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HomeMy WebLinkAboutStaff Report 13 06/18/2001 tea Lc o (l1 ��- c! • R f . Government Code Section 56700.1 requires expenditures for political•purpose's related to • a change of organization or reorganization proposal that has been submitted to the Commission and contributions in support or opposition to those measures, shall be disclosed and.reported in the same manner as'for local,initiative measures to be presented to the:voters. It is important to note that since local initiative disclosures are not presently filed'with LAFCO, the information concerning LAFCO proposals would also, bypass the Commission's inspection unless there are specific.LAFCO policies requiring such filings. The filing requirements are currently expressed in the Political Reform Actof 1974, 81000 et seq. and responsibility of the Fair Political Practices Commission:(FFPC). The rules and requirements regarding:committeescformedito support or oppose state and local (and now, LAFCO) ballot measures are contained in FPPC Information Manual D and the 2000 Addendum to the manual. If the Commission approves the policy, LAFCO application forms will be revised to reflect the new disclosure requirements. Copies of any filings of any contribution/expenditure reports required by Section 56700.1 shall be also be filed-with LAFCO. RECOMMENDATION: • Staff recommends that theCommissionapprove the amendment to its Rules of Procedure to: 1 . Require the disclosure ofexpenditures:for political purposes'related'to a change of • organization or reorganization proposal that has been submittedi.to4thi e Commission and contributions in support of oropposition to those measures.A copy of filings of any contribution/expenditurereports required by Section 56700.1 shall also b'e filed with LAFCO;'and 2. Direct staff to include a staternent of the new mandatory requirements of .56700.1 'in the LAFCO application.forni. n Attachment "A" • Rules of Procedure No. 35 Expenditures and Contributions in Support of orin Opposition to an Organization or Reorganization. Statement will also be attached to..LAFCO application "Pursuant to Government Code Sections 56700.1 and 81'000 et seq.,and Sonoma Local Agency Formation Commission Rules of Procedure, any person or combination of persons who directly or indirectly contribute $1000 or more or expend $1000 or more in support of or in opposition to a change of organization or reorganization that has been submitted to the Commission and will require an election must comply with the reporting and disclosure requirements of the Political Reform Act of 1974. and the:Sonoma'Local Agency Formation Commission. These requirements contain provisions for making disclosures at specified intervals. A copy of filing of any contribution/expenditure as required by Section 56700.1 shat! also be filed with the LAFCC." • • • 3 • • Resolution No. 575 Administration Drive Santa Rosa, CA 95403 May 2, 2001 RESOLUTION OF THE SONOMA,LOCAL AGENCY FORMATION.COMMISSION AMENDING ITS RULES OF PROCEDURE ADDING SECTION 35:EXPENDITURES.AND CONTRIBUTIONS IN SUPPORT'OF'OR IN OPPOSITION TO AN ORGANIZATION OR REORGANIZATION WHEREAS, a public hearing was held on May 2, 2001 in compliance with Government Code Section 56300(b) to consider the adoption of p policies and P procedures for the disclosure of contributions and> expenditures en"ditures in support of and opposition to proposals before Sonoma LAFCO; and WHEREAS, this Commission hereby determines that the public would benefit from the disclosure of funds raised and expended by persons to support and oppose applications for reorganizations and changes of organization under review by this Commission pursuant to the Cortese-Knox Hertzberg Local Government Reorganization Act' of 2000. The'Commission also determines that these disclosures_can occur in a manner that does not infringe on the rights of citizens to petition their governments. NOW, THEREFORE BE IT RESOLVED, that the Sonoma Local Agency Formation Commission hereby adopts the policies and procedures as contained in Exhibit A, Policies ana,. Procedures for the Disclosure of Contributions and Expenditures in Support of and