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HomeMy WebLinkAboutMINUTES - 04231996 - C41 6 TO: BOARD OF SUPERVISORS Contra 5 FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR o f 's Costa .:;: :-:.- ,..o= County DATE: April 17, 1996 7��r�a coue� SUBJECT: OPPOSITION TO AB 2846 (SWEENEY) RE COUNTY APPROVAL OF DEVELOPMENT WITHIN THE SPHERE OF INFLUENCE OF A CITY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in OPPOSITION to AB 2846 by Assemblyman Mike Sweeney, which would require the county and a city to enter into a sphere of influence agreement before the county could approve development within the city's sphere of influence. BACKGROUND: Current law requires LAFCO to adopt a sphere of influence for each local agency, including a city, with respect to the probable physical boundaries and service area of that agency. AB 2846 has been introduced by Assemblyman Sweeney. As introduced, AB 2846 would require a city and the county to adopt a valid sphere of influence agreement prior to the approval of a development project within the city's sphere of influence. The agreement would have to contain specified elements. Any development approved within a city's sphere of influence would have to be consistent with the terms of the agreement. AB 2846 also increases from 30 days to 90 days the period of time within which a property tax exchange agreement would have to be negotiated whenever there is a change in the service area obligations resulting from the jurisdictional change. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): e—la" ze �& 5;v� ACTION OF BOARD ON APO 23, 1996 APPROVED AS RECOMMENDED OTHER X IT IS BY THE BOARD ORDERED that the County Administrator and the Community Development Director are REQUESTED to provide more infowmation and input solicited from the Planning Commission and the Contra Costa County. Mayors ' Conference to the Board of Supervisors at the May 7, 1996 , Board meeting prior to the Board taking a position AB 2846 (SH-eeney) . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: 1,4,5 ;and 2 NOES. 3 AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: None ABSTAIN: None OF SUPERVISORS ON THE DATE SHOWN. ATTESTED April 2 3 1996 Contact: PHIL BATC ELOR,CLERK OF THE BOARD cc: ER SAND COUNTY AD INIST ATOR, See Page 2 ' BY P The Director of the Growth Management and Economic Development Agency recommends that the Board of Supervisors oppose AB 2846. His comments are as follows: The Board of Supervisors should oppose this bill because it will change the balance of relations between cities and counties without consideration of the fiscal impacts of this action. It will create a chain of events that will further reduce the ability of counties to consider strategic options. It will have a negative affect on expanding spheres of influence for communities which are very important to them because of the future restrictions placed on development. The legislation needs to be viewed in terms of its numerous implications before it is passed. In opposing the bill, the California State Association of Counties commented: "This bill represents a major intrusion into county land-use authority, with the potential to greatly impair a county's ability to ensure that revenues are adequate to meet countywide service responsibilities. No new development could take place without agreeing to annexation of the property by the city and allowing significant city control over the project... . In effect, this would prohibit any development that was not contiguous to the city and place future decisions regarding economic development solely with cities." For these reasons, it is recommended that the Board of Supervisors oppose AB 2846. cc: County Administrator Director, GMEDA Community Development Director The Honorable Mike Sweeney Assemblyman, 18th District Room 4130 State Capitol Sacramento, CA 95814 Les Spahnn; Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 Planning Commission (via CDD) Contra Costa County Mayors ' Conference (via Clerk of the Board) - 2 - California State Association of Counties CONTRA COSTA COUNTY RECEIVED LEGISLATIVE ACTION s MAR 12 1996 NEEDED March 8, 1996 OFFICE OF COUNTY ADMINISTRATOR 1100 K Street Suite 101 TO: The following County Administrative Officers: Sacramento Susan Muranishi, Alameda Count Robert Thomas, Sacramento County California Y 95814 4Phi1 Batchelor, Contra Costa County Michael Johnson, Solano County Telephone Joel Heinrichs, Kern County Larry Spikes, Kings County 916.327.7500 Roy Pederson, Yolo County Stell Manfredi, Madera County Facsimile Will Randolph, Fresno County Larry Parrish, Riverside County 916.441.5507 Sally Reed, Los Angeles County James Hlawek, San Bernardino Co Jan Mittermeier, Orange County FROM: DeAnn Baker Legislative Representative SUBJECT: COUNTY LAND USE AUTHORITY& REVENUES AT RISK An important vote will be cast by your legislative representative in the Assembly Local Government Committee on AB 2846, by Assembly Member Michael Sweeney. This measure is sponsored by the League of California Cities, and is very similar to AB 1341 (Sweeney) of last year, which narrowly failed passage in the Assembly Local Government Committee in January. AB 2846 may be heard as early as Wednesday, March 27, 1996. The bill would prohibit counties from approving development within the sphere of influence of a city, unless a county has reached a new sphere of influence agreement with its' cities. This new sphere of influence agreement outlined in the bill must be met prior to the board exercising its land use authority. This would include agreement with cities on infrastructure to serve the project, planning and development requirements which apply to the project, and a schedule for complying with annexation and property tax revenue sharing agreements associated with the project. Any project approved by the county must comply with this new sphere of influence agreement. This is a major intrusion into county land use authority. No new development could take place without agreeing to annexation of the property by the city, and allowing significant city control over the project as described above. The proponents claim counties are approving substandard development, which cities must then accept or spend significant revenues to upgrade. They also claim that cities are at a significant disadvantage under current law when negotiating annexation agreements. Please take a close look at AB 2846 to determine the implications to your county. Please personally contact your legislative representative urging them to vote against this measure. A copy of the bill is attached for your immediate attention. , 1 f CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION ASSEMBLY BILL No. 2846 1 . Introduced by Assembly Member Sweeney e February 22, 1996 r - An act to add Section 65964 to the Government Code, and i to amend Section 99 of the Revenue and Taxation Code, 1 relating to local agencies. LEGISLATIVE COUNSEL'S DIGEST . c AB 2846, as introduced, Sweeney. Local agencies:. sphere. of influence. Existing law requires a county and a city to adopt general ! plans for land use and development within.their jurisdictions, and requires the local agency formation commission to adopt a sphere of influence for each local agency, including a city, with respect to the probable physical boundaries and service area of that. agency. Existing law also establishes various conditions, and permits cities and counties to impose x.._. r conditions in specified circumstances, upon the approval or conditional approval of development projects: ; .. This bill would require a city and county in which that city is. located, prior to, the approval of a development, project within a city's sphere of influence, to adopt a valid sphere of influence agreement, containing specified elements. This bill would also require any development project that is approved within a city's sphere of influence to be consistent with the sphere of influence agreement between that city and the county in which .that city, is located. By imposing new duties upon cities and counties with respect to the approval of 99 + A AB. 2846 — 2 — j development agreements, this bill would impose a ' state-mandated local program. Existing law requires those local agencies affected by a proposed jurisdictional. change to negotiate, in accordance with specified procedures, an exchange of property tax revenues to reflect the changes in service area obligations that will result from the jurisdictional change. Existing law limits this negotiation period to no more than 30 days. This bill would increase this 30-day limit to 90 days. 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, including the creation of a State Mandates .Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide.costs exceed $1,000,000. This bill would provide that. if the Commission on..State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 65964 is added to the 2 Government Code, to read: 3 65964. (a) Prior to the approval of a development 4 project located within a city's sphere of influence, the city 5 and county shall adopt a valid sphere of influence 6 agreement. The sphere, of influence agreement shall 7 address elements, including, but not be limited to, all of 8 _ the following: 9 (1) Services and infrastructure to be provided to the . 10 development. 11 (2) Service and infrastructure providers. 12 (3) Planning and development requirements 13 applicable to the development. 14 (4) A schedule for complying with the Cortese-Knox 15 Local Government Reorganization Act of 1985 (Division ' 99 c.q/ ` — 3 — AB 2846 i ea 1 3 (commencing with Section 56000) of Title 5 of the i 2 Government Code) for annexation of the territory to the by a 3 city, including the requirement of Section 99 of the ance 4 Revenue and Taxation Code that negotiations to tax 5 determine the amounts of property tax revenues to be that 6 exchanged be completed within 90 days. mets ;, 7 (b) Any approved development project within the 8 city's sphere of influence shall be consistent . with the 9 sphere of influence agreement between the city and the urse 10 county. " .ted 11 SEC. 2. Section 99 of the Revenue and Taxation Code for 12. is amended to read: tate 13, 99. (a) For the "purposes of -the computations t do 14 required by this chapter: for 15 (1) In the case of a jurisdictional change, other than a 16 city incorporation or a formation of a district as defined tate 17 in Section 2215, the auditor shall adjust the allocation of i by 18 property tax revenue determined pursuant to Section 96 ade 19 or 96.1, or the annual tax increment determined pursuant 20 to Section 96.5, for local agencies whose service area or yes. ' 21 service responsibility would be altered by the 22 jurisdictional change, as determined pursuant to 23 subdivision (b) or (c) . ws• �., 24 (2) In the case of a city incorporation, the auditor shall ( 25 assign the allocation of property tax revenues determined the 26 pursuant to Section 56842 of the Government Code and 27 the adjustments in tax revenues that may occur pursuant ent 28. to Section 56845 of the Government Code to the newly pity 29 formed city or district and shall make the adjustment as ice 30 determined by Section 56842 in the allocation of property call 31 tax revenue determined pursuant to Section 96 or 96.1 for of 32 each local agency whose service area or service l\ 33 responsibilities would be altered by the incorporation. -he 34 (3) In the case of a formation of a district as defined in 35 Section 2215, the auditor shall assign .the allocation of 36 propertytax revenues determined pursuant to Section ats 37 56842 of the Government Code to the district and shall 38 make the adjustment as determined by Section 56842 in pox 39 the allocation of property tax revenue determined on �: 40 pursuant to Section 96 or 96.1 for.each local agency whose 99 99 �I I AB 2846 — 4 — I 4 - 1 service area or service responsibilities would be altered .' 2 by the formation. 3 (b) Upon the filing of an application or a resolution 4 pursuant to the Cortese-Knox Local Government 5 Reorganization- Act of 1985 (Division 3 (commencing 6 with Section 56000) of Title 5 of the Government Code) , i 7 but prior to the issuance of a certificate of filing, the 8 executive officer shall give notice of the filing to the 9 assessor and auditor of each county within which the 10 territory subject to the jurisdictional change is located. 11 This notice shall specify each local agency whose service 12 area or responsibility will be altered by-the jurisdictional . 13 change. 14 (1) (A) The county assessor shall provide to the 15 county auditor, within 30 days of the notice of filing, a 16 report which identifies the 'assessed valuations for the 17 territory subject to the jurisdictional change and the tax 18 rate area or areas in which the territory exists. 19 (B) The auditor shall estimate the amount of property .r 20 tax revenue generated within the territory that is the 21 . subject of the jurisdictional change during the current .22 fiscal year. 23. (2) The auditor shall estimate what proportion of the 24 property tax revenue determined pursuant to paragraph r 25 (1) is attributable to each local agency pursuant to 26 Section 96.1 and Section 96.5. 27 (3) Within 45 days of notice of the filing of an 28 application or resolution, the auditor shall notify the 29 governing body of each local agency whose service area 30 'or service responsibility will be altered by the amount of, 31 and allocation factors with respect to, property tax 32 revenue estimated pursuant to paragraph .(2) that is 33 subject to a negotiated exchange. 34 (4) Upon receipt of the estimates pursuant to 35 paragraph (3) the local agencies shall commence 36 negotiations to determine the amount of property tax 37 revenues to be exchanged between and among' the local 38 agencies. This negotiation period shall not exceed 30 90 39 days. 99 i qi — 5 — AB 2846 altered 1 The exchange may be limited to an exchange of .2 property tax revenues from the annual tax increment Aution 3 generated in the area subject to the jurisdictional change ament 4 and attributable to the local agencies whose service area -Incing 5 or service responsibilities will be altered by the proposed erode) - 6 jurisdictional change. The final exchange resolution shall g, the 7 specify how the annual tax increment shall be allocated to the 8 in future years. !h the 9 (5) In the event that a jurisdictional change would sated. 10 affect the service area or service responsibility of one or .-rvice 11. more special districts, the board of supervisors of the lional 12. county or counties in which the districts are located shall, 13 on behalf of the district or districts, negotiate any o the .14 exchange of property tax revenues. ing; a 15 (6) Notwithstanding any other provision of law, the )r the 16 executive .officer. shall not issue a certificate of filing ;-ie tax 17 pursuant to Section 56828 of the Government Code until 18 the local agencies included in the property tax revenue �perty 19 exchange negotiation, within the 88/dfty 90-day is the 29 'n'egotiation period, present resolutions adopted by each irrent 21 . sccounty and city whereby each, county and city 22 .agrees to accept the exchange of property tax revenues. )f the 23 . (7). In the event that the commission modifies the ;raph24 . proposal or its resolution of determination; any local ( 0 ! nt to 0 25 'agency whose service area or service responsibility would 26 be altered by the ,proposed jurisdictional change may )f an 27 request, and the executive officer shall grant, 15 days for y the 28 the affected. agencies, pursuant to paragraph (4) to area 29 renegotiate an exchange of property tax revenues. nt of, 30 Notwithstanding the time period specified in paragraph y tax 31 (4) , if the resolutions required pursuant to paragraph (6) lat is 32 are not presented to the executive officer within the 33 .15-day period, all proceedings of the jurisdictional change Ato 34 shallautomatically be terminated. .ence 3.5 (8) No later than the date on which the certificate o� Y tax .36 completion of the jurisdictional change is recorded with local 37 the county recorder., the executive officer shall notify the 3090 38. auditor or ..auditors of the exchange of property tax 39 revenues and the auditor or auditors shall make the 40, appropriate ad ustments as provided in subdivision a 99 99 AB 2846 — 6 — I 6 - 1 (c) Whenever a jurisdictional change is not required, 2 to be reviewed and approved by a local agency formation 3 commission, the local agencies whose service area or 4 service responsibilities would be altered by the proposed 5 change, shall' ' give notice to the State Board of 6 Equalization and the assessor and auditor of each county 7 within which the territory subject to the jurisdictional 8 change is located. This notice shall specify each local 9 agency whose service area or responsibility will be 10 altered by the jurisdictional change and request the 11 auditor and assessor to make the determinations required 12 . pursuant to paragraphs (1) and (2) of subdivision (b) . 13 Upon notification by the auditor of the amount of, 'and 14 allocation factors with respect to, property tax subject to 15 exchange, the local agencies, pursuant to the provisions 16 of paragraphs (4) , (5) , and (6) of subdivision (b) , shall 17 determine the amount of property 'tax revenues to be 18 exchanged between and among the local agencies. 19 Notwithstanding any other provision of law, no such 20 jurisdictional change..shall become effective until each. 21 county and city included in these negotiations agrees, by 22 resolution, to accept the negotiated exchange of property 23 tax revenues. The exchange may be limited to an 24 exchange of property tax- revenue from the annual tax i f 25 increment generated in the area subject to the �- 26 jurisdictional change and attributable. to the local 27 agencies whose service area or service responsibilities 28 will be altered by the proposed jurisdictional change. The i < 29 final exchange resolution shall specify how the annual tax 30 increment shall be allocated in future years. Upon the 31 adoption of the resolutions required pursuant to this 32 section, the adopting agencies shall notify ,the auditor 33 who shall make the appropriate adjustments as provided 34 in subdivision (a) . 35 (d) With respect to adjustments in the allocation -of 36 property taxes pursuant.to this section, a county and any 37 local agency or agencies within the county may develop 38 and adopt a master property tax transfer agreement. The 39 agreement may be revised from time to time by, the f ^ 40 parties subject to the agreement. 99 - 7 — AB 2846 equired. 1 (e) Except as otherwise provided in subdivision (f) , rmation 2 for the purpose of determining. the amount of property area or 3 tax to be allocated in the 1979-80 fiscal year and each fiscal `oposed 4 year thereafter for those local agencies that were affected ►ard of 5 by a jurisdictional change which was filed with the State county 6 Board of Equalization after January 1, 1978, but on or ictional ` ' ® 7 before January 1, 1979. The local agencies shall determine !h local 8 by resolution the amount of property tax revenues to be will be 9 exchanged between and among the. affected agencies est the 10 and notify the auditor of-the determination. -1quired 11 (f) For .the purpose of determining the amount of on (b) . 12 property tax to,be allocated in the 1979-80 fiscal year and of and 13 each fiscal year thereafter, for a city incorporation that '�'Ject to 114 -was filed pursuant to Sections 54900 to 54904 after January visions 15 1, 1978; but on or before January 1, 1979,; the amount of 1) , shall 16 property tax revenue considered to have been received s to be 17 by the jurisdiction for the 1978-79 fiscal year shall be ..encies. 18 equal to two-thirds of the amount of property tax revenue .o such 19 projected in the final local agency formation commission -il each ® 20 staff report pertaining to the incorporation multiplied by -ees, by 21 the proportion that the total amount of property tax -operty 22 revenue received by all jurisdictions within the county to an 23 for I the 1978-79 fiscal year bears to the total amount of ual tax 24 property tax revenue received by all jurisdictions within to the ® 25 the county for the 1977-78 fiscal year. Except, however, local 26 in the event that the final commission report did not abilities 27 specify the amount of property tax revenue projected for ;e. The 28 that incorporation, the commission shall by October 10, Dual tax 29 determine pursuant to Section 54790.3 of the on the 30 Government Code the amount of property tax to be to this 31 transferred to the city. tuditor 32. The provisions of this subdivision shall also apply to the ovided r 0 33, allocation of property taxes for the 1980-81 fiscal year and 34 each fiscal year thereafter for incorporations approved by tion 'of 35 the voters in June 1979. nd any 36 (g) For the purpose of the computations made evelop 37 pursuant to this section, in the case of a district formation it. The 38 that was filed pursuant to Sections 54900 to 54904, by the 39 inclusive, of the Government Code after January 1978, 0 40 but before January 1, 1979, the amount of property tax to 99 99 f AB 2846 — 8 — I 81 be allocated to the district for the 1979-80 fiscal year and 2 ' each fiscal year thereafter shall be determined pursuant , 3 to Section 54790.3 of the. Government Code. 4 (h) For the purposes of the computations required by 5 this chapter, in the case of a jurisdictional change, other 6 than a change requiring an adjustment by the .auditor 7 pursuant to subdivision (a) , the auditor shall adjust the i 8 allocation of property tax revenue determined pursuant { 9 to Section 96 or 96.1 or its predecessor section, or the 10 annual tax increment determined pursuant to Section 11 96.5 or its predecessor section, for each local school 12 district, community . college district, or county 13 superintendent of schools whose service area or .service 14 responsibility would be altered by the . jurisdictional 15 change, as determined as follows: 16 (1) The governing body of each district, county j 17 superintendent of schools, or county whose service areas 18. or service responsibilities would be altered by the change 19- shall determine the amount of property tax revenues to 20 be exchanged between and among the affected 21 jurisdictions. This determination shall be adopted by each 22 "affected jurisdiction by: resolution. For 'the purpose of 23 negotiation, the county auditor shall furnish the parties 24 and the county board of education with an estimate of the . 25 property tax revenue subject to negotiation. 26 (2) In the event that the affected jurisdictions are 27 unable to agree, within 60 days after the effective date of 28 the jurisdictional change, and if all the jurisdictions are 29 wholly within one county,the county board of education 30 shall,by resolution, determine the amount of property tax .31 . revenue to be exchanged. If the jurisdictions are in more 32 ' than one county, the State Board of Education shall, by 33 resolution, within 60 days after the effective date of the 34 jurisdictional change, determine the amount of property -� 35 tax to be exchanged. 36 (3) Upon adoption of any resolution pursuant to this 37 .subdivision, the adopting jurisdictions or State Board of 38 Education shall notify the county auditor who shall make 39 the appropriate adjustments as provided in subdivision r. 40 (a) . t . 99 - 9 — A B 2846 (i) For purposes of subdivision (h) , the annexation by i ,and t 2 a community college district of territory within a county 3 not previously served by a community college district is ,ed by 4 an alteration of service area. The community college ' other 5 district and the county shall negotiate the amount, if any, editor 6 of property tax revenues to be exchanged. In these 7 negotiations, there shall be taken into consideration the st the st theant 8 amount of revenue received from the timber yield tax -sthe 9 and forest reserve receipts by the community college -ction 10 district in the area not previously served. In no event shall >chool 11 the property tax revenue to be exchanged exceed the ounty 12 amount of property tax revenue collected prior to the 7rvice 13 annexation for the purposes of paying tuition expenses of tional 14 residents enrolled in the community college district, 15 adjusted each year by the percentage change in ounty ,, 16 population and the percentage change in the cost of areas 17 living, or per capita personal income, whichever is lower, .xange 18 less the amount of revenue received by the community aes to 19 college district in the annexed area from the timber yield 'ected 20 tax and forest reserve receipts. each 21 (j) At any time after a jurisdictional change is )se of 22 effective, any of the local agencies party to the agreement ,arties 23 to exchange property tax revenue may renegotiate the of the 24 agreement with respect to the current fiscal year or 25 subsequent fiscal years, subject to approval by all local is are 26 agencies affected by the renegotiation. ate of 27 SEC. 3. Notwithstanding Section 17610 of the is are 28 Government Code, if the Commission on State Mandates �ation 29 determines that this act contains costs mandated by the -ty tax 30 state, reimbursement to local agencies and school more 31 districts for those .costs shall be made pursuant to Part 7 ill, by 32 (commencing with Section 17500) of Division 4 of Title 7f the 33 2 of the Government Code. If the statewide cost of the ert 34 claim for reimbursement does not exceed one million p y 35 dollars ($1,000,000) , reimbursement shall be made from o this 36 the State Mandates Claims Fund. lyd of 37 'Notwithstanding Section 17580 of the Government make 38 Code, unless otherwise specified, the provisions of this act vision l 99 99 , AB 2846 — lo — 1 shall become operative on the same date that the act 2 takes effect pursuant to the California Constitution. i i 1 t 0 99