LAFCO Policy & Procedures

CHAPTER VII. — SPECIALIZED PROCEDURES THAT MAY APPLY FOR SOME APPLICATIONS

Statement of Summaries

The policy and procedures described in this Chapter are for LAFCO proceedings that will occur only on rare occasions. An attempt has been made to provide a summary of these specialized processes without attempting to provide an exhaustive list of the processes required. These summaries are offered with the understanding that all of the previous chapters of these Policy and Procedures must also be considered as well as other aspects of State law.

The following summaries are only meant to provide an overview of these specialized procedures and are not meant to detail all of the requirements that may be required by LAFCO’s Policy and Procedures, principal acts or Cortese-Knox-Hertzberg. For a complete understanding of the requirements of the described proceedings, please consult the cited codes, the requirements of Cortese-Knox-Hertzberg Local Government Act of 2000, LAFCO’s Policy and Procedures and the principal acts, as appropriate.

CITY INCORPORATION

Definition

1. Incorporation is defined as the formation, creation and establishment of a city with corporate powers. Any area proposed for incorporation as a new city shall have at least 500 registered voters residing within the affected area at the time proceedings are initiated. [56043].

2. Incorporation shifts local government responsibility for an unincorporated area under the jurisdiction of the board of supervisors to a newly established city council.

3. This process is accomplished under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, the law governing LAFCO and local government organizational changes. Reasons for incorporation include but are not limited to the following:

To improve local public services
To capture increased revenues to support local services
To give the community control over land use planning
To create a politically accountable governing body in a limited geographic area
To pursue local policy goals

Incorporation Process

3. The procedure for incorporation is a lengthy and complex process requiring at least a year of formal review. The purpose of the formal review process is to ensure that any proposed incorporation is economically feasible and in the best interests of the community.

4. An incorporation proposal must be environmentally and logically sound from a public service viewpoint. Processing an incorporation proposal can be divided into six stages:

Development of the incorporation proposal by a group of interested local residents who form an ad hoc committee to develop incorporation goals, raise funds, collect signatures, assemble the LAFCO application material and who work with LAFCO staff and consultants and provide testimony at public hearings in support of the proposal.
Initiation of the incorporation proposal with LAFCO (see below)
LAFCO staff review of the incorporation proposal
LAFCO public hearing proceedings on the proposal
Election, if approved by LAFCO at the public hearing.
Effect of incorporation, if the voters approve the incorporation

Initiating the Incorporation Process—Petition or Resolution of Application

5. Incorporation proceedings may be initiated either by a resolution of an affected local agency or by petition. An affected agency is any city, special district or county which contains territory within the proposed incorporation boundaries. However, most agencies will not want to initiate an incorporation process by resolution because they may not believe that there is sufficient voter interest in an incorporation, will not want to give up territory or be responsible for the research and gathering of information for the application, or want to be responsible for costs of the incorporation process.

6. A petition must be signed by not less than 25% of the registered voters residing in the area to be incorporated, or by not less than 25% of the land owners who also own not less than 25% of the assessed value of land within the territory to be incorporated. [56764]

7. Before circulating any petition the proponent(s) shall file with the Executive Officer a Notice of Intention that shall include the name and mailing address of the proponent(s) and a written statement, not to exceed 500 words in length, setting forth the reasons for the proposal. [56700.4(a)]

“Circulated” means signed by more than one landowner or registered voter.
After the filing required pursuant to 56700.4(a) the petition may be circulated for signatures.
Any petitions circulated, or signatures obtained, before meeting the requirements of 56700.4 will not be counted or considered valid.
Upon receiving the Notice of Intention, the Executive Officer will notify any affected jurisdictions. [56700.4(c)]

8. The Notice of Intention shall be signed by a representative of the proponent and shall be in substantially the following form. [56700.4(a)]

Notice of Intent to Circulate Petition
Notice is hereby given of the intention to circulate a petition proposing to:_________________________________________________________
The reasons for the proposal are: _____________________________________.
Proponent(s) Name, mailing address and contact numbers
Proponent’s signature ______________________________________________

9. The Resolution of Application or Petition shall do all of the following:

State that the proposal is made pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. [56700(a)]
State the nature of the proposal and list all proposed changes of organization. [56700 (b)] This would include the incorporation and changes of organization required of other agencies.
Set forth a description of boundaries of the affected territory accompanied by a map showing the boundaries. [56700 (c)] (See Chapter IV, Section G, Legal Description and Map Requirements.)
Set forth any proposed terms and conditions. [56700(d)]
State the reason, or reasons, for any proposal. [56700(e)]
If petition, state whether the petition is signed by registered voters or owners of land. [56700(f)]
If petition, designate not to exceed three persons as chief petitioners, setting forth their names and mailing addresses. [56700 (g)]
Request that proceedings be taken for this proposal pursuant to Section 56700 if petition, or 56653 and 56700 if Resolution, and the Cortese-Knox-Hertzberg Local Government Reorganization Act, Sections 56000-57000. [56700(h)]
State whether the proposal is consistent with the sphere of influence of any affected city or special district. [56700(i)]
The petition can also propose a name for the new city [56722]
The petition can also propose the appointment of a city manager and appointment of elective city officials, except city council members.

10. The form of the petition must provide for each signer’s printed name, street address, signature and the date of signature. If a landowner petition, a space must be provided for Assessor Parcel Number (APN). [56704]

11. Each signer of the petition must be a registered voter or landowner, depending on which type of petition is being circulated. For landowner petitions each signature must be accompanied by an Assessor Parcel Number (APN).

12. At least 21 days before the adoption of a Resolution of Application the proponent agency must give a mailed notice of its intention to adopt a Resolution of Application to the commission and to each interested, subject, and affected agency, the county in the case of district formation or incorporation, and each city within 3 miles. For proposals requiring a noticed public hearing mailing by first class mail, postage prepaid, to each registered voter and landowner within the affected territory and within 300 feet of the exterior boundary of the property that is the subject of the proposal. The notice shall generally describe the proposal and define the affected territory and provide information as to time and location of the hearing. [56654(b)]

Interested agency means each local agency which provides facilities or services in the affected territory that a subject agency would provide. [56047.5]
Subject agency means a district or city for which a change of organization is proposed or provided in a reorganization or plan of reorganization. [56077]
Affected agency is any agency that contains territory or whose sphere of influence contains territory within the proposal.
The affected territory is defined by a legal description of the affected territory and a map.
Copies of the notices and certification that the registered voters and property owners have been notified must be submitted with the LAFCO application.
Noticed public hearings are not required for 100 % written landowner consent for an annexation, detachment or reorganization consisting of both, or for the formation of a County Service Area (CSA) [56663].

13. If the proposal is submitted by petition, a noticed public hearing by LAFCO is required. LAFCO will provide notification of all interested, affected and subject agencies and registered voters and property owners within the affected territory and within 300 feet of the exterior boundary of the subject property.

Review of Petition—Certificate of Sufficiency

14. After the Notice of Intention has been filed with the Executive Officer, signatures may be gathered. All signatures must be gathered within a six-month period from the date of the first signature received. [56705]

15. Petitions must be submitted to LAFCO for filing within 60 days of the date of the last signature on the petition. The total number of valid signatures necessary to meet the 25% requirement for registered voters will be established as of the date of the last voter registration report prior to the first signature on the petition and will be reviewed according to the requirements of Government Code Section 56706 and Sections 9113-9115 of the Elections Code.

16. Within the 30 days after the petition is submitted, the Executive Officer will cause the petitions to be examined and will issue a “Certificate of Sufficiency” or “Notice of Insufficiency” upon completion of the examination. [56706(a)] (The Registrar of Voters examines registered voter petitions while landowner petitions are examined by the County Assessor.)

17. If the petition is determined to be insufficient, the Executive Officer will notify the proponents by certified mail. The proponents will have 15 days after the date of the notice to submit a supplemental petition. [56706(b)(1)]

18. If the proponents fail to file sufficient signatures on a supplemental petition, the Executive Officer will file a “Notice of Insufficiency” as a public record without prejudice to any future incorporation process in the same area which will allow the proponents to begin the process of initiating a petition for incorporation without waiting a year.

19. If the petition is determined to have sufficient signatures the Executive Officer will issue a “Certificate of Sufficiency” which will allow the proponents to proceed with the application.

Pre-Application Feasibility Study

20. Prior to submitting an incorporation proposal to LAFCO considerable data and information must be obtained to determine the feasibility of incorporation. An application to LAFCO must be accompanied by a Feasibility Study.

This study is to be provided in addition to all other information listed below or in the general procedures section.
Properly prepared the Feasibility Study will become the backbone of the application and will provide answers to many of the questions needed to be asked by LAFCO.
Also, if properly prepared, the Feasibility Study could be used by the Executive Officer as the Comprehensive Fiscal Analysis (CFA). This will require more initial work than is common to committee produced Feasibility Studies and will be to the discretion of the Executive Officer as to its use as a CFA. (See Paragraph 21 and 31)

21. To be used as a CFA, the Feasibility Study must be developed by an independent consultant paid for by the proponents and must meet LAFCO’s Policy and Procedures requirements, the requirements of state law and the requirements of the Executive Officer.

The Executive Officer will oversee and coordinate the development of the Feasibility Study with the consultant.
A deposit will be required for the cost of Executive Officer’s time and any incidental costs related to this effort.
The Executive Officer will provide an estimate to the proponents based upon his or her understanding of the time involved.
The greater the ability of the consultant to obtain and package the data and information to the satisfaction of the Executive Officer, the less the cost will be for his or her time.
Any portion of the deposit remaining after the study has been developed will be credited toward the incorporation fee.
If an incorporation proposal is not submitted, any remaining deposit will be returned to the incorporation committee.

22. An incorporation Feasibility Study would include, but not be limited to the following information:

The reasons for proposing incorporation
A brief description of the relevant history and characteristics of the study area and the surrounding community
A brief history of the incorporation area including the results of any previous incorporation efforts
A description of the local agencies that presently serve the community, with discussion of the range and level of services currently provided
Demographic, geographic and economic data which describes the area
A clear statement of concerns, issues or problems with the existing government structure including the county and any special districts that presently provide services to the proposed incorporation area
Any changes proposed from the way public services are currently provided including any proposals for reorganization of special districts as part of the incorporation
A map and description of the proposed boundaries and a rationale for the boundaries proposed for incorporation, and a description of possible boundary alternatives
At a minimum, a forecast of revenues including an estimate of property tax distribution and expenditures for the new city during the eight fiscal years following incorporation
Financial information as to revenue neutrality
The effects on the costs and revenues of any affected local agency during the eight fiscal years following incorporation
A discussion of the negative fiscal impacts of the incorporation on affected local agencies and measures proposed to mitigate the negative impacts
A discussion of the range and level of services potentially available to the community after incorporation and how they will be provided
A discussion of the effects of the incorporation upon adjacent communities, special districts, and the county
A discussion of commercial and industrial land use potential, based on the circumstances of the community in question.
A discussion of adequacy of water available to the incorporation area
A discussion of fair share housing requirements for the incorporation area
Any other data or information that may be required by the Executive Officer

23. Two copies of the draft version of the feasibility study should be submitted to the LAFCO office as soon as they are available.

The Executive Officer will review the draft Feasibility Study with the incorporation committee and discuss possible problems and issues that need to be resolved before an application is submitted.
If it is the determination of the Committee and the Executive Officer that, based on the draft study, incorporation is infeasible then the committee can make the decision not to proceed with the incorporation process.
If it is determined by the Incorporation Committee to proceed, a final version of the Feasibility Study, with changes or additional information as requested by the Executive Officer, will be needed.
The total number of copies needed will be 12, plus the number needed by agencies that must be notified and asked to comment, plus the number needed for the public and interested parties.
While it is not required, it makes sense for the Incorporation Committee to prepare a preliminary feasibility study before gathering signatures, if there are any initial questions or cause for concern as to the potential viability of the incorporation proposal. The committee’s preliminary efforts could be used as the basis for a more complete version.

Application Submittal

24. When the incorporation proposal has been initiated by submittal to LAFCO, the final version of the Feasibility Study will be released to public review in conjunction with a preliminary staff report. The Executive Officer will circulate copies of the Feasibility Study to all requesting parties and interested, affected and subject agencies for comment. Sufficient copies for this purpose will need to be provided by the proponents.

25. Public comments on the Feasibility Study will be considered in the preparation of the Executive Officer’s Comprehensive Fiscal Analysis (CFA) as well as the Executive Officer’s Report and Recommendation to the Commission.

26. Proponents shall complete the application as required by LAFCO and other information required by the LAFCO’s Policy and Procedures and the Executive Officer.

Comprehensive Fiscal Analysis

27. Following submission of an incorporation proposal, the Executive Officer will prepare, or cause to be prepared by contract to a consultant, a Comprehensive Fiscal Analysis (CFA). Upon completion the CFA will be released for public review. (Note: See also Paragraph 31)

28. The CFA shall become part of the report required pursuant to Section 56665.

29. Data used for the analysis shall be from the most recent fiscal year, for which data are available, preceding the issuance of the Certificate of Filing. When data requested by the Executive Officer in the notice to affected agencies are unavailable, the analysis shall document the source and methodology of the data used.

30. The analysis shall review the costs to the proposed city of providing public services and facilities during the eight fiscal years following incorporation in accordance with the following criteria:

When determining costs, the Executive Officer shall include all direct and indirect costs associated with the current provision of existing services in the affected territory. These costs shall reflect the actual or estimated costs at which the existing level of service could be contracted by the proposed city following an incorporation, if the city elects to do so, and shall include any general fund expenditures used to support or subsidize a fee-supported service where the full costs of providing the service are not fully recovered through fees.
The Executive Officer shall also identify which of these costs shall be transferred to the new city that results in an administrative cost reduction to other agencies.
In the analysis, the Executive Officer shall also review how the costs of any existing services compare to the costs of services provided in cities with similar populations and similar geographic size that provide a similar level and range of services and shall make a reasonable determination of the costs expected to be borne by the newly incorporated city.
When determining costs, the Executive Officer shall also include all direct and indirect costs of any public services that are proposed to be assumed by the new city and that are provided by county or state agencies in the area proposed to be incorporated.
The Executive Officer shall provide an estimate of the revenues of the proposed city during the eight fiscal years following incorporation which will include a determination of the base property tax for the proposed city and the provisional appropriation limit.
The Executive Officer shall also provide an estimate of the effects on the costs and revenues of any affected local agency during the eight fiscal years following incorporation.
Any other information and analysis needed to make the findings required by Section 56720.

31. The Executive Officer may certify the Feasibility Study as the Comprehensive Fiscal Analysis that is required to be released for public review if he determines that it is adequate, sufficiently complete and impartial.

32. The Executive Officer will notify all interested parties that the CFA is available for public review by publishing a notice in a newspaper of general circulation serving the proposed incorporation area and by mailing notice to all affected agencies, the chief proponents, and all persons who have filed a written request for notification.

33. The notice will specify the locations where the CFA can be reviewed and the time period in which review will occur. The time period must be at least 30 days, and will begin 15 days after the notice is published..

State Controller’s Office Review of CFA

34. During the specified review period, any interested person may request the State Controller’s Office to review the Comprehensive Fiscal Analysis prior to the issuance of the Executive Officer’s report and recommendation. [56801]

35. The party requesting the review will be responsible for all costs associated with the review.

36. A request for Controller’s review shall specify in writing the elements of the fiscal analysis which the Controller is requested to review, and the reasons the Controller is requested to review them. The request must include the LAFCO processing fee and a deposit of $5,000, which will be credited toward the total cost of the Controller’s review and developing the contract by the Executive Officer with the Controller’s office.

37. After a request for the Controller’s review has been submitted to LAFCO, the Executive Officer will contract with the Controller for review of the Comprehensive Fiscal Analysis.

The contract will specify the elements to be reviewed and the estimated cost of the review.
Prior to executing the contract, the person requesting the review will deposit with the Executive Officer the remainder of the Controller’s total estimated cost of conducting the review.
If the Executive Officer is notified that the Controller expects to exceed the estimated cost, the person requesting the review will be notified and will be responsible for depositing the additional amount with the Executive Officer prior to the Controller proceeding with completion of the review.

Revenue Neutrality

38. Any proposal that includes an incorporation should result in a similar exchange of both revenue and responsibility for service delivery among the county, the proposed city, and any other subject agencies.

39. LAFCO may approve a proposal as to revenue neutrality that includes an incorporation if it finds either of the following: [56815]

The county and all of the subject agencies agree to the proposed transfer
The negative fiscal effect has been adequately mitigated by tax sharing agreements, one-time payments, or payments over a fixed period of time, or any other terms and conditions pursuant to Section 56886.

40. In preparing an incorporation Feasibility Study or Comprehensive Fiscal Analysis, negative fiscal impacts to affected agencies must be identified and mitigation measures proposed. For purposes of determining negative impacts and mitigation measures, the following procedures will be used by LAFCO:

Mitigation measures may range from one-time payments to on-going annual transfers of revenue or taxes. The mitigation time period proposed in the feasibility study will evaluate any unique circumstances associated with the incorporation. Based on the evaluation, the feasibility study should propose whether mitigation should be based on tax sharing agreements, one-time payments, or payments over a fixed period of time.
In determining fiscal impacts to affected agencies, expenditures and revenues will be based on the most recent fiscal year for which data are available.
Fiscal impacts to restricted revenues and general fund revenues will be evaluated separately, and one revenue will not be used to offset a surplus or deficit in the other.
Revenues and expenditures that are considered full-cost recovery, e.g., current planning, building inspection, etc., will need to be identified and justified.
All identifiable service related expenditures being transferred to the proposed city, including costs for jail bookings, general government services, etc., will be considered in determining revenue neutrality.
Separate revenue neutrality determinations will be made between the proposed city and the county, and between the proposed city and any affected special district(s).

Plan for Services

41. All applications must be accompanied by a Plan for Services. A Plan for Service should include the following:

A description of local agencies presently serving the area including maps of service areas
The range and level of services presently provided
Proposed changes in governmental structure (e.g. districts proposed to be dissolved and/or merged with the new city)
Anticipated service improvements or upgrades
Information as to how changes or improved services would be financed
The increased or decreased range and level of services potentially available in the community, if incorporated.
Other requirements of the Plan for Services as detailed in Chapter IV, Section H, Plan for Services

Legal Description and Maps

42. Proponents/applicants will need to provide a legal description and maps according to the requirements of Chapter IV, Section G, Legal Description and Map Policy

Boundaries

43. Since LAFCO has the responsibility to consider alternative boundaries, proponents are encouraged to work with LAFCO staff early in the process to develop a logical incorporation boundary and alternatives.

44. Logical boundaries must recognize other local agency boundaries and Sphere of Influence; must include a variety of land uses; must consider topography and communities of interest and must not create islands of unincorporated territory.

45. See Chapter IV, Section F, Boundary Lines for additional information that must be considered.

Environmental Review

46. Incorporations are projects subject to the California Environmental Quality Act (CEQA) and require environmental review. LAFCO will be the Lead Agency for incorporations. LAFCO will prepare the required documentation and will charge the incorporation proponent fees to cover costs. The environmental review must address the possible environmental impacts resulting from the incorporation but does not need to speculate on impacts which may result from future city council actions. (See LAFCO Policies and Procedures for CEQA for a complete explanation of the requirements of CEQA.)

Adequacy of Water

47. Under C-K-H, LAFCO is required to determine if there are adequate water supplies to meet the needs of the proposal. [56668] Section 65352.5 provides the guidelines to be used in determining adequate water supplies, which by policy LAFCO will use for all proposals. Adequacy of water supplies is to be determined by:

Examining the water provider’s service plan and capital improvement plan
Sources of water by water right or contract
Description of quantity of surface water purveyed
Description of quantity of ground water purveyed
Description of proposed additional sources of water
Description of total number of customers by category of agricultural users, commercial users, industrial users and residential users
Quantification of reduction of total water demand by each customer category
Water reduction measures
Any additional information that is relevant to determining the adequacy of existing and planned future water supplies to meet existing and planned future demands on water supplies.

Fair Share Housing

48. LAFCO is now required to examine fair share housing issues for a proposal. Information will be required to be submitted that will assist LAFCO in making determinations as to fair share housing. (See Chapter V, Section F, Regional Housing Needs—Fair Share Planning for an explanation)

Sphere of Influence/Service Review

49. An incorporation proposal will trigger the requirement for LAFCO to conduct a Sphere of Influence study along with a Service Review study. (See Chapter V, Section C, Sphere of Influence and Section D, Service Reviews).

50. LAFCO will approve a Sphere of Influence for a new city at the time of LAFCO hearing on the incorporation.

51. In conjunction with the Sphere of Influence determination, LAFCO will conduct a Service review for the new city and for other agencies whose boundaries or Sphere of Influence may change as a result of incorporation. Incorporation proponents will be required to pay for the cost of these studies.

Paying for the Incorporation Process

52. All of the costs associated with an incorporation process are paid for by the proponents. LAFCO will charge the actual costs of the process. The Executive Officer will provide an estimate to the proponents once the particulars of the proposal are known. See LAFCO’s Fee Deposit Schedule for additional information.

Indemnity Agreement

53. As a condition of approval for any action, the Commission will require that, in the event of legal challenges, the applicant assumes full legal defense costs because they are a liability incurred by LAFCO after, and as a result of project approval. [56383, 56886(f)] (See Chapter III, Section M, Legal Defense Fees and Chapter IV, Section J, Indemnity Agreement)

Financial Disclosure

54. Proponents should be aware of the disclosure requirements associated with proposals submitted to LAFCO. The Political Reform Act, (81000 et seq.) prohibits a person appointed to LAFCO from soliciting or accepting campaign contributions of more than $250 within the preceding 12 months from parties, participants, or their agents while a proceeding is pending before LAFCO and for three months following the decision.

LAFCO commissioners who receive such contributions are required to disqualify themselves from participating in the proceedings.
Both Commissioners and contributors who are parties to the proceedings are required to disclose contributions received or made. Proponents will be required to submit a disclosure form.
It is also required that expenditures for political purposes and contributions in support of, or opposition to, a change of organization or reorganization that has been submitted to LAFCO be disclosed and reported in the same manner as initiative measures [56700.1]

Commission Proceedings

55. Upon receiving a complete application and the completion of the CFA, Sphere of Influence study, Service Review and environmental review, the following actions will be taken:

LAFCO staff conducts an analysis of the proposal
After staff analysis, if the Executive Officer determines that the application is complete, a Certificate of Filing will be issued to the proponents.
A public hearing will be held within 90 days of the issuance of the Certificate of Filing.
At the public hearing, the Commission will review the staff analysis and the Executive Officer’s recommendation and receive oral or written testimony for supporting or opposing the incorporation. [56666 & 56720]

56. At the hearing the Commission must consider a number of factors and policies in compliance with state law. Among the factors considered by LAFCO in making its determination are: [56668]

Population, density, land area and land use, per capita assessed valuation, topography, natural boundaries, drainage basins, proximity to populated areas, likelihood of significant growth during next ten years
Need for organized community services, present cost and adequacy of government services and controls, probable future needs, probable effect of change of organization and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas
The effect of the proposed action or alternate actions on adjacent areas, on mutual social and economic interests, and on the local government structure of the county.
Conformity of the proposal to Commission policies on providing planned, orderly, efficient patterns of urban development, and with state policies and priorities on conversion of open space lands.
Effect of the proposal on maintaining the physical and economic integrity of land in agricultural preserve in open-space uses.
Definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment and ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposal boundaries.
Conformity with appropriate city or county general and specific plans
The sphere of influence of any agency that may be applicable to the proposal being reviewed.
The comments of any affected agency
The ability of the newly formed or receiving entity to provide services which are the subject of the application, including the sufficiency of revenues for those services following the proposed boundary change.
Timely availability of water supplies adequate for projected needs
The extent to which the proposal will assist the receiving entity in achieving its fair share of the regional housing needs as determined by MCOG.
Any information from the landowner(s)
Any information relating to existing land use designations.

57. If a proposal includes the formation of a district or the incorporation of a city, the commission shall determine whether existing agencies can feasibly provide the needed service or services in a more efficient or accountable manner. [56886.5]

58. The Commission has the authority to approve, deny, or modify and approve, the incorporation approval. It also has the ability to add terms and conditions.

59. If the Commission approves the proposed incorporation, it will, at the same hearing adopt a resolution of approval, determine the final boundaries, establish the governmental structure of the new city, determine the base property tax and the provisional appropriation limit, establish mitigation measures, if needed for the impacts of revenue neutrality, and it will set any terms and conditions of approval. [56810, 56812 & 56886]

60. Upon approval, the Commission will establish an effective date for the incorporation and will adopt a Sphere of Influence for the new city. The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

61. If the Commission denies the proposed incorporation, no similar application can be filed for at least two years, unless the Commission waives the prohibition. [57090]

Reconsideration

62. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file within 30 days of the resolution making determinations, a written request with the Executive Officer requesting amendments to, or reconsideration of the resolution and the decision to approve.
· If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
· If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority Proceedings

63. C-K-H establishes LAFCO as the conducting authority for all incorporation proposals requiring protest proceedings.

Following LAFCO approval of a proposal, LAFCO is required to notice and set the proposal for a protest hearing within 35 days following the adoption of LAFCO’s resolution of making determinations (approval). [57002]
Unless the requirements for hearing are waived pursuant to Section 56663 or 56375.3, LAFCO shall conduct a hearing to receive oral or written protests [57000, 57050].
The hearing cannot be held prior to the expiration of the reconsideration period and shall not be less than 21 days or more than 60 days after the date of the notice. [57002(a)]

64. The Commission will conduct protest proceedings according to Chapter VI, Section F of this document.

65. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100).

66. At the end of the protest proceedings the Commission, or the Executive Officer if delegated as the conducting authority, will take one of the following actions: [57077]

Terminate the proceedings if majority protests exist by registered voters in accordance to the requirements of Section 57078.
Order the change of organization subject to confirmation of the voters in an election.

Election

67. If the results of the protest proceedings require an election the Commission will proceed as detailed in Chapter VI, Section G. The election will normally be held at the next general election.

68. A simple majority of those voting is required to approve the incorporation. If at the election, a majority of votes cast are for the question, the Commission shall within 30 days of the canvass of vote issue a Certificate of Completion confirming the order of change and the Executive Officer will proceed as detailed in Chapter VI, Section H. [57176, 571676.1, 57177, 57177.5, 57178]

69. Included on the ballot, along with approval of the incorporation, are the names of those people running for the city council and an appropriations limit as required by law. The ballot may also call for the selection of the name of the new city and can include the questions as to whether the numbers of city council members shall be 5 or 7, and whether subsequent city council elections shall be by district or at- large. By State law, the first election is conducted at-large.

