BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 235
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          Date of Hearing:  June 15, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                 SB 235 (Negrete McLeod) - As Amended:  June 9, 2011

           SENATE VOTE  :  35-0
           
          SUBJECT  :   Water conservation districts: reduction in number of 
          directors.

           SUMMARY  :   Authorizes a water conservation district with a board 
          consisting of seven directors to reduce the number of directors 
          to five.   Specifically,  this bill  :   

          1)Prohibits a reduction in the number of directors from being 
            made within 180 days preceding the election of a director.

          2)Requires the board, in order to reduce the number of 
            directors, to adopt, by a recorded vote 
          of two-thirds of the total membership of the board, a resolution 
            proposing to reduce the number of directors from seven to 
            five. 

          3)Requires the resolution to contain a map and description of 
            the boundaries for the five divisions proposed to be 
            established.

          4)Requires the secretary of the district to set a date for a 
            public hearing on the proposal to reduce the number of 
            directors, which shall be not less than 30 days and not more 
            than 60 days after the date on which the board adopted the 
            resolution.

          5)Requires the secretary to give notice of the hearing, 
            including a description of the proposal and a map and general 
            description of the proposed boundaries of the five divisions.

          6)Requires the board at the hearing to receive and consider any 
            written or oral comments regarding the proposed reduction in 
            the number of directors.

          7)Requires, after receiving and considering those comments, the 
            board, by a recorded vote 
          of two-thirds of the total membership of the board, to do either 








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            of the following:

             a)   Disapprove the proposal; or,

             b)   Adopt a resolution that orders the reduction in the 
               number of members of the board.

          8)Specifies that the resolution to reduce the number of 
            directors is a legislative act subject to referendum. 

          9)Specifies that any reduction in the number of directors and a 
            change in division boundaries shall not affect the term of 
            office of any director. 

          10)Specifies that a director of a division for which boundaries 
            have been changed shall continue to be the director of the 
            division bearing the number of his or her division until the 
            office becomes vacant by means of term expiration or 
            otherwise, whether or not the director is a resident within 
            the boundaries of the division as changed. 

          11)Requires the successor to the office of a division for which 
            boundaries have been changed to be a resident and voter of 
            that division.

          12)Specifies that these provisions do not apply to water 
            conservation districts in Ventura County. 

           EXISTING LAW  :


          1)Requires a water conservation district board of directors to 
            consist of three, five, or seven members, depending on the 
            number of divisions in the district. 

          2)Requires each director be an elector of the division for which 
            he is elected, a qualified elector of the district, and a 
            resident of the county, or of one of the counties, in which 
            the district is situated.


          3)Establishes the following redivision procedures specifically 
            for water conservation districts in Ventura County: 










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             a)   Specifies that the change number of members of the board 
               or basis for dividing the district into divisions may be 
               initiated by the board by resolution or may be initiated by 
               a petition signed by not less than 5% of the electors of 
               the district. 

             b)   Requires the resolution or petition to state the new 
               number of members of the board or the new basis for 
               dividing the district into divisions based either on area 
               or population or changes to the boundaries of the divisions 
               of a district based on population.


             c)   Requires an election on the proposed redivision of the 
               district to be held in the same manner as elections for the 
               formation of a district so far as applicable.


           FISCAL EFFECT :   Unknown


           COMMENTS  :   

          1)The San Bernardino Valley Water Conservation District (SBVWCD) 
            was formed in 1932 by election of the registered voters within 
            its boundaries.  It assumed the operation and assets 
          of the Water Conservation Association within the Santa Ana River 
            under the provisions of the Water Conservation District Law of 
            1931.  In 1935 it acquired the water rights of the East 
            Lugonia Mutual Water Company to provide for spreading and 
            percolation of water within Mill Creek, a tributary to the 
            Santa Ana River.  SBVWCD was created to recharge the 
            groundwater basin with native water to conserve that water for 
            future use.  At that time, the water was primarily for 
            agriculture; today this water is used for agricultural, 
            municipal, and industrial purposes.  Their mission is to 
            ensure recharge of the Bunker Hill Groundwater Basin in an 
            environmentally and economically responsible way, using local 
            native surface water to the maximum extent practicable.  
            SBVWCD is governed by a seven-member board of directors 
            elected from within specific divisions.

          2)According to the author's office, SBVWCD has changed from an 
            agricultural area to a more suburban area and SBVWCD believes 
            that a five-member board would be more appropriate for the 








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            district's needs and would save the district money.  However, 
            there is no statutory procedure to reduce board size.  Only 
            the two water conservation districts in Ventura County can 
            shrink their boards, but they need voter approval.  If all 
            water conservation districts were to have to use the existing 
            procedures established for Ventura County, the elections might 
            cost more than the resulting savings. SB 235 seeks to avoid 
            the costly election by allowing a water conservation district 
            board to reduce its size through a two-thirds vote of the 
            board.  

          3)At the conclusion of its two year municipal service review for 
            SBVWCD, the San Bernardino Local Agency Formation Commission 
            (LAFCO) adopted a resolution articulating the LAFCO's position 
            that the Bunker Hill basin was a single community of interest 
            for the provision of water conservation services and 
            mechanisms and a single water conservation entity should 
            address those service needs.  Based upon that position, the 
            LAFCO determined that SBVWCD would be assigned a zero sphere 
            of influence indicating that a consolidation should take 
            place.  The LAFCO's recommendation was that SBVWCD should 
            consolidate with the San Bernardino Valley Municipal Water 
            District (MWD).  In 2006, the MWD applied to LAFCO for 
            approval to consolidate the two districts.  After lawsuits and 
            opposition by SBVWCD, the LAFCO denied the consolidation in 
            2010.  Now SBVWCD wants to cut costs by cutting the size of 
            its governing board.  The Committee may wish to consider 
            whether a better alternative is to cut the number of special 
            districts in San Bernardino County.

          4)Support arguments: Supporters argue that this bill provides 
            local agencies with the ability to find a governance structure 
            that works best for them

            Opposition arguments:  Opposition could argue that a reduction 
            in the size of a board should be determined by the voters.  

           REGISTERED SUPPORT / OPPOSITION :

           Support 
           
          San Bernardino Valley Water Conservation District �SPONSOR]
          Association of California Water Agencies
           
            Opposition 








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          None on file

           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958