BILL ANALYSIS Ó
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1125|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1125
Author: Achadjian (R)
Amended: 4/28/11 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 6/22/11
AYES: Wolk, DeSaulnier, Hernandez, Kehoe, La Malfa, Liu
NO VOTE RECORDED: Huff, Fuller, Hancock
ASSEMBLY FLOOR : 74-0, 5/19/11 - See last page for vote
SUBJECT : Public health: County of San Luis Obispo and
Los Osos
Community Services District
SOURCE : San Luis Obispo County Board of Supervisors
DIGEST : This bill authorizes San Luis Obispo County and
the Los Osos Community Services District to develop
discounted rate programs for low-income households.
ANALYSIS : Approximately 5,000 septic tanks on small lots
in Los Osos, an unincorporated community in San Luis Obispo
County, have polluted the groundwater near Morro Bay. As a
result, the Central Coast Regional Water Quality Control
Board ordered a building moratorium and called for the
construction of a community sewer system. In 1998, local
voters formed the Los Osos Community Services District,
which provides water, drainage, fire protection, parks,
street lights, and solid waste services. The District is
CONTINUED
AB 1125
Page
2
an independent special district, governed by an elected,
five-member board of directors.
In 2005, the District signed contracts to build a sewer
system and a new wastewater treatment plant. After
controversies over the plant's location, local voters
recalled three of the District's board members in September
2005. The new board suspended the plant's construction,
desiring another location for the sewer plant. After the
suspended project drew litigation with the plant's
contractors and the State Water Resources Control Board, as
well as fines from the Central Coast Regional Water Quality
Control Board, San Luis Obispo County officials sought
special legislation that would not make them responsible
for the District's liabilities. In response, the County
suspended the District's powers and gained the authority to
plan, build, and operate the wastewater collection and
treatment system ÝAB 2701 (Blakeslee), Chapter 360,
Statutes of 2006]. The County may levy benefit assessments
to pay for constructing and operating the wastewater
system, and charge sewer standby charges. The District can
resume its operational duties if:
There is a majority protest to the proposed benefit
assessment,
There is no majority protest, but the County decides to
no longer use these powers, or
The County constructs the wastewater system and operates
it for at least three years, and the County and the
District mutually apply to the Central Coast Regional
Water Quality Control Board for permission to transfer
the system from the County to the District.
This bill authorizes the County of San Luis Obispo to
develop a program to offset assessments, standby charges,
or user fees and charges for very low- or low-income
households. The program would be funded by, but not
limited to, grants, principal forgiveness, and non-county
funds from low-interest loans, approved by the State Water
Resources Control Board and the United States Department of
Agriculture. This bill prohibits the County from
subsidizing the lower rates by including in an assessment
CONTINUED
AB 1125
Page
3
or charge, an amount to cover the costs to the county.
After the Los Osos Community Services District resumes its
powers, this bill authorizes the District to continue the
program to offset assessments or charges for very low- or
low-income households with funding sources, including
grants. This bill prohibits the District from including an
amount to cover the cost to the County in carrying out the
cost of offsetting the program in an assessment or charge.
If the County has not implemented the offset program, this
bill allows the District to adopt a program to offset
assessments or charges for very low or low-income
households.
Comments
Antiquated or damaged septic systems can leak sewage into
the ground, harming the environment and threatening public
health. Faulty septic systems can contaminate surface
waters and groundwater with pathogens and nitrates. Yet,
the improvements required to correct these problems are
costly. This is what happened in Los Osos, and in 2006,
the Legislature authorized San Luis Obispo County to
construct a sewer plant to address public health and
environmental contamination concerns. Five years later,
the County returns to the Legislature, as promised, to
propose a program to help low-income households meet sewer
rate payments and assessments. The County recognizes that
financial hardships affect low-income residents' ability to
pay for costly sewer later connections, sewer assessments,
or other standby charges.
Related Legislation . AB 741 (Huffman, 2011), allows local
sewer service providers, at a property owner's request, to
construct sewer improvements on private property and charge
the property owner for the costs. The estimated cost of
converting from a septic system to a sewer connection
ranges from $2,000 to $14,000. Because commercial loans
for sewer and septic improvements can be expensive, local
officials want to accelerate upgrades to sewer and septic
systems by loaning money to private property owners at
below-market interest rates. AB 741 gives local officials
another tool to help property owners pay for sewer
CONTINUED
AB 1125
Page
4
upgrades.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/23/11)
San Luis Obispo County Board of Supervisors (source)
Area Agency on Aging Advisory Council
ASSEMBLY FLOOR : 74-0, 5/19/11
AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani,
Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso,
Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
Pérez, Portantino, Silva, Skinner, Smyth, Solorio,
Swanson, Torres, Valadao, Wagner, Wieckowski, Williams,
Yamada, John A. Pérez
NO VOTE RECORDED: Alejo, Donnelly, Beth Gaines, Gorell,
Ma, Mansoor
AGB:mw 6/23/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED