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HomeMy WebLinkAboutMINUTES - 06092015 - C.42RECOMMENDATION(S): ADOPT an "Oppose" position on SB 239 (Hertzberg), as amended: Local Services: Contracts: Fire Protection Services, a bill that would establish local agency formation commission proceedings to consider the exercise of new or extended fire protection services outside a public agency's current service area by contract or agreement, as recommended by the Legislation Committee. FISCAL IMPACT: No fiscal impact. BACKGROUND: At its May 7, 2015 meeting, the Legislation Committee considered and accepted the recommendation from the Contra Costa County Fire Chief to recommend a position of "Oppose" to the Board of Supervisors on SB 239. Introduced: 02/17/2015 Last Amend: 04/23/2015 Disposition: Pending Committee: Senate Appropriations Committee Hearing: 05/18/2015 10:00 am, John L. Burton Hearing Room (4203) Status: 04/29/2015 From SENATE Committee on GOVERNANCE AND FINANCE: Do pass to Committee on APPROPRIATIONS. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/09/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor ABSENT:Federal D. Glover, District V Supervisor Contact: L. DeLaney, 925-335-1097 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 9, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 42 To:Board of Supervisors From:LEGISLATION COMMITTEE Date:June 9, 2015 Contra Costa County Subject:SB 239 (Hertzberg) Local Services: Contracts: Fire Protection Services BACKGROUND: (CONT'D) 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: o Transfers responsibility for providing services in more than 25% of the service area of any public agency affected by the contract or agreement. o 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: o The analysis must include all direct and indirect cost impacts to the existing service provider in the affected territory. o 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. 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. CONSEQUENCE OF NEGATIVE ACTION: Contra Costa County would not have a position on the bill. ATTACHMENTS Attachment A - Bill Text AMENDED IN SENATE APRIL 23, 2015 AMENDED IN SENATE MARCH 23, 2015 SENATE BILL No. 239 Introduced by Senator Hertzberg February 17, 2015 An act to amend Sections 56021, 56654, 56824.10, and 56824.12 56017.2 and 56133 of, and to add Section 56800.5 56134 to, and to add Article 1.6 (commencing with Section 56824.20) to Chapter 5 of Part 3 of Division 3 of Title 5 of, the Government Code, relating to local services. legislative counsel’s digest SB 239, as amended, Hertzberg. Local services: contracts: fire protection services. 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. 97 Attachment A 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 agency’s 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 agency’s 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 56021 of the Government Code is line 2 amended to read: line 3 56021. “Change of organization” means any of the following: 97 — 2 —SB 239 Attachment A line 1 (a)  A city incorporation. line 2 (b)  A district formation. line 3 (c)  An annexation to a city. line 4 (d)  An annexation to a district. line 5 (e)  A detachment from a city. line 6 (f)  A detachment from a district. line 7 (g)  A disincorporation of a city. line 8 (h)  A district dissolution. line 9 (i)  A consolidation of cities. line 10 (j)  A consolidation of special districts. line 11 (k)  A merger of a city and a district. line 12 (l)  Establishment of a subsidiary district. line 13 (m)  The exercise of new or different functions or classes of line 14 services, or divestiture of the power to provide particular functions line 15 or classes of services, within all or part of the jurisdictional line 16 boundaries of a special district as provided in Article 1.5 line 17 (commencing with Section 56824.10) of Chapter 5 of Part 3 of line 18 this division. line 19 (n)  The exercise of new or extended fire protection services line 20 outside a public agency’s current service area by contract or line 21 agreement, as authorized by Chapter 4 (commencing with Section line 22 55600) of Part 2 of Division 2 of Title 5 of this code or Article 4 line 23 (commencing with Section 4141) of Chapter 1 of Part 2 of Division line 24 4 of the Public Resources Code, as provided in Article 1.6 line 25 (commencing with Section 56824.20) of Chapter 5 of Part 3 of line 26 Division 3 of Title 5 of this code. line 27 SEC. 2. Section 56654 of the Government Code is amended line 28 to read: line 29 56654. (a)  A proposal for a change of organization or a line 30 reorganization may be made by the adoption of a resolution of line 31 application by the legislative body of an affected local agency, line 32 except as provided in subdivision (b). line 33 (b)  (1)  Notwithstanding Section 56700, a proposal for a change line 34 of organization that involves the exercise of new or different line 35 functions or classes of services, or the divestiture of the power to line 36 provide particular functions or classes of services, within all or line 37 part of the jurisdictional boundaries of a special district, shall only line 38 be initiated by the legislative body of that special district in line 39 accordance with Article 1.5 (commencing with Section 56824.10) line 40 of Chapter 5. 