SB 239: Local services: contracts: fire protection services.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-10-10
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would, with certain exceptions, permit a public agency to exercise new or extended services outside the public agencys jurisdictional boundaries pursuant to a fire protection contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, that a proposal by a state agency be initiated by the director of the agency with the approval of the Director of Finance, and that a proposal by a local agency that is currently under contract for the provision of fire protection services be initiated by the local agency and approved by the Director of Finance. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended services pursuant to a fire protection contract with, or provide written notice of a proposed fire protection contract to, each affected public agency and recognized employee organization representing firefighters in the affected area, and to conduct a public hearing on the resolution.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
This bill would incorporate additional changes to Section 56133 of the Government Code proposed by AB 402 that would become operative if this bill and AB 402 are both enacted and this bill is enacted last.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would, with certain exceptions, permit a public agency to exercise new or extended services outside the public agencys jurisdictional boundaries pursuant to a fire protection contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, that a proposal by a state agency be initiated by the director of the agency with the approval of the Director of Finance, and that a proposal by a local agency that is currently under contract for the provision of fire protection services be initiated by the local agency and approved by the Director of Finance. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended services pursuant to a fire protection contract with, or provide written notice of a proposed fire protection contract to, each affected public agency and recognized employee organization representing firefighters in the affected area, and to conduct a public hearing on the resolution.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
This bill would incorporate additional changes to Section 56133 of the Government Code proposed by AB 402 that would become operative if this bill and AB 402 are both enacted and this bill is enacted last.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would, with certain exceptions, permit a public agency to exercise new or extended services outside the public agencys jurisdictional boundaries pursuant to a fire protection contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, that a proposal by a state agency be initiated by the director of the agency with the approval of the Director of Finance, and that a proposal by a local agency that is currently under contract for the provision of fire protection services be initiated by the local agency and approved by the Director of Finance. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended services pursuant to a fire protection contract with, or provide written notice of a proposed fire protection contract to, each affected public agency and recognized employee organization representing firefighters in the affected area, and to conduct a public hearing on the resolution.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
This bill would incorporate additional changes to Section 56133 of the Government Code proposed by AB 402 that would become operative if this bill and AB 402 are both enacted and this bill is enacted last.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would, with certain exceptions, permit a public agency to exercise new or extended services outside the public agencys current service area jurisdictional boundaries pursuant to a fire protection contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, and that a proposal by a state agency be initiated by the director of the agency with the approval of the Director of Finance. Finance, and that a proposal by a local agency that is currently under contract for the provision of fire protection services be initiated by the local agency and approved by the Director of Finance. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended services pursuant to a fire protection contract with, or provide written notice of a proposed fire protection contract to, each affected public agency and recognized employee organization representing firefighters in the affected area, and to conduct a public hearing on the resolution.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would would, with certain exceptions, permit a public agency to exercise new or extended services outside the public agencys current service area pursuant to a fire protection reorganization contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, and that a proposal by a state agency be initiated by the director of the agency with the approval of the Governor. Director of Finance. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended services pursuant to a fire protection reorganization contract with with, or provide written notice of a proposed fire protection contract to, each affected public agency and recognized employee organization representing firefighters in the affected area area, and to conduct a public hearing on the resolution.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law establishes commission proceedings to consider the exercise of new or different functions or services, or the divestiture of the power to provide particular functions or services, by special districts. permits a city or district to provide extended services, as defined, outside its jurisdictional boundaries only if it first requests and receives written approval from the local agency formation commission in the affected county. Under existing law, the commission may authorize a city or district to provide new or extended services outside both its jurisdictional boundaries and its sphere of influence under specified circumstances.
This bill would establish commission proceedings to consider the permit a public agency to exercise of new or extended fire protection services outside a the public agencys current service area by contract or agreement. pursuant to a fire protection reorganization contract, as defined, only if the public agency receives written approval from the local agency formation commission in the affected county. The bill would require that the legislative body of a public agency to that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided. The bill would require provided, and that a proposal by a state agency be initiated by the director of the agency with the approval of the Governor. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended fire protection services pursuant to a fire protection reorganization contract with each affected public agency and recognized employee organization representing firefighters in the affected area and to conduct a public hearing on the resolution. The bill would provide that a proposal for a change of organization that involves the exercise of new or extended fire protection services outside a public agencys current service area by contract or agreement may be initiated only by these proceedings.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, to review a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law establishes commission proceedings to consider the exercise of new or different functions or services, or the divestiture of the power to provide particular functions or services, by special districts.
This bill would establish commission proceedings to consider the exercise of new or extended fire protection services outside a public agencys current service area by contract or agreement. The bill would require the legislative body of a public agency to adopt a resolution and submit the resolution along with a plan for services, as provided. The bill would require that a proposal by a state agency be initiated by the director of the agency with the approval of the Governor. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended fire protection services with each affected public agency and recognized employee organization representing firefighters in the affected area and to conduct a public hearing on the resolution. The bill would provide that a proposal for a change of organization that involves the exercise of new or extended fire protection services outside a public agencys current service area by contract or agreement may be initiated only by these proceedings.
The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, to review a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries if the city or district requests and receives permission to do so from the local agency formation commission in the affected county. Existing law authorizes the commission to authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization, or outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory, under specified circumstances. Existing law requires the executive officer of the local agency formation commission, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, to determine whether the request is complete and acceptable for filing, as specified.
This bill would extend the period within which the executive officer is required to make that determination to 45 days.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries if the city or district requests and receives permission to do so from the local agency formation commission in the affected county. Existing law authorizes the commission to authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization, or outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory, under specified circumstances. Existing law requires the executive officer of the local agency formation commission, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, to determine whether the request is complete and acceptable for filing, as specified.
This bill would extend the period within which the executive officer is required to make that determination to 45 days.
Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133.
(d)A request by a public agency for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)Contracts for the transfer of nonpotable or nontreated water.
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
SEC. 2.5.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundary only if it first requests and receives written approval from the commission.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundary but within its sphere of influence in anticipation of a later change of organization.
(c)If consistent with adopted policy, the commission may authorize a city or district to provide new or extended services outside its jurisdictional boundary and outside its sphere of influence to respond to an existing or impending threat to the health or safety of the public or the residents of the affected territory, if both of the following requirements are met:
(1)The entity applying for approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of requests made pursuant to this section to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the extended services. If the new or extended services are disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)The transfer of nonpotable or nontreated water.
(3)The provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundary.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
(f)This section applies only to the commission of the county in which the extension of service is proposed.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the area within the jurisdictional boundaries of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(3)For the purposes of this section, jurisdictional boundaries shall include the territory or lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. An extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of new or extended services provided pursuant to a fire protection contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Director of Finance.
(3)In the case of a public agency that is a local agency currently under contract with a state agency for the provision of fire protection services and proposing to provide new or extended services by the expansion of the existing contract or agreement, the application shall be initiated by the public agency that is a local agency and be approved by the Director of Finance.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency does either of the following:
(A)Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract.
(B)Provides, at least 30 days prior to the hearing held pursuant to paragraph (2), written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. The notice shall, at minimum, include a full copy of the proposed contract.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2), as applicable.
(e)A resolution of application submitted pursuant to this section shall be submitted with a plan which shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(6)An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
(7)The level and range of new or extended fire protection services.
(8)An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
(9)An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the fire protection contract is completed.
(10)A determination, supported by documentation, that the proposed fire protection contract meets the criteria established pursuant to subparagraph (A) or (B) of paragraph (1) or paragraph (2), as applicable, of subdivision (a).
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document all of the following:
(1)A thorough review of the plan for services submitted by the public agency pursuant to subdivision (e).
(2)How the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(3)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined incomplete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for new or extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection contract unless the commission determines, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
(m)This section shall not be construed to abrogate a public agencys obligations under the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1).
SEC. 4.The Legislature finds and declares that, with respect to fire protection contracts subject to this act, the provisions of this act are not intended to change, alter, or in any way affect either of the following:
(a)The existing jurisdiction of a local agency formation commission over proceedings that involve the provision of prehospital emergency medical services.
(b)Mutual aid agreements, including mutual aid agreements entered into pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 1 of the Government Code) or the Fire Protection District Law of 1987 (Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code).
SEC. 5.The Legislature finds and declares that Section 3 of this act, which adds Section 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 56133 of the Government Code proposed by both this bill and Assembly Bill 402. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 56133 of the Government Code, and (3) this bill is enacted after Assembly Bill 402, in which case Section 2 of this bill shall not become operative.
Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133.
(d)A request by a public agency for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)Contracts for the transfer of nonpotable or nontreated water.
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
SEC. 2.5.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundary only if it first requests and receives written approval from the commission.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundary but within its sphere of influence in anticipation of a later change of organization.
(c)If consistent with adopted policy, the commission may authorize a city or district to provide new or extended services outside its jurisdictional boundary and outside its sphere of influence to respond to an existing or impending threat to the health or safety of the public or the residents of the affected territory, if both of the following requirements are met:
(1)The entity applying for approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of requests made pursuant to this section to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the extended services. If the new or extended services are disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)The transfer of nonpotable or nontreated water.
(3)The provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundary.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
(f)This section applies only to the commission of the county in which the extension of service is proposed.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the area within the jurisdictional boundaries of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(3)For the purposes of this section, jurisdictional boundaries shall include the territory or lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. An extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of new or extended services provided pursuant to a fire protection contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Director of Finance.
(3)In the case of a public agency that is a local agency currently under contract with a state agency for the provision of fire protection services and proposing to provide new or extended services by the expansion of the existing contract or agreement, the application shall be initiated by the public agency that is a local agency and be approved by the Director of Finance.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency does either of the following:
(A)Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract.
(B)Provides, at least 30 days prior to the hearing held pursuant to paragraph (2), written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. The notice shall, at minimum, include a full copy of the proposed contract.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2), as applicable.
(e)A resolution of application submitted pursuant to this section shall be submitted with a plan which shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(6)An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
(7)The level and range of new or extended fire protection services.
(8)An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
(9)An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the fire protection contract is completed.
(10)A determination, supported by documentation, that the proposed fire protection contract meets the criteria established pursuant to subparagraph (A) or (B) of paragraph (1) or paragraph (2), as applicable, of subdivision (a).
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document all of the following:
(1)A thorough review of the plan for services submitted by the public agency pursuant to subdivision (e).
(2)How the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(3)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined incomplete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for new or extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection contract unless the commission determines, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
(m)This section shall not be construed to abrogate a public agencys obligations under the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1).
SEC. 4.The Legislature finds and declares that, with respect to fire protection contracts subject to this act, the provisions of this act are not intended to change, alter, or in any way affect either of the following:
(a)The existing jurisdiction of a local agency formation commission over proceedings that involve the provision of prehospital emergency medical services.
(b)Mutual aid agreements, including mutual aid agreements entered into pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 1 of the Government Code) or the Fire Protection District Law of 1987 (Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code).
SEC. 5.The Legislature finds and declares that Section 3 of this act, which adds Section 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 56133 of the Government Code proposed by both this bill and Assembly Bill 402. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 56133 of the Government Code, and (3) this bill is enacted after Assembly Bill 402, in which case Section 2 of this bill shall not become operative.
Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133.
(d)A request by a public agency for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)Contracts for the transfer of nonpotable or nontreated water.
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
SEC. 2.5.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries boundary only if it first requests and receives written approval from the commission in the affected county. commission.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries boundary but within its sphere of influence in anticipation of a later change of organization.
(c)The If consistent with adopted policy, the commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries boundary and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the public or the residents of the affected territory territory, if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to made pursuant to this section to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is new or extended services are disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider. This section does not apply to contracts for the transfer of nonpotable or nontreated water. This section does not apply to contracts or agreements solely involving the
(e)This section does not apply to any of the following:
(1)Two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)The transfer of nonpotable or nontreated water.
(3)The provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county. This section does not apply to an extended service that a city or district was providing on or before January 1, 2001. This section does not apply to a local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundary.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
(f)This section applies only to the commission of the county in which the extension of service is proposed.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the area within the jurisdictional boundaries of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, except those contracts entered into pursuant to Sections 4143 and 4144 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(3)For the purposes of this section, jurisdictional boundaries shall include the territory or lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. An extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of new or extended services provided pursuant to a fire protection contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Director of Finance.
(3)In the case of a public agency that is a local agency currently under contract with a state agency for the provision of fire protection services and proposing to provide new or extended services by the expansion of the existing contract or agreement, the application shall be initiated by the public agency that is a local agency and be approved by the Director of Finance.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency does either of the following:
(A)Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract.
(B)Provides, at least 30 days prior to the hearing held pursuant to paragraph (2), written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. The notice shall, at minimum, include a full copy of the proposed contract.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2), as applicable.
(e)A resolution of application submitted pursuant to this section shall be submitted with a plan which shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(6)An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
(7)The level and range of new or extended fire protection services.
(8)An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
(9)An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the fire protection contract is completed.
(10)A determination, supported by documentation, that the proposed fire protection contract meets the criteria established pursuant to subparagraph (A) or (B) of paragraph (1) or paragraph (2), as applicable, of subdivision (a).
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document all of the following:
(1)A thorough review of the plan for services submitted by the public agency pursuant to subdivision (e).
(2)How the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(3)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined incomplete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for new or extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection contract unless the commission determines, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
(m)This section shall not be construed to abrogate a public agencys obligations under the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1).
SEC. 4.The Legislature finds and declares that, with respect to fire protection contracts subject to this act, the provisions of this act are not intended to change, alter, or in any way affect either of the following:
(a)The existing jurisdiction of a local agency formation commission over proceedings that involve the provision of prehospital emergency medical services.
(b)Mutual aid agreements, including mutual aid agreements entered into pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550)of Division 1 of Title 1) 1 of the Government Code) or the Fire Protection District Law of 1987 (Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code).
SEC. 5.The Legislature finds and declares that Section 3 of this act, which adds Section 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 56133 of the Government Code proposed by both this bill and Assembly Bill 402. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 56133 of the Government Code, and (3) this bill is enacted after Assembly Bill 402, in which case Section 2 of this bill shall not become operative.
Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133 or 56134. 56133.
(d)A request by a public agency for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)Contracts for the transfer of nonpotable or nontreated water.
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection contract, as defined in subdivision (a) of Section 56134.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the service area within the jurisdictional boundaries of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, jurisdictional boundaries, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1), (1) shall be deemed a fire protection contract for the purposes of this section.
(3)For the purposes of this section, jurisdictional boundaries shall include the territory or lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. An extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results described in subparagraph (A) or (B) of paragraph (1) shall be deemed a fire protection contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of new or extended services provided pursuant to a fire protection contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Director of Finance.
(3)In the case of a public agency that is a local agency currently under contract with a state agency for the provision of fire protection services and proposing to provide new or extended services by the expansion of the existing contract or agreement, the application shall be initiated by the public agency that is a local agency and be approved by the Director of Finance.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency does either of the following:
(A)Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract.
(B)Provides, at least 30 days prior to the hearing held pursuant to paragraph (2), written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. The notice shall, at minimum, include a full copy of the proposed contract.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2), as applicable.(e)A resolution of application submitted pursuant to this section shall be submitted with a plan which shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(6)An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
(7)The level and range of new or extended fire protection services.
(8)An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
(9)An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the fire protection contract is completed.
(10)A determination, supported by documentation, that the proposed fire protection contract meets the criteria established pursuant to subparagraph (A) or (B) of paragraph (1) or paragraph (2), as applicable, of subdivision (a).
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document all of the following:
(1)The costs to the public agency that has proposed to provide new or extended fire protection services during the three fiscal years following a public agency entering into a fire protection contract, in accordance with the following requirements:
(A)The analysis shall include all direct and indirect cost impacts to the existing service provider in the affected territory.
(B)The analysis shall review how
(1)A thorough review of the plan for services submitted by the public agency pursuant to subdivision (e).
(2)How the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(2)The revenues of the public agency that has proposed new or extended fire protection services outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
(3)The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended fire protection services, during the three fiscal years that the new or extended fire protection services will be provided.
(4)
(3)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined incomplete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for new or extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection contract unless the commission finds, determines, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
(m)This section shall not be construed to abrogate a public agencys obligations under the Meyers-Millias-Brown Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1).
SEC. 4.The Legislature finds and declares that, with respect to fire protection contracts subject to this act, the provisions of this act are not intended to change, alter, or in any way affect the either of the following:
(a)The existing jurisdiction of a local agency formation commission over proceedings that involve the provision of prehospital emergency medical services.
(b)Mutual aid agreements, including mutual aid agreements entered into pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550)of Division 1 of Title 1) or the Fire Protection District Law of 1987 (Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code).
SEC. 5.The Legislature finds and declares that Section 3 of this act, which adds Section 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133 or 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
(2)Contracts for the transfer of nonpotable or nontreated water.
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county.
(4)An extended service that a city or district was providing on or before January 1, 2001.
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection reorganization contract, as defined in subdivision (a) of Section 56134.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection reorganization contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the service area of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1), shall be deemed a fire protection reorganization contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection reorganization contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of new or extended services provided under pursuant to a fire protection reorganization contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Governor. Director of Finance.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency obtains does either of the following:
(A)Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization. fire protection contract.
(B)Provides, at least 30 days prior to the hearing held pursuant to paragraph (2), written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. The notice shall, at minimum, include a full copy of the proposed contract.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2), as applicable.
