Existing law, the Santa Clara Valley Water District Act, creates the Santa Clara Valley Water District and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The district act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district.

This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed.

The district act requires the board of directors to adopt a resolution that divides the district into 7 electoral districts and requires one director to be elected by the voters of each electoral district, as prescribed. The district act requires a candidate for the board of directors to be a resident in the electoral district for which he or she is a candidate and to continue to reside within the electoral district during his or her term of office. The district act requires a vacancy in the office of any director to be filled, as specified.

This bill would require any director appointed or elected to fill a vacancy to represent the electoral district in which the vacancy occurred and to be a qualified elector residing in the electoral district in which the vacancy occurred.

Existing law provides for the compensation of members of a board of directors of a water district, as defined, by the adoption of an ordinance by the governing board of the water district, as specified. Existing law prohibits an ordinance from authorizing compensation for more than a total of 10 days in any calendar month.

This bill, until December 31, 2023, would instead prohibit an ordinance adopted by the board of directors of the Santa Clara Valley Water District to provide compensation to a director from authorizing compensation for more than a total of 15 days in any calendar month. The bill would require the board of directors to annually adopt a written policy describing why more than 10 meetings per month are necessary for the effective operation of the district if the district compensates its members for more than 10 meetings in a calendar month.

Existing law, the Santa Clara Valley Water District Act, creates the Santa Clara Valley Water District and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The district act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district.

This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed.

The district act requires the board of directors to adopt a resolution that divides the district into 7 electoral districts and requires one director to be elected by the voters of each electoral district, as prescribed. The district act requires a candidate for the board of directors to be a resident in the electoral district for which he or she is a candidate and to continue to reside within the electoral district during his or her term of office. The district act requires a vacancy in the office of any director to be filled, as specified.

This bill would require any director appointed or elected to fill a vacancy to represent the electoral district in which the vacancy occurred and to be a qualified elector residing in the electoral district in which the vacancy occurred.

Existing law provides for the compensation of members of a board of directors of a water district, as defined, by the adoption of an ordinance by the governing board of the water district, as specified. Existing law prohibits an ordinance from authorizing compensation for more than a total of 10 days in any calendar month.

This bill, until December 31, 2023, would instead prohibit an ordinance adopted by the board of directors of the Santa Clara Valley Water District to provide compensation to a director from authorizing compensation for more than a total of 15 days in any calendar month. The bill would require the board of directors to annually adopt a written policy describing why more than 10 meetings per month are necessary for the effective operation of the district if the district compensates its members for more than 10 meetings in a calendar month.

Existing law, the Santa Clara Valley Water District Act, creates the Santa Clara Valley Water District and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The district act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district.

This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed.

The district act requires the board of directors to adopt a resolution that divides the district into 7 electoral districts and requires one director to be elected by the voters of each electoral district, as prescribed. The district act requires a candidate for the board of directors to be a resident in the electoral district for which he or she is a candidate and to continue to reside within the electoral district during his or her term of office. The district act requires a vacancy in the office of any director to be filled, as specified.

This bill would require any director appointed or elected to fill a vacancy to represent the electoral district in which the vacancy occurred and to be a qualified elector residing in the electoral district in which the vacancy occurred.

Existing law provides for the compensation of members of a board of directors of a water district, as defined, by the adoption of an ordinance by the governing board of the water district, as specified. Existing law prohibits an ordinance from authorizing compensation for more than a total of 10 days in any calendar month.

This bill bill, until December 31, 2023, would instead prohibit an ordinance adopted by the board of directors of the district to provide compensation to a director from authorizing compensation for more than a total of 20 15 days in any calendar month. The bill would require the board of directors to annually adopt a written policy describing why more than 10 meetings per month are necessary for the effective operation of the district if the district compensates its members for more than 10 meetings in a calendar month.

Existing law, the Santa Clara Valley Water District Act, creates the Santa Clara Valley Water District and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The district act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district.

This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed. The bill would authorize the board of directors of the district to provide the exemption.

The district act requires the board of directors to adopt a resolution that divides the district into 7 electoral districts and requires one director to be elected by the voters of each electoral district, as prescribed. The district act requires a candidate for the board of directors to be a resident in the electoral district for which he or she is a candidate and to continue to reside within the electoral district during his or her term of office. The district act requires a vacancy in the office of any director to be filled, as specified.

This bill would require any director appointed or elected to fill a vacancy to represent the electoral district in which the vacancy occurred and to be a qualified elector residing in the electoral district in which the vacancy occurred.

Existing law provides for the compensation of members of a board of directors of a water district, as defined, by the adoption of an ordinance by the governing board of the water district, as specified. Existing law prohibits an ordinance from authorizing compensation for more than a total of 10 days in any calendar month.

This bill would require the duties of a director of the board to be as necessary and appropriate for the conduct of the responsibilities of the office. The bill would instead prohibit an ordinance adopted by the board of directors of the district to provide compensation to a director from authorizing compensation for more than a total of 20 days in any calendar month.

Existing law, the Santa Clara Valley Water District Act, creates the Santa Clara Valley Water District and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The district act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district.

This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed. The bill would authorize the board of directors of the district to provide the exemption.

The district act requires the board of directors to adopt a resolution that divides the district into 7 electoral districts and requires one director to be elected by the voters of each electoral district, as prescribed. The district act requires a candidate for the board of directors to be a resident in the electoral district for which he or she is a candidate and to continue to reside within the electoral district during his or her term of office. The district act requires a vacancy in the office of any director to be filled, as specified.

This bill would require any director appointed or elected to fill a vacancy to represent the electoral district in which the vacancy occurred and to be a qualified elector residing in the electoral district in which the vacancy occurred.

Existing law provides for the compensation of members of a board of directors of a water district, as defined, by the adoption of an ordinance by the governing board of the water district, as specified. Existing law prohibits an ordinance from authorizing compensation for more than a total of 10 days in any calendar month.

This bill would require the duties of a director of the board to be as necessary and appropriate for the conduct of the responsibilities of the office. The bill would instead prohibit an ordinance adopted by the board of directors of the district to provide compensation to a director from authorizing compensation for more than a total of 20 days in any calendar month.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1889

Author:(Caballero)

As Amended Ver:July 3, 2018

Majority vote

Original Committee Reference: L. GOV.

SUMMARY: Amends the Santa Clara Valley Water District (SCVWD) Act.

The Senate amendments:

1. Reduce the number of days SCVWD board members can be compensated for the performance of their duties from 20 to 15 days in any calendar month.
2. Require that if the SCVWD compensates its directors for more than 10 meetings in a calendar month, the board must annually adopt a written policy describing, based on a finding supported by substantial evidence, why more than 10 meetings per month are necessary for the effective operation of the district.
3. Sunset the increased compensation provisions on December 31, 2023.

EXISTING LAW creates the SCVWD and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district.

AS PASSED BY THE ASSEMBLY, this bill:

1. Required appointed board members of the SCVWD to reside in their electoral district when filling a vacancy.
2. Authorized the SCVWD to require a taxpayer seeking exemption from a special tax levied by the district to verify age, disability status, or annual household income in the following ways:
   1. Age with government-issued identification;
   2. Disability status with government-issued identification and documentation; and,
   3. Household income with a signed certification that includes language consistent with all of the following:
      1. The taxpayer seeking exemption certifies that his or her annual household income is less than the amount approved by the voters of the SCVWD;
      2. The taxpayer seeking exemption pledges to review the SCVWD's annual notice of each year's low-income threshold for special tax exemption; and,
      3. The taxpayer seeking exemption pledges to promptly notify the SCVWD if his or her annual household income exceeds the annual low-income threshold for special tax exemption.
3. Required that the signed certification, reviewed and accepted by the SCVWD, must serve as standing verification of eligibility until the taxpayer notifies the SCVWD of his or her ineligibility for the special tax exemption or until the SCVWD has reason to believe that the taxpayer is ineligible for the exemption.
4. Authorized the SCVWD board members to be compensated for the performance of their duties a maximum of 20 days in any calendar month, instead of current law which specifies a maximum of 10 days.
5. Limited compensable board member activities to the following:
   1. A meeting of the legislative body;
   2. A meeting of an advisory body;
   3. A conference or organized educational activity, including, but not limited to, ethics training; and,
   4. Attendance at occurrences that the board has adopted, in a public meeting, a written policy specifying other types of occasions that constitute performance of official duties.

FISCAL EFFECT: None

COMMENTS:

1. Santa Clara Valley Water District. The SCVWD is the primary water resources agency for Santa Clara County. First formed as the Santa Clara Valley Water Conservation District in 1929, it now acts as the County's water wholesaler and the steward for its streams, creeks, underground aquifers, and district-built reservoirs. The District owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County's groundwater basins and three water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the County. The District is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts, and a commitment to natural flood protection.
2. Bill Summary. This bill primarily amends the SCVWD Act in three ways. First, this bill increases the amount of days the board can be compensated for meetings every calendar month from 10 to 15. Second, when there is a vacancy on the board, this measure requires the individual appointed to fill the vacancy to actually reside within the electoral district that has the vacancy. Third, this bill changes the process for receiving a special tax exemption from an opt-in to an opt-out process, specifying that an individual does not have to opt-in on an annual basis to receive the exemption on an ongoing basis. This bill is sponsored by the SCVWD.
3. Author's Statement. According to the author, "AB 1889 makes three common sense reforms to the Santa Clara Valley Water District Act to improve fairness in the local parcel tax exemption process for low income seniors and the disabled, to encourage a socio-economically diverse and fully engaged Board of Directors, and to ensure that Directors appointed to Board vacancies reside in the geographic districts they represent. The Santa Clara Valley Water District is one of the largest water agencies in the state, managing water supply, groundwater, flood control, and environmental stewardship for a diverse jurisdiction, Silicon Valley, home to nearly 2 million people."
4. Board Vacancies. Prior to 2010, the SCVWD board consisted of five members directly elected, one from each county supervisorial district, and two members appointed by the Santa Clara County Board of Supervisors to serve at large. AB 466 (Coto), Chapter 443, Statutes of 2009, amended the SCVWD Act to require the SCVWD to establish boundaries for seven electoral districts, and provided that the two appointed board members must be elected instead. Elected board members must be residents of the electoral district they represent.

The Government Code prescribes the process for filling a vacancy on a board of directors for any special district. A vacant board seat can be filled by either appointment or by election, and the SCVWD Act requires the District to follow this process. However, AB 466 specified that when a board seat becomes vacant, the new board member must be appointed to represent the SCVWD at large. The SCVWD is asking the Legislature to amend its Act to require that appointments to vacant seats be made from the electoral district in which the vacant seat exists, rather than from anywhere within the SCVWD's jurisdiction.

1. Board Compensation. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. For instance, regional park and open space district board members are capped at receiving $100 per day for a maximum of five days per month. In contrast, most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. If each board member works the maximum number of days, this comes out to $12,000 per calendar year. However, the Water Code does allow these water special districts to increase the amount of compensation by ordinance at a maximum of 5% per year. An ordinance must be adopted every year the compensation is increased. This bill authorizes the SCVWD to be compensated for up to 15 days per month.
2. Arguments in Support. Supporters argue that this bill helps increase the fairness and equality of district practices. This bill also helps ensure equal representation on the board by increasing eligible days board members can receive remuneration, making board positions more accessible to electors across different income brackets.
3. Arguments in Opposition. None on file.

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0003746

 THIRD READING  

Bill No: AB 1889

Author:

: Senate

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/27/18

AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach

ASSEMBLY FLOOR: 71-1, 4/26/18 - See last page for vote

SUBJECT:

SOURCE: Santa Clara Valley Water District

DIGEST:

This bill increases compensation for board members of the Santa Clara Valley Water District until December 31, 2023; requires vacancies on the board to be filled by electoral district; and modifies the process for identifying properties exempt from the district’s parcel tax.

ANALYSIS:

Existing law:

1. Creates the Santa Clara Valley Water District (SCVWD).
2. Authorizes the SCVWD to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district.
3. Authorizes the SCVWD to compensate its board members for up to 10 meetings per month.
4. Requires the SCVWD to establish boundaries for seven electoral districts and provided that the two appointed board members must be elected instead.
5. Requires elected board members must be a resident of the electoral district they represent.
6. Specifies that when a board seat becomes vacant, the new board member must be appointed to represent SCVWD at large.
7. Allows the SCVWD to impose special parcel taxes, so long as those rates are imposed at uniform rates according to land use category and size. The SCVWD can also exempt from those taxes seniors or persons with disabilities who live in and own their homes, if the total income for the household is less than an amount that is approved by the voters of the district.

This bill:

1. Increases, from 10 to 15, the number of meetings per month for which SCVWD board members may be compensated, until December 31, 2023.
2. Includes a cross-reference to the current requirements defining the types of compensable meetings.
3. Provides that if the SCVWD compensates its members for more than 10 meetings in a calendar month, requires the district board to annually adopt a written policy describing, based on a finding supported by substantial evidence, why more than 10 meetings per month are necessary for the effective operation of the district.
4. Requires appointed board members of SCVWD to reside in their electoral district when filling a vacancy.
5. Allows SCVWD to require a taxpayer seeking exemption from a special tax levied by the district to verify age, disability status, or annual household income in the following ways:
   1. Age with government-issued identification;
   2. Disability status with government-issued identification and documentation; and,
   3. Household income if the taxpayer seeking exemption certifies that: (1) his or her annual household income is less than the amount approved by the voters of SCVWD; (2) he or she pledges to review the SCVWD’s annual notice of each year’s low-income threshold for special tax exemption; and (3) he or she pledges to promptly notify SCVWD if his or her annual household income exceeds the threshold for exemption.
6. Provides that the signed certification, reviewed and accepted by SCVWD, serves as standing verification of eligibility until the taxpayer notifies SCVWD of his or her ineligibility for the special tax exemption or until SCVWD has reason to believe that the taxpayer is ineligible for the exemption.

Background

Santa Clara Valley Water District. The SCVWD is the primary water resources agency for Santa Clara County. First formed as the Santa Clara Valley Water Conservation District in 1929, it now acts as the County's water wholesaler and the steward for its streams, creeks, underground aquifers, and district-built reservoirs. The SCVWD owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County’s groundwater basins and three water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the County. The SCVWD is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts, and a commitment to natural flood protection.

Vacancies. Prior to 2010, the SCVWD board of directors consisted of five members directly elected, one from each county supervisorial district, and two members appointed by the Santa Clara County Board of Supervisors to serve at large. AB 466 (Coto, Chapter 443, Statutes of 2009) amended the SCVWD Act to require the SCVWD to establish boundaries for seven electoral districts and provided that the two appointed board members must be elected instead. Elected board members must be a resident of the electoral district they represent.

The Government Code prescribes the process for filling a vacancy on a board of directors for any special district. A vacant board seat can be filled by either appointment or by election, and the SCVWD Act requires the SCVWD to follow this process. However, AB 466 specified that when a board seat becomes vacant, the new board member must be appointed to represent the SCVWD at large.

Parcel taxes. The California Constitution states that taxes levied by local governments are either general taxes, subject to majority approval of its voters, or special taxes, subject to a two-thirds vote (Article XIII C). Proposition 13 (1978) required a two-thirds vote of each house of the Legislature for state tax increases, and a two-thirds vote for local special taxes. Proposition 62 (1986) prohibited local agencies from imposing general taxes without majority approval of local voters, and a two-thirds vote for special taxes. Proposition 218 (1996) extended those vote thresholds to charter cities, and limited local agencies’ powers to levy new assessments, fees, and taxes.

One common form of local tax is the parcel tax, which can be imposed by cities, counties, or special districts. In 2012, voters within SCVWD’s boundaries approved Measure B, the Safe, Clean Water and Natural Flood Protection Program, as a countywide special parcel tax for 15 years. Measure B included a provision to exempt low-income seniors from payment of the tax. To qualify for the exemption, a person must submit an application to SCVWD that provides proof of age and certifies under penalty of perjury that the applicant’s income is lower than a specified amount. If approved, the individual is exempted from the parcel tax for that year. Every year thereafter, SCVWD sends the exempt individual a simplified verification form that must be filled out and mailed back to maintain that person’s exempt status. In fiscal year 2017-18, 4,838 households received the exemption, totaling approximately $277,000.

Board member meetings. A local agency may compensate members of its legislative body for attending specified events (AB 1234, Salinas, Chapter 700, Statutes of 2005):

• A meeting of the legislative body;
• A meeting of an advisory body;
• A conference or educational activity that complies with the Brown Act, including ethics training; and
• Other events, but only if the governing body has adopted a written policy specifying those other occasions.

Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Although SCVWD’s principal act sets the base stipend at $100 per meeting, SCVWD’s board has frequently exercised its ability to increase that rate by five percent annually, such that the current stipend amount is $273 per meeting, for a total of almost $33,000 per year. The SCVWD’s seven board members meet on average 12 times per month, but the district’s principal act limits them to being compensated for a maximum of 10 meetings per month.

Citing a desire to eliminate barriers that prevent low-income individuals from sitting on the board, the SCVWD wants to increase the number of meetings for which board members can be compensated. The SCVWD also wants the Legislature to amend its principal act to require that appointments to vacant seats be made from the electoral district in which the vacant seat exists, rather than from anywhere within the district’s jurisdiction, and to make it easier for low-income seniors to receive an exemption from its parcel tax.

Comments

1. Purpose of the bill. According to the author, “AB 1889 makes three common sense reforms to the Santa Clara Valley Water District Act (District Act) to improve fairness in the local parcel tax exemption process for low income seniors, to encourage a socio-economically diverse and fully engaged Board of Directors, and to ensure that Directors appointed to Board vacancies reside in the geographic districts they represent. The Santa Clara Valley Water District (District) is one of the largest water agencies in the state, managing water supply, groundwater, flood control, and environmental stewardship for a diverse jurisdiction, Silicon Valley, home to nearly 2 million people.”
2. Paying the piper. Current law allows local officials to say what constitutes official business that's worth paying for. In reforming local government compensation practices in 2005, legislators granted local agencies flexibility in setting the types of events that qualify for compensation, as long as the agency has adopted written policies. If an agency were willing to adopt a compensation policy that allowed it, a local official could claim compensation for meeting with individual constituents or even having lunch with vendors. Having a low statutory cap on the number of meetings builds in a safeguard against inappropriate payments for activities—it lessens the gains that a director might see from approving additional types of meetings because they are limited in number. AB 1889 potentially weakens this limitation by increasing the number of meetings for which board members may be compensated, potentially eroding the public’s trust in the motivations of their elected officials. In fact, a report on SCVWD board member meetings during the second quarter of 2017 counted a tour of district facilities with neighborhood associations, multiple legislative lobby days, and a ribbon cutting ceremony as compensable meetings. Given that SCVWD has ample professional staff to administer the operations of the district, it is unclear why so many meetings are needed. In addition, other water agencies or special districts will likely follow suit with similar requests. The Senate Governance and Finance Committee may wish to consider whether authorizing compensation for additional meetings is needed and whether it sets a precedent for large increases in board compensation more generally.

Related/Prior Legislation

SB 519 (Beall, 2017) also requires SCVWD vacancies to be appointed to represent districts, rather than at-large. SB 519 is currently pending on the Assembly Floor.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 7/3/18)

Santa Clara Valley Water District (source)

AFSCME Council 57

AFSCME Local 100

Asian Law Alliance

Association of California Water Agencies

Bay Area Council

California Municipal Utilities Association

California Special Districts Association

California State Conference of the NAACP

La Raza Roundtable de California

San Jose/Silicone Valley NAACP

Silicon Valley Leadership Group

OPPOSITION: (Verified 7/3/18)

None received

ASSEMBLY FLOOR: 71-1, 4/26/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Brough

NO VOTE RECORDED: Travis Allen, Bloom, Carrillo, Fong, Cristina Garcia, Rodriguez

Prepared by:

7/3/18 15:23:08

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Mike McGuire, Chair

2017 - 2018 Regular

Santa Clara Valley Water District

Increases compensation for board members of the Santa Clara Valley Water District; requires vacancies on the board to be filled by electoral district; and modifies the process for identifying properties exempt from the district’s parcel tax.

Background

Santa Clara Valley Water District. The Santa Clara Valley Water District (SCVWD) is the primary water resources agency for Santa Clara County. First formed as the Santa Clara Valley Water Conservation District in 1929, it now acts as the County's water wholesaler and the steward for its streams, creeks, underground aquifers, and district-built reservoirs. The District owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County’s groundwater basins and three water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the County. The District is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts, and a commitment to natural flood protection.

Vacancies. Prior to 2010, the SCVWD Board of Directors consisted of five members directly elected, one from each county supervisorial district, and two members appointed by the Santa Clara County Board of Supervisors to serve at large. AB 466 (Coto, 2009) amended the SCVWD Act to require the District to establish boundaries for seven electoral districts and provided that the two appointed board members must be elected instead. Elected board members must be a resident of the electoral district they represent.

The Government Code prescribes the process for filling a vacancy on a board of directors for any special district. A vacant board seat can be filled by either appointment or by election, and the SCVWD Act requires the District to follow this process. However, AB 466 specified that when a board seat becomes vacant, the new board member must be appointed to represent the District at large.

Parcel taxes. The California Constitution states that taxes levied by local governments are either general taxes, subject to majority approval of its voters, or special taxes, subject to a two-thirds vote (Article XIII C). Proposition 13 (1978) required a two-thirds vote of each house of the Legislature for state tax increases, and a two-thirds vote for local special taxes. Proposition 62 (1986) prohibited local agencies from imposing general taxes without majority approval of local voters, and a two-thirds vote for special taxes. Proposition 218 (1996) extended those vote thresholds to charter cities, and limited local agencies’ powers to levy new assessments, fees, and taxes.

One common form of local tax is the parcel tax, which can be imposed by cities, counties, or special districts. Parcel taxes are not ad valorem or assessed based on the value of a property like property taxes; instead they are generally a flat rate assessed per parcel regardless of its size, or per square foot of a parcel or its improvements. Counties collect parcel taxes with property taxes, and then remit funds to the agency imposing the tax. Property tax law generally guides parcel tax collection. Any tax imposed by a special district is a special tax needing two-thirds voter approval.

The SCVWD Act allows the district to impose special parcel taxes, so long as those rates are imposed at uniform rates according to land use category and size. The SCVWD can also exempt from those taxes seniors or persons with disabilities who live in and own their homes, if the total income for the household is less than an amount that is approved by the voters of the district.

Measure B. In 2012, voters within SCVWD’s boundaries approved Measure B, the Safe, Clean Water and Natural Flood Protection Program, as a countywide special parcel tax for 15 years. Measure B extended a preexisting parcel tax initially levied in 2000 to continue to fund improvements to water supplies, water quality, flood protection, and the natural environment in Santa Clara County. In fiscal year 2017-18, Measure B raised about $43 million, although that amount increases over time to keep up with inflation. Under Measure B, each single-family parcel paid $63 in 2017-18; other parcel types pay more or less.

Measure B included a provision to exempt low-income seniors from payment of the tax. To qualify for the exemption, a person must submit an application to SCVWD that provides proof of age and certifies under penalty of perjury that the applicant’s income is lower than a specified amount. If approved, the individual is exempted from the parcel tax for that year. Every year thereafter, SCVWD sends the exempt individual a simplified verification form that must be filled out and mailed back to maintain that person’s exempt status. In fiscal year 2017-18, 4,838 households received the exemption, totaling approximately $277,000.

Board member meetings. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. Due to the differing enabling acts, the amount that each type of special district can compensate its board members varies significantly. The most common compensation for special districts' board members are stipends. Many districts pay stipends to their board members for attending a meeting or performing a day's work, following statutory schedules. Most types of special districts can compensate board members $100 or more per meeting, while others are prohibited from providing any compensation.

A local agency may compensate members of its legislative body for attending specified events (AB 1234, Salinas, 2005):

• A meeting of the legislative body;
• A meeting of an advisory body;
• A conference or educational activity that complies with the Brown Act, including ethics training; and
• Other events, but only if the governing body has adopted a written policy specifying those other occasions.

Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. In addition, many, but not all, districts may also increase the daily rate for attending meetings by five percent per year by annually adopting an ordinance that provides for such an increase.

Many special districts can also reimburse the members of their legislative bodies for their actual and necessary expenses to attend meetings. Local officials must fill out expense reports and provide receipts to receive reimbursement. At their next regular meeting after the meeting for which reimbursement was provided, officials must also give brief reports about the meetings they attended at the agency's expense.

Although SCVWD’s principal act sets the base stipend at $100 per meeting, SCVWD’s board has frequently exercised its ability to increase that rate by 5 percent annually, such that the current stipend amount is $273 per meeting, for a total of almost $33,000 per year. The SCVWD’s seven board members meet on average 12 times per month, but the district’s principal act limits them to being compensated for a maximum of 10 meetings per month.

Citing a desire to eliminate barriers that prevent low-income individuals from sitting on the board, the SCVWD wants to increase the number of meetings for which board members can be compensated. The SCVWD also wants the Legislature to amend its principal act to require that appointments to vacant seats be made from the electoral district in which the vacant seat exists, rather than from anywhere within the District’s jurisdiction, and to make it easier for low-income seniors to receive an exemption from its parcel tax.

Proposed Law

Assembly Bill 1889 increases, from 10 to 20, the number of meetings per month for which SCVWD board members may be compensated. The bill also includes a cross-reference to the current requirements defining the types of compensable meetings.

AB 1889 makes changes to the SCVWD Act to require appointed board members of SCVWD to reside in their electoral district when filling a vacancy. AB 1889 also allows SCVWD to require a taxpayer seeking exemption from a special tax levied by the district to verify age, disability status, or annual household income in the following ways:

• Age with government-issued identification;
• Disability status with government-issued identification and documentation; and,
• Household income if the taxpayer seeking exemption certifies that: (1) his or her annual household income is less than the amount approved by the voters of SCVWD; (2) he or she pledges to review the SCVWD’s annual notice of each year’s low-income threshold for special tax exemption; and (3) he or she pledges to promptly notify SCVWD if his or her annual household income exceeds the threshold for exemption.

AB 1889 provides that the signed certification, reviewed and accepted by SCVWD, serves as standing verification of eligibility until the taxpayer notifies SCVWD of his or her ineligibility for the special tax exemption or until SCVWD has reason to believe that the taxpayer is ineligible for the exemption.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “AB 1889 makes three common sense reforms to the Santa Clara Valley Water District Act (District Act) to improve fairness in the local parcel tax exemption process for low income seniors, to encourage a socio-economically diverse and fully engaged Board of Directors, and to ensure that Directors appointed to Board vacancies reside in the geographic districts they represent. The Santa Clara Valley Water District (District) is one of the largest water agencies in the state, managing water supply, groundwater, flood control, and environmental stewardship for a diverse jurisdiction, Silicon Valley, home to nearly 2 million people.”

2. Paying the piper. Current law allows local officials to say what constitutes official business that's worth paying for. In reforming local government compensation practices in 2005, legislators granted local agencies flexibility in setting the types of events that qualify for compensation, as long as the agency has adopted written policies. If an agency were willing to adopt a compensation policy that allowed it, a local official could claim compensation for meeting with individual constituents or even having lunch with vendors. Having a low statutory cap on the number of meetings builds in a safeguard against inappropriate payments for activities—it lessens the gains that a director might see from approving additional types of meetings because they are limited in number. AB 1889 potentially weakens this limitation by increasing the number of meetings for which board members may be compensated, potentially eroding the public’s trust in the motivations of their elected officials. In fact, a report on SCVWD board member meetings during the second quarter of 2017 counted a tour of district facilities with neighborhood associations, multiple legislative lobby days, and a ribbon cutting ceremony as compensable meetings. Given that SCVWD has ample professional staff to administer the operations of the district, it is unclear why so many meetings are needed. In addition, other water agencies or special districts will likely follow suit with similar requests. The Committee may wish to consider whether authorizing compensation for additional meetings is needed and whether it sets a precedent for large increases in board compensation more generally. If increased compensation is justified, the Committee may wish to consider amending AB 1889 to allow board members to only be compensated for meetings above the current 10 meeting limit if the meeting has a quorum of board members present.

3. Equal access. The high number of meetings SCVWD board members attend amount to a full-time job, yet board members currently are limited to making approximately $33,000 per year. The SCVWD notes that some candidates have been discouraged from running for office over concern of being able to support themselves, with the result that diversity on the board is reduced because only retired or independently wealthy individuals can afford to hold office. And indeed, the current board is older, whiter, and wealthier than the residents of the district. As such, one goal of increasing compensation in this bill is to allow for greater diversity on the board. However, the lack of diversity on governing boards is not a challenge unique to SCVWD: across California, 55 percent of elected officials are white men, but they only make up 19 percent of the state’s population, according to the Reflective Democracy Campaign. It is unclear whether increasing compensation for board members will truly result in more diversity, rather than enriching the already privileged members of SCVWD’s board. To ensure that the bill is successful in increasing diversity, the Committee may wish to consider amending AB 1889 to:

• Provide that the compensation increase only goes into effect after the terms of the current board members have expired;
• Provide a sunset to evaluate how the increase in compensation has improved board diversity; and
• Require SCVWD to report on the success of their efforts to improve diversity on the board and evaluate additional steps that the board can take, including public financing of campaigns.

4. Let’s get technical. AB 1889 includes an incorrect internal cross-reference to the paragraph that allows for certification of income in line 28 of page 3 of the bill. The Committee may wish to consider amending AB 1889 to correct this cross-reference.

Assembly Actions

Assembly Local Government Committee: 9-0

Assembly Floor: 71-1

Support and Opposition

(6/21/18)

Support: American Federation of State County and Municipal Employees, AFL-CIO; Asian Law Alliance; Association of California Water Agencies; Bay Area Council; California Municipal Utilities Association; California Special Districts Association; California State Conference, NAACP; LaRaza Roundtable de California; San Jose/Silicon Valley, NAACP; Santa Clara Valley Water District; Silicon Valley Leadership Group.

Opposition: Unknown.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1889

Author:(Caballero)

As Amended Ver:April 4, 2018

Majority vote

SUMMARY: Amends the Santa Clara Valley Water District (SCVWD) Act. Specifically, this bill:

1. Requires appointed board members of the SCVWD to reside in their electoral district when filling a vacancy.
2. Authorizes the SCVWD to require a taxpayer seeking exemption from a special tax levied by the district to verify age, disability status, or annual household income in the following ways:
   1. Age with government-issued identification;
   2. Disability status with government-issued identification and documentation; and,
   3. Household income with a signed certification that includes language consistent with all of the following:
      1. The taxpayer seeking exemption certifies that his or her annual household income is less than the amount approved by the voters of the SCVWD;
      2. The taxpayer seeking exemption pledges to review the SCVWD's annual notice of each year's low-income threshold for special tax exemption; and,
      3. The taxpayer seeking exemption pledges to promptly notify the SCVWD if his or her annual household income exceeds the annual low-income threshold for special tax exemption.
3. Requires that the signed certification, reviewed and accepted by the SCVWD, must serve as standing verification of eligibility until the taxpayer notifies the SCVWD of his or her ineligibility for the special tax exemption or until the SCVWD has reason to believe that the taxpayer is ineligible for the exemption.
4. Authorizes the SCVWD board members to be compensated for the performance of their duties a maximum of 20 days in any calendar month, instead of current law which specifies a maximum of 10 days.
5. Limits compensable board member activities to the following:
   1. A meeting of the legislative body;
   2. A meeting of an advisory body;
   3. A conference or organized educational activity, including, but not limited to, ethics training; and,
   4. Attendance at occurrences that the board has adopted, in a public meeting, a written policy specifying other types of occasions that constitute performance of official duties.

EXISTING LAW creates the SCVWD and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district.

FISCAL EFFECT: None

COMMENTS:

1. Santa Clara Valley Water District. The SCVWD is the primary water resources agency for Santa Clara County. First formed as the Santa Clara Valley Water Conservation District in 1929, it now acts as the County's water wholesaler and the steward for its streams, creeks, underground aquifers, and district-built reservoirs. The District owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County's groundwater basins and three water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the County. The District is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts, and a commitment to natural flood protection.
2. Bill Summary. This bill primarily amends the SCVWD Act in three ways. First, AB 1889 increases the amount of days the board can be compensated for meetings every calendar month from 10 to 20. Second, when there is a vacancy on the board, this measure requires the individual appointed to fill the vacancy to actually reside within the electoral district that has the vacancy. Third, this bill changes the process for receiving a special tax exemption from an opt-in to an opt-out process, specifying that an individual does not have to opt-in on an annual basis to receive the exemption on an ongoing basis. This bill is sponsored by the SCVWD.
3. Author's Statement. According to the author, "AB 1889 makes three common sense reforms to the SCVWD Act to improve fairness in the local parcel tax exemption process for low income seniors and the disabled, to encourage a social-economically diverse and fully engaged board of directors, and to ensure that directors appointed to board vacancies reside in the geographic districts they represent. The SCVWD is one of the largest water agencies in the State, managing water supply, groundwater, flood control, and environmental stewardship for a diverse jurisdiction, Silicon Valley, home to nearly 2,000,000 people.