97 SB 239— 3 — Attachment A line 1 (2)  Notwithstanding Section 56700, a proposal for a change of line 2 organization that involves the exercise of new or extended services line 3 outside a public agency’s current service area by contract or line 4 agreement, as defined in subdivision (n) of Section 56021, shall line 5 only be initiated in accordance with Article 1.6 (commencing with line 6 Section 56824.20) of Chapter 5. line 7 (c)  At least 21 days before the adoption of the resolution, the line 8 legislative body may give mailed notice of its intention to adopt line 9 a resolution of application to the commission and to each interested line 10 agency and each subject agency. The notice shall generally describe line 11 the proposal and the affected territory. line 12 (d)  Except for the provisions regarding signers and signatures, line 13 a resolution of application shall contain all of the matters specified line 14 for a petition in Section 56700 and shall be submitted with a plan line 15 for services prepared pursuant to Section 56653. line 16 SEC. 3. Section 56800.5 is added to the Government Code, to line 17 read: line 18 56800.5. For a proposal for a change of organization that line 19 involves the exercise of new or extended services outside a public line 20 agency’s current service area by contract or agreement, as defined line 21 in subdivision (n) of Section 56021, the executive officer shall line 22 prepare, or cause to be prepared by contract, a comprehensive line 23 fiscal analysis. This analysis shall become part of the report line 24 required pursuant to Section 56665. Data used for the analysis line 25 shall be from the most recent fiscal year for which data are line 26 available, preceding the issuance of the certificate of filing. When line 27 data requested by the executive officer in the notice of affected line 28 agencies are unavailable, the analysis shall document the source line 29 and methodology of the data used. The analysis shall review and line 30 document each of the following: line 31 (a)  The costs to the public agency that has proposed to provide line 32 new or extended services during the three fiscal years following line 33 a public agency entering into a contract to provide new or extended line 34 services outside its current service area by contract or agreement, line 35 in accordance with the following requirements: line 36 (1)  The executive officer shall include all direct and indirect line 37 cost impacts to the existing service provider in the affected line 38 territory. line 39 (2)  The executive officer shall review how the costs of the line 40 existing service provider compare to the costs of services provided 97 — 4 —SB 239 Attachment A line 1 in service areas with similar populations and of similar geographic line 2 size that provide a similar level and range of services and shall line 3 make a reasonable determination of the costs expected to be borne line 4 by the public agency providing new or extended services. line 5 (b)  The revenues of the public agency that has proposed a new line 6 or extended service outside its current service area during the three line 7 fiscal years following the effective date of a contract or agreement line 8 with another public agency to provide a new or extended service. line 9 (c)  The effects on the costs and revenues of any affected public line 10 agency, including the public agency proposing to provide the new line 11 or extended service, during the three fiscal years that the new or line 12 extended service will be provided. line 13 (d)  Any other information and analysis needed to make the line 14 findings required by Section 56824.24. line 15 SEC. 4. Section 56824.10 of the Government Code is amended line 16 to read: line 17 56824.10. Commission proceedings for the exercise of new or line 18 different functions or classes of services or divestiture of the power line 19 to provide particular functions or classes of services, within all or line 20 part of the jurisdictional boundaries of a special district, pursuant line 21 to paragraph (1) of subdivision (b) of Section 56654, may be line 22 initiated by a resolution of application in accordance with this line 23 