BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  SB 1205                    HEARING:  4/7/10
          AUTHOR:  Corbett                     FISCAL:  Yes
          VERSION:  3/24/10                    CONSULTANT:   
          Weinberger
          
                      BAY AREA DISASTER RECOVERY AUTHORITY

                           Background and Existing Law  

          The Association of Bay Area Governments is a voluntary  
          council of governments (COG) created by the Bay Area's nine  
          counties and 101 cities through a joint powers agreement.   
          Like other COGs, ABAG prepares long-term regional plans and  
          has other statutory planning duties.

          The regional threat posed by earthquakes and other major  
          natural disasters is among the most significant challenges  
          confronting Bay Area planners.  To improve the chances of  
          securing funding for long-term disaster recovery planning  
          projects and to improve the effectiveness of disaster  
          planning efforts, local officials want ABAG to create a  
          separate authority to focus specifically on planning for  
          long-term disaster recovery in the Bay Area.


                                   Proposed Law  

          Senate Bill 1205 creates the San Francisco Bay Area  
          Disaster Recovery Authority with jurisdiction extending  
          throughout the San Francisco Bay Area.  The jurisdiction of  
          the Authority is not subject to the Cortese-Knox-Hertzberg  
          Local Government Reorganization Act.

          SB 1205 contains extensive legislative declarations  
          regarding the need to create a regional entity to generate  
          and allocate resources for development of long-term  
          disaster recovery plans, protocols, and mitigation projects  
          for the San Francisco Bay Area.  The bill expresses the  
          Legislature's intent that the Authority should complement  
          existing efforts by cities, counties, districts, and other  
          local, regional, and state entities, related to addressing  
          the bill's goals.

           Purposes  .  SB 1205 requires the Authority to create a  




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          long-term regional recovery plan, to be implemented before  
          and after an earthquake or other disaster occurs in the Bay  
          Area, by cooperating with various stakeholders in the Bay  
          Area, including the cities, counties, special districts,  
          school districts, emergency operators, hospitals, members  
          of the public, private business, and nongovernmental  
          organizations.

           


           Governance  .  SB 1205 requires the Authority to be governed  
          by a board consisting of all members of the ABAG Regional  
          Planning Committee and the following members, appointed by  
          ABAG:
           At least four members representing lifeline  
            infrastructure districts such as water and wastewater,  
            power and energy, telecommunications, and transit.
           A member representing a school district or county board  
            of education.
           A member representing a nonprofit service delivery  
            agency.
           A member of the Bay Area Super-Urban Area Security  
            Initiative.
           At least four members representing private sector  
            business, economics, and planning organizations.

          Board members serve at the pleasure of the appointing  
          authority and the appointing agency must fill vacancies  
          within 90 days.

          SB 1205 specifies that board members must exercise their  
          independent judgment on behalf of the interests of the  
          residents, the property owners, and the public as a whole  
          in furthering the bill's intent and purposes. 

          The board elects its own chair and vice chair.  The Chair  
          must fix the time and place of the board's first meeting.   
          After the first meeting, the board must hold meetings at  
          times and places determined by the board.

          Within six months of the board's first meeting, the board  
          must convene a Bay Area Disaster Recovery Administrative  
          Committee to assist and advise the board in carrying out  
          its functions. The Administrative Committee must meet  
          regularly.  The Authority determines the Administrative  





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          Committee's membership based upon criteria that provide a  
          broad representation of community and agency interests and  
          geographical diversity within the Authority's jurisdiction  
          over the long-term disaster recovery in the San Francisco  
          Bay Area.

          SB 1205 requires the Authority to comply with the Brown  
          Act, the Public Records Act, and the Political Reform Act. 

           Powers  .  SB 1205 authorizes the Authority to raise funds  
          and award grants to public and private entities, including  
          owners or operators of public and private property within  
          the San Francisco Bay area, for the purposes of maintaining  
          and enhancing the region's resiliency following a disaster  
          by reducing the potential loss of life, property damage, or  
          environmental degradation, and accelerating economic  
          recovery from those disasters.  Grants awarded by the  
          Authority may be used to support all phases of planning,  
          construction, monitoring, operation, and maintenance for  
          eligible projects.  The bill requires the Authority, in  
          reviewing and assessing projects, solicit input from its  
          Administrative Committee.  SB 1205 requires the Authority  
          to give priority to projects that address either of the  
          following:
           The highest priority mitigation strategies identified in  
            the Federal Emergency Management Agency's most recent  
            multijurisdictional Local Hazard Mitigation Plan.
           Additional needs identified in the recovery plan. 

          In addition, the Authority may:
           Sue and be sued.
           Engage counsel and other professional services.
           Enter into contracts.
           Enter into joint powers agreements.
           Use interim or temporary staff, as specified.

          SB 1205 prohibits the Authority from acquiring or owning  
          real property.

           Finances  .  SB 1205 specifies that the Authority must be  
          funded through gifts, donations, grants, state or local  
          bonds, assessments, other appropriate funding sources, and  
          other types of financial assistance from public and private  
          sources. 

          In addition, the Authority can:





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           Apply for and receive grants from federal and state  
            agencies.
           Solicit and accept gifts, fees, grants, and allocations  
            from public and private entities.
           Receive and manage a dedicated revenue source.
           Deposit or invest moneys in banks or financial  
            institutions.

