BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |AB 1217 |Hearing |6/29/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Daly |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |6/23/16 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Weinberger | |: | | ----------------------------------------------------------------- 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 AB 1217 (Daly) 6/23/16 Page 2 of ? 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 AB 1217 (Daly) 6/23/16 Page 3 of ? 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 AB 1217 (Daly) 6/23/16 Page 4 of ? 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. -- END --