article. line 24 SEC. 5. Section 56824.12 of the Government Code is amended line 25 to read: line 26 56824.12. (a)  A proposal by a special district to provide a new line 27 or different function or class of services or divestiture of the power line 28 to provide particular functions or classes of services, within all or line 29 part of the jurisdictional boundaries of a special district, pursuant line 30 to paragraph (1) of subdivision (b) of Section 56654, shall be made line 31 by the adoption of a resolution of application by the legislative line 32 body of the special district and shall include all of the matters line 33 specified for a petition in Section 56700, except paragraph (6) of line 34 subdivision (a) of Section 56700, and be submitted with a plan for line 35 services prepared pursuant to Section 56653. The plan for services line 36 for purposes of this article shall also include all of the following line 37 information: line 38 (1)  The total estimated cost to provide the new or different line 39 function or class of services within the special district’s line 40 jurisdictional boundaries. 97 SB 239— 5 — Attachment A line 1 (2)  The estimated cost of the new or different function or class line 2 of services to customers within the special district’s jurisdictional line 3 boundaries. The estimated costs may be identified by customer line 4 class. line 5 (3)  An identification of existing providers, if any, of the new line 6 or different function or class of services proposed to be provided line 7 and the potential fiscal impact to the customers of those existing line 8 providers. line 9 (4)  A written summary of whether the new or different function line 10 or class of services or divestiture of the power to provide particular line 11 functions or classes of services, within all or part of the line 12 jurisdictional boundaries of a special district, pursuant to paragraph line 13 (1) of subdivision (b) of Section 56654, will involve the activation line 14 or divestiture of the power to provide a particular service or line 15 services, service function or functions, or class of service or line 16 services. line 17 (5)  A plan for financing the establishment of the new or different line 18 function or class of services within the special district’s line 19 jurisdictional boundaries. line 20 (6)  Alternatives for the establishment of the new or different line 21 functions or class of services within the special district’s line 22 jurisdictional boundaries. line 23 (b)  The clerk of the legislative body adopting a resolution of line 24 application shall file a certified copy of that resolution with the line 25 executive officer. Except as provided in subdivision (c), the line 26 commission shall process resolutions of application adopted line 27 pursuant to this article in accordance with Section 56824.14. line 28 (c)  (1)  Prior to submitting a resolution of application pursuant line 29 to this article to the commission, the legislative body of the special line 30 district shall conduct a public hearing on the resolution. Notice of line 31 the hearing shall be published pursuant to Sections 56153 and line 32 56154. line 33 (2)  Any affected local agency, affected county, or any interested line 34 person who wishes to appear at the hearing shall be given an line 35 opportunity to provide oral or written testimony on the resolution. line 36 SEC. 6. Article 1.6 (commencing with Section 56824.20) is line 37 added to Chapter 5 of Part 3 of Division 3 of Title 5 of the line 38 Government Code, to read: 97 — 6 —SB 239 Attachment A line 1 Article 1.6. Fire Protection Services line 2 line 3 56824.20. Commission proceedings pursuant to paragraph (2) line 4 of subdivision (b) of Section 56654 may be initiated in accordance line 5 with this article. line 6 56824.22. (a)  A proposal for a change of organization that line 7 involves the exercise of new or extended services outside a public line 8 agency’s current service area by contract or agreement, as defined line 9 in subdivision (n) of Section 56021, shall be made by the adoption line 10 of a resolution of application as follows: line 11 (1)  In the case of a public agency that is not a state agency, the line 12 proposal shall be initiated by the adoption of a resolution of line 13 application by the legislative body of the public agency proposing line 14 to provide new or extended services outside the public agency’s line 15 current service area. line 16 (2)  In the case of a public agency that is a state agency, the line 17 proposal shall be initiated by the director of the state agency line 18 proposing to provide new or extended services outside the agency’s line 19 current service area and be approved by the Governor. line 20 (b)  Prior to submitting a resolution