BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |AB 1217                          |Hearing    |6/29/16  |
          |          |                                 |Date:      |         |
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          |Author:   |Daly                             |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |6/23/16                          |Fiscal:    |No       |
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          |Consultant|Weinberger                                            |
          |:         |                                                      |
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                             Orange County Fire Authority



          Prohibits the Orange County Fire Authority from appointing  
          alternates for its governing board's members.


           Background 

           The Joint Exercise of Powers Act allows two or more public  
          agencies to use their powers in common if they sign a joint  
          powers agreement.  Sometimes an agreement creates a new,  
          separate government called a joint powers authority (JPA). 

          The Orange County Fire Authority (OCFA) is a joint powers  
          authority formed on March 1, 1995 to provide fire protection and  
          related services to 18 member cities and the unincorporated area  
          within Orange County.  Because five additional cities have  
          become members of OCFA since its formation, OCFA now operates  
          within 23 cities and the unincorporated area in Orange County.   
          OCFA operates a full-service emergency response agency.  The  
          authority manages 71 fire stations that serve more than 1.7  
          million residents within a land area of approximately 571 square  
          miles.  In fiscal year 2013-14, OCFA personnel responded to more  
          than 113,000 incidents.

          OCFA's joint powers agreement has been amended four times - in  
          1999, 2010, 2013, and 2015 - since the agreement took effect in  
          1995.  The joint powers agreement establishes a 25-member board  







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          of directors to govern OCFA.  The board is comprised of one  
          voting member from each member city and two voting members from  
          Orange County.  Until last year, each member jurisdiction could  
          name an alternate member to OCFA's board, making 49 people  
          eligible to attend OCFA board meetings (25 members plus 24  
          alternates).  The most recent amendment to OCFA's joint powers  
          agreement, which took effect last year, eliminated the alternate  
          member positions on OCFA's board.

          To ensure that the governance changes OCFA members approved last  
          year cannot be reversed, representatives of OCFA's employees  
          want the Legislature to codify those changes in state law.


           Proposed Law

           Assembly Bill 1217, notwithstanding any other law, prohibits the  
          composition of the Board of Directors of the Orange County Fire  
          Authority from including alternate members.

          AB 1217 expresses the intent of the Legislature to reevaluate  
          the structure of the Board of Directors of the Orange County  
          Fire Authority within a reasonable period from the bill's  
          effective date to consider the effectiveness of the board's size  
          and structure.


           State Revenue Impact

           No estimate.


           Comments

           1.  Purpose of the bill  .  In response to concerns that the size  
          and structure of Orange County Fire Authority's Board of  
          Directors created governance challenges, previous versions of AB  
          1217 would have decreased the board's size and restructured the  
          process by which member agencies appointed representatives to  
          the board.  Conversations prompted by AB 1217's previous  
          versions led a majority of OCFA's member agencies to conclude  
          that the Authority could address some of the governance concerns  
          raised about the board by eliminating the 24 alternate board  
          member positions.  Although the member agencies approved an  








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          amendment to the Authority's joint powers agreement that  
          eliminated the alternate board member positions, advocates for  
          reforming OCFA's governance structure remain concerned that  
          these changes could easily be undone by the subsequent approval  
          of another amendment to the joint powers agreement.  AB 1217 is  
          now a narrowly-focused bill that simply codifies in state law  
          the changes that OCFA's member agencies approved last year.  In  
          practice, the bill makes no change to the existing structure or  
          function of OCFA's governing board.  AB 1217 benefits all of the  
          residents who rely on OCFA's services by simply preventing OCFA  
          from restoring an unwieldy board structure that made consensus  
          and governance difficult.

          2.  Precedent  .  The purpose of the Joint Exercise of Powers Act  
          is to allow California government agencies to work  
          collaboratively through a mutually-agreeable governance  
          structure established pursuant to a joint exercise of powers  
          agreement.  Having the Legislature override a joint powers  
          agreement to dictate a particular JPA's governing structure is  
          an unprecedented erosion of the broad, flexible authority  
          granted by the Joint Exercise of Powers Act.  In practice, AB  
          1217 has little substantive effect on OCFA, because it merely  
          codifies the existing structure of OCFA's governing board, as  
          approved by the member agencies.  However, passing AB 1217 may  
          invite similar proposals asking the Legislature to impose more  
          substantial statutory constraints on other joint powers  
          agreements, further eroding a fundamental purpose of the joint  
          exercise of powers act, which is to provide for local control  
          over commonly-held local governmental powers without the need  
          for legislative involvement.

          3.   Special legislation  .  The California Constitution prohibits  
          special legislation when a general law can apply (Article IV,  
          §16).  AB 1217 contains findings and declarations explaining the  
          need for legislation that applies only to the Orange County Fire  
          Authority. 


           Assembly Actions

           Assembly Local Government Committee:  5-2
          Assembly Floor:               47-25










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           Support and  
          Opposition   (6/23/16)


           Support  : AFSCME District Council 36; City of Santa Ana; Orange  
          County Employees Association; Orange County Labor Federation;  
          Orange County Professional Firefighters Association; United  
          Association of Journeymen and Apprentices of the Plumbing and  
          Pipe Fitting Industry of the United State and Canada, Local 582.


           Opposition  :  Association of California Cities - Orange County;  
          Cities of Aliso Viejo, Buena Park, Burlingame, Calimesa, Costa  
          Mesa, Cypress, Dana Point, Fillmore, Fountain Valley, La Canada  
          Flintridge, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods,  
          Lake Forest, Los Alamitos; Mission Viejo, Norwalk, Placentia,  
          Plymouth, Rancho Cordova, Rancho Santa Margarita, Salinas, San  
          Carlos, San Clemente, San Juan Capistrano, Seal Beach, Stanton,  
          Tehachapi, Thousand Oaks, Tustin, Villa Park, Westminster, West  
          Hollywood, Yorba Linda; League of California Cities; Orange  
          County Council of Governments; Orange County Fire Authority;  
          Orange County Mosquito and Vector Control District; Orange  
          County Supervisor Lisa A. Bartlett; Public Agency Risk Sharing  
          Authority; Schools Excess Liability Fund.



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