Existing law, the Pajaro Valley Water Management Agency Act, specifies qualifications for the 7-member board of directors that governs the agency, 4 of whom are elected and 3 of whom are appointed. Existing law requires that the 3 appointed members reside within the jurisdiction of the appointing power, derive at least 51% of their net income from the production of agricultural products, as certified by affidavit, and be appointed by the Board of Supervisors of Monterey County, the Board of Supervisors of Santa Cruz County, and the City of Watsonville, respectively.

This bill would require the appointee of the City of Watsonville to instead have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the Pajaro Valley agricultural industry.

Existing law, the Pajaro Valley Water Management Agency Act, specifies qualifications for the 7-member board of directors that governs the agency, 4 of whom are elected and 3 of whom are appointed. Existing law requires that the 3 appointed members reside within the jurisdiction of the appointing power, derive at least 51% of their net income from the production of agricultural products, as certified by affidavit, and be appointed by the Board of Supervisors of Monterey County, the Board of Supervisors of Santa Cruz County, and the City of Watsonville, respectively.

This bill would require the appointee of the City of Watsonville to instead have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the Pajaro Valley agricultural industry.

Existing law, the Pajaro Valley Water Management Agency Act, specifies qualifications for the 7-member board of directors that governs the agency, 4 of whom are elected and 3 of whom are appointed. Existing law requires that the 3 appointed members reside within the jurisdiction of the appointing power, derive at least 51% of their net income from the production of agricultural products, as certified by affidavit, and be appointed by the Board of Supervisors of Monterey County, the Board of Supervisors of Santa Cruz County, and the City of Watsonville, respectively.

This bill would require the appointee of the City of Watsonville to instead have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the Pajaro Valley agricultural industry.

 CONSENT  

Bill No: AB 588

Author: Robert Rivas (D), et al.

Introduced: 2/9/23

Vote: 21

SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 6/14/23

AYES: Caballero, Seyarto, Blakespear, Dahle, Durazo, Glazer, Skinner, Wiener

ASSEMBLY FLOOR: 60-0, 3/30/23 (Consent) - See last page for vote

SUBJECT: Pajaro Valley Water Management Agency Act: board members

SOURCE: Pajaro Valley Water Management Agency

DIGEST:

This bill expands the eligibility for the City of Watsonville’s appointed board member on the Pajaro Valley Water Management Agency (PVWMA) by allowing them to have a “close and continuing” relationship with the agricultural community.

ANALYSIS:

Existing law:

1. Establishes PVWMA, and prescribes its boundaries, organization, operations, management, and other powers and duties.
2. Provides findings and declarations that the management of the water resources within the PVWMA for agricultural, municipal, industrial, and other beneficial uses is in the public interest and that the creation of a water agency is for the common benefit of all water users within the agency.
3. Requires that PVWMA be governed by the board of directors which consists of seven members. Each member of the board must be a voter of and a resident within PVWMA. Four members are elected and three appointed.
4. Specifies that the appointed members of the board must:
   1. Reside within the jurisdiction of the appointing power;
   2. Derive at least 51% of their net income from the production of agricultural products; and
   3. Be appointed by the following agencies: one member each by the Board Supervisors of Monterey County, the Board of Supervisors of Santa Cruz County, and the City of Watsonville. The appointments may be made from lists of not less than three nor more than five persons submitted to the appointing power for each vacancy by the Santa Cruz and Monterey County Farm Bureaus.
5. Requires that the term of office of each elected board member be four years and the term of office for an appointed board member to be two years.

This bill:

1. Removes the requirement for the member of the PVWMA board from Watsonville to derive at least 51% of their net income from the production of agricultural products.
2. Replaces that requirement with a requirement that Watsonville’s appointee have a primary income that involves, or, if the appointee is retired, did involve a close and continuing relationship with the Pajaro Valley agricultural industry.

Background

Created by the Legislature in 1984 (AB 2037, Mello, Chapter 257, Statutes of 1984), and approved by the voters, PVWMA is a water management district formed to manage existing and supplemental water supplies in order to prevent further increase in, and to accomplish continuing reduction of, long-term overdraft. PVWMA also works to provide and ensure sufficient water supplies for present and future anticipated needs within its boundaries, generally the greater coastal Pajaro Valley.

Watsonville is a city of about 51,525 people, located in Santa Cruz County. Major industries include manufacturing, retail, food processing, and agriculture. In 1990, about five years after the PVWMA was established, there were about 24,800 total farm industry workers who made up about 18% of the workforce. In 2022, there were only 7,000 total farm industry workers who made up about 5% of the workforce, a significant decline.

According to the author’s office, Rosemarie Imazio was the City of Watsonville’s appointee to the PV Water Board from 1998 until November 30, 2019. After her retirement, the City was unable to find a new appointee until it appointed Abel Sanchez in July 2021. From November 2019 to July 2021, the Board reports that it struggled, but was ultimately able to obtain, a quorum at all of its meetings. Though Abel Sanchez is still the appointee from the City of Watsonville today, the author wants to make it easier for the City of Watsonville to appoint a representative to the PVWMA in the future so that it can regularly establish a quorum.

Comments

1. Purpose of the bill. According to the author, “The PVWMA has made every effort, yet still struggled, to keep the City of Watsonville’s appointed seat on the board filled. Despite substantial outreach in-person, via phone, and online, the City of Watsonville’s appointed seat recently suffered a vacancy for two and a half years following the retirement of the previously serving City of Watsonville appointee after twenty years of continuous service. Historically, farmers and ranchers have served most frequently in the role of appointed board members. However, over the years, fewer farmers and ranchers have continued to reside in Watsonville proper. Instead, they largely live outside the city limits. The board positions are time-consuming (on average, approximately four hours minimum per month) and do not pay well (generally, a $100 monthly stipend). The approximately 60,000 residents of the City of Watsonville lose their appointed representation on the board unless this seat remains filled on a regular basis. As California and the Central Coast region grapple with ongoing water challenges, including a critically overdrafted groundwater basin, these residents depend on PVWMA for the long-term reliability of their water supply; they deserve fair representation on the PVWMA board as the agency makes decisions affecting the long-term future of the region’s water systems.”
2. A close and continuing relationship. While the percentage of an appointee’s net income from the production of agricultural products is an objective measure to determine eligibility, the term “close and continuing relationship” is not a term typically used in California law to describe a person’s relationship with an industry as a qualification requirement for membership on a public agency board. According to the author, the term came about through meetings of an ad hoc committee of the Pajaro Valley Water Management Board, which included three of its directors, who determined that the language strikes the right balance between agricultural-based representation and broad enough eligibility for Watsonville’s appointee. Does AB 588’s new requirement for Watsonville’s appointee strike the right balance between ensuring agricultural representation and broadening the eligibility requirements to ensure Watsonville can fill its seat on the board?

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

SUPPORT: (Verified 6/16/23)

Pajaro Valley Water Management Agency (source)

California Special Districts Association

City of Watsonville

OPPOSITION: (Verified 6/16/23)

None received

ASSEMBLY FLOOR: 60-0, 3/30/23

AYES: Addis, Aguiar-Curry, Alanis, Arambula, Bains, Bennett, Berman, Boerner Horvath, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Megan Dahle, Davies, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Gipson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Lackey, Lee, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Jim Patterson, Joe Patterson, Petrie-Norris, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Alvarez, Bauer-Kahan, Bonta, Bryan, Calderon, Chen, Dixon, Gabriel, Garcia, Grayson, Irwin, Kalra, Mathis, McCarty, Ortega, Papan, Pellerin, Quirk-Silva, Soria, Ward

Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119

6/16/23 13:16:52

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Anna M. Caballero, Chair

2023 - 2024 Regular

Pajaro Valley Water Management Agency Act: board members

Expands the eligibility for the City of Watsonville’s appointed board member on the Pajaro Valley Water Management District by allowing them to have a “close and continuing” relationship with the agricultural community.

Background

The Santa Cruz-Pajaro Groundwater Basin. According to the State Water Resources Control Board, groundwater constitutes about 40% of the state’s total water supply annually and over 60% of the state’s water supply during a drought. The long-term overdraft of groundwater can lead to depleted groundwater supplies, physical infrastructure damage from land subsidence, and water quality degradation from saltwater intrusion.

Concerned about groundwater management in California, the Legislature enacted SB 1505 (Nejedly, 1978) to “identify the State’s ground water basins” and “investigate patterns” of groundwater usage. In response, the Department of Water Resources issued Bulletin 118-80 in 1980. The Bulletin identified 11 groundwater basins at risk of ‘a critical condition of overdraft’ where a “continuation of present water management practices [in those basins] would probably result in significant adverse overdraft-related…impacts,’ based on their physical geography, hydrology, and political boundaries.

The Bulletin identified the Santa Cruz-Pajaro Groundwater Basin as one of these 11 at-risk basins. They identified the basin using physical geography and hydrology while ignoring political boundaries due to local objections. This resulted in a basin that overlapped four different jurisdictions – Santa Cruz, Monterey, and San Benito counties, along with the City of Watsonville – and there was not a single entity responsible for managing the basin.

The Pajaro Valley Water Management Agency. To address the challenge of basin management, the Legislature created the Pajaro Valley Water Management Agency (PVWMA) to manage the basin’s groundwater (SB 2037, Mello, 1984). The PVWMA’s boundaries closely mirror the boundaries of the Santa Cruz-Pajaro Groundwater Basin identified in the Bulletin, and voters in the area approved a ballot measure to establish the agency in 1984. The uncodified statutes governing the agency have remained mostly unchanged since then (Statutes of 1984, Chapter 257).

