BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1817


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          Date of Hearing:  April 6, 2016 


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          AB 1817  
          (Mark Stone) - As Introduced February 8, 2016


          SUBJECT:  Solid waste:  garbage and refuse disposal districts:   
          board of directors.


          SUMMARY:  Increases the cap on compensation for the board of  
          directors of a garbage and refuse disposal district.   
          Specifically, this bill:   


          1)Deletes existing law that provides board members of garbage  
            and refuse disposal districts (board members) with a maximum  
            of $50 per diem per meeting, and instead, requires board  
            members to receive compensation that does not exceed $100 per  
            meeting, as specified.   



          2)Deletes the existing monthly limit for each board member of  
            $100 in a calendar month, and instead, authorizes a board  
            member to receive compensation for up to six days in a  
            calendar month. 



          3)Authorizes a board member to receive compensation for a day of  
            service rendered as director by request of the board.  








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          4)Removes the process by which the board establishes the amount  
            of compensation and includes the amount in its minutes.  



          5)Makes other technical changes.  



          EXISTING LAW:   





          1)Requires the board of directors for a garbage and refuse  
            disposal district to consist of no less than three members and  
            establishes an appointment process for the board.  



          2)Authorizes board members to be reimbursed for their actual and  
            necessary expenses incurred in the performance of official  
            business of the district, as approved by the board.  



          3)Authorizes board members to receive a maximum of $50 per diem  
            for each day of attendance at board meetings, with the per  
            diem to be established by the board and entered upon its  
            minutes.  



          4)Prohibits board members from receiving more than $100 per diem  
            in any calendar month.  








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          5)Requires, in addition to compensation in 3), and 4), above,  
            the chairperson and secretary of the district board to receive  
            monthly compensation established by the board.  



          FISCAL EFFECT:  None














          COMMENTS:  





          1)Garbage and Refuse Disposal Districts.  Several types of  
            independent special districts are authorized to address  
            garbage and waste collection needs, including community  
            services districts, county water districts, municipal utility  
            districts, municipal water districts, public utility  
            districts, and sanitary districts.  Additionally, existing law  
            outlines a principal act for garbage and refuse disposal  
            districts to maintain and provide a site for the disposal of  
            garbage and refuse.  The district board is authorized to make  








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            and enforce all rules and regulations necessary for the  
            administration and government of the district and of the  
            operation and maintenance of the garbage and refuse disposal  
            site acquired by the district.  



            Current law requires the board to consist of at least three  
            directors and provides an appointment process for a district  
            depending on how many cities are included in the boundaries.   
            The Committee has only identified one district formed pursuant  
            to this principal act, the Monterey Regional Waste Management  
            District.  The principal act prohibits any district from being  
            formed after October 1, 1961.  





          2)Monterey Regional Waste Management District.  In 1951, the  
            Monterey Peninsula Garbage and Refuse Disposal District was  
            formed to find a solution to the dumping and burning of waste  
            on coastal sand dunes in Pacific Grove, Monterey, and Carmel.   
            In 1987, the Monterey Peninsula Garbage and Refuse Disposal  
            District changed its name to the Monterey Regional Waste  
            Management District (MRWMD).  MRWMD provides solid waste  
            management and resource recovery, operates the 315 acre  
            Monterey Peninsula Landfill, and develops and operates a  
            number of other waste diversion and recycling facilities and  
            programs.  For example, MRWMD provides a safe collection  
            program for household hazardous waste and operates landfill  
            gas-to-electric energy plants.  MRWMD is governed by a  
            nine-member board appointed to four-year terms.  The board is  
            composed of seven members appointed by each of the seven  
            cities within the district's boundaries, one member for the  
            unincorporated area, and one director-at-large.  











