AGENDA FOR MEETING OF THE LOCAL AGENCY FORMATION

                 COMMISSION FOR THE COUNTY OF LOS ANGELES TO BE HELD IN

                   ROOM 381B OF THE KENNETH HAHN HALL OF ADMINISTRATION

                      500 WEST TEMPLE STREET, LOS ANGELES, CALIFORNIA 90012

                                                WEDNESDAY, JANUARY 23, 2002

                                                                      9:00 A.M.

 

AGENDA POSTED:   January 16, 2002.

 

 

CONTINUED HEARING

 

1.         City of Bell Gardens Detachment from the Belvedere Garbage Disposal District.  (Continued from meeting of December 12, 2001).

 

 

SPECIAL ITEMS

 

2.   Antelope Valley Hospital District Non-payment of 2001-2002 Assessment.

 

3.   Special Reorganization Update

     a.  PFM - Monthly Status Report

     b.  Territorial boundaries:

(1)  Resolution regarding San Fernando Valley and Hollywood boundary adjustment.

         (2)  Requests to be excluded from the proposed City of Hollywood.

       c.     Procedures for Requesting State Controller Review of a Comprehensive Fiscal Analysis.

d.   San Fernando Valley Council Districts presentation (Clark/Quinlan).

     e.   California Legislative Council legal opinion on assets.
     f.   LSA contract amendment.

           

 

MISCELLANEOUS

 

4.   Approve minutes for the January 9, 2002 meeting of the Local Agency Formation Commission.

 

5.   Public comment period: Opportunity for members of the public to address the Commission on items of interest that are within the subject matter jurisdiction of the Commission.  Speakers are reminded of the three-minute time limitation.

 

6.   New Business: Commissioner’s discussion of Matter not on Posted Agenda (To be  Discussed and upon Commission approval placed on the Agenda for Action at a Future Meeting).

7.    Settings for the February 13, 2002 Agenda.

STAFF REPORT

 

JANUARY 23, 2002

 

 

CONTINUED HEARING ON CITY OF BELL GARDENS DETACHMENT

FROM THE BELEDERE GARBAGE DISPOSAL DISTRICT

 

AGENDA ITEM NO. 1

 

 

On December 12, 2001 a hearing was held to consider the proposed detachment.  The Commission held over the matter to permit the parties to reach agreement on the issue of Bell Gardens’ request to receive a portion of the District’s assets.

 

Presently, the District provides refuse, recyclable materials, and green waste collection services to the City of Bell Gardens through a contract with a private waste hauler.  The current contract for the City of Bell Gardens is with Waste Management, Inc.  District services are limited to trash receptacles, therefore, there are certain multi-family residences, businesses, and commercial/industrial establishments within the City who receive separate private dumpster services.  Further, the City of Bell Gardens has awarded a number of nonexclusive franchises to private waste haulers for commercial collection.

 

District Resources

The operation of the District is primarily financed through the collection of a Garbage Collection and Disposal Service Fee imposed on each parcel of real property within the District, with a supplement of ad valorem property tax received as a special district. 

 

Projected fiscal year revenues from Service Fees assessed to properties located within the City is estimated at $848,000.

 

Reserves

The District’s reserve is currently projected to be approximately $5,000,000.  The District has requested, should the Commission elect to allocate a portion of these reserves to the City, such allocation should be proportional to a fraction of revenues generated by the Service Fee in the City compared to those in the District.  Additionally, the District has requested that consideration only be given to such an allocation if the City is willing to accept their proportional share of all potential liabilities that the District may be subject to prior to approval of the proposed detachment.

 

Liabilities

Subject to Board of Supervisors approval, the District may refund the current fiscal year Service Fee to those property owners who have utilized private dumpster service instead of the District’s service for an entire fiscal year.  In addition, the District may be liable for a part of the environmental cleanup activities at the Cal Compact Landfill.


Current Contract

The District’s current contract with Waste Management, Inc., expired on June 30, 2001.  However, due to the complexity of the detachment process, and to ensure continuity of service, the District negotiated an extension of the contract for one year.  The contract provides for an initial six-month period starting July 1, 2001, and thereafter, pending the outcome of the detachment process, on a quarterly basis through June 30, 2002.

 

The City Proposal

The City of Bell Gardens desires to administer garbage disposal services within its city limits.    This action was prompted due to longstanding and ongoing complaints from residents of inadequate services.

 

The city will issue a Request for Proposal (RFP) prior to awarding franchises for the provision of garbage disposal services.  The attached summary of the Specifications and Conditions will be included in the RFP.  Garbage-related services will occur on a weekly basis.  Delivery of services will commence on July 1, 2002, which is the day following the expiration of the Belvedere’s contract.

 

Bell Gardens proposes to assess landowners at a rate sufficient to provide the required services.  Pursuant to Government Code Section 56886(t), LAFCO may approve the detachment proposal on the condition that the fee previously authorized and levied by the Belvedere Garbage Disposal District is levied by the City.  Should the City need an increased rate in order to provide the required services it will have to comply with the requirements of Proposition 218. 

 

The City has requested that the detachment include a condition that the District releases the City from all liabilities and assessments of the District.

 

Conclusion

 

The County and District have agreed to transfer $215,036 in property tax revenue, and a portion of the tax increment to the City.

 

The District and the City have failed to reach an agreement regarding assets.  Staff therefore recommends the Commission to adopt the recommended action presented at the December 12, 2001 hearing.


Recommended Action

 

1.         Acting in its role as a responsible agency, with respect to the proposed detachment and under State CEQA Guidelines Section 15096, LAFCO certifies that it has independently considered and reached its own conclusions regarding the environmental effects of the project and the notice of exemption certified by the City of Bell Gardens, and has determined that the document adequately addresses the environmental impacts of the project.  LAFCO finds that it has complied with the requirements of CEQA with respect to the process for a responsible agency, and hereby adopts by reference the Notice of Exemption previously prepared by the City of Bell Gardens in connection with the certification of that document.

 

2.         Adopt resolution making determinations and approving the detachment of the entire City of Bell Gardens from the Belvedere Garbage Disposal District, subject to the following conditions:

           

a.       The fee previously authorized and levied by the Belvedere Garbage Disposal District shall be levied by the City of Bell Gardens.

b.      No assets of the District shall transfer to the City

c.       The City shall not be apportioned any liabilities of the District.

d.      The effective date of the detachment shall be July 1, 2002.

 

3.         Set February 27, 2002 for commission protest proceedings.


STAFF REPORT

 

JANUAARY 9, 2002

 

ANTELOPE VALLEY HOSPITAL DISTRICT

NON-PAYMENT OF 2001/2002 ASSESSMENT

 

AGENDA ITEM NO. 2

 

 

 

Background:

On November 28, 2001 the Executive officer reported on the non-payment of $53,176.00 by the Antelope Valley Hospital District (AVHD) as mandated by Government Code Section 56381(c). The executive Officer recommended legal proceedings be initiated to enforce payment.

 

Commissioner Madrid expressed concerns about the financial impact the legislative mandate would have on the hospital district. Commissioner Burke requested an explanation on the method of collecting non-payment from cities and districts. County counsel briefly discussed the process as set fort in the Government Code.

 

On motion of Commissioner Proo, unanimously carried the, the Executive Officer was authorized to request the Auditor-Controller to withhold the amount due LAFCO from those cities and districts that are delinquent in payment as provided for in the Government Code. 

 

Current Status:

The Auditor-Controller has determined that the AVHD does not receive any property tax allocation or direct assessment. The State Legislature has not adopted any legislation or policy to either clarify or deal with this issue. Other Special Districts have expressed concern over the possibility that they would have to cover AVHD’s “shortfall”. Therefore, in order to collect the $53,176.00 due, LAFCO has only the option of pursuing legal proceedings against the AVHD.

 

Staff Recommendation:

The AVHD receives $138,853.870.00 in revenue annually. The LAFCO assessment of $53,176.00 equals .0003% of the AVHD’s total revenue.

 

Staff  recommends the commission direct legal counsel to immediately begin legal proceedings against the AVHD in Superior Court to enforce payment of the $53,176.00 assessment due LAFCO .