BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2488| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 2488 Page 2 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 AB 2488 Page 3 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. AB 2488 Page 4 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 **** END ****