BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2488|
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                                    CONSENT


          Bill No:  AB 2488
          Author:   Ruskin (D)
          Amended:  4/8/10 in Assembly
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  4-0, 6/16/10
          AYES:  Aanestad, Kehoe, DeSaulnier, Price
          NO VOTE RECORDED:  Cox

           ASSEMBLY FLOOR  :  74-0, 5/6/10 (Consent) - See last page for  
            vote


           SUBJECT  :    City and County of San Francisco:  regional  
          water system

           SOURCE  :     Author


           DIGEST  :    This bill makes various clarifying changes to  
          the San Francisco Bay Area Regional Water System Financing  
          Authority Act and the Bay Area Water Supply and  
          Conservation Agency Act.

           ANALYSIS  :    Owned and operated by the City and County of  
          San Francisco, the Hetch Hetchy system is a regional asset  
          that delivers water to millions of Bay Area residents.   
          When the suburban water purveyors wanted to help finance  
          improvements to the Hetch Hetchy system, the Legislature  
          created the San Francisco Bay Area Regional Water System  
          Financing Authority (Authority) (SB 1870 [Speier], Chapter  
          846, Statutes of 2002).  To coordinate the suburban  
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          purveyors' efforts, the Legislature created the Bay Area  
          Water Supply and Conservation Agency (Agency) (AB 2058  
          [Papan], Chapter 844, Statutes of 2002).

          This bill:

          I.   Governance  .  The Authority's 28-member board of  
          directors is composed of representatives from the City and  
          County of San Francisco, 16 cities, nine water districts,  
          and two public members.  The 27 members on the Agency's  
          board represent the suburban water purveyors:  the 16  
          cities, nine water districts, and two private entities.  On  
          some issues, the Agency's board members cast weighted votes  
          based on their historic water deliveries under a 1984  
          Master Water Sales Contract with San Francisco.

          The Skyline County Water District sold its water system to  
          the California Water Service Company and then dissolved in  
          2009.  Also in 2009, the water purveyors signed a new Water  
          Supply Agreement.  Local officials want to update their  
          statutes to reflect these changed conditions.

          This bill removes the Skyline County Water District from  
          the boards of the Bay Area Water Reliability Financing  
          Authority and the Bay Area Water Supply and Conservation  
          Agency.  In the statutory table that assigns the Agency's  
          voting power based on water deliveries, this bill deletes  
          the Skyline County Water District and shifts its 266-acre  
          foot allotment to the California Water Service Company.    
          The bill declares that if an existing entity succeeds to  
          another entity's water rights and obligations, the  
          successor entity's quantity of water increases accordingly,  
          without the need for statutory changes.  This bill also  
          substitutes the July 2009 Water Supply Agreement or any  
          subsequent water supply contract for the Master Water Sales  
          Agreement. 

          II.   Water conservation  .  In 2008, the Legislature passed  
          the Integrated Water Management Planning Act (SB 1xx,  
          Perata, 2008).  In 2009, the Legislature set water  
          conservation targets of 10 percent by 2015 and 20 percent  
          by 2020 (SB 7xxxxxxx, Steinberg, 2009).  This bill allows  
          the Bay Area Water Supply and Conservation Agency to help  
          its water purveyors meet these urban water use targets as  







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          an authorized regional water management group.  If  
          requested by the water purveyors, this bill allows the  
          Agency to develop and administer a regional conservation  
          program and receive financial assistance for that purpose.   
          The bill also declares that the Agency is a local agency  
          for the purposes of the 2008 Integrated Water Management  
          Planning Act.

          III.   Water bonds  .  The Bay Area Water Supply and  
          Conservation Agency can apply for and receive state and  
          federal funds.  The voters have approved water bonds that  
          make capital available for water supply and water quality  
          projects:

             Proposition 204 (1996)
             Proposition 13 (2000)
             Proposition 50 (2002)
             Proposition 84 (2006)

          This bill creates a nonexclusive list of the state bonds  
          that the Agency may receive, including any future financing  
          for water management.

          IV.   Oaths of office  .  The directors of the Authority and  
          the Agency must take oaths of office in order to serve.   
          Because the directors' appointing authorities are  
          geographically spread out, officials say that it would be  
          easier to swear-in new members at their own meetings.  This  
          bill allows the chairperson, vice chairperson, or secretary  
          of the San Francisco Bay Area Regional Water System  
          Financing Authority and the Bay Area Water Supply and  
          Conservation Agency to administer the oaths of office to  
          their respective board members.

           Comments

           This bill brings the statutes for the San Francisco Bay  
          Area Regional Water System Financing Authority and the Bay  
          Area Water Supply and Conservation Agency into line with  
          recent changes.  With these amendments, the law reflects  
          the dissolution of the Skyline County Water District, the  
          challenges posed by water conservation targets, and the  
          availability of water bond funds.








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

           SUPPORT  :   (Verified  6/16/10)

          Association of California Water Agencies
          Bay Area Water Supply and Conservation Agency
          San Francisco Mayor Gavin Newsom


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


          AGB:do  6/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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