City property: sale of water utility property.
The legislation reshapes the existing framework governing the sale of water utilities by not only extending the existing authorization but also modifying key requirements such as the boundaries for eligible public water systems and the definition of interested persons. Ratepayers outside the city limits would now be considered 'interested persons,' broadening the scope of community engagement in the decision-making process surrounding utility sales. The bill mandates that if the sale of a public utility is proposed, it cannot be sold below its fair market value and requires a supermajority vote from the city’s governing body.
Assembly Bill 850, also known as AB 850, addresses the sale of public utility water service properties by the Cities of El Monte, Montebello, and Willows. The bill extends the previous authorization for these cities to consolidate their water systems with other public water systems for an additional two years, until January 1, 2024. It provides the framework under which these cities can determine that it is uneconomical and not in the public interest to maintain their public water utilities, allowing them to sell such utilities under specific conditions and requirements.
The sentiment surrounding AB 850 appears to be generally favorable among proponents who argue that it empowers local governments to manage their utilities more effectively and respond to economic challenges. However, concerns may arise among skeptics who worry about the implications for ratepayers outside the city limits and the adequacy of the protections put in place to ensure fair treatment and accountability to the community. Overall, the discussion likely highlights a careful balance between local governance and citizen engagement in utility management.
Notable points of contention include the provision that explicitly allows for ratepayers outside city limits to be considered in the decision-making process. Some stakeholders may view this as an encroachment on local governance, while others might see it as a necessary measure for transparency and accountability. The requirement for independent studies on the maintenance needs of water infrastructure prior to any sale could also be contested, reflecting differing opinions on how best to ensure public safety and utility reliability while promoting operational efficiencies.