The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed.

This bill would, for purposes of streamlining the return of land use authority from the March Joint Powers Authority to the County of Riverside and ensuring the continued maintenance of public infrastructure, authorize the authority to transfer jurisdiction over any landscaping and lighting maintenance districts and any community facilities districts, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside and the Cities of Moreno Valley, Perris, and Riverside.

The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed.

This bill would, for purposes of streamlining the return of land use authority from the March Joint Powers Authority to the County of Riverside and ensuring the continued maintenance of public infrastructure, authorize the authority to transfer jurisdiction over any landscaping and lighting maintenance districts and any community facilities districts, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside and the Cities of Moreno Valley, Perris, and Riverside.

The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed.

This bill would set forth various authorizations and land use requirements would, for purposes of streamlining the return of land use authority from the March Joint Powers Authority to the County of Riverside and ensuring the continued maintenance of public infrastructure. The bill would infrastructure, authorize the authority to transfer jurisdiction over any landscaping and lighting maintenance districts and any community facilities districts, as specified, and to assign its contractual obligations relating to the use of land to the county. The bill would also require the application of specified authority land use laws and entitlements, as specified, on and after July 1, 2025. specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside and the Cities of Moreno Valley, Perris, and Riverside.

The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed.

This bill would set forth various authorizations and land use requirements for purposes of streamlining the return of land use authority from the March Joint Powers Authority to the County of Riverside and ensuring the continued maintenance of public infrastructure. The bill would authorize the authority to transfer jurisdiction over any landscaping and lighting maintenance districts and any community facilities districts, as specified, and to assign its contractual obligations relating to the use of land to the county. The bill would also require the application of specified authority land use laws and entitlements, as specified, on and after July 1, 2025.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside and the Cities of Moreno Valley, Perris, and Riverside.

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

This bill would provide that no reimbursement is required by this act for a specified reason.

Date of Hearing: June 5, 2024

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

SBPCA Bill Id:SB 994

Author:(Roth) – As Amended Ver:March 19, 2024

SENATE VOTE: 37-0

SUBJECT: Local government: joint powers authority: transfer of authority.

SUMMARY: Allows the March Joint Powers Authority (MJPA) to transfer jurisdiction over its community facilities districts (CFDs) and landscaping and lighting maintenance districts (LLMDs) to Riverside County. Specifically, this bill:

1. Provides that for the purposes of streamlining the return of land use authority to Riverside County and ensuring the continued maintenance of public infrastructure, the MJPA may do the following:
   1. Transfer jurisdiction over any LLMD, established pursuant to the Landscaping and Lighting Act of 1972 (1972 Act), to Riverside County pursuant to a joint resolution setting forth the mutually agreed upon terms and conditions under which the transfer is to take place.
   2. Transfer jurisdiction over any CFD, established pursuant to the Mello-Roos Community Facilities Act of 1982 (CFD Law), to Riverside County pursuant to the requirements of that act and in the same manner as a county may transfer the authority for the governance of those districts to a city under CFD Law.
2. Specifies that for the purposes of this bill, the “MJPA” means a public entity created pursuant to JPA Law and composed of the cities of Moreno Valley, Perris, and Riverside and Riverside County.
3. Finds and declares that a special statute is necessary and that a general statute cannot be made applicable because of the unique circumstances in Riverside County and the cities of Moreno Valley, Perris, and Riverside.

FISCAL EFFECT: None.

COMMENTS:

1. Bill Summary and Author’s Statement. This bill allows the MJPA to transfer jurisdiction over its CFD and LLMDs to Riverside County, as specified. Riverside County is the sponsor of this bill.

According to the author, “On July 1, 2025 the March Joint Powers Authority will transfer the land use authority of the former March Air Force Base to Riverside County. SB 994 allows for the County of Riverside to assume the obligations from the March Joint Powers Authority (MJPA) as the governing agency of the Landscaping and Lighting District (LLMD) as well as the Community Facilities District (CFD) that were created and approved by businesses located within the area controlled by the MJPA.

