Policy: Transition Planning – Planning for Transition of Territory between Cities and Fire Protection Districts

Any independent fire district whose boundaries include territory within a city's sphere of influence is encouraged to develop plans for the orderly detachment of that territory from the district. Districts should plan their long-term revenues and expenditures (e.g., facilities, equipment and staffing) to reflect the eventual annexation of that territory.

If a fire protection district, in its planning, has determined and documented a substantial financial burden and/or disruption of services due to the annexation of specific territory, it is encouraged to enter into discussions with the affected city to develop a transition, or other, agreement to mitigate the impacts.

Where all or portions of a fire protection district are within a city's sphere of influence, the city is encouraged to develop policies that will anticipate the annexation of the district's territory within its sphere. The city is encouraged to consider the impacts, if any, of the annexation on the district and, if appropriate, enter into discussions with the affected fire protection district to develop a transition, or other, agreement to mitigate the impacts.

If a fire protection district, in its planning, has documented a substantial financial burden or disruption of services due to annexations and a transition, or other, agreement between the city and district has been executed, a copy of the agreement shall be submitted to the Commission as part of an application for annexation of any district territory to the city.
If an agreement between the city and district has not been reached, the city shall provide to the Commission a statement explaining the reason(s) that an agreement was not reached and is unnecessary, impracticable, and/or not in the public interest. The fire protection district may, at any time during the application process, submit a response to the city’s statement.

Although this policy specifically addresses fire protection districts, the policy and procedures shall apply to any independent special district whose boundaries include territory within a city's sphere of influence.

Legal Authority

The Commission is governed by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, as amended (Government Code §56000 et seq.) (“the Act”).

The Commission has both the power and duty to review and approve, with or without amendment, wholly, partially, or conditionally, or disapprove proposals for changes of organization or reorganization, consistent with written policies, procedures, and guidelines adopted by the Commission (Government Code §56375). The Commission may adopt standards for any of the factors enumerated in Government Code §56668. In approving or disapproving a proposed change in organization or reorganization, the Commission is directed by the Act to consider, among other factors, the following:

[The] probable effect…on the cost and adequacy of services and
controls in the area and adjacent areas (§56668(b)) and

The effect of the proposed action and of alternative actions on adjacent
areas, on mutual social and economic interests, and on the local
government structure of the county (§56638(c))

Additionally, the Commission can require the payment of a mitigation fee to a public agency, either one-time or during the transition, as a condition of approval of a land boundary change between public agencies.

Background and Discussion

Over the years, there have been concerns about the economic viability of special districts, particularly fire protection districts, when the annexation of district territory to a city occurs.

The Commission’s intent is not to delay annexations if they meet the requirements of the law and provide equal consideration to all agencies.

The Commission expects fire protection districts whose boundaries include territory within the sphere of influence of a nearby city to plan for the eventual annexation of that territory to the city. Planning should include consideration of both the fiscal and physical impacts on the district.

The Commission believes that transition agreements or memoranda of understanding are effective tools to provide for the orderly transfer of service from a fire protection district to a city. The agreements may involve the transfer of stations, personnel, equipment, property taxes, etc., as mutually determined by the city and fire protection district. Although the Commission is not a party to these agreements, it expects the parties to negotiate in good faith and to agree on terms and conditions that are fair and reasonable given local circumstances.

Adopted: May 2, 2012