70. If the majority of votes cast are against the question, the Commission shall issue a Certificate of Termination of proceedings. [57179]

71. If the incorporation is successful, the new city will be liable for payment of election costs. In the event the incorporation is rejected by the voters, the County absorbs the election costs. If the incorporation proponents request an earlier election than the next general election, then they will be required to reimburse the County for the costs of the special election.

Effect of Incorporation

72. On and after the effective date of an incorporation, the territory incorporated, all inhabitants, and all persons entitled to vote within the newly incorporated city by reason of residing in the city are subject to the jurisdiction of the city. [57375]

73. On the effective date of the incorporation, following approval by the voters, the people receiving the highest number of votes are sworn in as the new city council. The three people receiving the lowest number of votes serve until the next general election and the two persons receiving the highest number of votes serve until the second general election. [57377] If the first general election will occur less than one year after the effective date of the incorporation then the election of council members for full terms will occur in the second and third general election cycles. [57379]

74. The new city council begins to organize the new city’s administrative structure at their first meeting by adopting the existing ordinances of the County. These ordinances remain in place for 120 days following incorporation, or until the new city council adopts ordinances superseding the County ordinances, whichever occurs first. [57376]

75. Generally a new city provides no direct services during the transitional period, which is the time between the effective date and July 1 of the first fiscal year following the effective date. The County continues to provide municipal services during the transition year to provide time for the new city to prepare for providing services at the beginning of the fiscal year. Upon Board of Supervisors request, the Commission shall impose a requirement that the city will reimburse the County for these costs. [57384]

76. A new city, at its own cost, may opt to assume responsibility for services at any time during the transition year. At the end of the transition year, the new city begins to provide the services that it is authorized to provide. [57384]

77. All county roads or portions thereof within the limits of the new city shall become city streets. [57385]

CITY CONSOLIDATION AND DISINCORPORATION

Definitions

1. Consolidation means the uniting or joining of two or more cities located in the same county into a single new successor city. [56030]

2. Disincorporation means the disincorporation, dissolution, extinguishment, and termination of the existence of a city, and the cessation of its corporate powers. [56034]

Initiation of Proceedings

3. Proceedings for consolidation or disincorporation can be initiated by petition, or by resolution of an affected local agency. [56650 & 56654] The process shall be as detailed in Chapter VI, Section B.

4. A petition for the disincorporation of a city shall be signed by not less than 25% of the registered voters residing in the city proposed to be disincorporated. [56765]

5. A petition for consolidation of two or more cities must be signed by not less than 5% of the registered voters in each city (56766).

6. An application will need to be completed to meet the requirements of Chapter VI, Section C, as appropriate.

Environmental Review

7. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO may be the Lead Agency for city consolidations and will be the Lead Agency for disincorporations. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

LAFCO Proceedings

8. After receiving a consolidation or disincorporation proposal by petition or resolution LAFCO staff conducts an analysis of the proposal. The Commission conducts a hearing to review this analysis and to receive any written or oral testimony on the proposal. [56665 & 56666] (See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.)

9. The Commission adopts a resolution approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

10. If the consolidation or disincorporation is approved, the Commission adopts any terms and conditions of approval. [56886]

11. If the Commission wholly disapproves a proposal, no new proposal involving the same or substantially the same territory shall be initiated for one year after the date of the Commission’s resolution, unless this provision is waived by the Commission. [56884]

Reconsideration

12. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file within 30 days of the resolution making determinations a written request with the Executive Officer requesting amendments to or reconsideration of the resolution and the decision to approve.

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority

13. The Commission is the conducting authority for city consolidations and disincorporations. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

14. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100).

Effect of Consolidation of Cities

15. Upon consolidation, the title to any property owned or held by each predecessor city or by its officers or boards shall be vested in the successor city or its officers or boards. [57476]

16. Immediately upon consolidation, all ordinances of the predecessor city are deemed repealed without discharging any person from any existing civil or criminal liability or affect any pending prosecution for violation of these ordinances. [56747]

17. Sections 57475-57483 provide direction as to the charter of a successor city, title of property, debts, ordinances, which property within the consolidated city can be taxed for predecessor city’s debts and other issues such as name of the successor city.

Effect of Disincorporation

18. Except as otherwise provided in Chapter 5 of Cortese-Knox-Hertzberg, on and after the effective date of a disincorporation, the territory of the disincorporated city, all inhabitants within the territory, and all persons entitled to vote by reason of residing within the territory shall cease to be subject to the jurisdiction of the disincorporated city and shall have none of the rights or duties of voters of a city. [57400]

20. Sections 57400-57425 provides direction as to how remaining funds, uncollected taxes, property, warrants for indebtedness, debts, public utilities and other circumstances of the predecessor city shall be administered.

DISTRICT FORMATION

Principal Act

1. The principal acts under which special districts are formed vary widely both in terms of the nature of the agency that is formed, and the procedures that are followed in the formation. Proceedings for the formation of a district shall be conducted as authorized by the principal act of the district proposed to be formed, except that the Commission shall serve as the conducting authority and the procedural requirements of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 shall prevail in the event of a conflict: (56100).

2. The individual, agency, or community group that is initiating a formation should explore this diversity to find a special district that fulfills their specific set of needs. Chapter VIII of these Policy and Procedures briefly outlines the principal acts for some common special districts. However, there is no substitute for a review of the actual statutes or enabling acts.

Representation

3. The basis of representation is most often voter registration. However some districts in rural areas may allow representation to be based upon land ownership. Votes in landowner districts are cast on the basis of the assessed valuation of land (without regard to improvements) compared to the total assessed valuation of the district. As landowner districts become urbanized, they should convert to registered voter representation, or face potential legal challenges.

Governing Board

4. Wide variation exists in the makeup and means of selection for special districts’
governing boards. The first distinction is whether the district board is elected or appointed by the board of supervisors (or sometimes, city council) in whose jurisdiction the special district exists.

Appointed boards are the means of selection for a “dependent” district - one that exists as a subsidiary agency of the county or a city.
An “independent” special district has an elected board. Some principal acts stipulate that the first board of an independent special district will be appointed by the Board of Supervisors, with subsequent boards elected.
When boards are elected, the principal act may provide for either elections by district, elections at large, or a choice between the two.

5. Even more complex means for selecting board members are sometimes specified when a district includes two or more cities or counties within its boundaries.
The number of board members also varies widely and choices as to numbers may be available or may depend upon other factors decided during formation.

Functions

6. The powers of special districts to perform specific functions are set forth in the principal act. Some districts are limited to performing a single function; others are multi-purpose special districts that can perform nearly the same functions as a city. However, only cities and counties can assume the power to make land use planning decisions and can impose certain taxes.

Inclusion of Territory

7. The territory that may be included within a district upon formation and by annexation is also set forth in the districts’ enabling act. Territory that may be included upon formation may differ from territory that may be annexed. Districts can be empowered to include territory in two or more counties, may be required to include all of a city, if it is to include any part, or may be required to include only contiguous territory. Again, the variation is significant.

Environmental Review

8. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for district formations. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these Policies and Procedures by reference.

Initiation of Proceedings

9. Statutory provisions for initiating a district formation vary from one principal act to another. Formation may be initiated by a petition of registered voters or landowners; or by a resolution of an existing special district board, a city council, or a county board of supervisors. The principal act may limit initiation to one of the above, or allow a choice among several or all of the above. The number of signatures required on a petition also may vary.

Plan for Services

10. In addition to the petition or resolution initiating the formation and all other information required in LAFCO’s Policy and Procedures a Plan for Services is required. The Plan for Services shall include the following information:

The statutory section under which the formation would occur
An enumeration and description of the services to be extended, accompanied by a justification
The level and range of those services
An indication of when those services would be extended
A discussion of any improvements or upgrading of structures, sewer or water facilities, or other conditions the new district would impose or require within its boundaries upon formation
Information about how improvements or services would be financed, an operating budget for the proposed district, and revenues and expenditures in general and for each service that is to be provided.
A discussion of alternative boundaries and rationale for the boundaries proposed.
Other requirements of the a Plan for Services as detailed in Chapter IV, Section H, Plan for Services.

Commission Proceedings

11. After receiving a formation proposal by petition or resolution, LAFCO staff conducts an analysis of the proposal with a recommendation by the Executive Officer. The Commission conducts a hearing to review this analysis and to receive any written or oral testimony on the proposal. [56665 & 56666] See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.

12. The Commission adopts a resolution of determinations approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

13. If the formation is approved the Commission determines the final boundaries and appropriations limit in accordance with Section 7902.7 and Article XIII B of the California Constitution and any other terms and conditions of approval. [56811, 56885.5, 56886, 56886.3]

14. If the district would be assuming the service responsibilities of another agency or agencies, the Commission will also determine the amount of property taxes to be exchanged. [56810]

15. If the Commission wholly disapproves the proposal, no new proposal involving the same or substantially the same territory shall be initiated for one year after the date of the Commission’s resolution unless this provision is waived by the Commission. [56884]

Feasibility of New District

16. When evaluating the formation of a new district, the Commission is required to determine whether existing agencies can feasibly provide the needed service or services in more efficient and accountable manner. If a new single-purpose agency is deemed necessary, the Commission must consider reorganization with other single purpose agencies that provide related services. [56886.5]

Reconsideration

17. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file, within 30 days of the resolution making determinations, a written request with the Executive Officer requesting amendments to, or reconsideration of the resolution and the decision to approve.

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority

18. Section 56100 states, “Notwithstanding any other provision of law, proceedings for the formation of a district shall be conducted as authorized by the principal act of the district proposed to be formed, except that the commission shall serve as the conducting authority and the procedural requirements of this division shall apply and shall prevail in the event of conflict with the procedural requirements of the principal act of the district.”

In the event of such a conflict, the commission shall specify the procedural requirements that apply, consistent with the requirements in this section.
Conducting authority is defined by Section 56029 as, “the commission of the principal county of the entity proposing a change of organization or reorganization, unless another conducting authority is specified by law.”

19. Generally, the Commission serves as the conducting authority for the formation of a district. Refer to Section 56036 or Chapter VIII, Principal Acts for a list of exceptions to this procedure.

20. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

21. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100).

22. The range of actions that may be taken by LAFCO as the conducting authority depends upon the principal act under which formation is proposed. Under some provisions, LAFCO may determine the formation is infeasible and terminate the proceedings.

23. If the Commission wholly disapproves a proposal, no new proposal involving the same or substantially the same territory shall be initiated for one year after the date of the Commission’s resolution, unless this provision is waived by the Commission. [56884]

24. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 allows LAFCO to take one of the following three actions:

Approve the formation without an election, except as otherwise provided in Section 57081, if the formation is part of a reorganization or consolidation where two or more districts are proceeding under the adoption of substantially similar initiating resolutions. [56853, 57854 & 57081]
Approve the formation subject to confirmation at an election
Terminate the formation proceedings if protests are filed by the following: [57077 & 57078]
- In the case of uninhabited territory, landowners owning 50% or more of the assessed value of the land within the territory.
- In the case of inhabited territory, 50% or more of the registered voters within the territory.
- In the case of landowner-voter district, 50 percent or more of the voting power of the voters entitled to vote as a result of owning land.

Election

25. If an election is held and a majority of the votes are cast for formation of the district; the conducting authority shall pass a resolution confirming the order of formation. The Commission resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code

26. If the majority of votes cast are against the question, the Commission shall issue a Certificate of Termination of proceedings. [57179]

Reorganization

27. Except when a district formation is part of a reorganization, formation proceedings shall be conducted as set forth in the principal act of the district to be formed. When the district formation is part of reorganization, all of the proceedings shall be conducted pursuant to the Local Government
Reorganization Act of 2000, (56000, et seq.).

DISTRICT LATENT POWERS

Definition

1. Latent powers are those powers authorized by the principal act when the district was formed, but are not currently being exercised. (See Paragraph 12 below)

Background

2. Prior to the enactment of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, special district representation on LAFCO was contingent upon the districts giving up their right to exercise latent powers without LAFCO approval. C-K-H removed this requirement and authorized the seating of special districts without latent power restrictions. However, the measure retained LAFCO’s ability to regulate special district latent powers as a component of the sphere of influence process. [56425]

3. When adopting, amending, or updating a sphere of influence for a special district, the Commission shall do all of the following: [56425(h)]

Require existing districts to file written statements with the commission specifying the functions or classes of services provided by the district.
Establish the nature, location, and extent of any functions or classes provided by existing districts.

3. Latent powers procedures were further amended by AB 948, which became effective January 2002. AB 948 retained the requirement that LAFCO catalog the services provided by special districts as part of the sphere of influence process, but added new Section 56824.12 dealing exclusively with the process of exercising new or different function or class of services by special districts. (See Paragraph 4, 5 & 6 below.)

Initiation of Proceedings

4. A proposal by a special district to provide new or different functions or class of services within its jurisdictional boundaries shall be made by adoption of a resolution of application by the legislative body of the special district and shall include all the information specified for a petition in Section 56700 and be submitted with a plan for services pursuant to Section 56653 and LAFCO’s policies. [56824.12(a)] (See Chapter IV, Section H, Plan for Services) See also Chapter VI, Section B.

5. In addition the Plan for Services must also include: [56824.12]

The total estimated cost to provide the new or different function or class of services within the special district.
The estimated cost of the new or different function or class of services to customers within the special district’s jurisdictional boundaries.
An identification of existing service providers, if any, of the new or different functions or class of services proposed to be provided and potential fiscal impact to the customers of those existing providers.
A plan for financing the establishment of the new or different function or class of services within the special district’s jurisdictional boundaries.
Alternatives for financing the establishment of the new or different functions or class of services within the special district’s jurisdictional boundaries.

6. Prior to submitting a resolution of application pursuant to this article to the Commission, the legislative body of the special district shall hold a public hearing on the resolution. Notice of the hearing shall be published pursuant to Sections 56153 and 56154.

Environmental Review

7. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for latent powers proposals. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

Commission Proceedings

8. After receiving a latent powers proposal by petition or resolution, LAFCO staff conducts an analysis of the proposal and the Executive Officer provides a recommendation. The Commission conducts a hearing to review this analysis and to receive any written or oral testimony on the proposal. [56665 & 56666] (See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.)

9. The Commission may approve or disapprove with or without amendments, wholly, partially, or conditionally the proposal for the establishment of a new or different functions or class of service. [56824.14] The Commission’s resolution of determinations ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

10. If the Commission wholly disapproves a proposal, no new proposal involving the same or substantially the same territory shall be initiated for one year after the date of the Commission’s resolution, unless this provision is waived by the Commission. [56884]

11. The Commission may restrict the provision of the new or different function or class of service to a geographically specific area within the district. If the Commission imposes this condition, any subsequent extension or enlargement of the service area will be subject to LAFCO review.

12. Any powers not designated in the petition for the formation of the District may not be exercised if the voters in the District must activate the power. Pursuant to Section 61601 of the California Government Code the district board “may call a special district election and submit to the electors of the district, or submit them at the next general district election, the question of whether the district should adopt such additional purpose or purposes. If the majority of the votes cast at the election upon such proposition shall be in favor of the adoption of such additional purpose or purposes, then the powers of district may be exercised therefore.”

Reconsideration

13. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file, within 30 days of the resolution making determinations, a written request with the Executive Officer requesting amendments to or reconsideration of the resolution and the decision to approve.

If a reconsideration request if filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority

14. There are no protest proceedings in conjunction with the establishment of a new or different function or class of service, or the extension or enlargement of service.

DISTRICT CONSOLIDATION

Definition

1. Consolidation means the uniting or joining of two or more districts into a single new successor district. The districts that are consolidating must have been formed under the same principal act (56030).

Initiation of Proceedings

2. Proceedings for consolidation of special districts shall be initiated by petition or by resolution of the governing body of an affected local agency. [56650 & 56654]
(See Chapter VI, Section B for detailed description of the process.)

3. LAFCOs are authorized to initiate proposals for consolidation of special districts, dissolution of special districts, mergers of special districts, establishment of special districts as subsidiary districts to cities, or reorganization that include any of preceding changes of organization. [56375(a), 56378, and 56425] (See Chapter V, Section B, Reorganization and Section C, LAFCO Initiated Proposals.)

4. Petitions for consolidation of two or more districts shall be signed as follows: [56865]

For registered-voter districts, by not less than 5% of the registered voters within each of the several districts
For landowner-voter districts, by landowner-voters within each of the several districts and who also own not less than 5% of the assessed value of land within each of the several districts.

Environmental Review

5. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for district consolidations. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

Commission Proceedings

6. After receiving a consolidation proposal by petition or resolution LAFCO staff conducts an analysis of the proposal and the Executive Officer provides a recommendation. The Commission conducts a noticed public hearing to review this analysis and to receive any written or oral testimony on the proposal. [56665 & 56666] (See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.)

7. The Commission adopts a resolution making determinations approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

8. If a majority of the members of each of the governing bodies of two or more districts adopt substantially similar resolutions of application for a consolidation, LAFCO shall approve, or conditionally approve, the proposal. [56853]

9. If the consolidation is approved, the Commission adopts any terms and conditions of approval.

Reconsideration

11. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file within 30 days of the resolution making determinations a written request with the Executive Officer requesting amendments to or reconsideration of the resolution and the decision to approve.

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority

12. The Commission is the conducting authority for a district consolidations. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

13. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100)

14. The conducting authority shall adopt a resolution making a finding regarding the value of written protests filed and not withdrawn, and take one of the following actions: [57077]

Order the consolidation without election if the proposal meets the requirements of Section 56854
Order the consolidation subject to the confirmation or the voters if a petition is submitted signed by 25% of the landowners or voters requesting an election. [57081]
Terminate the proceedings if a majority protest exists in accordance with Section 57078.

15. For a proposal initiated by LAFCO, the Commission shall forward the change of organization or reorganization for confirmation by the voters if the commission finds either of the following: [57113]

In the case of inhabited territory, order the consolidation subject to confirmation of the voters, if a petition requesting an election is submitted by 10% of the number of landowners within the affected territory who own at least 10% of the assessed value of land within the territory. If the number of landowners within the affected district is less than 300, the petition requesting the proposal be submitted to the voters shall be signed by at least 25 percent of the landowners who own at least 25 percent of the assessed value of land within the territory of the affected district.
In the case of inhabited territory, order the consolidation subject to confirmation of the voters, if a petition requesting the election is submitted by at least 10 percent of the voters entitled to vote as a result of residing within, or owning land within, any affected territory. However, if the number of voters entitled to vote within an affected district is less than 300, the petition requesting the proposal be submitted to the voters shall be signed by at least 25% of the voters entitled to vote.
In the case of landowner-voter district, that the territory is uninhabited and a petition requesting that the proposal be submitted to confirmation by the voters has been signed by at least 10% of the number of landowners within any affected district within the affected territory, owning at least 10 percent of the assessed value of land within the territory. If the number of voters entitled to vote within an affected district is less than 300, the petition requesting the proposal be submitted to the voters shall be signed by at least 25% of the voters entitled to vote.

Election

16. After the election the conducting authority shall take one of the following actions: [57177.5]

Adopt a resolution confirming the order of consolidation if, within the territory of each district ordered to be consolidated, a majority of the votes cast favored consolidation.
Terminate the proceedings if, in one of the districts ordered to be consolidated the votes cast in favor were not a majority.

17. If the election is successful the successor district pays for the election. If it is unsuccessful the respective districts pay in proportion to their respective assessed values, if proceedings are terminated. [57150(d)]

18. If the majority of votes cast are against the question, the Commission shall issue a Certificate of Termination of proceedings. [57179]

19. Selection of officers for the successor district shall be as required by the principal act and shall be voted upon at the same election for the question of the consolidation. [57139] If the principal act does not specify a process then the Commission will determine the selection process. [56886(n)]

Effect of Consolidation

20. On and after the effective date of the consolidation, the consolidated district succeeds to all of the powers, rights duties, obligations, functions and properties of the predecessor districts. [57500]

21. All inhabitants within the territory of a consolidated district and all persons entitled to vote by reason of residing or owning land within the territory are subject to the jurisdiction of the consolidated district and have the same rights and duties as if the consolidated district had been originally formed under the principal act. [57500]

22. No payment for the use, or right of use, or any property, real or personal, acquired or constructed by any predecessor district shall be required by reason of the consolidation. [57501]

23. The consolidated district shall be liable for payment of principle, interest, and any other amounts, contracts or other obligations of the predecessor district.[57502]

DISTRICT DISSOLUTION

Definition

1. Dissolution means the dissolution, disincorporation, extinguishment, and termination of the existence of a district, and the cessation of all its corporate powers, except for the purpose of concluding the district’s affairs. [56035]

Initiation of Proceedings

2. Proceedings for dissolution of a special district shall be initiated by petition or by resolution of the governing body of an affected local agency. [56650 & 56654]
(See Chapter VI, Section B for a detailed description of the process.)

3. LAFCOs are authorized to initiate proposals for consolidation of special districts, dissolution of special districts, mergers of special districts, establishment of special districts as subsidiary districts to cities, or reorganization that include any of the preceding changes of organization. [56375(a), 56378, and 56425] (See Chapter V, Section B, Reorganization and Section C, LAFCO Initiated Proposals.)

4. Petitions for dissolution of a special district shall be signed as follows: [56865]

For registered-voter districts, by not less than 10% of the registered voters within each of the several districts or by not less than 10% of the number of landowners who also own not less than 10% of the assessed value of land within the district.
For landowner-voter districts, not less than 10% of the number of landowner-voters within the district who also own not less than 10 percent of the assessed value of land within the district.

Non-Use of Corporate Powers

5. A petition for the dissolution of a district for the “non-use of corporate powers” requires the signatures of three or more registered voters within the district for a registered-voter district, or by three or more landowners within a landowner district, provided one or more of the following conditions have existed or now exists: [56871]

That during the three year period preceding the date of the first signature any of the following events have not occurred:
- There has not been a duly selected and acting quorum of the board of directors of the district
- The board of directors has not furnished or provided services or facilities of substantial benefit to residents, landowners, or property within the district
- The board of directors has not levied or fixed and collected any taxes, assessments, service charges, rentals, or rates or expended the proceeds of those levies or collections for district purposes.
That during the one-year period preceding the date of the first signature upon the petition a quorum of the duly selected and acting board of directors has not met for purpose of transacting district business.
That upon the date of first signature upon the petition, the district had no assets, other than money in the form of cash, investments or deposits.

Environmental Review

6. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for district dissolutions. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

Commission Proceedings

6. After receiving a dissolution proposal by petition or resolution, LAFCO staff conducts an analysis of the proposal. The Commission conducts a noticed public hearing to review this analysis and to receive any written or oral testimony for the proposal. [56665 & 56666] (See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.)

7. After hearing public testimony, the Commission may approve, modify, or deny the proposed dissolution. The Commission adopts a resolution making determinations approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

8. If the Commission wholly disapproves a proposal, no new proposal involving the same or substantially the same territory shall be initiated for one year after the date of the Commission’s resolution, unless this provision is waived by the Commission. [56884]

9. If it is approved, the Commission also will adopt terms and conditions for the dissolution. [56886] Then the proposal is scheduled for a conducting authority hearing where not further modifications may be made.

Reconsideration

10. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file within 30 days of the resolution making determinations a written request with the Executive Officer requesting amendments to or reconsideration of the resolution and the decision to approve.

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority Proceedings

11. The Commission is the conducting authority for a district dissolution. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

12. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100).

13. For dissolutions, the conducting authority shall adopt a resolution making a finding regarding the value of written protests fled and not withdrawn, and take one of the following actions: [56854]

Where the proposal was not initiated by the Commission, and where an affected city or district has not objected by resolution, order the district dissolution without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meet the requirements of Section 57081. [56854(a)(1)]
Where the proposal was not initiated by the Commission, and where an affected city or district has objected by resolution, order district dissolution without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meets the requirements of Section 57114. [56854(a)(2)]
Where the proposal was initiated by the Commission, and regardless of whether an affected city or district has objected by resolution, order district dissolution without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meets the requirements of Section 57113. [56854(a)(3)]
Terminate proceedings if a majority protest exists in accordance with Section 57078.

14. Any resolution ordering the dissolution of a local hospital district, organized pursuant to Division 23, commencing with Section 32000 of the Health and Safety Code is subject to the confirmation of the voters. [57103]

15. If the commission makes any of the findings specified below, the Commission may, except as otherwise provided in Section 57103, order the dissolution without an election. In any resolution ordering a dissolution, the Commission shall make findings upon one or more of the following: [57102]

That the corporate powers have not been used, as specified in Section 56871 and that there is reasonable probability that those powers will not be used in the future.
That the district is a registered-voter district and uninhabited
That the board of directors of the district has, by unanimous resolution, consented to the dissolution of the district.
That the commission has authorized pursuant to Section 56854, the dissolution without an election.

Election

16. If an election is held and a majority of the votes are cast for dissolution of the district, the conducting authority shall pass a resolution confirming the order of dissolution. The Commission resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code

17. If the majority of votes cast are against the question, the Commission shall issue a Certificate of Termination of proceedings. [57179]

18. All proper expenses incurred in conducting elections for a dissolutions shall be paid from the remaining assets of the dissolved district. [57150]

Effect of Dissolution

19. On and after the effective date of the dissolution of a district, the district shall be dissolved, disincorporated, and extinguished, its existence shall be terminated and all of the corporate powers shall cease, except as the Commission may otherwise provide pursuant to Section 56886 or for the purpose of winding up the affairs of the district as provided in Sections 57451-57483. [57450]

DISTRICT MERGERS AND ESTABLISHMENT OF SUBSIDIARY DISTRICTS

Definitions

1. A merger means the extinguishment, termination, and cessation of the existence of a district of limited powers by the merger of such a district with a city, as a result of proceedings initiated pursuant to the C-K-H. [56056]

2. A subsidiary district means a district of limited powers in which the city council of a city shall be designated as, and empowered to act as, the ex officio board of directors of such district. [56078]

3. A district of limited powers may be either merged with, or established as a subsidiary district of a city. [56117]

4. Any proposal for a merger of a district of limited powers, which is not presently a subsidiary district, must also consider the alternative proposal for the establishment of a subsidiary district, and any proposal for establishment of a subsidiary district must also consider the alternative proposal for a merger (56118). The exception is the case of mergers of existing subsidiary districts. (See Chapter VII, District Mergers of Existing Subsidiary Districts)

Territorial Requirement

5. In a merger, the territory of a district shall be included entirely within the boundaries of a city. [57104]

6. In establishing a subsidiary district: [57105]

The entire territory of a district shall be included within the boundaries of a city; or
A portion or portions of the territory of such district shall be included within the boundaries of a city, and such portion or portions shall both represent 70% or more of the area of land within such district and contain 70% or more of the number of registered voters who reside within the district.

Initiation of Proceedings

7. Proceedings for a merger or establishment of a subsidiary district proposal shall be initiated by petition or by resolution of the governing body of an affected local agency. [56650, 56654] See Chapter VI, Section B for a detailed description of the process.

8. Petitions for a merger of a registered-voter district of limited powers which overlaps a city, or for the establishment of such district as a subsidiary district of such city shall be signed by: [56866(a)]

5% of the registered voters of the district; or
5% of the registered voters residing within the territory of the city outside the boundaries of said district.

9. Petition for a merger of a landowner-voter district of limited powers which overlaps a city, or for the establishment of such district as a subsidiary district of such city shall be signed by: [56866(b)]

5% of the number of landowner-voters who own not less than 5% of the assessed value of land within such district; or
5% of the registered voters residing within the territory of such city outside the boundaries of the district.

10. LAFCOs are authorized to initiate proposals for consolidation of special districts, dissolution of special districts, mergers of special districts, establishment of special districts as subsidiary districts to cities, or reorganization that include any of the preceding changes of organization. [56375(a), 56378, and 56425] (See Chapter V, Section B, Reorganization and Section C, LAFCO Initiated Proposals.)

Environmental Review

11. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for district mergers and establishment of a subsidiary district. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

Commission Proceedings

12. After receiving a merger or establishment of a subsidiary district proposal by petition or resolution, LAFCO staff conducts an analysis of the proposal. The Commission conducts a noticed public hearing to review this analysis and to receive any written or oral testimony for the proposal. [56665 & 56666] See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.

13 Within 10 days after receiving a proposal to form a subsidiary district, the Executive Officer shall notify by certified mail the district or districts that are the subject of the proposal. [56861(a)]

14. Within 35 days after receiving the notice from the Executive Officer, the board of directors of the subject district or districts may do either of the following: [56861(b)]

Adopt a resolution consenting to the subsidiary district proposal, with or without requesting additional terms and conditions; or
Adopt a resolution of intention to file an “alternative proposal” to the subsidiary district proposal.
“Alternative proposal” means an alternative proposal to a subsidiary district proposal as provided in Section 56861.
An “alternate proposal” is not the same as the requirement in Section 56118 (See Paragraph 4 above and Section 56118). An alternate proposal by the subject district could include remaining as a independent special district or different terms and condition then that proposed by the city or petitioners.

15. Any resolution adopted under paragraph 13 or 14 above shall be immediately filed with the Executive Officer. [56861(c)]

16. If a district files a resolution of intent to file an alternative proposal, the Executive Officer shall take no further action on the original proposal for 70 days. During this period the district shall prepare and submit a completed application for the alternative proposal. [56862]

17. A district that has filed a resolution of intention but has not filed a completed application within the prescribed time shall be deemed to have consented to the original subsidiary district proposal. [56862(b)]

18. After receiving an alternative proposal, the Executive Officer shall analyze and report on both the original and alternative proposal concurrently, and schedule the proposals for a simultaneous public hearing. [56861(c)]

19. Within 35 days following the conclusion of a hearing on an original and an alternative proposal to form a subsidiary district, the LAFCO shall adopt its resolution of determination, which shall do one of the following: [56863]

Deny both the original proposal and the alternative proposal
Approve one proposal and deny the other
Alternative proposal means an alternative proposal to a subsidiary district as provided in 56861

20. The Commission adopts a resolution approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

21. If the proposal is approved, the Commission also will adopt terms and conditions for the dissolution. [56886] Then the proposal is scheduled for a conducting authority hearing where not further modifications may be made.

Reconsideration

22. When the Commission has approved a proposal and has adopted a resolution making determinations, any affected person or agency may file within 30 days of the resolution making determinations a written request with the Executive Officer requesting amendments to or reconsideration of the resolution and the decision to approve.

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority Proceedings

23. The Commission is the conducting authority for a merger or establishment of a subsidiary district. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

24. Protest hearings may vary from the procedures described in Section F. The applicable sections of law for the protest hearing should be consulted. Where conflicts exist, LAFCO procedures shall prevail (56100).

25. Upon conclusion of the protest hearing, the Commission, subject to the limitations of Sections 57104 and 57105 shall take one of the following actions as allowed in Sections 56854, 57078 or 57107.

26. For a merger or the establishment of a subsidiary district, the conducting authority shall adopt a resolution making a finding regarding the value of written protests fled and not withdrawn, and take one of the following actions:

Where the proposal was not initiated by the Commission and where an affected city or district has not objected by resolution, order the district merger or establishment of a subsidiary district without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meet the requirements of Section 57081. [56854(a)(1)]
Where the proposal was not initiated by the Commission and where an affected city or district has objected by resolution, order the merger or establishment of a subsidiary district without an election unless a petition has been submitted requesting the proposal b submitted to the voters that meets the requirements of Section 57114. [56854(a)(2)]
Where the proposal was initiated by the Commission and regardless of whether an affected city or district has objected by resolution, order the merger or establishment of a subsidiary district without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meets the requirements of Section 57113. [56854(a)(3)]
Terminate proceedings if a majority protest exists in accordance with Section 57078.

27. In any resolution ordering a merger or establishment of a subsidiary district the commission shall take one of the following actions: [57107]

Order the merger or establishment of the subsidiary district subject to confirmation by the voters on the question of (1) the merger, (2) establishment of a subsidiary district, or (3) both merger and establishment of a subsidiary district.
Order the merger or establishment of a subsidiary district without an election if the legislative body of the city and the board of directors of the district have by resolution consented to the merger or establishment of the subsidiary district.

28. The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

Election

29. If an election is called on the question of a merger or the establishment of a subsidiary district, the Commission may provide for the election or elections to be called, held, and conducted upon the question or questions: [57108 and 57118]

Only within the district ordered to be merged with or established as a subsidiary district
Both within said district and within the territory of said city outside the boundaries of the district [57118]

30. The election shall be held only within the district if, prior to the adoption of resolution ordering the merger or establishment of a subsidiary district, a petition is filed and approved which: [57108]

In the case of a registered-voter district is signed by not less than 10% of the registered voters of the district
In the case of a landowner-voter district is signed by not less than 10% of the number of landowners within the district who also own not less than 10% of the assessed value of land within the district.

31. If after canvassing the returns on the question of a merger or establishment of a subsidiary district, or both, the Commission determines the action was defeated by the voters; the Commission shall execute a Certificate of Termination [57179]

32. If after canvassing the returns on the question of a merger or establishment of a subsidiary district, or both, the Commission determines the action was approved by the voters; the Commission shall execute a Certificate of Completion confirming the order of the merger, or order the establishment of a subsidiary district in the following manner: [57177]

Where the question submitted to the voters was only upon merger or only upon establishment of a subsidiary district, the Commission shall execute a Certificate of Completion confirming the order at an election called either (1) only within the district or at each election, or (2) where one election was called within the district and another election was called within the territory outside the boundaries of the district.
Where both the question of merger and the question of establishment of a subsidiary district were submitted at an election called both within the district and within the territory of the city outside the boundaries, and both questions were favored by a majority of the voters in both areas, that change of organization receiving the greater number of votes in both elections shall be completed.
Where the number of votes was the same, or where the question of merger received the greater number of votes in one of the elections, a merger shall be completed.

Effect of Merger or Establishment of a Subsidiary District

33. If an effective date of the merger or establishment of a subsidiary district is fixed in the terms and conditions of the Commission’s resolution, that date shall be the effective date. An effective date shall not be fixed which is earlier than either of the following: [57202]

Earlier than the date of the execution of the Certificate of Completion
Later than nine months after the date of the election

34. If no effective date has been fixed the effective date shall be the date of recordation of the Certificate of Completion with the county recorder. [57202(c)]

35. The Executive Officer shall record no later than 90 days after the date of the election [57203]

36. The Executive Officer shall file the statement of boundary change with the Board of Equalization, the county assessor, the registrar of voters and the county auditor. [57204]

37. On and after the effective date of a merger of a district of limited powers with a city, the district is extinguished, terminated and its existence ceases except as otherwise provided in Sections 57525-57533.

