BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1217| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. AB 1217 Page 2 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 AB 1217 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. AB 1217 Page 4 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 AB 1217 Page 5 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, AB 1217 Page 6 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 **** END ****