“These special districts were created to share the costs of landscaping, road repairs, street lighting, street signage, and storm drainage between businesses on the MJPA property, with the MJPA acting as the governing agency to oversee the maintenance, repairs, and annual assessment adjustments. While it may be possible for the MJPA to continue as the governing agency, it is appropriate that the County of Riverside assume these obligations along with land use authority.

“The transfer of land use authority from the MJPA to the County of Riverside was conducted through an administrative process. However, the transfer of the obligations to maintain and operate the special districts for the benefit of the beneficiaries cannot be accomplished administratively. This transfer of obligations for the special districts to the County requires legislation in order to avoid a potentially long and costly election process.”

1. Joint Powers Authorities. JPA Law allows two or more public agencies to use their powers in common if they sign an agreement. Sometimes an agreement creates a new, separate public entity called a joint powers agency or joint powers authority. Entities that can exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts, federally recognized tribal governments, and even other joint powers authorities.
   
2. Assessments. Not everyone benefits from all of the services or facilities that a local government provides. When a specific project or particular service benefits only a well-defined group of property owners, public policy generally attempts to assign the costs of services and facilities to those who receive the benefits. Articles XIII C and XIII D of the California Constitution allow for the imposition of “benefit assessments” for precisely this purpose. The amount of the assessment must be directly related to the amount of the benefit the property receives. Benefit assessments can finance public projects like flood control, street improvement, streetlights, and public landscaping, among many others.

California statute authorizes local agencies to adopt a wide variety of assessments through the formation of assessment districts. An assessment district is not a separate government agency but rather a defined area containing the properties that benefit the most from certain public improvements. Within this defined area, the legislative body approves a benefit formula to apportion and levy the special assessments.

With the passage of Proposition 218 (1996), which added Article XIII D to the California Constitution, assessments became more difficult to impose, including those levied by assessment districts, because it required property owners to approve any new assessments. In general, Proposition 218 curbed the use property-related charges to pay for general governmental services.

1. 1972 Act. The 1972 Act is a tool used by local agencies to pay for landscaping, lighting,
   and other improvements and services in public areas known as LLMDs by levying assessments. Bonds can be issued to finance improvements under the 1972 Act. Under the 1972 Act, a broad range of improvements can be financed, including:
2. Acquisition or construction of landscaping; public lighting facilities, such as streetlights and traffic lights; recreational improvements, such as parks; ornamental features, such as statues and fountains; and any facilities attached or related to these types of improvements.
   
3. Acquisition of land for parks and open spaces.
   
4. Acquisition or construction of community centers, municipal auditoriums, halls, or other similar facilities.
   
5. Acquisition of any existing asset that a district would otherwise be able to construct.
   
6. Maintenance of any of the above.

The agency that creates the LLMD may order various changes in organization for the district, including adding or removing territory, and dissolving or consolidating districts provided they do not alter the obligation of property owners to pay off the LLMD’s debt. Among other changes, if a city incorporates or annexes territory to include the whole area of an existing LLMD, then the county can transfer the LLMD to the city with a resolution jointly approved by the county and the new city. This allows the LLMD assessment to continue rather than requiring the county to dissolve the existing LLMD and have the newly created or expanded city create a new one.

The MJPA created a LLMD under the 1972 Act. The LLMD levies an assessment on business properties ranging from $1,034 to $4,541 per acre per year, depending on the business’s location, to build streetlights, landscaping, and signage around the businesses subject to the assessment.

1. Mello-Roos. The Mello-Roos Community Facilities Act allows counties, cities, special districts, and school districts to levy special taxes (parcel taxes) to finance a wide variety of public works, including parks, recreation centers, schools, libraries, child care facilities, and utility infrastructure. A CFD issues bonds against these special taxes to finance the public works projects.

To initiate the formation of a CFD, a local agency's legislative body must adopt a resolution of intention to establish the district, which must do all of the following: describe the district's boundaries; describe the facilities and services proposed to be financed; state that a special tax, secured by a lien against real property, will be annually levied; specify, in detail, the rate, method of apportionment, and manner of collections of the special tax; and, fix a time and place for public hearing. After holding the hearing and considering protests, the legislative body, to establish the CFD, must adopt a resolution of formation containing all of the information provided in the resolution of intention; and, if a special tax is to be levied, include additional information about the tax levy.

A county is authorized to transfer the jurisdiction of one or more CFDs to a city upon written agreement entered into between the governing boards of the county and the city and the satisfaction of any conditions contained in the agreement. The transfer of jurisdiction of a CFD is only effective if all of the following occur:

• 1. An amended boundary map of the CFD is recorded with the county recorder.
     
  2. An amended notice of special tax lien is recorded with the county recorder.
     
  3. A notice is mailed by the clerk of the governing board of the city to each property owner within the CFD as indicated on the latest secured assessment roll of the county and the notice contains specific information.
     
  4. The city adopts specified policies.
     
  5. For a CFD with outstanding bonded indebtedness, replacement bonds stating that the transfer of jurisdiction is being made in accordance with CFD Law must have been executed and delivered by the governing board of the city and delivered to the fiscal agent for the bonds.
     
  6. The governing board of the county must have adopted a resolution granting its final consent to the transfer of jurisdiction for the district.

While current law details a process for a county to transfer a CFD to a city, there is no corresponding authority to transfer jurisdiction of a CFD from a JPA to a county. MJPA’s CFD was created to cover maintenance costs for the U.S. Veterans Transition Housing Facility and the Signature Healthcare Facility. The CFD levies a tax of $5,786 per acre per year on the parcels of these facilities.

1. March JPA. According to the MJPA, March Air Force Base (AFB) served as an active duty aerial refueling and deployment base since 1918, and encompassed approximately 6,500 acres. Recommended for realignment for Base Realignment and Closure (BRAC) in 1993, March AFB converted to March Air Reserve Base (ARB) on April 1, 1996, making the approximately 4,400 acres of property and a number of buildings surplus. The MJPA formed in 1993 and is charged with the responsibility of base reuse, planning, and development, including establishing a joint-use aviation facility. The MJPA was formed by Riverside County and the cities of Moreno Valley, Perris, and Riverside. Each of these four jurisdictions selects two of its elected governing board members to serve on the MJPA board.

In April 2023, the member agencies of MJPA voted to amend the agreement to wind down its functions, including MJPA’s land use functions. The land use functions are to be transferred to Riverside County on July 1, 2025. Riverside County wants to transfer the LLMD and the CFD from MJPA to the County, so MJPA only does what it cannot transfer. However, neither the 1972 Act nor the Mello-Roos Act allow a JPA to transfer its jurisdiction to a county. Rather than dissolve the two districts, the County wants to allow MJPA to transfer jurisdiction to the County.

1. Arguments in Support. According to the sponsor, Riverside County, “The March Joint Powers Authority was established in 1993 to facilitate the reuse of the territory of the former March Air Force Base that is not presently operated by the March Air Reserve Base. Comprised of the County of Riverside and the Cities of Moreno Valley, Perris, and Riverside, the MJPA was tasked with planning and executing new uses for vacant lands, reuse of existing facilities, and joint use of the airfield facilities after the federal government realigned March Air Force Base to March Air Reserve Base. The March JPA territory has been redeveloped in accordance with California land use and planning laws with a variety of uses; the JPA has developed significant public infrastructure and landscaping, which it maintains directly and through a landscape and lighting maintenance district pursuant to the Landscaping and Lighting Act of 1972 and a community facilities district established pursuant to the Mello-Roos Community Facilities Act of 1982.

“Now that MJPA’s task of redeveloping the former March Air Force Base is nearing completion, the member agencies have voted to amend the joint powers agreement to eliminate the MJPA’s land use authority effective July 1, 2025. As a result, land use authority for the territory will return to the County of Riverside on that date. SB 994 provides helpful statutory direction to allow the County to assume the obligations of the LLMD and CFD in a manner similar to what would occur under current law when a city disincorporates.”

1. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Riverside County [SPONSOR]

City of Perris

City of Riverside

Opposition

None on file.

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958

 CONSENT  

Bill No: SB 994

Author: Roth (D)

Amended: 3/19/24

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 6-0, 5/1/24

AYES: Durazo, Seyarto, Dahle, Skinner, Smallwood-Cuevas, Wiener

NO VOTE RECORDED: Glazer

SUBJECT: Local government: joint powers authority: transfer of authority

SOURCE: County of Riverside

DIGEST:

This bill allows the March Air Force Base Joint Powers Authority (March JPA) to transfer jurisdiction over its community facilities districts (CFDs) and landscaping and lighting maintenance districts (LLMDs) to the County of Riverside.

ANALYSIS:

Existing law:

1. Allows two or more public agencies to enter an agreement to jointly exercise any power held in common by the parties to the agreement. Each public agency must independently possess the authority to perform the activity that is to be performed jointly pursuant to a joint powers agreement. Sometimes an agreement creates a new, separate government called a joint powers authority (JPA).
2. Allows local agencies to set up LLMDs to issue bonds secured by assessments to finance landscaping, lighting, and other improvements and services in public areas.
3. Allows the agency that creates the LLMD to order various changes in organization for the district, including adding or removing territory, and dissolving or consolidating districts provided they do not alter the obligation of property owners to pay off the LLMD’s debt. Among other changes, if a city incorporates or expands to include the whole territory of an existing LLMD, then the county can transfer the LLMD to the city with a resolution jointly approved by the county and the new city.
4. Allows counties, cities, special districts, and school districts to finance public works projects and a limited list of public services by levying special taxes (parcel taxes). A Mello-Roos CFD issues bonds against these special taxes to finance the public works projects. Like all special taxes, Mello-Roos Act special taxes require –two-thirds voter approval. If there are fewer than 12 registered voters, the affected landowners vote.
5. Allows a county to transfer the authority for governing a CFD to a city upon written agreement between the two governing boards and satisfying specified conditions.

This bill allows March JPA to transfer jurisdiction to the County of Riverside over any; (1) LLMDs to the County of Riverside pursuant to a joint resolution setting forth the mutually agreed upon terms and conditions under which the transfer is to take place; and (2) CFDs to the County of Riverside pursuant to the requirements of the Mello-Roos Act and in the same manner as a county may transfer the authority for the governance of those districts to a city under that act.

Background

March Air Force Base in western County of Riverside has served as a military installation since 1918. As part of the 1993 base realignment, the military converted the base into a reserve base, and made two-thirds of the base surplus. The County of Riverside and the cities of Moreno Valley, Perris, and Riverside joined together to form March JPA to manage the realigned parts of the base. Since the mid-1990s, March JPA has been responsible for base reuse, planning, and development, including establishing a joint-use aviation facility. In April 2023, the member agencies of March JPA voted to amend the agreement to wind down its functions, including the JPA’s land use functions. Most of the land the JPA controls is in unincorporated in the County of Riverside. Rather than figuring out how to divvy it up through annexations, the member cities and the County of Riverside agreed the County would assume most of the JPAs functions, including land use, until the redevelopment bond obligations are paid off in 2041. The JPA also entered into a revenue sharing agreement to return the property tax, sales and use tax, transient occupancy taxes, and franchise fee revenues to the member cities and the County of Riverside.

Comments

1. Purpose of the bill. According to the author, “On July 1, 2025 the March Joint Powers Authority will transfer the land use authority of the former March Air Force Base to Riverside County. SB 994 allows for the County of Riverside to assume the obligations from the March Joint Powers Authority (MJPA) as the governing agency of the Landscaping and Lighting District (LLMD) as well as the Community Facilities District (CFD) that were created and approved by businesses located within the area controlled by the MJPA. These special districts were created to share the costs of landscaping, road repairs, street lighting, street signage, and storm drainage between businesses on the MJPA property, with the MJPA acting as the governing agency to oversee the maintenance, repairs, and annual assessment adjustments. While it may be possible for the MJPA to continue as the governing agency, it is appropriate that the County of Riverside assume these obligations along with land use authority. The transfer of land use authority from the MJPA to the County of Riverside was conducted through an administrative process. However, the transfer of the obligations to maintain and operate the special districts for the benefit of the beneficiaries cannot be accomplished administratively. This transfer of obligations for the special districts to the County requires legislation in order to avoid a potentially long and costly election process.”
2. So close to handling it on their own. So far, March JPA and its member agencies have handled the JPA’s dissolution locally without the need for legislation. For example, they were able to amend the joint powers agreement to remove land use authority and enter into a revenue sharing agreement. However, March JPA has run into roadblocks when it comes to transferring authority for its LLMD and CFD. While current law lays out a process for a county to transfer either of these financing districts to a city, and JPAs can exercise any power held in common by the parties to the agreement, there is not a corresponding authority to transfer jurisdiction to a county. Additionally, the authority to transfer LLMDs applies specifically to instances of annexation or incorporation. Absent any further authority for March JPA to transfer its LLMD and CFD to the county, the only alternative would be for March JPA to dissolve the LLMD and CFD, and have the County of Riverside form replacement districts. This would likely be costly in time and resources, and would require the County of Riverside to go back through the process of soliciting property owner approval.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 5/1/24)

County of Riverside (source)
City of Riverside

OPPOSITION: (Verified 5/1/24)

None received

Prepared by: Jonathan Peterson / L. GOV. / (916) 651-4119

5/2/24 15:58:58

**** END ****

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2023 - 2024 Regular

Local government: joint powers authority: transfer of authority

Allows the March Air Force Base Joint Powers Authority to transfer jurisdiction over its community facilities districts and landscaping and lighting maintenance districts.

Background

Joint Exercise of Powers. The Joint Exercise of Powers Act allows two or more public agencies to enter an agreement to jointly exercise any power held in common by the parties to the agreement. Each public agency must independently possess the authority to perform the activity that is to be performed jointly pursuant to a joint powers agreement. Sometimes an agreement creates a new, separate government called a joint powers authority (JPA).

Assessments. Not everyone benefits from all of the services or facilities that a local government provides. When a specific project or particular service benefits only a well-defined group of property owners, public policy generally attempts to assign the costs of services and facilities to those who receive the benefits. Articles XIII C and XIII D of the California Constitution allow for the imposition of “benefit assessments” for precisely this purpose. The amount of the assessment must be directly related to the amount of the benefit the property receives. Benefit assessments can finance public projects like flood control, street improvement, streetlights, and public landscaping, among many others.

California statute authorizes local agencies to adopt a wide variety of assessments through the formation of assessment districts. An assessment district is not a separate government agency but rather a defined area containing the properties that benefit the most from certain public improvements. Within this defined area, the legislative body approves a benefit formula to apportion and levy the special assessments.

With the passage of Proposition 218 (1996), which added Article XIII D to the California Constitution, assessments became more difficult to impose, including those levied by assessment districts because it required property owners to approve any new assessments. In general, Proposition 218 curbed the use property-related charges to pay for general governmental services. Local governments often use other financing tools for infrastructure, including the Landscaping and Lighting Act of 1972 (1972 Act) and Community Facilities Districts.

1972 Act. The 1972 Act is used by local agencies to pay for landscaping, lighting, and other improvements and services in public areas known as landscaping and lighting maintenance districts (LLMDs). Local agencies can issue bonds to finance improvements under the 1972 Act, which can finance a broad range of improvements including:

• Acquisition or construction of: landscaping; general lighting such as streetlights and traffic lights; recreational improvements such as parks; ornamental features such as statues and fountains; and any facilities attached or related to these types of improvements;
• Acquisition of land for parks and open spaces;
• Acquisition or construction of community centers, municipal auditoriums, halls, or other similar facilities;
• Acquisition of any existing asset a district would otherwise be able to construct; and
• Maintenance of any of the above.

The 1972 Act does not require the local agency to complete improvements before their total cost is assessed against the properties within the district. The agency that creates the LLMD may order various changes in organization for the district, including adding or removing territory, and dissolving or consolidating districts provided they do not alter the obligation of property owners to pay off the LLMD’s debt. Among other changes, if a city incorporates or expands to include the whole territory of an existing LLMD, then the county can transfer the LLMD to the city with a resolution jointly approved by the county and the new city. This allows the LLMD assessment to continue rather than requiring the county to dissolve the existing LLMD and have the newly created or expanded city create a new one.

Community Facilities Districts. The Mello-Roos Community Facilities Act allows counties, cities, special districts, and school districts to finance public works projects and a limited list of public services by levying special taxes (parcel taxes). A Mello-Roos Community Facilities District (CFD) issues bonds against these special taxes to finance the public works projects. Like all special taxes, Mello-Roos Act special taxes require –two-thirds voter approval. If there are fewer than 12 registered voters, the affected landowners vote. The Mello-Roos Act is an important feature of the local fiscal landscape, providing local officials with a key tool for accumulating the public capital needed to pay for the public works projects that make new residential development possible. A county may transfer the authority for governing a CFD to a city upon written agreement between the two governing boards and satisfying the following conditions:

• Record an amended boundary map with the county recorder that includes specified information regarding the changing jurisdiction;
• Provide an amended notice of the special tax lien with the county recorder;
• The city clerk must mail each property owner in the CFD notifying them of the change;
• The city must adopt local goals and policies for the district as if it was initiating a new CFD;
• For CFDs with outstanding bonds, the city must execute and deliver replacement bonds stating the transfer of jurisdiction to the fiscal agent for the bonds; and
• The county must adopt a resolution granting its final consent for the transfer.

March JPA. The end of the Cold War forced the Department of Defense to adjust to new geopolitical realities. Federal officials closed or realigned nearly three dozen military bases in California. Upon their closure, the Department of Defense along with local agencies designated local reuse authorities to guide the future use of the base. In one case, an entirely new state entity was created to guide the development of Ford Ord. In other cases, like the Mare Island Naval Shipyard in the City of Vallejo, the city took responsibility for repurposing the base. These former bases have become homes to higher education institutions like California State University, Monterey Bay, and others serve important affordable housing purposes, like the Bay Public Works Center on Alameda Island.

March Air Force Base in western Riverside County has served as a military installation since 1918. As part of the 1993 base realignment, the military converted the base into a reserve base, and made two-thirds of the base surplus. Riverside County and the cities of Moreno Valley, Perris, and Riverside joined together to form March JPA to manage the realigned parts of the base. Since the mid-1990s, March JPA has been responsible for base reuse, planning, and development, including establishing a joint-use aviation facility. This included creating:

• A redevelopment agency to use this revenue to finance various development projects and infrastructure improvements. March JPA expects to finish paying off the bond indebtedness from its redevelopment agency in 2041;
• The March Inland Port Airport Authority (MIPAA) to manage and operate a civilian airport at the joint use airport the Air Force owns but makes available for civil aviation;
• A LLMD under the 1972 Act. This district levies an assessment on business properties ranging from $1,034 to $4,541 per acre per year, depending on the business’s location, to build streetlights, landscaping, and signage around the businesses subject to the assessment; and
• A CFD to cover maintenance costs for the U.S. Veterans Transition Housing Facility and the Signature Healthcare Facility. The CFD levies a tax of $5,786 per acre per year on the parcels of these facilities.

