| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Assembly January | |
| 1 | + | Amended IN Assembly January 03, 2018 Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 272Introduced by Assembly Member GipsonFebruary 01, 2017An act to add Chapter 5.1 (commencing with Section 12893.50) to Part 6 of Division 6 of the Water Code, add Section 37420.5 to the Government Code, and to amend Section 10061 of the Public Utilities Code, relating to water.LEGISLATIVE COUNSEL'S DIGESTAB 272, as amended, Gipson. Southeast Los Angeles County Drinking Water Relief Act. Water utility service: sale of water utility property by a city.Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, the sale or transfer is approved by a majority of all voters voting on this issue in an election, and that the acquiring entity disclose specified information before the election.This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility and if certain requirements are met.The Davis-Grunsky Act provides for state financial assistance, in the form of grants and loans, to public agencies for, among other things, distribution of water for domestic purposes. The act authorizes the Department of Water Resources, in making loans or grants pursuant to the act, to impose terms and conditions that are designed to protect the states investment and that are necessary to carry out the purposes of the act. The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, as specified, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water, as specified. To provide affordable, safe drinking water to disadvantaged communities, the act, if the state board finds that consolidation or extension of service is either not appropriate or not technically or economically feasible, authorizes the state board to contract with an administrator to provide administrative and managerial services to a designated public water system to assist that public water system with the provision of an adequate and affordable supply of safe drinking water.This bill, the Southeast Los Angeles County Drinking Water Relief Act, would authorize the department and the state board to condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project. The bill would authorize the department and state board to provide, upon appropriation, financial assistance to a public water agency for these purposes.The bill would specifically authorize an urban water supplier in southeast Los Angeles County to consult with the state board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system under the California Safe Drinking Water Act is appropriate.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base.(c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable.(d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term.(e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure.SEC. 2. Section 37420.5 is added to the Government Code, to read:37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue.SEC. 3. Section 10061 of the Public Utilities Code is amended to read:10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated.SECTION 1.This act shall be known and may be cited as the Southeast Los Angeles County Drinking Water Relief Act. SEC. 2.The Legislature finds and declares all of the following:(a)The State of California has approximately 7,500 public water systems that serve drinking water to Californians.(b)Communities in southeast Los Angeles County (the Southeast) receive their drinking water from a multitude of water suppliers, including small public water agencies, municipalities, investor-owned utilities, and mutual water companies. Some cities, such as the cities of Compton and Maywood, have several water suppliers. Compton, with a population of 97,877 people, has five water suppliers and the City of Maywood, with a population of 27,748 people has three mutual water companies.(c)A 2015 study from the Los Angeles campus of the University of California reported that, presently, nearly 100 public and private entities are involved in the management of potable water supplies in the [Los Angeles] region - a system born out of a history of fragmented water rights and governance regimes following rapid urban expansion. The report noted the diversity of small water retailers in the Southeast and problems with mutual water companies. It concluded that such a fragmented system can lead to uneven water provision, as each of the nearly 100 retailers set their own prices and drought-related policies.(d)In order to receive certain state or federal funding for water infrastructure, water suppliers are required to show that they have the technical, managerial, and financial capacity to operate and maintain the infrastructure. The Southeast has several water suppliers that are unable to show that they have such capacity, including some that now seek state funding to fix their water systems.SEC. 3.Chapter 5.1 (commencing with Section 12893.50) is added to Part 6 of Division 6 of the Water Code, to read:5.1.Southeast Los Angeles County Drinking Water Relief Act12893.50.(a)The department and the State Water Resources Control Board may condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project.(b)The department and State Water Resources Control Board may provide, upon appropriation, financial assistance to a public water agency for purposes of subdivision (a).12893.51.An urban water supplier in southeast Los Angeles County may consult with the State Water Resources Control Board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system, as described in Sections 116682 and 116686 of the Health and Safety Code, is appropriate.SEC. 4.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of southeast Los Angeles County including the multitude of water suppliers that provide drinking water to the area and need to complete water infrastructure projects. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly January 03, 2018 Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 272Introduced by Assembly Member GipsonFebruary 01, 2017An act to add Chapter 5.1 (commencing with Section 12893.50) to Part 6 of Division 6 of the Water Code, add Section 37420.5 to the Government Code, and to amend Section 10061 of the Public Utilities Code, relating to water.LEGISLATIVE COUNSEL'S DIGESTAB 272, as amended, Gipson. Southeast Los Angeles County Drinking Water Relief Act. Water utility service: sale of water utility property by a city.Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, the sale or transfer is approved by a majority of all voters voting on this issue in an election, and that the acquiring entity disclose specified information before the election.This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility and if certain requirements are met.The Davis-Grunsky Act provides for state financial assistance, in the form of grants and loans, to public agencies for, among other things, distribution of water for domestic purposes. The act authorizes the Department of Water Resources, in making loans or grants pursuant to the act, to impose terms and conditions that are designed to protect the states investment and that are necessary to carry out the purposes of the act. The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, as specified, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water, as specified. To provide affordable, safe drinking water to disadvantaged communities, the act, if the state board finds that consolidation or extension of service is either not appropriate or not technically or economically feasible, authorizes the state board to contract with an administrator to provide administrative and managerial services to a designated public water system to assist that public water system with the provision of an adequate and affordable supply of safe drinking water.This bill, the Southeast Los Angeles County Drinking Water Relief Act, would authorize the department and the state board to condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project. The bill would authorize the department and state board to provide, upon appropriation, financial assistance to a public water agency for these purposes.The bill would specifically authorize an urban water supplier in southeast Los Angeles County to consult with the state board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system under the California Safe Drinking Water Act is appropriate.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly January 03, 2018 Amended IN Assembly March 21, 2017 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly January 10, 2018 | |
| 8 | 7 | Amended IN Assembly January 03, 2018 | |
| 9 | 8 | Amended IN Assembly March 21, 2017 | |
| 10 | 9 | ||
| 11 | 10 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 12 | 11 | ||
| 13 | 12 | Assembly Bill No. 272 | |
| 14 | 13 | ||
| 15 | 14 | Introduced by Assembly Member GipsonFebruary 01, 2017 | |
| 16 | 15 | ||
| 17 | 16 | Introduced by Assembly Member Gipson | |
| 18 | 17 | February 01, 2017 | |
| 19 | 18 | ||
| 20 | - | An act to add Section 37420.5 to the Government Code, and to amend Section 10061 of the Public Utilities Code, relating to water. | |
| 19 | + | An act to add Chapter 5.1 (commencing with Section 12893.50) to Part 6 of Division 6 of the Water Code, add Section 37420.5 to the Government Code, and to amend Section 10061 of the Public Utilities Code, relating to water. | |
| 21 | 20 | ||
| 22 | 21 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 22 | ||
| 24 | 23 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 24 | ||
| 26 | - | AB 272, as amended, Gipson. Water utility service: sale of water utility property by a city. | |
| 25 | + | AB 272, as amended, Gipson. Southeast Los Angeles County Drinking Water Relief Act. Water utility service: sale of water utility property by a city. | |
| 27 | 26 | ||
| 28 | - | Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, the sale or transfer is approved by a majority of all voters voting on this issue in an election, and that the acquiring entity disclose specified information before the election.This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the | |
| 27 | + | Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, the sale or transfer is approved by a majority of all voters voting on this issue in an election, and that the acquiring entity disclose specified information before the election.This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility and if certain requirements are met.The Davis-Grunsky Act provides for state financial assistance, in the form of grants and loans, to public agencies for, among other things, distribution of water for domestic purposes. The act authorizes the Department of Water Resources, in making loans or grants pursuant to the act, to impose terms and conditions that are designed to protect the states investment and that are necessary to carry out the purposes of the act. The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, as specified, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water, as specified. To provide affordable, safe drinking water to disadvantaged communities, the act, if the state board finds that consolidation or extension of service is either not appropriate or not technically or economically feasible, authorizes the state board to contract with an administrator to provide administrative and managerial services to a designated public water system to assist that public water system with the provision of an adequate and affordable supply of safe drinking water.This bill, the Southeast Los Angeles County Drinking Water Relief Act, would authorize the department and the state board to condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project. The bill would authorize the department and state board to provide, upon appropriation, financial assistance to a public water agency for these purposes.The bill would specifically authorize an urban water supplier in southeast Los Angeles County to consult with the state board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system under the California Safe Drinking Water Act is appropriate.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles. | |
| 29 | 28 | ||
| 30 | 29 | Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, the sale or transfer is approved by a majority of all voters voting on this issue in an election, and that the acquiring entity disclose specified information before the election. | |
| 31 | 30 | ||
| 32 | - | This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the potentially subsumed water system is wholly within the boundaries of the city, if the city determines that it is uneconomical and not in the public interest to own and operate the public utility and if certain requirements are met. | |
| 31 | + | This bill would permit a city that owns and operates a public utility for furnishing water service to sell the public utility for the purpose of consolidating its public water system with another public water system pursuant to the procedures that are generally applicable to the sale of real property by a city, only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility and if certain requirements are met. | |
| 32 | + | ||
| 33 | + | The Davis-Grunsky Act provides for state financial assistance, in the form of grants and loans, to public agencies for, among other things, distribution of water for domestic purposes. The act authorizes the Department of Water Resources, in making loans or grants pursuant to the act, to impose terms and conditions that are designed to protect the states investment and that are necessary to carry out the purposes of the act. | |
| 34 | + | ||
| 35 | + | ||
| 36 | + | ||
| 37 | + | The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, as specified, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water, as specified. To provide affordable, safe drinking water to disadvantaged communities, the act, if the state board finds that consolidation or extension of service is either not appropriate or not technically or economically feasible, authorizes the state board to contract with an administrator to provide administrative and managerial services to a designated public water system to assist that public water system with the provision of an adequate and affordable supply of safe drinking water. | |
| 38 | + | ||
| 39 | + | ||
| 40 | + | ||
| 41 | + | This bill, the Southeast Los Angeles County Drinking Water Relief Act, would authorize the department and the state board to condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project. The bill would authorize the department and state board to provide, upon appropriation, financial assistance to a public water agency for these purposes. | |
| 42 | + | ||
| 43 | + | ||
| 44 | + | ||
| 45 | + | The bill would specifically authorize an urban water supplier in southeast Los Angeles County to consult with the state board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system under the California Safe Drinking Water Act is appropriate. | |
| 46 | + | ||
| 47 | + | ||
| 48 | + | ||
| 49 | + | This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles. | |
| 50 | + | ||
| 51 | + | ||
| 33 | 52 | ||
| 34 | 53 | ## Digest Key | |
| 35 | 54 | ||
| 36 | 55 | ## Bill Text | |
| 37 | 56 | ||
| 38 | - | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base.(c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable.(d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term.(e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure.SEC. 2. Section 37420.5 is added to the Government Code, to read:37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the | |
| 57 | + | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base.(c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable.(d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term.(e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure.SEC. 2. Section 37420.5 is added to the Government Code, to read:37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue.SEC. 3. Section 10061 of the Public Utilities Code is amended to read:10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated.SECTION 1.This act shall be known and may be cited as the Southeast Los Angeles County Drinking Water Relief Act. SEC. 2.The Legislature finds and declares all of the following:(a)The State of California has approximately 7,500 public water systems that serve drinking water to Californians.(b)Communities in southeast Los Angeles County (the Southeast) receive their drinking water from a multitude of water suppliers, including small public water agencies, municipalities, investor-owned utilities, and mutual water companies. Some cities, such as the cities of Compton and Maywood, have several water suppliers. Compton, with a population of 97,877 people, has five water suppliers and the City of Maywood, with a population of 27,748 people has three mutual water companies.(c)A 2015 study from the Los Angeles campus of the University of California reported that, presently, nearly 100 public and private entities are involved in the management of potable water supplies in the [Los Angeles] region - a system born out of a history of fragmented water rights and governance regimes following rapid urban expansion. The report noted the diversity of small water retailers in the Southeast and problems with mutual water companies. It concluded that such a fragmented system can lead to uneven water provision, as each of the nearly 100 retailers set their own prices and drought-related policies.(d)In order to receive certain state or federal funding for water infrastructure, water suppliers are required to show that they have the technical, managerial, and financial capacity to operate and maintain the infrastructure. The Southeast has several water suppliers that are unable to show that they have such capacity, including some that now seek state funding to fix their water systems.SEC. 3.Chapter 5.1 (commencing with Section 12893.50) is added to Part 6 of Division 6 of the Water Code, to read:5.1.Southeast Los Angeles County Drinking Water Relief Act12893.50.(a)The department and the State Water Resources Control Board may condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project.(b)The department and State Water Resources Control Board may provide, upon appropriation, financial assistance to a public water agency for purposes of subdivision (a).12893.51.An urban water supplier in southeast Los Angeles County may consult with the State Water Resources Control Board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system, as described in Sections 116682 and 116686 of the Health and Safety Code, is appropriate.SEC. 4.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of southeast Los Angeles County including the multitude of water suppliers that provide drinking water to the area and need to complete water infrastructure projects. | |
| 39 | 58 | ||
| 40 | 59 | The people of the State of California do enact as follows: | |
| 41 | 60 | ||
| 42 | 61 | ## The people of the State of California do enact as follows: | |
| 43 | 62 | ||
| 44 | 63 | SECTION 1. The Legislature finds and declares all of the following:(a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base.(c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable.(d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term.(e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure. | |
| 45 | 64 | ||
| 46 | 65 | SECTION 1. The Legislature finds and declares all of the following:(a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base.(c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable.(d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term.(e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure. | |
| 47 | 66 | ||
| 48 | 67 | SECTION 1. The Legislature finds and declares all of the following: | |
| 49 | 68 | ||
| 50 | 69 | ### SECTION 1. | |
| 51 | 70 | ||
| 52 | 71 | (a) It is the policy of the State of California that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. | |
| 53 | 72 | ||
| 54 | 73 | (b) Many communities in the State of California receive their drinking water from a multitude of public water systems, including municipalities, public utility corporations, state special districts, small public water systems, and mutual water companies. Communities with fragmented public water systems typically have vastly different costs of service, aging and failing infrastructure, and conflicting drought mitigation and conservation policies. Small fragmented water service providers are often unable to achieve efficiencies and economies of scale that are available to consolidated water systems with a broader customer base. | |
| 55 | 74 | ||
| 56 | 75 | (c) Small water systems often lack adequate resources or expertise to operate in compliance with increasingly stringent and complex safe drinking water quality standards, which are required to protect public health and safety, and are unable to bear the cost of replacing and upgrading aging and failing water service infrastructure. As a result, many small water suppliers are too small to be viable, raising questions as to whether they will be able to provide safe and reliable water service to the public now or in the future. Many small water suppliers are in such precarious financial condition that basic infrastructure maintenance is infeasible, and in many cases, maintenance and replacement of failing infrastructure is deferred. These water suppliers also have such small customer bases that additional investment is not affordable. | |
| 57 | 76 | ||
| 58 | 77 | (d) Drinking water supply facilities require ongoing routine maintenance and repair to ensure that the public receives safe and reliable water service at affordable rates. When routine repairs to water supply infrastructure components are deferred, facilities fail, necessitating costly emergency repairs when water mains break or pumping and water treatment equipment fails. Thus, while deferring routine maintenance might lower costs in the short term, doing so results in substantial increases in costs to small water suppliers and their customers in the long term. | |
