BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 466|
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                                 THIRD READING


          Bill No:  AB 466
          Author:   Coto (D)
          Amended:  6/30/09 in Senate
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  5-0, 6/17/09
          AYES:  Wiggins, Cox, Aanestad, Kehoe, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  73-0, 5/14/09 - See last page for vote


           SUBJECT  :    Santa Clara Valley Water District

           SOURCE  :     Santa Clara Valley Water District


           DIGEST  :    This bill changes the composition and  
          representation of the Santa Clara Valley Water District  
          Board effective December 3, 2010, expands a district  
          exemption from special fees, and makes other governance  
          changes.

           Senate Floor Amendments  of 6/30/09 clarify when District  
          directors' terms start.

           ANALYSIS  :    

              I.  Board of Directors  .  A seven-member board of  
              directors governs the Santa Clara Valley Water District  
              (District), reflecting a compromise that combined the  
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              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 wants to reduce the board to five elected  
              members, the Legislature eliminated the appointed  
              members of the District's board of directors effective  
              on January 1, 2010, by enacting AB 2435 (Coto), Chapter  
              279, Statutes of 2006.

              This bill repeals the statutes which will reduce the  
              size of the District's existing seven-member board of  
              directors to five elected directors on January 1, 2010.  
               This bill enacts a new governance scheme:

              1.     Until December 3, 2020, the board consists of:

                 A.        The two appointed directors who served on  
                    the board on December 31, 2008.

                 B.        The five elected directors.  The two  
                    directors who were elected in 2006 serve until  
                    December 5, 2010.  The three directors who were  
                    elected in 2008 serve until December 7, 2012.

               2.      Starting December 3, 2010, the board of  
                  directors consists of seven elected directors.

              This bill requires the board of directors to adopt by  
              June 30, 2010, a resolution that creates the seven  
              electoral districts.  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  







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              Elections Law.  The board must reapportion the  
              electoral districts by November 1 of the year following  
              each decennial census.  The bill renumbers the current  
              provisions for filling board vacancies and recalling  
              directors.

             II.  Compensation  .  The District's directors receive $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], Chapter 700,  
              Statutes of 2005).  This bill 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.  This bill 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.

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

            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 meeting.  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, this bill requires that reports  
              prepared by the District's staff that recommended  
              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.  This bill  
              declares that this requirement does not require public  







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              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.

             V.  Special Taxes  .  When the District levies special taxes  
              that are subject to a 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], Chapter 63, Statutes of 2001).  This bill  
              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.

            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, this bill  
              requires the board to review its financial reserves and  
              its reserve management policy.
           
          Comments

           More than 40 years after the district took over the  
          County's flood control duties, local officials continue to  
          discuss how the District should operate.  Since the  
          enactment of AB 2435 (Coto), local officials have continued  
          to debate the District's governance.  This bill is the  
          result of the latest round of discussions about how to  
          improve the District's accountability, transparency, and  
          responsiveness.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  7/1/09)

          Santa Clara Valley Water District (source)
          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







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           ASSEMBLY FLOOR  : 
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Ammiano, Fuentes, Gaines, Garrick,  
            Saldana, Smyth, Bass


          AGB:cm  7/1/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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