On June 16, the Bear Valley Community Services District (CSD) Board of Directors met to further address a potential conflict of interest with the Bear Valley Springs Association (BVSA), which could require changes to how amenities operate.

WHY THIS IS HAPPENING

In early 2026, concerns were raised that the CSD‘s relationship with the BVSA may be in violation of California Government Code Section 1090, which prohibits public officials from having a financial interest in contracts that are made by the agencies they serve.

The CSD currently has a contract in place with the BVSA. The lease agreement, formed in 2007, made them responsible for operating amenities in Bear Valley Springs, including the golf course, equestrian center, lakes, swimming pool, and more.

However, under BVSA rules, not all residents have equal access to amenities. For example, renters are not eligible to use 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 have been raised about whether this could be considered a financial interest under California conflict-of-interest laws. The District has requested guidance from the Fair Political Practices Commission (FPPC) regarding this issue.

POTENTIAL CONSEQUENCES

If the FPPC opinion is that the CSD is violating state law, then the District would be open to significant legal liability unless changes were made to current operations.

Failure to address the violation could lead to significant penalties for the CSD, the Board of Directors, and individual staff members, including civil and criminal penalties.

The FPPC has not issued an opinion at this time, and it is unknown when their opinion will be received. The FPPC may ultimately determine that no conflict of interest exists, and no changes will need to be made. However, in the interest of being prepared for a worst-case scenario and to prevent major interruptions to amenities, the CSD is taking steps to be ready for all potential outcomes.

WHAT HAPPENS NEXT

The CSD is exploring several potential options to resolve the Conflict of Interest, including hiring third-party vendors to operate amenities.

These potential options will continue to be discussed at Board of Directors meetings, which the public is encouraged to attend.

Based on legal guidance, the CSD currently cannot negotiate with or ask the BVSA to make any changes to their rules until the conflict of interest question is resolved.

No decisions have been made at this time. This is a complex legal situation, and many aspects, including whether any changes need to be made in the first place, are out of the CSD’s control. At this point, the District is evaluating and preparing for all potential outcomes, including the possibility that the FPPC determines that a conflict of interest exists and changes must be made immediately. Again, it is unknown if those changes will be required, but the CSD is taking steps to prepare.

We appreciate the community’s patience and understanding as we work to resolve this situation.