1 LAFCO 101 New Commissioners and Staff Workshop CALAFCO CONFERENCE FOR 2009 Tenaya Lodge at Yosemite October 28, 2009

2 Ventura LAFCO – February 11, 1981 (Partial Transcript) Mr. Chairman, my name is Duane Lyders. I’m the City Attorney of the City of Oxnard. We’ve come a long way from the 1960s – when the law of the jungle prevailed – before LAFCO came into existence, when cities, based upon the political power that they could muster, would gobble up large acreages and hold them for future expansion. I submit that the principle which has supplanted the law of the jungle – the principle embodied in the statutes creating LAFCO – is what we are dealing with today.

3 History and Overview of LAFCO

4 LAFCO came about due to Post World War II population and housing boom in California Street car suburbs; scramble to finance and extend services City annexation "wars," proliferation of limited purpose special districts Governor Pat Brown’s Commission on Urban Problems focused on need to encourage orderly boundaries

6 Legislative Compromise One LAFCO per every county No Statewide Commission or agency Local control; no State appointees LAFCO are independent; no appeal to another administrative agency

7 LAFCO’S purposes are to Encourage orderly boundaries and discourage urban sprawl Conserve agriculture and open space Promote efficient public services Consider regional housing needs, adequate water and other essential issues

8 Compressed Legislative History 1963 Knox-Nesbit Act – LAFCOs created to regulate boundaries 1971 Law requires Spheres of Influence – LAFCOs must plan too 1985 Cortese-Knox Act – Recodify laws

AB 2838 Reforms Law) Broaden LAFCO funding formula Make LAFCO “conducting authority” for boundary changes Require periodic Sphere of Influence updates Require Municipal Service Reviews Require city/county to communicate re sphere of influence changes Require cities to prezone land New factors – water supply, regional housing

11 LAFCO’S Statutory Purpose and Functions

12 State Legislature directs LAFCO to Encourage orderly boundaries and discourage urban sprawl Conserve agricultural & open space lands Promote efficient public services Consider regional housing needs, adequate water and other essential issues

13 Forces driving boundary changes Growth or shifts in population Public desire for services or land uses Public desire for greater local control Desire for improved services or revenues Desire to establish, preserve or protect identity The Hidden Hand on the Tiller -- State tax policies for incentives and disincentives

14 What the Courts have said State laws fully occupy the field LAFCO is engaged in the pursuit of an overriding State purpose LAFCO is quasi-legislative; limited legal challenge to LAFCO decisions LAFCO is independent, not part of County LAFCO is the Legislature’s watch dog for governmental efficiency

15 LAFCO is a Unique Mix All Local Folks – 2 County supervisors, 2 city officials, 1 public member Many also have 2 special district members One alternate member in each category Members are to represent the interests of the entire public

16 LAFCO is subject to the Political Reform Act Annual filing of assets and campaign contributions is required, plus Automatic disqualification from decisions related to entitlements for use

17 As a PLANNING agency LAFCO Develops and periodically updates Spheres of Influence for cities and districts Prepares Municipal Service Reviews to help coordinate provision of services Works cooperatively with public and private agencies and interests

18 As a REGULATORY agency LAFCO Manages the modification of existing agencies and creation of new ones Can approve changes only if consistent with spheres of influence Controls extension of public services without annexations Is prohibited from directly regulating how land is used... but

19 LAFCOs are Independent Commissioners make final decisions State laws fully occupy the field LAFCO decisions cannot be appealed to other administrative bodies Executive Officer is solely accountable to the Commission and the law

20 Environmental review of LAFCO decisions Many LAFCO approvals are "projects" under CEQA Pre-zoning makes a city the lead agency Categorical exemptions are tailored to LAFCO actions - Classes 19 and 20

21 LAFCO decisions are made in full public view Wide public notice of LAFCO hearings is required, including posting on Internet LAFCO coordinates with county, cities, special districts and school districts

22 LAFCO has no jurisdiction over Redevelopment agencies Mello-Roos districts School districts Assessment Districts and Improvement Districts County boundary lines Municipal Advisory Councils Area Planning Commissions Transit Districts Joint Powers Authorities

23 Public Participation LAFCO is subject to the Ralph M. Brown Act Public notice of LAFCO meetings, including posting on the Internet LAFCO is subject to the Public Records Act

24 LAFCO Budget and Staffing

25 LAFCO Funding State mandate – LAFCO adopts a budget for each fiscal year LAFCO is funded by the County, cities and special districts in equal thirds Local funding formulas are allowed Processing fees help offset expenses

26 LAFCO Staffing LAFCO appoints an Executive Officer to conduct the day-to-day business and make recommendations on proposals LAFCO appoints a Legal Counsel LAFCO provides for its own quarters, equipment, supplies and personnel. LAFCO can contract for staff services

27 What is CALAFCO? Association created in 1971 by LAFCOs Focus on supporting LAFCOs through training & education, conferences & workshops and legislative representation All LAFCOs eligible, + Associate Members Non-profit 501(c)(3)

28 Basic Procedures for a Change of Organization

29 Change of Organization Annexation or Detachment Formation a new district or Incorporation of new city Disincorporation of city or Dissolution of district Consolidation of cities or districts Merger of district into a city Create subsidiary district, i.e., city governs a district Exercise of new or different functions or classes of services by special district, i.e. latent power Reorganization combines two or more changes of organization into one proceeding

30 Step 1 - Application to LAFCO Resolution of application of local agency, or Petition of landowners or voters Application, Plan for Services, other data Payment of processing fee Property tax agreement if required per Revenue & Taxation Code 99 or 99.01

31 Step 2 - LAFCO Review Certify petition, accept resolution Review maps and legal descriptions Issue Certificate of Filing; clock starts running Public notice of LAFCO hearing Executive Officer's report & recommendation

32 Step 3 - LAFCO Decision LAFCO approves or denies Terms and Conditions are permitted LAFCO determines the effective date Issues notice of determination or exemption Effect of LAFCO denial Reconsideration of LAFCO decision Proceedings lapse a year from LAFCO decision if not completed

33 Step 4 - Protest Hearing, if needed Hearing notice -- publish, post, mail "Inhabited" vs. "uninhabited" proposals Written protests -- from who and how Required contents of protest

34 Step 5 – Outcome of Hearing Number of protests determines outcome Terminate if majority protest Order change subject to election (only if inhabited) Order the change without an election LAFCO resolution confirms results of hearing

35 Step 6 – Election, if Required Only County or a city conducts elections Where is the election held? Regular election v. mailed ballots Vote results -- Majority needed? Two thirds? Election expenses -- who pays?

36 Step 7 – Administrative Filing LAFCO staff records Certification of Completion with resolution, map and legal LAFCO staff files with State Board of Equalization and County Assessor LAFCO staff notifies affected agencies and interested parties

37 ROLE OF THE LAFCO COMMISSIONER Commissioner Cathy Schlottmann Santa Barbara LAFCO CALAFCO Board of Directors

38 That’s all folks!

39 LAFCO 101 New Commissioners and Staff Workshop CALAFCO CONFERENCE FOR 2009 Tenaya Lodge at Yosemite October 28, 2009