CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Letter of Opposition for Assembly Bill (AB) 2986 (W. Carrillo) for a Local Agency Formation Commission for the County of Los Angeles: East Los Angeles Task Force.
Meeting Date: June 25, 2024
REQUEST:
The City Council will consider for adoption of a Resolution authorizing staff to send an opposition letter signed by the Mayor to the State of California for AB 2986 (W. Carrillo).
BACKGROUND:
AB 2986 is a feasibility study that would establish a task force under the Local Agency Formation Commission for the County of Los Angeles (LALAFCO) to explore the possibility of East Los Angeles becoming a “special district” with local elected leaders or becoming a municipality. The bill, by December 2026, would require the task force to complete and submit a report to the Legislature on the potential impacts of city and special district incorporation in East Los Angeles, including an analysis of advantages, disadvantages, and recommendations for future actions. This bill would repeal these provisions on January 1, 2027.
AB 2986, as introduced on February 16, 2024, addressed affordable housing and the Los Angeles County Affordable Housing Solutions Agency (LACAHSA). On March 21st, the bill was gutted and amended by Assemblymember Carrillo to refocus the bill on unincorporated East Los Angeles.
ANALYSIS
The proponents of AB 2986 contend that East Los Angeles has been torn apart by the annexation of commercial assets into the City of Commerce. Residents and businesses who set out in 1959 to incorporate the City of Commerce worked diligently to make the City the 67th city in Los Angeles County. The collaborative effort of the business and local community in 1959 paved the way for the City has mark itself as a strong economic hub for many businesses. The City’s economic development provides over 49,000 jobs for many Commerce and regional residents, improving the livelihood and economy of the region.
The bill suggests that incorporation would enable East LA to capture territory from neighboring cities to bolster its tax base. This is an effront to the will of voters who have done the hard work to establish the boundaries for neighboring cities like Commerce. The City has a strong relationship with the County of Los Angeles, and many services such as LA County Fire and the LA County Sheriff’s Department, where Commerce residents and those who reside within East Los Angeles have access to these critical services.
The bill is estimated to cost taxpayers 6 million to implement, many unions are united against this bill due to the bill potentially jeopardizing union jobs and potentially causing an immediate, multimillion-dollar budget deficit that East Los Angeles residents and businesses would have to pay through higher taxes, reduction of community programs, or outsourcing services.
This is the fifth attempt to incorporate East Los Angeles. Based on an analysis of the economic viability of incorporation for East Los Angeles completed in 2012, showed that if incorporated, during the first year, the region would run a $19 million deficit. Today, this deficit would be significantly higher given the increase in costs of public services ALTERNATIVES:
Approve staff recommendation; and/or
Provide further direction to staff
RELATIONSHIP TO STRATEGIC GOALS:
This report before the Council is not applicable to any specific 2016 Strategic Plan Guiding Principle; however, it is related to the following Strategic Focus Area: To continue to pursue opportunities for collaboration and regional partnerships, specifically in East Los Angeles and the LA County to maximize resources and address regional issues.
Fiscal impact:
Preparation of this letter of support provides
Prepared by: Gisselle S. Delgado
Respectfully submitted: Ernie Hernandez, City Manager
Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS: