LAFCO Asset Transfer

November 27, 2001

Lloyd W. Pellman, County Counsel
500 West Temple Street, Room 648
Los Angeles, California 90012

Dear Mr. Pellman:

I have reviewed your opinion of November 21 concerning the authority of the Local Agency Formation Commission for Los Angeles County (“LAFCO”) to require the transfer of assets as terms and conditions of the proposed special reorganizations of the City of Los Angeles.

Your opinion states that “(p)roprietary assets of a municipal corporation which will continue in existence after the special reorganization cannot be transferred without compensation, absent the consent of the existing city to the transfer.” Thus, for example, the terms and conditions for the special reorganization of the San Fernando Valley cannot require that parks, libraries, fire stations and other assets located in the San Fernando Valley transfer to the new Valley City without either compensation or the consent of the City of Los Angeles.

I would like to know whether LAFCO can require, as part of the terms and conditions for the special reorganization of the San Fernando Valley, that the remaining City of Los Angeles compensate the new Valley City for the investment made by Valley City taxpayers in parks, libraries, fire stations and other physical assets which are located south of Mulholland Drive and which will therefore remain within the City of Los Angeles.

Thank you for your prompt response to this inquiry.

Sincerely,

ZEV YAROSLAVSKY
Supervisor, Third District

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