(e)A resolution of application submitted pursuant to this section must shall be submitted with a fire services reorganization contract plan that conforms to the requirements of Section 56653. The plan which shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(6)An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
(7)The level and range of new or extended fire protection services.
(8)An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
(9)An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the fire protection contract is completed.
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document: document all of the following:
(1)The costs to the public agency that has proposed to provide new or extended fire protection services during the three fiscal years following a public agency entering into a fire protection reorganization contract, in accordance with the following requirements:
(A)The analysis must shall include all direct and indirect cost impacts to the existing service provider in the affected territory.
(B)The analysis must shall review how the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and shall make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(2)The revenues of the public agency that has proposed a new or extended fire protection services outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
(3)The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended fire protection services, during the three fiscal years that the new or extended fire protection services will be provided.
(4)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection reorganization contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined not to be complete, incomplete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for new or extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection reorganization contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection reorganization contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection reorganization contract unless the commission finds, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a the new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
(m)This section shall not be construed to abrogate a public agencys obligations under the Meyers-Millias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1).
SEC. 4.The Legislature finds and declares that, with respect to fire protection contracts subject to this act, the provisions of this act are not intended to change, alter, or in any way affect the existing jurisdiction of a local agency formation commission over proceedings that involve the provision of prehospital emergency medical services.
SEC. 4.SEC. 5.The Legislature finds and declares that Section 3 of this act, which adds Section 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
Change of organization means any of the following:
(a)A city incorporation.
(b)A district formation.
(c)An annexation to a city.
(d)An annexation to a district.
(e)A detachment from a city.
(f)A detachment from a district.
(g)A disincorporation of a city.
(h)A district dissolution.
(i)A consolidation of cities.
(j)A consolidation of special districts.
(k)A merger of a city and a district.
(l)Establishment of a subsidiary district.
(m)The exercise of new or different functions or classes of services, or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district as provided in Article 1.5 (commencing with Section 56824.10) of Chapter 5 of Part 3 of this division.
(n)The exercise of new or extended fire protection services outside a public agencys current service area by contract or agreement, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, as provided in Article 1.6 (commencing with Section 56824.20) of Chapter 5 of Part 3 of Division 3 of Title 5 of this code.
SEC. 2.Section 56654 of the Government Code is amended to read:56654.(a)A proposal for a change of organization or a reorganization may be made by the adoption of a resolution of application by the legislative body of an affected local agency, except as provided in subdivision (b).
(b)(1)Notwithstanding Section 56700, a proposal for a change of organization that involves the exercise of new or different functions or classes of services, or the divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, shall only be initiated by the legislative body of that special district in accordance with Article 1.5 (commencing with Section 56824.10) of Chapter 5.
(2)Notwithstanding Section 56700, a proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, shall only be initiated in accordance with Article 1.6 (commencing with Section 56824.20) of Chapter 5.
(c)At least 21 days before the adoption of the resolution, the legislative body may give mailed notice of its intention to adopt a resolution of application to the commission and to each interested agency and each subject agency. The notice shall generally describe the proposal and the affected territory.
(d)Except for the provisions regarding signers and signatures, a resolution of application shall contain all of the matters specified for a petition in Section 56700 and shall be submitted with a plan for services prepared pursuant to Section 56653.
SEC. 3.Section 56800.5 is added to the Government Code, to read:56800.5.For a proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, the executive officer shall prepare, or cause to be prepared by contract, a comprehensive fiscal analysis. This analysis shall become part of the report required pursuant to Section 56665. Data used for the analysis shall be from the most recent fiscal year for which data are available, preceding the issuance of the certificate of filing. When data requested by the executive officer in the notice of affected agencies are unavailable, the analysis shall document the source and methodology of the data used. The analysis shall review and document each of the following:
(a)The costs to the public agency that has proposed to provide new or extended services during the three fiscal years following a public agency entering into a contract to provide new or extended services outside its current service area by contract or agreement, in accordance with the following requirements:
(1)The executive officer shall include all direct and indirect cost impacts to the existing service provider in the affected territory.
(2)The executive officer shall review how the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and shall make a reasonable determination of the costs expected to be borne by the public agency providing new or extended services.
(b)The revenues of the public agency that has proposed a new or extended service outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
(c)The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended service, during the three fiscal years that the new or extended service will be provided.
(d)Any other information and analysis needed to make the findings required by Section 56824.24.
SEC. 4.Section 56824.10 of the Government Code is amended to read:56824.10.Commission proceedings for the exercise of new or different functions or classes of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, may be initiated by a resolution of application in accordance with this article.
SEC. 5.Section 56824.12 of the Government Code is amended to read:56824.12.(a)A proposal by a special district to provide a new or different function or class of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, shall be made by the adoption of a resolution of application by the legislative body of the special district and shall include all of the matters specified for a petition in Section 56700, except paragraph (6) of subdivision (a) of Section 56700, and be submitted with a plan for services prepared pursuant to Section 56653. The plan for services for purposes of this article shall also include all of the following information:
(1)The total estimated cost to provide the new or different function or class of services within the special districts jurisdictional boundaries.
(2)The estimated cost of the new or different function or class of services to customers within the special districts jurisdictional boundaries. The estimated costs may be identified by customer class.
(3)An identification of existing providers, if any, of the new or different function or class of services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A written summary of whether the new or different function or class of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, will involve the activation or divestiture of the power to provide a particular service or services, service function or functions, or class of service or services.
(5)A plan for financing the establishment of the new or different function or class of services within the special districts jurisdictional boundaries.
(6)Alternatives for the establishment of the new or different functions or class of services within the special districts jurisdictional boundaries.
(b)The clerk of the legislative body adopting a resolution of application shall file a certified copy of that resolution with the executive officer. Except as provided in subdivision (c), the commission shall process resolutions of application adopted pursuant to this article in accordance with Section 56824.14.
(c)(1)Prior to submitting a resolution of application pursuant to this article to the commission, the legislative body of the special district shall conduct a public hearing on the resolution. Notice of the hearing shall be published pursuant to Sections 56153 and 56154.
(2)Any affected local agency, affected county, or any interested person who wishes to appear at the hearing shall be given an opportunity to provide oral or written testimony on the resolution.
SEC. 6.Article 1.6 (commencing with Section 56824.20) is added to Chapter 5 of Part 3 of Division 3 of Title 5 of the Government Code, to read:1.6.Fire Protection Services56824.20.Commission proceedings pursuant to paragraph (2) of subdivision (b) of Section 56654 may be initiated in accordance with this article.
56824.22.(a)A proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the proposal shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the proposal shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Governor.
(b)Prior to submitting a resolution of application pursuant to this article to the commission, the legislative body of a public agency or the director of a state agency shall do all of the following:
(1)Obtain and submit with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
(2)Conduct a public hearing on the resolution. Notice of the hearing shall be published pursuant to Sections 56154 and 56156. The legislative body of the public agency or the director of the state agency shall provide an affected public agency or an interested person who wishes to appear at the hearing the opportunity to present oral or written testimony on the resolution.
(c)A proposal for a change of organization submitted pursuant to this article shall be submitted with a plan for services prepared pursuant to Section 56653. The plan for services shall include all of the following information:
(1)The total estimated cost to provide the new or extended services in the affected territory.
(2)The estimated cost of the new or extended services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended services in the affected territory.
(5)Alternatives for the exercise of the new or extended services in the affected territory.
(d)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this article shall file a certified copy of the resolution with the executive officer. The commission shall process resolutions of application adopted pursuant to this chapter in accordance with Section 56824.24.
56824.24.(a)The commission shall review and approve or disapprove a proposal for a change of organization as defined in subdivision (n) of Section 56021 after a public hearing called and held for that purpose. The commission shall not consider or approve a proposal that does not comply with the requirements of subdivision (b) of Section 56824.22.
(b)(1)The commission shall not approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended services outside its current area, except as specified in paragraph (2).
(2)The commission may approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended services shall not be exercised.
(c)Notwithstanding Section 56375, the commission shall not approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 unless the commission finds, based on the entire record, all of the following:
(1)The proposed exercise of new or extended services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to Section 56800.5.
(3)The commission has reviewed the executive officers report and recommendation prepared pursuant to Section 56665 and any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended service.
(d)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(e)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
SECTION 1.Section 56017.2 of the Government Code is amended to read:56017.2.Application means any of the following:
(a)A resolution of application or petition initiating a change of organization or reorganization with supporting documentation as required by the commission or executive officer.
(b)A request for a sphere of influence amendment or update pursuant to Section 56425.
(c)A request by a city or district for commission approval of an extension of services outside the agencys jurisdictional boundaries pursuant to Section 56133. 56133 or 56134.
SEC. 2.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to contracts any of the following:
(1)Contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider. This section does not apply to contracts
(2)Contracts for the transfer of nonpotable or nontreated water. This section does not apply to contracts
(3)Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county. This section does not apply to an
(4)An extended service that a city or district was providing on or before January 1, 2001. This section does not apply to a
(5)A local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(6)A fire protection reorganization contract, as defined in subdivision (a) of Section 56134.
SEC. 3.Section 56134 is added to the Government Code, to read:56134.(a)(1)For the purposes of this section, fire protection reorganization contract means a contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or by Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that does either of the following:
(A)Transfers responsibility for providing services in more than 25 percent of the service area of any public agency affected by the contract or agreement.
(B)Changes the employment status of more than 25 percent of the employees of any public agency affected by the contract or agreement.
(2)A contract or agreement for the exercise of new or extended fire protection services outside a public agencys current service area, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, that, in combination with other contracts or agreements, would produce the results described in subparagraph (A) or (B) of paragraph (1), shall be deemed a fire protection reorganization contract for the purposes of this section.
(b)Notwithstanding Section 56133, a public agency may provide new or extended services pursuant to a fire protection reorganization contract only if it first requests and receives written approval from the commission in the affected county pursuant to the requirements of this section.
(c)A request by a public agency for commission approval of services provided under a fire protection reorganization contract shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the application shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the application shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Governor.
(d)The legislative body of a public agency or the director of a state agency shall not submit a resolution of application pursuant to this section unless both of the following occur:
(1)The public agency obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
(2)The public agency conducts an open and public hearing on the resolution, conducted pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) Part 1 Division 2 Title 5) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) Chapter 1 Part 1 Division 3 Title 2), as applicable.
(e)A resolution of application submitted pursuant to this section must be submitted with a fire services reorganization contract plan that conforms to the requirements of Section 56653. The plan shall include all of the following information:
(1)The total estimated cost to provide the new or extended fire protection services in the affected territory.
(2)The estimated cost of the new or extended fire protection services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended fire protection services in the affected territory.
(5)Alternatives for the exercise of the new or extended fire protection services in the affected territory.
(f)The applicant shall cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application pursuant to this section. The analysis shall review and document:
(1)The costs to the public agency that has proposed to provide new or extended fire protection services during the three fiscal years following a public agency entering into a fire protection reorganization contract, in accordance with the following requirements:
(A)The analysis must include all direct and indirect cost impacts to the existing service provider in the affected territory.
(B)The analysis must review how the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and shall make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
(2)The revenues of the public agency that has proposed a new or extended fire protection services outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
(3)The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended fire protection services, during the three fiscal years that the new or extended fire protection services will be provided.
(4)Any other information and analysis needed to support the findings required by subdivision (j).
(g)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this section shall file a certified copy of the resolution with the executive officer.
(h)(1)The executive officer, within 30 days of receipt of a public agencys request for approval of a fire protection reorganization contract, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request does not comply with the requirements of subdivision (d), the executive officer shall determine that the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete.
(2)The commission shall approve, disapprove, or approve with conditions the contract for extended services following the hearing at the commission meeting, as provided in paragraph (1). If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(i)(1)The commission shall not approve an application for approval of a fire protection reorganization contract unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in paragraph (2).
(2)The commission may approve an application for approval of a fire protection reorganization contract where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that, if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
(j)The commission shall not approve an application for approval of a fire protection reorganization contract unless the commission finds, based on the entire record, all of the following:
(1)The proposed exercise of new or extended fire protection services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to subdivision (f).
(3)The commission has reviewed any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended fire protection services.
(k)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(l)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
SEC. 7.SEC. 4.The Legislature finds and declares that Section 6 3 of this act, which adds Section 56824.22 56134 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice to the public in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
Change of organization means any of the following:
(a)A city incorporation.
(b)A district formation.
(c)An annexation to a city.
(d)An annexation to a district.
(e)A detachment from a city.
(f)A detachment from a district.
(g)A disincorporation of a city.
(h)A district dissolution.
(i)A consolidation of cities.
(j)A consolidation of special districts.
(k)A merger of a city and a district.
(l)Establishment of a subsidiary district.
(m)The exercise of new or different functions or classes of services, or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district as provided in Article 1.5 (commencing with Section 56824.10) of Chapter 5 of Part 3 of this division.
(n)The exercise of new or extended fire protection services outside a public agencys current service area by contract or agreement, as authorized by Chapter 4 (commencing with Section 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 (commencing with Section 4141) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, as provided in Article 1.6 (commencing with Section 56824.20) of Chapter 5 of Part 3 of Division 3 of Title 5 of this code.
SEC. 2.Section 56654 of the Government Code is amended to read:56654.(a)A proposal for a change of organization or a reorganization may be made by the adoption of a resolution of application by the legislative body of an affected local agency, except as provided in subdivision (b).
(b)(1)Notwithstanding Section 56700, a proposal for a change of organization that involves the exercise of new or different functions or classes of services, or the divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, shall only be initiated by the legislative body of that special district in accordance with Sections 56824.10, 56824.12, and 56824.14. Article 1.5 (commencing with Section 56824.10) of Chapter 5.
(2)Notwithstanding Section 56700, a proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, shall only be initiated in accordance with Article 1.6 (commencing with Section 56824.20) of Chapter 5.
(c)At least 21 days before the adoption of the resolution, the legislative body may give mailed notice of its intention to adopt a resolution of application to the commission and to each interested agency and each subject agency. The notice shall generally describe the proposal and the affected territory.
(d)Except for the provisions regarding signers and signatures, a resolution of application shall contain all of the matters specified for a petition in Section 56700 and shall be submitted with a plan for services prepared pursuant to Section 56653.
SEC. 3.Section 56800.5 is added to the Government Code, to read:56800.5.For a proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, the executive officer shall prepare, or cause to be prepared by contract, a comprehensive fiscal analysis. This analysis shall become part of the report required pursuant to Section 56665. Data used for the analysis shall be from the most recent fiscal year for which data are available, preceding the issuance of the certificate of filing. When data requested by the executive officer in the notice of affected agencies are unavailable, the analysis shall document the source and methodology of the data used. The analysis shall review and document each of the following:
(a)The costs to the public agency that has proposed to provide new or extended services during the three fiscal years following a public agency entering into a contract to provide new or extended services outside its current service area by contract or agreement, in accordance with the following requirements:
(1)The executive officer shall include all direct and indirect cost impacts to the existing service provider in the affected territory.
(2)The executive officer shall review how the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and shall make a reasonable determination of the costs expected to be borne by the public agency providing new or extended services.
(b)The revenues of the public agency that has proposed a new or extended service outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
(c)The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended service, during the three fiscal years that the new or extended service will be provided.
(d)Any other information and analysis needed to make the findings required by Section 56824.24.
SEC. 4.Section 56824.10 of the Government Code is amended to read:56824.10.Commission proceedings for the exercise of new or different functions or classes of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, may be initiated by a resolution of application in accordance with this article.
SEC. 5.Section 56824.12 of the Government Code is amended to read:56824.12.(a)A proposal by a special district to provide a new or different function or class of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, shall be made by the adoption of a resolution of application by the legislative body of the special district and shall include all of the matters specified for a petition in Section 56700, except paragraph (6) of subdivision (a) of Section 56700, and be submitted with a plan for services prepared pursuant to Section 56653. The plan for services for purposes of this article shall also include all of the following information:
(1)The total estimated cost to provide the new or different function or class of services within the special districts jurisdictional boundaries.
(2)The estimated cost of the new or different function or class of services to customers within the special districts jurisdictional boundaries. The estimated costs may be identified by customer class.
(3)An identification of existing providers, if any, of the new or different function or class of services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A written summary of whether the new or different function or class of services or divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, pursuant to paragraph (1) of subdivision (b) of Section 56654, will involve the activation or divestiture of the power to provide a particular service or services, service function or functions, or class of service or services.
(5)A plan for financing the establishment of the new or different function or class of services within the special districts jurisdictional boundaries.
(6)Alternatives for the establishment of the new or different functions or class of services within the special districts jurisdictional boundaries.
(b)The clerk of the legislative body adopting a resolution of application shall file a certified copy of that resolution with the executive officer. Except as provided in subdivision (c), the commission shall process resolutions of application adopted pursuant to this article in accordance with Section 56824.14.
(c)(1)Prior to submitting a resolution of application pursuant to this article to the commission, the legislative body of the special district shall conduct a public hearing on the resolution. Notice of the hearing shall be published pursuant to Sections 56153 and 56154.
(2)Any affected local agency, affected county, or any interested person who wishes to appear at the hearing shall be given an opportunity to provide oral or written testimony on the resolution.
SEC. 6.Article 1.6 (commencing with Section 56824.20) is added to Chapter 5 of Part 3 of Division 3 of Title 5 of the Government Code, to read:1.6.Fire Protection Services56824.20.Commission proceedings pursuant to paragraph (2) of subdivision (b) of Section 56654 may be initiated in accordance with this article.
56824.22.(a)A proposal for a change of organization that involves the exercise of new or extended services outside a public agencys current service area by contract or agreement, as defined in subdivision (n) of Section 56021, shall be made by the adoption of a resolution of application as follows:
(1)In the case of a public agency that is not a state agency, the proposal shall be initiated by the adoption of a resolution of application by the legislative body of the public agency proposing to provide new or extended services outside the public agencys current service area.
(2)In the case of a public agency that is a state agency, the proposal shall be initiated by the director of the state agency proposing to provide new or extended services outside the agencys current service area and be approved by the Governor.
(b)Prior to submitting a resolution of application pursuant to this article to the commission, the legislative body of a public agency or the director of a state agency shall do all of the following:
(1)Obtain and submit with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
(2)Conduct a public hearing on the resolution. Notice of the hearing shall be published pursuant to Sections 56154 and 56156. The legislative body of the public agency or the director of the state agency shall provide an affected public agency or an interested person who wishes to appear at the hearing the opportunity to present oral or written testimony on the resolution.
(c)A proposal for a change of organization submitted pursuant to this article shall be submitted with a plan for services prepared pursuant to Section 56653. The plan for services shall include all of the following information:
(1)The total estimated cost to provide the new or extended services in the affected territory.
(2)The estimated cost of the new or extended services to customers in the affected territory.
(3)An identification of existing service providers, if any, of the new or extended services proposed to be provided and the potential fiscal impact to the customers of those existing providers.
(4)A plan for financing the exercise of the new or extended services in the affected territory.
(5)Alternatives for the exercise of the new or extended services in the affected territory.
(d)The clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application pursuant to this article shall file a certified copy of the resolution with the executive officer. The commission shall process resolutions of application adopted pursuant to this chapter in accordance with Section 56824.24.
56824.24.(a)The commission shall review and approve or disapprove a proposal for a change of organization as defined in subdivision (n) of Section 56021 after a public hearing called and held for that purpose. The commission shall not consider or approve a proposal that does not comply with the requirements of subdivision (b) of Section 56824.22.
(b)(1)The commission shall not approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 unless the commission determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended services outside its current area, except as specified in paragraph (2).
(2)The commission may approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 where the commission has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that if the revenue sources pursuant to Section 56886 are not approved, the authority of the public agency to provide new or extended services shall not be exercised.
(c)Notwithstanding Section 56375, the commission shall not approve a proposal for a change of organization as defined in subdivision (n) of Section 56021 unless the commission finds, based on the entire record, all of the following:
(1)The proposed exercise of new or extended services outside a public agencys current service area is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001 and 56300.
(2)The commission has reviewed the comprehensive fiscal analysis prepared pursuant to Section 56800.5.
(3)The commission has reviewed the executive officers report and recommendation prepared pursuant to Section 56665 and any testimony presented at the public hearing.
(4)The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended service.
(d)At least 21 days prior to the date of the hearing, the executive officer shall give mailed notice of that hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted and shall post the notice of the hearing on the commissions Internet Web site.
(e)The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.
SEC. 7.The Legislature finds and declares that Section 6 of this act, which adds Section 56824.22 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act provides for notice in accordance with existing provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and will ensure that the right of public access to local agency meetings is protected.
SECTION 1.Section 56133 of the Government Code is amended to read:56133.(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 45 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider. This section does not apply to contracts for the transfer of nonpotable or nontreated water. This section does not apply to contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county. This section does not apply to an extended service that a city or district was providing on or before January 1, 2001. This section does not apply to a local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
(a)A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c)The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met:
(1)The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.
(2)The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission.
(d)The executive officer, within 30 45 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, shall determine whether the request is complete and acceptable for filing or whether the request is incomplete. If a request is determined not to be complete, the executive officer shall immediately transmit that determination to the requester, specifying those parts of the request that are incomplete and the manner in which they can be made complete. When the request is deemed complete, the executive officer shall place the request on the agenda of the next commission meeting for which adequate notice can be given but not more than 90 days from the date that the request is deemed complete, unless the commission has delegated approval of those requests to the executive officer. The commission or executive officer shall approve, disapprove, or approve with conditions the contract for extended services. If the contract is disapproved or approved with conditions, the applicant may request reconsideration, citing the reasons for reconsideration.
(e)This section does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider. This section does not apply to contracts for the transfer of nonpotable or nontreated water. This section does not apply to contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county. This section does not apply to an extended service that a city or district was providing on or before January 1, 2001. This section does not apply to a local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utilitys jurisdictional boundaries.
|
Date
|
Status
|
|---|---|
| Sep 8, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Jun 15, 2015 | Referred to Com. on L. GOV. |
| Jul 16, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (July 15). Re-referred to Com. on APPR. |
| Aug 19, 2015 | August 19 set for first hearing. Placed on APPR. suspense file. |
| Aug 28, 2015 | From committee: Do pass as amended. (Ayes 12. Noes 4.) (August 27). |
| Aug 31, 2015 | Read second time and amended. Ordered to second reading. |
| Sep 1, 2015 | Read second time. Ordered to third reading. |
| Sep 2, 2015 | Ordered to third reading. |
| Sep 2, 2015 | Read third time and amended. |
| Jun 2, 2015 | Read third time. Passed. (Ayes 26. Noes 12.) Ordered to the Assembly. |
| Sep 8, 2015 | Read third time. Passed. Ordered to the Senate. |
| Sep 8, 2015 | Read third time. Passed. (Ayes 54. Noes 23. Page 2971.) Ordered to the Senate. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 23. Noes 13.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 24. Noes 13. Page 2672.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 24. Noes 13.) Ordered to engrossing and enrolling. |
| Sep 11, 2015 | Enrolled and presented to the Governor at 10:45 p.m. |
| Oct 10, 2015 | Approved by the Governor. |
| Oct 10, 2015 | Chaptered by Secretary of State. Chapter 763, Statutes of 2015. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (April 29). Re-referred to Com. on APPR. |
| Feb 18, 2015 | From printer. May be acted upon on or after March 20. |
| Feb 26, 2015 | Referred to Com. on GOV. & F. |
| Mar 23, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| Mar 27, 2015 | Set for hearing April 15. |
| Apr 9, 2015 | April 15 set for first hearing canceled at the request of author. |
| Apr 21, 2015 | Set for hearing April 29. |
| Apr 23, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 815.) (April 29). Re-referred to Com. on APPR. |
| Feb 17, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 8, 2015 | Set for hearing May 18. |
| May 18, 2015 | May 18 hearing: Placed on APPR. suspense file. |
| May 23, 2015 | Set for hearing May 28. |
| May 28, 2015 | From committee: Do pass as amended. (Ayes 5. Noes 2. Page 1150.) (May 28). |
| May 28, 2015 | From committee: Do pass as amended. (Ayes 5. Noes 2.) (May 28). |
| Jun 1, 2015 | Read second time and amended. Ordered to third reading. |
| Jun 2, 2015 | In Assembly. Read first time. Held at Desk. |
| Jun 2, 2015 | Read third time. Passed. (Ayes 26. Noes 12. Page 1250.) Ordered to the Assembly. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 10, 2015 | Unfinished Business SB239 Hertzberg Concurrence | Senate Floor |
Passed |
|
| Sep 8, 2015 | SB 239 Hertzberg Senate Third Reading By CHIU | Assembly Floor |
Passed |
|
| Aug 27, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 15, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| Jun 2, 2015 | Senate 3rd Reading SB239 Hertzberg | Senate Floor |
Passed |
|
| May 28, 2015 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 18, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Alameda County LAFCO | ** Against | Jun 2, 2015 |
| Alameda County Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| Apple Valley Fire Protection District | ** Against | Jun 2, 2015 |
| Bonita-Sunnyside Fire Protection District | ** Against | Jun 2, 2015 |
| CAL FIRE, Local 2881 | ** Support | Sep 8, 2015 |
| California Ambulance Association | ** Against | Jun 2, 2015 |
| California Association of LAFCOs | ** Against | Jun 2, 2015 |
| California Building Industry Association | ** Against | Sep 8, 2015 |
| California Business Properties Association | ** Against | Sep 8, 2015 |
| California Professional Firefighters | ** Support | Sep 8, 2015 |
| California Special Districts Association | ** Against | Sep 8, 2015 |
| California State Association Of Counties | ** Against | Sep 8, 2015 |
| Chino Valley Fire District | ** Against | Jun 2, 2015 |
| Contra Costa County | ** Against | Sep 8, 2015 |
| Contra Costa County Fire Protection District | ** Against | Sep 2, 2015 |
| Contra Costa County LAFCO | ** Against | Jun 2, 2015 |
| Contra Costa County Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| Covelo Fire Protection District | ** Against | Jun 2, 2015 |
| El Dorado County Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| Fire Districts Association Of California | ** Against | Jun 2, 2015 |
| Fresno County Fire Protection District | ** Against | Jun 2, 2015 |
| Happy Valley Fire Protection District | ** Against | Jun 2, 2015 |
| Hesperia Recreation & Park District | ** Against | Jun 2, 2015 |
| Hesperia Recreation And Park District | ** Against | Jun 2, 2015 |
| League Of California Cities | ** Against | Sep 8, 2015 |
| Los Angeles County Board of Supervisors | ** Against | Sep 8, 2015 |
| Los Angeles County Division, League of California Cities | ** Against | Sep 8, 2015 |
| Los Angeles County LAFCO | ** Against | Jun 2, 2015 |
| Madera County Board of Supervisors | ** Against | Sep 8, 2015 |
| Monterey County Business Council | ** Against | Jun 2, 2015 |
| Monterey County LAFCO | ** Against | Jun 2, 2015 |
| Monterey County Regional Fire District | ** Against | Jun 2, 2015 |
| Nevada County LAFCO | ** Against | Jun 2, 2015 |
| North County Fire Protection District | ** Against | Jun 2, 2015 |
| North Tahoe Fire Protection District | ** Against | Sep 8, 2015 |
| Orange County LAFCO | ** Against | Jun 2, 2015 |
| Pebble Beach Community Services District | ** Against | Sep 8, 2015 |
| Riverside County LAFCO | ** Against | Jun 2, 2015 |
| Running Springs Water District | ** Against | Jun 2, 2015 |
| Rural County Representatives of California | ** Against | Sep 8, 2015 |
| San Bernardino County Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| San Diego County LAFCO | ** Against | Jun 2, 2015 |
| San Diego Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| San Luis Obispo County LAFCO | ** Against | Jun 2, 2015 |
| San Luis Obispo Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| San Mateo County LAFCO | ** Against | Jun 2, 2015 |
| San Mateo County Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| Santa Cruz County LAFCO | ** Against | Jun 2, 2015 |
| Santa Cruz Local Agency Formation Commission | ** Against | Sep 8, 2015 |
| Saratoga Fire District | ** Against | Jun 2, 2015 |
| Shasta Lake Fire Protection District | ** Against | Jun 2, 2015 |
| Squaw Valley Public Service District | ** Against | Jun 2, 2015 |
| Tuolumne Fire District | ** Against | Jun 2, 2015 |
SB 239
Page 8
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 239
Amended: 9/2/15
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 4/29/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Nguyen, Moorlach
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 26-12, 6/2/15
AYES: Allen, Beall, Block, Cannella, De León, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Nguyen, Pan, Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Huff, Moorlach, Morrell, Nielsen, Runner, Stone, Vidak
NO VOTE RECORDED: Glazer, Monning
ASSEMBLY FLOOR: 54-23, 9/08/15 - See last page for vote
SUBJECT: Local services: contracts: fire protection services
SOURCE: California Professional Firefighters
DIGEST: This bill requires a local agency formation commission (LAFCO) to review a contract or agreement for new or extended fire service outside of a public agency’s jurisdictional boundaries.
Assembly Amendments:
Replace references to a public agency’s “service area” with references to an agency’s “jurisdictional boundaries,” as defined.
Exempt cooperative agreements entered into by the California Department of Forestry and Fire Protection (CAL FIRE) and a city, county, special district, or political subdivision for the purpose of preventing and suppressing fires, pursuant to specified statutes, from the definition of a "fire protection contract."
Change the required elements that must be included in an independent comprehensive fiscal analysis submitted pursuant to this bill’s provisions.
Add double-jointing language to avoid chaptering out conflicts in the event that both this bill and AB 402 (Dodd), which also amends Section 56133 of the Government Code, are enacted into law.
Existing law:
Pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act, delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs.
Requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries (AB 1335, Gotch, Chapter 1307, Statutes of 1993). However, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
Allows cities and fire protection districts to contract with a county to provide fire protection services within the local agency’s jurisdiction.
Allows local governments to contract with the California Department of Forestry and Fire Protection (CAL FIRE) to provide fire protection services.
This bill:
Requires a public agency to obtain a LAFCO’s approval to provide new or extended services under a fire protection contract, pursuant to a specified approval process.
Defines a “fire protection contract” as a contract or agreement that:
Is for the exercise of new or extended fire protection services outside a public agency’s jurisdictional boundaries;
Is executed pursuant to specified statutes allowing local governments and CALFIRE to enter into fire protection service contracts and agreements; and,
Does either of the following:
Transfers responsibility for providing services in more than 25% of the jurisdictional boundaries of any public agency affected by the contract or agreement.
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Applies the definition of a fire protection contract to a contract or agreement that, in combination with other contracts or agreements, meets the bill’s definition of a fire protection contract.
Requires a public agency to initiate a request for LAFCO approval of services provided under a fire protection contract by adopting a resolution of application as follows:
The legislative body of a public agency that is not a state agency must adopt a resolution of application proposing to provide new or extended services outside the public agency’s current service area.
The director of a state agency must initiate an application, which must be approved by the Director of Finance.
Defines “jurisdictional boundaries” as include the territory or lands protected pursuant to a fire protection contract entered into on or before December 31, 2015.
Directs that an extension of a fire protection contract entered into on or before December 31, 2015, that would meet the definition of a fire protection contract must be deemed a fire protection contract for the purposes of this bill.
Specifies the manner in which a request by a public agency for commission approval of new or extended services provided pursuant to a fire protection contract must be initiated and approved.
Requires that the legislative body of a public agency or the director of a state agency must do all of the following before submitting a resolution of application to the LAFCO:
Conduct an open and public hearing on the resolution, and
Do either of the following:
Obtain and submit with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
At least 30 days before the public hearing, provide written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submit a copy of each written notice with the resolution of application. The notice must include a full copy of the proposed contract.
Requires that a proposal for a change of organization must be submitted with a plan prepared pursuant to specified statutory requirements. The plan must include ten specified elements.
Requires a public agency to cause to be prepared by contract an independent comprehensive fiscal analysis that reviews and documents:
The plan for services submitted to the LAFCO by the public agency.
How the costs of the existing service provider compare to the costs of services provided in service areas with similar populations and of similar geographic size that provide a similar level and range of services and make a reasonable determination of the costs expected to be borne by the public agency providing new or extended fire protection services.
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection contract.
Requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO executive officer. This bill specifies how a LAFCO must process resolutions of application submitted to the executive officer.
Requires a LAFCO to review and approve, disapprove, or approve with conditions a fire protection reorganization contract after a public hearing called and held for that purpose. This bill allows an applicant to request reconsideration if a contract is disapproved or approved with conditions.
Prohibits a LAFCO from approving an application unless the LAFCO determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended services outside its current area. However, if the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, this bill allows a LAFCO to approve an application if the LAFCO conditions its approval on the concurrent approval of sufficient revenue sources pursuant to state law. In approving an application, the LAFCO must provide that if the revenue sources are not approved, the public agency’s authority to provide new or extended services must not be exercised.
Prohibits a LAFCO from approving an application for approval of a fire protection reorganization contract unless the LAFCO makes specified determinations, based on the entire record.
Specifies the manner in which a LAFCO executive officer must provide public notice by mail, in a newspaper, and on the Internet, of a hearing to review an application for approval of a fire protection contract. This bill allows a LAFCO to continue a hearing and requires that a LAFCO must hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at the hearing.
Specifies that a fire protection contract is exempt from the statute that governs LAFCOs’ approval of extraterritorial service contracts.
Directs that its provisions must not be construed to abrogate a public agency’s obligations under the Meyers-Milias-Brown Act.
Makes additional technical and conforming changes to the Cortese-Knox-Hertzberg Act.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Appropriations Committee:
Unknown increased GF costs to the Department of Forestry and Fire Protection (CAL FIRE), likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services. CAL FIRE currently has 115 contracts with local agencies for full fire protection services, and the contracts typically have a duration of three years. It is likely that all of those contracts would meet the criteria in the bill requiring LAFCO approval. For illustrative purposes, if CAL FIRE incurred additional costs of $10,000 to extend 38 fire protection contracts in a year through the LAFCO process, annual administrative costs would be $380,000. It is likely that CAL FIRE would incur higher costs to assess the impacts of contracts for larger service areas.
Unknown, potentially significant impact on CAL FIRE fire protection costs (GF). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in “state responsibility areas,” and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
California Professional Firefighters (Source)
CAL FIRE, Local 2881
California Labor Federation
Alameda County Local Agency Formation Commission
California Building Industry Association
California Business Properties Association
California Special Districts Association
California State Association of Counties
Cities of Calimesa, Coalinga, Colton, El Centro, Fortuna, Fremont, Hesperia, Highland, Indio, Lakewood, Montclair, Rancho Mirage, and Seaside
Contra Costa County
Contra Costa County Local Agency Formation Commission
El Dorado County Local Agency Formation Commission
League of California Cities
Los Angeles County Board of Supervisors
Los Angeles County Division, League of California Cities
Madera County Board of Supervisors
North Tahoe Fire Protection District
Pebble Beach Community Services District
Rural County Representatives of California
San Bernardino County Local Agency Formation Commission (unless amended)
San Diego Local Agency Formation Commission
San Luis Obispo Local Agency Formation Commission
San Mateo County Local Agency Formation Commission
Santa Cruz Local Agency Formation Commission
Sausalito-Marin City Sanitary District
Sonoma Local Agency Formation Commission
ARGUMENTS IN SUPPORT: When a contract or agreement between two public agencies makes substantial changes to the administration of fire protection services in a community, it deserves to be scrutinized by LAFCO in a manner that is similar to how a detachment and annexation of fire protection services would be scrutinized under current law. When the Legislature enacted the 1993 Gotch bill requiring LAFCO review of some extraterritorial service contracts, it did so in response to concerns that local governments were using service contracts to circumvent LAFCO review of major changes to local service delivery. However, the review requirement for extraterritorial service contracts contained a substantial loophole for contracts that only involved public agencies. SB 239 will narrow that loophole. Some recent fire protection service contracts between public agencies have resulted in costly litigation and generated deep divisions among community members. Other agreements have been jeopardized by public officials’ reliance on financial data that later was determined to be inaccurate. Problems like these can be avoided by providing more opportunities for the public to review and consider independent analyses of proposed changes to fire service delivery in their communities. By requiring a public agency to submit a plan for extended services for fire protection to LAFCO for review and approval, this bill will ensure that the details of service delivery and costs are thoroughly and independently examined, which will benefit the residents, the public agency and the firefighters in all of the affected areas.
ARGUMENTS IN OPPOSITION: Local voters elect county supervisors, city council members, and special district board members to make public policy in response to local needs. Local elected officials strive to provide their communities’ residents with the best services at the most reasonable cost. They have to answer to residents who are displeased with the quality and cost of their services. As a result, a decision to enter into a contract with another public agency to provide fire protection services is a decision that elected officials make only after considering the fiscal, administrative, and service delivery implications for their communities. By requiring LAFCO review of fire protection reorganization contracts, this bill diminishes local officials’ autonomy to contract for fire protection services in the manner that they determine will best serve their constituents, potentially disrupting fire services and increasing local costs.
ASSEMBLY FLOOR: 54-23, 9/08/15
AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer, Linder, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey, Levine, Mathis, Mayes, Melendez, Obernolte, Olsen, Wagner, Waldron, Wilk
NO VOTE RECORDED: Chang, Chávez, Gordon
Prepared by: Brian Weinberger / GOV. & F. / (916) 651-4119
9/8/15 20:10:33
**** END ****
SB 239
Page 9
SENATE THIRD READING
SB 239
(Hertzberg)
As Amended September 2, 2015
Majority vote
SENATE VOTE: 26-12
Committee |
Votes |
Ayes |
Noes |
Local Government |
8-1 |
Maienschein, Gonzalez, Alejo, Chiu, Cooley, Linder, Low, Mullin |
Waldron |
Appropriations |
12-4 |
Gomez, Bloom, Bonta, Calderon, Nazarian, Eggman, Eduardo Garcia, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Gallagher, Jones, Wagner |
SUMMARY: Requires a public agency to receive approval from a local agency formation commission (LAFCO) to provide new or extended fire protections services outside its jurisdictional boundaries, pursuant to a fire protection contract. Specifically, this bill:
Requires a public agency to request and receive written approval from the LAFCO in the affected county before providing new or extended services, pursuant to a fire protection contract.
Defines a "fire protection contract" to mean a contract or agreement for the exercise of new or extended fire protection services outside a public agency's jurisdictional boundaries, and is executed pursuant to existing law which authorizes public agencies (which includes a city, county, city and county, special district, joint powers authority, and state agency) and the California Department of Forestry and Fire Protection (CAL FIRE) to enter into fire protection service contracts and agreements, that does either of the following:
Transfers responsibility for providing services in more than 25% of the area within the jurisdictional boundaries of any public agency affected by the contract or agreement; or,
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Exempts cooperative agreements entered into by CAL FIRE and a city, county, special district, or political subdivision for the purpose of preventing and suppressing fires, pursuant to the Public Resources Code, from the definition of a "fire protection contract" provided by this bill.
Requires that a contract or agreement for the exercise of new or extended fire protection services outside a public agency's jurisdictional boundaries, in combination with other contracts or agreements that would produce the results in 2) above, be deemed a fire protection contract, as defined by this bill.
Requires "jurisdictional boundaries" to include the territory of lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. Requires an extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results in 2) above, to be deemed a fire protection contract, as defined by this bill.
Requires a public agency to initiate a request for LAFCO's approval of new or extended services provided by a fire protection contract to be made by the adoption of a resolution of application, as follows:
For a public agency that is not a state agency, the legislative body of a public agency must initiate the application by the adoption of a resolution of application proposing to provide new or extended services outside the public agency's current service area;
For a public agency that is a state agency, the director of a state agency must initiate the application proposing to provide new or extended services outside their current service area, which must be approved by the Director of Finance; and,
For a public agency that is a local agency currently under contract with a state agency and proposing to provide new or extended services by the expansion of an existing contract or agreement, the public agency must initiate the application which must be approved by the Director of Finance.
Prohibits the legislative body of a public agency or the director of a state agency from submitting a resolution of application, unless the public agency or state agency do both of the following:
Conducts an open and public hearing on the resolution, pursuant to the Ralph M. Brown Act or the Bagley-Keene Open Meeting Act, as applicable; and,
Does either of the following:
Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract; or,
Provides, at least 30 days prior to the hearing, held pursuant to 6)a) above, written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. Requires the notice, at minimum, to include a full copy of the proposed contract.
Requires a resolution of application to be submitted with a plan for services, which must include the following:
A total estimated cost to provide the new or extended fire protection services in the affected territory;
The estimated cost of the new or extended fire protection services to customers in the affected territory;
An identification of existing service providers, if any, and the potential fiscal impact to the customers in the affected territory;
A plan for financing the exercise of new or extended fire protection services;
Alternatives for the exercise of new or extended services in the affected territory;
An enumeration and description of the new or extended fire protection services proposed to be extended in the affected territory;
The level and range of new or extended fire protection services;
An indication of when the new or extended fire protection services can feasibly be extended to the affected territory;
An indication of any improvement or upgrades to structures, roads, sewer or water facilities, or other conditions that the public agency would impose or require within the affected territory if the contract is completed; and,
A determination, supported by documentation, that the proposed fire protection contract meets the criteria established by this bill.
Requires the applicant to cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application. Requires the independent comprehensive fiscal analysis to review and document all of the following:
A thorough review of the plan for services submitted by the public agency, as specified;
How the costs of the existing service provider compare to the costs to services provided in service areas with similar populations and geographic size that provide a similar level and range of services, and to make a reasonable determination of the costs expected to be borne by a public agency providing new or extended fire protection services; and,
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection contract.
Requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO's executive officer.
Requires an executive officer, within 30 days of receipt, to determine whether the request is complete and acceptable for filing. Establishes specified requirements for an executive officer if the request is incomplete.
Requires the LAFCO to approve, disapprove, or approve with conditions the contract for new or extended fire protection services following the LAFCO hearing.
Allows the applicant to request reconsideration, as specified, if the contract is disapproved or approved with conditions.
Prohibits LAFCO from approving an application for approval of a fire protection contract, unless it determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in 14) below.
Authorizes LAFCO to approve an application for approval of a fire protection contract where the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or loss of services, if LAFCO conditions its approval on the concurrent approval of sufficient revenue sources. Requires LAFCO to provide that if the revenue sources are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
Prohibits LAFCO from approving an application for the approval of a fire protection contract, unless the LAFCO determines, based on the entire record, all of the following:
The proposed exercise of new or extended fire protection services outside a public agency's current service area is consistent with requirements established by this bill and with the policies and legislative intent established in the Act;
The LAFCO has reviewed the comprehensive fiscal analysis;
The LAFCO has reviewed any testimony presented at the public hearing; and,
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
Requires an executive officer, at least 21 days prior to the date of the hearing, to give mailed notice of the hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer.
Establishes additional Internet and newspaper posting requirements, as specified.
Allows LAFCOs to continue from time to time any hearing called pursuant to this bill and requires LAFCOs to hear and consider oral or written testimony presented by an affected local agency, county, or any interested person who appears at any hearing called pursuant to the process contained in this bill.
Prohibits this bill from being construed to abrogate a public agency's obligations under the Meyers-Milias Brown Act.
Exempts a fire protection contract, as defined by this bill, from the provisions in existing law which govern the process for outside service extension contracts contained in LAFCO law.
Finds and declares that this bill is not intended to change, alter, or in any way affect either of the following:
The existing jurisdiction of a LAFCO over proceedings that involve the provision of prehospital emergency medical services, or,
Mutual aid agreements, including mutual aid agreements entered into pursuant to specified existing law.
Contains chaptering out language to avoid conflicts with AB 402 (Dodd) of the current legislative session, currently pending in the Assembly.
Makes other technical and conforming changes.
EXISTING LAW:
Establishes the Cortese-Knox-Hertzberg Act (Act), which defines the procedures for the organization and reorganization of cities, counties, and special districts.
Authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries, if it requests and receives written approval from the LAFCO in the affected county.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries, but within its sphere of influence in anticipation of a later change of organization.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if specified requirements are met.
Provides exemptions to the requirement in existing law for specified contracts or agreements, including the following:
Contracts or agreements solely involving two or more public agencies where the public service is an alternative or substitute for public services already being provided by an existing public services provided, and there the level of service will be consistent with the level of service by the existing provider; and,
Extended service that a city or district was providing on or before January 1, 2001.
Requires the LAFCO or executive officer to approve, disapprove, or approve with conditions the contract for extended services. Allows an applicant, if a contract is disapproved or approved with conditions, to request reconsideration and cite the reasons why.
Defines public agency, pursuant to the Act, to mean the state or any state agency, board, or commission, any city, county, city and county, special district, or any agency board, or commission of the city, county, city and county, special district, joint powers authority, or other political subdivision.
Authorizes cities and fire protection districts to contract with a county to provide fire protection services within the local agency's jurisdiction.
Requires every contract between a county and a city for the furnishing of fire protection services by the county to the city, to be for a term of at least one year.
Authorizes counties to contract with CAL FIRE to provide fire protection services.
Authorizes a legislative body of any local agency, city, county fire protection district, joint powers authority that provides fire protection services, to contract with any other local agency for the furnishing of fire protection to such other local agency.
FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in "state responsibility areas," and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
COMMENTS:
Background. The Act delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs. The Legislature created LAFCOs to discourage urban sprawl, preserve open space and prime agricultural lands, encourage the orderly formation and development of local agencies, and to ensure the efficient provision of government services.
The Act requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries, pursuant to AB 1335 (Gotch), Chapter 1307, Statutes of 1993. This requirement was established because of a concern that some cities and districts might be circumventing LAFCO review by signing contracts to provide services outside their boundaries without annexing the territory. AB 1335, however, recognized the need to accommodate unexpected local conditions and purposely established several exemptions. For example, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
Due to this exemption in the Act, contracts and cooperative agreements, permitted under existing law, which allow cities and fire protection districts to contract with a county or local government to contract with CAL FIRE to provide fire protection services are not under LAFCO's purview. While in practice many LAFCOs are involved in the service provision, reorganization, and coordination between entities under their purview that provide fire protection services, they are not required to get LAFCO's approval before contracting with one another to provide service outside of their jurisdictional boundaries. Some contracts are for full responsibility, shifting entire services to the county or CAL FIRE, and others are used to supplement existing services. For CAL FIRE contracts alone, there are 149 reimbursable cooperative fire protection agreements in 35 of the state's 58 counties, 25 cities, 31 fire districts, and 34 other special districts and service areas.
Bill Summary. This bill requires a public agency to receive approval from LAFCO before providing fire protection services, pursuant to a fire protection contract. Under this bill, a fire protection contract is defined as a contract or agreement that is for the exercise of new or extended fire protection services outside a public agency's (city, city and county, county, state agency, joint powers authority) jurisdictional boundaries and is executed pursuant to existing law which authorizes local governments and CALFIRE to enter into fire protection services contracts and agreements. The fire protection contract must either transfer the responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement or change the employment status of more than 25% of the employees of any public agency affected by the contract or agreement. The definition of fire protection contract does not include mutual aid agreements or Amador plan agreements.
This bill establishes a separate approval process within LAFCO law for these fire protection service contracts and determines the application requirements, notice requirements, hearing requirements, independent financial review requirements, and findings that LAFCO must make in order to approve the fire protection service contracts between public agencies. The application, hearing, and notice requirements contained in this bill are substantially similar to the requirements for changes of organization contained in the Act. For example, this bill requires a public agency that is the applicant to submit a plan for services which requires information regarding the cost of services and a plan for financing services similar to a change of organization which includes annexation, formation, detachment, and consolidation or if a special district wants to provide new or different function or class or services within its jurisdictional boundaries under LAFCO law. However, in addition to the plan for services, the public agency must also obtain an independent fiscal analysis that must contain specified information.
This bill does not mirror all its requirements from the Act. For example, the inclusion of CAL FIRE under LAFCO's purview for the extension of services and the requirement of an applicant, before submitting an application to LAFCO, to either provide notification to each affected public agency and recognized employee organization that represents firefighters or obtain sign off from each affected public agency and recognized employee organization, are not contained in the Act.
This bill is sponsored by the California Professional Firefighters.
Author's Statement. According to the author, "Current law establishes specific LAFCO proceedings to consider new or different functions or services, or for the divestiture of power, by special districts. However, LAFCO's do not review and approve contracts or agreements for services between two public agencies. Moreover, such contracts do not require any specific information to be submitted or reviewed regarding the fiscal conditions of the public agency or potential impacts to service delivery. So when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure efficient and economical delivery for the agencies and all residents in the existing and affected territory. This bill extends LAFCO's jurisdiction to include contracts for services between public agencies for fire protection."
Policy Considerations: The Legislature may wish to consider the following:
Outside Service Extension. The notification, hearing, application, independent financial analysis, and required LAFCO findings contained in this bill are different than the process in place to have LAFCO review other outside service extensions. This bill is not simply removing the exemption in current law to require the existing LAFCO review for outside service extensions; it is instead applying the requirements for changes of organization to a contract between two public agencies to provide fire protection services. The Committee may wish to consider if these types of contracts warrant the creation of a new process under LAFCO law.
CAL FIRE. According to the California Association of Local Agency Formation Commissions, this bill would, for the first time, require a California state agency to apply for and request LAFCO approval prior to undertaking an action that involves the provision of services by means of a contract with a local agency, which is a great shift in the Act's applicability.
Independent Fiscal Analysis. To ensure the financial viability of the services proposed to be extended outside a public agency's service area, this bill establishes several requirements for financial analysis in the LAFCO process it creates. The public agency applicant must produce a plan for services, contract for an independent fiscal analysis and rely on a number of findings the LAFCO must be able to make in order to approve the service extension. In light of these extensive requirements, the Legislature may wish to consider: i) why the independent fiscal analysis is necessary; and, ii) why the independent fiscal analysis should not be completed by LAFCO, similar to the fiscal analysis undertaken by LAFCO in incorporations.
Arguments in Support. Supporters argue that this bill provides transparency and oversight when a public agency considers extending fire protection services outside of their current service area. Supporters of this bill point to communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy while failing to produce anticipated cost savings and administrative efficiencies.
The California Professional Firefighters argue, "LAFCO's current ability to review and approve contracts or agreements for services is much more restricted and lacks the authority to conduct a comprehensive review of the contracts, particularly when the contract or agreement is between two public agencies. While a LAFCO has the ability to approve contracts that include a local agency providing new or extended services outside its jurisdictional boundaries, that ability only applies very narrowly to cities and special districts and does not require any specific information to be submitted or reviewed by the LAFCO regarding the fiscal conditions of the public agency or potential impacts to service delivery.
"In addition, under current law, when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure that the public services proposed to be provided via contract will be efficient and economical for the public agencies involved and meet the service demands for all residents in the existing and affected territory. By requiring a public agency to submit their plan for extended services for fire protection to LAFCO for review and approval, this bill would ensure that the details regarding service delivery and costs are appropriately examined which benefits the residents, the public agency, and the firefighters in all of the affected areas."
Arguments in Opposition. Opposition argues that this bill creates severe budget implications, hampers the ability of public agencies to achieve cost-savings, and potentially disrupts emergency services. Opposition to this bill points out that in many of the communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy, have been worked out at the local level due to accountability to the voters and the election process.
The California Special Districts Association, League of California Cities, California State Association of Counties, the California Building Industry Association and the California Business Properties Association, in a joint letter, argue, "At a time when many agencies are facing increased financial pressures, this bill restricts the ability of fire protection providers to govern in the best interests of the affected residents and could potentially disrupt service entirely. Fire protection providers that negotiate service agreements are directly accountable to the communities they serve. LAFCOs are not, and should not be, tasked with making the day-to-day financial decisions for local agencies.