38. On and after the effective date of an order establishing a district of limited powers as a subsidiary district of a city, the city council shall be designated as, and empowered to act as, ex officio board of directors of the district. [57534]

The district shall continue in existence with all the powers, rights, duties, obligations, and functions provided by the principal act, except to the provisions relating to the selection or removal of the members of the board of directors of the district.
If any court determines that an incompatibility exists by reason of the same person holding office as a member of the city council and as a member of the board of directors, the court shall order the vacation of the board of directors seat but not as member of the city council and shall order the membership of the board of directors be selected in the manner provided by the principal act. [57535]

DISTRICT MERGERS OF EXISTING SUBSIDIARY DISTRICTS

Definition

Territorial Requirement

2. Any order of a merger may be adopted for a district of limited powers, including a subsidiary district, if the entire territory of the district is included within the boundaries of a city upon the date of the order. [57104]

Initiation of Proceedings

3. Proceedings for a merger of a subsidiary district proposal shall be initiated by petition or by resolution of the governing body of any affected local agency. [56650 & 56654] See Chapter VI, Section B for a detailed description of the process.

4. Petitions for a merger of a registered-voter district of limited powers which overlaps a city, or for the establishment of such district as a subsidiary district of such city shall be signed by: [56866(a)]

5% of the registered voters of the district; or
5% of the registered voters residing within the territory of the city outside the boundaries of said district.

5. Petition for a merger of a landowner-voter district of limited powers which overlaps a city, or for the establishment of such district as a subsidiary district of such city shall be signed by: [56866(b)]

5% of the number of landowner-voters who own not less than 5% of the assessed value of land within such district; or
5% of the registered voters residing within the territory of such city outside the boundaries of the district.

6. LAFCOs are authorized to initiate proposals for consolidation of special districts, dissolution of special districts, mergers of special districts, establishment of special districts as subsidiary districts to cities, or reorganization that include any of the preceding changes of organization. [56375(a), 56378, and 56425] (See Chapter V, Section B, Reorganization and Section C, LAFCO Initiated Proposals.)

Environmental Review

7. Like other public agencies, LAFCO is required to comply with the California Environmental Quality Act (CEQA) for purposes of considering the environmental impact of its actions. Each proposal must receive the appropriate environmental review for consideration by the Commission in making its decision. LAFCO will be the Lead Agency for mergers of subsidiary districts. For a detailed discussion of environmental requirements please refer to LAFCO’s separate document entitled, Policy and Procedures for the Processing of Environmental Documents which are incorporated into these policies and procedures by reference.

Commission Proceedings

8. After receiving a merger of a subsidiary district proposal by petition or resolution, LAFCO staff conducts an analysis of the proposal. The Commission conducts a noticed public hearing to review this analysis and to receive any written or oral testimony for the proposal. [56665 & 56666] (See LAFCO Procedures in Chapter VI of these Policy and Procedures for a more detailed description of the process.)

9. The Commission shall not order the merger if the City has not consented to the merger. [57107]

10. The Commission adopts a resolution approving or disapproving the proposal. [56880] The Commission’s resolution ordering the change of organization shall comply with all requirements in Sections 57100 - 57120 of the Government Code.

9. If the proposal is approved, the Commission also will adopt terms and conditions. [56886] Then the proposal is scheduled for a conducting authority hearing where not further modifications may be made.

Reconsideration

If a reconsideration request is filed, the Commission will proceed as detailed in Chapter VI, Section E.
If a reconsideration request is not filed the Commission will proceed to the protest hearing, if applicable.

Conducting Authority Proceedings

12. The Commission is the conducting authority for a merger or establishment of a subsidiary district. Protest proceedings will generally follow those outlined in Chapter VI, Section F.

14. The Executive Officer of the Commission shall give notice of the protest hearing by publication pursuant to Sections 56153 and 56154 and by posting pursuant to Sections 56158 and 56159.

15. Upon conclusion of the protest hearing, the Commission, subject to the limitations of Sections 57104, may take one of the following actions as allowed in Sections 56854, 57078 or 57107.

16. For a merger of a subsidiary district, the conducting authority shall adopt a resolution making a finding regarding the value of written protests filed and not withdrawn, and take one of the following actions:

Where the proposal was not initiated by the Commission and where an affected city or district has not objected by resolution, order the district merger without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meet the requirements of Section 57081. [56854(a)(1)]
Where the proposal was not initiated by the Commission and where an affected city or district has objected by resolution, order the merger without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meets the requirements of Section 57114. [56854(a)(2)
Where the proposal was initiated by the Commission and regardless of whether an affected city or district has objected by resolution, order the merger of a subsidiary district without an election unless a petition has been submitted requesting the proposal be submitted to the voters that meets the requirements of Section 57113. [56854(a)(3)]
Terminate proceedings if a majority protest exists in accordance with Section 57078.

17. In any resolution ordering a merger of a subsidiary district the commission shall take one of the following actions: [57107]

Order the merger of the subsidiary district subject to confirmation by the voters
Order the merger or establishment of a subsidiary district without an election if the legislative body of the city and the board of directors of the district have by resolution consented to the merger of the subsidiary district.

Election

18. If an election is called on the question of a merger of a subsidiary district, the Commission may provide for the election or elections to be called, held, and conducted upon the question or questions: [57108 and 57118]

Only within the district ordered to be merged
Both within said district and within the territory of said city outside the boundaries of the district [57118]

19. The election shall be held only within the district if, prior to the adoption of resolution ordering the merger, a petition is filed and approved which: [57108]

In the case of a registered-voter district is signed by not less than 10% of the registered voters of the district
In the case of a landowner-voter district is signed by not less than 10% of the number of landowners within the district who also own not less than 10% of the assessed value of land within the district.

20. If after canvassing the returns on the question of a merger the Commission determines the action was defeated by the voters; the Commission shall execute a Certificate of Termination [57179]

21. If after canvassing the returns on the question of a merger, the Commission determines the action was approved by the voters; the Commission shall execute a Certificate of Completion confirming the order of the merger, at an election called either (1) only within the district or at each election, or (2) where one election was called within the district and another election was called within the territory outside the boundaries of the district. [57177]

Effect of Merger or Establishment of a Subsidiary District

22. If an effective date of the merger is fixed in the terms and conditions of the Commission’s resolution, that date shall be the effective date. An effective date shall not be fixed which is earlier than either of the following: [57202]

Earlier than the date of the execution of the Certificate of Completion
Later than nine months after the date of the election

23. If no effective date has been fixed the effective date shall be the date of recordation of the Certificate of Completion with the county recorder. [57202(c)]

24. The Executive Officer shall record no later than 90 days after the date of the election [57203]

25. The Executive Officer shall file the statement of boundary change with the Board of Equalization, the county assessor, the registrar of voters and the county auditor. [57204]

26. On and after the effective date of a merger of a district of limited powers with a city, the district is extinguished, terminated and its existence ceases except as otherwise provided in Sections 57525-573533

27. The merger of a subsidiary district with a city, of which the city council is also the governing board of that subsidiary district, shall not be subject to Sections 99 and 99.01 of the Revenue and Taxation Code, if the city council adopts a resolution that states the city shall do all of the following: [57087.3]

Continue providing services of the subsidiary district at the same level to those areas outside the city’s boundaries, but within the territory of the subsidiary district as the services provided for territory within the city limits.
Assume all assets of subsidiary district
Assume all liabilities of the subsidiary district
Assume all ad valorem taxes, other accounts receivable, and other revenues of the district.

Mendocino County Local Agency Formation Commission

LAFCO Policy & Procedures

CHAPTER VII. — SPECIALIZED PROCEDURES THAT MAY APPLY FOR SOME APPLICATIONS

Statement of Summaries

CITY INCORPORATION

Definition

Incorporation Process

Initiating the Incorporation Process—Petition or Resolution of Application

Review of Petition—Certificate of Sufficiency

Pre-Application Feasibility Study

Application Submittal

Comprehensive Fiscal Analysis

State Controller’s Office Review of CFA

Revenue Neutrality

Plan for Services

Legal Description and Maps

Boundaries

Environmental Review

Adequacy of Water

Fair Share Housing

Sphere of Influence/Service Review

Paying for the Incorporation Process

Indemnity Agreement

Financial Disclosure

Commission Proceedings

Reconsideration

Conducting Authority Proceedings

Election

Effect of Incorporation

CITY CONSOLIDATION AND DISINCORPORATION

Definitions

Initiation of Proceedings

Environmental Review

LAFCO Proceedings

Reconsideration

Conducting Authority

Effect of Consolidation of Cities

Effect of Disincorporation

DISTRICT FORMATION

Principal Act

Representation

Governing Board

Functions

Inclusion of Territory

Environmental Review

Initiation of Proceedings

Plan for Services

Commission Proceedings

Feasibility of New District

Reconsideration

Conducting Authority

Election

Reorganization

DISTRICT LATENT POWERS

Definition

Background

Initiation of Proceedings

Environmental Review

Commission Proceedings

Reconsideration

Conducting Authority

DISTRICT CONSOLIDATION

Definition

Initiation of Proceedings

Environmental Review

Commission Proceedings

Reconsideration

Conducting Authority

Election

Effect of Consolidation

DISTRICT DISSOLUTION

Definition

Initiation of Proceedings

Non-Use of Corporate Powers

Environmental Review

Commission Proceedings

Reconsideration

Conducting Authority Proceedings

Election

Effect of Dissolution