May 14, 2001
Valley Study Foundation, Inc. 14622 Ventura Boulevard, Suite 201B Sherman Oaks, California 91403
(818) 501-5862 Fax (818) 501-6959 Web site: www.ValleyVote.org
Assisted by:
Rosenow Spevacek Group, Inc.
Economic and Planning Systems, Inc.
MNA Consulting
Best, Best & Krieger LLP
Introduction
The LAFCO Process
Founding Documents
Vision Statement
Reorganization Petition
Related Legislation
Reorganization Principles & Concepts
General Principles
A. Election, Governance, and Transition
B. Municipal Services
C. Proprietary Departments and Regional Services
D. Municipal Revenues
E. Assets and Liabilities
F. Personnel
G. Fiscal Mitigation (Revenue Neutrality)
Signatures
The Applicant wishes to express its appreciation to LAFCO, and LAFCO's consultants Public Financial Management (PFM), who were responsible for the preparation of the Initial Fiscal Analysis of the Special Reorganization of the San Fernando Valley. The Applicant also wishes to thank Mayor Riordan and other City of Los Angeles representatives, who were responsible for the City of Los Angeles providing the necessary data to LAFCO allowing LAFCO and its consultants to complete their work.
In accordance with the Seven Step Process adopted by LAFCO, this document represents the Applicant's Reorganization Plan which delineates general policy and direction to the LAFCO Staff and Commission. This document is prepared in response to the Initial Fiscal Analysis (IFA) which contains extensive data and financial analysis related to the reorganization and structure of the proposed new Valley City.
This document, prepared by the Applicant with the assistance of its consultant team, focuses on those items which were not addressed in the Initial Fiscal Analysis or where the Applicant requests that LAFCO to handle certain items in a different manner. This document, in conjunction with the LAFCO IFA, provides general information necessary for LAFCO, which after receiving input from the City of Los Angeles and the public through its hearing process will finalize the details that will be incorporated into the Comprehensive Fiscal Analysis (CFA). The CFA prepared by LAFCO will provide a detailed feasibility analysis of the new Valley City based upon a pro forma analysis of the proposed city's budget. The CFA also will clarify the municipal reorganization, and provide detailed answers on all the issues of importance to the voters including its effects upon existing entities, particularly the City of Los Angeles and new Valley City. to index
The Los Angeles Local Agency Formation Commission (LAFCO) outlined seven steps in its conception of the review process for the Special Reorganization of the City of Los Angeles portion of the San Fernando Valley:
1. Applicant Identifies Needs for Data Collection
2. LAFCO Prepares a Request for Information
3. Data Collection
4. Review and Analysis of Data (IFA)
5. Applicant Reorganization Proposal
6. City of Los Angeles Response to Applicant Proposal
7. Final Plan - Comprehensive Fiscal Analysis (CFA)
LAFCO completed Step 4, its review and analysis of data, and published a summary report titled the Initial Fiscal Analysis (IFA) in March 2001. The IFA was prepared by LAFCO's consultants, Public Financial Management (PFM). LAFCO has only allowed a 45-day period for review of the IFA and preparation of the Applicant's proposal (Step 5). While this is a very short time frame to evaluate the IFA, given the complexities involved, it is understood that this expedited review period is necessary to remain on the overall schedule as established by LAFCO.
The Applicant's response to the IFA, as agreed with LAFCO staff and its consultants, is in the form of proposed amendments to the IFA dated March 28, 2001, which is incorporated by reference herein. In addition to serving as Applicant’s formal proposed Plan Document ("Plan"), these amendments are offered to assist in the preparation of the CFA, the formal review of the feasibility of a new Valley City in the San Fernando Valley portion of the City of Los Angeles, and completion of the seven step process. Normally, an incorporation petition provides adequate project definition for analysis; where lacking, LAFCO staff provides necessary detailing and project alternatives. However, the scale and complexity of the San Fernando Valley reorganization effort requires additional specification beyond that provided in the Petition, and the LAFCO Seven Step Process allows the Applicants the opportunity to provide direction for the CFA.
Applicants request that, except as otherwise more specifically provided herein, existing services, facilities, processes, procedures, and other municipal features of the City of Los Angeles on March 28, 2001, (the date of the IFA) be deemed to be part and parcel of the Plan, without the need for further specification.
This Proposal, therefore, provides a range of background and specification on the IFA, which is intended as a basis for the Plan and CFA. The founding documents are recited for reference purposes. This is followed by a discussion of municipal reorganization principles and concepts. These principles reflect the founding documents and other guidance provided by the Applicant, in combination with the experience and judgment of the Consultant Team.
The principles, in due time, can be converted to specific terms to be applied to the proposed reorganization, and to reflect the results of the CFA analysis. This structure allows increasing specification needed for analytical purposes in the CFA while maintaining focus upon fundamental principles and reserving options where necessary. to index
The quest for the San Fernando Valley's municipal self-determination began many years ago. The most recent reorganization effort began in 1996 with the formation of Valley VOTE, which has led various community organizing efforts including the successful petition drive and special State legislation which has clarified how the reorganization effort can proceed. Valley VOTE is a coalition of nearly every community homeowner association and business organization within the City of Los Angeles portion of the San Fernando Valley. to index
The Applicant, The Valley Study Foundation, Inc., prepared and submitted to LAFCO Applicant's Initial Identification of Needs for Data in June 1999 and Applicant's Preliminary Vision Statement in May 2000 at the request of LAFCO to provide possible models for the new municipality, for the purpose of LAFCO's study process. The Preliminary Vision Statement broadly addressed such issues as government structure, municipal services, assets and liabilities, employees, and independent and proprietary departments.
The Vision Statement was prepared without the benefit of specific critical information that was subsequently developed by LAFCO as a result of Steps two, three, and four of the LAFCO Study Process, and which will continue to be refined. The current proposal builds upon the principles and concepts expressed in the Vision Statement, considering the information provided by the IFA, as well as further evaluation of specific issues. to index
Residents of the San Fernando Valley have submitted a petition, pursuant to Part 3, Division 3, Title 5 of the California Government Code for reorganizing Los Angeles into two cities. This substantial effort, involving obtaining signatures from over 131,771 registered voters, was pursued because the residents of the San Fernando Valley seek the following long-term results from their local government:
1. Greater local control over local neighborhoods and decisions affecting their quality of life,
2. Improved basic services,
3. Lower taxes and fees,
4. Safe and clean neighborhoods,
5. Short, medium, and long term planning based on the public's priorities,
6. A business environment that encourages new businesses, seeks to retain existing businesses, and seeks to create new quality jobs,
7. Equal opportunity and fair representation for all residents,
8. Equity in the distribution of services and representation, and,
9. Government that is accessible, accountable, and responsive. to index
The following legislation governs the Special Reorganization process:
Cortese-Knox Local Government Reorganization Act Of 1985 – Established California’s Local Agency Formation Commission in each County (LAFCO), defines their powers and defines the process by which changes in organization are analyzed and reviewed. to index
AB62, McClintock-Hertzberg - An act that amended Section 57079 of, and added Sections 56075.5, 56656, 56844.2, 57103.1, 57132.5, and 57176.1 to, the Government Code, relating to local government organization. Under the Cortese-Knox Local Government Reorganization Act of 1985, if the proposed change of organization is a city detachment, the conducting authority, not more than 30 days after its hearing on the matter, may by resolution terminate detachment proceedings. If a proposed reorganization includes the detachment of territory from any city, the conducting authority, not more than 30 days after the hearing, is required to terminate the proceeding if a resolution or written protest against the reorganization is filed prior to the conclusion of the hearing by any city from which territory would be detached or removed.
AB62 provides that the above provisions will not apply to a special reorganization, as defined. It would specify the election requirements for a special reorganization, as well as the duties of the conducting authority with respect to a special reorganization.
This bill additionally provides that in the case of a special reorganization, all public employees subject to specified provisions of existing law relating to employee organizations will continue to be deemed public employees of the original local agency, or the newly incorporated local agency for purposes of that existing law, and that existing retiree benefits will not be diminished. The bill would also extend the exclusive representation status of an employee organization that has been recognized as the exclusive representative of local agency public employees affected by a special reorganization, with respect to the unit employees of the original local agency, or the newly incorporated local agency. to index
AB185 Hertzberg - An act that added Section 56852.7 to the Government Code, relating to local government reorganization. This bill requires that, if a commission approves a proposal for a special reorganization that includes the incorporation of a city with a population of more than 1,000,000, the resolution shall specify that the legislative body of the city shall consist of an even number of members, with at least twelve (12) elected by districts. It also would require the commission to establish initial boundaries for those districts and to specify in the resolution that the mayor, who shall be a voting member of the council, shall be elected on a citywide basis. (Sept. 27, 2000) to index
SB1375 Alarcon - An act amended Sections 33214, 33215, 33216, and 33353.2 of, and added Section 33214.5 to, the Health and Safety Code, relating to redevelopment. This bill provides that the territorial jurisdiction of the redevelopment agency of a city over a project area within territory subsequently annexed to another city or included within the boundaries of a new city remains with the city redevelopment agency unless the territorial jurisdiction is transferred to the redevelopment agency of the other city pursuant to the specified procedures described above. The bill would revise those procedures to include transfers of territory from city redevelopment agencies to redevelopment agencies of other cities. The bill also would apply those procedures to redevelopment projects in disaster areas. The bill would make a related change in the definition of the term "affected taxing entity." (Sept. 24, 2000) to index
REORGANIZATION PRINCIPLES & CONCEPTS
The reorganization principles outlined below provide the broad objectives that Applicant believes should guide the Special Reorganization effort. The principles are organized into general categories: A) election, governance and transition; B) municipal services; C) regional services; D) municipal revenues; E) assets and liabilities; F) personnel; and G) fiscal mitigation (revenue neutrality). These principles are derived from the Petition and include broader "good governance" principles derived from other reorganization efforts, which are applicable here, in the opinion of the Consultant Team. A series of "concepts" are outlined below each principle to provide better definition and quantification in the CFA. to index