of application pursuant to line 21 this article to the commission, the legislative body of a public line 22 agency or the director of a state agency shall do all of the line 23 following: line 24 (1)  Obtain and submit with the resolution a written agreement line 25 validated and executed by each affected public agency and line 26 recognized employee organization that represents firefighters of line 27 the existing and proposed service providers consenting to the line 28 proposed change of organization. line 29 (2)  Conduct a public hearing on the resolution. Notice of the line 30 hearing shall be published pursuant to Sections 56154 and 56156. line 31 The legislative body of the public agency or the director of the line 32 state agency shall provide an affected public agency or an interested line 33 person who wishes to appear at the hearing the opportunity to line 34 present oral or written testimony on the resolution. line 35 (c)  A proposal for a change of organization submitted pursuant line 36 to this article shall be submitted with a plan for services prepared line 37 pursuant to Section 56653. The plan for services shall include all line 38 of the following information: line 39 (1)  The total estimated cost to provide the new or extended line 40 services in the affected territory. 97 SB 239— 7 — Attachment A line 1 (2)  The estimated cost of the new or extended services to line 2 customers in the affected territory. line 3 (3)  An identification of existing service providers, if any, of the line 4 new or extended services proposed to be provided and the potential line 5 fiscal impact to the customers of those existing providers. line 6 (4)  A plan for financing the exercise of the new or extended line 7 services in the affected territory. line 8 (5)  Alternatives for the exercise of the new or extended services line 9 in the affected territory. line 10 (d)  The clerk of the legislative body of a public agency or the line 11 director of a state agency adopting a resolution of application line 12 pursuant to this article shall file a certified copy of the resolution line 13 with the executive officer. The commission shall process line 14 resolutions of application adopted pursuant to this chapter in line 15 accordance with Section 56824.24. line 16 56824.24. (a)  The commission shall review and approve or line 17 disapprove a proposal for a change of organization as defined in line 18 subdivision (n) of Section 56021 after a public hearing called and line 19 held for that purpose. The commission shall not consider or line 20 approve a proposal that does not comply with the requirements of line 21 subdivision (b) of Section 56824.22. line 22 (b)  (1)  The commission shall not approve a proposal for a line 23 change of organization as defined in subdivision (n) of Section line 24 56021 unless the commission determines that the public agency line 25 will have sufficient revenues to carry out the exercise of the new line 26 or extended services outside its current area, except as specified line 27 in paragraph (2). line 28 (2)  The commission may approve a proposal for a change of line 29 organization as defined in subdivision (n) of Section 56021 where line 30 the commission has determined that the public agency will not line 31 have sufficient revenue to provide the proposed new or different line 32 functions or class of services, if the commission conditions its line 33 approval on the concurrent approval of sufficient revenue sources line 34 pursuant to Section 56886. In approving a proposal, the line 35 commission shall provide that if the revenue sources pursuant to line 36 Section 56886 are not approved, the authority of the public agency line 37 to provide new or extended services shall not be exercised. line 38 (c)  Notwithstanding Section 56375, the commission shall not line 39 approve a proposal for a change of organization as defined in 97 — 8 —SB 239 Attachment A line 1 subdivision (n) of Section 56021 unless the commission finds, line 2 based on the entire record, all of the following: line 3 (1)  The proposed exercise of new or extended services outside line 4 a public agency’s current service area is consistent with the intent line 5 of this division, including, but not limited to, the policies of line 6 Sections 56001 and 56300. line 7 (2)  The commission has reviewed the comprehensive fiscal line 8 analysis prepared pursuant to Section 56800.5. line 9 (3)  The commission has reviewed the executive officer’s report line 10 and recommendation prepared pursuant to Section 56665 and any line 11 testimony presented at the public hearing. line 12 (4)  The proposed affected territory is expected to receive line 13 revenues sufficient to provide public services and facilities and a line 14 reasonable