"Each year, about 10% of senior low-income taxpayers fail to return an annual income verification for a local parcel tax exemption despite numerous notices encouraging them to re-verify their status. AB 1889 clarifies that the SCVWD need only verify low-income status once, and that the taxpayer's eligibility for the parcel tax exemption may remain in effect until the SCVWD is notified of a change in eligibility or has reason to believe the taxpayer is not eligible for the exemption.

"AB 1889 defines the duties of a board member and increases the number of meeting days for which the board members are eligible for remuneration from up to 10 days per month to up to 20 days per month, reflecting the actual number of working days required for the position. Because the meeting allowance is currently capped at 10 days per month, directors often must work long hours without remuneration. That means the only people who can realistically serve on the board are either retired or independently wealthy. AB 1889 will enable board members to more fully dedicate themselves to the increased number and expanding scope of responsibilities of the office. It also will increase the capacity of board members to provide more public oversight of the SCVWD's water supply, flood control, and groundwater management programs for nearly 2,000,000 people in Santa Clara County. By increasing the limit on the number of meeting days allowed in a month, qualified individuals will be able to serve on the SCVWD board, regardless of their personal financial circumstances.

"AB 1889 will require that the appointment to a vacant seat on the SCVWD board be made from the geographic district in which the vacancy exists rather than from anywhere in Santa Clara County. The SCVWD is governed by an independently elected seven-member board which represents geographically distinct districts where each board member serves approximately 260,000 constituents. The SCVWD Act currently allows board vacancies to be filled on an 'at-large' basis by a person residing anywhere within the SCVWD's jurisdiction of Santa Clara County. AB 1889 will ensure appropriate community representation by requiring the appointment to a vacant seat be made from the geographic district in which the vacancy exists rather than from anywhere in the County.

"AB 1889 will help ensure appropriate, community bases governance for a large special district that manages water supply, groundwater, flood control, and environmental stewardship for Silicon Valley and all of Santa Clara County."

1. Board Vacancies. Prior to 2010, the SCVWD board consisted of five members directly elected, one from each county supervisorial district, and two members appointed by the Santa Clara County Board of Supervisors to serve at large. AB 466 (Coto), Chapter 443, Statutes of 2009, amended the SCVWD Act to require the SCVWD to establish boundaries for seven electoral districts, and provided that the two appointed board members must be elected instead. Elected board members must be residents of the electoral district they represent.

The Government Code prescribes the process for filling a vacancy on a board of directors for any special district. A vacant board seat can be filled by either appointment or by election, and the SCVWD Act requires the District to follow this process. However, AB 466 specified that when a board seat becomes vacant, the new board member must be appointed to represent the SCVWD at large. The SCVWD is asking the Legislature to amend its act to require that appointments to vacant seats be made from the electoral district in which the vacant seat exists, rather than from anywhere within the SCVWD's jurisdiction.

1. Board Compensation. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. For instance, regional park and open space district board members are capped at receiving $100 per day for a maximum of five days per month. In contrast, most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. If each board member works the maximum number of days, this comes out to $12,000 per calendar year. However, the Water Code does allow these water special districts to increase the amount of compensation by ordinance at a maximum of 5% per year. An ordinance must be adopted every year the compensation is increased. This bill authorizes the SCVWD to be compensated for up to 20 days per month, essentially doubling the amount the board members can receive.
2. Arguments in Support. Supporters argue that this bill helps increase the fairness and equality of district practices. This bill also helps ensure equal representation on the board by increasing eligible days board members can receive remuneration, making board positions more accessible to electors across different income brackets.
3. Arguments in Opposition. None on file.

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0002709

Date of Hearing: April 18, 2018

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 1889 (

Author:Caballero) – As Amended Ver:April 4, 2018

SUBJECT: Santa Clara Valley Water District.

SUMMARY: Amends the Santa Clara Valley Water District (SCVWD) Act. Specifically, this bill:

1. Requires appointed board members of the SCVWD to reside in their electoral district when filling a vacancy.
2. Authorizes the SCVWD to require a taxpayer seeking exemption from a special tax levied by the district to verify age, disability status, or annual household income in the following ways:
   1. Age with government-issued identification;
   2. Disability status with government-issued identification and documentation; and,
   3. Household income with a signed certification that includes language consistent with all
      of the following:
      1. The taxpayer seeking exemption certifies that his or her annual household income is less than the amount approved by the voters of the SCVWD;
      2. The taxpayer seeking exemption pledges to review the SCVWD’s annual notice
         of each year’s low-income threshold for special tax exemption; and,
      3. The taxpayer seeking exemption pledges to promptly notify the SCVWD if his or her annual household income exceeds the annual low-income threshold for special tax exemption.
3. Requires that the signed certification, reviewed and accepted by the SCVWD, must serve as standing verification of eligibility until the taxpayer notifies the SCVWD of his or her ineligibility for the special tax exemption or until the SCVWD has reason to believe that the taxpayer is ineligible for the exemption.
4. Authorizes the SCVWD board members to be compensated for the performance of their duties a maximum of 20 days in any calendar month, instead of current law which specifies a maximum of 10 days.
5. Limits compensable board member activities to the following:
   1. A meeting of the legislative body;
   2. A meeting of an advisory body;
   3. A conference or organized educational activity, including, but not limited to, ethics training; and,
   4. Attendance at occurrences that the board has adopted, in a public meeting, a written policy specifying other types of occasions that constitute performance of official duties.

