The Bear Valley Community Services District has received guidance from the California Fair Political Practices Commission (FPPC) regarding a potential conflict of interest between the Community Services District (CSD) and the Bear Valley Springs Association (BVSA) under California Government Code Section 1090.

In short: On October 2, 2026, the FPPC provided written confirmation to the CSD, that Section 1090 “does not prohibit the District from approving the lease agreement with the Association”. The FPPC’s letter goes on to say that the rule of necessity allows the lease agreement between the BVSA and CSD, and that it qualifies as an essential duty of the District that only the District is legally capable of performing.

WHY THE FPPC OPINION WAS REQUESTED

In early 2026, concerns were raised about whether the CSD’s relationship with the BVSA could create a conflict of interest under California Government Code Section 1090, which generally prohibits public officials from having a financial interest in contracts made by the public agencies they serve.

The CSD currently has a lease agreement with the BVSA. Originally established in 2007, the agreement provides for the operation of amenities in Bear Valley Springs, including the golf course, equestrian center, lakes, swimming pool, and other facilities.

However, under BVSA rules, not all residents have equal access to these amenities. For example, renters generally are not eligible to use the amenities unless the property owner relinquishes their own access.

Because members of the CSD Board of Directors may have access to BVSA amenities that are not available to all residents, questions were raised about whether that access could constitute a financial interest under California conflict-of-interest laws.

To provide legal clarity, the District requested guidance from the FPPC regarding whether Section 1090 would prevent the CSD from entering into or approving the lease agreement with the BVSA.

WHAT HAPPENS NEXT

Based on the FPPC’s guidance, the CSD will not be required to make broad changes to the current amenities agreement to comply with Section 1090.

The CSD and BVSA may also resume negotiations regarding the lease agreement, which had been placed on hold while the District awaited the FPPC’s response.

The CSD Board of Directors will formally receive and discuss the FPPC letter at its Thursday, October 8, Regular Meeting.