(a) The boundaries of the district shall include all of the following:

1. (1) The City of Sacramento.
2. (2) The City of Rancho Cordova.
3. (3) The unincorporated territory of the County of Sacramento that is within the urban service area, as determined by the Board of Supervisors, and not otherwise divided from the rest of the unincorporated territory that is within the urban service area by an incorporated city not previously described in this subdivision.
4. (4) A city or county authorized to join the district pursuant to Section 102051 that has annexed to the district pursuant to the process specified in Section 102055.
5. (5) A city incorporated on or after January 1, 2016, which city consists entirely of territory that was included in the district before the city’s incorporation.

(b)

1. (1) The boundaries of the district shall not be affected by the incorporation of any territory wholly or partly within the boundaries of the district or by reason of annexation to or detachment from any city or territory wholly or partly within the boundaries of the district, except as provided in this section.
2. (2) Where territory outside the district is annexed to any city included in the district, that territory shall, upon the completion of the annexation proceeding, be deemed incorporated into and annexed to the district.
3. (3) Where territory is incorporated as a new city, on or after January 1, 2016, and is partly within and partly outside the district, the entire territory shall, upon completion of the incorporation proceeding, be deemed incorporated into and annexed to the district.

4. (4) Where territory that is within the boundaries of the district is annexed to any city that is not a member entity, that territory shall remain part of the district unless, at the time of annexation, both of the following apply:

   1. (A) No transit service is operated by the district within the annexed territory or within one-half mile of any outside boundary of the annexed territory.
   2. (B) No transit service is planned by the district, as evidenced by the district’s adopted short-range transit plan, for the annexed territory or within one-half mile of any outside boundary of the annexed territory within five years of the annexation, in which case that territory may be detached from the district if the Sacramento County Local Agency Formation Commission determines, during the annexation proceedings, that the area would be better served by the annexing city than the district. The detachment may be accomplished without proceeding with the detachment process in Section 102056.