In April 2023, the member agencies of March JPA voted to amend the agreement to wind down its functions, including the JPA’s land use functions. Most of the land the JPA controls is in unincorporated Riverside County. Rather than figuring out how to divvy it up through annexations, the member cities and the County agreed the County would assume most of the JPAs functions, including land use, until the redevelopment bond obligations are paid off in 2041. The JPA also entered into a revenue sharing agreement to return the property tax, sales and use tax, transient occupancy taxes, and franchise fee revenues to the member cities and the County. MIPAA will continue to manage and operate the airport. The 2023 amendments rename MIPAA as the successor agency to the March JPA Redevelopment Agency to repay the outstanding obligations of the redevelopment agency.

Riverside County wants to transfer the LLMD and the CFD from March JPA to the County, so the JPA only does what it cannot transfer. However, neither the 1972 Act nor the Mello-Roos Act allow a JPA to transfer its jurisdiction to a county. Rather than dissolve the two districts, the County wants to allow March JPA to transfer jurisdiction to the County.

Proposed Law

Senate Bill 994 allows March JPA to transfer jurisdiction to Riverside County over any:

• Landscaping and lighting maintenance districts (LLMDs) to the County of Riverside pursuant to a joint resolution setting forth the mutually agreed upon terms and conditions under which the transfer is to take place; and
• Community facilities districts (CFDs) to the County of Riverside pursuant to the requirements of the Mello-Roos Act and in the same manner as a county may transfer the authority for the governance of those districts to a city under that act.

Comments

1. Purpose of the bill. According to the author, “On July 1, 2025 the March Joint Powers Authority will transfer the land use authority of the former March Air Force Base to Riverside County. SB 994 allows for the County of Riverside to assume the obligations from the March Joint Powers Authority (MJPA) as the governing agency of the Landscaping and Lighting District (LLMD) as well as the Community Facilities District (CFD) that were created and approved by businesses located within the area controlled by the MJPA.

“These special districts were created to share the costs of landscaping, road repairs, street lighting, street signage, and storm drainage between businesses on the MJPA property, with the MJPA acting as the governing agency to oversee the maintenance, repairs, and annual assessment adjustments. While it may be possible for the MJPA to continue as the governing agency, it is appropriate that the County of Riverside assume these obligations along with land use authority.

“The transfer of land use authority from the MJPA to the County of Riverside was conducted through an administrative process. However, the transfer of the obligations to maintain and operate the special districts for the benefit of the beneficiaries cannot be accomplished administratively. This transfer of obligations for the special districts to the County requires legislation in order to avoid a potentially long and costly election process.”

2. So close to handling it on their own. So far, March JPA and its member agencies have handled the JPA’s dissolution locally without the need for legislation. For example, they were able to amend the joint powers agreement to remove land use authority, clarify the ongoing role for MIPAA, and enter into a revenue sharing agreement. However, March JPA has run into roadblocks when it comes to transferring authority for its LLMD and CFD. While current law lays out a process for a county to transfer either of these financing districts to a city, and JPAs can exercise any power held in common by the parties to the agreement, there is not a corresponding authority to transfer jurisdiction to a county. Additionally, the authority to transfer LLMDs applies specifically to instances of annexation or incorporation. Absent any further authority for March JPA to transfer its LLMD and CFD to the county, the only alternative would be for March JPA to dissolve the LLMD and CFD, and have the County form replacement districts. This would likely be costly in time and resources, and would require the County to go back through the process of soliciting property owner approval.

3. Special legislation. Section 16 of Article Four of the California Constitution prohibits special legislation when a general law can apply. SB 994 contains findings and declarations explaining the need for legislation that applies only in the County of Riverside and the cities of Moreno Valley, Perris, and Riverside.

Support and Opposition

(4/26/24)

Support: County of Riverside (Sponsor)
City of Riverside

Opposition: None submitted.

-- END --