EXISTING LAW: Creates the SCVWD and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district.

FISCAL EFFECT: None

COMMENTS:

1. Santa Clara Valley Water District. The SCVWD is the primary water resources agency for Santa Clara County. First formed as the Santa Clara Valley Water Conservation District in 1929, it now acts as the County's water wholesaler and the steward for its streams, creeks, underground aquifers, and district-built reservoirs. The District owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County’s groundwater basins and three water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the County. The District is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts, and a commitment to natural flood protection.
   
2. Bill Summary. This bill primarily amends the SCVWD Act in three ways. First, AB 1889 increases the amount of days the board can be compensated for meetings every calendar month from 10 to 20. Second, when there is a vacancy on the board, this measure requires the individual appointed to fill the vacancy to actually reside within the electoral district that has the vacancy. Third, this bill changes the process for receiving a special tax exemption from an opt-in to an opt-out process, specifying that an individual does not have to opt-in on an annual basis to receive the exemption on an ongoing basis. This bill is sponsored by the SCVWD.
   
3. Author’s Statement. According to the author, “AB 1889 makes three common sense reforms to the SCVWD Act to improve fairness in the local parcel tax exemption process
   for low income seniors and the disabled, to encourage a social-economically diverse and fully engaged board of directors, and to ensure that directors appointed to board vacancies reside in the geographic districts they represent. The SCVWD is one of the largest water agencies in the State, managing water supply, groundwater, flood control, and environmental stewardship for a diverse jurisdiction, Silicon Valley, home to nearly 2,000,000 people.

“Each year, about 10% of senior low-income taxpayers fail to return an annual income verification for a local parcel tax exemption despite numerous notices encouraging them to re-verify their status. AB 1889 clarifies that the SCVWD need only verify low-income status once, and that the taxpayer’s eligibility for the parcel tax exemption may remain in effect until the SCVWD is notified of a change in eligibility or has reason to believe the taxpayer is not eligible for the exemption.

“AB 1889 defines the duties of a board member and increases the number of meeting days for which the board members are eligible for remuneration from up to 10 days per month to up to 20 days per month, reflecting the actual number of working days required for the position. Because the meeting allowance is currently capped at 10 days per month, directors often must work long hours without remuneration. That means the only people who can realistically serve on the board are either retired or independently wealthy. AB 1889 will enable board members to more fully dedicate themselves to the increased number and expanding scope of responsibilities of the office. It also will increase the capacity of board members to provide more public oversight of the SCVWD’s water supply, flood control, and groundwater management programs for nearly 2,000,000 people in Santa Clara County. By increasing the limit on the number of meeting days allowed in a month, qualified individuals will be able to serve on the SCVWD board, regardless of their personal financial circumstances.

“AB 1889 will require that the appointment to a vacant seat on the SCVWD board be made from the geographic district in which the vacancy exists rather than from anywhere in Santa Clara County. The SCVWD is governed by an independently elected seven-member board which represents geographically distinct districts where each board member serves approximately 260,000 constituents. The SCVWD Act currently allows board vacancies to be filled on an ‘at-large’ basis by a person residing anywhere within the SCVWD’s jurisdiction of Santa Clara County. AB 1889 will ensure appropriate community representation by requiring the appointment to a vacant seat be made from the geographic district in which the vacancy exists rather than from anywhere in the County.

“AB 1889 will help ensure appropriate, community bases governance for a large special district that manages water supply, groundwater, flood control, and environmental stewardship for Silicon Valley and all of Santa Clara County.”

1. Board Vacancies. Prior to 2010, the SCVWD board consisted of five members directly elected, one from each county supervisorial district, and two members appointed by the Santa Clara County Board of Supervisors to serve at large. AB 466 (Coto), Chapter 443, Statutes of 2009, amended the SCVWD Act to require the SCVWD to establish boundaries for seven electoral districts, and provided that the two appointed board members must be elected instead. Elected board members must be residents of the electoral district they represent.

The Government Code prescribes the process for filling a vacancy on a board of directors
for any special district. A vacant board seat can be filled by either appointment or by election, and the SCVWD Act requires the District to follow this process. However, AB 466 specified that when a board seat becomes vacant, the new board member must be appointed to represent the SCVWD at large. The SCVWD is asking the Legislature to amend its act
to require that appointments to vacant seats be made from the electoral district in which the vacant seat exists, rather than from anywhere within the SCVWD’s jurisdiction.

1. Board Compensation. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. For instance, regional park and open space district board members are capped at receiving $100 per day for a maximum of five days per month. In contrast, most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. If each board member works the maximum number of days, this comes out to $12,000 per calendar year. However, the Water Code does allow these water special districts to increase the amount of compensation by ordinance at a maximum of five% per year. An ordinance must be adopted every year the compensation is increased. This bill authorizes the SCVWD to be compensated for up to
   20 days per month, essentially doubling the amount the board members can receive.
   
2. Arguments in Support. Supporters argue that this bill helps increase the fairness and equality of district practices. AB 1889 also helps ensure equal representation on the board
   by increasing eligible days board members can receive remuneration, making board positions more accessible to electors across different income brackets.
3. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Santa Clara Valley Water District [SPONSOR]

California Municipal Utilities Association

Silicon Valley Leadership Group

Opposition

None on file

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958