March 28, 2006
SUBJECT: Respond to Request of Santa Clara Valley Water District and Santa Clara County for Support of California State Assembly Bill 2435 (the Santa Clara County Flood Protection and Clean Water Accountability Act) to Amend the Enabling Act of the Santa Clara Valley Water District, Chapter 1405 of the Statutes of 1951.
REPORT IN BRIEF
State Assembly Member Coto has introduced legislation on behalf of Santa Clara Valley Water District (SCVWD) and Santa Clara County (County) to sever the oversight responsibility of the County currently included in the District’s enabling legislation. Such oversight is not necessary, and is not required for any other special purpose district in the State of California. The District has requested a letter of support from the City of Sunnyvale. This matter is not specifically considered in Council policies or action plans and therefore must be brought to Council for consideration. There is no apparent reason to object to the relationship change between the District and the County. In fact, such a change should provide for more efficiency in local and regional government. Therefore the preparation and submission of a letter of support is recommended.
BACKGROUND
Santa Clara Valley Water District was created in its current form in 1968 by the merger of the Santa Clara County Flood Control and Water District (Flood Control District) and the Santa Clara Valley Water Conservation District (Conservation District). These agencies came from different backgrounds. The Flood Control District was a County agency, with a board appointed by the County. The Conservation District was created by the voters in 1929, and its board was elected. When they merged, the SCVWD was made generally independent, but with the requirement that their budget be reviewed and approved by the County each year. Also, the Board of Directors includes 5 members elected from 5 separate areas of the County, and 2 others appointed by the County Board of Supervisors. These features were uniquely set up as part of the merging process. This was not done as a result of any specific state guidelines, but due to specific concerns of the Board of Supervisors at that time (1968).
SCVWD operates, for the most part, as an independent agency. Due to the requirements of the enabling legislation, their budget is submitted each year to the County for review and approval. This is not required for special districts in other counties in California. Recently the County hired an outside accounting firm to conduct an audit of the SCVWD. The results of the audit made it clear that the SCVWD does not operate similar to other branches of County government. In response, SCVWD made the point that they are not a branch of the County, but are a separate agency responsible to the people of the County that elect their board members. Also, SCVWD pointed out that the auditor did not properly consider the unique needs of SCVWD, and the active approach the Board of Directors takes to responding to the short and long term water needs of the community.
The City is a customer of the SCVWD by virtue of purchasing over 40% of our water from them each year, in the form of treated surface water from the Rinconada Treatment Plant, conveyed to us by their West Pipeline. In addition, the SCVWD manages the ground water withdrawal from the aquifers underlying Santa Clara County. The City pays a pump tax for all water extracted from the aquifer, which is also a source of drinking water for the City. The City participates in the Water Commission (Council member Chu is the current representative), which is advisory to the SCVWD Board of Directors. Staff participates on the Water Retailers’ Committee, which keeps SCVWD and its water customers working cooperatively on, and knowledgeable about, appropriate water issues. As part of the function of SCVWD as a potable water provider, they also encourage and support conservation and water recycling efforts, including sponsorship of specific programs, and joint sponsorship of activities of individual cities and agencies.
The City also has several streams which are under management of the SCVWD: Stevens Creek, Sunnyvale West, Sunnyvale East and Calabasas Creek. The City has a representative who serves on the South Peninsula Flood Control and Watershed Advisory Committee, and the West Valley Flood Control and Watershed Advisory Committee (Council member Moylan is the current representative to both committees), both advisory to the Board of Directors.
EXISTING POLICY
No specific policy could be found, therefore prompting this report. However, Sunnyvale has previously supported efficiency in government, such as is being proposed by this legislation. Such a bill would appear to be consistent with the tenets of regional government that Sunnyvale supports.
DISCUSSION
The language in the 1968 enabling legislation that created the Santa Clara Valley Water District by the merger of the Santa Clara County Flood Control and Water District (Flood Control District) and the Santa Clara Valley Water Conservation District (Conservation District) has become dated. There may have been concerns in 1968 about the operation of the new, larger district created by the referenced merger. However, since that time the SCVWD has performed its identified functions as a separate agency, answerable to the electorate through election of directors, public meetings, public disclosure and freedom of information similar to other public entities. Both the County and the District acknowledge that there is no need for the County to review the SCVWD budget. Both agencies agree that this is a duplication of effort which can be costly, and exposes the County to liability in an area where they have no expertise or control. Changing the legislation to remove the involvement of the County in the dealings of the SCVWD clarifies the role of the SCVWD and removes the County from the water issues dealt with by the SCVWD.
The principles of the proposed legislation are consistent with governmental efficiency generally epitomized by the City of Sunnyvale. The affected agencies are in agreement over the legislation. A letter of support would be a proper and easy form of governmental cooperation, and indicate agreement with the principles of economy and efficiency in regional government.
FISCAL IMPACT
There is no fiscal impact on the City of Sunnyvale from this legislation.
Conclusion
The Santa Clara Valley Water District (SCVWD) has asked for support from the City of Sunnyvale for legislation (AB 2435) that will revise the enabling statute for SCVWD and remove requirements that Santa Clara County (County) review and approve the SCVWD budget. This legislation is also supported by the County. The change would eliminate the unique requirements that no other water or drainage district in the State is subject to, remove the two SCVWD director positions appointed by the County, eliminate duplication of effort created by the statute, and remove liability the County could have over matters for which they are not set up. SCVWD would continue to be responsible to the voters of the County, who will continue to elect the Board of Directors.
PUBLIC CONTACT
This matter was brought before the Council by representatives of the Santa Clara Valley Water District at the Council’s regular (public) meeting of March 7, 2006. Public contact for this report was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the Library and the City Clerk's Office.
ALTERNATIVES
1. Authorize the Mayor to sign a letter of support for AB 2435, the “Santa Clara County Flood Protection and Clean Water Accountability Act,” and have such support letter sent to the appropriate legislative contacts, Santa Clara Valley Water District Board of Directors, and Santa Clara County Board of Supervisors.
2. Do not authorize any written support for AB 2435.
3. Instruct staff to prepare a letter in opposition to AB 2435 and have said letter of opposition sent to the appropriate legislative contacts, Santa Clara Valley Water District Board of Directors, and Santa Clara County Board of Supervisors.
RECOMMENDATION
Staff recommends Alternative 1: Authorize the Mayor to sign a letter of support for AB 2435, the “Santa Clara County Flood Protection and Clean Water Accountability Act,” and have such support letter sent to the appropriate legislative contacts, Santa Clara Valley Water District Board of Directors, and Santa Clara County Board of Supervisors.
The principles of the proposed legislation are consistent with governmental efficiency generally epitomized by the City of Sunnyvale. The affected agencies are in agreement over the legislation.
Reviewed by:
Marvin A. Rose, Director, Department of Public Works
Prepared by: James Craig, Field Services Superintendent
Approved by:
Amy Chan
City Manager
Attachments
A. Letter to Mayor Swegles from Rick L. Callender, Government Affairs Manager for Santa Clara Valley Water District, requesting a letter of support for AB 2435 (Coto) the Santa Clara County Flood Protection and Clean Water Accountability Act. (.pdf)
B. Discussion paper from Santa Clara Valley Water District in support of the referenced legislation. (.pdf)
C. Draft support letter to Assemblyman Coto in support of AB 2435. (.pdf)