In September 2015, the Legislature approved Senate Bill 239 (“SB 239”), which requires Local Agency Formation Commissions (“LAFCO”) approval for fire protection agreements between public agencies that affect more than twenty-five percent (25%) of an agency’s jurisdictional area or employees. SB 239 was signed by Governor Brown, and will take effect on January 1, 2016.  SB 239 lengthens the process for local agencies to adopt fire protection agreements and will also require LAFCOs to ensure that services in fire protection agreements are adequately funded.

Current Law

Under the Cortese-Knox-Hertzberg Local Government Reorganization Act, cities and special districts must obtain LAFCO approval before they can serve territory outside their boundaries. Prior to SB 239, cities and fire protection districts were allowed to contract with other local agencies or the California Department of Forestry and Fire Protection (“CALFIRE”) without obtaining LAFCO approval.

New Legislative Requirements

Under SB 239, local agencies must now obtain LAFCO approval for certain fire protection agreements. SB 239 only applies to fire protection agreements between public agencies that extend services outside a public agency’s jurisdictional boundaries and transfer responsibility for services in more than twenty-five (25%) of the jurisdictional boundaries, or change the employment status of more than twenty-five (25%) of the employees of any public agency affected by the contract or agreement.  Agreements with CALFIRE for forest fire are also covered, but cooperative agreements with CALFIRE for fire services in urban areas may be exempt from this new requirement.

If a fire agreement is subject to SB 239, that public agency must initiate a request for LAFCO approval by adopting a resolution of application. Prior to submitting a resolution to LAFCO, the public agency must also conduct an open and public hearing, and provide evidence showing the attempt to garner support for the contract by having written consent from each agency or union, or having sent written notice and a full copy of the contract to each agency or union at least thirty (30) days before the public hearing.

The fire services agreement must also be submitted to LAFCO with a plan that includes a comprehensive fiscal analysis for services, how the costs of the existing service provider compare to the costs of services provided in similar service areas, and any other information and analysis needed to support LAFCO findings to approve services under a fire protection contract.

LAFCO must then review the contract and approve, disapprove, or approve it with conditions after a public hearing.  LAFCO can only approve an application if it determines that the public agency will have sufficient revenues to carry out the services or if LAFCO conditions its approval on the concurrent approval of new revenue sources.  Under SB 239 an applicant may request reconsideration if a contract is disapproved or approved with conditions within the time frame dictated by the local LAFCO which is typically thirty (30) days from final decision.

Implications

Cities and special districts should take note of these new requirements if they are considering an extension of fire services affecting more than twenty-five percent (25%) of existing employees or more than twenty-five percent (25%) of the service area. SB 239 will make the process for adopting fire protection contracts more arduous, but will ensure that a careful evaluation of the level of service and funding is performed.

Although SB 239 is limited in scope, our office will continue to monitor this issue to determine whether future legislation is sought to broaden the scope of these requirements to other agreements. If you have any questions regarding the procedures or SB 239, please contact Douglas L. White at (916) 468-0950 or at doug@whitebrennerllp.com, Robin Baral at robin@whitebrennerllp.com, or Katie O’Ferrall at katie@whitebrennerllp.com.