BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                        Senator Patricia Wiggins, Chair


          BILL NO:  AB 466                      HEARING:  6/17/09
          AUTHOR:  Coto                         FISCAL:  Yes
          VERSION:  6/8/09                      CONSULTANT:  Detwiler

                 SANTA CLARA VALLEY WATER DISTRICT'S GOVERNANCE

                                    Background  

          The Santa Clara Valley Water District is a special act  
          special district which provides flood control and water  
          services.  The District's mission changed from serving an  
          agricultural base into an urban water agency.  Public  
          officials periodically review the District's governing  
          statute and ask for legislative changes


                                   Proposed Law  

          I.   Board of directors  .  A seven-member board of directors  
          governs the District, reflecting a compromise that combined  
          the former Santa Clara Valley Water Conservation District,  
          the former Santa Clara County Flood Control and Water  
          Conservation District, and two other water districts.  The  
          former Santa Clara Valley Water Conservation District had  
          an elected five-member board.  The Santa Clara County Board  
          of Supervisors was the ex officio board of the former Santa  
          Clara County Flood Control and Water Conservation District.  
           The two other water districts had their own elected  
          boards.  The District's current seven-member board has five  
          elected members; one from each supervisorial district.  The  
          county supervisors appoint the two other directors who must  
          be voters within the two former water districts.  When the  
          District wanted to reduce its board to five elected  
          members, the Legislature eliminated the appointed members  
          of the District's board of directors effective on January  
          1, 2010 (AB 2435, Coto, 2006).  
          
          Assembly Bill 466 repeals the statutes which will reduce  
          the size of the Santa Clara Valley Water District's  
          existing seven-member board of directors to five elected  
          directors on January 1, 2010. [See 1 and 3 of the bill.]   
          AB 466 enacts a new governance scheme:
                 Until December 3, 2010, the board consists of:
                  o         The two appointed directors who served on  




           
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                    the board on December 31, 2008. [2, 4 & 8]
                  o         The five elected directors. [4]  The two  
                    directors who were elected in 2006 serve until  
                    December 3, 2010. [6]  The three directors who  
                    were elected in 2008 serve until December 7,  
                    2012. [7]
                 Starting December 3, 2010, the board of directors  
               consists of seven elected directors. [9]

          AB 466 requires the board of directors to adopt by June 30,  
          2010, a resolution that creates the seven electoral  
          districts. [10]  Voters elect directors by these electoral  
          divisions to four-year terms for four designated seats in  
          November 2010 and the three other seats in November 2012.   
          The District's elections and the directors' terms must  
          follow the Uniform District Elections Law. [11]  The board  
          must reapportion the electoral districts by November 1 of  
          the year following each decennial census. [14]  The bill  
          renumbers the current provisions for filling board  
          vacancies and recalling directors. [5, 12, 13 & 14]

          II.   Compensation  .  The District's directors receives $100  
          for each day's service, but not more than $600 a month,  
          plus actual and necessary expenses.  State law requires  
          local governments to adopt reimbursement policies and  
          disclose payments (AB 1234, Salinas, 2005).  Assembly Bill  
          466 requires the District to place quarterly expense  
          reimbursement reports on the board's agenda and to  
          determine if the reimbursements comply with the board's  
          policies.  AB 466 prohibits a member of the District's  
          board of directors from seeking or accepting compensated  
          employment with the District while a director, and for one  
          year after the director's term of office. [15]

          III.   Governance  .  Assembly Bill 466 requires the  
          District's board by July 1, 2010, to adopt lobbying  
          regulations that include registration, reporting, and  
          disclosure requirements.  AB 466 prohibits directors from  
          contacting the District's staff on behalf of contract  
          bidders.  The bill prohibits the District's board from  
          authorizing severance pay when an appointed employee leaves  
          voluntarily.  AB 466 requires the District board's minutes  
          to include a public report of actions taken in closed  
          sessions under the Brown Act. [15]






           
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          IV.   Reports  .  The Ralph M. Brown Act requires local  
          governments to post their agendas, including brief general  
          descriptions of each item, at least 72 hours before their  
          regular meetings.  The Brown Act provides that writings  
          which are distributed to a majority of the legislative body  
          are public records and must be made available upon request  
          without delay.  With five specific exceptions, Assembly  
          Bill 466 requires that reports prepared by the District's  
          staff that recommend action by the board at a regular  
          public meeting or public hearing must be available to the  
          public at least six days before the meeting or hearing.  AB  
          466 declares that this requirement does not require public  
          release of documents that the California Public Records Act  
          exempts from disclosure.  If a staff report's  
          recommendation changes because of direction from a  
          director, the report must disclose that revision. [15]

          V.   Special taxes  .  When the District levies special taxes  
          that are subject to 2/3-voter approval, it may charge  
          minimum uniform rates based on land use category and size.   
          When levying these special taxes, the District can exempt  
          residential parcels that are owned and occupied by  
          taxpayers who are 65 years or older (AB 88, Alquist, 2001).  
           Assembly Bill 466 also allows the District to exempt  
          residential parcels that are owned and occupied by  
          taxpayers who qualify as totally disabled under the federal  
          Social Security Act. [16]

          VI.   District  budgets  .  By June 15, the District's board  
          must meet to consider its proposed budget and hear public  
          comments.  At the same meeting, Assembly Bill 466 requires  
          the board to review its financial reserves and its reserve  
          management policy. [17]


                                     Comment  

           Step-by-step  .  More than 40 years after the Santa Clara  
          Valley Water District took over the County's flood control  
          duties, local officials continue to discuss how the  
          District should operate.  Since the 2006 Coto bill, local  
          officials have continued to debate the District's  
          governance.  AB 466 is the result of the latest round of  
          discussions about how to improve the District's  
          accountability, transparency, and responsiveness.





           
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                                 Assembly Actions  

          Assembly Local Government Committee:  7-0
          Assembly Appropriations Committee:16-0
          Assembly Floor:                    73-0


                         Support and Opposition  (6/11/09)

           
          Support  :  Santa Clara Valley Water District, Association of  
          California Water Agencies, California Special Districts  
          Association, Palo Alto Chamber of Commerce, San  
          Jose/Silicon Valley Branch of the National Association for  
          the Advancement of Colored People.

           Opposition  :  Unknown.