified 9/4/15)

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, 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

**** END ****

 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 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.

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.

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:

1. Finance the operations of municipal advisory councils.

2. Create a tenant mediation program.

3. Finance the operations of area planning commissions.

4. 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).

5. 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.

6. Acquire, construct, improve, maintain, and operate community facilities, including, but not limited to, community centers, libraries, theaters, museums, cultural facilities, and child care facilities.

7. 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.

8. 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:

1. 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;

2. One member elected at large from within the IVCSD for a term of two years;

3. 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,

4. 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:

1. Create a tenant mediation program;

2. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

3. 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;

4. 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;

5. 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 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.: Yes Local: Yes

SUPPORT: (Verified 8/18/15)

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: (Verified 8/18/15)

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, 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 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

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

ISLA VISTA COMMUNITY SERVICES DISTRICT

[REVISED]

Authorizes the creation of the Isla Vista Community Service District.

Background and Existing Law

The Cortese-Knox-Hertzberg Act controls how local officials change the boundaries of cities and special districts, and designates a local agency formation commission (LAFCO) in each county to oversee boundary changes. Besides the more common annexations to cities and special districts, LAFCOs also control district formations, consolidations, and dissolutions, as well as city incorporations, consolidations, and disincorporations. Existing law 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.

The Community Services District Law generally authorizes 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. CSDs are often established to provide services in an unincorporated area as an alternative to incorporation or as a transition into cityhood. Existing law 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. CSD laws also require voter approval of special taxes and property owners' approval of benefit assessments, as required by Propositions 13, 62, and 218. The Legislature originally passed the CSD Law in 1951, re-enacted it in 1955, and reenacted it again in 2005 (SB 135, Kehoe, 2005).

State law 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. Additionally, a county may levy a UUT on the consumption of electricity, gas, water, sewer, telephone, telegraph and cable television services in the unincorporated area. The city or county determines 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.

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 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.

Proposed Law

Assembly Bill 3 prescribes a formation process, boundaries, governing body, tax authority, and permissible services for the Isla Vista Community Services District (IVCSD).

LAFCO review of district formation. Assembly Bill 3 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 the bill.

AB 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.

The bill 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.

Formation election, boundaries, and board membership. Assembly Bill 3 requires that, at the next countywide election after the completion of the LAFCO review, the County Board of Supervisors must place on the ballot:

• The question of whether the District shall be established on the next countywide election ballot after the completion of the LAFCO review.

• The candidates for the five elected positions for the District's initial board of directors (Board).

AB 3 requires that the District’s boundaries must be contiguous with the area known as County Service Area No. 31 within Santa Barbara County.

AB 3 exempts the District 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:

• Four members elected at large from within the District 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;

• One member elected at large from within the District for a term of two years;

• One member appointed by the Board of Supervisors for a term of two years for the first appointment following the District’s creation and for a term of four years thereafter; and,

• One member appointed by the Chancellor of the University of California, Santa Barbara (UCSB) for a term of four years.

The bill specifies that there is no limit on the number of terms any individual may serve on the District’s board of directors either as an appointed or elected member.

If a majority of voters within the District’s boundaries, as established by AB 3, vote in favor of the District, then the District must be formed.

Utility user taxes. Assembly Bill 3 requires that, if the District is formed, the Board must place a utility user tax (UUT) on the ballot, pursuant to approval by a two-thirds vote in accordance with Section 2 of Article XIII C of the California Constitution. The bill requires that the district must be dissolved if District voters do not vote to impose a UUT within the District on or before January 1, 2023.

Services. Assembly Bill 3 allows the District, within its boundaries, to do any of the following:

• Finance the operations of a municipal advisory council (MAC) formed pursuant to existing law, which authorizes any county to establish and provide funds for a MAC for any unincorporated area in the county to advise the board of supervisors;

• Create a tenant mediation program;

• Finance the operations of an area planning commission (APC) formed pursuant to existing law, which authorizes a city or county to create an APC and specifies the functions of APCs;

• Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

• 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;

• Acquire, construct, improve, maintain, and operate community facilities, including, but not limited to, community centers, libraries, theaters, museums, cultural facilities, and child care facilities;

• Acquire, construct, improve, and maintain sidewalks, lighting, gutters, and trees, except that the District may not acquire, construct, improve, or maintain any work owned by another public agency, unless that other public agency gives its written consent;

• Abate graffiti;

• Levy a utility user tax at a rate specified by the governing board of the district pursuant to approval by a 2/3 vote in accordance with Section 2 of Article XIII C of the California Constitution.