| 59 | 78 | ||
| 60 | 79 | (e) Therefore, it is the policy of the State of California to consolidate small public water systems when (1) the water supplier cannot feasibly provide or ensure access to affordable water services to a community, (2) multiple suppliers exist in a single community, and (3) water systems have deferred maintenance on their aging or failing water supply infrastructure. | |
| 61 | 80 | ||
| 62 | - | SEC. 2. Section 37420.5 is added to the Government Code, to read:37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only | |
| 81 | + | SEC. 2. Section 37420.5 is added to the Government Code, to read:37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue. | |
| 63 | 82 | ||
| 64 | 83 | SEC. 2. Section 37420.5 is added to the Government Code, to read: | |
| 65 | 84 | ||
| 66 | 85 | ### SEC. 2. | |
| 67 | 86 | ||
| 68 | - | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only | |
| 87 | + | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue. | |
| 69 | 88 | ||
| 70 | - | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only | |
| 89 | + | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue. | |
| 71 | 90 | ||
| 72 | - | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only | |
| 91 | + | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:(a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body.(c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale.(d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility.(e) The receiving water systems service area borders the service area of the subsumed water system.(f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code.(g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system.(h) Consolidation of the water systems is technically and economically feasible.(i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue. | |
| 73 | 92 | ||
| 74 | 93 | ||
| 75 | 94 | ||
| 76 | - | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the | |
| 95 | + | 37420.5. Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, a city owning and operating a public utility for furnishing water service may sell the public utility pursuant to this article for the purpose of consolidating its public water system with another public water system only if the city determines that it is uneconomical and not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements: | |
| 77 | 96 | ||
| 78 | 97 | (a) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil Procedure. | |
| 79 | 98 | ||
| 80 | 99 | (b) The legislative body of the city shall not sell the water utility property without a majority vote of the citys legislative body. | |
| 81 | 100 | ||
| 82 | 101 | (c) There are at least two water suppliers that provide drinking water to residents in the city prior to the sale. | |
| 83 | 102 | ||
| 84 | - | (d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility. | |
| 103 | + | (d) The city has deferred necessary maintenance for aging or failing water infrastructure of public water systems operated by the public utility. | |
| 85 | 104 | ||
| 86 | 105 | (e) The receiving water systems service area borders the service area of the subsumed water system. | |
| 87 | 106 | ||
| 88 | 107 | (f) The subsumed water system is a small community water system, as defined in Section 116275 of the Health and Safety Code. | |
| 89 | 108 | ||
| 90 | - | (g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system. | |
| 109 | + | (g) The subsumed water systems customers shall not pay water rates different from customers already receiving service from the receiving water system. | |
| 91 | 110 | ||
| 92 | 111 | (h) Consolidation of the water systems is technically and economically feasible. | |
| 93 | 112 | ||
| 94 | - | (i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption | |
| 113 | + | (i) The legislative body of the city shall not sell its public utility for furnishing water service unless it considers oral and written protests at its second regularly scheduled meeting following the adoption of a resolution pursuant to Section 37422. Notwithstanding Section 37425, if the legislative body of the city finds that protests have been filed by at least 25 percent of the citys registered voters, the legislative body of the city shall call an election pursuant to Section 37427. If an election is called pursuant to this subdivision, the legislative body of the city shall not sell the public utility for furnishing water service unless the sale is approved by a majority of the voters voting on the issue. | |
| 95 | 114 | ||
| 96 | - | (j) The legislative body of the city has adopted a resolution, at a regularly scheduled meeting, that subdivisions (a) to (i), inclusive, have been met. | |
| 97 | - | ||
| 98 | - | SEC. 3. Section 10061 of the Public Utilities Code is amended to read:10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell sell, or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell sell, or transfer, for just compensation compensation, all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; entity, and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale sale, or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale sale, or transfer is made is hereby validated. | |
| 115 | + | SEC. 3. Section 10061 of the Public Utilities Code is amended to read:10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated. | |
| 99 | 116 | ||
| 100 | 117 | SEC. 3. Section 10061 of the Public Utilities Code is amended to read: | |
| 101 | 118 | ||
| 102 | 119 | ### SEC. 3. | |
| 103 | 120 | ||
| 104 | - | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell | |
| 121 | + | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated. | |
| 105 | 122 | ||
| 106 | - | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell | |
| 123 | + | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated. | |
| 107 | 124 | ||
| 108 | - | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell | |
| 125 | + | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county.(b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity.(c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows:(1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose.(2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof.(3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose.(4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following:(A) A summary of the price and terms of the proposed acquisition.(B) A comparison of the applicable water charges before and after the proposed acquisition.(C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition.(d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law.(e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals.(f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated. | |
| 109 | 126 | ||
| 110 | 127 | ||
| 111 | 128 | ||
| 112 | - | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell | |
| 129 | + | 10061. (a) Notwithstanding Article 1 (commencing with Section 10001) and this article, and except as provided in Section 37420.5 of the Government Code, a municipal corporation, by following the provisions of this section, may lease, sell or transfer all or part of a public utility owned and operated by it for furnishing water service. As used in this section, municipal corporation, means a city or a city and county. | |
| 113 | 130 | ||
| 114 | - | (b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell | |
| 131 | + | (b) Any municipal corporation owning and operating a public utility for furnishing water service, a part of which or all of which public utility is operated and used for furnishing water service outside the boundaries of the municipal corporation, may lease, sell or transfer, for just compensation all or any part of the portion of the public utility located outside the boundaries of the municipal corporation to any other municipal corporation, public agency or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation if, by resolution adopted by a majority of its legislative body, it has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants and if the acquiring entity by resolution adopted by a majority of the members of its legislative body or board of directors has concurred in the lease, sale, or transfer and the terms and conditions thereof and if the acquiring entity will be bound to render water service to the persons formerly served through the system being sold on terms and conditions which are just and reasonable and which do not unreasonably discriminate against the customers of the acquired entity. | |
| 115 | 132 | ||
| 116 | 133 | (c) Any municipal corporation owning and operating a public utility for furnishing water service may sell or transfer, for just compensation, all or any part of the public utility located inside its municipal boundaries to any other municipal corporation, public agency, or public utility water corporation upon the terms and conditions agreed upon by the selling municipal corporation, if the sale or transfer is approved as follows: | |
| 117 | 134 | ||
| 118 | - | (1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; | |
| 135 | + | (1) The municipal corporation, by resolution adopted by a majority of its legislative body, has determined that the public utility, or portion thereof, is not necessary for supplying water to its own inhabitants, or that its inhabitants will be provided with equal or better service by the acquiring entity on terms that are just and reasonable and do not discriminate against the customers of the acquired entity; and orders the issue submitted to the qualified voters of the municipality at a special or general election held for that purpose. | |
| 119 | 136 | ||
| 120 | 137 | (2) The acquiring entity by resolution adopted by a majority of its legislative body or board of directors has concurred in the sale or transfer and in the terms and conditions thereof. | |
| 121 | 138 | ||
| 122 | 139 | (3) The sale or transfer is approved by a majority of all voters voting on the issue in the election held for that purpose. | |
| 123 | 140 | ||
| 124 | 141 | (4) The municipal corporation, public agency, or public utility water corporation proposing to acquire a municipal corporation public utility for furnishing water service shall disclose to the customers of the public water system to be acquired, not less than 30 days prior to the date of election for formal approval of the acquisition, a written statement which includes all of the following: | |
| 125 | 142 | ||
| 126 | 143 | (A) A summary of the price and terms of the proposed acquisition. | |
| 127 | 144 | ||
| 128 | 145 | (B) A comparison of the applicable water charges before and after the proposed acquisition. | |
| 129 | 146 | ||
| 130 | 147 | (C) The estimated savings to be achieved or additional costs expected to result, or both, from the proposed acquisition. | |
| 131 | 148 | ||
| 132 | 149 | (d) Subject to subdivision (e), a municipal corporation may lease a public utility furnishing water service by a resolution adopted by a majority of its legislative body and without lease term or other restrictions stated in any other provision of law. | |
