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 SB 946 -- 2/5/14 -- Page 2 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. SB 946 -- 2/5/14 -- Page 3 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.