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HomeMy WebLinkAboutAgenda Report - August 17, 2016 C-11TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Receive Report Regarding Communication Pertaining to Assembly Bill 1217 (Daly) — Orange County Fire Authority MEETING DATE: August 17, 2016 PREPARED BY: City Clerk RECOMMENDED ACTION Receive report regarding communication pertaining to Assembly Bill 1217 (Daly) — Orange County Fire Authority. BACKGROUND INFORMATION: The City received a request for communication from the League of California Cities regarding AB 1217 (Daly) — Orange County Fire Authority. There was a need to send a letter of opposition immediately in Tight of a pending hearing. AB 1217 is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. The bill codifies a change the Orange County Fire Authority (OCFA) already made to its governance structure, in prohibiting the inclusion of alternates as part of the composition of the OCFA board of directors. The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA) and sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. This measure invokes a core issue for cities everywhere: the preservation of local control. The attached letter, electronically signed by the Mayor, was sent out on August 9, 2016. A copy of the initial request, along with the text of the bill, is also attached. This report is provided for informational purposes only, pursuant to policy. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. nnifer Mferraiolo ity Clerk APPROVED: ep en S hwab.. er, City Manager N:Wdministration\CLERK\Council\COUNCOM\LeagueReceiveReportMaster.doc CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov cityclerk(a.lodi.gov August 9, 2016 STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney The Honorable Tom Daly Member, California State Assembly State Capitol, Room 3126 Sacramento, CA 95814 FAX: (916) 319-2169 RE: AB 1217 (Daly) — Orange County Fire Authority (as amended June 23, 2016) Notice of Opposition The City of Lodi respectfully opposes Assembly Bill 1217. This measure is a direct assault upon local control. It is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. With the June 23 amendments, the bill codifies a change the Orange County Fire Authority (OCFA) already made to its governance structure, in prohibiting the inclusion of alternates as part of the composition of the OCFA board of directors. The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA). This sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. Assembly Bill 1217 would employ the mechanism of state legislation to alter the governance structure of a locally -created joint powers authority, the Orange County Fire Authority, formed by local governments pursuant to the method prescribed in the Government Code. This measure invokes a core issue for cities everywhere: the preservation of local control. Current law on this matter is very clear. Joint powers authorities are by definition an expression of local government in which two or more local public agencies are authorized to enter into an agreement to jointly exercise any power common to the voluntarily contracting parties for a mutually -agreed upon purpose. The very essence of such entities is local control. Their governance structure is decided upon by the local agency member participants as part of the voluntary formation agreement among the participating local agencies. Should disputes subsequently arise about that governance structure or any other aspect of this voluntary agreement, mechanisms are provided under existing law to resolve them at the local level. Moreover, there are also clear provisions in this and other instances for any of the cooperating parties to withdraw from such voluntary agreements if they disagree with the governance or any other aspect of the agreement. AB 1217 is a profoundly disturbing precedent in attempting to undermine provisions of existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a joint powers authority — an entity that by definition has no relation to matters of statewide concern. This is a local matter best resolved at the local government level. State intervention in such a matter is therefore unjustified. For these reasons, the City of Lodi respectfully opposes this legislation. Sincerely, /4! Nana �iaced Mark Chandler Mayor, City of Lodi cc: Senator Cathleen Galgiani, Fax: (916) 651-4905 Assemblymember Jim Cooper, Fax: (916) 319-2109 Stephen Qualls, League of California Cities, squalls@cacities.org Meg Desmond, League of California Cities, mdesmond@cacities.org Jennifer Ferraiolo From: Stephen R. Qualls <squalls@cacities.org> Sent: Tuesday, August 09, 2016 10:08 AM Subject: URGENT: CALSS NEEDED Attachments: AB 1217_Talking Points.pdf; Action Alert AB 1217 (Daly) Local Control JPAs_ 08.08.16.docx; SAMPLE OPPOSE LETTER_AB 1217_June 29.docx At first this bill appears to be only a bout Orange County. But in actuality, it's a precedent setting move by the state to take over local control that has worked perfectly well for years. Please consider contacting your legislators and sending the attached letter asap. if you have any questions, please let me know. Thank you, ACTION ALERT!! AB 1217 (Daly) Orange County Fire Authority Local Control over Joint Powers Authorities at Risk OPPOSE Background for AB 1217 (Daly): Legislation currently moving through the Senate will endanger the ability of local governments to determine for themselves the governance structure of joint powers authorities. AB 1217 (Daly) represents a very troubling precedent in using statewide legislation to interfere with the governance structure for a joint powers authority (JPA) that was established by participating local agencies. Specifically, AB 1217 provides that the Board of Directors of a specific JPA, Orange County Fire Authority, cannot include alternate members. This represents state micromanagement of a local agency which under existing JPA law has been set up to be self-governing. It establishes the dangerous precedent of state interference in the governance structure of a local agency. It also begs the question of why a state law is necessary to implement a change that a JPA has already made on its own. The League has helped coordinate opposition that has caused the Senate Republican Caucus in the Legislature Senate to switch its vote recommendation to its members from "Support" to "None." Under current law, local public agencies can enter into a JPA at any time to jointly exercise any power common to the contracting parties for a mutually agreed upon purpose. These agreements are purely voluntary. State law has never before reached down to meddle in the governance affairs of a JPA. The governance structure of a JPA is decided upon by the local agency participants at the time the JPA is formed. The very essence of such entities is local control. If disputes arise about the governance structure or any other aspect of the voluntary agreement that created the JPA, mechanisms are provided under existing law to resolve them at the local level. State legislation is not necessary. Any of the cooperating parties can withdraw from such voluntary agreements if they disagree with the governance or any other aspect of the JPA agreement. With current law providing a mechanism to make any necessary changes to a JPA's governance or any other aspect of its operations, it begs the question why statewide legislation is necessary — particularly when that legislation is disturbingly precedent -setting in its interference in a matter that clearly falls within the scope of local control. 1 AB 1217 attempts to undermine existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a JPA — an entity that by definition has no relation to matters of statewide concern. Local governments throughout California should be concerned about this measure, and strongly consider opposing it. Whatever the motivation for introducing this legislation, it is an attempt to intervene in a local matter that is best resolved at the local government level. ACTION: AB 1217 is on the Senate Floor and could be heard tomorrow. Cities are encouraged to CALL their Senator as soon as possible to URGE a NO VOTE. You may find contact information for your Senator by following this link: http://findyourrep.legislature.ca.gov/. Talking Points: • As written, AB 1217 represents a dangerous precedent of legislative interference in Joint Powers Authority governance. • AB 1217 is an unjustified micromanagement of a matter internal to a joint powers authority. • This bill undermines local control by usurping the authority of a JPA to set its own policies. • This measure endangers the ability of local governments to determine for themselves the governance structure of joint powers authorities. It is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. • The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA). This sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. • Joint powers authorities are by definition an expression of local government in which two or more local public agencies are authorized to enter into an agreement to jointly exercise any power common to the voluntarily contracting parties for a mutually agreed upon purpose. This measure invokes a core issue for cities everywhere: the preservation of local control. 2 • AB 1217 is a profoundly disturbing precedent in attempting to undermine provisions of existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a joint powers authority — an entity that by definition has no relation to matters of statewide concern Stephen Qualls Central Valley Regional Public Affairs Manager League of California Cities 209-614-0118 Fax 209-883-0653 squalls@cacities.org<mailto:squalls@cacities.org> [Description: Description: LCC_Logo_SM] [https://mail.cacities.org/owa/attachment.ashx?id=RgAAAACy8fHTR2LKSbH7v1WA%2bKroBwCJIF8QxE1YR5pVkCgOVZ7 pAAAGc5DHAACi1U1kD4vzS51QTLjAf8aNAAAyvLINAAAJ&attcnt=1&attid0=BAABAAAA&attcid0=image002.png%4001CF9 F55.154BCF00] Strengthening California Cities through Advocacy and Education To expand and protect local control for cities through education and advocacy in order to enhance the quality of life for all Californians. <https://mail.cacities.org/owa/redir.aspx?C=9balcebeda914a8d8b298c0154b06ac0&URL=http%3a%2f%2fwww.cacities . o rg%2fAC> PLEASE DO NOT distribute political campaign advocacy information from public (city hall) computers, on city time, or using public resources, even if it's from your personal email account. If in doubt, check with your city attorney.?? ***Disclaimer***Please Note: Please take the following precautions if this email is about a CITIPAC event. Though it is not illegal for you to receive this notice via a city e-mail address, you should not respond to it or forward it using public resources. You may however forward this message to your non-public e-mail account for distribution on non-public time. If you have questions about the event or need additional information, please contact Mike Egan at (916) 658-8271 or egan@cacities.org 3 AB 1217 (Daly) Orange County Fire Authority Local Control over Joint Powers Authorities at Risk OPPOSE Talking Points: • As written, AB 1217 represents a dangerous precedent of legislative interference in Joint Powers Authority governance. • AB 1217 is an unjustified micromanagement of a matter internal to a joint powers authority. • This bill undermines local control by usurping the authority of a JPA to set its own policies. • This measure endangers the ability of local governments to determine for themselves the governance structure of joint powers authorities. It is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. • The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA). This sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. • Joint powers authorities are by definition an expression of local government in which two or more local public agencies are authorized to enter into an agreement to jointly exercise any power common to the voluntarily contracting parties for a mutually agreed upon purpose. This measure invokes a core issue for cities everywhere: the preservation of local control. • AB 1217 is a profoundly disturbing precedent in attempting to undermine provisions of existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a joint powers authority — an entity that by definition has no relation to matters of statewide concern. ACTION ALERT!! AB 1217 (Daly) Orange County Fire Authority Local Control over Joint Powers Authorities at Risk OPPOSE Background for AB 1217 (Daly): Legislation currently moving through the Senate will endanger the ability of local governments to determine for themselves the governance structure of joint powers authorities. AB 1217 (Daly) represents a very troubling precedent in using statewide legislation to interfere with the governance structure for a joint powers authority (JPA) that was established by participating local agencies. Specifically, AB 1217 provides that the Board of Directors of a specific JPA, Orange County Fire Authority, cannot include alternate members. This represents state micromanagement of a local agency which under existing JPA law has been set up to be self-governing. It establishes the dangerous precedent of state interference in the governance structure of a local agency. It also begs the question of why a state law is necessary to implement a change that a JPA has already made on its own. The League has helped coordinate opposition that has caused the Senate Republican Caucus in the Legislature Senate to switch its vote recommendation to its members from "Support" to "None." Under current law, local public agencies can enter into a JPA at any time to jointly exercise any power common to the contracting parties for a mutually agreed upon purpose. These agreements are purely voluntary. State law has never before reached down to meddle in the governance affairs of a JPA. The governance structure of a JPA is decided upon by the local agency participants at the time the JPA is formed. The very essence of such entities is local control. If disputes arise about the governance structure or any other aspect of the voluntary agreement that created the JPA, mechanisms are provided under existing law to resolve them at the local level. State legislation is not necessary. Any of the cooperating parties can withdraw from such voluntary agreements if they disagree with the governance or any other aspect of the JPA agreement. With current law providing a mechanism to make any necessary changes to a JPA's governance or any other aspect of its operations, it begs the question why statewide legislation is necessary — particularly when that legislation is disturbingly precedent -setting in its interference in a matter that clearly falls within the scope of local control. AB 1217 attempts to undermine existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a JPA — an entity that by definition has no relation to matters of statewide concern. Local governments throughout California should be concerned about this measure, and strongly consider opposing it. Whatever the motivation for introducing this legislation, it is an attempt to intervene in a local matter that is best resolved at the local government level. ACTION: AB 1217 is on the Senate Floor and could be heard tomorrow. Cities are encouraged to CALL their Senator as soon as possible to URGE a NO VOTE. You may find contact information for your Senator by following this link: http://findyourrep.legislature.ca.gov/. Talking Points: • As written, AB 1217 represents a dangerous precedent of legislative interference in Joint Powers Authority governance. • AB 1217 is an unjustified micromanagement of a matter internal to a joint powers authority. • This bill undermines local control by usurping the authority of a JPA to set its own policies. • This measure endangers the ability of local governments to determine for themselves the governance structure of joint powers authorities. It is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. • The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA). This sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. • Joint powers authorities are by definition an expression of local government in which two or more local public agencies are authorized to enter into an agreement to jointly exercise any power common to the voluntarily contracting parties for a mutually agreed upon purpose. This measure invokes a core issue for cities everywhere: the preservation of local control. • AB 1217 is a profoundly disturbing precedent in attempting to undermine provisions of existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a joint powers authority — an entity that by definition has no relation to matters of statewide concern. AMENDED IN SENATE AUGUST 2, 2016 AMENDED IN SENATE JUNE 23, 2016 AMENDED IN SENATE JUNE 9, 2015 CALIFORNIA LEGISLATURE -2015-16 REGULAR SESSION ASSEMBLY BILL No. 1217 Introduced by Assembly Member Daly February 27, 2015 An act to add Section 6538 6539 to the Government Code, relating to joint powers. LEGISLATIVE COUNSEL'S DIGEST AB 1217, as amended, Daly. Orange County Fire Authority. Existing law authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed. Existing law authorizes the board of supervisors of any county to contract with any local agency within the county or with the state for services relating to the prevention and suppression of fires. This bill would prohibit the composition of the Board of Directors of the Orange County Fire Authority from including alternate members. This bill would make legislative findings and declarations as to the necessity of a special statute for the Orange County Fire Authority. Vote: majority. Appropriation: no. Fiscal committee: no. State -mandated local program: no. 96 AB 1217 —2— The people of the State of California do enact as follows: 1 SECTION 1. It is thc intent of thc Legislature to reevaluate 2 the structure of the Board of Directors of the Orange County Fire 3 Authority within a reasonable period from thc effective datc of 4 this act to considcr thc effectiveness of thc size and structure of 5 thc board. 