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1.A-5 HOUSING from page 1 .............................................. Councils of Governments (COGs) have been reimbursed by the State for the costs of the as- sessment since 1980, when the State Board of Control determined that the regional housing needs assessment was a reimbursable state mandate. However, earlier this year the Legislature requested that the Commission on State Mandates take another look at whether or not the regional housing needs assessment (RHNA) is reimbursable. The notice of reconsideration issued by the Commis- sion implied that COGs are exempt from state reimbursement because they are not local agen- cies, and because recent legislation has granted COGs the authority to levy fees upon member agencies. The League's brief highlighted three primary reasons why the RHNA process remains a reim- bursable state mandate. I. COGs are local agencies. Government Code Section 17518 clearly defines a local agency as "any city, county, special district, authority, or other political subdivision ofthe state: A Council of Government is a joint powers authority created by a joint powers agreement entered into by more than one government agency. As such, it is an authority separate and distinct from the parties that created it, and is a local agency under the definition pro- vided in Government Code Section 17518. II. Existing COGs cannot levy fees on members unless their ioint powers agreement grants that authority. A COG is formed through a joint powers agreement contract that explicitly states what power the authority (COG) will have, how it will be exercised, and for what purpose. While some agreements may have granted a COG the authority to levy fees, others have not. A new state law authorizing all COGs to impose fees on their members, places the Legislature in the posi- tion of interfering with the terms of a contract between cities and counties by granting an author- ity that contradicts the terms of the joint powers agreement. This is a direct violation of the contract clause of the California State Constitution (Cal. Const. Art. I, Section 9). III. Assuming a COG does charge its members. the members could not pass along the fee to developers. Fees are distinguished from taxes in two principal ways: (1) the amount of the fee may not exceed the estimated reasonable cost of providing the service or facility for which the fee is being charged; and (2) the service or facility for which the fee is charged must bear a relationship to the person or entity paying the fee. The reconsideration of the state mandate as- sumes that COG members can pass the fee along to developers. However, a city or county is not the entity providing the service to the devel- oper, and did not incur the costs to distribute the regional housing needs. Therefore a pass- through fee charged by a city or county to pay for the work of a COG is a tax, and would require voter approval. The Commission on State Mandates will be posting a draft staff analysis and supporting documentation on the Commission's website by January 20, 2005. The Commission will then hold a hearing on reconsideration, and may adopt a revised statement of decision on March 31,2005. To view the League's brief, or for more information on the Commission on State Mandate's notice of reconsideration or hearing process, please visit the League's website. LEAVING CITY OFFICE? RETIRING? The League wants to stay in touch! Just because you are leaving your position with the city doesn't mean you stop caring about or wanting to be involved in city issues. Keep abreast of developments affecting cities and the League by becoming part of the League's alumni group. Members will receive periodic updates on city issues and League activities. This is the League's way of saying "thank youft for your public ser- vice-there is no fee for this service. To join, go to www.cacities.ora/aiumni or send us your contact information by filling out the attached form. Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 5