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          3)Bill Summary.  Existing law authorizes board members to  
            receive a maximum of $50 per diem for each day of attendance  
            at board meetings, with the per diem to be established by  
            order of the board and entered upon its minutes, and a maximum  
            of $100 per diem in any calendar month.  This bill establishes  
            new thresholds for compensation by requiring that a board  
            member receive compensation in an amount not to exceed $100  
            per day of attendance at a meeting of the board for each day  
            of service rendered as a director by request of the board.   
            Additionally, this bill increases the monthly limit of  
            compensation to allow a board member to receive compensation  
            up to six days in a calendar month.  This bill is sponsored by  
            MRWMD.  



          4)Author's Statement.  According to the author, "MRWMD Board of  
            Directors receives no more than fifty dollars per diem not to  
            exceed one hundred dollars per calendar month.  This code  
            section was enacted over 26 years ago.  This bill updates  
            obsolete compensation to more closely reflect workload and  
            that of other special districts.  Currently, MRWMD has an  
            increased number of responsibilities and obligations due to an  
            expanding residential and commercial population and new  
            statutorily-required duties.  After a code change in 1990, the  
            focus of the MRWMD moved towards recycling and waste  
            diversion.  This change required an increase in number of  
            employees as well as an increase in the amount of  
            participation by the Board.  
            "The Board now oversees a $24 million budget, the recovery of  
            recyclable materials in the waste stream, composting of green  
            waste and food waste, receipt of non-hazardous liquid waste,  
            disposal of municipal solid waste, and the operation of a  
            landfill gas-to-electric energy system.  With the Board  
            attending many more than two meetings per month and often  
            attending other trainings and workshops, this bill merely  
            proposes to update the Board of Directors compensation to  
            align more closely with the current level of responsibility as  
            well as to mirror the compensation rates of nearly all other  








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            waste disposal districts in the state."  





          5)Suggested Amendments.  The Committee may wish to consider the  
            following amendments:
            


             a)   Comparable Compensation and Comparable Requirements.   
               Proponents argue that this bill provides garbage and refuse  
               disposal districts with compensation comparable to other  
               types of special districts.  The Committee may wish to  
               consider if the requirements for compensation contained in  
               principal acts for other types of districts like sanitary  
               districts should also be comparable.  AB 1234 (Salinas),  
               Chapter 700, Statutes of 2005, requires a governing board  
               to adopt a written policy to determine acceptable  
               compensable activities, and adopt written policies for  
               reimbursing expenses.  The Committee may wish to specify  
               that the requirements to establish written policies put in  
               place by AB 1234 are contained in the principal act for  
               garbage and refuse disposal districts, as follows: 



               (c) For purposes of this section, the determination of  
               whether a district board member's activities on any  
               specific day are compensable shall be made pursuant to  
               Article 2.3 (commencing with Section 53232) of Chapter 2 of  
               Part 1 of Division 2 of Title 5 of the Government Code.





               (e) Reimbursement for these expenses is subject to Sections  








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               53232.2 and 53232.3 of the Government Code.





             b)   Determination of Compensation.  This bill removes the  
               requirement that per diem be established by order of the  
               board.  The Committee may wish to require the board to  
               provide by ordinance or resolution that each board member  
               receives compensation in an amount not to exceed $100.  



          6)Arguments in Support.  MRWMD argues that board members have  
            taken on considerable responsibilities, including attendance  
            at multiple meetings often exceeding two in a calendar month.  
            Additionally, MRWMD argues board members should be afforded  
            the same compensation as members of virtually all other public  
            waste disposal districts in California and that this bill  
            brings their board members to a fair degree of equity with  
            their counterparts within the state.  



          7)Arguments in Opposition.  None on file.  
            




















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          REGISTERED SUPPORT / OPPOSITION:




          Support


          Monterey Regional Waste Management District [SPONSOR]


          California Special Districts Association


          Monterey County Business Council


          Monterey Peninsula Chamber of Commerce


          Save Our Shores


          The Offset Project




          Opposition










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          None on file




          Analysis Prepared by:Misa Lennox / L. GOV. / (916) 319-3958