Opposition to Proposals. ' The foregoing ,resolution was introduced at a regular meeting of this Local Agency Formation Commission on'the second day of May, 2001, and ordered adopted by the following'vote: Commissioners: Condron: Thompson: Smith: Massey: Brunton: Boyett: Cale: Ayes: Noes: Absent or not doting: WHEREUPON, the Chairman declared the foregoing resolution adopted'and SO ORDERED ATTEST: Steven J. Sharpe; Executive Officer The within instrument is a correct copy of the original on file in this office. ATTEST: •' BY: Clerk • • ••0110 Iillh L° a 0 ?E 1 EL APR g 0 2001 ` • . LOCAL AGENCY FORMATION COMMISSION 575 ADMINISTRATION DRIVE,ROOM 104A, SANTA.ROSA, CA 95403 CITY MANAGER (707) 527-2577 FAX (707)'527-3778 STEVEN J.SHARPE MICHAEL J.CALE Assistant Executive Officer Chairman en � r j May 2, 2001 ,0 Li n c orTh a ion TO: LAFCO Commission • FROM: Steven J. Sharpe, Executive Officer SUBJECT: Proposed LAFCO 2001-2002 Budget Background The purpose of this memorandum is to describe the proposed Sonoma LAFCO budget ,. and fee increases for the fiscal year (FY) 01-02 for approval by the Commission. Beginning FY 01-02,.in,accordance with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. LAFCO must approve its own budget. The Commission must annually, after public hearing, adopt a proposed budget by May I and a.final budget by June 15, of each year. The budget-must be at least equal to the • budget adopted for the previbUs fiscal year unless the commission finds that reduced staffing or program costs will still allow- the LAFCO to fulfill the purposes and requirements of the Act. The proposed budget is attached.'In preparation for this hearing, the proposed budget was sent to all cities and independent special districts in the County. The County, the cities and independent_ special districts will share LAFCO funding, each paving 1/3 of the cost-not covered by user fees;and other revenues. Previously, the County funded LAFCO's,budget. Each city's and district's funding allocation is determined by annual revenues reported to the State Controller. The County Auditor , will prepare and send bills to Board of Supervisors, cities and districts after July 1 for their share of LAFCO costs. At the end of the fiscal year, if the Cos* ission.finds that it has a fund balance, it may retain those'funds'to offset costs in the following fiscal year's budget. If during the fiscal year, the Commission does not have sufficient funds to operate, the Board of Supervisors may loan the Commission funds and recover those funds in the Commission's budget for the following fiscal year The Commission contracts with the County, by Memorandum of Understanding (MOU) for facilities, equipment.and staffing. Also, by the MOU, County Counsel provides legal services. The MOU expires at the end of this FY (6/30/01). The. LAFCO budget is contained in a special.fund. . • For FY 01-02, LAFCO proposes to continue its MOU with the County for 3 part-time employees in the County Administrator's Office. Total FTEs are 1.15 consisting of .1.5 • F"IE.AdministrativeAnalyst III (Executive Officer); .5 FTE Administrative.Analyst II • (Assistant Executive Officer) and..5'FTE Secretary. By the MOU, the County Counsel will provide legal services. LAFCO will also continue to contract with the County for facilities, including offices and meeting Mom, and equipment. Summary of Significant Changes Expenditures for FY 01702 are projected to be„$180,223 representing a 10.1% increase from FY 00-01. Revenues generated from application filing fees are estimated to be $32,000, an increase of 3.6°/0 from FY 00-01. FINANCING/REVENUES Cost Distribution FY_00=01 FY 01-02. % Change County Share 132,832 49,408 (62.8) Cities Share 0 49,408 100.0 Districts;Share 0 44,407 100:0 User Fees' - 30,900 32,000 3.6 Other Revs. 0 0 0 Total Financing/Revenues .163.732 . 180.223 .10'.1 Revenue projections include a 4% COLA filing fee increase. Revenue projections • assume that the following mix of proposals will be submitted in FY 01-02: 20 applications including 5 complex reorganizations,2 district fo Lu.auons, 2 sphere of influence adoptions, and 5 sphere:of'inftuence amendments. Revenues do not reflect proposals for the consolidation of fire protection districts as the commission supports such proposals by waving filing fees. EXPENDITURES Category FY•00-0. FY 01=02 % Change. Salaries and Benefits 117,704 91,697 (22:0) Services and Supplies 46,028 88,526 92.0- Total.Expenditures , 1 63.732 180.223 9_0 E.xpendittires are divided into 2 categories: Salaries:andBenefits and Services and Supplies'. Salaries and Benefits represents a decrease of$26,007 (28%) primarily due to reduced staffing from FY” 00-01. .Services and Supplies are;increasing$42,498 (92%) primarily'as,a result of County costs associated with facilities, equipment, County Auditor services, employee.recnhitrnent ana legal support. The County Auditor is projectinga $15,000 cost for the billing-and collection process in FY 01-02. Legal costs are projected to be $30,000. Reductions are anticipated next+year as some of these costs are for start-up and policy development associated with the"new law, Other County-support'„including costs.for once space, equipment, records management, • energy, building maintenance, computer maintenance and personnel services total $11,307. 2 • RECOMMENDATION The Commission is required to conduct a public hearing on the-proposed and final budget. After its hearing, staff recommends that the Commission adopt the proposed LAFCO budget for FY 2001=02, including COLA.fee increases, and direct preparation of the final budget. The final.budget will be presented to the Commission,on June 6, 2001. Attachments • • • • • 3 • BUDGET SUMMARY Local Agency Formation Con•imissioin E ecutive Officer:Steven Sharpe Index: 768018 Special.Fund: 8 000 8000 A. Program Description: The Local Agency Formation Commission (LkF.CO) is an independent agency established by Sane raw. Toe Commission is•responsible for re rewires, approving, or disarproving changes in organmzatioii co cities and special districts including annexations, detachments: r"orrnanons and incorporations. The se ven member°commission is composed of representatives from the City Councils, the Board'of=Supervisors; independent special districts ana me public. The Comr.,ission contacts with the County, by Memorandum of,Una -standing (MO ) or facilities, equipment and;sca rmm. By the MOLD, County Counserprovides !egalservices. Toe LA.FCObudge:is contained in a special_und B. Financial Summary: F?■ aNCIAL SUMM:.RY TOTAL 7'C"OND117RFS NET COSTRUF OF FTINDBAT ANCE FY 00.01 FY 01-01 m;, FY 00-01 FY 01-02 °^ Blade°7 Divisions?und Adored Recommended C rae A donted- Recommended Change L.;.FCO -General Fund 163;72 0 100.0 1"2.8;2` 0 100.0 LA CO -Special-Fund .0 1R0,,-; 100.0 0 0 100.0- TOTAL FINANCLAL 153532 130223 10:1 132,832 0 (100.0) C. Cost•Distribution • SOURCS,5 0F'FINANCING - 7-"v on-n1 FY O C '0/ z n:-02 Cost Dis'r.'-.0*-ion 'Adopted Recommended Change County Share 132,832 44,408 (62;8) City Share 0 44,408 100:0 Indioendent District Share 0 44.407 100:0 Gser"Fee 30:900 32,000 3.6 , Other Revenues. 0 0 0.0 TOTAL FINANCLC 163,732 180,223 10.1 ...,. D. Summary of Positions: STAY-TING SUMMARY FY 00-0i FY 01-0 °A . Sta.-ft-inn Adopted Recommended. Chance Permanent Pbsition• 2:00 1.15 (42.3) Extra Help 0.00 0.00 0.0 Overtime 0.00 0.00 0.0 TOTAL'POSITIONS .2.00 1.15 (42.5) 1 • • E. Workload WORICL O kD SUMMARY • • FY 00-01 FY 01 02 . %Change 4 pared ommended`c • c^nrr Adnnted Proposals;(Total) . 20 20 0.0 Formations 3 2 0.0 . Sphere Adoptions .2 2 0.0 Sphere Amendments 5 5 0.0 Complex Proposals 5 5 0.0 . F. Summary of Significant Changes • Beginning FY 01-02, in accordance with the Cortese-Knox-Eertzberg Local'Go3e nrnent Reorganization Act of 2000, LA=CO must approve its own budget The Commission must annually adopt a pronosed,budget by May in and a final budget by June 15, of each year. The budget must be atleasrequal to the budget adopted for the-.previous fiscal-year unless the commission finds that reduced staffing or program costs will sail allow the LkF C0 to fulfillthe nuctoses:and';eouirements of the Act. • The County, the tides and independent Special district 'will share LAFCO rending, each paying 113 of the cost not covered by user fees and other revenues. Each city's and,e ssicr's fencing allocation is determined by annual revenues reposed to the sate controller. The county auditor will prepare andsend bilk to Board'of'Simerfators, cities and districts after July i for their share of LAFCO costs. At the end of the fiscal year, if the Commission finds that it has a fund balance;:it'-may retain those funds to offset costs it the following fiscal year's budget. If during the. fiscal year the Commission does not have sufficient funds to operate, 'te Board of supervisors may loan the Commission funds and recover those funds i i the Commission's i '_budget for the following fiscal year. • For FY 01-02 LAFCO proposes to continue its MOU with the'County for 3 parttime employees in the County Administacor's Office. Total FTEs. are 1.15 consisting g of - t ?:Administrative AralvstLi (Executive Officer): n F?E Adminisrate Analyst U (Assistant Executive Officer) and E Secretary By to MOU. the County Counsel will provide legal services _ rCCwiil also contnue to contact with the County for facilities, including offices and meetirs_room, and equipment. • Expenditures for FY 01-02 are projected to be 5180. •: representing an 10:'1%-increase from FY 00-01. Revenues generated from application filing fees are estmaatea to be 5132,000 an increase of 3%Mom FY 00-01. • • Expenditures are divided into 2 categories: Salaries and Benefits and Services and Supplies. Salaries and Benefits represetts a decrease of 526,007(28%)primarily due to reduced staffing Mom FY 00-01: Services and Supplies are increasing S-C d08 rc %) primarily as a result of County cost&assoc:i:.d with facilities, equipment, County .Auditor ter ices, employee reciiinnet. and legal support. The County Auditor is,proie_dng•a 515,000 cost for the'otu1ng and.collection process in FY 01-02. Legal co_ are projected to be 530.000. Reductions are anticipated nem year as som°.of these costs are for star up and policy development associated:wittt the new-law. • Revenue projections include a 4%COLA furs fee increase.Revenue projections assume that the following mix of proposals will be stomped in FY 01-02: 20 applications including 5 coroie\.r or:anizations, 2 "ascict formations. 2 sphere of in=:-_ence adoptions, and 5 sphere of influence amendmertts. Revenues do not reflect proposals for the consolidation of fire protection districts as the conniiission supports.such proposals by waving filing fees. . • . . ORGANIZATIONAL CHART SONOMA LOCAL AGENCY FORMATION CONEVIISSION • . . • SONOlviA LOCAL AGENCY FORMATIONOOMIvIISSI01•1 (LAFCO) ECCUTIYE• OFFICER • Analyst (.15 F 1.E.) • • ASSIST.A1.7. EXECUTTIVE OFFICER. Ad/nuns-calve Analyst L (.) ) CC)IvEvES,SION CLERIKJLAFC0 SECRETARY (.5,F • . . • • . . • • • FY 01-02 LAFCO Proposed Budget • Dept_70 Div. 88 pecticjT01 • Olridey.788018 Fund 50008000 FY 01-02 Total 'Increasel(De Sub-object Title FY•00-01 Budget Budget Request crease) 5100 Positions $77,397 561.552 ($15,845) -20% 5130 Commissioners $6,079 • 55,079 , $0 0% • 5210 Retirement 511.579 57,785 (53,894) -33% 5220 FICA 57,753 • S5G74 (32,679) -35% 5300 Health Ins 511,296 _ 57,504 .(53,792) ,-34% 5310 Disabl. 51.235 - 5666 (3570) -46% • 5320 Dental • 51,190 $792 '. (5398) -33% .-e Ins 5275 545 (5233) -54% . 5340 Vision Ins. 5406 5229 (5177) 44% 5400 Wk Comp 31.375 51,971 3593 43% ,. 5907 Salary Savings (5988) SD 5988 -100% TOTAL SAL&BEN $117,704 591,697 (525,007) -22% . 6040 Communicadons • 51.250 Si 250 50 0% • 6103 Liability Ins: 5135- .569 ' • (366) 49% 61 0 Maintenance 550 350 $0 • 0% 6280 Memberships 8650 I 31,300 $650 . 100% . 6400 Office sxcerse.s 55';500 _6,500. SO 0% 6410 Postage . 950: 31,500. 5550 58% 6430 Printing Services • 8250• 5500 5250 100% 6500 Professional Services 531,093 815,000 (316,093) . -52% 6521 County Services • 30 311.307 511,307 0% 6630 Caunty•AuditorServic. 50 31'5',000 315,000 0% 6642 Legal Counsel 50 330.000 530,000 0% 6600 Legal Noticing 31.100 51,100 50 0% .. 7301 County Car 3100 5200 3100 100% 7302 ravel - 52.200. 34.000 5800 25% 7303 Private Car . 3750 3750 $0 0% '.. • TOTAL SERV:AND SUPP, 846.328 338,526 -842,498 92% TOTAL EXPENDITURES 5163,732 5160,223 $16,491 . 10% 3141 Fee.Revenues 530.900 532,000 $1,100 3% 2901, County 3132.532 349,408 - (383,424) -169% 2910 Cities SO 349,408 349,408 100% 2930 District SO 549,407 349,437 100% TOTAL REVENUES. 51E2,732 5180.223 • 516,491 9% • ''NET COST $0 $0 • 50 0% • ,� RECE1 Ff ��s, Di d�I �� ''C�� MAY 0 9 2U01 i •, • LOCAL AGENCY'FORMATION COMMISSION CITY MANAGER I 575'ADMINISTRAflON DRIVE.ROOM 104A,'.SANTA ROSA. CA 95403 (707) 565-2577 FAX1707) 565-3778 STEVEN J.SHARPE MICHAEL J.CALE Executive Officer Cncirrnen DATE: May 3, 2001 L OuE Cj OrinTO: All Cities and Special Districts 1.0 FROM: Steve Sharpe,Executive Officer RE: LAFCO The Local Agency Formation Commission;(LAFCO) requests your input regarding its future operations. As you are aware, the Cortese-Knot-Herzberg Government Reorcanizatioh Act of 2000 (Government Code Section 56000 et seq.) revises LAFCO operations. Four provisions of the Cortese-Knox-Hertzberg Act affect the operations of LAFCOs regarding g funding, staffing and',rapiiities. Ac.^ordingao the Act, these provisions are intended to make the Commission neutral and indecendent'by requiring: 1. Commission appointment of executive officer and&ccunsel. 2. Commission determination for office space, equipment and personnel. 3. County, cities and independent specal district cost sharing of LAFCO budget. 4. Commission approves its own budget. LAFCO currently.conducts its operations according to a Memorandum of Understanding (MOU) with the County providing the following: 1. The County Administrators Office provides LAFCO professional and clerical staffing. Steve Sharpe is the Executive Officer and provides management and administrative support to the Commission. A pan-time Assistant Executive Officer and Secretary are being recruited for the day-to-day operations of the Commission. 2. The County Administrator's Office provides sciities and eguicment for the LAFCO function. 3. The County Counsel's Office provides•legai services to the Commission and its staff. , The Commission requested.that staf analyze alternative staffing and facility plans for FY 2001-02. The analysis includes the preliminary costs and feasibility of county dependent and independent staffing and. eclitie LAFCO star- has collected some general inform:C':n regarding ,-crioc and costs. The Commission. is requesting additional input in order tc decide Whether to pursue additional study to establish an.independent LAFCO. The following is a, summary of information obtained from CALAFCO (California Association of LAFCOs) and another local- governmental agency: the Sonoma County Transportation Authority (SCTA). SCTA staffing and operational needs are similar to L=FCO's.. The SCTA relocated its operations independent from the Sonoma County Permit and Resources Department in 1999. Staffing At a minimum the Cortese-Knox-Hertzberg Act requires that LAFCOs actively appoint their staff rather than relying on the default that the County.provide staffing.The Act describes alternatives including: IP • Contracting with the County for executive officer, legal counsel, other staff and facilities. • Employ staff paid directly by the commission who may be housed in private offices leased by the • commission or in offices rented from the county or some other public agency. • Contracting with an independent firm for executive officer, legal counsel or both. Staffing needs, budget constraints, local politics and other conditions will determine'what;works best for each LAFCO. Here are 4 examples: 1. San:Mateo LAFCO has a:contractwith the County for County staff servicesto`LAFCO. 2. Orange LAFCO has a contract between the ,County' and "LAFCO defining LAFCO employee 3. El Dorado LAFCO has a contract with employee,,utilizing County Personnel Policies. 4. Santa'Berbara LAFCO utilizes an independent consultantfor its staffing. Staffing plans should consider the workload impacts of the Cortese-Knox-Hertzberg. Act. Some requirements may require a :significant_:amount orstaff time, to implement new policies, design new procedures and then to maintain those polices and orocecures. In any case, LAFCOs that hire• independent staff will also need to establish personnel pcliciesand job descriptions forthose;ipositions. Facilities,.Equipment and Supplies Now that LAFCO's are considered autonomous agencies, many LAFCO's are deliberating remaining in County office space or moving to private office space. There are several advantages and disadvantages or either option. While there is n6Tight answer. there' are several factors that need to be evaluated including cost, convenience for stair and customers. The following_ table describes these. Option . Potential Advantages Potential Disadvantages F ;Notes_', • Remain in or move T: Quick, convenient access o '1".. Perceived Influence by Ealuate:'cost • • into County,Offices network of county county on LAFCO comparisons departments.. opera ons and staff (County may be ,. 2. Possible savings in rent recommendations. more costly.) office:equipment by snare 2. Facilities and services may • County could with County departments. be:inadequate. refuse housing. 3. No additional efforfto move, 3. Countybuiiding policies;and • Evaluation of if already in place. closures. future.orfce 4. Easier one stop'for 4. Dependent upon space needs customers. cooperation and goodwill of • • snouldiinclude 6. Full.buildine services in :lace County. consideration of. _ as.a package deal. additional staff. if they will be ,.. necessary.• Don't assume county will charge former • • A-87 cost amounts. Remain in or .6. More clearly oistinguisne Potentials for additional, Evaluate cost Relocate off-site LAFCO as am autonomous costs necessary to maintain comparisons, private offices agency. separate offices and County-may not 7. Custom facilities to needs. - equipment. be less and/or 8. Administration of rent, and 6. Possible cost surprises. may not be,cost business services: 7. Physical separation(frorn effective for County (services, meeting actual space spaces', etc.). and services' • • needs. • LAFCO office location may not • be priority for County. Projected FY 2001-02 costs for use of::existing space in the County Administrator's Office including space and equipment used as well as overhead for use of conference and meeting rooms is approximately $11.300: Additional costs will include other county departmental services including PRMD, County Auditor, • Information Systems Department and County Counsel. An extraordinary cost will be for the Auditor who will have to deterrriine and bill agencies for LAFCO funding. The Auditor is projecting a $15,000 cost for FY 2001-02. Counsel isprojectincaa cost for FY 2001-02 of$30.000 due to policy development associated with new laws and 2 ccmplexdistrictformations. Reductions may occur in the following fiscal year. As of spring of this year, costs for leasing private office space will range from.about $1.65 to 31.70 per square foot according to the County real estate manager, These figures are based on local rental rates and on a proposal completed. recently for relocation of the Sonoma County Transportation Authority (SCTA). Space and equipment needs for LAFCO may be similar. The SCTA is staffed with 3 people and has leased approximately 1000 square feet in downtown Santa Rosa. Annual rent is approximately 320,000-325,000 per year. Additional "one-time" costs would be necessary for tenant improvements, furnishings, and equipment and moving expenses. These costs could vary substantially. The SCTA's "one-time" costs range.from $7,500 to $21,000 dependent on levels of improvements. In addition to staffing costs, LAFCO would contract for counsel, auditing and accounting services. The attached questionnaire':will assist the Commission in determining its future structure and function. Please complete it and return to me before June 1, 2001. c: LAFCO Commissioners . • . • 410 . "0 nip,r--j o Lo oil LOCAL AGENCY,,FORMATION •COMMISSION • 575 ADMINISTRATION DRIVE.,ROOM 104A,SANTA'ROSA, CA 95403 (707) 565-2577 FAX)707) 565-3778 STEVEN,J.'SHARPE' MICHAEL J.CALF Executive Officer Chctrmcn LOCAL AGENCY FORLvLATION CONLNESSION•(LAFCOy QUESTIONNAIRE 1. Does your-agency support continued use'of County staffng, counsel and facilities for the Sonoma LAFCO.function? Yes No • 2. Does your agency support independent staffing, counsel and facilities for the-Sonoma LAFCO function? Yes No • • Signature of authorized agency representative: Title Name of city or district responding: • •