BILL ANALYSIS Ó
AB 741
Page 1
Date of Hearing: April 27, 2011
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 741 (Huffman) - As Amended: April 11, 2011
SUBJECT : Onsite wastewater disposal.
SUMMARY : Authorizes a local agency that is authorized to
acquire, construct, maintain and operate sanitary sewers and
sewerage systems to use to, at a property owners request,
construct all necessary plumbing to connect his or her property
to the adjoining public sewer system, the cost of which
constitutes a lien on the property. Specifically, this bill :
1)Authorizes a county, city and county, city, sanitary district,
county sanitation district, county service area, sewer
maintenance district, and other public corporations and
districts that are authorized to acquire, construct, maintain
and operate sanitary sewers and sewerage systems to, at a
property owners request, construct all necessary plumbing to
connect his or her property to the adjoining public sewer
system, the cost of which constitutes a lien on the property.
2)Specifies that the process listed above in 1) may be used for
either of the following purposes, whether or not an order or
other action has been issued or taken for an abatement of
contamination created by sewage disposal:
a) Converting properties from onsite septic systems and
connecting them to a sewer system. The conversion
improvements and costs may include, but are not limited to,
pipes, pumps and other equipment, septic system
abandonment, and associated sewage treatment capacity; or,
b) Replacing or repairing existing sewer laterals
connecting pipes to a sewer system. The cost of the
lateral replacement or repair shall constitute the cost of
an improvement for connection to a sewer system.
3)Specifies that the authority granted by this measure shall be
in addition to, shall not be in derogation of, and shall not
affect, any authority granted by other law relating to
recovering the cost incurred by an entity for connecting
properties to the public sewer system, or the entity's
AB 741
Page 2
exercise of powers pursuant to any other law.
4)States that this section shall be deemed to provide a complete
and supplemental method for exercising the powers authorized
by this section, and shall be deemed supplemental to the
powers conferred by other applicable laws.
EXISTING LAW :
1)Specifies that any owner who has his property included within
an assessment district for the construction of a main
trunkline or collector sewer lines, may request the governing
board to construct all necessary plumbing to connect his
property to the adjoining street public sewer system.
2)Requires the person employed by the governing board to do the
work to have a lien upon the property, for work done and
materials furnished at the request of the property owner,
3)Authorizes the governing board of an agency to pay all, or any
part, of the cost or price of the connection to the person or
persons who furnished labor, materials, or equipment and, to
the extent that the governing board pays the cost or price of
the connection; at which time the lien would be transferred to
the governing board.
4)Authorizes, alternatively to the procedures described above,
the governing body of the public agency performing the work of
connection to the public sewer to, by the power of ordinance
approved by a two-thirds vote of the members of the
legislative body, do the following:
a) Fix the cost of improvement for connection to the
sanitation or sewerage facilities,
b) Fix the times at which such costs shall become due;
c) Provide for the payment of the costs prior to the
construction and connection or in installments over a
period, not to exceed 15 years;
d) Provide a rate of interest, not to exceed 6% per year,
to be charged on the unpaid balance of the costs; and,
e) Provide that the amount of the costs and the interest
AB 741
Page 3
shall constitute a lien against the respective lots or
parcels upon which the facilities are constructed.
5)Specifies that a governing body can alternatively, by
ordinance approved by a two-thirds vote of the members of the
legislative body, do the following:
a) Fix fees or charges for the privilege of connecting to
its sanitation or sewerage facilities and improvements
constructed by the entity pursuant to specified provisions;
b) Fix the time or times at which the fees or charges shall
become due;
c) Provide for the payment of the fees or charges prior to
connection or in installments over a period of not to
exceed 30 years;
d) Provide the rate of interest, not to exceed 12% per
year, to be charged on the unpaid balance of the fees or
charges; and,
e) Provide that the amount of the fees or charges and the
interest shall constitute a lien against the respective
lots or parcels of land to which the facilities are
connected at the time and in a specified manner.
FISCAL EFFECT : None
COMMENTS :
1)According to the U.S. Environmental Protection Agency, septic
systems that are properly planned, designed, sited, installed,
operated and maintained can provide excellent wastewater
treatment. However, systems that are sited in densities that
exceed the treatment capacity of regional soils and systems
that are poorly designed, installed, operated or maintained
can cause problems. The most serious documented problems
involve contamination of surface waters and ground water with
disease-causing pathogens and nitrates. Other problems
include excessive nitrogen discharges to sensitive coastal
AB 741
Page 4
waters and phosphorus pollution of inland surface waters,
which increases algal growth and lowers dissolved oxygen
levels. Contamination of important shellfish beds and
swimming beaches by pathogens is also a concern in some
coastal regions.
2)According to the author's office, converting from a septic to
sewer system protects public and environmental health by
ensuring that wastewater is collected and conveyed to
treatment and disposal facilities with minimal risk and
increases water quality benefits. But the cost to convert a
septic system to a sewer system can be expensive. There can
be multiple major costs in converting from a septic system to
sewer service, including: the public sewer infrastructure,
side sewer construction, septic system abandonment, and
connection fees. The co-sponsor, Irvine Ranch Water District
(IRWD), states that the costs to customers of converting their
septic systems to a community sewer system, or for replacing
aging sewer laterals, are often prohibitive, costing $2,000 to
$14,000 for septic conversions and $3,000 to $12,000 for
laterals. If pumps or pump replacements are needed, this can
be an additional $10,000.
3)AB 741 builds on existing law by authorizing public waste
water agencies to offer voluntary private liens to private
property owners to finance lateral replacements and
conversions from septic to sewer systems. According to IRWD,
this change in law would help private property owners finance
the costs of converting from a septic system to a community
sewer system and the replacement of sewer laterals. IRWD
believes that by making these improvements feasible AB 741
would protect water quality, the environment and public health
from contamination caused by leaking septic tanks, eroding
pipes and other aging sew infrastructure.
4)Support arguments: Supporters argue that AB 741 provides
property owners with options on financing the needed sewer and
lateral conversions, which will encourage property owners to
convert from septic systems to community sewer systems and to
replace aging and damaged sewer laterals. Moreover,
supporters believe that the bill protects water quality, the
environment, and public health from contamination caused by
these aging infrastructures.
Opposition arguments: Opposition could argue that AB 741 does
AB 741
Page 5
not provide any protections to the local agencies when
entering into an agreement with a property owner to do these
costly upgrades. The Committee may wish to consider if it
might be prudent to require a local agency establishing these
liens to verify the credit worthiness of the property owner
prior to entering into an agreement.
REGISTERED SUPPORT / OPPOSITION :
Support
Irvine Ranch Water District ÝCO-SPONSOR]
North Bay Watershed Association ÝSPONSOR]
American Fence Association, CA Chapter
Association of CA Water Agencies
CA Association of Realtors
CA Association of Sanitation Agencies
CA Fence Contractors
CA Municipal Utility Association
CA Special Districts Association
CA State Association of Counties
City of San Diego
Cucamonga Valley Water District
Desert Water Agency
East Bay Municipal Utility District
Eastern Municipal Water District
El Dorado Irrigation District
Engineering Contractors Association
Marin Builders' Association
Municipal Water District of Orange County
North Bay Watershed Association
Novato Sanitary District
Santa Margarita Water District
Sonoma County Water Agency
Three Valleys Municipal Water District
Opposition
None on file
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958
AB 741
Page 6