SPECIAL MEETING AGENDA SPECIAL DISTRICTS ADVISORY COMMITTEE

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1 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: SPECIAL MEETING AGENDA SPECIAL DISTRICTS ADVISORY COMMITTEE Friday, November 17, 2017 County of San Diego Operations Center UCSD Extension Suite Hazard Way, San Diego, California Chair Kimberly Thorner Olivenhain Municipal Water District Vice Chair Julie Nygaard Tri City Health Care District ** Please note this special meeting will be held concurrently with an earlier noticed regular meeting of the Special Districts Advisory Committee at the same time/place, and is limited to addressing Chair appointments to fill unexpired terms on the Committee. ** 9:30 A.M CALL TO ORDER BY CHAIR PLEDGE OF ALLEGIANCE ROLL CALL AND INTRODUCTIONS AGENDA REVIEW The Chair will consider requests to remove or rearrange items on the agenda. OPEN TIME This portion of the meeting is reserved for persons desiring to address the Committee on any matter not on the current agenda germane to the Committee. All statements that require a response will be referred to LAFCO staff for reply in writing or will be paced on a future agenda of the Committee. Speakers are limited to three minutes. COMMITTEE APPOINTMENTS As provided under adopted policy the Chair will make appointments to fill two unexpired terms on the Special Districts Advisory Committee. Appointees will immediately assume terms. ADJOURNMENT

2 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: REGULAR MEETING AGENDA SPECIAL DISTRICTS ADVISORY COMMITTEE Friday, November 17, 2017 County of San Diego Operations Center UCSD Extension Suite Hazard Way, San Diego, California Chair Kimberly Thorner Olivenhain Municipal Water District Vice Chair Julie Nygaard Tri-City Health Care District 9:30 A.M CALL TO ORDER BY CHAIR PLEDGE OF ALLEGIANCE ROLL CALL AND INTRODUCTIONS AGENDA REVIEW The Chair will consider requests to remove or rearrange items on the agenda. OPEN TIME This portion of the meeting is reserved for persons desiring to address the Committee on any matter not on the current agenda germane to the Committee. All statements that require a response will be referred to LAFCO staff for reply in writing or will be paced on a future agenda of the Committee. Speakers are limited to three minutes. CONSENT ITEMS All items calendared as consent are considered ministerial or non-substantive and subject to a single motion approval. The Chair will also consider requests to pull an item for discussion. 1. Approval of Meeting Minutes February 17, 2017 (Action) The Committee will consider approving summary minutes prepared by LAFCO staff for the February 17, 2017 meeting held at the County Administrative Center. BUSINESS ITEMS 2. Implementation Options for Senate Bill 107 Appointment of a Special District Representative to Serve on Countywide Oversight Board for Successor Redevelopment Agencies (Action) The Committee will review options and policy preferences in appointing a special district representative to serve on a single countywide oversight board tasked with completing the draw-down of remaining activities of successor redevelopment agencies in San Diego. 1 1

3 Special Districts Advisory Committee November 17, 2017 Meeting Agenda BUSINESS ITEMS CONTINUED 3. Update on the Development of a New Five-Year Study Schedule Calendaring Municipal Service Reviews and Sphere Updates (Action) The Committee will receive an update on the development of a new LAFCO study schedule to fulfill the Commission s statutory requirement to prepare comprehensive planning documents - municipal service reviews and sphere updates every five years. Feedback generated from the Committee will inform the later presentation of a draft study schedule for Commission approval at a future meeting. 4. Legislative Report (Information) The Committee will receive a report on the conclusion of the first year of the Legislature s session as it relates to bills and other related matters affecting LAFCOs. This includes discussing the recommendations of the Little Hoover Commission following its two-year long review of special districts and LAFCOs oversight role therein. Feedback generated from the Committee will be conveyed to the Commission as appropriate. STAFF UPDATES COMMITTEE MEMBER REPORTS AND ANNOUNCEMENTS ADJOURNMENT TO NEXT REGULAR MEETING Friday, December 15, 2017 Attest to Posting: Keene Simonds Executive Officer Any person with a disability under the Americans with Disabilities Act (ADA) may receive a copy of the agenda or a copy of all the documents constituting the agenda packet for a meeting upon request. Any person with a disability covered under the ADA may also request a disability-related modification or accommodation, including auxiliary aids or services, in order to participate in a public meeting. Please contact the LAFCO office at least three (3) working days prior to the meeting for any requested arraignments or accommodations. 2 2

4 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: AGENDA REPORT November 17, 2017 Item No. 1 (Consent/Action) November 9, 2017 TO: FROM: Special Districts Advisory Committee Executive Assistant SUBJECT: Approval of Meeting Minutes February 17, 2017 SUMMARY Staff has prepared minutes for the last meeting of the Special District Advisory Committee held on February 17, The minutes are being presented for formal approval with any desired corrections or clarifications as requested by Committee members. BACKGROUND The Ralph M. Brown Act was enacted by the State Legislature in 1953 and establishes standards for the public to attend and participate in meetings of local government bodies. The Brown Act requires and among other items public agencies to maintain written minutes for all qualifying meetings. DISCUSSION / ANALYSIS This item is for the Committee to consider approving action minutes for the February 17, 2017 regular meeting as recorded by staff. All members were present with the exception of the following persons: Gary Arant; Gary Croucher; Julie Nygaard; and Terry Thomas. ALTERNATIVES FOR ACTION The following alternatives are available to the Committee: Alternative One (Recommended): Approve the draft action minutes prepared for the February 17, 2017 regular meeting with any desired corrections or clarifications. 3 1

5 Special District Advisory Committee Agenda Item No. 1 November 17, 2017 Meeting Alternative Two: Continue the item to the next regular meeting and provide direction as needed. RECOMMENDATION It is recommended the Committee proceed with the action identified in the preceding section as Alternative One. PROCEDURES This item has been agendized as part of the consent calendar. Accordingly, a successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation as provided unless otherwise specified by the Committee. Respectfully, Ruth Arellano Executive Assistant Attachment: 1) Draft Minutes for February 17, 2017 Meeting 4 2

6 ATTACHMENT ONE DRAFT LOCAL AGENCY FORMATION COMMISSION SPECIAL DISTRICTS ADVISORY COMMITTEE FEBRUARY 17, 2017 MEETING There being a quorum present, the meeting was convened at 9:30 a.m., by Chairwoman Kimberly Thorner (Olivenhain MWD). Present Committee Members were Jack Bebee (Fallbrook PUD), Bill Haynor (Whispering Palms CSD), Tom Kennedy (Rainbow MWD), Erin Lump (Rincon del Diablo MWD), John Pastore (Rancho Santa Fe CSD), Augie Scalzitti (Padre Dam MWD), Joel Scalzitti (Helix WD), Dennis Shepard (North County CD), Tom Pocklington (Bonita-Sunnyside FPD), and Robert Thomas (Pomerado CD). LAFCO staff present were LAFCO Consultant Harry Ehrlich, Chief Analyst Robert Barry, Local Governmental Analyst Joe Serrano, and Executive Assistant Ruth Arellano. Item 1 Pledge of Allegiance / Roll Call Tom Pocklington led the Pledge of Allegiance at the meeting. The Advisory Committee Secretary performed the roll call with the following absences noted: Gary Arant (Valley Center MWD), Gary Croucher (Otay WD), Julie Nygaard (Tri-City HCD), and Terry Thomas (South Bay ID). Item 2 Approval of Minutes of September 16, 2016 On motion of Tom Kennedy, seconded by Joel Scalzitti, and carried unanimously by the Committee Members present; the Advisory Committee dispensed with reading the minutes of September 16, 2016 and approved the draft prepared by staff without changes. Item 3 Consultant s Recommended Agenda Revisions LAFCO Consultant Harry Ehrlich indicated that there were no revisions to the agenda. Item 4 Public Comment Chairwoman Thorner indicated there were no speaker slips received from members of the public for comments. Item 5 Selection of Chairperson and Vice Chairperson for 2017 Harry Ehrlich opened the nominations for the Advisory Committee Chair and Vice Chair positions for Tom Pocklington motioned to close the nominations, the following actions were made: 5

7 On motion of Jack Bebee to nominate Kimberly Thorner as the 2017 Chairwoman, seconded by Tom Pocklington, and carried unanimously by the Committee Members present. On motion of Dennis Shepard to nominate Julie Nygaard as the 2017 Vice Chairwoman, seconded by Bill Haynor, and carried unanimously by the Committee Members present. Item 6 Implementation of SB 1266 Procedure Harry Ehrlich provided information to the committee regarding implementation of SB 1266 procedures related to Joint Powers Authorities filings with LAFCO after July 1, Item 7 Discussion of Considering Filling of Position Vacancy(s) Chairwoman Thorner informed the Committee about two recent vacancies by members Margarette Morgan and Gary Croucher. She indicated the two vacancies could be filled by a re-election process or Committee appointment. Ms. Thorner also indicated the Otay Water District shared interest in their continued representation on the Committee. Harry Ehrlich indicated a Health Care District, Parks and Recreation, Community Services District or possibly a water or fire district may be interested in having representation on the Committee as well. After discussion, the Committee agreed to create a three-member committee consisting of: Chairwoman Kimberly Thorner, Joel Scalzitti and Bill Haynor to appoint new members to fill the current vacancies and any upcoming vacancy that may occur during the remainder of the year. Item 8 Legislative Report Update Harry Ehrlich provided recent legislative updates to the Advisory Committee. Item 9 Committee Member Announcements and Agency Activity Updates The Advisory Committee members provided updates and information on their district s activities. Item 10 Adjournment There being no further business to come before the Special Districts Advisory Committee, the meeting was adjourned at 10:47 a.m. RUTH ARELLANO EXECUTIVE ASSISTANT SAN DIEGO LOCAL AGENCY FORMATION COMMISSION 2 6

8 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: AGENDA REPORT November 17, 2017 Item No. 2 (Business/Action) November 9, 2017 TO: FROM: Special Districts Advisory Committee Executive Officer SUBJECT: Implementation Options for Senate Bill 107 Appointment of a Special District Representative to Serve on Countywide Oversight Board for Successor Redevelopment Agencies (Action) SUMMARY The Special Districts Advisory Committee will review options and policy preferences in the process to appoint a special district representative to serve on a single countywide oversight board tasked with completing the draw-down of remaining activities of successor redevelopment agencies in San Diego. This includes establishing criteria and standards with respect to eligibility, terms, and the role of an alternate. Feedback generated from the Committee will inform the presentation of draft policies to the Local Agency Formation Commission (LAFCO) at a future meeting. BACKGROUND Redevelopment Agencies Establishment and Function Redevelopment agencies (RDAs) in California were established in 1945 as part of the Community Redevelopment Act as a means for cities, towns, and counties to expedite the acquisition and or funding of public work projects to improve blighted areas. The underlying legislative intent in creating RDAs was to empower local officials to foster economic development through the use of local property tax proceeds. Markedly, once established, property tax revenue generated within a designated area became stationary with regard to the monies distributed among other local agencies such as schools and special districts with the incremental increases going forward getting redirected to RDAs. 7 1

9 Special District Advisory Committee Agenda Item No. 2 November 17, 2017 Meeting Dissolution Proceedings Enacted Under AB X26 Transition to Successor Agencies In June 2011 and following several earlier attempts the Legislature passed Assembly Bill (AB) X26 with the Governor s signature as a budget trailer bill to freeze the 400 plus RDAs in California and their authority to initiate any new projects. The legislation also initiated a gradual dissolution process in which oversight of RDAs were transferred to successor boards with the legislative task of drawing down preexisting projects. Increment property tax revenues generated within RDAs were also now redirected to a single countywide fund known as the Redevelopment Property Tax Trust Fund (RPTTF) and administered by county auditor-controller offices. Successor agencies are now tasked with filing annual requests to the State to draw monies out of the local RPTTF through the auditor-controller offices to meet preexisting RDA obligations. The remaining or residual monies within the RPTTF are set aside for distribution among the other local agencies with pre Proposition 13 property tax allocations. Redevelopment in San Diego County Successor Agencies and Affected Special Districts There are 17 successor agencies to RDAs in San Diego. Almost all and specifically 15 of the cities in San Diego County have successor agencies with the exception of Coronado, Del Mar, Encinitas. The County of San Diego also has two successor agencies. The total value of the residual incremental property tax revenue (e.g. non-committed funds) collectively within all 17 successor agencies as of the current calendar year tallies billion. Additionally, within the 17 successor agencies there are 26 special districts that are part of the property tax roll, and as such eligible to receive residential payments from the RPTTF. These eligible 26 special districts are as follows. RPTTF Eligible Special Districts in San Diego County Lakeside Fire Protection San Miguel Consolidated Fire Protection Pomerado Cemetery Palomar Healthcare San Diego Resource Conservation Lakeside Water Vista Irrigation Carlsbad Municipal Water Otay Water Padre Dam Municipal Water San Diego County Water * San Diego County Street Lighting * CSA No. 17 (San Dieguito) * Lower Sweetwater Fire Protection North County Cemetery Grossmont Healthcare Tri-City Healthcare San Marcos Fire Protection Santa Fe Irrigation Leucadia Wastewater Olivenhain Municipal Water Rincon del Diablo Municipal Water CSA No. 69 (Heartland Area) * San Diego Flood Control * CSA No. 115 (Pepper Drive) * Vallecitos Water District * Dependent special districts 8 2

10 Special District Advisory Committee Agenda Item No. 2 November 17, 2017 Meeting DISCUSSION This item is for the Committee to consider options and policy preferences therein with respect to the latest implementation directive enacted by the Legislature relating to the continued draw-down of RDAs and now their successor agencies; options and policy preferences that are directly relevant to special districts as described. The prompt involves Senate Bill (SB) 107, which was passed by the Legislature with the Governor s signature in September 2015 and mandates the consolidation of all successor agencies by July 1, 2018, with one (1) new countywide board in each of fifty-seven (57) counties, and five new (5) boards in Los Angeles County. Additionally, and pertinent to the Committee and its constituency, the legislation empowers each county s independent special districts selection committee (ISDSC) to appoint one of the seven voting members on the oversight board. Should ISDCS fail to appoint special district representatives the Governor shall make appointments starting on July 15, San Diego Countywide Oversight Board Role and Composition Oversight boards are empowered to complete the wind-down of all RDA projects managed by successor agencies within their respective jurisdiction (emphasis added). This includes establishing criteria and timing factors underlying the procedures to redistribute future property tax proceeds among eligible local agencies. To this end, the San Diego Countywide Oversight Board will be responsible for completing all transactions of the 17 successor agencies. All decisions made by the San Diego Oversight Board shall supersede those decisions made by the 17 successor agencies. The San Diego Oversight Board is also empowered to contract with any public agency for administrative support while having the ability to request additional financial information or legal advice from any of the affected successor agencies. The composition of the San Diego Oversight Board shall include seven members drawn from the following appointment process. One appointee by the County of San Diego Board of Supervisors One appointee by the San Diego City Selection Committee One appointee by the San Diego Independent Special District Selection Committee One appointee by the San Diego County Superintendent of Education One appointee by the Chancellor of the California Community Colleges One appointee of the public by the County of San Diego Board of Supervisors One appointee by the recognized employee labor organization representing the large number of successor agency employees in San Diego County 9 3