reserve during the three fiscal years following the line 15 effective date of the contract or agreement between the public line 16 agencies to provide a new or extended service. line 17 (d)  At least 21 days prior to the date of the hearing, the executive line 18 officer shall give mailed notice of that hearing to each affected line 19 local agency or affected county, and to any interested party who line 20 has filed a written request for notice with the executive officer. In line 21 addition, at least 21 days prior to the date of that hearing, the line 22 executive officer shall cause notice of the hearing to be published line 23 in accordance with Section 56153 in a newspaper of general line 24 circulation that is circulated within the territory affected by the line 25 proposal proposed to be adopted and shall post the notice of the line 26 hearing on the commission’s Internet Web site. line 27 (e)  The commission may continue from time to time any hearing line 28 called pursuant to this section. The commission shall hear and line 29 consider oral or written testimony presented by any affected local line 30 agency, affected county, or any interested person who appears at line 31 any hearing called and held pursuant to this section. line 32 SECTION 1. Section 56017.2 of the Government Code is line 33 amended to read: line 34 56017.2. “Application” means any of the following: line 35 (a)  A resolution of application or petition initiating a change of line 36 organization or reorganization with supporting documentation as line 37 required by the commission or executive officer. line 38 (b)  A request for a sphere of influence amendment or update line 39 pursuant to Section 56425. 97 SB 239— 9 — Attachment A line 1 (c)  A request by a city or district for commission approval of line 2 an extension of services outside the agency’s jurisdictional line 3 boundaries pursuant to Section 56133. 56133 or 56134. line 4 SEC. 2. Section 56133 of the Government Code is amended to line 5 read: line 6 56133. (a)  A city or district may provide new or extended line 7 services by contract or agreement outside its jurisdictional line 8 boundaries only if it first requests and receives written approval line 9 from the commission in the affected county. line 10 (b)  The commission may authorize a city or district to provide line 11 new or extended services outside its jurisdictional boundaries but line 12 within its sphere of influence in anticipation of a later change of line 13 organization. line 14 (c)  The commission may authorize a city or district to provide line 15 new or extended services outside its jurisdictional boundaries and line 16 outside its sphere of influence to respond to an existing or line 17 impending threat to the public health or safety of the residents of line 18 the affected territory if both of the following requirements are met: line 19 (1)  The entity applying for the contract approval has provided line 20 the commission with documentation of a threat to the health and line 21 safety of the public or the affected residents. line 22 (2)  The commission has notified any alternate service provider, line 23 including any water corporation as defined in Section 241 of the line 24 Public Utilities Code, or sewer system corporation as defined in line 25 Section 230.6 of the Public Utilities Code, that has filed a map and line 26 a statement of its service capabilities with the commission. line 27 (d)  The executive officer, within 30 days of receipt of a request line 28 for approval by a city or district of a contract to extend services line 29 outside its jurisdictional boundary, shall determine whether the line 30 request is complete and acceptable for filing or whether the request line 31 is incomplete. If a request is determined not to be complete, the line 32 executive officer shall immediately transmit that determination to line 33 the requester, specifying those parts of the request that are line 34 incomplete and the manner in which they can be made complete. line 35 When the request is deemed complete, the executive officer shall line 36 place the request on the agenda of the next commission meeting line 37 for which adequate notice can be given but not more than 90 days line 38 from the date that the request is deemed complete, unless the line 39 commission has delegated approval of those requests to the line 40 executive officer. The commission or executive officer shall 97 — 10 —SB 239 Attachment A line 1 approve, disapprove, or approve with conditions the contract for line 2 extended services. If the contract is disapproved or approved with line 3 conditions, the applicant may request reconsideration, citing the line 4 reasons for reconsideration. line 5 (e)  This section does not apply to contracts any of the following: line 6 (1)  Contracts or agreements solely involving two or more public line 7 agencies where the public service to be provided is an alternative line 8 to, or substitute for, public services already being provided by an line 9 existing public service provider and where the level of service to line 10 be provided is consistent with the level of service contemplated line 11 by the existing service provider. This section does not apply to line 12 contracts line 13 (2)  Contracts for the transfer of nonpotable or nontreated water. line 14 This section does not apply to contracts line 15 (3)  Contracts or agreements solely involving the provision of line 16 surplus water to agricultural lands and facilities, including, but not line 17 limited to, incidental residential structures, for projects that serve line 18 conservation purposes or that directly support agricultural line 19 industries. However, prior to extending surplus water service to line 20 any project that will support or induce development, the city or line 21 district shall first request and receive written approval from the line 22 commission in the affected county. This section does not apply to line 23 an line 24 (4)  An extended service that a city or district was providing on line 25 or before January 1, 2001. This section does not apply to a line 26 (5)  A local publicly owned electric utility, as defined by Section line 27 9604 of the Public Utilities Code, providing electric services that line 28 do not involve the acquisition, construction, or installation of line 29 electric distribution facilities by the local publicly owned electric line 30 utility, outside of the utility’s jurisdictional boundaries. line 31 (6)  A fire protection reorganization contract, as defined in line 32 subdivision (a) of Section 56134. line 33 SEC. 3. Section 56134 is added to the Government Code, to line 34 read: line 35 56134. (a)  (1)  For the purposes of this section, “fire protection line 36 reorganization contract” means a contract or agreement for the line 37 exercise of new or extended fire protection services outside a public line 38 agency’s current service area, as authorized by Chapter 4 line 39 (commencing with Section 55600) of Part 2 of Division 2 of Title line 40 5 of this code or by Article 4 (commencing with Section 4141) of 97 SB 239— 11 — Attachment A line 1 Chapter 1 of Part 2 of Division 4 of the Public Resources Code, line 2 that does either of the following: line 3 (A)  Transfers responsibility for providing services in more than line 4 25 percent of the service area of any public agency affected by the line 5 contract or agreement. line 6 (B)  Changes the employment status of more than 25 percent of line 7 the employees of any public agency affected by the contract or line 8 agreement. line 9 (2)  A contract or agreement for the exercise of new or extended line 10 fire protection services outside a public agency’s current service line 11 area, as authorized by Chapter 4 (commencing with Section 55600) line 12 of Part 2 of Division 2 of Title 5 of this code or Article 4 line 13 (commencing with Section 4141) of Chapter 1 of Part 2 of Division line 14 4 of the Public Resources Code, that, in combination with other line 15 contracts or agreements, would produce the results described in line 16 subparagraph (A) or (B) of paragraph (1), shall be deemed a fire line 17 protection reorganization contract for the purposes of this section. line 18 (b)  Notwithstanding Section 56133, a public agency may provide line 19 new or extended services pursuant to a fire protection line 20 reorganization contract only if it first requests and receives written line 21 approval from the commission in the affected county pursuant to line 22 the requirements of this section. line 23 (c)  A request by a public agency for commission approval of line 24 services provided under a fire protection reorganization contract line 25 shall be made by the adoption of a resolution of application as line 26 follows: line 27 (1)  In the case of a public agency that is not a state agency, the line 28 application shall be initiated by the adoption of a resolution of line 29 application by the legislative body of the public agency proposing line 30 to provide new or extended services outside the public agency’s line 31 current service area. line 32 (2)  In the case of a public agency that is a state agency, the line 33 application shall be initiated by the director of the state agency line 34 proposing to provide new or extended services outside the agency’s line 35 current service area and be approved by the Governor. line 36 (d)  The legislative body of a public agency or the director of a line 37 state agency shall not submit a resolution of application pursuant line 38 to this section unless both of the following occur: line 39 (1)  The public agency obtains and submits with the resolution line 40 a written agreement validated and executed by each affected public 97 — 12 —SB 239 Attachment A line 1 agency and recognized employee organization that represents line 2 firefighters of the existing and proposed service providers line 3 consenting to the proposed change of organization. line 4 (2)  The public agency conducts an open and public hearing on line 5 the resolution, conducted pursuant to the Ralph M. Brown Act line 6 (Chapter 9 (commencing with Section 54950) Part 1 Division 2 line 7 Title 5) or the Bagley-Keene Open Meeting Act (Article 9 line 8 (commencing with Section 11120) Chapter 1 Part 1 Division 3 line 9 Title 2), as applicable. line 10 (e)  A resolution of application submitted pursuant to this section line 11 must be submitted with a fire services reorganization contract plan line 12 that conforms to the requirements of Section 56653. The plan shall line 13 include all of the following information: line 14 (1)  The total estimated cost to provide the new or extended fire line 15 protection services in the affected territory. line 16 (2)  The estimated cost of the new or extended fire protection line 17 services to customers in the affected territory. line 18 (3)  An identification of existing service providers, if any, of the line 19 new or extended services proposed to be provided and the potential line 20 fiscal impact to the customers of those existing providers. line 21 (4)  A plan for financing the exercise of the new or extended fire line 22 protection services in the affected territory. line 23 (5)  Alternatives for the exercise of the new or extended fire line 24 protection services in the affected territory. line 25 (f)  The applicant shall cause to be prepared by contract an line 26 independent comprehensive fiscal analysis to be submitted with line 27 the application pursuant to this section. The analysis shall review line 28 and document: line 29 (1)  The costs to the public agency that has proposed to provide line 30 new or extended fire protection services during the three fiscal line 31 years following a public agency entering into a fire protection line 32 reorganization contract, in accordance with the following line 33 requirements: line 34 (A)  The analysis must include all direct and indirect cost impacts line 35 to the existing service provider in the affected territory. line 36 (B)  The analysis must review how the costs of the existing line 37 service provider compare to the costs of services provided in line 38 service areas with similar populations and of similar geographic line 39 size that provide a similar level and range of services and shall line 40 make a reasonable determination of the costs expected to be borne 97 SB 239— 13 — Attachment A line 1 by the public agency providing new or extended fire protection line 2 services. line 3 (2)  The revenues of the public agency that has proposed a new line 4 or extended fire protection services outside its current service area line 5 during the three fiscal years following the effective date of a line 6 contract or agreement with another public agency to provide a line 7 new or extended service. line 8 (3)  The effects on the costs and revenues of any affected public line 9 agency, including the public agency proposing to provide the new line 10 or extended fire protection services, during the three fiscal years line 11 that the new or extended fire protection services will be provided. line 12 (4)  Any other information and analysis needed to support the line 13 findings required by subdivision (j). line 14 (g)  The clerk of the legislative body of a public agency or the line 15 director of a state agency adopting a resolution of application line 16 pursuant to this section shall file a certified copy of the resolution line 17 with the executive officer. line 18 (h)  (1)  The executive officer, within 30 days of receipt of a line 19 public agency’s request for approval of a fire protection line 20 reorganization contract, shall determine whether the request is line 21 complete and acceptable for filing or whether the request is line 22 incomplete. If a request does not comply with the requirements of line 23 subdivision (d), the executive officer shall determine that the line 24 request is incomplete. If a request is determined not to be complete, line 25 the executive officer shall immediately transmit that determination line 26 to the requester, specifying those parts of the request that are line 27 incomplete and the manner in which they can be made complete. line 28 When the request is deemed complete, the executive officer shall line 29 place the request on the agenda of the next commission meeting line 30 for which adequate notice can be given but not more than 90 days line 31 from the date that the request is deemed complete. line 32 (2)  The commission shall approve, disapprove, or approve with line 33 conditions the contract for extended services following the hearing line 34 at the commission meeting, as provided in paragraph (1). If the line 35 contract is disapproved or approved with conditions, the applicant line 36 may request reconsideration, citing the reasons for line 37 reconsideration. line 38 (i)  (1)  The commission shall not approve an application for line 39 approval of a fire protection reorganization contract unless the line 40 commission determines that the public agency will have sufficient 97 — 14 —SB 239 Attachment A line 1 revenues to carry out the exercise of the new or extended fire line 2 protection services outside its current area, except as specified in line 3 paragraph (2). line 4 (2)  The commission may approve an application for approval line 5 of a fire protection reorganization contract where the commission line 6 has determined that the public agency will not have sufficient line 7 revenue to provide the proposed new or different functions or class line 8 of services, if the commission conditions its approval on the line 9 concurrent approval of sufficient revenue sources pursuant to line 10 Section 56886. In approving a proposal, the commission shall line 11 provide that, if the revenue sources pursuant to Section 56886 are line 12 not approved, the authority of the public agency to provide new line 13 or extended fire protection services shall not be exercised. line 14 (j)  The commission shall not approve an application for line 15 approval of a fire protection reorganization contract unless the line 16 commission finds, based on the entire record, all of the following: line 17 (1)  The proposed exercise of new or extended fire protection line 18 services outside a public agency’s current service area is consistent line 19 with the intent of this division, including, but not limited to, the line 20 policies of Sections 56001 and 56300. line 21 (2)  The commission has reviewed the comprehensive fiscal line 22 analysis prepared pursuant to subdivision (f). line 23 (3)  The commission has reviewed any testimony presented at line 24 the public hearing. line 25 (4)  The proposed affected territory is expected to receive line 26 revenues sufficient to provide public services and facilities and a line 27 reasonable reserve during the three fiscal years following the line 28 effective date of the contract or agreement between the public line 29 agencies to provide a new or extended fire protection services. line 30 (k)  At least 21 days prior to the date of the hearing, the executive line 31 officer shall give mailed notice of that hearing to each affected line 32 local agency or affected county, and to any interested party who line 33 has filed a written request for notice with the executive officer. In line 34 addition, at least 21 days prior to the date of that hearing, the line 35 executive officer shall cause notice of the hearing to be published line 36 in accordance with Section 56153 in a newspaper of general line 37 circulation that is circulated within the territory affected by the line 38 proposal proposed to be adopted and shall post the notice of the line 39 hearing on the commission’s Internet Web site. 97 SB 239— 15 — Attachment A line 1 (l)  The commission may continue from time to time any hearing line 2 called pursuant to this section. The commission shall hear and line 3 consider oral or written testimony presented by any affected local line 4 agency, affected county, or any interested person who appears at line 5 any hearing called and held pursuant to this section. line 6 SEC. 7. line 7 SEC. 4. The Legislature finds and declares that Section 6 3 of line 8 this act, which adds Section 56824.22 56134 to the Government line 9 Code, furthers, within the meaning of paragraph (7) of subdivision line 10 (b) of Section 3 of Article I of the California Constitution, the line 11 purposes of that constitutional section as it relates to the right of line 12 public access to the meetings of local public bodies or the writings line 13 of local public officials and local agencies. Pursuant to paragraph line 14 (7) of subdivision (b) of Section 3 of Article I of the California line 15 Constitution, the Legislature makes the following findings: line 16 This act provides for notice to the public in accordance with line 17 existing provisions of the Cortese-Knox-Hertzberg Local line 18 Government Reorganization Act of 2000 and will ensure that the line 19 right of public access to local agency meetings is protected. O 97 — 16 —SB 239 Attachment A