Amended in Senate June 1, 2015

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 56017.2 and 56133 of, and to add Section 56134 to, 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 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.

This bill begin delete would end delete begin insert would, with certain exceptions, end insert permit a public agency to exercise new or extended services outside the public agency’s current service area pursuant to a fire protection begin delete reorganization end delete 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 that is not a state agency adopt a resolution of application and submit the resolution along with a plan for services, as provided, and that a proposal by a state agency be initiated by the director of the agency with the approval of the begin delete Governor. end delete begin insert Director of Finance. end insert 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 services pursuant to a fire protection begin delete reorganization end delete contract begin delete with end delete begin insert with, or provide written notice of a proposed fire protection contract to, end insert each affected public agency and recognized employee organization representing firefighters in the affected begin delete area end delete begin insert area, end insert and to conduct a public hearing on the resolution.

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, 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:

SECTION 1.  

Section 56017.2 of the Government Code is
amended to read:

56017.2.  

“Application” means any of the following:

(a) A resolution of application or petition initiating a change of
organization or reorganization with supporting documentation as
required by the commission or executive officer.

(b) A request for a sphere of influence amendment or update
pursuant to Section 56425.

(c) A request by a city or district for commission approval of
an extension of services outside the agency’s jurisdictional
boundaries pursuant to Section 56133 or 56134.

SEC. 2.  

Section 56133 of the Government Code is amended
to read:

56133.  

(a) A city or district may provide new or extended
services by contract or agreement outside its jurisdictional
boundaries only if it first requests and receives written approval
from the commission in the affected county.

(b) The commission may authorize a city or district to provide
new or extended services outside its jurisdictional boundaries but
within its sphere of influence in anticipation of a later change of
organization.

(c) The commission may authorize a city or district to provide
new or extended services outside its jurisdictional boundaries and
outside its sphere of influence to respond to an existing or
impending threat to the public health or safety of the residents of
the affected territory if both of the following requirements are met:

(1) The entity applying for the contract approval has provided
the commission with documentation of a threat to the health and
safety of the public or the affected residents.

(2) The commission has notified any alternate service provider,
including any water corporation as defined in Section 241 of the
Public Utilities Code, or sewer system corporation as defined in
Section 230.6 of the Public Utilities Code, that has filed a map and
a statement of its service capabilities with the commission.

(d) The executive officer, within 30 days of receipt of a request
for approval by a city or district of a contract to extend services
outside its jurisdictional boundary, shall determine whether the
request is complete and acceptable for filing or whether the request
is incomplete. If a request is determined not to be complete, the
executive officer shall immediately transmit that determination to
the requester, specifying those parts of the request that are
incomplete and the manner in which they can be made complete.
When the request is deemed complete, the executive officer shall
place the request on the agenda of the next commission meeting
for which adequate notice can be given but not more than 90 days
from the date that the request is deemed complete, unless the
commission has delegated approval of those requests to the
executive officer. The commission or executive officer shall
approve, disapprove, or approve with conditions the contract for
extended services. If the contract is disapproved or approved with
conditions, the applicant may request reconsideration, citing the
reasons for reconsideration.

(e) This section does not apply to any of the following:

(1) 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 existing service provider.

(2) Contracts for the transfer of nonpotable or nontreated water.

(3) Contracts or agreements solely involving the provision of
surplus water to agricultural lands and facilities, including, but not
limited to, incidental residential structures, for projects that serve
conservation purposes or that directly support agricultural
industries. However, prior to extending surplus water service to
any project that will support or induce development, the city or
district shall first request and receive written approval from the
commission in the affected county.

(4) An extended service that a city or district was providing on
or before January 1, 2001.

(5) A local publicly owned electric utility, as defined by Section
9604 of the Public Utilities Code, providing electric services that
do not involve the acquisition, construction, or installation of
electric distribution facilities by the local publicly owned electric
utility, outside of the utility’s jurisdictional boundaries.

(6) A fire protection begin delete reorganization end delete contract, as defined in
subdivision (a) of Section 56134.

SEC. 3.  

Section 56134 is added to the Government Code, to
read:

56134.  

(a) (1) For the purposes of this section, “fire protection
begin delete reorganization end delete contract” means a contract or agreement for the
exercise of new or extended fire protection services outside a public
agency’s current service area, as authorized by Chapter 4
(commencing with Section 55600) of Part 2 of Division 2 of Title
5 of this code or by Article 4 (commencing with Section 4141) of
Chapter 1 of Part 2 of Division 4 of the Public Resources Code,
that does either of the following:

(A) Transfers responsibility for providing services in more than
25 percent of the service area of any public agency affected by the
contract or agreement.