11 Special District Advisory Committee Agenda Item No. 2 November 17, 2017 Meeting Appointing a Special District Representative Role of San Diego LAFCO San Diego LAFCO is responsible under State law to administer the activities of the San Diego ISDSC and highlighted by regularly staffing elections to fill reserved district seats (terms) on the Commission. SB 107 expands these existing responsibilities to now include administering the election process leading to the appointment of a special district representative on the San Diego Oversight Board as described above. State law also provides San Diego LAFCO discretion in how it chooses to administer elections on behalf of ISDSC so long as it is consistent with its own adopted written policies and procedures. Implementing Options and Preferences Committee feedback is requested to help inform San Diego LAFCO s future decisionmaking in establishing policies and procedures to guide the appointment of a special district representative to the San Diego Oversight Board under SB 107. This includes and drawing from a joint-publication prepared by the California Special Districts Association and California Association of LAFCOs addressing existing ambiguity in the statute as it relates to the following topical and interrelated items. Eligibility Criteria: Independent and Dependent Districts State law does not make any explicit eligibility limitations with respect to whether a special district appointee to the Oversight Board hail from an independent or dependent special district. It would seem reasonable to limit participation to only independent special districts given dependents would be presumably represented by and through the appointments made by either the Board of Supervisors or City Selection Committee, but there may be other factors the Committee wish to consider in clarifying a preference. Eligibility Criteria: RTTPF and Non RTTPF Districts State law does not make explicit whether only RTTFP eligible special districts are eligible to participate in the selection process for the Oversight Board. It would seem reasonable to limit the participation to only those 26 special districts in San Diego County eligible for restored property tax proceedings as a result of the ultimate dissolution of RDAs, but this distinction merits clarification. Eligibility Criteria of Nominees State law does not specify whether a nominee to the Oversight Board must be a board member of an eligible special district or whether other representatives staff, public, etc. are permitted. Clarification is merited. 10 4

12 Special District Advisory Committee Agenda Item No. 2 November 17, 2017 Meeting Appointment Terms State law does not prescribe any term limitations on an appointee, and as such it is presumed the term will extend indefinitely until all business of the Oversight Board is complete. Should the Committee prefer otherwise than a clarification is merited. Role if any of Alternates State law does not explicitly contemplate the role of alternates to the Oversight Board. However, given the potential for an appointee to be unavailable at times or need to resign it would seem prudent for an alternative to be selected as part of the appointment process and avoid the potential of the Governor filling a vacated seat. Appointment Process State law does not outline an appointment process for seating a special district representative and potentially an alternate to the Oversight Board. As a baseline it would be reasonable to review the established procedures used in appointing special district members to San Diego LAFCO and amend/adjust as appropriate and relative to Committee preferences. ANALYSIS The enactment of SB 107 marks the latest and presumably final act by the Legislature in achieving the planned dissolution of RDA activities in California that began in earnest in This legislation and unlike earlier dissolution phases carves out an important implementing role for special districts and through the San Diego ISDSC with respect to the authority to appoint one of the seven voting members to the Oversight Board. However, the legislation provides only broad direction to San Diego LAFCO as the administrative arm of ISDSC in organizing the appointment process. Accordingly, and consistent with its purpose, Committee input is requested to prescribe preferences in addressing the eligibility and related appointment processing issues highlighted in the preceding section to help inform San Diego LAFCO in establishing clear and agreeable policies therein. RECOMMENDATION It is recommended the Committee review and provide input in addressing the policy issues identified in the preceding section associated with the appointment of a special district representative on the Oversight Board for future consideration by San Diego LAFCO. 11 5

13 Special District Advisory Committee Agenda Item No. 2 November 17, 2017 Meeting PROCEDURES This item has been agenized for action as part of the Committee s regular business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff; 2) Invite comments from interested audience members (voluntarily); and 3) Discuss item among Committee members and consider action on recommendation. Respectfully, Keene Simonds Executive Officer Attachments: 1) CSDA-CALAFCO White Paper on SB 107 2) Listing of Successor Agencies in San Diego County and Affected Special Districts 3) San Diego LAFCO Policies on Appointing Special District Members to the Commission 12 6

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26 ATTACHMENT TWO Countywide RDA Oversight Board San Diego Cities Largest AB8 Special Districts All AB8 Special Districts RDA Sucessor Boards Within RDA Sucessor Boundaries Within RDA Sucessor Boundaries Carlsbad Tri City Health Care District Lakeside Fire Protection District Chula Vista Otay Water District Lower Sweetwater Fire Protection District El Cajon Grossmont Health Care District San Miguel Consolidated Fire Protection District Escondido Palomar Pomerado Health Care District North County Cemetary District Imperial Beach San Diego Water Authority Pomerado Cemetery District La Mesa Grossmount Health Care District Grossmount Health Care District ** Lemon Grove Grossmount Health Care District Palomar Pomerado Health Care District ** National City San Diego Water Authority Tri City Health Care District ** Oceanside Tri City Health Care District San Diego Resource Conservation District Poway Palomar Pomerado Health Care District San Marcos Fire Protection District ** San Diego San Diego Water Authority Lakeside Water District San Marcos San Marcos Fire Protection District Santa Fe Irrigation District ** Santee Padre Dam Municipal Water District Leucadia Wastewater District Solana Beach Santa Fe Irrigation District Vallecitos Water District Vista Palomar Pomerado Health Care District Carlsbad Municipal Water District Olvenhain Municipal Water District * Determined by Auditor Controller and Otay Water District ** Automatic Seat on Sucessor Board Rincon del Diablo Municipal Water District Padre Dam Municpal Water District ** San Diego County Water Authority ** County of San Diego Street Lighting District County Service Area No. 17 (San Dieguito) County Service Area No. 69 (Heartland) County Service Area No. 115 (Pepper Drive) San Diego County Flood Control District ** Currently Seated on One or More RDA Sucessor Agencies' Board of Directors Independent Districts Dependent Districts 25

27 Blank for Photocopying 26

28 27 ATTACHMENT THREE

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30 29

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32 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: AGENDA REPORT November 17, 2017 Item No. 3 (Business/Action) November 9, 2017 TO: FROM: Special Districts Advisory Committee Executive Officer SUBJECT: Update on Developing a New Five-Year Study Schedule Calendaring Municipal Service Reviews and Sphere of Influence Updates (Action) SUMMARY The Special Districts Advisory Committee will receive an update on San Diego Local Agency Formation Commission s (LAFCO) development of a new study schedule to fulfill the Commission s statutory requirement to prepare comprehensive planning documents municipal service reviews and sphere of influence updates every five years. The underlying purpose of the study schedule is to telegraph and sequence these planning documents in fulfilling LAFCO s statutory obligation to independently address current and future community service needs through the orderly management of local governance (i.e., boundaries, service areas, and service functions). Feedback generated from the Committee will inform the future presentation of a study schedule for Commission approval at a later meeting. BACKGROUND Study Directive Municipal Service Reviews and Sphere of Influence Updates State law directs LAFCOs to review and update as appropriate spheres of influence for all cities and special districts every five years and instep with delineating the area the Commission believes represents the agencies appropriate current and future boundaries and service areas. State law also specifies LAFCOs must inform their sphere updates by preparing comprehensive evaluations titled municipal service reviews to determine the availability and adequacy of local governmental services relative to current and future community needs. The legislative purpose of the municipal service review is to ensure LAFCOs are proactive in independently overseeing local government agencies and their municipal services ahead of subsequent sphere updates with increasingly emphasis in promoting accountability and efficiencies. 31 1

33 Special District Advisory Committee Agenda Item No. 3 November 17, 2017 Meeting Additionally, municipal service reviews now serve as source documents under State law with respect to LAFCOs authority to initiate certain regulatory actions, such as forming, consolidating, merging, or dissolving one or more local agencies. Previous Study Cycles This calendar year marks the end of the current five-year study cycle with respect to San Diego LAFCO preparing municipal service reviews and sphere updates under State law. Overall and since the mandate was enacted beginning in 2001 LAFCO has prepared nearly 100 studies during the course of the three cycles ( ; ; and ) and covering close to 90% of all local agencies subject to LAFCO oversight. Nearly all of the studies have been prepared in-house and largely divided between region-specific and service specific. (The remaining prepared studies have been agency-specific.) A detailing of the agencies reviewed by LAFCO to date is provided as Attachment One. DISCUSSION This item is for the Committee to provide feedback on San Diego LAFCO s development of a new five-year study schedule covering the period. This includes the Committee reflecting on the approach, structure, and ultimately outcomes associated with earlier cycles and providing input on how these studies can be organized and/or sequenced to enhance value going forward. Feedback provided will be incorporated into the preparation of a draft study schedule for future consideration by the Commission. ANALYSIS San Diego LAFCO is obligated under State law to prepare a new round of municipal service reviews and sphere of influence updates beginning in LAFCO retains substantive discretion, however, in how it chooses to calendar these studies, and this includes deciding the scope (i.e., region, service, or agency-specific) and breadth (i.e., cursory or detailed) of the underlying analysis of each study undertaken. With this in mind, and ahead of the benefit of Committee or Commission input, it is staff s working expectation the next study schedule will continue to emphasize regional and service-specific studies for the benefit of readily capturing meaningful comparisons. It is also expected the studies will benefit from earlier starting-lines by building on earlier data collection and allow for more quantifying with respect to key service and financial information. Further, and new from previous cycles, staff anticipates the next round of studies will incorporate certain joint-power authorities into the analysis consistent with the recent enactment of Senate Bill RECOMMENDATION It is recommended the Committee review and provide input as desired with respect to San Diego LAFCO preparing a new study schedule to calendar municipal service reviews and sphere updates for the cycle. 32 2