"This bill presents a significant unfunded mandate on the public agencies that must pay thousands of taxpayer dollars to fund each independent fiscal analysis. Similar to any significant budget decision, and before a public agency contracts with another public agency, it first conducts a thorough internal fiscal review in order to determine feasibility and any needs for increasing staff and equipment. This bill requires a second independent fiscal analysis that is duplicative and extremely costly. Estimates for an independent analysis start at $5,000 and can often cost in the tens of thousands of dollars based upon complexity. This ultimately reduces the amount of funds available for fire protection services."
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0001998
SB 239
Page 9
SENATE THIRD READING
SB 239
(Hertzberg)
As Amended August 31, 2015
Majority vote
SENATE VOTE: 26-12
Committee |
Votes |
Ayes |
Noes |
Local Government |
8-1 |
Maienschein, Gonzalez, Alejo, Chiu, Cooley, Linder, Low, Mullin |
Waldron |
Appropriations |
12-4 |
Gomez, Bloom, Bonta, Calderon, Nazarian, Eggman, Eduardo Garcia, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Gallagher, Jones, Wagner |
SUMMARY: Requires a public agency to receive approval from a local agency formation commission (LAFCO) to provide new or extended fire protections services outside its jurisdictional boundaries, pursuant to a fire protection contract. Specifically, this bill:
Requires a public agency to request and receive written approval from the LAFCO in the affected county before providing new or extended services, pursuant to a fire protection contract.
Defines a "fire protection contract" to mean a contract or agreement for the exercise of new or extended fire protection services outside a public agency's jurisdictional boundaries, and is executed pursuant to existing law which authorizes public agencies (which includes a city, county, city and county, special district, joint powers authority, and state agency) and the California Department of Forestry and Fire Protection (CAL FIRE) to enter into fire protection service contracts and agreements, that does either of the following:
Transfers responsibility for providing services in more than 25% of the area within the jurisdictional boundaries of any public agency affected by the contract or agreement; or,
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Requires that a contract or agreement for the exercise of new or extended fire protection services outside a public agency's jurisdictional boundaries, in combination with other contracts or agreements that would produce the results in 2) above, be deemed a fire protection contract, as defined by this bill.
Requires "jurisdictional boundaries" to include the territory of lands protected pursuant to a fire protection contract entered into on or before December 31, 2015. Requires an extension of a fire protection contract entered into on or before December 31, 2015, that would produce the results in 2) above, to be deemed a fire protection contract, as defined by this bill.
Requires a public agency to initiate a request for LAFCO's approval of new or extended services provided by a fire protection contract to be made by the adoption of a resolution of application, as follows:
For a public agency that is not a state agency, the legislative body of a public agency must initiate the application by the adoption of a resolution of application proposing to provide new or extended services outside the public agency's current service area;
For a public agency that is a state agency, the director of a state agency must initiate the application proposing to provide new or extended services outside their current service area, which must be approved by the Director of Finance; and,
For a public agency that is a local agency currently under contract with a state agency and proposing to provide new or extended services by the expansion of an existing contract or agreement, the public agency must initiate the application which must be approved by the Director of Finance.
Prohibits the legislative body of a public agency or the director of a state agency from submitting a resolution of application, unless the public agency or state agency do both of the following:
Conducts an open and public hearing on the resolution, pursuant to the Ralph M. Brown Act or the Bagley-Keene Open Meeting Act, as applicable; and,
Does either of the following:
Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract; or,
Provides, at least 30 days prior to the hearing, held pursuant to 6)a) above, written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. Requires the notice, at minimum, to include a full copy of the proposed contract.
Requires a resolution of application to be submitted with a plan for services, which must include the following:
A total estimated cost to provide the new or extended fire protection services in the affected territory;
The estimated cost of the new or extended fire protection services to customers in the affected territory;
An identification of existing service providers, if any, and the potential fiscal impact to the customers in the affected territory;
A plan for financing the exercise of new or extended fire protection services;
Alternatives for the exercise of new or extended services in the affected territory;
An enumeration and description of the new or extended fire protection services proposed to be extended in the affected territory;
The level and range of new or extended fire protection services;
An indication of when the new or extended fire protection services can feasibly be extended to the affected territory;
An indication of any improvement or upgrades to structures, roads, sewer or water facilities, or other conditions that the public agency would impose or require within the affected territory if the contract is completed; and,
A determination, supported by documentation, that the proposed fire protection contract meets the criteria established by this bill.
Requires the applicant to cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application. Requires the independent comprehensive fiscal analysis to review and document all of the following:
A thorough review of the plan for services submitted by the public agency, as specified;
How the costs of the existing service provider compare to the costs to services provided in service areas with similar populations and geographic size that provide a similar level and range of services, and to make a reasonable determination of the costs expected to be borne by a public agency providing new or extended fire protection services; and,
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection contract.
Requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO's executive officer.
Requires an executive officer, within 30 days of receipt, to determine whether the request is complete and acceptable for filing. Establishes specified requirements for an executive officer if the request is incomplete.
Requires the LAFCO to approve, disapprove, or approve with conditions the contract for new or extended fire protection services following the LAFCO hearing.
Allows the applicant to request reconsideration, as specified, if the contract is disapproved or approved with conditions.
Prohibits LAFCO from approving an application for approval of a fire protection contract, unless it determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in 14) below.
Authorizes LAFCO to approve an application for approval of a fire protection contract where the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or loss of services, if LAFCO conditions its approval on the concurrent approval of sufficient revenue sources. Requires LAFCO to provide that if the revenue sources are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
Prohibits LAFCO from approving an application for the approval of a fire protection contract, unless the LAFCO determines, based on the entire record, all of the following:
The proposed exercise of new or extended fire protection services outside a public agency's current service area is consistent with requirements established by this bill and with the policies and legislative intent established in the Act;
The LAFCO has reviewed the comprehensive fiscal analysis;
The LAFCO has reviewed any testimony presented at the public hearing; and,
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
Requires an executive officer, at least 21 days prior to the date of the hearing, to give mailed notice of the hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer.
Establishes additional Internet and newspaper posting requirements, as specified.
Allows LAFCOs to continue from time to time any hearing called pursuant to this bill and requires LAFCOs to hear and consider oral or written testimony presented by an affected local agency, county, or any interested person who appears at any hearing called pursuant to the process contained in this bill.
Prohibits this bill from being construed to abrogate a public agency's obligations under the Meyers-Milias Brown Act.
Exempts a fire protection contract, as defined by this bill, from the provisions in existing law which govern the process for outside service extension contracts contained in LAFCO law.
Finds and declares that this bill is not intended to change, alter, or in any way affect either of the following:
The existing jurisdiction of a LAFCO over proceedings that involve the provision of prehospital emergency medical services, or,
Mutual aid agreements, including mutual aid agreements entered into pursuant to specified existing law.
Makes other technical and conforming changes.
EXISTING LAW:
Establishes the Cortese-Knox-Hertzberg Act (Act), which defines the procedures for the organization and reorganization of cities, counties, and special districts.
Authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries, if it requests and receives written approval from the LAFCO in the affected county.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries, but within its sphere of influence in anticipation of a later change of organization.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if specified requirements are met.
Provides exemptions to the requirement in existing law for specified contracts or agreements, including the following:
Contracts or agreements solely involving two or more public agencies where the public service is an alternative or substitute for public services already being provided by an existing public services provided, and there the level of service will be consistent with the level of service by the existing provider; and,
Extended service that a city or district was providing on or before January 1, 2001.
Requires the LAFCO or executive officer to approve, disapprove, or approve with conditions the contract for extended services. Allows an applicant, if a contract is disapproved or approved with conditions, to request reconsideration and cite the reasons why.
Defines public agency, pursuant to the Act, to mean the state or any state agency, board, or commission, any city, county, city and county, special district, or any agency board, or commission of the city, county, city and county, special district, joint powers authority, or other political subdivision.
Authorizes cities and fire protection districts to contract with a county to provide fire protection services within the local agency's jurisdiction.
Requires every contract between a county and a city for the furnishing of fire protection services by the county to the city, to be for a term of at least one year.
Authorizes counties to contract with CAL FIRE to provide fire protection services.
Authorizes a legislative body of any local agency, city, county fire protection district, joint powers authority that provides fire protection services, to contract with any other local agency for the furnishing of fire protection to such other local agency.
FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in "state responsibility areas," and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
COMMENTS:
Background. The Act delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs. The Legislature created LAFCOs to discourage urban sprawl, preserve open space and prime agricultural lands, encourage the orderly formation and development of local agencies, and to ensure the efficient provision of government services.
The Act requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries, pursuant to AB 1335 (Gotch), Chapter 1307, Statutes of 1993. This requirement was established because of a concern that some cities and districts might be circumventing LAFCO review by signing contracts to provide services outside their boundaries without annexing the territory. AB 1335, however, recognized the need to accommodate unexpected local conditions and purposely established several exemptions. For example, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
Due to this exemption in the Act, contracts and cooperative agreements, permitted under existing law, which allow cities and fire protection districts to contract with a county or local government to contract with CAL FIRE to provide fire protection services are not under LAFCO's purview. While in practice many LAFCOs are involved in the service provision, reorganization, and coordination between entities under their purview that provide fire protection services, they are not required to get LAFCO's approval before contracting with one another to provide service outside of their jurisdictional boundaries. Some contracts are for full responsibility, shifting entire services to the county or CAL FIRE, and others are used to supplement existing services. For CAL FIRE contracts alone, there are 149 reimbursable cooperative fire protection agreements in 35 of the state's 58 counties, 25 cities, 31 fire districts, and 34 other special districts and service areas.
Bill Summary. This bill requires a public agency to receive approval from LAFCO before providing fire protection services, pursuant to a fire protection contract. Under this bill, a fire protection contract is defined as a contract or agreement that is for the exercise of new or extended fire protection services outside a public agency's (city, city and county, county, state agency, joint powers authority) jurisdictional boundaries and is executed pursuant to existing law which authorizes local governments and CALFIRE to enter into fire protection services contracts and agreements. The fire protection contract must either transfer the responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement or change the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
This bill establishes a separate approval process within LAFCO law for these fire protection service contracts and determines the application requirements, notice requirements, hearing requirements, independent financial review requirements, and findings that LAFCO must make in order to approve the fire protection service contracts between public agencies. The application, hearing, and notice requirements contained in this bill are substantially similar to the requirements for changes of organization contained in the Act. For example, this bill requires a public agency that is the applicant to submit a plan for services which requires information regarding the cost of services and a plan for financing services similar to a change of organization which includes annexation, formation, detachment, and consolidation or if a special district wants to provide new or different function or class or services within its jurisdictional boundaries under LAFCO law. However, in addition to the plan for services, the public agency must also obtain an independent fiscal analysis that must contain specified information.
This bill does not mirror all its requirements from the Act. For example, the inclusion of CAL FIRE under LAFCO's purview for the extension of services and the requirement of an applicant, before submitting an application to LAFCO, to either provide notification to each affected public agency and recognized employee organization that represents firefighters or obtain sign off from each affected public agency and recognized employee organization, are not contained in the Act.
This bill is sponsored by the California Professional Firefighters.
Author's Statement. According to the author, "Current law establishes specific LAFCO proceedings to consider new or different functions or services, or for the divestiture of power, by special districts. However, LAFCO's do not review and approve contracts or agreements for services between two public agencies. Moreover, such contracts do not require any specific information to be submitted or reviewed regarding the fiscal conditions of the public agency or potential impacts to service delivery. So when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure efficient and economical delivery for the agencies and all residents in the existing and affected territory. This bill extends LAFCO's jurisdiction to include contracts for services between public agencies for fire protection."
Policy Considerations: The Legislature may wish to consider the following:
Outside Service Extension. The notification, hearing, application, independent financial analysis, and required LAFCO findings contained in this bill are different than the process in place to have LAFCO review other outside service extensions. This bill is not simply removing the exemption in current law to require the existing LAFCO review for outside service extensions; it is instead applying the requirements for changes of organization to a contract between two public agencies to provide fire protection services. The Committee may wish to consider if these types of contracts warrant the creation of a new process under LAFCO law.
CAL FIRE. According to the California Association of Local Agency Formation Commissions, this bill would, for the first time, require a California state agency to apply for and request LAFCO approval prior to undertaking an action that involves the provision of services by means of a contract with a local agency, which is a great shift in the Act's applicability.
Independent Fiscal Analysis. To ensure the financial viability of the services proposed to be extended outside a public agency's service area, this bill establishes several requirements for financial analysis in the LAFCO process it creates. The public agency applicant must produce a plan for services, contract for an independent fiscal analysis and rely on a number of findings the LAFCO must be able to make in order to approve the service extension. In light of these extensive requirements, the Legislature may wish to consider: i) why the independent fiscal analysis is necessary; and, ii) why the independent fiscal analysis should not be completed by LAFCO, similar to the fiscal analysis undertaken by LAFCO in incorporations.
Opposition to this bill notes that the comprehensive fiscal analysis required by this bill is far beyond any other requirements in LAFCO law associated with extension of services, and that the requirements would add substantially to the cost of providing services.
Technical Issues. The Legislature may wish to encourage the author to continue to work on the definition used in this bill for fire protection contracts and to consistently refer to "jurisdictional boundary" instead of "service area".
Conflicting Legislation. Provisions of this bill conflict with AB 402 (Dodd) of the current legislative session, which is currently pending on the Senate Floor, and may need amendments to address the conflict, should the bills continue to move through the legislative process.
Arguments in Support. Supporters argue that this bill provides transparency and oversight when a public agency considers extending fire protection services outside of their current service area. Supporters of this bill point to communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy while failing to produce anticipated cost savings and administrative efficiencies.
The California Professional Firefighters argue, "LAFCO's current ability to review and approve contracts or agreements for services is much more restricted and lacks the authority to conduct a comprehensive review of the contracts, particularly when the contract or agreement is between two public agencies. While a LAFCO has the ability to approve contracts that include a local agency providing new or extended services outside its jurisdictional boundaries, that ability only applies very narrowly to cities and special districts and does not require any specific information to be submitted or reviewed by the LAFCO regarding the fiscal conditions of the public agency or potential impacts to service delivery.
"In addition, under current law, when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure that the public services proposed to be provided via contract will be efficient and economical for the public agencies involved and meet the service demands for all residents in the existing and affected territory. By requiring a public agency to submit their plan for extended services for fire protection to LAFCO for review and approval, this bill would ensure that the details regarding service delivery and costs are appropriately examined which benefits the residents, the public agency, and the firefighters in all of the affected areas."
Arguments in Opposition. Opposition argues that this bill creates severe budget implications, hampers the ability of public agencies to achieve cost-savings, and potentially disrupts emergency services. Opposition to this bill points out that in many of the communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy, have been worked out at the local level due to accountability to the voters and the election process.
The California Special Districts Association, League of California Cities, California State Association of Counties, the California Building Industry Association and the California Business Properties Association, in a joint letter, argue, "At a time when many agencies are facing increased financial pressures, this bill restricts the ability of fire protection providers to govern in the best interests of the affected residents and could potentially disrupt service entirely. Fire protection providers that negotiate service agreements are directly accountable to the communities they serve. LAFCOs are not, and should not be, tasked with making the day-to-day financial decisions for local agencies.
"This bill presents a significant unfunded mandate on the public agencies that must pay thousands of taxpayer dollars to fund each independent fiscal analysis. Similar to any significant budget decision, and before a public agency contracts with another public agency, it first conducts a thorough internal fiscal review in order to determine feasibility and any needs for increasing staff and equipment. This bill requires a second independent fiscal analysis that is duplicative and extremely costly. Estimates for an independent analysis start at $5,000 and can often cost in the tens of thousands of dollars based upon complexity. This ultimately reduces the amount of funds available for fire protection services."
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0001638
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 239
(Hertzberg) – As Amended June 1, 2015
Policy Committee: |
Local Government |
Vote: |
8 - 1 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires written approval from a local agency formation commission (LAFCO) before a public agency can contract for fire protection services outside its current service area. The bill prescribes a public process for approving a fire protection reorganization contract, including a requirement that, prior to submitting an application to the LAFCO, a public agency must obtain written consent to the proposal from each affected public agency and the recognized employee organization representing firefighters of both the existing and proposed service providers, and conduct a public hearing.
FISCAL EFFECT:
Unknown increased GF costs to the Department of Forestry and Fire Protection (CAL FIRE), likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services. CAL FIRE currently has 115 contracts with local agencies for full fire protection services, and the contracts typically have a duration of three years. It is likely that all of those contracts would meet the criteria in the bill requiring LAFCO approval. For illustrative purposes, if CAL FIRE incurred additional costs of $10,000 to extend 38 fire protection contracts in a year through the LAFCO process, annual administrative costs would be $380,000. It is likely that CAL FIRE would incur higher costs to assess the impacts of contracts for larger service areas.
Unknown, potentially significant impact on CAL FIRE fire protection costs (GF). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in “state responsibility areas,” and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
COMMENTS:
Purpose. According to the author, "Current law establishes specific LAFCO proceedings to consider new or different functions or services, or for the divestiture of power, by special districts. However, LAFCO’s do not review and approve contracts or agreements for services between two public agencies. Moreover, such contracts do not require any specific information to be submitted or reviewed regarding the fiscal conditions of the public agency or potential impacts to service delivery. SB 239 extends LAFCO’s jurisdiction to include contracts for services between public agencies for fire protection.”
Background. Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act, delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs. The Act authorizes a city or county to provide new or extended services by contract or agreement outside its jurisdictional boundaries if it receives written approval from the LAFCO in the affected county. This requirement does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
Existing law authorizes cities and fire protection districts to enter into contracts with counties to provide fire protection services within a local agency’s jurisdiction. In addition, cities, counties, and districts can enter into cooperative agreements with CAL FIRE to provide fire protection services. CAL FIRE currently has 149 contracts with a value of over $300 million to provide a variety of fire protection services to local governments (Schedule A Agreements), ranging from dispatch services to full service fire protection. CAL FIRE typically enters into an average of two new contracts each year to provide local fire protection services; the contracts typically have a duration of three years and must be mutually beneficial. CAL FIRE also has six contracts with counties with a value of over $50 million to provide wildland fire protection in State Responsibility Areas on behalf of the state (Contract County Agreements).
Arguments in Support. Firefighter organizations argue that this bill provides transparency and oversight when a public agency considers extending fire protection services outside of their current service area. They point to communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy while failing to produce anticipated cost savings and administrative efficiencies.
Arguments in Opposition. Local government organizations argue that this bill “restricts the ability of fire protection providers to govern in the best interests of the affected residents and could potentially disrupt service entirely. Fire protection providers that negotiate service agreements are directly accountable to the communities they serve. LAFCOs are not, and should not be, tasked with making the day-to-day financial decisions for local agencies.”
They continue that this bill “presents a significant unfunded mandate on the public agencies that must pay thousands of taxpayer dollars to fund each independent fiscal analysis. Similar to any significant budget decision, and before a public agency contracts with another public agency, it first conducts a thorough internal fiscal review in order to determine feasibility and any needs for increasing staff and equipment. This bill requires a second independent fiscal analysis that is duplicative and extremely costly. Estimates for an independent analysis start at $5,000 and can often cost in the tens of thousands of dollars based upon complexity. This ultimately reduces the amount of funds available for fire protection services."
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
SB 239
Page 10
Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
SB 239
(Hertzberg) – As Amended June 1, 2015
SENATE VOTE: 26-12
SUBJECT: Local services: contracts: fire protection services.
SUMMARY: Requires a public agency to receive approval from a local agency formation commission (LAFCO) to provide new or extended fire protections services outside its service area, pursuant to a fire protection contract. Specifically, this bill:
Requires a public agency to request and receive written approval from the LAFCO in the affected county before providing new or extended services, pursuant to a fire protection contract.
Defines a "fire protection contract" to mean a contract or agreement for the exercise of new or extended fire protection services outside a public agency's current service area, and is executed pursuant to existing law which authorizes public agencies (which includes a city, county, city and county, special district, joint powers authority, and state agency) and the California Department of Forestry and Fire Protection (CAL FIRE) to enter into fire protection service contracts and agreements, that does either of the following:
Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement; or,
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Requires that a contract or agreement for the exercise of new or extended fire protection services outside a public agency's current services area, in combination with other contracts or agreement that would produce the results in 2), above, be deemed a fire protection contract, as defined by this bill.
Requires a public agency to initiate a request for LAFCO's approval of new or extended services provided by a fire protection contract to be made by the adoption of a resolution
of application, as follows:
The legislative body of a public agency must initiate the application by the adoption of a resolution of application proposing to provide new or extended services outside the public agency's current service area; and,
The director of a state agency must initiate the application proposing to provide new or extended services outside their current service area, which must be approved by the Director of Finance.
Prohibits the legislative body of a public agency or the director of a state agency from submitting a resolution of application, unless the public agency or state agency do both of the following:
Conducts an open and public hearing on the resolution, pursuant to the Ralph M. Brown Act or the Bagley-Keene Open Meeting Act, as applicable; and,
Does either of the following:
Obtains and submits with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed fire protection contract; or,
Provides, at least 30 days prior to the hearing, held pursuant to a), above, written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submits a copy of each written notice with the resolution of application. Requires the notice, at minimum, to include a full copy of the proposed contract.
Requires a resolution of application to be submitted with a plan for services, which must include the following:
A total estimated cost to provide the new or extended fire protection services in the affected territory;
The estimated cost of the new or extended fire protection services to customers in the affected territory;
An identification of existing service providers, if any, and the potential fiscal impact to the customers in the affected territory;
A plan for financing the exercise of new or extended fire protection services;
Alternatives for the exercise of new or extended services in the affected territory;
An enumeration and description of the new or extended fire protection services proposed to be extended in the affected territory;
The level and range of new or extended fire protection services;
An indication of when the new or extended fire protection services can feasibly be extended to the affected territory; and,
An indication of any improvement or upgrades to structures, roads, sewer or water facilities, or other conditions that the public agency would impose or require within the affected territory if the contract is completed.
Requires the applicant to cause to be prepared by contract an independent comprehensive fiscal analysis to be submitted with the application. Requires the independent comprehensive fiscal analysis to review and document all of the following:
The costs to the public agency that has proposed to provide new or extended fire protection services during the three fiscal years following a public agency entering into a contract to provide new or extended services outside its current service area by contract or agreement, in accordance with the following requirements:
Requires the analysis to include all direct and indirect cost impacts to the existing service provider in the affected territory; and,
Requires the analysis to review how the costs of the existing service provider compare to the costs to services provided in service areas with similar populations and geographic size that provide a similar level and range of services, and to make a reasonable determination of the costs expected to be borne by a public agency providing new or extended fire protection services;
The revenues of the public agency that has proposed a new or extended service outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service;
The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended service, during the three fiscal years that the new or extended service will be provided; and,
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection contract.
Requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO's executive officer.
Requires an executive officer, within 30 days of receipt, to determine whether the request is complete and acceptable for filing. Establishes specified requirements for an executive officer if the request is incomplete.
Requires the LAFCO to approve, disapprove, or approve with conditions the contract for new or extended fire protection services following the LAFCO hearing.
Allows the applicant to request reconsideration, as specified, if the contract is disapproved or approved with conditions.
Prohibits LAFCO from approving an application for approval of a fire protection contract, unless it determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended fire protection services outside its current area, except as specified in 13), below.
Authorizes LAFCO to approve an application for approval of a fire protection contract where the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or loss of services, if LAFCO conditions its approval on the concurrent approval of sufficient revenue sources. Requires LAFCO to provide that if the revenue sources are not approved, the authority of the public agency to provide new or extended fire protection services shall not be exercised.
Prohibits LAFCO from approving an application for the approval of a fire protection contract, unless the LAFCO finds, based on the entire record, all of the following:
The proposed exercise of new or extended fire protection services outside a public agency's current service area is consistent with requirements established by this bill and with the policies and legislative intent established in the Act;
The LAFCO has reviewed the comprehensive fiscal analysis;
The LAFCO has reviewed any testimony presented at the public hearing; and,
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide the new or extended fire protection services.
Requires an executive officer, at least 21 days prior to the date of the hearing, to give mailed notice of the hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer.
Establishes additional Internet and newspaper posting requirements, as specified.
Allows LAFCOs to continue from time to time any hearing called pursuant to this bill and requires LAFCOs to hear and consider oral or written testimony presented by an affected local agency, county, or any interested person who appears at any hearing called pursuant to the process contained in this bill.
Prohibits this bill from being construed to abrogate a public agency's obligations under the Meyers-Millias Brown Act.
Exempts a fire protection contract, as defined by this bill, from the provisions in existing law which govern the process for outside service extension contracts contained in LAFCO law.
Makes other technical and conforming changes.
Makes findings and declarations.
EXISTING LAW:
Establishes the Cortese-Knox-Hertzberg Act (Act), which defines the procedures for the organization and reorganization of cities, counties, and special districts.
Authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries, if it requests and receives written approval from the LAFCO in the affected county.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries, but within its sphere of influence in anticipation of a later change of organization.
Allows a LAFCO to authorize a city or district to provide new or extended services outside its boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory, if both of the following requirements are met:
The entity applying for the contract has provided LAFCO with documentation of a threat to the health and safety of the public or the affected residents; and,
The LAFCO has notified any alternate service providers, including any water corporation or sewer system corporation that has filed a map and statement of service capabilities with the LAFCO.
Provides exemptions to the requirement in existing law for the following contracts or agreements:
Contracts or agreements solely involving two or more public agencies where the public service is an alternative or substitute for public services already being provided by an existing public services provided, and there the level of service will be consistent with the level of service by the existing provider;
Contracts for the transfer of nonpotable or nontreated water;
Contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, as specified;
Extended service that a city or district was providing on or before January 1, 2001; and,
Local publicly owned electric utility, as defined, providing electric services that do not involve the acquisition, construction or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utility's jurisdictional boundaries.
Establishes requirements and a timeframe for an executive officer upon receipt of a request for approval by a city or district of a contract to extend services outside boundaries. Requires, upon receipt of a complete request, the request to be placed on the agenda of a LAFCO meeting, unless the LAFCO has delegated the approval of requests to the executive commissioner.
Requires the LAFCO or executive officer to approve, disapprove, or approve with conditions the contract for extended services. Allows an applicant, if a contract is disapproved or approved with conditions, to request reconsideration and cite the reasons why.
Defines public agency, pursuant to the Act, to mean the state or any state agency, board, or commission, any city, county, city and county, special district, or any agency board, or commission of the city, county, city and county, special district, joint powers authority, or other political subdivision.
Authorizes cities and fire protection districts to contract with a county to provide fire protection services within the local agency's jurisdiction.
Requires every contract between a county and a city for the furnishing of fire protection services by the county to the city, to be for a term of at least one year.
Authorizes counties to contract with CAL FIRE to provide fire protection services.
Authorizes a legislative body of any local agency, city, county fire protection district, joint powers authority that provides fire protection services, to contract with any other local agency for the furnishing of fire protection to such other local agency.
FISCAL EFFECT: According to the Senate Appropriations Committee, unknown increased General Fund costs to CAL FIRE, likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services. CAL FIRE currently has 115 contracts with local agencies for full fire protection services, and the contracts typically have a duration of three years. It is likely that all of those contracts would meet the criteria in the bill requiring LAFCO approval. For illustrative purposes, if CAL FIRE incurred additional costs of $10,000 to extend 38 fire protection contracts in a year through the LAFCO process, annual administrative costs would be $380,000. It is likely that CAL FIRE would incur higher costs to assess the impacts of contracts for larger service areas. Unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in “state responsibility areas,” and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. These contracts must be mutually beneficial and cost-effective. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
COMMENTS:
Background. The Act delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs. The Legislature created LAFCOs to discourage urban sprawl, preserve open space and prime agricultural lands, encourage the orderly formation and development of local agencies, and to ensure the efficient provision of government services.
The Act requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries, pursuant to AB 1335 (Gotch), Chapter 1307, Statutes of 1993. This requirement was established because of a concern that some cities and districts might be circumventing LAFCO review by signing contracts to provide services outside their boundaries without annexing the territory. AB 1335, however, recognized the need to accommodate unexpected local conditions and purposely established several exemptions. For example, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
Due to this exemption in the Act, contracts and cooperative agreements, permitted under existing law, which allow cities and fire protection districts to contract with a county or local government to contract with CAL FIRE to provide fire protection services are not under LAFCO's purview. While in practice many LAFCOs are involved in the service provision, reorganization, and coordination between entities under their purview that provide fire protection services, they are not required to get LAFCO's approval before contracting with one another to provide service outside of their jurisdictional boundaries. Some contracts are for full responsibility, shifting entire services to the county or CAL FIRE, and others are used to supplement existing services. For CAL FIRE contracts alone, there are 149 reimbursable cooperative fire protection agreements in 35 of the state’s 58 counties, 25 cities, 31 fire districts, and 34 other special districts and service areas.
Bill Summary. This bill requires a public agency to receive approval from LAFCO before providing fire protection services, pursuant to a fire protection contract. Under this bill, a fire protection contract is defined as a contract or agreement that is for the exercise of new or extended fire protection services outside a public agency's (city, city and county, county, state agency, joint powers authority) current service area and is executed pursuant to existing law which authorizes local governments and CALFIRE to enter into fire protection services contracts and agreements. The fire protection contract must either transfer the responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement or change the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
This bill establishes a separate approval process within LAFCO law for these fire protection service contracts and determines the application requirements, notice requirements, hearing requirements, independent financial review requirements, and findings that LAFCO must make in order to approve the fire protection service contracts between public agencies. The application, hearing, and notice requirements contained in this bill are substantially similar to the requirements for changes of organization contained in the Act. For example, this bill requires a public agency that is the applicant to submit a plan for services which requires information regarding the cost of services and a plan for financing services similar to a change of organization which includes annexation, formation, detachment, and consolidation or if a special district wants to provide new or different function or class or services within its jurisdictional boundaries under LAFCO law. However, in addition to the plan for services, the public agency must also obtain an independent fiscal analysis that must contain specified information.
This bill does not mirror all its requirements from the Act. For example, the inclusion of CAL FIRE under LAFCO's purview for the extension of services and the requirement of an applicant, before submitting an application to LAFCO, to either provide notification to each affected public agency and recognized employee organization that represents firefighters or obtain sign off from each affected public agency and recognized employee organization, are not contained in the Act.
This bill is sponsored by the California Professional Firefighters.
Author's Statement. According to the author, "Current law establishes specific LAFCO proceedings to consider new or different functions or services, or for the divestiture of power, by special districts. However, LAFCO’s do not review and approve contracts or agreements for services between two public agencies. Moreover, such contracts do not require any specific information to be submitted or reviewed regarding the fiscal conditions of the public agency or potential impacts to service delivery. So when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure efficient and economical delivery for the agencies and all residents in the existing and affected territory.
"SB 239 extends LAFCO’s jurisdiction to include contracts for services between public agencies for fire protection. Specifically, this bill requires that the public agency that has proposed a contract for new or extended fire protection to go through a specified LAFCO process. As part of this process, the agency will submit specified information to LAFCO regarding the contract and provide notification."
Policy Considerations: The Committee may wish to consider the following:
Outside Service Extension. The notification, hearing, application, independent financial analysis, and required LAFCO findings contained in this bill are different than the process in place to have LAFCO review other outside service extensions. This bill is not simply removing the exemption in current law to require the existing LAFCO review for outside service extensions; it is instead applying the requirements for changes of organization to a contract between two public agencies to provide fire protection services. The Committee may wish to consider if these types of contracts warrant the creation of a new process under LAFCO law.
CAL FIRE. According to the California Association of Local Agency Formation Commissions, this bill would, for the first time, require a California state agency to apply for and request LAFCO approval prior to undertaking an action that involves the provision of services by means of a contract with a local agency, which is a great shift in the Act's applicability.
Independent Fiscal Analysis. To ensure the financial viability of the services proposed to be extended outside a public agency's service area, this bill establishes several requirements for financial analysis in the LAFCO process it creates. The public agency applicant must produce a plan for services, contract for an independent fiscal analysis and rely on a number of findings the LAFCO must be able to make in order to approve the service extension. In light of these extensive requirements, the Committee may wish to consider: 1) why the independent fiscal analysis is necessary; and, 2) why the independent fiscal analysis should not be completed by LAFCO, similar to the fiscal analysis undertaken by LAFCO in incorporations.
Opposition to this bill notes that the comprehensive fiscal analysis required by this bill is far beyond any other requirements in LAFCO law associated with extension of services, and that the requirements would add substantially to the cost of providing services.
Technical Issues. The Committee may wish to consider the following technical issues:
Threshold Determinations. This bill only applies to fire protection contracts that meet a 25% threshold for either service area or employee status. The Committee may wish to note that the bill is silent on who determines this threshold.
Definitions and Applicability. The term "service area" is not defined in the Act, therefore, the Committee may wish to ask the author why "service area" is used instead of "jurisdictional boundary" which is used throughout the Act, including the provisions that govern the extension of services.
The Committee may wish to encourage the author to continue to work on the definition used in this bill for fire protection contracts because it is still unclear which fire protection contracts must be approved by LAFCO.
Conflicting Legislation. Provisions of this bill conflict with AB 402 (Dodd), which is currently pending on the Senate Floor, and may need amendments to address the conflict, should the bills continue to move through the legislative process.
Arguments in Support. Supporters argue that this bill provides transparency and oversight when a public agency considers extending fire protection services outside of their current service area. Supporters of this bill point to communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy while failing to produce anticipated cost savings and administrative efficiencies.
The California Professional Firefighters argue, "Current law
establishes specific LAFCO proceeding to consider new or different
functions or services, or for the divestiture of power,
by
special districts. However, a LAFCO's current ability to review and
approve contracts or agreements for services is much more restricted
and lacks the authority to conduct a comprehensive review of the
contracts, particularly when the contract or agreement is between two
public agencies. While a LAFCO has the ability to approve contracts
that include a local agency providing new or extended services
outside its jurisdictional boundaries, that ability only applies very
narrowly to cities and special districts and does not require any
specific information to be submitted or reviewed by the LAFCO
regarding the fiscal conditions of the public agency or potential
impacts to service delivery.
"In addition, under current law, when such a contract or agreement is made exclusively between two public agencies, there is no process to provide oversight and ensure that the public services proposed to be provided via contract will be efficient and economical for the public agencies involved and meet the service demands for all residents in the existing and affected territory. By requiring a public agency to submit their plan for extended services for fire protection to LAFCO for review and approval, this bill would ensure that the details regarding service delivery and costs are appropriately examined which benefits the residents, the public agency, and the firefighters in all of the affected areas."
Arguments in Opposition. Opposition argues that this bill creates severe budget implications, hampers the ability of public agencies to achieve cost-savings, and potentially disrupts emergency services. Opposition to this bill points out that in many of the communities that have entered into contracts to shift responsibility to provide fire protection services from one public agency to another, which have generated controversy, have been worked out at the local level due to accountability to the voters and the election process.
