BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |SB 1378                          |Hearing    |5/4/16   |
          |          |                                 |Date:      |         |
          |----------+---------------------------------+-----------+---------|
          |Author:   |Morrell                          |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |4/25/16    Amended               |Fiscal:    |No       |
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          |Consultant|Weinberger                                            |
          |:         |                                                      |
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                  San Gorgonio Pass Water Agency: board of directors



          Reduces, from seven to five members, the size of the San  
          Gorgonio Pass Water Agency's Board of Directors by eliminating  
          two at-large elected director seats on the board.


           Background 

           The San Gorgonio Pass Water Agency (SGPWA) is a state water  
          project contractor established by the enactment of the San  
          Gorgonio Pass Water Agency Act (AB 2655, Cologne, 1961).  The  
          Agency delivers wholesale water and provides groundwater  
          management services within an approximately 225 square mile  
          service area that encompasses the cities of Banning, Beaumont,  
          and Calimesa in Riverside County.  SGPWA is governed by an  
          elected seven member board of directors.  Five directors are  
          elected to represent divisions within the agency's boundaries,  
          while two are elected at-large. Each director is elected for a  
          four-year term. 

          Currently, one of the at-large seats on the agency's board is  
          held by a director who was appointed last year to fill a vacancy  
          and the other at-large seat is held by a director whose  
          four-year term end this year.  As a result, both seats will be  
          on this November's general election ballot.  In recent years,  
          the agency's board of directors has considered eliminating the  
          two at-large directors' seats as a cost-saving measure.  On July  







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          6, 2015, SGPWA's Board of Directors voted 6-0 to approve a  
          resolution supporting a reduction in the board's size to five  
          members and directing SGPWA's general manager to pursue  
          legislation to reduce the board's size.


           Proposed Law

           Senate Bill 1378 amends the San Gorgonio Pass Water Agency Act  
          to reduce, from seven to five members, the size of SGPWA's Board  
          of Directors by deleting statutory language requiring the board  
          to include two directors elected at-large and making other  
          conforming statutory changes. 


           State Revenue Impact

           No estimate.


           Comments

           1.  Purpose of the bill  . Since at least 2011, the SGPWA's board  
          has considered the possibility of saving costs by reducing the  
          governing board's size.  By eliminating the two-at large  
          directors positions, SGPWA anticipates that significant cost  
          saving will result from lower election costs for its board of  
          directors.  The Agency may realize additional savings from  
          reduced payments to board members for meetings, travel,  
          education, and medical reimbursements. Background information  
          provided to SGPWA's board members last year estimated that "cost  
          savings to the taxpayers with two fewer directors will be more  
          than $425,000 over the next 10 years."  SB 1378 brings the size  
          of SGPWA's governing in line with many other special districts'  
          five-member boards and, in doing so, generates much-needed cost  
          savings for district residents. 

          2.   Let the voters decide  ?  SGPWA's existing governing board  
          structure allows each voter within the Agency's boundaries to be  
          represented by three of the Agency's seven elected directors  
          (one elected to represent the district in which a voter resides  
          and two elected at-large to represent all voters).  By  
          eliminating the two-at-large directors' offices, SB 1378 could  
          be seen by some voters as reducing their representation on the  








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          board and, therefore, their ability to influence the board's  
          decisions.  While increasing efficiency and reducing public  
          expenditures are worthwhile goals, it is unclear whether SGPWA's  
          voters are willing to achieve this goal by potentially eroding  
          their ability to hold board members accountable through the  
          ballot.  The Committee may wish to consider amending SB 1378 to  
          require SGPWA to seek its voters' approval to eliminate the two  
          at-large elected director position on its governing board.

          3.   Timing is everything  .  As a regular statute, SB 1378 would  
          take effect on January 1, 2017 if it is enacted.  As a result,  
          the SGPWA will need to fill the two at-large elected director  
          offices in 2016, regardless of whether or not SB 1378 is  
          enacted.  If SB 1378 is enacted, it is ambiguous whether the two  
          at-large directors would vacate their offices immediately on  
          January1, 2017, or whether they would hold those offices for the  
          duration of their terms.  The California Constitution allows  
          bills with urgency clauses to take effect immediately if they're  
          needed for the public peace, health, and safety.  However, the  
          California Constitution prohibits an urgency statutes from  
          abolishing any office (Article IV, §8(d)), so SB 1378 cannot  
          take effect before the at-large director's terms expire this  
          year.

          4.  Let's get technical  .  The Committee may wish to consider  
          amending SB 1378 to add quotation marks after the period on page  
          2, line 19 of the bill.


           Support and  
          Opposition   (4/28/16)


           Support  :  San Gorgonio Pass Water Agency.


           Opposition  :  Unknown.



                                      -- END --

          









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