BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 466
                                                                  Page  1

          Date of Hearing:  April 22, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                     AB 466 (Coto) - As Amended:  April 15, 2009
           
          SUBJECT  :  Santa Clara Valley Water District.

           SUMMARY  :  Makes various changes to the Santa Clara Valley Water  
          District's (District) enabling act.  Specifically,  this bill  :

          1)Provides that the individuals who serve on the board of the  
            District on December 31, 2008, shall continue to serve on the  
            board of the District (Board), except as otherwise provided.  

          2)Requires that until noon on January 3, 2011, the Board consist  
            of the following directors:

             a)   Two appointed directors, representing the areas formerly  
               covered by the Gavilan Water Conservation District and the  
               Santa Clara Valley Water Conservation District; and,

             b)   Five directors, one elected from each of the  
               supervisorial districts.

          3)Requires that all director elections shall be done in  
            accordance with the Uniform District Election Laws.

          4)Repeals the language regarding scheduled changes to the  
            make-up of the Board.

          5)Repeals unnecessary language regarding how a vacancy is filled  
            on the Board.

          6)Specifies that the term of office for the two Board directors  
            elected in 2006, 
          to represent the first and fourth supervisorial districts, ends  
            at noon on January 3, 2011.

          7)Specifies that the term of office for the three Board  
            directors elected in 2008, to represent the second, third, and  
            fifth supervisorial districts, ends at noon on January 7,  
            2013.

          8)Provides that the two appointed directors shall serve on the  








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            Board until noon on January 3, 2011.

          9)Requires that at noon on January 3, 2011, the number of  
            elected directors on the Board be increased from five to seven  
            members and the appointed directors be reduced from two to  
            zero.

          10)Requires the Board, on or before June 30, 2010, to adopt a  
            resolution dividing the District into seven electoral  
            districts.

          11)Requires that the most recent census data be used as a basis  
            for dividing up the seven electoral districts, creating  
            districts that are nearly equal in population as possible.

          12)Authorizes the Board to consider the topography, geography,  
            cohesiveness, contiguity, integrity, compactness of territory,  
            and community of interest when establishing the boundaries of  
            the electoral districts.

          13)Requires the election of the newly formed first, fourth,  
            sixth, and seventh electoral districts to take place on  
            November 2, 2010.

          14)Requires the election of the newly formed second, third, and  
            fifth electoral districts to take place on November 6, 2012.

          15)Provides that the term of office for each elected director  
            shall be for four years except as otherwise provided

          16)Requires that elections be held following the Uniform  
            District Election Laws. 

          17)Requires that a candidate for the Board be a resident in the  
            electoral district for which he or she is running.

          18)Requires that a director continue to reside within that  
            electoral district during his or her term of office.

          19)Requires that all elected directors exercise their  
            independent judgment on behalf of the interest of the entire  
            district, in furthering the purposes of the District.

          20)Provides a method for filling vacancies of the Board  
            identical to that used by other special districts.








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          21)Clarifies that any director of the Board may be recalled.

          22)Requires that the Board review the boundaries of the seven  
            electoral districts before November 1 of the year following  
            the year in which each decennial census is taken and adjust  
            those boundaries as necessary.

          23)Prohibits a Board member from seeking or accepting  
            compensated employment with the District while serving as a  
            member of the Board and for one year immediately following the  
            end of the director's term of office. 

          24) Requires the Board, by July 1, 2010, to adopt regulations  
            governing the activities of persons who lobby the District.

          25)Specifies that the lobbying regulations must include  
            provisions requiring registration of lobbyists, report  
            requirements governing the activities of lobbyists and  
            communication with Board members, and disclosure by directors  
            of contact with lobbyists prior to voting on matters related  
            to this contact.

          26)Prohibits a Board member from contacting staff on behalf of a  
            party who is bidding or intends to bid on a district contract  
            or who has or intends to submit a response for a proposal or  
            request for qualifications.

          27)Prohibits a Board member from inquiring about the identity of  
            bidders or proposers prior to the time that staff has made a  
            recommendation for selection of a contract, vendor, or  
            consultant. 

          28)Specifies that the above listed prohibitions do not preclude  
            a Board member from making general inquiries about the status  
            of a particular procurement, or from providing a member of the  
            public with information about the appropriate staff contact  
            concerning procurement of goods and services by the district. 

          29)Prohibits the Board from authorizing severance pay for a  
            Board-appointed employee of the District when the employee  
            voluntarily separates from District employment. 

          30)Specifies that "severance pay" does not include any otherwise  
            lawful payment required to be paid by the District under a  








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            preexisting employment agreement or under a separation and  
            release agreement resolving a claim. 

          31)Prohibits the board from agreeing to amend an employment  
            contract after the employee announces or requests a voluntary  
            separation, except upon a Board determination, in open  
            session, that an adjustment in compensation is required to  
            retain the employee and is in the best interest of the  
            District. 

          32)Specifies timelines on when various reports issued by the  
            District must be available to the public. 

          33)Requires that on a quarterly basis, a report of the travel  
            reimbursements to each Board member must be placed on an open  
            session board meeting for review to determine whether the  
            travel complies with the District's travel policy.

          34)Authorizes the District to provide an exemption from special  
            taxes levied by the District to residential parcels who are  
            owned and occupied by one or more taxpayers who qualify as  
            totally disabled under the federal Social Security Act, if the  
            total household income is less than an amount that is approved  
            by the voters of the District.

           EXISTING LAW  :

          1)Specifies that, until January 1, 2010, the Board of the  
            District will consist of seven members:  five elected, one  
            elected member from each of the supervisorial districts and  
            two appointed directors.

          2)States that the two appointed members should represent the  
            District at large with one appointed director from the area  
            that previously consisted of the Gavilan Water Conservation  
            District and the other appointed director from the area that  
            the Santa Clara Valley Water Conservation District previously  
            covered.

          3)States that as of January 1, 2010, the board of directors for  
            the District shall consist of the five elected members.

          4)States that, as of January 1, 2010, whenever there is a  
            vacancy in the office of a director, the vacancy will be  
            filled by an appointment from the board of directors of the  








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            District.
          5)Authorizes the District to provide an exemption from special  
            taxes levied by the District to residential parcels who are  
            owned and occupied by one or more taxpayers who are at least 
          65 years of age, if the total household income is less than an  
            amount that is approved by the voters of the District.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)Currently the District's governing Board consists of five  
            Board members elected by supervisorial district and two  
            at-large Board members appointed by the County Board of  
            Supervisors.  The two appointed Board member seats are  
            scheduled to end on December 31, 2009, under the provisions of  
            AB 2435 (Coto), Chapter 279, Statutes of 2006.  The District  
            Board has, for the past year, discussed whether to retain a  
            seven-member Board and, if so, what form the Board structure  
            should take.  This process culminated in February 2008 with a  
            series of well-publicized public meetings throughout Santa  
            Clara County with community stakeholders, residents, and other  
            interested parties to solicit input on potential changes to  
            the Board structure and the District Act.  One of the biggest  
            pieces of information considered was the fact that the  
            population of Santa Clara County has nearly doubled since the  
            current Board structure was created in 1967; today, each  
            part-time elected Board member represents more than 350,000  
            persons.  The consensus of the Board and public was to retain  
            a seven-member governing Board, but to change the composition  
            of the Board from five members elected and two appointed  
            members, to seven members elected from seven equally divided  
            districts.

          2)The author believes that creating smaller districts will  
            provide greater opportunity for competitive elections by  
            making it less expensive to run for public office.  The author  
            also feels that it will also provide for greater geographic  
            representation which may better reflect the geographic, social  
            and economic diversity that exists within Santa Clara County.   

          AB 466 provides for the creation of a seven-member elected Board  
            starting with the November 2010 general election, following a  
            redistricting process based on the most recent census data.   
            Until then, the Board will remain the same with five elected  








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            and two appointed members.  

          3)According to the author's office, various audits and studies  
            of the District have identified several areas for improvement  
            or modification of current practices in governance and  
            operations.  The author believes that AB 466 proactively  
            incorporates good governance recommendations from these  
            studies and others to make the District more transparent and  
            accountable, and increase the public's ability to engage on  
            District issues. 

          4)AB 466 also expands the District's ability to provide an  
            exemption from special taxes.  
          AB 88 (Alquist), Chapter 63, Statutes of 2001, authorized the  
            District to provide an exemption from special taxes for  
            residential parcels owned by low-income seniors.  This bill  
            would expand the ability to provide exemptions to low-income  
            individuals who qualify as totally disabled under the Social  
            Security Act.



           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Santa Clara Valley Water District [SPONSOR]
          Association of CA Water Agencies (as amended)
          CA Special Districts Association
          Palo Alto Chamber of Commerce
          San Jose/Silicon Valley Branch of the 
               National Association for the Advancement of Colored People

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958