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HomeMy WebLinkAboutAB 854 - IID Retail Electric ServiceSTAFF REPORT CITY OF PALM DESERT ADMINISTRATIVE SERVICES DEPARTMENT MEETING DATE: March 14, 2019 PREPARED BY: Stephen Y. Aryan, Risk Manager REQUEST: Consideration to approve a letter of support for AB 854 (Mayes): Imperial Irrigation District: retail electric service. Recommendation By Minute Motion, approve a letter of support for AB 854. Commission Recommendation The Palm Desert Legislative Review Committee recommends submitting a letter of support for this bill. Strategic Plan This item is not associated with any identifiable objective within the Palm Desert Strategic Plan. Backqround Analvsis The Imperial Irrigation District (IID) formed in 1911, when the boundaries for representation for its Board of Directors were determined. The Imperial Valley was only included at the time because IID solely served this jurisdiction. In 1943, IID expanded to Riverside County without a change in the representation boundaries. The District is currently led by a publically elected five member Board of Directors. Established in 1994, IID's Energy Consumers Advisory Committee (ECAC) does provide recommendations to the Board regarding fiscal, strategic planning, and related policy matters. The Coachella Valley is represented on the ECAC by ten members, with Palm Desert and Rancho Mirage sharing a delegate. However, the ECAC is only serves an advisory role and Coachella Valley residents cannot serve on or vote for the District's Board. AB 854 permits full representation of electrical ratepayers on IID's Board of Directors by expanding its membership to eleven individuals. Staff Report: AB 854 (Mayes) Support March 14, 2019 Page 2 of 2 Bill proponents state that the current lack of Riverside County representation creates accountability issues. Under this bill, in order to join the Board as one of the six additional members, an individual would need to be a resident and registered to vote in Riverside County. The bill does provide for the Board to be reduced to five members if a public utility district is formed to provide electricity outside IID's territory and has a board majority representing Riverside County. Fiscal Analvsis There are no costs associated with staff's recommendation. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A N/A Robert W. Hargreaves Lori Carney Janet Moore Lauri Aylaian City Attorney Director of Administrative Services Director of Finance City Manager ATTACHMENT: AB 854 (Mayes) Text Draft Letter of Support for AB 854 (Mayes) IID Board of Directors - Division Boundary Map CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION ASSEMBLY BILL No. 854 Introduced by Assembly Member Mayes February 20, 2019 An act to add Section 21562.7 to the Water Code, relating to irrigation districts. LEGISLATIVE COUNSEL'S DIGEST AB 854, as introduced, Mayes. Imperial Irrigation District: retail electric service. Existing law, the Irrigation District Law, with certain exceptions, requires a director on the board of an irrigation district that provides electricity for residents of the district to be a voter of the district and a resident of the division that the director represents. Existing law authorizes an irrigation district to sell, dispose of, and distribute electricity for use outside of the district's boundaries. This bill would require the membership of the board of directors of the Imperial Irrigation District to increase from 5 to 11 members, with the 6 additional directors meeting certain qualifications, including that each be a resident of and qualified as eligible to vote in the County of Riverside. The bill would provide for the election of the additional directors at the 2020 general district election. The bill would authorize the district board to adopt a resolution decreasing the number of directors and the divisions from which they are elected from I 1 to 5 if a public utility district is formed that provides electricity outside the territory of the Imperial Irrigation District and consists of a board of directors with a majority of seats representing the County of Riverside. By imposing new duties on an irrigation district, this bill would impose a state -mandated local program. 99 AB 854 This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside and the Imperial Irrigation District. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. It is the intent of the Legislature to encourage an 2 irrigation district that provides retail electricity outside its 3 boundaries to allow representation of those extraterritorial 4 customers on the district's board of directors because these 5 customers have no ability to petition grievances to the district or 6 to the Public Utilities Commission. 7 SEC. 2. Section 21562.7 is added to the Water Code, to read: 8 21562.7. (a) This section applies to the Imperial Irrigation 9 District. 10 (b) Notwithstanding Sections 21100 and 21550 and Division 3 11 (commencing with Section 56000) of Title 5 of the Government 12 Code, the membership of the board of directors of the district and 13 the divisions from which they are elected shall increase from 5 to 14 11. 15 (c) Each of the six directors added to the board pursuant to this 16 section shall meet the following qualifications: 17 (1) Reside in the County of Riverside. 18 (2) Qualify as eligible to vote in the County of Riverside. 19 (3) Reside in the division the director represents at the time of 20 their nomination or appointment and through their entire term. 21 (d) The six directors shall be elected at the 2020 general district 22 election. 23 (e) If a public utility district is formed pursuant to Division 7 24 (commencing with Section 15501) of the Public Utilities Code 25 that provides electricity outside the territory of the Imperial 99 -3— AB 854 1 Irrigation District and consists of a board of directors with a 2 majority of seats representing the County of Riverside, the board 3 of the directors of the district may adopt a resolution that decreases 4 the number of directors and the divisions from which they are 5 elected from 11 to 5 upon the expiration of the terms of the 6 members of the board qualified pursuant to subdivision (c). 7 SEC. 3. The Legislature finds and declares that a special statute 8 is necessary and that a general statute cannot be made applicable 9 within the meaning of Section 16 of Article IV of the California 10 Constitution because of the unique circumstances in the County 11 of Riverside and the Imperial Irrigation District. 12 SEC. 4. If the Commission on State Mandates determines that 13 this act contains costs mandated by the state, reimbursement to 14 local agencies and school districts for those costs shall be made 15 pursuant to Part 7 (commencing with Section 17500) of Division 16 4 of Title 2 of the Government Code. N 99 March 14, 2019 The Honorable Chad Mayes State Capitol, Suite 4098 Sacramento, California 94249 Dear Assemblymember Mayes: RE: AB 854 (haves) Imperial Irriqation District: retail electric service. Notice of Support (as introduced 02120119) On behalf of the City of Palm Desert, I wish to submit our support for AB 854. This bill aims to remedy a disagreement between the Energy Consumers Advisory Committee (ECAC) and the Imperial Irrigation District (IID) by opening up new options for a resolution. While many Coachella Valley communities, including a portion of Palm Desert, fall within IID's grid, their residents cannot serve on or vote for the District's Board of Directors. The ECAC was created in 1994 to remedy this situation by providing recommendations to the Board that were historically well received. However, an impasse between the ECAC and IID creates a need for legislative solutions. Local representation is a fundamental aspect of our democratic process and AB 854 ensures it exists for residents of Palm Desert and other local communities served by IID. By providing options for both IID and ratepayers within the service grid, this legislation can help foster a resolution both sides can agree on. Alternatively, the bill also has a provision that would decrease the Board back to five members if a public utility district is formed, which provides electricity outside IID's territory and has a board majority representing Riverside County. For these reasons we support AB 854. Please contact Chris Gerry, Management Analyst, at (760) 346-06aa if we can be of any further assistance in this matter. Sincerely, SUSAN MARIE WEBER MAYOR cc: City Council The Honorable Jeff Stone, California State Senate The Honorable Chad Mayes, California State Assembly Anthony D. Gonsalves, Joe A. Gonsalves & Sons (aonsalves@aonsalvi.com) Erin Sasse, League of California Cities (esasse@cacities.ora) 0 AW R i