BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 946                      HEARING:  4/9/14
          AUTHOR:  Huff                         FISCAL:  No
          VERSION:  2/5/14                      TAX LEVY:  No
          CONSULTANT:  Urquiza                  

                   ORANGE COUNTY SANITATION DISTRICT'S BOARD
          

          Replaces the City of Yorba Linda's representative on the  
          Orange County Sanitation District's Board of Directors with  
          a representative of the Yorba Linda Water District. 


                           Background and Existing Law  

          The County Sanitation District Act provides for the  
          formation, consolidation, officers, and powers of county  
          sanitation districts.  In 1998, nine sanitation districts  
          in northern and central Orange County consolidated into a  
          single agency, the Orange County Sanitation District  
          (OCSD).  OCSD is responsible for safely collecting,  
          treating and disposing of the wastewater generated by 2.5  
          million people living in a 479-square-mile area of central  
          and northwest Orange County.  The County Sanitation  
          District Act established a governance structure for the  
          OCSD to ensure equal and fair representation of all  
          municipalities, and water and sanitary districts within the  
          consolidated sanitary district's boundaries (AB 769, Baugh,  
          1997).  The County Sanitation District Act specifies that  
          the OCSD's Board of Directors consists of: 

                 One member of the city council of each city located  
               wholly or partially within the district's boundaries;
                 One member of the county board of supervisors; 
                 One member of the governing body of each sanitary  
               district, the whole or part of which is included in  
               the consolidated sanitation district; 
                 One member of the governing body of a public agency  
               empowered to and engaged in the collection,  
               transportation, treatment, or disposal of sewage and  
               which was a member agency of a sanitation district  
               consolidated into a consolidated sanitation district.

          The governing body of each local government appoints a  




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          member to represent them on the OCSD Board.  Currently,  
          OCSD has a 25-member governing board comprised of one  
          county supervisor, 20 city council members, three sanitary  
          district members, and one water district representative.  

          The City of Yorba Linda held a seat on the OCSD Board of  
          Directors to represent ratepayers within the City of Yorba  
          Linda.  The City was in charge of sewer lateral pipelines  
          connecting residences or businesses to the main sewer line  
          under OCSD's jurisdiction.  However, in 2010 the City of  
          Yorba Linda transferred sewer service and responsibility to  
          the Yorba Linda Water District through a mutual service  
          agreement.  The City agreed to relinquish the OCSD board  
          seat to the Yorba Linda Water District.  


                                   Proposed Law

           SB 946 changes the membership of the Orange County  
          Sanitation District's Board to include one member of the  
          governing body of the Yorba Linda Water District who would  
          replace a member of the City of Yorba Linda's city council.  
           
          

                               State Revenue Impact
           
          No estimate. 


                                     Comments  

          1.   Purpose of the bill  .  The current structure of the OCSD  
          governing board does not allow OCSD to modify the Board's  
          membership to adequately respond to the transfer of local  
          sewer service from the City of Yorba Linda to the Yorba  
          Linda Water District.  The OCSD did not wish to increase  
          the size of its Board from 25 to 26 and have double  
          representation by the City of Yorba Linda.  SB 946 allows  
          OCSD to transfer board representation by the City of Yorba  
          Linda to the Yorba Linda Water District. 






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          2.   Future flexibility  .  OCSD noted that the transfer of  
          sewer services is not common and the City Yorba Linda's  
          case is somewhat unique.  Nevertheless, if a transfer of  
          sewer services does occur in the future, OCSD would have to  
          request legislation that would allow it to substitute board  
          members.  The committee may wish to consider amending the  
          bill to give the Orange County Sanitation District the  
          flexibility to substitute board seats in the future  
          whenever a city transfers sewer service responsibility to  
          another public agency. 

          2.   Special legislation  .  The California Constitution  
          prohibits special legislation when a general law can apply  
          (Article IV, Sec. 16).  SB 946 contains findings and  
          declarations explaining the need for a special statue for  
          the consolidated sanitation district in Orange County.

                         Support and Opposition  (4/3/14)

           Support  :  Orange County Sanitation District (OCSD); City of  
          Yorba Linda; Yorba Linda Water District.


           Opposition  : Unknown.