6 SEC. 2. 7 SECTION 1. Section 6538 6539 is added to the Government 8 Code, to read: 9 6-53-87 10 6539. Notwithstanding any other law, the composition of the 11 Board of Directors of the Orange County Fire Authority shall not 12 include alternate members. 13 SEC. 3. 14 SEC. 2. The Legislature finds and declares that a special law 15 is necessary and that a general law cannot be made applicable 16 within the meaning of Section 16 of Article IV of the California 17 Constitution because of the challenges faced as a result of the 18 current governance structure of the Orange County Fire Authority. 0 96 FACSIMILE COVER SHEET CITY CLERK'S OFFICE 221 WEST PINE STREET - P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 PHONE (209) 333-6702 FAX (209) 333-6807 citycIrk@lodi.gov or pfarris[7.lodi.gov DATE: August 9, 2016 FROM: Pamela M. Farris Deputy City Clerk TO: Assemblymember Tom Daly, 916-319-2169 Senator Cathleen Galgiani, 916-651-4905 Assemblymember Jim Cooper, 916-319-2109 COMMENTS: Attached please find the Notice of Opposition for AB 1217 (Daly) — Orange County Fire Authority THIS TRANSMITTAL CONTAINS 2 PAGE(S), INCLUDING THIS COVER SHEET. forms\aafaxjen.doc CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov citvclerk lodi.gov August 9, 2016 STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney The Honorable Tom Daly Member, California State Assembly State Capitol, Room 3126 Sacramento, CA 95814 FAX: (916) 319-2169 RE: AB 1217 (Daly) — Orange County Fire Authority (as amended June 23, 2016) Notice of Opposition The City of Lodi respectfully opposes Assembly Bill 1217. This measure is a direct assault upon local control. It is an attempt to intervene, without justification, in a purely local matter affecting the governance of a local agency. With the June 23 amendments, the bill codifies a change the Orange County Fire Authority (OCFA) already made to its governance structure, in prohibiting the inclusion of alternates as part of the composition of the OCFA board of directors. The bill remains a highly questionable incursion into the governance of a joint powers authority (JPA). This sets a bad legal precedent of state micromanagement via legislation, when existing law provides JPA's with broad flexibility to address internal governance challenges already. Assembly Bill 1217 would employ the mechanism of state legislation to alter the governance structure of a locally -created joint powers authority, the Orange County Fire Authority, formed by local governments pursuant to the method prescribed in the Government Code. This measure invokes a core issue for cities everywhere: the preservation of local control. Current law on this matter is very clear. Joint powers authorities are by definition an expression of local government in which two or more local public agencies are authorized to enter into an agreement to jointly exercise any power common to the voluntarily contracting parties for a mutually -agreed upon purpose. The very essence of such entities is local control. Their governance structure is decided upon by the local agency member participants as part of the voluntary formation agreement among the participating local agencies. Should disputes subsequently arise about that governance structure or any other aspect of this voluntary agreement, mechanisms are provided under existing law to resolve them at the local level. Moreover, there are also clear provisions in this and other instances for any of the cooperating parties to withdraw from such voluntary agreements if they disagree with the governance or any other aspect of the agreement. AB 1217 is a profoundly disturbing precedent in attempting to undermine provisions of existing law and unilaterally overrule a locally agreed upon governance structure that is part of the valid and voluntary formation agreement of a joint powers authority -- an entity that by definition has no relation to matters of statewide concern. This is a local matter best resolved at the local government level. State intervention in such a matter is therefore unjustified. For these reasons, the City of Lodi respectfully opposes this legislation. Sincerely, /1/ 7/6144 elraadQP4 Mark Chandler Mayor, City of Lodi cc: Senator Cathleen Galgiani, Fax: (916) 651-4905 Assemblymember Jim Cooper, Fax: (916) 319-2109 Stephen Quails, League of California Cities, squallsCc77cacities.orq Meg Desmond, League of California Cities, mdesrnondi cacities.orq 08/09/2016 TUE 15:09 FAX 2001 *************************** *** FAX MULTI TX REPORT *** *************************** JOB NO. 0344 DEPT. ID 101 PGS. 2 TX INCOMPLETE TRANSACTION OK 919163192169 919166514905 919163192109 ERROR FACSIMILE COVER SHEET CITY CLERK'S OFFICE 221 WEST PINE STREET - P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 PHONE (209) 333.6702 FAX (209) 333-6807 ei tyc Irk@lodi.gg or P.fnrris a gsw DATE: August 9, 2016 FROM: Pamela M. Farris Deputy City Clerk TO: Assemblymember Tom Daly, 916-319-2169 Senator Cathleen Galgiani, 916-651-4905 Assemblymember Jim Cooper, 916-319-2109 COMMENTS: Attached please find the Notice of Opposition for AB 1217 (Daly) — Orange County Fire Authority THIS TRANSMITTAL CONTAINS 2 PAGE(S), INCLUDING THIS COVER SHEET.