AB 3 prohibits the district from having the power to organize, promote, conduct, or advertise programs of community recreation in the same manner as the Isla Vista Recreation and Park District.

The bill directs that the District does not possess, and must not exercise, the power of eminent domain.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. Recent tragic events in Isla Vista, including multiple violent sexual assaults, 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. AB 3 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, AB 3 will help advance the cause of creating a safe and supportive environment for Isla Vista’s residents.

2. Proper role for LAFCO? 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. By specifying several aspects of the IVCSD’s powers and structure in a special statute, AB 3 may also limit LAFCO’s future ability to approve changes to local government organization within Isla Vista. For example, if the IVCSD is successful, local residents may want to expand its boundaries, or allow it to assume additional service responsibilities. Unlike other CSDs, which could accomplish these changes through a local LAFCO process, IVCSD would likely need to seek statutory changes though legislation. The Committee may wish to consider amending AB 3 to allow for the Isla Vista CSD to be subject to a future change of organization, through the Santa Barbara LAFCO without requiring the Legislature to change state law.

3. New UUT precedent. The IVCSD would be the first California special district, of any type, to have the authority to levy a utility user tax 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 used for a specific purpose, nearly all UUTs are imposed as general taxes, which allow revenues to be used for any purpose. AB 3 sets a precedent that may invite other special districts to ask for similar authority to levy a UUT.

4. Deadline. Because the elections to form the district and elect board members are subject to majority-voter approval and the vote to impose a UUT requires 2/3-voter approval, it is conceivable that the IVCSD will be formed, but won’t be able to generate revenues to pay for any services. AB 3 requires that the IVCSD must be dissolved within six years if its voters do not approve levying a UUT within the district. While it makes sense to allow the District more than one opportunity to surpass the difficult 2/3 vote threshold for approving special taxes, six years is a long time for the District to persevere without any revenues to support its activities. The Committee may wish to consider amending AB 3 to shorten the number of years within which the District must get voter approval for a UUT before dissolving.

5. Representation without taxation. AB 3 empowers the Chancellor of the University of California, Santa Barbara to appoint one member to the IVCSD’s governing board. However, the boundaries of the district do not include UCSB’s campus and the university is not subject to taxation, or otherwise required to provide financial support to the district. The Committee may wish to consider why UCSB’s Chancellor should be given an appointment to the IVCSD’s board if the university is neither subject to the district’s governance, nor obligated to provide resources towards the public services that the district’s board members are responsible for administering.

6. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). Assembly Bill 3 contains findings and declarations explaining the need for legislation that applies only to the Isla Vista Community Services District.

7. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because AB 3 imposes additional duties on Santa Barbara County officials related to the IVCSD’s formation process, Legislative Counsel says that it imposes a new state mandate. AB 3 requires the state to reimburse local agencies if the Commission on State Mandates determines that the bill imposes a reimbursable mandate.

Assembly Actions

Assembly Local Government Committee: 6-1

Assembly Appropriations Committee: 13-4

Assembly Floor: 51-26

Support and Opposition

(7/2/15)

Support: Associated Student Government of Santa Barbara City College; Isla Vista Relationship Committee; Associated Students of the University of California, Santa Barbara; Central Coast Alliance United for a Sustainable Economy (CAUSE); Santa Barbara City Council Member Gregg Hart, Cities of Goleta and Santa Barbara; Santa Barbara City Council Member Cathy Murillo; Santa Barbara City Council Member Harwood "Bendy" White; City of Santa Barbara Mayor Helene Schneider; Service Employees International Union, Local 721; Santa Barbara County Supervisor Doreen Farr; Santa Barbara County Supervisor Salud Carbajal; UAW, Local 2865; UAW, Local 5810; 68 individual supporters.

Opposition: 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; 47 individual opponents.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 3

Author:(Williams)

As Amended Ver:May 5, 2015

Majority vote

SUMMARY: Establishes the formation process, boundaries, services, and governing body for the Isla Vista Community Services District (District). Specifically, this bill:

1. Requires the Santa Barbara County Board of Supervisors (Board of Supervisors) to place the question of whether the District shall be established on the next countywide election ballot. Requires, if a majority of voters within the District boundaries established by this bill vote in favor of the District, that the District be formed in accordance with this bill.

2. Exempts the District from the formation process established in Community Services District Law (CSD Law) and provides that all other provisions of CSD Law apply to the District upon its establishment, except as provided in this bill.

3. Requires the Board of Supervisors to also place the candidates for the five elected positions for the District's initial board of directors (Board) on the ballot at the next countywide election.

4. Requires the Board, if the District is formed pursuant to 1) above, to place a utility user tax (UUT) on the ballot, pursuant to a two-thirds voter approval, in accordance with California Constitution Article XIII C, Section 2.

5. Provides that the District is dissolved, if the voters of the District do not vote to impose a UUT within the District on or before January 1, 2027.

6. Exempts the District from provisions of CSD Law, which govern the establishment of a board of directors, and instead, requires the Board to be composed as follows:

1. Five members elected at large from with the District for a term of four years;

2. One member appointed by the Board of Supervisors for a term of four years; and,

3. One member appointed by the Chancellor of the University of California, Santa Barbara (UCSB) for a term of four years.

7. Requires the boundaries of the District to be contiguous with the area known as the County Service Area No. 31 (CSA 31) within Santa Barbara County (County) and requires the District's boundaries to additionally include UCSB.

8. Provides that the services specified in CSD Law do not apply to the District. Authorizes the District, within its boundaries, to do any of the following:

1. Finance the operations of a municipal advisory council (MAC) formed pursuant to existing law which authorizes any county to establish and provide funds for a MAC for any unincorporated area in the county to advise the board of supervisors;

2. Create a tenant mediation program;

3. Finance the operations of an area planning commission (APC) formed pursuant to existing law which authorizes a city or county to create an APC and specifies the functions of APCs;

4. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

5. 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;

6. Acquire, construct, improve, maintain, and operate specified community facilities;

7. Acquire, construct, improve, and maintain sidewalks, lighting, gutters, and trees, as specified; and,

8. Abate graffiti.

9. Prohibits the District from having the power to organize, promote, conduct, or advertise programs of community recreation in the same manner as the Isla Vista Parks and Recreation District.

10. Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies for those costs shall be made.

11. Makes findings and declarations that a special law is necessary and that a general law cannot be made applicable because of the unique community needs in the Isla Vista area that would be served by the District.

FISCAL EFFECT: According to the Assembly Appropriations Committee, one-time potentially reimbursable County costs, likely less than $150,000, to place the district formation question, and the candidates for the initial board of directors, on the countywide ballot.

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 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 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."

In November of 2014 the UC Santa Barbara Foundation Trustees' Advisory Committee on Isla Vista Strategies released a report detailing problems and specific recommendations. The report notes that "Isla Vista has been studied exhaustively for 45 years with at least nine formal reports by government agencies, grand juries, and the University of California. All reports reached the same conclusions, decade after decade:" The report contains the following conclusions:

1. No government body is fully in charge.

2. Housing, zoning, safety, and parking ordinances are inadequately enforced.

3. An unhealthy balance exists among resident college students, families, and other adults.

4. Expensive, substandard housing is often overcrowded.

5. An insufficient number of businesses are present to make a real community.

6. Current policing is often contentious and confrontational.

7. A party culture has resulted in irresponsible and destructive behavior.

8. Criminal activity is a major issue and concern.

9. Proposed solutions are rarely implemented.

New 21st century issues affect Isla Vista as well:

1. An extremely low housing vacancy rate (less than 1%) exists in expensive Santa Barbara County.

2. Isla Vista's population has increased to 23,000, creating an acute densification of the community.

3. A large influx of Santa Barbara City College students now reside in Isla Vista.

4. Widespread use of social media attracts thousands of non-residents.

2. Local Governments Providing Services in Isla Vista. As an 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. The Community Services District Law is a principal act that governs the 312 CSDs in California. The Legislature originally passed the CSD Law in 1951, and re-enacted it in 1955 and 2005. As a special district, CSDs are subject to Local Agency Formation Commission (LAFCO) jurisdiction and are subject to the proceedings contained in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. This bill is author-sponsored.

Formation and Boundaries. This bill exempts the district from the formation process defined under current law for CSDs, which would have required Santa Barbara LAFCO to approve the District's formation. Instead, this bill requires the Santa Barbara County Board of Supervisors to place the question of formation on the next countywide election ballot. A majority of voters in the District, who are registered voters within the District's boundaries established by this bill, must support District formation. Additionally, this bill requires the Board of Supervisors to place the initial board member candidates on the same countywide election ballot. This bill establishes the boundaries of the District to be the same area as CSA 31 and also includes UCSB.