The California Special Districts Association, League of California Cities, California State Association of Counties, the California Building Industry Association and the California Business Properties Association, in a joint letter, argue, "At a time when many agencies are facing increased financial pressures, this bill restricts the ability of fire protection providers to govern in the best interests of the affected residents and could potentially disrupt service entirely. Fire protection providers that negotiate service agreements are directly accountable to the communities they serve. LAFCOs are not, and should not be, tasked with making the day-to-day financial decisions for local agencies.
"This bill presents a significant unfunded mandate on the public agencies that must pay thousands of taxpayer dollars to fund each independent fiscal analysis. Similar to any significant budget decision, and before a public agency contracts with another public agency, it first conducts a thorough internal fiscal review in order to determine feasibility and any needs for increasing staff and equipment. This bill requires a second independent fiscal analysis that is duplicative and extremely costly. Estimates for an independent analysis start at $5,000 and can often cost in the tens of thousands of dollars based upon complexity. This ultimately reduces the amount of funds available for fire protection services."
REGISTERED SUPPORT / OPPOSITION:
Support
California Professional Firefighters [SPONSOR]
CAL FIRE, Local 2881
California Labor Federation
Opposition
California Building Industry Association
California Business Properties Association
California Special Districts Association
California State Association of Counties
Cities of Calimesa, Coalinga, Colton, Fortuna, Fremont, Hesperia, Highland, Indio, Lakewood, Montclair, and Rancho Mirage
Contra Costa County Fire Protection District
League of California Cities
Los Angeles County Board of Supervisors
Los Angeles County Division, League of California Cities
Madera County Board of Supervisors
North Tahoe Fire Protection District
Rural County Representatives of California
San Bernardino County Local Agency Formation Commission (unless amended)
San Diego Local Agency Formation Commission
San Luis Obispo Local Agency Formation Commission
Santa Cruz Local Agency Formation Commission
Sonoma Local Agency Formation Commission
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958
SB 239
Page 8
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 239
Amended: 6/1/15
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 4/29/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Nguyen, Moorlach
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Local services: contracts: fire protection services
DIGEST: This bill requires a local agency formation commission (LAFCO) to review a contract or agreement for new or extended fire service outside of an existing service area.
Existing law:
Pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act, delegates the Legislature's power to control the boundaries of cities and special districts to LAFCOs.
Requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries (AB 1335, Gotch, Chapter 1307, Statutes of 1993). However, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
Allows cities and fire protection districts to contract with a county to provide fire protection services within the local agency’s jurisdiction.
Allows local governments to contract with the California Department of Forestry and Fire Protection (CAL FIRE) to provide fire protection services.
This bill:
Requires a public agency to obtain a LAFCO’s approval to provide new or extended services under a fire protection contract, pursuant to a specified approval process.
Defines a “fire protection contract” as a contract or agreement that:
Is for the exercise of new or extended fire protection services outside a public agency’s current service area;
Is executed pursuant to specified statutes allowing local governments and CALFIRE to enter into fire protection service contracts and agreements; and,
Does either of the following:
Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement.
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Applies the definition of a fire protection contract to a contract or agreement that, in combination with other contracts or agreements, meets the bill’s definition of a fire protection contract.
Requires a public agency to initiate a request for LAFCO approval of services provided under a fire protection contract by adopting a resolution of application as follows:
The legislative body of a public agency that is not a state agency must adopt a resolution of application proposing to provide new or extended services outside the public agency’s current service area.
The director of a state agency must initiate an application, which must be approved by the Director of Finance.
Requires that the legislative body of a public agency or the director of a state agency must do all of the following before submitting a resolution of application to the LAFCO:
Conduct an open and public hearing on the resolution, and
Do either of the following:
Obtain and submit with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
At least 30 days before the public hearing, provide written notice to each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers of the proposed fire protection contract and submit a copy of each written notice with the resolution of application. The notice must include a full copy of the proposed contract.
Requires that a proposal for a change of organization must be submitted with a plan prepared pursuant to specified statutory requirements. The plan must include:
A total cost estimate for providing new or extended services.
The estimated cost of the new or extended services to customers.
An identification of existing service providers and the potential fiscal impact to the customers of those existing providers.
A plan for financing the exercise of the new or extended services.
Alternatives for the exercise of the new or extended services.
An enumeration and description of the new or extended fire protection services proposed to be extended to the affected territory.
The level and range of new or extended fire protection services.
An indication of when the new or extended fire protection services can feasibly be extended to the affected territory.
An indication of any improvements or upgrades to structures, roads, sewer, and water facilities, or other conditions the public agency would impose or require within the affected territory of the fire protection contract is completed.
Requires a public agency to cause to be prepared by contract an independent comprehensive fiscal analysis that reviews and documents:
The costs to the public agency that has proposed to provide new or extended services during the three fiscal years following a public agency entering into a contract to provide new or extended services outside its current service area by contract or agreement, in accordance with specified requirements.
The revenues of the public agency that has proposed a new or extended service outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended service, during the three fiscal years that the new or extended service will be provided.
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection contract.
Requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO executive officer. This bill specifies how a LAFCO must process resolutions of application submitted to the executive officer.
Requires a LAFCO to review and approve, disapprove, or approve with conditions a fire protection reorganization contract after a public hearing called and held for that purpose. This bill allows an applicant to request reconsideration if a contract is disapproved or approved with conditions.
Generally prohibits a LAFCO from approving an application unless the LAFCO determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended services outside its current area. However, if the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, this bill allows a LAFCO to approve an application if the LAFCO conditions its approval on the concurrent approval of sufficient revenue sources pursuant to state law. In approving an application, the LAFCO must provide that if the revenue sources are not approved, the public agency’s authority to provide new or extended services must not be exercised.
Prohibits a LAFCO from approving an application for approval of a fire protection reorganization contract unless the LAFCO makes specified findings, based on the entire record.
Specifies the manner in which a LAFCO executive officer must provide public notice by mail, in a newspaper, and on the Internet, of a hearing to review an application for approval of a fire protection contract. This bill allows a LAFCO to continue a hearing and requires that a LAFCO must hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at the hearing.
Specifies that a fire protection contract is exempt from the statute that governs LAFCOs’ approval of extraterritorial service contracts.
Directs that its provisions must not be construed to abrogate a public agency’s obligations under the Meyers-Milias-Brown Act.
Makes additional technical and conforming changes to the Cortese-Knox-Hertzberg Act.
Background
Some of contracts and cooperative agreements for fire protection services result in a local department shifting all responsibility for providing fire protections services to a county or CAL FIRE, while others supplement existing local fire services with additional services provided by a county or CAL FIRE. However, because these contracts and agreements solely involve public agencies and existing services, they are not subject to LAFCO approval.
In some communities that recently entered into contracts or agreements that shifted the responsibility for providing fire protection services from one public agency to another, the agreements have generated controversy while failing to produce anticipated cost savings and administrative efficiencies. As a result, firefighters’ labor union officials want the Legislature to require LAFCOs to give fire protection service contracts and agreements more scrutiny than is required under current law.
Comments
Purpose of the bill. When a contract or agreement between two public agencies makes substantial changes to the administration of fire protection services in a community, it deserves to be scrutinized by LAFCO in a manner that is similar to how a detachment and annexation of fire protection services would be scrutinized under current law. When the Legislature enacted the 1993 Gotch bill requiring LAFCO review of some extraterritorial service contracts, it did so in response to concerns that local governments were using service contracts to circumvent LAFCO review of major changes to local service delivery. However, the review requirement for extraterritorial service contracts contained a substantial loophole for contracts that only involved public agencies. This bill will narrow that loophole. Some recent fire protection service contracts between public agencies have resulted in costly litigation and generated deep divisions among community members. Other agreements have been jeopardized by public officials’ reliance on financial data that later was determined to be inaccurate. Problems like these can be avoided by providing more opportunities for the public to review and consider independent analyses of proposed changes to fire service delivery in their communities. By requiring a public agency to submit a plan for extended services for fire protection to LAFCO for review and approval, this bill will ensure that the details of service delivery and costs are thoroughly and independently examined, which will benefit the residents, the public agency and the firefighters in all of the affected areas.
Local control. Local voters elect county supervisors, city council members, and special district board members to make public policy in response to local needs. Local elected officials strive to provide their communities’ residents with the best services at the most reasonable cost. They have to answer to residents who are displeased with the quality and cost of their services. As a result, a decision to enter into a contract with another public agency to provide fire protection services is a decision that elected officials make only after considering the fiscal, administrative, and service delivery implications for their communities. By requiring LAFCO review of fire protection reorganization contracts, this bill diminishes local officials’ autonomy to contract for fire protection services in the manner that they determine will best serve their constituents.
Next in line? Fire protection services aren’t the only kind of public service that local agencies provide outside of their boundaries pursuant to contracts with other public agencies. Local agencies commonly contract for law enforcement services, utility services, and park and recreation services, among others. Enacting this bill may invite requests from other interest groups for LAFCOs to more carefully scrutinize other types of contracts for services provided outside of existing service areas.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Unknown increased General Fund costs to the CAL FIRE, likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services.
Unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund).
California Professional Firefighters
CALFIRE Local 2881
California Labor Federation
OPPOSITION: (Verified 5/29/15)
Alameda County LAFCO
Apple Valley Fire Protection District
Bonita-Sunnyside Fire Protection District
California Association of LAFCOs
California Ambulance Association
California Building Industry Association
California Special Districts Association
California State Association of Counties
Chino Valley Fire District
Contra Costa County LAFCO
Covelo Fire Protection District
Happy Valley Fire Protection District
Hesperia Recreation & Park District
Fire Districts Association of California
Fresno County Fire Protection District
Hesperia Recreation and Park District
League of California Cities
Los Angeles County LAFCO
Madera County Board of Supervisors
Monterey County Business Council
Monterey County LAFCO
Monterey County Regional Fire District
Nevada County LAFCO
North County Fire Protection District
North Tahoe Fire Protection District
Orange County LAFCO
Riverside County LAFCO
Running Springs Water District
Rural County Representatives of California
San Diego County LAFCO
San Luis Obispo County LAFCO
San Mateo County LAFCO
Santa Cruz County LAFCO
Saratoga Fire District
Shasta Lake Fire Protection District
Squaw Valley Public Service District
Tuolumne Fire District
Prepared by: Brian Weinberger / GOV. & F. / (916) 651-4119
6/1/15 18:23:26
**** END ****
SB 239 (Hertzberg) Page 4 of 4
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 239 (Hertzberg) - Local services: contracts: fire protection services.
|
|
Version: April 23, 2015 |
Policy Vote: GOV. & F. 5 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: May 28, 2015 |
Consultant: Mark McKenzie |
SUSPENSE FILE. AS AMENDED.
Bill Summary:
SB 239 would require written approval from a local agency formation commission (LAFCO) before a public agency can contract for fire protection services outside its current service area. The bill would prescribe a public process for approving a fire protection reorganization contract, including a requirement that, prior to submitting an application to the LAFCO, a public agency must obtain written consent to the proposal from each affected public agency and the recognized employee organization representing firefighters of both the existing and proposed service providers, and conduct a public hearing.
Fiscal Impact (as approved on May 28, 2015):
Unknown increased General Fund costs to the Department of Forestry and Fire Protection (CAL FIRE), likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services. CAL FIRE currently has 115 contracts with local agencies for full fire protection services, and the contracts typically have a duration of three years. It is likely that all of those contracts would meet the criteria in the bill requiring LAFCO approval. For illustrative purposes, if CAL FIRE incurred additional costs of $10,000 to extend 38 fire protection contracts in a year through the LAFCO process, annual administrative costs would be $380,000. It is likely that CAL FIRE would incur higher costs to assess the impacts of contracts for larger service areas.
Unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in “state responsibility areas,” and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. These contracts must be mutually beneficial and cost-effective. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
Background:
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act, delegates the Legislature's power to control the boundaries of cities and special districts to local agency formation commissions (LAFCOs). The Act authorizes a city or county to provide new or extended services by contract or agreement outside its jurisdictional boundaries if it receives written approval from the LAFCO in the affected county. This requirement does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
Existing law authorizes cities and fire protection districts to enter into contracts with counties to provide fire protection services within a local agency’s jurisdiction. In addition, cities, counties, and districts can enter into cooperative agreements with CAL FIRE to provide fire protection services. CAL FIRE currently has 149 contracts with a value of over $300 million to provide a variety of fire protection services to local governments (Schedule A Agreements), ranging from dispatch services to full service fire protection. CAL FIRE typically enters into an average of two new contracts each year to provide local fire protection services; the contracts typically have a duration of three years and must be mutually beneficial. CAL FIRE also has 6 contracts with counties with a value of over $50 million to provide wildland fire protection in State Responsibility Areas on behalf of the state (Contract County Agreements).
Proposed Law:
SB 239 requires a state or local public agency to obtain a LAFCO’s written approval to provide new or extended services under a fire protection reorganization contract. Specifically, this bill would:
Define a “fire protection reorganization contract” as a contract or agreement that for the exercise of new or extended fire protection services outside a public agency’s current service area that does either of the following:
Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement.
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Require that a request submitted to LAFCO for approval of services provided under a fire protection reorganization contract be made as follows:
For a non-state public entity, by the adoption of a resolution of application by the legislative body proposing to provide those services outside the agency’s current service area.
For a state public entity, the director of the agency must initiate the application proposing to provide these services outside its current service area, and have the application approved by the Governor.
Prohibit the legislative body of a public agency or the director of a state public agency from submitting an application to LAFCO unless both of the following occur:
The public agency obtains and submits a written agreement validated and executed by each affected public agency and recognized employee organization representing firefighters of the existing and proposed service providers consenting to the proposed change of organization.
The public agency conducts an open and public hearing on the resolution.
Require that a resolution of application be submitted with a fire services reorganization contract plan that includes all of the following:
A total cost estimate for providing new or extended services.
The estimated cost of the new or extended services to customers.
An identification of existing service providers and the potential fiscal impact to the customers of those existing providers.
A plan for financing the exercise of the new or extended services.
Alternatives for the exercise of the new or extended services.
Require that a public agency to contract for an independent comprehensive fiscal analysis for submittal with the application that reviews and documents the following:
The costs to the applicant public agency during the three years following the effective date of a fire protection reorganization contract, including all direct and indirect costs, and a review of specified cost comparisons for similar service areas to reasonably determine expected costs.
The revenues of the applicant public agency during the three years following the effective date of contract with another public agency to provide a new or extended service.
The effects on the costs and revenues of any affected public agency, including the applicant public agency, during the three fiscal years that the new or extended service will be provided.
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under the contract.
Require the clerk of the public agency or the director of a state agency to file a certified copy of the resolution of application with the LAFCO executive officer.
Require the LAFCO executive officer to determine whether the application for approval is complete and acceptable within 30 days of receipt, as specified.
Require the LAFCO to approve, disapprove, or approved with conditions a fire protection reorganization contract following a public hearing on the proposal.
Prohibit the LAFCO from approving the application unless it determines the public agency will have sufficient revenues to carry out the fire protection reorganization contract, but allows for conditional approval on the concurrent approval of sufficient revenue sources, as provided.
Prohibit the LAFCO from approving the application unless it makes findings of all of the following:
The proposed exercise of new or extended services outside a public agency’s current service area is consistent with the Cortese-Knox-Hertzberg Act.
The commission has reviewed the comprehensive fiscal analysis.
The commission has reviewed the testimony presented at the public hearing.
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended service.
Specify the manner in which a LAFCO executive officer must provide public notice for the hearing to review an application for approval of a fire protection reorganization contract, and require the LAFCO to hear and consider all written and oral testimony by any affected local agency, county, or interested person.
Staff Comments:
This bill is intended to ensure that contracts to extend fire protection services outside of a public agency’s jurisdiction are thoroughly and independently examined in a public process that provides increased transparency and oversight. SB 239 requires a public agency to have an independent fiscal analysis of a proposal for a fire protection reorganization contract to assess the costs and revenues of the public agency are sufficient to carry out the contract over a three-year period. As such, this bill ensures the cost-effectiveness of contracts that are approved through the LAFCO process.
As part of the public process required by this bill, however, public agencies must have the consent of recognized firefighter organizations in both the existing and proposed service areas prior to submitting an application to LAFCO for approval of a fire protection reorganization contract. This provision reduces a public agency’s autonomy to make service delivery decisions, and may present barriers that prevent contracting for fire protection in some cases, or result in increased contracting costs in others.
Author amendments (as adopted on May 28, 2015): Proposed author’s amendments would do the following:
Require approval of CAL FIRE contracts by the Department of Finance instead of the Governor.
Require written notice to be provided to each affected public agency and firefighter employee organization, including a copy of the full contract proposal.
Require the application submitted to LAFCO to also include all of the following:
Enumeration and description of the new or extended fire protection services proposed to be extended to affected territory.
The level and range of new or extended fire protection services.
An indication of when the new or extended services can feasibly be extended to the affected territory.
An indication of any improvements or upgrades to structures, roads, sewer or water facilities, or other conditions the public agency would impose or require within the affected territory if the contract is completed.
Clarify that the bill does not abrogate a public agency’s responsibilities under the Brown Act.
Make a specified legislative finding.
Make numerous technical changes.