PVWMA has broad authority to develop and implement a groundwater basin management plan. The agency can limit activities like the extraction of groundwater and the construction of wells. It also may store, recapture, distribute, and sell ‘supplemental water’ in the basin. Today, the agency operates water pipelines to supplement the water that farmers receive from wells and prevent groundwater overdraft. To fund these efforts, the agency may fix charges upon land within its jurisdiction, create penalties for unpaid charges, and levy charges on the extraction of groundwater.

A seven-member board of directors governs the agency. Four members of the board are elected from four separate geographical divisions of the agency, and the Boards of Supervisors for Monterey and Santa Cruz Counties, and the City of Watsonville each appoint one board member. For the appointed board members, the Santa Cruz and Monterey County Farm Bureaus must submit a list of three to five people to each respective appointing local government, from which the agency selects its member. Appointees must live within the boundaries of the appointing agency, and agree to serve two-year terms. Appointed members of the board must also derive at least 51% of their net income from the production of agricultural products. A quorum of the board—defined as a majority of members—must be present in order for meetings to take place and to take action.

The City of Watsonville. Watsonville is a city of about 51,525 people, located in Santa Cruz County. Major industries include manufacturing, retail, food processing, and agriculture. In 1990, about five years after the PVWMA was established, there were about 24,800 total farm industry workers who made up about 18% of the workforce. In 2022, there were only 7,000 total farm industry workers who made up about 5% of the workforce, a significant decline.

According to the author’s office, Rosemarie Imazio was the City of Watsonville’s appointee to the PV Water Board from 1998 until November 30, 2019. After her retirement, the City was unable to find a new appointee until it appointed Abel Sanchez in July 2021. From November 2019 to July 2021, the Board reports that it struggled, but was ultimately able to obtain, a quorum at all of its meetings. Though Abel Sanchez is still the appointee from the City of Watsonville today, the author wants to make it easier for the City of Watsonville to appoint a representative to the PVWMA in the future so that it can regularly establish a quorum.

Proposed Law

Assembly Bill 588 removes the requirement for the member of the PVWMA board from Watsonville to derive at least 51% of their net income from the production of agricultural products. Instead, the bill requires Watsonville’s appointee to have a primary income that involves, or, if the appointee is retired, did involve a close and continuing relationship with the Pajaro Valley agricultural industry.

State Revenue Impact

No fiscal impact.

Comments

1. Purpose of the bill. According to the author, “The PVWMA has made every effort, yet still struggled, to keep the City of Watsonville’s appointed seat on the board filled. Despite substantial outreach in-person, via phone, and online, the City of Watsonville’s appointed seat recently suffered a vacancy for two and a half years following the retirement of the previously serving City of Watsonville appointee after twenty years of continuous service.

Historically, farmers and ranchers have served most frequently in the role of appointed board members. However, over the years, fewer farmers and ranchers have continued to reside in Watsonville proper. Instead, they largely live outside the city limits. The board positions are time-consuming (on average, approximately four hours minimum per month) and do not pay well (generally, a $100 monthly stipend).

The approximately 60,000 residents of the City of Watsonville lose their appointed representation on the board unless this seat remains filled on a regular basis. As California and the Central Coast region grapple with ongoing water challenges, including a critically overdrafted groundwater basin, these residents depend on PVWMA for the long-term reliability of their water supply; they deserve fair representation on the PVWMA board as the agency makes decisions affecting the long-term future of the region’s water systems.”

2. A close and continuing relationship. While the percentage of an appointee’s net income from the production of agricultural products is an objective measure to determine eligibility, the term “close and continuing relationship” is not a term typically used in codified California law to describe a person’s relationship with an industry as a qualification requirement for membership on a public agency board. According to the author, the term came about through meetings of an ad hoc committee of the Pajaro Valley Water Management Board, which included three of its directors, who determined that the language strikes the right balance between agricultural-based representation and broad enough eligibility for Watsonville’s appointee. The author’s office listed several types of people not qualified under the 51% requirement who they believe would be covered under the close and continuing relationship requirement:

• A farmer who has other sources of income, making their income from agricultural products possibly less than 51% of their net income.
• A food processing company worker whose job is to certify organically-produced crops.
• A teacher in the Agriculture Academy at Watsonville High School.
• A supplier of seeds, starter plants, or irrigation equipment for local growers.
• An individual who works with local growers to help modernize growing techniques and irrigation practice.

Does AB 588’s new requirement for Watsonville’s appointee strike the right balance between ensuring agricultural representation and broadening the eligibility requirements to ensure Watsonville can fill its seat on the board?

Assembly Actions

Assembly Local Government Committee: 7-0
Assembly Floor: 60-0

Support and Opposition

(6/9/23)

Support:
Pajaro Valley Water Management Agency (Sponsor)
California Special Districts Association
City of Watsonville

Opposition: None received.

-- END --

Date of Hearing: March 22, 2023

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 588 (

Author:Robert Rivas) – As Introduced Ver:February 9, 2023

SUBJECT: Pajaro Valley Water Management Agency Act: board members.

SUMMARY: Requires the City of Watsonville appointee to the Pajaro Valley Water Management Agency (PVWMA) to have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the Pajaro Valley agricultural industry instead of deriving at least 51% of their net income from the production of agricultural products.

EXISTING LAW:

1. Establishes PVWMA, and prescribes its boundaries, organization, operations, management, and other powers and duties. (Water C.App § 124-1 to 124-1108)
2. Provides findings and declarations that the management of the water resources within the PVWMA for agricultural, municipal, industrial, and other beneficial uses is in the public interest and that the creation of a water agency is for the common benefit of all water users within the agency. (Water C.App § 124-101)
3. Requires that PVWMA shall be governed by the board of directors which consists of seven members. Each member of the board shall be a voter of and a resident within PVWMA. Four members shall be elected and three appointed. (Water C.App § 124-402)
4. Specifies that the appointed members of the board shall reside within the jurisdiction of the appointing power, shall derive at least 51% of their net income from the production of agricultural products, and shall be appointed by the following agencies: one member each by the Board Supervisors of Monterey County, the Board of Supervisors of Santa Cruz County, and the City of Watsonville. The appointments may be made from lists of not less than three nor more than five persons submitted to the appointing power for each vacancy by the Santa Cruz and Monterey County Farm Bureaus. (Water C.App § 124-402)
5. Requires that the term of office of each elected board member be four years and the term of office for an appointed board member to be two years. (Water C.App § 124-404)

FISCAL EFFECT: None.

COMMENTS:

1. PVWMA. Created by the Legislature in 1984 [AB 2037 (Mello), Chapter 257, Statutes of 1984], and approved by the voters, PVWMA is a water management district formed to manage existing and supplemental water supplies in order to prevent further increase in, and to accomplish continuing reduction of, long-term overdraft. PVWMA also works to provide and ensure sufficient water supplies for present and future anticipated needs within its boundaries, generally the greater coastal Pajaro Valley.

PVMWA’s board currently consists of seven members, four elected and three appointed. The counties of Monterey and Santa Cruz and the City of Watsonville appoint one board member each. Each appointed board member has terms of two years and must meet certain criteria, including:

• 1. Each appointed member shall reside within the jurisdiction of the appointing power.
     
  2. Each appointed member shall derive at least 51% of their net income from the production of agricultural products, as certified by affidavit.

1. Bill Summary and Author’s Statement. This bill requires the City of Watsonville appointee to the PVWMA to have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the Pajaro Valley agricultural industry instead of deriving at least 51% of their net income from the production of agricultural products. This bill is sponsored by PVWMA.

According to the author, “For a number of years, the PVWMA has made every effort, yet still struggled, to fill enough of its appointed seats to establish a quorum for its meetings. A quorum typically requires four out of a full seven-person board. When one seat remains vacant, four people are still required to attend out of the six members. In large part, this problem stems from an inability to fill the City of Watsonville’s appointed seat. Despite substantial outreach in-person, via phone, and online, the City of Watsonville’s appointed seat recently suffered a vacancy for two and a half years following the retirement of the previously serving City of Watsonville appointee after twenty years of continuous service.

“Historically, farmers and ranchers have served most frequently in the role of appointed board members. However, over the years, fewer farmers and ranchers have continued to reside in Watsonville proper. Instead, they largely live outside the city limits. The board positions are time-consuming (on average, approximately four hours minimum per month) and do not pay well (generally, a $100 monthly stipend).

“The approximately 60,000 residents of the City of Watsonville lose their appointed representation on the board unless this seat remains filled on a regular basis. As California and the Central Coast region grapple with ongoing water challenges, including a critically overdrafted groundwater basin, these residents depend on PVWMA for the long-term reliability of their water supply; they deserve fair representation on the PVWMA board as the agency makes decisions affecting the long-term future of the region’s water systems.”

1. Arguments in Support. According to PVWMA, “AB 588 provides a solution to our problem. AB 588 requires that the PV Water board member appointed by the City of Watsonville have a primary income that involves or, if the appointee is retired, did involve, a close and continuing relationship with the agricultural industry in the Pajaro Valley (Watsonville region), as opposed to requiring that a prescribed percentage of their income come from agriculture. This change in the law allows the City of Watsonville to keep its appointed seat on the PV Water board filled more consistently, while maintaining the requirements for residency and close ties to the agricultural sector that defines the Pajaro Valley.”
2. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Pajaro Valley Water Management Agency [SPONSOR]

Opposition

None on file

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