          SB 1205 requires regular audits of the Authority's accounts  
          and records.  The board must maintain accounting records  
          and must report accounting transactions in accordance with  
          generally accepted accounting principles adopted by the  
          Government Accounting Standards Board of the Financial  
          Accounting Foundation for both public reporting purposes  
          and for reporting of activities to the State Controller.   
          SB 1205 requires the board to provide for annual financial  
          reports. The board must make copies of the annual financial  
          reports available to the public.  

           Automatic termination  .  The provisions of SB 1205 terminate  
          on January 1, 2030.
                                         

                                    Comments
           
          1.   Be prepared  .  The failure to properly manage and plan  
          for disasters can have catastrophic and lasting  
          consequences throughout a region.  The San Francisco Bay  
          Area will experience a major earthquake in the future.   
          While the Bay Area has focused on risk mitigation  
          strategies and emergency response preparation, there has  
          been less attention to the long-term recovery period that  
          will follow a major disaster such as an earthquake.  After  
          implementing short-term disaster response plans to address  
          the region's immediate life and safety needs, what happens  
          in the months and years following the disaster will  
          determine whether the region recovers and persists as a  
          vibrant community and driver of the nation's prosperity, or  
          whether the region suffers long-term depopulation and  
          economic decline.  SB 1205 improves the Bay Area's  
          long-term disaster recovery capacity by creating a regional  
          Authority focused exclusively on generating and allocating  
          resources for the Bay Area's long-term disaster planning  
          and recovery efforts.

          2.   Innovation or duplication  ?  The San Francisco Bay  





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          Area's residents and elected officials have been thinking  
          regionally for years.  The Bay Area is home to several  
          single-purpose regional agencies, including ABAG.  As early  
          as 1970, ABAG's groundbreaking comprehensive regional plan  
          included an earthquake hazards and planning component.   
          Today, ABAG is a leader among planning agencies for its  
          earthquake and hazards planning program.   The Committee  
          may wish to consider whether the Bay Area needs yet another  
          regional government agency.  Why can't ABAG already do what  
          SB 1205 proposes that the new Authority should do?

          3.   DIY  .  If Bay Area officials want a separate Authority  
          to address regional disaster planning, the Joint Exercise  
          of Powers Act already allows them to create a separate  
          government organization to exercise powers that the member  
          agencies hold in common.  ABAG, itself, is such a joint  
          powers agency.  The Committee may wish to consider why the  
          Legislature should play any role in establishing a regional  
          authority that Bay Area officials can create themselves.

          4.   Hybrid governance  .  SB 1205 requires the Authority's  
          governing board to be composed of all 34 members of its  
          Regional Planning Committee plus at least 11 other members  
          appointed by ABAG.  The Regional Planning Committee's  
          membership and the additional ABAG appointees are a mix of  
          public officials and representatives of private entities,  
          including: the Silicon Valley Leadership Group, the Sierra  
          Club, the Homebuilders Association of Northern California,  
          the California Teachers Association, and other private  
          sector business, economics, and planning organizations.  SB  
          1205 allows these non-governmental representatives to  
          exercise governmental powers, including the power to  
          allocate public funds.  The Committee may wish to consider  
          amending SB 1205 to require that the Authority's governing  
          board be comprised of a fixed number of public officials,  
          with private sector representatives participating in an  
          advisory capacity.

          5.   Room for improvement  .  While the bill's intentions are  
          clear, some of its language is not.  The Committee may wish  
          to consider the following amendments:
           Change the name "Bay Area Post Recovery Authority" to the  
            "Bay Area Disaster Recovery Authority" (page 2, line 10).
           Delete the definition of the term "elected official,"  
            which is not used in the bill (page 7, lines 6 and 7).
           Replace references to the governing board members'  





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            "appointing authority" and "appointing agency" with  
            references to "ABAG" (page 8, lines 25-27).
           Add a sentence to the language that lists the Authority's  
            sources of funding to clarify that nothing in the Title  
            being added by SB 1205 is intended to allow the Disaster  
            Recovery Authority to either incur debt or raise revenue  
            by levying taxes, assessments, or fees (page 11, line  
            19).

          6.   Mandate  .  The California Constitution requires the  
          state to reimburse local governments for the costs of new  
          or expanded state mandated local programs.  Because SB 1205  
          imposes new duties on the Association of Bay Area  
          Governments, Legislative Counsel says that the bill imposes  
          a new state mandate.  SB 1205 disclaims the state's  
          responsibility for providing reimbursement by citing ABAG's  
          authority to charge its members for its costs in  
          implementing the bill's provisions.

           
                        Support and Opposition  (4/1/10)

           Support  :  Association of Bay Area Governments, County of  
          Solano, Cities of Brisbane, Hercules, and Los Gatos, South  
          San Francisco City Council Member Richard Garbarino, Union  
          City Mayor Mark Green, San Mateo County Supervisor Rose  
          Jacobs Gibson, Napa County Supervisor Mark Luce, Clayton  
          City Council Member Julie Pierce, Clayton Mayor Hank  
          Stratford.

           Opposition  :  Unknown.