34 Special District Advisory Committee Agenda Item No. 3 November 17, 2017 Meeting PROCEDURES This item has been agenized for action as part of the Committee s regular business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff; 2) Invite comments from interested audience members (voluntarily); and 3) Discuss item among Committee members and consider action on recommendation. Respectfully, Keene Simonds Executive Officer Attachment: 1. San Diego LAFCO s MSR-SOI Agency Tracker 33 3

35 Blank for Photocopying 34

36 ATTACHMENT ONE San Diego Local Agency Formation Commission Municipal Service Review and Sphere of Influence Update Tracker Local Agency Geographic Region 2001 to 2007 Cycle 2008 to 2012 Cycle Cycle Cities 1 Carlsbad North Coastal 2 Chula Vista South 3 Coronado South 4 Del Mar North Coastal 5 El Cajon East 6 Encinitas North Coastal 7 Escondido North Inland 8 Imperial Beach South 9 Lemon Grove East 10 La Mesa East 11 National City South 12 Oceanside North Coastal 13 Poway North Inland 14 San Diego Central 15 San Marcos North Inland 16 Santee East 17 Solana Beach North Coastal 18 Vista North Inland Special Districts 1 Alpine County Sanitation District **** 2 Alpine Fire Protection District East 3 Bonita-Sunnyside Fire Protection District South 4 Borrego Springs Fire Protection District North Inland 5 Borrego Water District North Inland 6 Borrego Springs Park Community Services District East 35

37 7 Buena County Sanitation District North Coastal 8 Campo Water and Sewer Maintenance District South 9 Canebrake County Water District North Inland 10 Carlsbad Municipal Water District North Coastal 11 Coachella Valley Water District North Inland 12 CSA 17 - Ambulance North Coastal 13 CSA 26 - Recreation and Park East 14 CSA 69 - Ambulance East 15 CSA 81 - Recreation and Park North Inland 16 CSA 83 - Recreation and Park Multiple 17 CSA 86 - Streets and Roads **** 18 CSA Fire Protection **** 19 CSA Fire Protection **** 20 CSA Fire Protection **** 21 CSA Fire Protection **** 22 CSA Fire Protection **** 23 CSA Fire Protection **** 24 CSA Fire Protection East 25 CSA Waste Disposal **** 26 CSA Regional Planning South 27 CSA Recreation and Park East 28 CSA Streets and Roads **** 29 CSA Police Protection and Personal Safety Multiple 30 CSA Flood Control East 31 Cuyamaca Water District North Inland 32 Deer Springs Fire Protection District North Inland 33 Descanso Community Services District East 34 East Otay Mesa Sewer Maintenance District South 35 East County Fire Protection District **** 36 Fairbanks Ranch Community Services District North Coastal 37 Fallbrook Healthcare District North Inland 38 Fallbrook Public Utility District North Inland 39 Grossmont Healthcare District East 40 Helix Water District East 36

38 41 Jacumba Community Services District East 42 Julian Community Services District North Inland 43 Julian County Sanitation District **** 44 Julian-Cuyamaca Fire Protection District North Inland 45 Lake Cuyamaca Recreation and Park District North Inland 46 Lakeside Fire Protection District East 47 Lakeside County Sanitation District **** 48 Lakeside Water District East 49 Lemon Grove County Sanitation District East 50 Leucadia Wastewater District North Coastal 51 Lower Sweetwater Fire Protection District South 52 Majestic Pines Community Services District North Inland 53 Metropolitan Water District of Southern California Multiple 54 Mission Resources Conservation District North Inland 55 Mootamai Municipal Water District North Inland 56 Morro Hills Community Services District North Inland 57 North County Cemetery District North Inland 58 North County Fire Protection District North Inland 59 Oceanside Small Craft Harbor District North Coastal 60 Olivenhain Municipal Water District North Coastal 61 Otay Water District South 62 Padre Dam Municipal Water District East 63 Palomar Pomerado Healthcare District North Inland 64 Pauma Municipal Water District North Inland 65 Pauma Valley Community Services District North Inland 66 Pine Valley County Sanitation District **** 67 Pine Valley Fire Protection District East 68 Pomerado Cemetery District North Inland 69 Questhaven Municipal Water District North Inland 70 Rainbow Municipal Water District North Inland 71 Ramona Cemetery District North Inland 72 Ramona Municipal Water District North Inland 73 Rancho Santa Fe Community Services District North Coastal 74 Rancho Santa Fe Fire Protection District North Coastal 37

