BILL ANALYSIS Ó SB 946 Page 1 Date of Hearing: June 4, 2014 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT K.H. "Katcho" Achadjian, Chair SB 946 (Huff) - As Introduced: February 5, 2014 SENATE VOTE : 37-0 SUBJECT : Community facilities: consolidated sanitation district. SUMMARY : Makes changes to the composition of the board of directors of a consolidated sanitation district in Orange County. Specifically, this bill : 1)Modifies the composition of the board of directors of a consolidated sanitation district in Orange County, by removing the current representation of the one member from the Yorba Linda city-council and instead adding representation for one member of the Yorba Linda Water District's governing board. 2)Finds and declares that a special law is necessary because of the special circumstances surrounding the change in composition of the governing body of the consolidated sanitation district in Orange County resulting from the transfer of sanitation duties from the City of Yorba Linda to the Yorba Linda Water District. EXISTING LAW : 1)Requires the governing body of the Orange County consolidated sanitation district, as specified, to be a board of directors composed of all of the following: a) One member of the city council of each city located wholly or partially within the district's boundaries, however, a city within the consolidated district, the sewered portion of which city lies entirely within another sanitary district, shall have no representation on the board; b) One member of the county board of supervisors; c) One member of the governing board of each sanitary district, the whole or part of which is included in the SB 946 Page 2 consolidated sanitation district; and, d) 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. 2)Allows the governing body of the county and each city, sanitary district, and public agency that is a member agency having a representative on the board of directors of the consolidated sanitation district to designate one of its members to act in the place of its regular member in his or her absence or his or her inability to act. 3)Prohibits any action from being taken at any board of directors meeting unless a majority of all authorized members of the board are in attendance. FISCAL EFFECT : None COMMENTS : 1)Orange County Sanitation District (OCSD) . AB 769 (Baugh), Chapter 51, Statutes of 1997, established the composition of a governing board of a sanitation district created by consolidation in Orange County. Supporters of AB 769 argued for a specific governance structure for OCSD to ensure equal and fair representation of all municipalities and water and sanitary districts within the consolidated sanitary district's boundaries. Following the passage of AB 769, in 1998, nine sanitation districts in Orange County consolidated into a single agency, known as OCSD. According to OCSD, they are 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 stated purpose of OCSD's wastewater management program is to protect the public's health, preserve the beneficial uses of the coastal waters, and maintain air quality. The stated objective of operating the treatment plants are to process and dispose of the treated wastewater and the separated solids in accordance with federal, state, and local laws. OCSD is currently governed by a 25-member board of directors SB 946 Page 3 comprised of one county supervisor, 20 city council members, three sanitary district members, and one water district member. 2)Purpose of this bill . This bill makes changes to the composition of the board of directors of a consolidated sanitation agency in Orange County to remove one member, a Yorba Linda city-council representative, and add one member, a Yorba Linda Water District representative. 3)Author's statement . According to the author, "The OCSD Board of Directors is comprised of 25 members, representing municipalities, water and wastewater agencies throughout North and Central Orange County. The City of Yorba Linda held a seat on the OCSD Board of Directors to represent ratepayers within the City of Yorba Linda. However, in 2010 the City of Yorba Linda transferred sewer service and responsibility to the Yorba Linda Water District through a formal agreement. In addition to transferring service and responsibility to the Yorba Linda Water District, the City also agreed to relinquish the OCSD Board seat to the Water District. By mutual agreement of all parties involved including the OCSD, the City of Yorba Linda and the Yorba Linda Water District, OCSD seeks to substitute the Board seat held by the City of Yorba Linda to allow representation for the residents of Yorba Linda by the Yorba Linda Water District." 4)Committee amendments . The Committee may wish to ask the author to accept an amendment to clarify that the governance structure established in current law that this bill is seeking to amend only applies to OCSD. When AB 769 was signed into law, the Orange County Local Agency Formation Commission had not consolidated the nine sanitary districts. However, now that OCSD is one consolidated district, the Committee may wish to encourage the author to update existing law to reflect that. 5)Arguments in support . Supporters argue that this bill reflects a local agreement and provides an appropriate solution to a governance issue created by the transfer of local sewer services. 6)Arguments in opposition . None on file. REGISTERED SUPPORT / OPPOSITION : SB 946 Page 4 Support Association of California Cities - Orange County City of Yorba Linda Orange County Sanitation District Yorba Linda Water District Opposition None on file Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916) 319-3958