BILL NUMBER: AB 2701 CHAPTERED
BILL TEXT
CHAPTER 360
FILED WITH SECRETARY OF STATE SEPTEMBER 20, 2006
APPROVED BY GOVERNOR SEPTEMBER 20, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
PASSED THE SENATE AUGUST 22, 2006
AMENDED IN SENATE AUGUST 17, 2006
AMENDED IN SENATE AUGUST 16, 2006
AMENDED IN SENATE AUGUST 7, 2006
AMENDED IN SENATE JUNE 21, 2006
AMENDED IN SENATE MAY 26, 2006
AMENDED IN ASSEMBLY APRIL 24, 2006
INTRODUCED BY Assembly Member Blakeslee
(Principal coauthor: Senator Maldonado)
FEBRUARY 24, 2006
An act to amend Section 61105 of, and to add Section 25825.5 to,
the Government Code, relating to San Luis Obispo County.
LEGISLATIVE COUNSEL'S DIGEST
AB 2701, Blakeslee San Luis Obispo County.
(1) Existing law authorizes the establishment of community
services districts for the provision of various services to the
geographic area within a district, including the collection,
treatment, or disposal of sewage, wastewater, recycled water, and
stormwater.
This bill would authorize the County of San Luis Obispo to
undertake any efforts necessary to construct and operate a wastewater
collection and treatment system to meet the needs of the Los Osos
Community Services District, as specified, and to impose and collect
user fees and other charges to cover the reasonable costs of any
wastewater collection or treatment services provided pursuant to
these provisions.
The bill would also require the Board of Supervisors of San Luis
Obispo County to prepare and submit a proposed assessment to pay for
the facilities, and, if certain requirements are met, to decide
whether to proceed with construction of the project. The district
would retain the powers to provide all other services to a designated
zone. After a minimum of 3 years and when the district and the
county mutually apply for, and are granted, a modification to the
waste discharge permit issued by the Regional Water Quality Control
Board, responsibilities would be transferred back to the district.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25825.5 is added to the Government Code, to
read:
25825.5. (a) The Legislature finds and declares all of the
following:
(1) There are ongoing discharges to the Los Osos Discharge
Prohibition Zone established in the Water Quality Control Plan for
the Central Coast Basin.
(2) The agency responsible for eliminating these discharges is the
Los Osos Community Services District, which is a relatively new
agency, formed in 1998.
(3) The Central Coast Regional Water Quality Control Board has
imposed substantial fines on the Los Osos Community Services District
for failing to make adequate progress toward eliminating these
discharges.
(4) The Los Osos Community Services District has a relatively
small staff that has no experience of successfully designing and
constructing facilities of the size and type needed to eliminate
these discharges.
(5) The County of San Luis Obispo has a larger staff that has
experience in successfully designing large public works projects.
(6) There is an urgent need to protect the public health and
safety by eliminating these discharges and the most feasible
alternative is best accomplished by a temporary realignment of
certain wastewater collection and treatment powers between the Los
Osos Community Services District and the County of San Luis Obispo.
(7) It is the intent of the Legislature in enacting this section
and amending Section 61105 to authorize the County of San Luis Obispo
to design, construct, and operate a wastewater collection and
treatment project that will eliminate these discharges, particularly
in the prohibition zone, to avoid a wasteful duplication of effort
and funds, and to temporarily prohibit the Los Osos Community
Services District from exercising those powers.
(b) As used in this section, the following definitions apply:
(1) "Board" means the Board of Supervisors of the County of San
Luis Obispo.
(2) "County" means the County of San Luis Obispo.
(3) "District" means the Los Osos Community Services District,
formed pursuant to the Community Services District Law, Division 3
(commencing with Section 61000) of Title 3, located in San Luis
Obispo County.
(4) "Prohibition zone" means that territory within the Baywood
Park-Los Osos area of the county that is subject to the wastewater
discharge prohibition imposed by the Central Coast Regional Water
Quality Control Board pursuant to Resolution 83-13.
