BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |AB 1817 |Hearing |5/11/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Mark Stone |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |4/11/16 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Weinberger | |: | | ----------------------------------------------------------------- Solid waste: garbage and refuse disposal districts: board of directors Increases the maximum amounts of compensation that can be provided to a garbage and refuse disposal district's board of directors. Background State law allows a county board of supervisors to form a garbage and refuse disposal district after determining, by resolution, that a portion of the county is in need of a site for the disposal of garbage and refuse and should be formed into a district (AB 1054, Silhman, 1951). State law prohibits any garbage and refuse disposal district from being formed after October 1, 1961. A garbage and refuse disposal district's board of director may receive a maximum of $50 per diem for each day of attendance at board meetings and a maximum of $100 per diem in any calendar month (SB 675, Grunsky, 1975). Board members may be reimbursed for their actual and necessary expenses incurred in the performance of official business of the district, as approved by the board. These limits on board members' compensation are lower than the limits for board members of some other types of special districts that provide waste disposal services. For example, state law allows community services district and AB 1817 (Mark Stone) Page 2 of ? sanitary district board members to be compensated up $100 per meeting for up to six meetings per month and allows those districts' boards to adopt ordinances that increase board members' compensation. According to data collected by the State Controller's Office, the Monterey Regional Waste Management District (MRWMD) is the only special district still in existence that operates pursuant to the statutes that govern garbage and refuse disposal districts. MRWMD was created in 1951 as the Monterey Peninsula Garbage & Refuse Disposal District in response to the dumping and burning of waste on coastal sand dunes in Pacific Grove, Monterey, and Carmel. In 1987, the 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. MRWMD is governed by board of directors comprised of nine members who are appointed to four-year terms. MRWMD officials note that as its board of director's responsibilities has increased, the principal act that limits directors' compensation remains unchanged. They want the Legislature to amend the statute that limits directors' compensation to more closely align with statutes that govern other waste disposal districts' boards. Proposed Law Assembly Bill 1817 increases the cap on compensation for a garbage and refuse disposal district's board of directors. Specifically, AB 1817: Deletes the $50 per meeting limit on the amount of per diem that a director can receive and, instead, authorizes the board, by ordinance or resolution, to provide compensation that does not exceed $100 per meeting or for each day of service rendered as director by request of the board. Deletes the $100 monthly limit on the amount of per diem received by each director and, instead, authorizes a board member to receive compensation for up to six days in a AB 1817 (Mark Stone) Page 3 of ? calendar month. Provides that reimbursement and compensation for meetings are subject to existing law, which requires a governing board to adopt a written policy to determine acceptable compensable activities, and adopt written policies for reimbursing expenses. Makes other technical changes. State Revenue Impact No estimate. Comments 1. Purpose of the bill . The $50 per meeting and $100 per month limits on compensation received by MRWMD's Board of Directors were enacted in 1975. During the past four decades, MRWMD has increased its responsibilities and obligations due to an expanding residential and commercial population and new statutorily-required duties. MRWMD directors now oversee 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. Board members attend many more than two meetings per month and often attend other trainings and workshops. AB 1817 proposes to update the statute governing MRWMD directors' compensation to align more closely with directors' expanded responsibilities as well as to mirror the compensation rates of other waste disposal districts in the state. 2. A garbage and refuse disposal district, by any other name, would smell as sweet . State law allows several types of independent special districts to provide solid waste handling and recycling services, including: community services districts, county water districts, municipal utility districts, public utility districts, and sanitary districts. MRWMD is apparently the only special district that is governed by the state laws that, until 1961, allowed for the establishment of "garbage and refuse disposal districts." Rather than requiring the AB 1817 (Mark Stone) Page 4 of ? Legislature to periodically update MRWMD's outdated governing statutes to conform to statutes that govern other districts, it may make sense to convert MRWMD to a community services district, utility district, or other type of special district that is governed by a more-widely-used principal act. Six years ago, the Legislature enacted an "expedited reorganization" process by which a local agency formation commission (LAFOC) could convert resort improvement districts or municipal improvement districts into community services districts (SB 1023, Wiggins, 2010). The Committee may wish to consider amending AB 1817 to establish a similar "expedited reorganization" process by which the Monterey County LAFCO could convert the MRWMD into another type of special district that can provide solid waste services pursuant to a more modern principal act. Assembly Actions Assembly Local Government Committee: 7-1 Assembly Floor: 53-16 Support and Opposition (5/5/16) Support : Monterey Regional Waste Management District; California Special Districts Association; Monterey County Business Council; Monterey Peninsula Chamber of Commerce; Save Our Shores; The Offset Project. Opposition : Unknown. -- END -- AB 1817 (Mark Stone) Page 5 of ?