(B) Changes the employment status of more than 25 percent of
the employees of any public agency affected by the contract or
agreement.

(2) A contract or agreement for the exercise of new or extended
fire protection services outside a public agency’s current service
area, as authorized by Chapter 4 (commencing with Section 55600)
of Part 2 of Division 2 of Title 5 of this code or Article 4
(commencing with Section 4141) of Chapter 1 of Part 2 of Division
4 of the Public Resources Code, that, in combination with other
contracts or agreements, would produce the results described in
subparagraph (A) or (B) of paragraph (1), shall be deemed a fire
protection begin delete reorganization end delete contract for the purposes of this section.

(b) Notwithstanding Section 56133, a public agency may provide
new or extended services pursuant to a fire protection
begin delete reorganization end delete contract only if it first requests and receives written
approval from the commission in the affected county pursuant to
the requirements of this section.

(c) A request by a public agency for commission approval of
begin insert new or extended end insert services provided begin delete under end delete begin insert pursuant to end insert a fire
protection begin delete reorganization end delete contract shall be made by the adoption
of a resolution of application as follows:

(1) In the case of a public agency that is not a state agency, the
application shall be initiated by the adoption of a resolution of
application by the legislative body of the public agency proposing
to provide new or extended services outside the public agency’s
current service area.

(2) In the case of a public agency that is a state agency, the
application shall be initiated by the director of the state agency
proposing to provide new or extended services outside the agency’s
current service area and be approved by the begin delete Governor. end delete begin insert Director
of Finance. end insert

(d) The legislative body of a public agency or the director of a
state agency shall not submit a resolution of application pursuant
to this section unless both of the following occur:

(1) The public agency begin delete obtains end delete begin insert does either of the following: end insert

begin insert (A) end insert begin insert   end insert begin insert Obtains end insert and submits 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 begin delete change of organization. end delete begin insert fire protection contract. end insert

begin insert

(B) Provides, at least 30 days prior to the hearing held pursuant
to paragraph (2), written notice to each affected public agency
and recognized employee organization that represents firefighters
of the existing and proposed service providers of the proposed fire
protection contract and submits a copy of each written notice with
the resolution of application. The notice shall, at minimum, include
a full copy of the proposed contract.

end insert

(2) The public agency conducts an open and public hearing on
the resolution, conducted pursuant to the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) begin insert of end insert Part 1 begin insert of end insert Division
2 begin insert of end insert Title 5) or the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) begin insert of end insert Chapter 1 begin insert of end insert Part 1 begin insert of end insert
Division 3 begin insert of end insert Title 2), as applicable.

(e) A resolution of application submitted pursuant to this section
begin delete must end delete begin insert shall end insert be submitted with a begin delete fire services reorganization contract
plan that conforms to the requirements of Section 56653. The end delete plan
begin insert which end insert shall include all of the following information:

(1) The total estimated cost to provide the new or extended fire
protection services in the affected territory.

(2) The estimated cost of the new or extended fire protection
services to customers in the affected territory.

(3) An identification of existing service providers, if any, of the
new or extended services proposed to be provided and the potential
fiscal impact to the customers of those existing providers.

(4) A plan for financing the exercise of the new or extended fire
protection services in the affected territory.

(5) Alternatives for the exercise of the new or extended fire
protection services in the affected territory.

begin insert

(6) An enumeration and description of the new or extended fire
protection services proposed to be extended to the affected
territory.

end insert begin insert

(7) The level and range of new or extended fire protection
services.

end insert begin insert

(8) An indication of when the new or extended fire protection
services can feasibly be extended to the affected territory.

end insert begin insert

(9) An indication of any improvements or upgrades to structures,
roads, sewer or water facilities, or other conditions the public
agency would impose or require within the affected territory if the
fire protection contract is completed.

end insert

(f) The applicant shall cause to be prepared by contract an
independent comprehensive fiscal analysis to be submitted with
the application pursuant to this section. The analysis shall review
and begin delete document: end delete begin insert document all of the following: end insert

(1) The costs to the public agency that has proposed to provide
new or extended fire protection services during the three fiscal
years following a public agency entering into a fire protection
begin delete reorganization end delete contract, in accordance with the following
requirements:

(A) The analysis begin delete must end delete begin insert shall end insert include all direct and indirect cost
impacts to the existing service provider in the affected territory.

(B) The analysis begin delete must end delete begin insert shall end insert review how the costs of the existing
service provider compare to the costs of services provided in
service areas with similar populations and of similar geographic
size that provide a similar level and range of services and begin delete shall end delete
make a reasonable determination of the costs expected to be borne
by the public agency providing new or extended fire protection
services.

(2) The revenues of the public agency that has proposed begin delete a end delete new
or extended fire protection services 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.

(3) The effects on the costs and revenues of any affected public
agency, including the public agency proposing to provide the new
or extended fire protection services, during the three fiscal years
that the new or extended fire protection services will be provided.

(4) Any other information and analysis needed to support the
findings required by subdivision (j).

(g) The clerk of the legislative body of a public agency or the
director of a state agency adopting a resolution of application
pursuant to this section shall file a certified copy of the resolution
with the executive officer.

(h) (1) The executive officer, within 30 days of receipt of a
public agency’s request for approval of a fire protection
begin delete reorganization end delete contract, shall determine whether the request is
complete and acceptable for filing or whether the request is
incomplete. If a request does not comply with the requirements of
subdivision (d), the executive officer shall determine that the
request is incomplete. If a request is determined begin delete not to be complete, end delete
begin insert incomplete, end insert the executive officer shall immediately transmit that
determination to the requester, specifying those parts of the request
that are incomplete and the manner in which they can be made
complete. When the request is deemed complete, the executive
officer shall place the request on the agenda of the next commission
meeting for which adequate notice can be given but not more than
90 days from the date that the request is deemed complete.

(2) The commission shall approve, disapprove, or approve with
conditions the contract for begin insert new or end insert extended services following the
hearing at the commission meeting, as provided in paragraph (1).
If the contract is disapproved or approved with conditions, the
applicant may request reconsideration, citing the reasons for
reconsideration.

(i) (1) The commission shall not approve an application for
approval of a fire protection begin delete reorganization end delete contract unless the
commission determines that the public agency will have sufficient
revenues to carry out the exercise of the new or extended fire
protection services outside its current area, except as specified in
paragraph (2).

(2) The commission may approve an application for approval
of a fire protection begin delete reorganization end delete contract where the commission
has determined that the public agency will not have sufficient
revenue to provide the proposed new or different functions or class
of services, if the commission conditions its approval on the
concurrent approval of sufficient revenue sources pursuant to
Section 56886. In approving a proposal, the commission shall
provide that, if the revenue sources pursuant to Section 56886 are
not approved, the authority of the public agency to provide new
or extended fire protection services shall not be exercised.

(j) The commission shall not approve an application for approval
of a fire protection begin delete reorganization end delete contract unless the commission
finds, based on the entire record, all of the following:

(1) The proposed exercise of new or extended fire protection
services outside a public agency’s current service area is consistent
with the intent of this division, including, but not limited to, the
policies of Sections 56001 and 56300.

(2) The commission has reviewed the comprehensive fiscal
analysis prepared pursuant to subdivision (f).

(3) The commission has reviewed any testimony presented at
the public hearing.

(4) 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 begin delete a end delete begin insert the end insert new or extended fire protection services.

(k) At least 21 days prior to the date of the hearing, the executive
officer shall give mailed notice of that hearing to each affected
local agency or affected county, and to any interested party who
has filed a written request for notice with the executive officer. In
addition, at least 21 days prior to the date of that hearing, the
executive officer shall cause notice of the hearing to be published
in accordance with Section 56153 in a newspaper of general
circulation that is circulated within the territory affected by the
proposal proposed to be adopted and shall post the notice of the
hearing on the commission’s Internet Web site.

(l) The commission may continue from time to time any hearing
called pursuant to this section. The commission shall hear and
consider oral or written testimony presented by any affected local
agency, affected county, or any interested person who appears at
any hearing called and held pursuant to this section.

begin insert

(m) This section shall not be construed to abrogate a public
agency’s obligations under the Meyers-Millias-Brown Act (Chapter
10 (commencing with Section 3500) of Division 4 of Title 1).

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert The Legislature finds and declares that, with respect
to fire protection contracts subject to this act, the provisions of
this act are not intended to change, alter, or in any way affect the
existing jurisdiction of a local agency formation commission over
proceedings that involve the provision of prehospital emergency
medical services. end insert

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

The Legislature finds and declares that Section 3 of
this act, which adds Section 56134 to the Government Code,
furthers, within the meaning of paragraph (7) of subdivision (b)
of Section 3 of Article I of the California Constitution, the purposes
of that constitutional section as it relates to the right of public
access to the meetings of local public bodies or the writings of
local public officials and local agencies. Pursuant to paragraph (7)
of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:

This act provides for notice to the public in accordance with
existing provisions of the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000 and will ensure that the
right of public access to local agency meetings is protected.