(c) The county may undertake any efforts necessary to construct
and operate a community wastewater collection and treatment system to
meet the wastewater collection and treatment needs within the
district. These efforts may include programs and projects for
recharging aquifers, preventing saltwater intrusion, and managing
groundwater resources to the extent that they are related to the
construction and operation of the community wastewater collection and
treatment system. These efforts shall include any services that the
county deems necessary, including, but not be limited to, any
planning, design, engineering, financial analysis, pursuit of grants
to mitigate affordability issues, administrative support, project
management, and environmental review and compliance services. The
county shall not exercise any powers authorized by this section
outside the district.
(d) Nothing in this section shall affect the district's power to
do any of the following:
(1) Operate wastewater collection and treatment facilities within
the district that the district was operating on January 1, 2006.
(2) Provide facilities and services, other than wastewater
collection and treatment.
(e) To finance the construction and operation of a wastewater
collection and treatment system, the county may levy benefit
assessments consistent with the requirements of Article XIII D of the
California Constitution, pursuant to any of the following:
(1) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
(2) The Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500) of the Streets and Highways Code).
(3) The Municipal Improvement Act of 1913 (Division 12 (commencing
with Section 10000) of the Streets and Highways Code).
(f) The county may charge standby charges for sewer services,
consistent with the requirements of Article XIII D of the California
Constitution, pursuant to the Uniform Standby Charge Procedures Act
(Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2
of Title 5).
(g) The county may impose and collect user fees and charges and
any other sources of revenue permitted by law sufficient to cover the
reasonable costs of any wastewater collection or treatment services
provided pursuant to this section.
(h) Promptly upon the adoption of a resolution by the board
requesting this action, the board of directors of the district shall
convey to the county any requested retained rights-of-way, licenses,
funds, and permits previously acquired by the district in connection
with construction projects for which the district awarded contracts
in 2005. The county shall use those fee interests, rights-of-way,
licenses, and funds for the purpose of furthering the construction
and operation of a wastewater collection and treatment system
pursuant to this section.
(i) After the approval of a benefit assessment, the board shall
complete a due diligence review before deciding to proceed with the
construction and operation of a wastewater collection and treatment
system. The board shall consider any relevant factors, including, but
not limited to, the prompt availability of reasonable and sufficient
financing, the status of enforcement actions, the successful
development of reasonable project technology and location options,
the availability of any necessary permits and other approvals, and
the absence of other significant impediments. At the completion of
this due diligence review, the board shall adopt a resolution
declaring its intention to proceed or not proceed with the
construction and operation of the wastewater collection and treatment
system.
(j) Collection of assessments may not commence until the adoption
of the resolution to proceed pursuant to subdivision (i).
(k) The county shall have no power or responsibility to construct
and operate a wastewater collection and treatment system pursuant to
this section and the district shall resume that power and
responsibility when any of the following occurs:
(1) If the board adopts a resolution not to hold a benefit
assessment election pursuant to subdivision (e).
(2) If there is a majority protest to a benefit assessment
proposed by the county, on the date of the resolution adopted by the
board determining that the majority protest exists.
(3) If there is not a majority protest, but the board adopts a
resolution, pursuant to subdivision (i), which declares that the
county will no longer exercise its powers pursuant to this section,
on the date specified in the board's resolution.
(4) If the county constructs and operates a wastewater collection
and treatment system pursuant to this section, not less than three
years after the operation of the system commences, the board and the
board of directors of the district shall mutually apply to the
Central Coast Regional Water Quality Control Board for a modification
of the waste discharge permit, requesting permission to transfer of
the responsibility to operate the wastewater collection and treatment
system from the county to the district. Consistent with that
modification, the board shall adopt a resolution that specifies the
date on which the county will no longer exercise its powers pursuant
to this section.
