BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1217|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 1217
          Author:   Daly (D) 
          Amended:  8/2/16 in Senate
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  7-0, 6/29/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,  
            Pavley

           ASSEMBLY FLOOR:  47-25, 5/26/15 - See last page for vote

           SUBJECT:   Orange County Fire Authority


          SOURCE:    Author

          DIGEST:   This bill prohibits the Orange County Fire Authority  
          from appointing alternates for its governing board's members.


          ANALYSIS:    Existing law, 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).


          This bill, notwithstanding any other law, prohibits the  
          composition of the Board of Directors of the Orange County Fire  
          Authority (OCFA), which is a JPA, from including alternate  
          members.










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          Background


          OCFA is a JPA 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  
          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.


          Comments


          Purpose of the bill.  In response to concerns that the size and  
          structure of OCFA's Board of Directors created governance  
          challenges, previous versions of this bill would have decreased  
          the board's size and restructured the process by which member  
          agencies appointed representatives to the board.  Conversations  
          prompted by this bill's previous versions led a majority of  
          OCFA's member agencies to conclude that the Authority could  







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                                                                    Page  3


          address some of the governance concerns raised about the board  
          by eliminating the 24 alternate board member positions.   
          Although the member agencies approved an 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.  This bill is now a  
          narrowly-focused bill that simply codifies in state law the  
          changes that OCFA's member agencies approved last year.  In  
          practice, this bill makes no change to the existing structure or  
          function of OCFA's governing board.  This bill 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.


          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, this bill 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 this bill 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.


          Special legislation.  The California Constitution prohibits  
          special legislation when a general law can apply (Article IV,  
          §16).  This bill contains findings and declarations explaining  
          the need for legislation that applies only to the OCFA.











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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified8/1/16)


           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:   (Verified8/5/16)


          Association of California Cities - Orange County
          California Association of Joint Powers Authorities
          City of Aliso Viejo
          City of Buena Park
          City of Burlingame
          City of Calimesa
          City of Costa Mesa
          City of Cypress
          City of Dana Point
          City of Fillmore
          City of Fountain Valley
          City of La Canada Flintridge
          City of La Palma
          City of Laguna Hills
          City of Laguna Niguel
          City of Laguna Woods
          City of Lake Elsinore
          City of Lake Forest
          City of Lincoln
          City of Los Alamitos
          City of Menifee
          City of Mission Viejo
          City of Moorpark
          City of Norwalk







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          City of Orland
          City of Placentia
          City of Plymouth 
          City of Rancho Cordova
          City of Rancho Mirage
          City of Rancho Santa Margarita
          City of Rocklin
          City of Salinas
          City of San Carlos
          City of San Clemente
          City of San Juan Capistrano
          City of Seal Beach
          City of Stanton
          City of Tehachapi
          City of Thousand Oaks
          City of Tustin
          City of Villa Park
          City of West Hollywood
          City of Westminster
          City of Yorba Linda
          League of California Cities
          Orange County Council of Governments
          Orange County Fire Authority
          Orange County Mosquito and Vector Control District
          Orange County Sanitation District
          Orange County Supervisor Lisa A. Bartlett
          Public Agency Risk Sharing Authority
          Schools Excess Liability Fund


          ARGUMENTS IN SUPPORT:     Supporters argue that this bill  
          prevents OCFA from restoring an unwieldy board structure that  
          made consensus and governance difficult.


          ARGUMENTS IN OPPOSITION:     Opponents argue that this bill sets  
          a precedent that erodes a 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.


          ASSEMBLY FLOOR:  47-25, 5/26/15
          AYES:  Alejo, Bonilla, Bonta, Brown, Burke, Calderon, Campos,  







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            Chau, Chiu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman,  
            Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gomez,  
            Gonzalez, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer,  
            Lopez, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell,  
            Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood,  
            Atkins
          NOES:  Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Dahle, Beth Gaines, Gallagher, Grove, Hadley, Jones, Kim,  
            Lackey, Levine, Maienschein, Mayes, Melendez, Obernolte,  
            Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Bloom, Chávez, Chu, Gipson, Gordon, Harper,  
            Linder, Mathis

          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
          8/5/16 11:03:42


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