39 75 San Diego County Resource Conservation District All Regions 76 Rincon Del Diablo Municipal Water District North Inland 77 Rincon Ranch Community Services District North Inland 78 Rural Fire Protection District **** 79 Riverview Water District ***** 80 San Diego County Flood Control District Multiple 81 San Diego County Sanitation District Multiple 82 San Diego County Water Authority Multiple 83 San Diego Unified Port District South 84 San Dieguito Water District North Coastal 85 San Luis Rey Municipal Water District North Inland 86 San Marcos Fire Protection District North Inland 87 San Miguel Consolidated Fire Protection District East 88 Santa Fe Irrigation District North Coastal 89 South Bay Irrigation District South 90 Spring Valley Sanitation District **** 91 Sweetwater Authority Multiple 92 Tia Juana Valley County Water District **** 93 Tri-City Hospital District North Coastal 94 Upper San Luis Rey Resource Conservation District North Inland 95 Vallecitos Water District North Inland 96 Valley Center Cemetery District North Inland 97 Valley Center Community Services District North Inland 98 Valley Center Fire Protection District North Inland 99 Valley Center Municipal Water District North Inland 100 Vista Fire Protection District North Coastal 101 Vista Irrigation District Multiple 102 Whispering Palms Community Services District North Coastal 103 Winter Gardens Sewer Maintenance District East 104 Wynola Water District North Inland 105 Yuima Municipal Water District North Inland Agencies Reviewed % of Agencies Reviewed 92% 29% 62% 38

40 MSR Study Schedule Geographic Regions ATTACHMENT TWO Orange County Riverside County Camp Pendleton Fallbrook 15 Ä76 Ä79 Pacific Ocean 5 North Coastal OCEANSIDE Ä76 CARLSBAD 5 ENCINITAS VISTA Ä76 15 SAN MARCOS 15 LAKE HODGES LAKE WOHLFORD ESCONDIDO Valley Center Ä78 LAKE HENSHAW North Inland Ramona Ä78 Ä76 SOUTHERLAND RESERVOIR Ä79 Julian Ä78 Borrego Springs Ä78 L e g e n d SOLANA BEACH DEL MAR Ä56 15 POWAY Ä67 CUYAMACA RESERVOIR MSR Geographic Regions North Coastal North Inland Central East South Miles SAN DIEGOLAFCO THIS MAP/DATA IS PROVIDED WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Copyright SanGIS All Rights Reserved. Full text of this legal notice can be found at: Created by Dieu Ngu -- Date: 11/9/2017 Document Path: G:\GIS\Inquiries\RegionalBreakdownofDistricts.mxd o 5 15 Central SAN DIEGO BAY CORONADO CHULA VISTA South OTAY RESERVOIR EL CAPITAN RESERVOIR Ä52 SANTEE Alpine 8 SAN DIEGO EL CAJON MISSION BAY Ä LA MESA 8 Ä54 Ä94 LEMON GROVE BARRETT LAKE NATIONAL CITY 5 IMPERIAL BEACH Ä67 Lakeside 39 Ä94 Ä79 East MEXICO Pine Valley MORENA LAKE Campo Ä94 8

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42 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Website: AGENDA REPORT November 17, 2017 Item No. 4 (Business/Action) November 9, 2017 TO: FROM: Special Districts Advisory Committee Chief Analyst SUBJECT: Final 2017 Legislative Report SUMMARY The Special District Advisory Committee will receive a report on the conclusion of the first year of the Legislature s session as it relates to bills and other related matters affecting LAFCOs. This includes discussing the recommendations of the Little Hoover Commission following its two-year long review of special districts and LAFCOs oversight role therein. Feedback generated from the Committee will be conveyed to the San Diego Local Agency Formation Commission (LAFCO) in step with informing future actions. DISCUSSION The State Legislature reconvened from its summer recess on August 21, September 1, 2017 was the last day for fiscal committees to meet and report bills to the Floor, with September 8 being the last day to amend on the Floor. September 15 was the last day any bill may be passed, and the Legislature went into its interim recess on adjournment. October 15, 2017 was the last day for the Governor to sign or veto bills passed by the Legislature on or before September 15. The new statutes will take effect on January 1, 2018, and the Legislature will reconvene from its interim recess on January 3, The following summary addresses bills San Diego LAFCO had been actively tracking during the legislation session. AB 464 (Gallagher) Local Government Reorganization AB 464 was sponsored by CALAFCO to address a situation in current law wherein Government Code Section does not address certain conditions of services currently provided when a plan for services is submitted for an annexation. This bill specifies that the plan being submitted would also include information regarding services currently provided to the affected territory even if by contract. This 41 1