-- END --
SB 239 (Hertzberg) Page 4 of 4
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 239 (Hertzberg) - Local services: contracts: fire protection services
|
|
Version: April 23, 2015 |
Policy Vote: GOV. & F. 5 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: May 18, 2015 |
Consultant: Mark McKenzie |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 239 would require written approval from a local agency formation commission (LAFCO) before a public agency can contract for fire protection services outside its current service area. The bill would prescribe a public process for approving a fire protection reorganization contract, including a requirement that, prior to submitting an application to the LAFCO, a public agency must obtain written consent to the proposal from each affected public agency and the recognized employee organization representing firefighters of both the existing and proposed service providers, and conduct a public hearing.
Fiscal Impact:
Unknown increased General Fund costs to the Department of Forestry and Fire Protection (CAL FIRE), likely in the low hundreds of thousands annually, to comply with specified administrative requirements prior to contracting with local agencies for fire protection services. CAL FIRE currently has 115 contracts with local agencies for full fire protection services, and the contracts typically have a duration of three years. It is likely that all of those contracts would meet the criteria in the bill requiring LAFCO approval. For illustrative purposes, if CAL FIRE incurred additional costs of $10,000 to extend 38 fire protection contracts in a year through the LAFCO process, annual administrative costs would be $380,000. It is likely that CAL FIRE would incur higher costs to assess the impacts of contracts for larger service areas.
Unknown, potentially significant impact on CAL FIRE fire protection costs (General Fund). Currently, CAL FIRE provides over $50 million in contracted reimbursements to counties for fire protection services in “state responsibility areas,” and the state is provided with over $300 million in contracted reimbursements from local agencies for CAL FIRE to provide a variety of fire protection services to cities, counties, and fire protection districts. These contracts must be mutually beneficial and cost-effective. To the extent this bill discourages or prevents contracting for fire services, both CAL FIRE and local agencies could experience increased costs to provide fire protection.
Background:
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act, delegates the Legislature's power to control the boundaries of cities and special districts to local agency formation commissions (LAFCOs). The Act authorizes a city or county to provide new or extended services by contract or agreement outside its jurisdictional boundaries if it receives written approval from the LAFCO in the affected county. This requirement does not apply to contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider.
Existing law authorizes cities and fire protection districts to enter into contracts with counties to provide fire protection services within a local agency’s jurisdiction. In addition, cities, counties, and districts can enter into cooperative agreements with CAL FIRE to provide fire protection services. CAL FIRE currently has 149 contracts with a value of over $300 million to provide a variety of fire protection services to local governments (Schedule A Agreements), ranging from dispatch services to full service fire protection. CAL FIRE typically enters into an average of two new contracts each year to provide local fire protection services; the contracts typically have a duration of three years and must be mutually beneficial. CAL FIRE also has 6 contracts with counties with a value of over $50 million to provide wildland fire protection in State Responsibility Areas on behalf of the state (Contract County Agreements).
Proposed Law:
SB 239 requires a state or local public agency to obtain a LAFCO’s written approval to provide new or extended services under a fire protection reorganization contract. Specifically, this bill would:
Define a “fire protection reorganization contract” as a contract or agreement that for the exercise of new or extended fire protection services outside a public agency’s current service area that does either of the following:
Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement.
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
Require that a request submitted to LAFCO for approval of services provided under a fire protection reorganization contract be made as follows:
For a non-state public entity, by the adoption of a resolution of application by the legislative body proposing to provide those services outside the agency’s current service area.
For a state public entity, the director of the agency must initiate the application proposing to provide these services outside its current service area, and have the application approved by the Governor.
Prohibit the legislative body of a public agency or the director of a state public agency from submitting an application to LAFCO unless both of the following occur:
The public agency obtains and submits a written agreement validated and executed by each affected public agency and recognized employee organization representing firefighters of the existing and proposed service providers consenting to the proposed change of organization.
The public agency conducts an open and public hearing on the resolution.
Require that a resolution of application be submitted with a fire services reorganization contract plan that includes all of the following:
A total cost estimate for providing new or extended services.
The estimated cost of the new or extended services to customers.
An identification of existing service providers and the potential fiscal impact to the customers of those existing providers.
A plan for financing the exercise of the new or extended services.
Alternatives for the exercise of the new or extended services.
Require that a public agency to contract for an independent comprehensive fiscal analysis for submittal with the application that reviews and documents the following:
The costs to the applicant public agency during the three years following the effective date of a fire protection reorganization contract, including all direct and indirect costs, and a review of specified cost comparisons for similar service areas to reasonably determine expected costs.
The revenues of the applicant public agency during the three years following the effective date of contract with another public agency to provide a new or extended service.
The effects on the costs and revenues of any affected public agency, including the applicant public agency, during the three fiscal years that the new or extended service will be provided.
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under the contract.
Require the clerk of the public agency or the director of a state agency to file a certified copy of the resolution of application with the LAFCO executive officer.
Require the LAFCO executive officer to determine whether the application for approval is complete and acceptable within 30 days of receipt, as specified.
Require the LAFCO to approve, disapprove, or approved with conditions a fire protection reorganization contract following a public hearing on the proposal.
Prohibit the LAFCO from approving the application unless it determines the public agency will have sufficient revenues to carry out the fire protection reorganization contract, but allows for conditional approval on the concurrent approval of sufficient revenue sources, as provided.
Prohibit the LAFCO from approving the application unless it makes findings of all of the following:
The proposed exercise of new or extended services outside a public agency’s current service area is consistent with the Cortese-Knox-Hertzberg Act.
The commission has reviewed the comprehensive fiscal analysis.
The commission has reviewed the testimony presented at the public hearing.
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended service.
Specify the manner in which a LAFCO executive officer must provide public notice for the hearing to review an application for approval of a fire protection reorganization contract, and require the LAFCO to hear and consider all written and oral testimony by any affected local agency, county, or interested person.
Staff Comments:
This bill is intended to ensure that contracts to extend fire protection services outside of a public agency’s jurisdiction are thoroughly and independently examined in a public process that provides increased transparency and oversight. SB 239 requires a public agency to have an independent fiscal analysis of a proposal for a fire protection reorganization contract to assess the costs and revenues of the public agency are sufficient to carry out the contract over a three-year period. As such, this bill ensures the cost-effectiveness of contracts that are approved through the LAFCO process.
As part of the public process required by this bill, however, public agencies must have the consent of recognized firefighter organizations in both the existing and proposed service areas prior to submitting an application to LAFCO for approval of a fire protection reorganization contract. This provision reduces a public agency’s autonomy to make service delivery decisions, and may present barriers that prevent contracting for fire protection in some cases, or result in increased contracting costs in others.
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SB 239 (Hertzberg) 4/23/15 Page 6 of 6
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
SB 239 |
Hearing Date: |
4/29/15 |
Author: |
Hertzberg |
Tax Levy: |
No |
Version: |
4/23/15 |
Fiscal: |
Yes |
Consultant: |
Weinberger |
||
LOCAL AGENCY FORMATION COMMISSIONS AND FIRE PROTECTION SERVICE CONTRACTS
Requires a LAFCO to review a contract or agreement for new or extended fire service outside of an existing service area.
Background
The Cortese-Knox-Hertzberg Local Government Reorganization Act delegates the Legislature's power to control the boundaries of cities and special districts to local agency formation commissions (LAFCOs). The Act requires that cities and districts must get a LAFCO's written approval before they can serve territory outside their boundaries (AB 1553, Gotch, 1993). However, LAFCO approval is not required for contracts or agreements solely involving two or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the exiting service provider.
State law allows cities and fire protection districts to contract with a county to provide fire protection services within the local agency’s jurisdiction. Similarly, local governments may contract with the California Department of Forestry and Fire Protection (CAL FIRE) to provide fire protection services. CAL FIRE is providing fire protection services within nearly 150 local jurisdictions pursuant to cooperative agreements.
Some of these contracts and cooperative agreements result in a local department shifting all responsibility for providing fire protections services to a county or CAL FIRE, while others supplement existing local fire services with additional services provided by a county or CAL FIRE. However, because these contracts and agreements solely involve public agencies and existing services, they are not subject to LAFCO approval.
In some communities that recently entered into contracts or agreements that shifted the responsibility for providing fire protection services from one public agency to another, the agreements have generated controversy while failing to produce anticipated cost savings and administrative efficiencies. As a result, firefighters’ labor union officials want the Legislature to require LAFCOs to give fire protection service contracts and agreements more scrutiny than is required under current law.
Proposed Law
Senate Bill 239 requires a public agency to obtain a LAFCO’s approval to provide new or extended services under a fire protection reorganization contract, pursuant to a specified approval process.
SB 239 defines a “fire protection reorganization contract” as a contract or agreement that:
Is for the exercise of new or extended fire protection services outside a public agency’s current service area;
Is executed pursuant to specified statutes allowing local governments and CALFIRE to enter into fire protection service contracts and agreements; and,
Does either of the following:
Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement.
Changes the employment status of more than 25% of the employees of any public agency affected by the contract or agreement.
SB 239 applies the definition of a fire protection reorganization contract to a contract or agreement that, in combination with other contracts or agreements, meets the bill’s definition of a fire protection contract.
SB 239 requires a public agency to initiate a request for commission approval of services provided under a fire protection reorganization contract by adopting a resolution of application as follows:
The legislative body of a public agency that is not a state agency must adopt a resolution of application proposing to provide new or extended services outside the public agency’s current service area.
The director of a state agency must initiate an application, which must be approved by the Governor.
SB 239 requires that the legislative body of a public agency or the director of a state agency must do all of the following before submitting a resolution of application to the commission:
Obtain and submit with the resolution a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers consenting to the proposed change of organization.
Conduct an open and public hearing on the resolution.
SB 239 requires that a proposal for a change of organization must be submitted with a plan for services prepared pursuant to specified statutory requirements. The plan for services must include:
A total cost estimate for providing new or extended services.
The estimated cost of the new or extended services to customers.
An identification of existing service providers and the potential fiscal impact to the customers of those existing providers.
A plan for financing the exercise of the new or extended services.
Alternatives for the exercise of the new or extended services.
SB 239 requires a public agency to cause to be prepared by contract an independent comprehensive fiscal analysis that reviews and documents:
The costs to the public agency that has proposed to provide new or extended services during the three fiscal years following a public agency entering into a contract to provide new or extended services outside its current service area by contract or agreement, in accordance with the following requirements:
The analysis must include all direct and indirect cost impacts to the existing service provider in the affected territory.
The analysis must review how the existing service provider’s costs compare to the service costs in areas with similar populations and of similar geographic size that provide a similar level and range of services. The analysis must make a reasonable determination of the costs expected to be borne by the public agency providing new or extended services.
The revenues of the public agency that has proposed a new or extended service outside its current service area during the three fiscal years following the effective date of a contract or agreement with another public agency to provide a new or extended service.
The effects on the costs and revenues of any affected public agency, including the public agency proposing to provide the new or extended service, during the three fiscal years that the new or extended service will be provided.
Any other information and analysis needed to support the findings that a LAFCO must make to approve services under a fire protection reorganization contract.
SB 239 requires the clerk of the legislative body of a public agency or the director of a state agency adopting a resolution of application to file a certified copy of the resolution with the LAFCO executive officer. The bill specifies how a LAFCO must process resolutions of application submitted to the executive officer.
SB 239 requires a LAFCO to review and approve, disapprove, or approve with conditions a fire protection reorganization contract after a public hearing called and held for that purpose. The bill allows an applicant to request reconsideration if a contract is disapproved or approved with conditions.
SB 239 generally prohibits a LAFCO from approving an application unless the LAFCO determines that the public agency will have sufficient revenues to carry out the exercise of the new or extended services outside its current area. However, if the LAFCO has determined that the public agency will not have sufficient revenue to provide the proposed new or different functions or class of services, SB 239 allows a LAFCO to approve an application if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to state law. In approving an application, the LAFCO must provide that if the revenue sources are not approved, the public agency’s authority to provide new or extended services must not be exercised.
SB 239 prohibits a LAFCO from approving an application for approval of a fire protection reorganization contract unless the LAFCO finds, based on the entire record, all of the following:
The proposed exercise of new or extended services outside a public agency’s current service area is consistent with the Cortese-Knox-Hertzberg Act.
The commission has reviewed the comprehensive fiscal analysis.
The commission has reviewed the testimony presented at the public hearing.
The proposed affected territory is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following the effective date of the contract or agreement between the public agencies to provide a new or extended service.
SB 239 specifies the manner in which a LAFCO executive officer must provide public notice by mail, in a newspaper, and on the Internet, of a hearing to review an application for approval of a fire protection reorganization contract. The bill allows a LAFCO to continue a hearing and requires that a LAFCO must hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at the hearing.
SB 239 specifies that a fire protection reorganization contract is exempt from the statute that governs LAFCOs’ approval of extraterritorial service contracts.
The bill makes additional technical and conforming changes to the Cortese-Knox-Hertzberg Act.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. When a contract or agreement between two public agencies makes substantial changes to the administration of fire protection services in a community, it deserves to be scrutinized by LAFCO in a manner that is similar to how a detachment and annexation of fire protection services would be scrutinized under current law. When the Legislature enacted the 1993 Gotch bill requiring LAFCO review of some extraterritorial service contracts, it did so in response to concerns that local governments were using service contracts to circumvent LAFCO review of major changes to local service delivery. However, the review requirement for extraterritorial service contracts contained a substantial loophole for contracts that only involved public agencies. SB 239 will narrow that loophole. Some recent fire protection service contracts between public agencies have resulted in costly litigation and generated deep divisions among community members. Other agreements have been jeopardized by public officials’ reliance on financial data that later was determined to be inaccurate. Problems like these can be avoided by providing more opportunities for the public to review and consider independent analyses of proposed changes to fire service delivery in their communities. By requiring a public agency to submit a plan for extended services for fire protection to LAFCO for review and approval, SB 239 will ensure that the details of service delivery and costs are thoroughly and independently examined, which will benefit the residents, the public agency and the firefighters in all of the affected areas.
2. Local control. Local voters elect county supervisors, city council members, and special district board members to make public policy in response to local needs. Local elected officials strive to provide their communities’ residents with the best services at the most reasonable cost. They have to answer to residents who are displeased with the quality and cost of their services. As a result, a decision to enter into a contract with another public agency to provide fire protection services is a decision that elected officials make only after considering the fiscal, administrative, and service delivery implications for their communities. By requiring LAFCO review of fire protection reorganization contracts, SB 239 diminishes local officials’ autonomy to contract for fire protection services in the manner that they determine will best serve their constituents.
3. Delegation of powers. SB 239 prohibits a LAFCO from considering an application for approval of new or extended fire protection service unless the application is accompanied by a written agreement validated and executed by each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers. This requirement effectively gives some local officials and private employee organizations authority to decide whether or not a LAFCO can consider an application. The California Constitution gives the State Legislature complete authority to create local governments and set their boundaries. Because the Legislature has delegated much of its authority over city and special district boundaries to each county’s LAFCO, LAFCOs are exercising a legislative power when they make decisions about changes to local governments’ organization. By empowering local officials and labor organizations to determine whether a proposal for new or extended services can be reviewed by a LAFCO, SB 239 may delegate some legislative powers to those other parties. As a general doctrine, the power to make laws must be exercised by the Legislature, and may not be delegated. However, courts have frequently upheld the delegation of legislative powers to public boards or officers if the statutes specify definite standards to be used to carry out the delegated legislative purposes. By contrast, courts have invalidated statutes that delegate uncontrolled discretion to third parties. Granting local officials and employee organizations full discretion to determine which proposed changes of organization a LAFCO can consider may not be consistent with judicial interpretations of the nondelegation doctrine.
4. Next in line? Fire protection services aren’t the only kind of public service that local agencies provide outside of their boundaries pursuant to contracts with other public agencies. Local agencies commonly contract for law enforcement services, utility services, and park and recreation services, among others. Enacting SB 239 may invite requests from other interest groups for LAFCOs to more carefully scrutinize other types of contracts for services provided outside of existing service areas.
5. Mandate. The Legislative Counsel’s Office says that SB 239 would impose a state-mandated local program because it requires local government officials to perform additional duties related to the approval of fire protection reorganization contracts. The California Constitution generally requires the state to reimburse the costs of new or expanded state mandated local programs. However, on June 3, 2014, California voters approved Proposition 42, which amended the California Constitution to require local agencies to comply with the California Public Records Act. Proposition 42 also requires local agencies to comply with any subsequent statutory enactment amending the Public Records Act that contains specified findings that the newly enacted statute furthers specified constitutional provisions guaranteeing public access to public agency meetings and records. SB 239 contains legislative findings that the bill furthers the purpose of Section 3 of Article I of the California Constitution by providing for notice in accordance with existing provisions of open meeting statutes. As a result, SB 239 disclaims the state’s responsibility for reimbursing local governments’ costs of complying with the bill’s requirements.
Support and Opposition
(4/23/15)
Support: California Professional Firefighters; CALFIRE Local 2881; California Labor Federation.
Opposition: Alameda County LAFCO; Apple Valley Fire Protection District; California Association of LAFCOs; California Building Industry Association; California Special Districts Association; California State Association of Counties; Contra Costa County LAFCO; Covelo Fire Protection District; Happy Valley Fire Protection District; Fire Districts Association of California; Hesperia Recreation and Park District; League of California Cities; Los Angeles County LAFCO; Rural County Representatives of California; San Mateo County LAFCO; Saratoga Fire District; Shasta Lake Fire Protection District; Squaw Valley Public Service District.
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Bill Author
Bill Co-Author(s):