BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1337                   HEARING DATE: April 24, 2012
          AUTHOR: DeSaulnier                 URGENCY: No
          VERSION: April 18, 2012            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: Governance and FinanceFISCAL: Yes
          SUBJECT: Zone 7 Water Agency Act.
          
          BACKGROUND AND EXISTING LAW
          The Alameda County Flood Control and Water Conservation District 
          (District) was created by the Alameda County Flood Control and 
          Water Conservation District Act in 1949.  The District is 
          governed by the Alameda County Board of Supervisors, and its 
          charge is to provide for the control and conservation of flood 
          and storm waters.  

          Pursuant to the Act, the board divided the District into 10 
          zones to provide for flood control projects that specifically 
          benefit each zone.  The Pleasanton and Murray Townships make up 
          Zone 7, as it has become known, and its residents were 
          authorized in 1955 to elect their own board of directors to 
          govern and control matters that are specific to their 
          boundaries.  Zone 7's unique status, as the only zone with its 
          own elected board, was born out of its then remote location in 
          the eastern portion of Alameda County.  

          Zone 7 subsequently became a contractor for water from the State 
          Water Project and currently provides water wholesale to 200,000 
          people in Pleasanton, Livermore, Dublin, and, through special 
          arrangement with the Dublin San Ramon Services District, to the 
          Dougherty Valley Area in Contra Costa County.

          The dual governance system of having both a District and Zone 7 
          board has been challenging at times.  Over the years, both the 
          District board and the Zone 7 board have sought to minimize the 
          duplicative procedures.  Most notably, in 2003 the Legislature 
          passed, and the Governor signed AB 1125 (Houston).  That bill 
          gave the Zone 7 board control over those matters that relate 
          only to Zone 7.  Matters that relate to both Zone 7 and other 
          parts of the District still require approval by both boards.
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          As noted in the Senate Local Government Committee analysis of AB 
          1125, "While AB 1125 nudges Zone 7 towards full autonomy, the 
          bill invites legislators to explore the conversion of Zone 7 
          into an independent special district that would govern the 
          area's water supply, leaving flood control duties with the 
          countywide District."

          PROPOSED LAW
          This bill would:

          1.Enact the Zone 7 Water Agency Act, which would create the Zone 
            7 Water Agency as an independent special district.  The powers 
            and duties of the Zone 7 Water Agency would largely mirror 
            those of the Alameda County Flood Control and Water 
            Conservation District as they applied to Zone 7 Water Agency.  
            The bill would authorize Zone 7 to continue to impose any 
            special taxes based upon assessed value or any other special 
            taxes, assessments, or charges imposed by or on behalf of the 
            former Zone 7, would authorize the agency to impose new 
            special taxes or levy assessments, and would require any taxes 
            or assessments to be levied and collected together with taxes 
            for county purposes, as specified. This bill would also 
            authorize the agency to designate the county treasury as its 
            treasury, and to establish by ordinance rules, regulations, 
            standards, and procedures for appointment, suspension and 
            termination of employment.

          2.Amend the Alameda County Flood Control and Water Conservation 
            District Act to exclude the territory of the newly created 
            Zone 7 Water Agency from the Districts jurisdiction.  The Act 
            is further amended to delete those provisions that applied 
            solely to Zone 7.

          ARGUMENTS IN SUPPORT
          According to the author, "In 2003, the Governor signed AB 1125, 
          which provided further autonomy to Zone 7 by giving the Board 
          the authority to govern and control all matters that relate to 
          the residence of Zone 7, eliminating the need for dual approvals 
          from the Alameda County Board of Supervisors."

          "However, two important objectives remain to be accomplished. 
          Zone 7 services 15,000 residents in Dougherty Valley, in South 
          San Ramon in Contra Costa County. As long as Zone 7 remains part 
          of the Alameda County Flood Control and Water Conservation 
          District, the residents of Dougherty Valley will be treated as 
          second-class customers, without the right to vote for Zone 7's 
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          directors, and subject to indirect, pass-through taxation." 

          "Secondly, recruiting and retention has become challenging for 
          Zone 7, a situation that has become more critical as excess Zone 
          7 staff have been eliminated to reduce operation costs within 
          the current County Civil Service Structure."

          "Based on the history and the need to address the two key 
          objectives left out by AB 1125, SB 1337 will allow Zone 7 to 
          become an Independent Special District, crossing county lines 
          and more equitably serving all of its customers."

          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS
          One New Authority.   This bill deems abandoned or unused wells 
          that create a water contamination hazard a public nuisance, and 
          provides Zone 7 with specific authorities to address the public 
          nuisance.  

          Will This Improve Water Service or Reduce Rates?   Maybe, but 
          probably not noticeably.  By severing the last bureaucratic 
          connections between the District and Zone 7, some efficiency 
          gains are inevitable.  However, given the large degree of 
          autonomy that Zone 7 has under current law, those efficiency 
          gains are not likely to be prominent.  

           Dual Referral to Governance and Finance  , who will analyze the 
          governance, tax, and other related provisions of this bill.

          SUPPORT Zone 7 Water Agency
                              Dublin San Ramon Services District and 1 
          Individual
          OPPOSITION  None Received













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