G E N E R A L    M A N A G E R ' S    R E P O R T

August 26, 2005

 

      TO:            Board of Directors, PBCSD

 

FROM:           Richard Andrews, General Manager

 

SUBJECT:      Proposed Legislation of Interest to PBCSD

_________________________________________________________________________

 

RECOMMENDATIONS

 

Receive this report for information and provide whatever policy direction the Board believes may be appropriate, if any. 

 

SUMMARY OF ISSUES

 

The following summarizes the remainder of the legislative calendar and the status of the two bills that District staff is monitoring.

 

·        August 15:  Legislature reconvened following summer recess

·        August 26:  Last day for fiscal committees to meet and report bills to floor

·        August 29 thru September 9: Floor sessions only.  No committees, other than conference committees may meet for any purpose.

·        September 2:  Last day to amend bills on the floor

·        September 9:  Last day for each house to pass bills, final recess and interim study period starts at end of day

·        October 9:  Last day for Governor to sign or veto bills passed on or before September 9 and in his possession on September 14

·        January 1, 2006:  Non-urgency status bills enacted on or before October 9, 2005 take effect on this date.

 

SB-135 (Christine Kehoe, D-San Diego): 

Summary - This bill is a thorough revision of the Community Services District Law, first enacted in 1951 and re-enacted in 1955.  The statute governs PBCSD and 316 other community services districts that provide public facilities and services throughout California.  In the last 50 years, the Legislature has passed many amendments to the CSD Law, which has resulted in a confusing and out-of-date statute requiring careful revision.  In the fall of 2004, the Senate Local Government Committee convened a 19-member Working Group of CSD directors and general managers (including the PBCSD General Manager) and representatives of the California Special Districts Association, League of California Cities and California State Association of Counties to review the current CSD Law and recommend changes.  The results of the Working Group’s extensive efforts formed the basis for SB 135, which reduces the current CSD Law from about 300 separate statutory sections to approximately 80 sections.  While the bill does not attempt to add or delete CSD powers it does try to improve management and governance by simplifying the statute, i.e. clarifying and strengthening existing powers.     

Status - Your Board and District staff has supported this legislation.   SB 135 passed the Assembly Floor on August 22 by a vote of 76-0 (three members were absent and there is one vacancy).  Monterey County Assembly Member Simon Salinas (Chair of the Assembly Local Government Committee) presented the bill on the Assembly floor and it passed without debate.  SB 135 now goes back to the Senate for concurrence in the Assembly amendments.  The Assembly amendments added coauthors, corrected some drafting errors, and referenced AB 1234, Assemblyman Salinas’ local government “sunshine” bill.  By your Board’s meeting date on August 26, Senator Kehoe will have asked the Senate to concur in the Assembly amendments.  Then, the bill will be sent to Governor Schwarzenegger for his action.  At that time, it is suggested that the District prepare another letter of support, asking the Governor to sign the bill.  The timing of the letter will depend on when the bill is forwarded to the Governor. 

One potentially serious obstacle to the Governor’s approval of the bill is that the State Department of Finance has taken an "oppose" position on SB 135.  The Department has indicated it fears that SB 135 may result in claims for reimbursement of state-mandated local programs.  Senator Kehoe, the bill’s primary sponsor, has responded to that view with a letter expressing concerns for both substantive and procedural reasons.  “Substantive”, because the bill attempts to advance the very policies that the Governor has been promoting regarding reorganization of government to make it more transparent and responsive.  Also, in all of the discussions about the bill including legislators and state and local officials, no one has suggested that SB 135 will create any state-mandated local program(s).  Senator Kehoe’s “procedural” concern is that the Department of Finance was asked to participate in the Working Group’s discussions, but declined to participate.  Normally, the Finance Director’s opposition would be a very serious obstacle.  However, as the Department’s staff does not yet appear to be fully informed about SB 135, it is possible it will withdraw its opposition after further review or, if not, the Governor may be persuaded by the virtually unanimous legislative support in both houses that resulted in the bill’s passage.

   

AB 1234 (Simon Salinas, D – Salinas):

Summary – AB 1234 is sponsored by Monterey County Assembly Member Salinas to promote “reforms” in the areas of compensation and ethics training for local governments.  It was introduced in response to some high profile incidents which have occurred in the past several years involving elected directors, council members and upper managerial staff in local government entities (special districts, cities, and counties).  AB 1234 seeks to provide more transparency to local governments and accountability to the public by "sun-shining" the activities of local government officials by requiring: (1) ethics training for local government officials and designated employees; (2) adoption of a written policy on the duties for which governing board members may receive compensation, other than meetings of the governing body or an advisory body or attendance at a conference or organized educational activity; and, (3) establishment of guidelines for reimbursement of governing board members for actual and necessary expenses incurred in the performance of official duties, such as travel, meals, and lodging.  The written policy would also have to clarify related requirements, including the filing of expense reports and presentation of a report to the governing body.

 

Status - AB 1234 has received bi-partisan support in both houses, passing the Assembly by a vote of 71 – 0 and unanimously passing policy committees in the Senate.  There is no known opposition to the bill, albeit some agencies may be supporting it in order to preclude legislative consideration of a stronger more comprehensive bill proposed by Senator Diane Ortiz (D – Sacramento).  At the time this report is being prepared, the bill is scheduled for a floor vote in the Senate floor on Thursday, August 25.  Senator Tom Torlakson (D-Antioch) will present AB 1234 on behalf of Assembly Member Salinas. Senator Ortiz has informed Assembly Member Salinas that she will oppose AB 1234 and urge other Senators to do likewise. She intends to argue that the bill does not go far enough to address ethics and auditing of local governments, specifically special districts.

 

RA

 

 

 

 

Aenda Item No. 16