| 133 | 150 | ||
| 134 | 151 | (e) A municipal corporation acting pursuant to subdivision (c) shall specify the manner of soliciting and filing, and the method of evaluating, proposals for the acquisition of the public utility. Upon receipt and staff evaluation of a proposal or proposals the municipal corporation, if it determines that the proposal or proposals are responsive, shall schedule a public hearing, and notice thereof shall be published in accordance with Section 6066 of the Government Code. At the hearing, the municipal corporation shall examine proposals received and staff recommendations, and without lease term or other restrictions, may lease, sell, or transfer, for just compensation, the public utility to the entity that the municipal corporation finds best qualified to continue to provide equal or better service to the customers of the system. If the resolution proposes a sale, the resolution shall place the question on the ballot at the next regularly scheduled election or at a special election called for that purpose. The municipal corporation may, in its sole discretion, reject all proposals. | |
| 135 | 152 | ||
| 136 | - | (f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale sale, or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale sale, or transfer is made is hereby validated. | |
| 153 | + | (f) Any agreement entered into before September 17, 1965, between municipal corporations for the lease, sale or transfer of all or any part of a public utility owned and operated by one of the municipal corporations and furnishing water service to the inhabitants of the municipal corporation to which the lease, sale or transfer is made is hereby validated. | |
| 154 | + | ||
| 155 | + | ||
| 156 | + | ||
| 157 | + | This act shall be known and may be cited as the Southeast Los Angeles County Drinking Water Relief Act. | |
| 158 | + | ||
| 159 | + | ||
| 160 | + | ||
| 161 | + | ||
| 162 | + | ||
| 163 | + | The Legislature finds and declares all of the following: | |
| 164 | + | ||
| 165 | + | ||
| 166 | + | ||
| 167 | + | (a)The State of California has approximately 7,500 public water systems that serve drinking water to Californians. | |
| 168 | + | ||
| 169 | + | ||
| 170 | + | ||
| 171 | + | (b)Communities in southeast Los Angeles County (the Southeast) receive their drinking water from a multitude of water suppliers, including small public water agencies, municipalities, investor-owned utilities, and mutual water companies. Some cities, such as the cities of Compton and Maywood, have several water suppliers. Compton, with a population of 97,877 people, has five water suppliers and the City of Maywood, with a population of 27,748 people has three mutual water companies. | |
| 172 | + | ||
| 173 | + | ||
| 174 | + | ||
| 175 | + | (c)A 2015 study from the Los Angeles campus of the University of California reported that, presently, nearly 100 public and private entities are involved in the management of potable water supplies in the [Los Angeles] region - a system born out of a history of fragmented water rights and governance regimes following rapid urban expansion. The report noted the diversity of small water retailers in the Southeast and problems with mutual water companies. It concluded that such a fragmented system can lead to uneven water provision, as each of the nearly 100 retailers set their own prices and drought-related policies. | |
| 176 | + | ||
| 177 | + | ||
| 178 | + | ||
| 179 | + | (d)In order to receive certain state or federal funding for water infrastructure, water suppliers are required to show that they have the technical, managerial, and financial capacity to operate and maintain the infrastructure. The Southeast has several water suppliers that are unable to show that they have such capacity, including some that now seek state funding to fix their water systems. | |
| 180 | + | ||
| 181 | + | ||
| 182 | + | ||
| 183 | + | ||
| 184 | + | ||
| 185 | + | ||
| 186 | + | ||
| 187 | + | ||
| 188 | + | ||
| 189 | + | (a)The department and the State Water Resources Control Board may condition the awardance of financial assistance to an urban water supplier in southeast Los Angeles County that does not have adequate technical, managerial, and financial capacity for a water infrastructure project on the participation of a public water agency that has sufficient technical, managerial, and financial capacity to complete and operate the project. | |
| 190 | + | ||
| 191 | + | ||
| 192 | + | ||
| 193 | + | (b)The department and State Water Resources Control Board may provide, upon appropriation, financial assistance to a public water agency for purposes of subdivision (a). | |
| 194 | + | ||
| 195 | + | ||
| 196 | + | ||
| 197 | + | ||
| 198 | + | ||
| 199 | + | An urban water supplier in southeast Los Angeles County may consult with the State Water Resources Control Board to determine whether consolidation with a receiving water system, extension of service, or provision of administrative or managerial services as a designated public water system, as described in Sections 116682 and 116686 of the Health and Safety Code, is appropriate. | |
| 200 | + | ||
| 201 | + | ||
| 202 | + | ||
| 203 | + | ||
| 204 | + | ||
| 205 | + | The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of southeast Los Angeles County including the multitude of water suppliers that provide drinking water to the area and need to complete water infrastructure projects. |