43 Special District Advisory Committee Agenda Item No. 4 November 17, 2017 Meeting situation arose from a court decision on a lawsuit (City of Patterson v. Turlock Irrigation District) in Stanislaus County. Approved position: Support; Letter sent. Status: Passed Legislature and Signed by Governor July 10, AB 979 (Lackey) Special District Representation on LAFCO This bill was sponsored by CSDA and cosponsored by CALAFCO to address the procedure for special districts to propose to hold an election on having representation on a commission. Additionally, in July 2018, in counties where multiple Redevelopment Agency (RDA) Oversight Boards have existed, LAFCO is to administer an election process for selecting a representative to the county-wide RDA Oversight Board, in accordance with SB 107 enacted in The proposed method is to have the Special Districts Selection Committee (officers of each independent special district) vote to select the representative. San Diego LAFCO has already used this method to select representatives to the commission. Amendments were proposed and made on May 15, 2017, to address concerns of CALAFCO. Approved position: Support; Letter sent. Status: Passed Legislature and Signed by Governor September 1, AB 892 (Waldron) Municipal Water Districts: Water Service: Indian Tribes Existing law requires a Municipal Water District to provide service of water at substantially the same terms applicable to the customers of the district to the Indian tribe s lands that are not within a district, upon the request of certain Indian tribes and the satisfaction of certain conditions. This bill would authorize, rather than require, a Municipal Water District to provide water service to all Indian tribes whose lands are owned by the tribe. This is now a two-year bill. AB 1361 (Garcia) Municipal Water Districts: Water Service: Indian Tribes This bill authorizes a Municipal Water District to provide water service to an Indian Tribe s lands that are not within the district if requested by the Indian Tribe and all conditions of service are agreed upon. This bill was sponsored by the Rincon Indian Tribe and was passed as amended at the Senate Governance and Finance Committee on July 19, The bill allows a Municipal Water District, until January 1, 2023, to apply to LAFCO to extend water service at substantially the same terms applicable to customers of the district to Indian lands that are not within a district as if the lands had been fully annexed into the district and into any other public agencies required for the provision of water service. The bill requires LAFCO to approve the application and allows LAFCO to impose conditions on the Municipal Water District with regard to the extension of service in accordance with Section of the Government Code, as long as those terms and conditions do not impair the provision of water service to Indian lands and are similar to those imposed on all agency service recipients without discrimination. The Municipal 42 2

44 Special District Advisory Committee Agenda Item No. 4 November 17, 2017 Meeting Water District is required to provide the water extension agreement to LAFCO. CALAFCO adopted an Oppose position on the bill based upon the exclusion of Commission review and authority. San Diego LAFCO staff shared concerns of similar factors in a letter dated July 13, 2017 but no position was taken on the bill. Adopted position: Watch. Status: Passed and Signed by Governor October 3, AB 1725 (ALGC) Omnibus Bill This is the annual Assembly Local Government Committee (ALGC) bill that usually addresses any issues involving the Cortese-Knox-Hertzberg Act and LAFCO. The annual bill addresses non-controversial or clarification issues, such as redefining the term contiguous, which the act defines as territory adjacent to territory within the local agency. This bill instead defines contiguous as territory that abuts or shares a common boundary with territory within a local agency. Recommended position: Support as Amended July 3, Passed Legislature and Signed by Governor September 28, SB 448 (Wieckowski) Local Government Organization: Districts: Audits This bill defines inactive special districts and establishes a process for the State Controller to annually publish a list of inactive districts for information to LAFCO. If determined to be inactive, LAFCO would be required to study the district and hold a public hearing to determine if the district should be dissolved. If action is taken by LAFCO it would not be subject to protest. Another section of the bill requires all audits of special districts be filed with their applicable LAFCO and available for the public on the LAFCO website. Recommended position: Consider Support position after amendments are published. Passed Legislature and Signed by Governor September 28, AB 1728 (ALGC) Healthcare Districts: Board of Directors This bill requires the board of directors of a healthcare district to adopt an annual budget in a public meeting, on or before September 1 of each year, that conforms to generally accepted accounting and budgeting procedures for special districts, establish and maintain an Internet Web site that lists contact information for the district, and adopt annual policies for providing assistance or grant funding, if the district provides assistance or grants.. Recommended position: Support as Amended July 3, Passed and Signed by Governor September 28, AB 1479 (Bonta) Public Records: Custodian of Public Records: Civil Penalties This bill was passed by the Legislature but was vetoed by the Governor on October 13, This bill would have, until January 1, 2023, required public agencies to designate a person or persons, or office or offices to act as the agency s custodian 43 3

45 Special District Advisory Committee Agenda Item No. 4 November 17, 2017 Meeting of records who would be responsible for responding to any request made pursuant to the California Public Records Act and any inquiry from the public about a decision by the agency to deny a request for records. The bill would have made a failure to respond for records or an improperly assessed fee a civil penalty and allowed the courts to issue fines ranging from $ $5000. CALAFCO adopted an Oppose position on the bill. Passed Legislature, Vetoed by Governor October 13, There are a number of other bills that staff will continue to monitor as the Legislature reconvenes in San Diego LAFCO staff will provide the Committee with a verbal update at the meeting on anticipated future actions on these bills and a summary of the recommendations made by the Little Hoover Commission in its August 2017 report Special Districts: Improving Oversight and Transparency. RECOMMENDATION It is recommended the Committee review and provide input as desired with respect to current and pending legislative matters of interest to San Diego LAFCO. PROCEDURES This item has been agenized for action as part of the Committee s regular business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff; 2) Invite comments from interested audience members (voluntarily); and 3) Discuss item among Committee members and consider action on recommendation. Respectfully, ROBERT B. BARRY, AICP Chief Analyst Attachments 1. CALAFCO Tracking Report 11/9/17 2. Little Hoover Commission, Executive Summary, Special Districts: Improving Oversight and Transparency (August 2017) 44 4

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