CHAPTER III. POLICIES AND PROCEDURES FOR THE EVALUATION OF PROPOSALS


Section 1. General Policies & Standards
  1. Agency Consolidation Policy

    It is the intent of LAFCO to encourage the rationalization of local government organization through the elimination or consolidation of small, single purpose special districts. Wherever the full range of urban services is required, general-purpose governments are preferred to special districts for the provision of services.

    It is the intent of LAFCO to strengthen the role of city governments in the provision of urban services. In the city-centered corridor of Marin County as designated in the Marin Countywide Plan, general-purpose governments are preferred over special districts for the provision of services. Where provision of a service by a general purpose local government is not practical, LAFCO favors the consolidation or reorganization of small, single purpose special districts when such consolidation can be shown to reduce aggregate costs of service and/or improve local government accountability.

    LAFCO discourages the proliferation of local governmental agencies and the existence of overlapping public service responsibilities. LAFCO discourages the formation of new special districts where service can be provided by existing local government agencies.

  2. Agricultural Lands Policies

    1. Land which is currently engaged in the substantial production of food, fiber, or livestock, or is identified as agricultural land under Williamson Act contract shall not be annexed to a city or a sanitary sewer agency for the purpose of promoting urban development. (Originally Adopted: July 13, 1977; Revised: January 13, 1983)

    2. Development of existing vacant or non-prime agricultural lands for urban uses within a city's and/or special district's jurisdiction or within a city's and/or special district's sphere of influence should be encouraged before any proposal is approved which would allow for or lead to the development of existing agricultural or open-space lands for nonagricultural or non open-space uses which are outside of the city's and/or special district's jurisdiction or outside of a city's and/or special district's sphere of influence. (Adopted July 13, 1977)

  3. Prezoning Policy

    As required by State Law, applicants whose proposals include annexation to a city shall obtain prezoning approval from the city prior to submitting the annexation application to the Local Agency Formation Commission for consideration. The city shall be lead agency for environmental review in such cases, and proof of environmental documentation and certification shall accompany the application. (§56375.3)

  4. County Service Area (CSA) Policy

    A County Service Area may be formed when unincorporated areas that are located outside municipal sphere-of-influence boundaries desire extended urban-type services including police and fire protection from the County of Marin.

    Unincorporated lands located within a municipal sphere-of-influence boundary should not be eligible to receive extended urban-type services from the county in the form of a County Service Area except when (a) evaluation on a case-by-case basis justifies creation and (b) the affected city, by letter, expresses approval of such action. (Originally Adopted: July 13, 1977; Revised: January 13, 1983)

  5. Outside Service Agreement Policy

    As specified in Government Code § 56133, cities and special districts seeking to extend services to areas outside their jurisdiction shall apply to LAFCO for approval. LAFCO may approve such agreements for areas within the applying agency's sphere of influence in anticipation of eventual annexation to that agency. Approval may be granted for such agreements outside the agency's sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory.

    LAFCO approval is not required for service agreements between two public agencies where service has already been established.

    The Commission procedure for processing of applications for outside service agreements shall follow all steps required for changes of organization up to and including requests for reconsideration. Any approval granted by LAFCO for outside service agreements shall be complete at the expiration of time for requests for reconsideration.

  6. Dual Annexation Policy (As Approved by LAFCO on October 11, 2001)

    Annexations of unincorporated land to special districts that provide services necessary for urban development shall require concurrent or subsequent annexation to a city if the land is located within the city's sphere of influence. The Commission may, however, defer the requirement for annexation to the city if the Commission determines that each of the following conditions has been met:

    The purposes of this policy are to allow the Commission to:

    1. Legislative Authority

      Government Code §56844 and its subsections give LAFCO broad authority to add conditions to the approval of boundary changes:

      Any change of organization or reorganization may provide for, or be made subject to one or more of, the following terms and conditions.
      ...
      (o) The initiation, conduct, or completion of proceedings on a proposal made under, and pursuant to, this division.
      ...

      (v) Any other matters necessary or incidental to any of the terms and conditions specified in this section

    2. Policy Application

      The Dual Annexation Policy will be applied to annexations and reorganizations affecting property located within a city's sphere of influence. Implementation of this policy may be deferred at the discretion of the Commission through the use of an agreement between the city and the property owner providing for future annexation by the city. Approval of such boundary changes will comply with this policy upon execution of such an agreement.

    3. Procedure

      LAFCO staff shall provide written notice to affected agencies of the applicability of the Dual Annexation Policy with a request for agency comment on the proposal. Additional time (within timeframes specified in the Cortese-Knox-Hertzberg Act) will be extended for response by the affected city council if requested.

      Applicants may comply with the Dual Annexation Policy in one of two ways

      1. Filing application for a reorganization that includes annexation to both the special district and the city, or

      2. Filing application for district annexation only with a request for deferral of the Dual Annexation Policy. If the proposal is approved, the Commission may attach conditions providing for city annexation at a later date.

    4. Request for Delayed Implementation

      1. Applicants seeking delayed implementation of the policy shall make the request in writing at the time of application and state the reasons in support of the request.

      2. The applicant's request for deferral will be circulated to all affected agencies for comment for a minimum of 60 days. LAFCO staff will extend the comment period for an additional 30 days at the request of an affected agency.

      3. The Commission will give great weight to the comments of any affected agency objecting to the action.

      4. Applicants will retain the option of amending their proposal up to the issuance of the Certificate of Filing (scheduling a hearing before LAFCO) for the proposal.

Section 2. General Procedures for the Evaluation of Proposals

The following is a step-by-step guide to the procedures followed by LAFCO in evaluating proposed changes in local government boundaries and organization.

  1. Preliminary Steps

    LAFCO encourages a pre-application discussion between the proponent and LAFCO staff, which can save the prospective applicant substantial time once the process has begun. The following steps are suggested:

    1. Call the LAFCO office for an appointment.

    2. The applicant should bring the following information:

      1. A map of the property and affected area.

      2. General plan and zoning designations.

      3. Information on development plans, if applicable.

    3. LAFCO staff will review procedure, applicable spheres of influence, information requirements and processing fees, provide application forms, and determine environmental review requirements.

    4. Proponent prepares application for proposal. An application includes the following:

      1. An application on the form provided by LAFCO.

      2. A petition of landowners or registered voters making application OR a certified resolution of application. Note: The applicant must provide file a notice of intention to circulate a petition with the Executive Officer prior to collection of signatures.

      3. If submitted by petition, it is necessary to submit a copy with original signatures plus additional photocopies as specified on the application instructions. Signature requirements vary depending on the type of proposal; please consult LAFCO staff for details.

      4. A map and a metes and bounds description of the subject property which meet the requirements of the State Board of Equalization. LAFCO staff can provide examples.


    5. Copies of any environmental documents associated with the project.

    6. The following information, depending upon the type of proposal:

      1. If a proposal is submitted by resolution of a public agency, it must include a "plan for providing services" (§56653). The plan may follow the format provided by LAFCO.

      2. If the proposal includes annexation to a city, indication that the annexing city has prezoned the property, such as a copy of the city council resolution approving the prezoning. The resolution prezoning the territory shall specify that there will be no change in zoning for two years from the date annexation becomes effective.

      3. If the proposal is for the formation of a special district, the application should include a gplan for providing servicesh that gives the following information:

        • The statutory section under which the formation is proposed to occur.

        • A description of the services to be extended, accompanied by a justification.

        • The level and range of the proposed services.

        • The schedule for extending services.

        • A description of any new facilities or improvements to existing facilities proposed.

        • A description of any conditions which the new district would impose or require within its boundaries upon formation.

        • An explanation of how district services and facilities would be financed and an operating budget for the proposed district including estimates of revenues and expenditures.

        • The rationale for proposed boundaries and discussion of alternative boundaries if applicable.

    7. If the proposal includes incorporation of a new city, a comprehensive fiscal analysis which includes the following (§56833.1):

      1. A description of the local agencies which presently serve the community, with a discussion of the range and level of services currently provided.


      2. A description of services to be provided by the proposed city after incorporation, including the range and level of those services.

      3. The costs to the proposed city of providing public services and facilities during the three fiscal years following incorporation and the estimated revenues during the same period.
      4. The effects of the proposed incorporation on the adjacent communities and affected agencies, including the county.

      5. A rationale for the proposed boundaries and a discussion of possible boundary alternatives.

      The comprehensive fiscal analysis may be prepared by a qualified consultant for the proponents or under contract to LAFCO. If prepared by or under contract to LAFCO, the costs of the comprehensive analysis may be charged to the proponents. (§56383 and 56654)

    8. Processing fee per the schedule of process fees adopted by the Commission.

      1. Application Fee Refund Policy

        If an application is withdrawn by written request of the applicant before the item has been placed on the Commission's Agenda, the application fee, less:

        1. The estimated hourly cost for LAFCO staff time spent on the application, and

        2. The direct cost of processing the application (map and legal description review, notices, postage, copy service, and etc.), will be refunded.

      2. Fee Reduction Policy

        All fees are due with application submittal. The application will not be deemed complete for processing until the application fee is submitted. The Commission, upon majority vote, may reduce application fees for:

        1. Severe economic hardship cases and Commission determined matters of overriding public benefit.

        2. Renewed applications with current information, not previously denied, for which prior processing remains relevant to the renewed application.

        Fee reductions are not granted for the following reasons:

        1. Applications conditioned, denied, or previously denied.

        2. Misinformation provided in the application or by other public agencies, groups, or individuals.

        Prior to consideration by the Commission, a request for a fee reduction shall be submitted in writing to the LAFCO office using the 'Marin LAFCO Fee Reduction Request Form'. The request will be considered at the next regular meeting of the Commission.

    9. Applicants shall indemnify LAFCO against the costs of litigation arising from its actions on a requested boundary change or other application by signing an agreement containing the following language:

      As part of, and in consideration of, the granting, in whole or in part, of this application, the applicant and the real party in interest agree that they, and each of them, shall, upon the written request of the Commission, appear for and defend, indemnify and hold harmless the Marin County LAFCO, its agents, officers, employees, commissioners and their attorneys in and from any claim, action, appeal, or legal proceeding brought against them to set aside, attack, void, delay or annul all or any portion of the application (including actions approving a change of organization, sphere of influence amendment or extension of service by contract outside of local government boundaries or to certify environmental review documents under the California Environmental Quality Act related to such approvals.

      This obligation to appear for, defend, indemnify and hold harmless shall include, but not be limited to, all damages, costs, court- awarded fees and costs, expenses, attorneys fees (including any such fees incurred directly by the Commission itself) that may be asserted or incurred by any person or entity, including the applicant, arising out of or in connection with the approval of this application, whether or not there is concurrent passive or active negligence on the part of the Marin County Local Agency Formation Commission, its agents, officers, attorneys, or employees.
      The Commission shall have the reasonable right to insure that the attorneys selected by the applicant/real party are skilled and experienced in the areas of law involved in such action, appeal or proceeding and shall have the right to reject the selection of counsel by the applicant/real party of any counsel or attorneys who, in the opinion of Commission, lack such experience and expertise.

  2. Determination of Boundaries

    1. Definiteness and Certainty of Boundaries:

      Boundary descriptions accompanying proposals for changes of organization or boundaries of local agencies shall be definite and certain. If the descriptions accompanying the proposal are reported by the County Department of Public Works to be indefinite and uncertain, the Commission will direct the Executive Officer to withhold the filing of final documents until the proponent submits a revised boundary description which is certified by the County Department of Public Works as being definite and certain. If the Commission determines to approve a proposal conditioned upon boundary amendment, it shall request the County Department of Public Works to prepare a new boundary description.

    2. Boundaries Which Create Islands, Strips or Corridors:

      Boundaries should not be drawn so as to create an island, corridor, or strip either within the proposed territory or immediately adjacent to it. Where such an island, corridor or strip would be created, the proponent shall justify the reasons for nonconformance with this standard. (§56668)

    3. Streets and Highways

      Whenever practicable, boundary lines of areas proposed to be annexed to cities and/or districts shall be so located that all streets and rights-of-way will be placed within the same jurisdiction as the properties which abut thereon and/or for the benefit of which such streets and rights-of-way are intended. (§56668)

  3. Conformance with Political, Natural and Man Made Boundaries:

    To the greatest possible extent, boundaries should follow existing political boundaries, and natural or man made features such as streams, lakes, natural terrain, railroad tracks, and freeways. Where boundaries do not meet this standard, the proponent may be required to provide justification for the nonconformance to this standard. (§56668)

  4. Conformance with City or County General and Specific Plans:

    Proposals shall be consistent with the appropriate city or county general, specific or community plans. Where the proposal does not abide by these plans, the proponent shall specify the reasons for plan nonconformance. (§56668)

  5. Economic Feasibility of Proposed Formations

    When formation of a new agency is proposed, the proponents shall demonstrate the economic feasibility of the proposed formation, based on a specific fiscal analysis which identifies services provided by the proposed district and projects costs of services and needed facilities with available revenues.


Section 3. Application Staff Review

  1. Initial Factors

    When a proposal is submitted, staff takes the following steps within 30 days:

    1. Notice of Application -For Applications Submitted by Petition Only

      The proposal is placed on the Commission's agenda for information only. Sixty days must pass after the notice of application is on the Commission's agenda before the item can be presented to the Commission for a decision. (§56658)

      Affected agencies are sent referral information. The 60-day period after the notice of application allows time for cities losing territory and special districts gaining territory to adopt a resolution terminating proceedings if desired. (§56751/56857)

    2. Completeness of the Application

      After submittal, staff will review the proposal materials for completeness. If deemed complete, a Certificate of Filing is issued. If the proposal is determined not to be complete, the Executive Officer will transmit that determination to the applicant within 30 days specifying those parts of the application that are incomplete and the manner in which they can be made complete. (§56658(g/h))

    3. Certificate of Sufficiency

      Within 30 days after receiving a petition, LAFCO Staff will review the petition or request evaluation of the petition signatures by the County elections official. (§56706) The petition must have original signatures and each signature must be dated. All signatures must have been collected within 60 days of filing. Petitions by landowners must include a written description sufficient to identify the location of the land owned by each person signing the petition. (§56704-5)

      If the petition is determined sufficient, the Executive Officer will prepare and distribute to the proponents a Certificate of Sufficiency indicating the signatures received and the requisite number of signers. If the petition is determined to be insufficient, the Executive Officer will give notice by certified mail to the proponents. Within 15 days after the notice of insufficiency, a supplemental petition may be filed with the Executive Officer. Within 10 days after the date of filing a supplemental petition, the Executive Officer will examine the supplemental petition and certify in writing the results of that examination. (§56706)

    4. Consent of Property Owners

      If all of the owners of land within the affected territory have given their written consent to the change or organization or reorganization, the application may proceed without public notice.

    5. Application Referral/Requests for Information

      The proposal shall be distributed to all affected agencies as a notice of filing as well as a request for information and comment. Affected agencies must respond to LAFCO within 10 days with any comments the agency may have regarding the application. (§56663(b))

  2. Filing of the Application

    When an application is accepted for filing, the Executive Officer will issue a Certificate of Filing to the applicant. The Certificate of Filing will specify the dated upon which the proposal will be heard by the Commission. (§56658(g)) The hearing date must be set within 90 days of the date the Certificate of Completion is issued.

  3. Presentation to the Commission

    1. Public Notice

      The Commission hearing of the proposal must be given public notice no less than 21 days before the hearing. The notice shall be published in a newspaper of general circulation, posted on the bulletin board for legal notices at the County center and posted on the Marin LAFCO website at http://lafco.marin.org. (§56150-4) Mailed notice shall be given to the County, all affected agencies or cities, the subject agencies or cities, all proponents in the petition, persons requesting special notice, and all landowners and registered voters in the subject area plus a buffer zone of 300 feet surrounding the subject area. (§56157)

      In instances in which the Commission considers amendments to the boundaries of proposals, adequate notice will be ensured through continuation of the public hearing where necessary and through inclusion of the modification in the language of the Commission's published agenda.

      Notice will not be published or posted for proposals for changes of organization wherein 100% of the affected property owners have consented in writing to the proposed change (§56663).

    2. Staff Report and Recommendation

      The Executive Officer shall review the application and prepare a report and recommendation. The report shall be distributed no less than five days before the hearing. Copies shall be furnished to the persons specified in the application and all affected agencies. (§56665)

    3. Withdrawal of Proposals

      Applicants wishing to withdraw their applications from further processing or review by LAFCO may do so under the following conditions:

      1. Prior to issuance of a certificate of filing, proposals submitted by petition may be withdrawn with the written request of all persons signing the petition of application.

      2. Prior to issuance of a certificate of filing, proposals submitted by resolution of application may be withdrawn on receipt of a resolution requesting withdrawal from the applicant agency.

      After issuance of a certificate of filing, proposals for change of local government organization may be withdrawn at the discretion of the Commission.

  4. The Commission Hearing

    The hearing may be continued from time to time but shall not exceed 70 days from the date specified in the original notice. At the hearing, the Commission will hear and receive any oral or written protests, objects, or evidence which shall be made, presented or filed, and consider the Staff Report and Recommendations. (§56666) The factors which will be considered by the Commission as required by Government Code §56668 include:

    1. Population, population density; land area and land use; per capita assessed valuation; topography, natural boundaries, and drainage basins; proximity to other populated areas; the likelihood of significant growth in the area, and in adjacent incorporated and unincorporated areas, during the next 10 years.

    2. Need for organized community services; the present cost and adequacy of governmental services and controls in the area; probable future needs for those services and controls; probable effect of the proposed incorporation, formation, annexation, or exclusion and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas. "Services," as used in this subdivision, refers to governmental services whether or not the services are services which would be provided by local agencies subject to this division, and includes the public facilities necessary to provide those services.

    3. The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on the local governmental structure of the county.

    4. The conformity of both the proposal and its anticipated effects with both the adopted Commission policies on providing planned, orderly, efficient patterns of urban development, and the policies and priorities set forth in §56377.

    5. The effect of the proposal on maintaining the physical and economic integrity of agricultural lands, as defined by §56016.

    6. The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposed boundaries.

    7. Consistency with city or county general and specific plans.

    8. The sphere of influence of any local agency which may be applicable to the proposal being reviewed.

    9. The comments of any affected local agency.

    10. The ability of the newly formed or receiving entity to provide the services which are the subject of the application to the area, including the sufficiency of revenues for such services following the proposed boundary change.

    11. Timely availability of water supplies adequate for projected needs including, but not limited to, the projected needs as specified in §§65352.5.

    12. The extent to which the proposal will assist the receiving entity in achieving its fair share of the regional housing needs as determined by the appropriate council of governments.

    13. Any information or comments from the land owner or owners.

    14. Any information relating to existing land use designations.

  5. Commission Adoption of a Resolution In its actions, the Commission may:

    Adoption of a Resolution Making a Determination: Within 35 days after the conclusion of the hearing, the Commission shall adopt a resolution approving, approving conditionally or disapproving the proposal. (§56880) Upon execution of the resolution, copies shall be mailed to the chief petitioners, if any, and the affected agencies whose boundaries would be changed by the proposal. (§56882)

    1. If the proposal is approved, a protest hearing shall be scheduled unless it has been waived. The protest hearing may be waived if landowners have given written consent to the change of organization, all affected local agencies that will gain or lose territory have consented in writing to a waiver of protest proceedings, and no opposition as a result of public notice was received prior to the Commission hearing. (§56663(c,d))

    2. If the proposal is approved with conditions, the resolution of approval shall include a description of the required terms and conditions for approval. The Commission may order that any further action be continued and held in abeyance for a period of time designated by the Commission, not to exceed six months from the date of that conditional approval. (§56885.5, 56886)

    3. If the proposal is denied, no further proceedings shall be taken on that proposal and no similar proposal involving the same territory may be initiated for one year unless the Commission waives that stipulation as detrimental to the public interest and denies approval "without prejudice". (§56884)

  6. Reconsideration

    When the Commission has adopted a resolution making determinations, any person or affected agency may file a written request with the Executive Officer requesting reconsideration of the resolution. (§56895)

    The purpose of the reconsideration process is to provide a mechanism for the Commission to review additional information not included in the development of a resolution adopted by the Commission making determinations. Therefore, it is the policy of Marin LAFCO to provide for reconsideration of Commission decisions in a manner that is consistent with State Law and that does not unduly delay the processing of applications for changes of local government organization.

    The Commission shall include a charge for reconsideration in its schedule of processing fees. The Commission may waive the fee for reconsideration as specified by separate policy.

    1. Procedure

      1. A request for reconsideration may be filed by any interested person or agency within 30 days of the date of adoption of a resolution making determinations or prior to the adoption of a resolution by the conducting authority, whichever is earlier. Such requests must:

        • Be made in writing.

        • State the specific modification to the resolution being requested.

        • Identify new or different facts or applicable new law not previously considered by the Commission.

        • Include required processing fees.

      2. Upon receipt of a timely request, the Executive Officer shall immediately notify the conducting authority not to take any further action until the Commission acts on the request.

      3. The Executive Officer shall place the request on the agenda of the next meeting of the Commission for which any required notice can be given.

      4. At that meeting, the Commission shall consider the request and receive any oral or written testimony. The Commission may continue the hearing for a maximum of 70 days.

      5. At the conclusion of the public hearing, the Commission will act on the request by approving or disapproving or approving with conditions or modifications. If the Commission approves the request with or without modification, the Commission will adopt a new resolution making determinations superseding the resolution previously issued.

Section 4. Following the Commission Action
  1. Protest Hearing

    California Government Code §57000, et seq., provides a forum and a process for protest of resolutions adopted by LAFCO approving changes to local government boundaries or organization.

    It is the policy of Marin Local Agency Formation Commission to delegate the responsibility for conducting protest hearings to its Executive Officer as provided under Government Code §57000(c).

    The purposes of delegating responsibility for holding protest hearings to staff are to increase the Commission's flexibility to expedite protest hearings and evaluate protest petitions without extending the length of regular Commission meetings to include non-discretionary matters.

  2. Procedure for Protest Hearings
    1. Within 35 days of LAFCOs adoption of a resolution making determinations, the Executive Officer shall give notice of the time and place of the protest hearing by mail, publication and posting as required by Government Code §57025 and 57026. The date of the protest hearing shall be set for no less than 15 and no more than 60 days from the date that notice is given.

    2. Land owners and/or registered voters as specified in the notice of hearing may submit written protest to the Executive Officer at any time between the date of the notice of hearing to the conclusion of the hearing.

    3. A protest petition or other written protest may utilize one of the two petition forms (for property owners or registered voters, attached). However, if these forms are not used, the written protest must conform to the requirements of Government Code §57051.

    4. At the protest hearing, the Executive Officer will summarize the action taken by LAFCO in its resolution making determinations. The Executive Officer shall provide reasonable time to hear and receive any oral or written protests, objections or other evidence as provided in Government Code §57051.

    5. The protest hearing may be continued for up to 60 days.

    6. Written protest may be withdrawn at any time prior to the conclusion of the protest hearing.

    7. Upon conclusion of the protest hearing, the Executive Officer shall determine the value of the written protests filed and not withdrawn as specified under §57052 and prepare a report to the Commission.

    8. Within 30 days of the protest hearing, the Commission shall adopt a resolution making findings of the value of protest and taking action to complete or terminate the proposal or to request that the County Board of Supervisors or a city council call an election. The Commission's action shall be determined by the value of the protest and Government Code §57075 through 57087.3, as applicable.

  3. Final Filing

    The Certificate of Completion is issued by the Executive Officer after the conducting authority proceedings have been conducted and verification is received that conditions required by the Commission's resolution have been fulfilled. The effective date of the change of organization or reorganization is the date the signed Certificate of Completion is filed at the County Recorder's office unless otherwise specified by the Commission. (§57202) If the Certificate of Completion has not been filed within one year after the Commission approves a proposal, the proceeding is deemed abandoned unless the Commission authorizes an extension prior to the expiration of that year. (§56895)

    The Certificate of Completion including the recording numbers affixed by the County recorder will be distributed to property owners, affected agencies, County surveyor, County assessor, County auditor, and the State Board of Equalization. The State Board of Equalization will distribute relevant information to the Department of Finance, the Controller and to the Secretary of State, as appropriate. (§57203,4)


Section 5. Polices & Procedures for Specific Application Types
  1. Activation of New Services by Special Districts (Exercise of "Latent Powers") Policy and Procedure for the Activation of Special District Latent Powers previously adopted as "Rules and Regulations Governing Special Districts with representation on LAFCO".

    1. Regulation of New Functions or Services

      New or different functions or classes of service shall only be provided by an existing district in accordance with these rules and regulations and pursuant to Government Code §56824.10. These rules and regulations shall not apply to the extension or enlargement, within the boundaries of an existing special district, of any function or service which the Commission has previously established as currently being provided by such special district.

    2. Review of Functions and Services

      The Commission shall periodically review and update the inventory of functions and services established for each special district as part of its review of adopted spheres of influence. In conducting such a review, the Commission may require the special districts to provide current information concerning established functions and services. The Commission may, after public hearing, remove from its inventory any function or service established for a special district, if the Commission determines that the function of service is not currently being provided by the district.

    3. Procedure

      1. Any special district desiring to undertake the provision of any new or different function or class of service within its boundaries shall adopt a resolution of application pursuant to Government Code §56824.12. Adoption of such resolution of application requires a noticed public hearing.

      2. Applications for provision of new or different functions or classes of service must be accompanied by a plan for providing service. Plans for providing service shall include:
        • The total estimated cost to provide the new or different function or class of service;

        • The estimated cost of service to district customers;

        • An identification of existing providers (if any) of the new or different function or class of service and the potential fiscal impact to the customers of those existing providers;

        • A plan for financing the establishment of the proposed new service;

        • Alternatives to the proposed provision of the new or different function or class of service by the district;

    4. Public Hearing

      The Commission shall hear and act upon the application at a noticed public hearing according to the requirements of Government Code §56824.14. The Commission may approve or disapprove the proposal with or without amendments, wholly, partially, or conditionally and shall hear and consider the testimony presented by any interested person or organization appearing at that hearing.

    5. Joint Exercise of Powers

      The Commission's Rules, Regulations and Guidelines regulating the provision of new or different functions or classes of service by special districts shall not abridge a district's rights and powers relative to joint powers agreements between that district and another public agency providing the same existing services at the time of the adoption of these rules.

  2. Initiation of Proposals by the Local Agency Formation Commission Pursuant to Government Code §56375(a), the Commission is authorized to initiate the following specific types of proposals to change the organization of special districts:

    1. Consolidation of special districts formed under the same enabling act.

    2. Dissolution of a special district, where another agency can assume service responsibility.

    3. Merger of a district with a city, where the city encompasses the entire district.

    4. Establishment of a subsidiary district of a city, where at least 70% of the district's territory and population are within the city.

    5. A reorganization which includes two or more of the above changes of organization.It is the policy of the Marin Local Agency
      Formation Commission to prefer, but not require, that proposals be submitted by petition of voters or landowners or by resolution of application by an affected local agency. The Commission will consider initiation of such proposals in instances in which the following conditions apply:

      • A sphere of influence or other governmental study has shown that a proposal may result in lower overall public service costs, greater local government access and accountability, or both.

      • The Commission can complete the necessary review, analysis, and processing with its own staff resources, or funds are available to pay for additional assistance needed to complete the review and processing of the proposal.

      The Commission reserves its discretion to initiate such proceedings in exceptional circumstances in which there exists a level of public concern about a district's services or governance which, in the Commission's view, warrants initiation of a proposal.


      Procedure

      1. The Commission will consider whether or not to initiate a proposal at a regular public meeting. The Commission will consider a preliminary staff report, which estimates, to the extent possible without a full study, potential service cost savings and which summarizes any other factors which warrant consideration. After reviewing the preliminary report, if the Commission decides to proceed, it will adopt a resolution of application pursuant to Government Code §56800.

      2. If the Commission initiates a proposal, staff will commence formal review, including provision for agency participation and comment, environmental review, property tax exchange (if applicable), and an Executive Officer's Report and Recommendation, as required for all proposals considered by the Commission.

      3. The Commission may refer the proposal to a reorganization committee as provided in Government Code §56475. As an alternative, the Commission may refer the proposal to an advisory committee composed of a representative from each affected district and any additional representatives the Commission deems appropriate.

      4. The Commission shall hear and act upon the application at a noticed public hearing according to the processing requirements of the Cortese-Knox-Hertzberg Act and these Policies, Procedures and Guidelines. The Commission may approve or disapprove the proposal with or without amendments, wholly, partially, or conditionally and shall hear and consider the testimony presented by any interested person or organization appearing at that hearing.

  3. Proposals Affecting More than One County

    1. Legislative Authority

      1. The Cortese Knox Hertzberg Local Government Reorganization Act of 2000 ("the Act") provides that the county having all or the greater portion of the assessed value of all taxable property within a district for which a change of organization or reorganization is proposed is the principal county for changes in organization involving that district. The Act further provides that the LAFCO of the principal county shall have exclusive jurisdiction over all boundary changes affecting a district located in more than one county, unless the LAFCO of the principal county vests exclusive jurisdiction in the LAFCO of another affected county, and both LAFCOs agree to the transfer of jurisdiction.

      2. The Act also grants each LAFCO the authority to enter into an agreement with the LAFCO of an adjoining county for the purpose of determining procedures for the consideration of proposals that may affect the adjoining county.

      3. Marin LAFCO recognizes the need to collaborate with the LAFCOs of affected counties when considering a change of organization of a district that is located in more than one county. To further this collaboration and assure thorough and consistent consideration of applications affecting more than one county, this Commission adopts the following procedure for processing applications from multi-county districts.

    2. Transfer of jurisdiction to LAFCO of another affected county when Marin LAFCO is principal LAFCO:

      When requested by the LAFCO of an affected county, Marin LAFCO will consider and determine, on a case-by-case basis, whether it is appropriate to transfer jurisdiction to the LAFCO of the affected county.

    3. Procedure for processing of applications affecting more than one county when Marin LAFCO is principal LAFCO:

      1. Applications affecting the boundaries of a district for which Marin LAFCO is principal LAFCO shall be submitted to Marin LAFCO, including instances in which the subject territory is located in another county. Prior to application, applicants should meet with Marin LAFCO staff and the staff of the LAFCO in the affected county regarding process and application requirements.

      2. Upon receipt of an application involving territory in another county, Marin LAFCO staff shall immediately forward a copy of the application to the LAFCO of the affected county. Marin LAFCO staff shall also notify all affected local agencies of any proceedings, action, or reports on the proposed change of organization.

      3. Marin LAFCO staff shall consult with the staff of the LAFCO of the affected county and the staff of affected agencies, to gather data for the Executive Officer's report and recommendation.

      4. Marin LAFCO shall schedule Commission consideration of the application so that the LAFCO of the affected county has had time to review the application and submit a written recommendation to be included in the Executive Officer's report for Marin LAFCO consideration.

      5. During its consideration of the application, the Commission shall consider the Executive Officer's report, the recommendation of the LAFCO of the affected county, and the comments of interested persons and affected local agencies in making its determination.

      6. Following the Commission's consideration of the application, the Executive Officer shall forward any resolutions and written report of Commission action to all affected local agencies and the LAFCO of the affected county.

    4. Applications affecting territory in Marin County when Marin LAFCO is not principal LAFCO:

      Upon receipt by Marin LAFCO of a referral from the LAFCO of another county of an application for a change of organization affecting territory in Marin County, Marin LAFCO staff shall place the application and report and recommendation on Marin LAFCO's next possible agenda so that the Commission may consider the application and forward a recommendation to the principal LAFCO. The application will be processed and a staff report will be prepared consistent with Marin LAFCO's Adopted Policies, Procedures and Guidelines.