Board of Directors. Current law requires that CSDs are governed by five-member Board of Directors that are elected by resident voters to four-year terms. Directors can be elected at large or by divisions. This bill exempts the District from the provisions in CSD Law which govern the initial formation of a board of directors, the reorganization of a board of directors, and other provisions which establish requirements for when a board must meet, what constitutes a quorum, and other transparency and accountability requirements.

This bill specifies a seven-member board of directors for the District, which include five members elected at large by registered voters in the District, one member appointed by the Board of Supervisors, and one member appointed by the UCSB Chancellor. All of the board members, whether elected or appointed, will serve a term of four years.

Services. CSD Law specifies up to 32 different services, including water, fire protection, public recreation, street lights, police protection, library, street, and transportation services that can be provided by a CSD. Following formation, a CSD Board of Directors must receive approval from LAFCO to exercise any latent power. The Cortese-Knox-Hertzberg Act establishes the process to activate a latent power, including passing a resolution by the Board, holding a public hearing, and submitting a petition to LAFCO which includes a plan for services and the estimated cost of the new service. A district's plan for services must demonstrate that a district will have sufficient revenue to carry out new services. LAFCO cannot authorize the exercise of a latent power, if they determine that another local agency provides substantially similar services.

This bill provides that the services specified in CSD Law do not apply to the District, and instead, establishes a number of powers for the District, including a tenant mediation program, parking district services, and the ability to finance a MAC and APC.

Financing. Current law authorizes a CSD to receive a portion of property tax revenue, establish rates for services and facilities, and levy special taxes, benefit assessments, property-related fees, and standby charges. In addition to these revenue generating powers, this bill also authorizes the District to levy a UUT, at a rate specified by the District's Board, with two-thirds voter approval. This bill requires the District's Board to place a UUT measure on the ballot and makes the District contingent on its passage. If the UUT measure is not passed by the voters on or before January 1, 2027, then the District is dissolved.

Under current law, a city may impose a UUT on the consumption of utility services, including, but not limited to, electricity, gas, water, sewer, telephone, sanitation and cable television. Additionally, a county may levy a UUT on the consumption of electricity, gas, water, sewer, telephone, telegraph and cable television services in the unincorporated area. The city or county determines 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. In California, 153 cities and four counties impose a UUT on electricity.

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.

"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:

1. Circumventing LAFCO. 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.

The California Association of Local Agency Formation Commissions states, "The Act provides that LAFCOs have jurisdiction over a CSD and that the organization or reorganization of such a district be subject to LAFCO proceedings. This process allows for the comprehensive review of the viability of the proposed district and services to be provided. Bypassing this critical process jeopardizes the CSD in that there is not thorough analysis of the long-term sustainability of the financial, governance, and service capacities of the CSD. We strongly believe that LAFCO process should not be circumvented and request the bill be amended to ensure the formation process complies with the Act."

2. 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.

3. 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.

4. 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. Additionally, since the initial Board does not have staggered terms, there will be no continuity from the first Board to the next Board.

This bill exempts the Board from many provisions of CSD Law that establish general requirements like when a CSD governing board must meet and elect officers, holding meetings pursuant to the Ralph M. Brown Act, what constitutes a quorum, referendum and recall provisions, and board compensation. The Legislature may wish to encourage the author to be more specific about the provisions in existing law that this bill not withstands to ensure that the Board is accountable and can function under the direction of its enabling Act.

5. Powers. The Legislature may wish to ask the author to further define some of the services granted to the District. For example, the Legislature may wish to ask the author what tenant mediation services are intended for the District to provide.

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 LAFCO process where a financial feasibility study can be done. 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.

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0000530

Date of Hearing: May 27, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 3

Author:(Williams) – As Amended Ver:May 5, 2015

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill establishes the formation process, boundaries, services, and governing body for the Isla Vista Community Services District (District). Specifically, this bill:

1. Requires the Santa Barbara County Board of Supervisors (Board of Supervisors) to place the question of whether the District shall be established on the next countywide election ballot.

2. Requires the Board of Supervisors to also place the candidates for the five elected positions for the District's initial board of directors (Board) on the ballot at the next countywide election.

3. Requires the Board, if the District is formed pursuant to 1) above, to place a utility user tax (UUT) on the ballot, pursuant to a two-thirds voter approval.

4. Provides that the District is dissolved, if the voters of the District do not vote to impose a UUT within the District on or before January 1, 2027.

5. Requires the boundaries of the District to be contiguous with the area known as the County Service Area No. 31 (CSA 31) within Santa Barbara County (County) and requires the District's boundaries to additionally include UCSB.

FISCAL EFFECT:

One-time potentially reimbursable County costs, likely less than $150,000, to place the district formation question, and the candidates for the initial board of directors, on the countywide ballot.

COMMENTS:

1. Purpose. 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.

"The current conditions in Isla Vista have reached a breaking point. County government is not equipped to meet the critical infrastructure and service needs of such a large and densely populated population. 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.”

2. Background. Isla Vista, located in the unincorporated area of Santa Barbara, has a long history of seeking self governance. There have been three separate cityhood efforts in 1972, 1975, and 1983, and a failed effort to include Isla Vista in the City of Goleta's incorporation; 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.

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."

In November of 2014, the UC Santa Barbara Foundation Trustees' Advisory Committee on Isla Vista Strategies released a report detailing problems and specific recommendations. The report notes that "Isla Vista has been studied exhaustively for 45 years with at least nine formal reports by government agencies, grand juries, and the University of California. All reports reached the same conclusions, decade after decade.

3. 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 [Isla Vista] 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."

4. Arguments in Opposition. LAFCO argues that the District should be required to go through the LAFCO process where a financial feasibility study can be done. 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.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: May 13, 2015

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Brian Maienschein, Chair

ABPCA Bill Id:AB 3 (

Author:Williams) – As Amended Ver:May 5, 2015

SUBJECT: Isla Vista Community Services District.

SUMMARY: Establishes the formation process, boundaries, services, and governing body for the Isla Vista Community Services District (District). Specifically, this bill:

1. Requires the Santa Barbara County Board of Supervisors (Board of Supervisors) to place the question of whether the District shall be established on the next countywide election ballot. Requires, if a majority of voters within the District boundaries established by this bill vote in favor of the District, that the District be formed in accordance with this bill.

2. Exempts the District from the formation process established in Community Services District Law (CSD Law) and provides that all other provisions of CSD Law apply to the District upon its establishment, except as provided in this bill.

3. Requires the Board of Supervisors to also place the candidates for the five elected positions for the District's initial board of directors (Board) on the ballot at the next countywide election.

4. Requires the Board, if the District is formed pursuant to 1), above, to place a utility user tax (UUT) on the ballot, pursuant to a two-thirds voter approval, in accordance with Section 2 of Article XIII C of the California Constitution.

5. Provides that the District is dissolved, if the voters of the District do not vote to impose a Utility User's Tax (UUT) within the District on or before January 1, 2027.

6. Exempts the District from provisions of CSD Law, which govern the establishment of a board of directors, and instead, requires the Board to be composed as follows:

1. Five members elected at large from with the District for a term of four years;

2. One member appointed by the Board of Supervisors for a term of four years; and,

3. One member appointed by the Chancellor of the University of California, Santa Barbara (UCSB) for a term of four years.

7. Requires the boundaries of the District to be contiguous with the area known as the County Service Area No. 31 (CSA 31) within Santa Barbara County (County) and requires the District's boundaries to additionally include UCSB.

8. Provides that the services specified in CSD Law do not apply to the District. Authorizes the District, within its boundaries, to do any of the following:

1. Finance the operations of a municipal advisory council (MAC) formed pursuant to existing law which authorizes any county to establish and provide funds for a MAC for any unincorporated area in the county to advise the board of supervisors;

2. Create a tenant mediation program;

3. Finance the operations of an area planning commission (APC) formed pursuant to existing law which authorizes a city or county to create an APC and specifies the functions of APCs;

4. Exercise the powers of a parking district pursuant to the Parking District Law of 1951;

5. 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;

6. Acquire, construct, improve, maintain, and operate community facilities, including, but not limited to, community centers, libraries, theaters, museums, cultural facilities, and child care facilities;

7. Acquire, construct, improve, and maintain sidewalks, lighting, gutters, and trees. Prohibits the District from acquiring, constructing, improving, or maintaining any work owned by another public agency, unless that other public agency gives its written consent; and,

8. Abate graffiti.

9. Prohibits the District from having the power to organize, promote, conduct, or advertise programs of community recreation in the same manner as the Isla Vista Parks and Recreation District.

10. Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to current law governing state mandated local costs.

11. Makes findings and declarations that a special law is necessary and that a general law cannot be made applicable within the meaning provided in existing law because of the unique community needs in the Isla Vista area that would be served by the Isla Vista Community Services District.

FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.

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 CSD, however, the authority granted by the bill 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 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."

In November of 2014 the UC Santa Barbara Foundation Trustees' Advisory Committee on Isla Vista Strategies released a report detailing problems and specific recommendations. The report notes that "Isla Vista has been studied exhaustively for 45 years with at least nine formal reports by government agencies, grand juries, and the University of California. All reports reached the same conclusions, decade after decade:" The report contains the following conclusions:

• No government body is fully in charge.

• Housing, zoning, safety, and parking ordinances are inadequately enforced.

• An unhealthy balance exists among resident college students, families, and other adults.

• Expensive, substandard housing is often overcrowded.

• An insufficient number of businesses are present to make a real community.

• Current policing is often contentious and confrontational.

• A party culture has resulted in irresponsible and destructive behavior.

• Criminal activity is a major issue and concern.

• Proposed solutions are rarely implemented.

New 21^st century issues affect Isla Vista as well:

• An extremely low housing vacancy rate (<1%) exists in expensive Santa Barbara County.

• Isla Vista's population has increased to 23,000, creating an acute densification of the community.

• A large influx of Santa Barbara City College students now reside in Isla Vista.

• Widespread use of social media attracts thousands of non-residents.

2. Local Governments Providing Services in Isla Vista. As an 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. The Community Services District Law is a principal act that governs the 312 CSDs in California. The Legislature originally passed the CSD Law in 1951, and re-enacted it in 1955 and 2005. As a special district, CSDs are subject to LAFCO jurisdiction and are subject to the proceedings contained in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.

Formation and Boundaries. This bill exempts the district from the formation process defined under current law for CSDs, which would have required Santa Barbara LAFCO to approve the District's formation. Instead, this bill requires the Santa Barbara County Board of Supervisors to place the question of formation on the next countywide election ballot. A majority of voters in the District, who are registered voters within the District's boundaries established by this bill, must support District formation. Additionally, this bill requires the Board of Supervisors to place the initial board member candidates on the same countywide election ballot. This bill establishes the boundaries of the District to be the same area as
CSA 31 and also includes UCSB.

Board of Directors. Current law requires that CSDs are governed by five-member Board
of Directors that are elected by resident voters to four-year terms. Directors can be elected at large or by divisions. This bill exempts the District from the provisions in CSD Law which govern the initial formation of a board of directors, the reorganization of a board of directors, and other provisions which establish requirements for when a board must meet, what constitutes a quorum, and other transparency and accountability requirements.

This bill specifies a seven-member board of directors for the District, which include five members elected at large by registered voters in the District, one member appointed by the Board of Supervisors, and one member appointed by the UC Santa Barbara Chancellor. All of the board members, whether elected or appointed, will serve a term of four years.

Services. CSD Law specifies up to 32 different services, including water, sewage, flood, hydroelectric power, fire protection, public recreation, street lights, police protection, library, street, and transportation services that can be provided by a CSD. Following formation, a CSD Board of Directors must receive approval from LAFCO to exercise any latent power. The Cortese-Knox-Hertzberg Act establishes the process to activate a latent power, including passing a resolution by the Board, holding a public hearing, and submitting a petition to LAFCO which includes a plan for services and the estimated cost of the new service. A district's plan for services must demonstrate that a district will have sufficient revenue to carry out new services. LAFCO cannot authorize the exercise of a latent power, if they determine that another local agency provides substantially similar services.

This bill provides that the services specified in CSD Law do not apply to the District, and instead, establishes a number of powers for the District, including a tenant mediation program, parking district services, and the ability to finance a MAC and APC.

Financing. Current law authorizes a CSD to receive a portion of property tax revenue, establish rates for services and facilities, and levy special taxes, benefit assessments, property-related fees, and standby charges. In addition to these revenue generating powers, this bill also authorizes the District to levy a UUT, at a rate specified by the District's Board, with two-thirds voter approval. This bill requires the District's Board to place a UUT measure on the ballot and makes the District contingent on its passage. If the UUT measure is not passed by the voters on or before January 1, 2027, then the District is dissolved.

Under current law, a city may impose a UUT on the consumption of utility services, including, but not limited to, electricity, gas, water, sewer, telephone, sanitation and cable television. Additionally, a county may levy a UUT on the consumption of electricity, gas, water, sewer, telephone, telegraph and cable television services in the unincorporated area. The city or county determines 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.
In California, 153 cities and four counties impose a UUT on electricity.

State Mandate. This bill is keyed a state mandate, which means the state could be required to reimburse local agencies and school districts for implementing the bill's provisions, if the Commission on State Mandates determines that the bill contains costs mandated by the state.

This bill is author-sponsored.

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.

"The current conditions in Isla Vista have reached a breaking point. County government is not equipped to meet the critical infrastructure and service needs of such a large and densely populated population. 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. Further, it isn’t likely the County of Santa Barbara will create the necessary structure for self-governance for Isla Vista. Further, it is highly unlikely that the County alone will be able to adequately fund local services, even if it set up a MAC or some other structure.

"At stake is a significant state investment. UCSB represents an investment of billions of dollars on the part of California. The current situation in IV 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.

"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. As such, this bill establishes a community services district for the purposes of providing critical services to community of Isla Vista."

5. Policy Considerations. The Committee may wish to consider the following:

1. Circumventing LAFCO. 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.

The California Association of Local Agency Formation Commissions states, "The Act provides that LAFCOs have jurisdiction over a CSD and that the organization or reorganization of such a district be subject to LAFCO proceedings. This process allows for the comprehensive review of the viability of the proposed district and services to be provided. Bypassing this critical process jeopardizes the CSD in that there is not thorough analysis of the long-term sustainability of the financial, governance, and service capacities of the CSD. We strongly believe that LAFCO process should not be circumvented and request the bill be amended to ensure the formation process complies with the Act."

2. 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 Committee may wish to consider, if this is an appropriate authority to grant to special districts.

3. Tax Burden. UUT is a regressive tax; therefore, the Committee 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 Committee may wish to consider, if this bill and the reliance on a UUT lets property owners off the hook.

4. Board. This Committee has heard several bills for individual CSDs that are unable to maintain a five-member governing board. The Committee 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. Additionally, since the initial Board does not have staggered terms, there will be no continuity from the first Board to the next Board.

This bill exempts the Board from many provisions of CSD Law that establish general requirements like when a CSD governing board must meet and elect officers, holding meetings pursuant to the Ralph M. Brown Act, what constitutes a quorum, referendum and recall provisions, and board compensation. The Committee may wish to encourage the author to be more specific about the provisions in existing law that this bill notwithstands to ensure that the Board is accountable and can function under the direction of its enabling Act.

In the board membership defined by this bill, the UCSB Chancellor would appoint a director. CSAC argues, "This breaks new ground for special district governance and could break down the line of accountability to the community served by the proposed district".

5. Powers. The Committee may wish to ask the author to further define some of the services granted to the District. For example, the Committee may wish to ask the author what tenant mediation services are intended for the District to provide.

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 LAFCO process where a financial feasibility study can be done. 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.

REGISTERED SUPPORT / OPPOSITION:

Support

Associated Student Government of Santa Barbara City College,

Isla Vista Relationship Committee

Associated Students of the University of California, Santa Barbara

Central Coast Alliance United for a Sustainable Economy (CAUSE)

Council Member Gregg Hart, City of Santa Barbara

Council Member Cathy Murillo, City of Santa Barbara

Council Member Harwood "Bendy" White, City of Santa Barbara

Mayor Helene Schneider, City of Santa Barbara

Service Employees International Union, Local 721

Supervisor Doreen Farr, Third District, Santa Barbara County

Supervisor Salud Carbajal, First District, Santa Barbara County

UAW, Local 2865

UAW, Local 5810

Individual letters (68)

Concerns

California Special Districts Association

California State Association of Counties

Santa Barbara Rental Property Association

Opposition

California Association of Local Agency Formation Commission (unless amended)

California Special Districts Association, Santa Barbara County Chapter

California Taxpayers Association

Howard Jarvis Taxpayers Association

Santa Barbara Local Agency Formation Commission (unless amended)

Long-Term Residents of Isla Vista's Neighbors' Group (47)

Individual letters (2)

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958