(l) When the power and responsibility to construct and operate a
wastewater collection and treatment system transfers from the county
to the district pursuant to subdivision (k), the county shall do all
of the following:
(1) Promptly convey to the district any remaining retained fee
interests in any real property, rights-of-way, licenses, other
interests in real property, funds, and other personal property that
the county previously acquired pursuant to subdivision (h).
(2) Promptly convey to the district the wastewater collection and
treatment system that the county constructed pursuant to this
section.
(3) Continue to collect any necessary assessments and use them to
repay any indebtedness incurred by the county to finance the
construction of the wastewater collection and treatment system
pursuant to this section.
(4) The county shall cease collecting any benefit assessments
after repayment of any indebtedness incurred by the county to finance
the construction of the wastewater collection and treatment system.
(m) Nothing in this section shall be construed as imposing upon
the county any liability for any district decisions or actions, or
failures to act, or imposing upon the county any liability for any
decisions or actions, or failures to act, by any district officers,
employees, or agents. In addition, nothing in this section shall be
construed as imposing upon the county any liability for any prior or
subsequent district liabilities, whether liquidated or contingent, or
any prior or subsequent liabilities of district officers, employees,
or agents, whether liquidated or contingent.
SEC. 2. Section 61105 of the Government Code is amended to read:
61105. (a) The Legislature finds and declares that the unique
circumstances that exist in certain communities justify the enactment
of special statutes for specific districts. In enacting this
section, the Legislature intends to provide specific districts with
special statutory powers to provide special services and facilities
that are not available to other districts.
(b) (1) The Los Osos Community Services District may borrow money
from public or private lenders and loan those funds to property
owners within the district to pay for the costs of decommissioning
septic systems and constructing lateral connections on private
property to facilitate the connection of those properties to the
district's wastewater treatment system. The district shall lend money
for this purpose at rates not to exceed its cost of borrowing and
the district's cost of making the loans. The district may require
that the borrower pay the district's reasonable attorney's fees and
administrative costs in the event that the district is required to
take legal action to enforce the provisions of the contract or note
securing the loan. The district may elect to have the debt payments
or any delinquency collected on the tax roll pursuant to Section
61116. To secure the loan as a lien on real property, the district
shall follow the procedures for the creation of special tax liens in
Section 53328.3 of this code and Section 3114.5 of the Streets and
Highways Code.
(2) (A) Except as otherwise provided in this paragraph, on and
after January 1, 2007, the Los Osos Community Services District shall
not undertake any efforts to design, construct, and operate a
community wastewater collection and treatment system within, or for
the benefit of, the district. The district shall resume those powers
on the date specified in any resolution adopted pursuant to
subdivision (j) of Section 25825.5.
(B) Nothing in this paragraph shall affect the district's power to
do any of the following:
(i) Operate wastewater collection and treatment facilities within
the district that the district was operating on January 1, 2006.
(ii) Provide facilities and services in the territory that is
within the district, but outside the prohibition zone.
(iii) Provide facilities and services, other than wastewater
collection and treatment, within the prohibition zone.
(C) Promptly upon the adoption of a resolution by the Board of
Supervisors of the County of San Luis Obispo requesting this action
pursuant to subdivision (h) of Section 25825.5, the district shall
convey to the County of San Luis Obispo all retained rights-of-way,
licenses, other interests in real property, funds, and other personal
property previously acquired by the district in connection with
construction projects for which the district awarded contracts in
2005.
(c) The Heritage Ranch Community Services District may acquire,
construct, improve, maintain, and operate petroleum storage tanks and
related facilities for its own use, and sell those petroleum
products to the district's property owners, residents, and visitors.
The authority granted by this subdivision shall expire when a private
person or entity is ready, willing, and able to acquire, construct,
improve, maintain, and operate petroleum storage tanks and related
facilities, and sell those petroleum products to the district and its
property owners, residents, and visitors. At that time, the
district shall either (1) diligently transfer its title, ownership,
maintenance, control, and operation of those petroleum tanks and
related facilities at a fair market value to that private person or
entity, or (2) lease the operation of those petroleum tanks and
related facilities at a fair market value to that private person or
entity.
(d) The Wallace Community Services District may acquire, own,
maintain, control, or operate the underground gas distribution
pipeline system located and to be located within Wallace Lake Estates
for the purpose of allowing a privately owned provider of liquefied
petroleum gas to use the underground gas distribution system pursuant
to a mutual agreement between the private provider and the district
or the district's predecessor in interest. The district shall require
and receive payment from the private provider for the use of that
system. The authority granted by this subdivision shall expire when
the Pacific Gas and Electric Company is ready, willing, and able to
provide natural gas service to the residents of Wallace Lake Estates.
At that time, the district shall diligently transfer its title,
ownership, maintenance, control, and operation of the system to the
Pacific Gas and Electric Company.
(e) The Cameron Park Community Services District, the El Dorado
Hills Community Services District, the Golden Hills Community
Services District, the Mountain House Community Services District,
the Rancho Murieta Community Services District, the Salton Community
Services District, the Stallion Springs Community Services District,
and the Tenaja Meadows Community Services District, which enforced
covenants, conditions, and restrictions prior to January 1, 2006,
pursuant to the former Section 61601.7 and former Section 61601.10,
may continue to exercise the powers set forth in the former Section
61601.7 and the former Section 61601.10.
(f) The Bear Valley Community Services District, the Bell Canyon
Community Services District, the Cameron Estates Community Services
District, the Lake Sherwood Community Services District, the Saddle
Creek Community Services District, and the Wallace Community Services
District may, for roads owned by the district and that are not
formally dedicated to or kept open for use by the public for the
purpose of vehicular travel, by ordinance, limit access to and the
use of those roads to the landowners and residents of that district.
(g) Notwithstanding any other provision of law, the transfer of
the assets of the Stonehouse Mutual Water Company, including its
lands, easements, rights, and obligations to act as sole agent of the
stockholders in exercising the riparian rights of the stockholders,
and rights relating to the ownership, operation, and maintenance of
those facilities serving the customers of the company, to the Hidden
Valley Community Services District is not a transfer subject to taxes
imposed by Part 11 (commencing with Section 23001) of Division 2 of
the Revenue and Taxation Code.
(h) The El Dorado Hills Community Services District and the Rancho
Murieta Community Services District may each acquire, construct,
improve, maintain, and operate television receiving, translating, or
distribution facilities, provide television and television-related
services to the district and its residents, or authorize the
construction and operation of a cable television system to serve the
district and its residents by franchise or license. In authorizing
the construction and operation of a cable television system by
franchise or license, the district shall have the same powers as a
city or a county under Section 53066.
(i) The Mountain House Community Services District may provide
facilities for television and telecommunications systems, including
the installation of wires, cables, conduits, fiber optic lines,
terminal panels, service space, and appurtenances required to provide
television, telecommunication, and data transfer services to the
district and its residents, and provide facilities for a cable
television system, including the installation of wires, cables,
conduits, and appurtenances to service the district and its residents
by franchise or license, except that the district may not provide or
install any facilities pursuant to this subdivision unless one or
more cable franchises or licenses have been awarded under Section
53066 and the franchised or licensed cable television and
telecommunications services providers are permitted equal access to
the utility trenches, conduits, service spaces, easements, utility
poles, and rights-of-way in the district necessary to construct their
facilities concurrently with the construction of the district's
facilities. The district shall not have the authority to operate
television, cable, or telecommunications systems. The district shall
have the same powers as a city or county under Section 53066 in
granting a franchise or license for the operation of a cable
television system.
SEC. 3. Due to the unique circumstances concerning the wastewater
treatment needs in the Los Osos Community Services District, as set
forth in Section 1 of this act, it is necessary that, and the
Legislature finds and declares that, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution.