Amended in Senate June 9, 2014

Amended in Senate February 20, 2014

Amended in Assembly May 29, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 155

Introduced by Assembly Member Alejo

January 22, 2013

An act to add Section begin delete 87 end delete begin insert 11.1 end insert to the Monterey County Water Resources Agency Act (Chapter 1159 of the Statutes of 1990), relating to water begin insert , and declaring the urgency thereof, to take effect immediately end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 155, as amended, Alejo. Monterey County Water Resources Agency: begin delete Salinas River Management Program. end delete begin insert design-build. end insert

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Existing

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begin insert (1) end insert begin insert   end insert begin insert Existing end insert law, the Monterey County Water Resources Agency Act, establishes the Monterey County Water Resources Agency as a flood control and water agency within the County of Monterey.

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This bill would require the agency to establish a multiobjective, multibenefit consensus-based comprehensive Salinas River Management Program and would require the agency to establish a steering committee to develop the program. By requiring the agency to establish a new program, this bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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This bill would authorize the agency to award a design-build contract for the combined design and construction of a project to connect Lake San Antonio, located in the County of Monterey, and Lake Nacimiento, located in the County of San Luis Obispo, with an underground tunnel or pipeline for the purpose of maximizing water storage, supply, and groundwater recharge.

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(2) The bill would declare that, due to the unique circumstances of the agency, a general statute within the meaning of specified provisions of the California Constitution cannot be made applicable and a special statute is necessary.

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(3) This bill would declare that it is to take effect immediately as an urgency statute.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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(a) The Legislature finds and declares all of the
following:

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(1) The Salinas Valley contains some of the most fertile land
in, and is a leading provider of produce to, the world, and due to
the economic impact of its production it contributes to the general
economic well-being of the state.

end insert begin insert

(2) As of 2014, the state, including the County of Monterey, has
experienced extraordinary drought conditions, which threaten, in
part, the economic viability and agricultural production of the
valley.

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(3) In light of these extraordinary drought conditions, the
Governor, on January 17, 2014, declared a state of emergency.

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(4) The Monterey County Water Resources Agency (hereafter
the agency), established pursuant to Chapter 1159 of the Statutes
of 1990, owns and controls two reservoirs: Lake San Antonio,
located in the County of Monterey, and Lake Nacimiento, located
in the County of San Luis Obispo.

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(5) These lakes provide water storage for, and flood control
protection to, the Salinas Valley Groundwater basin downstream
of the lakes, and also improves water supply and groundwater
recharge in the basin, which contribute to the economic viability
and agricultural production of the valley.

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(6) The agency has previously undertaken projects to improve
water storage and groundwater recharge within the basin,
including the Salinas Valley Water Project, which, in part,
implemented modifications to the spillway in the dam at Lake
Nacimiento, and in the operation of the dams and spillways at the
lakes.

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(7) Despite these projects, the current drought conditions will
have long-term significant impacts on the agricultural production
in the valley, and additional appropriate projects are necessary
to ensure the continued economic viability and agricultural
production in the valley, especially in light of future conditions as
may be affected by global climate change.

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(8) The watershed of Lake Nacimiento generally experiences
more runoff from storms and thus provides more water for storage
than does the watershed of Lake San Antonio and, as a result,
water otherwise available for storage at Lake Nacimiento is lost
due to volumes exceeding its storage capacity.

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(9) The agency has proposed a project to connect Lake
Nacimiento and Lake San Antonio by an underground tunnel or
pipeline that would be constructed within a right-of-way or other
easement acquired by the agency for that purpose.

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(10) The project will maximize overall water storage at the lakes
by allowing the conveyance of water to Lake San Antonio for
storage that may otherwise overflow from Lake Nacimiento, thus
improving the benefits provided by the lakes and the Salinas Valley
Water Project to the basin and the valley, mitigating the impact
of the drought, and improving the economic viability of the valley
and its agricultural production, all benefitting the state.

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(11) Utilizing an alternative project delivery system, consisting
of a design-build contract, will provide benefits by shifting the
liability and risk for cost containment and project completion to
the design-build entity, and will provide for the more timely and
efficient project delivery in light of the current drought conditions
and the Governor’s emergency declaration.

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(12) The agency has requested the authority to utilize the
alternative project delivery system in conjunction with a project
labor agreement that meets the requirements of Chapter 2.8
(commencing with Section 2500) of Part 1 of Division 2 of the
Public Contract Code so as to complete the project in a more
timely and efficient manner without any disruptions.

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(b) It is the intent of the Legislature that the design-build process
set forth in Section 2 of this act may be used by the agency solely
for the purpose of the project, and not for other purposes.

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begin insert SEC. 2. end insert   

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begin insert Section 11.1 is added to the end insert begin insert Monterey County Water
Resources Agency Act end insert begin insert (Chapter 1159 of the Statutes of 1990), to
read: end insert

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begin insert 11.1. end insert   

(a) The following definitions apply to this section:

(1) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(2) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.

(3) “Lakes” means collectively Lake San Antonio, located in
the County of Monterey, and Lake Nacimiento, located in the
County of San Luis Obispo, both owned and operated by the
Monterey County Water Resources Agency.

(4) “Project” means a project to connect the lakes with an
underground tunnel or pipeline for the purpose of maximizing
water storage, supply, and groundwater recharge at the lakes, and
within the Salinas Valley Groundwater Basin and the Salinas
Valley proper, including all necessary subsurface and surface
improvements.

(5) “Project labor agreement” means an agreement that meets
the requirements of Chapter 2.8 (commencing with Section 2500)
of Part 1 of Division 2 of the Public Contract Code.

(b) (1) Notwithstanding any other law, the agency may award
a design-build contract for the combined design and construction
of the project.

(2) If the agency does award a design-build contract as
authorized under paragraph (1), it shall do the following:

(A) Establish a procedure for the selection of the design-build
entity for the project.

(B) Award the contract based upon a written proposal that is
determined to be the most advantageous to the agency.

(C) Ensure that the design-build entity selected for the project
enters into a project labor agreement that will bind all of the
contractors performing work on the project.

(c) The agency may utilize a design-build contract solely for
the project and for no other purpose.

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begin insert SEC. 3. end insert   

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The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances of the Monterey
County Water Resources Agency.

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begin insert SEC. 4. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

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In order to mitigate the conditions within the County of Monterey
caused by the current drought and as set forth by the Governor in
the related emergency declaration, it is necessary that this act take
effect immediately.

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SECTION 1.  

Section 87 is added to the Monterey County
Water Resources Agency Act (Chapter 1159 of the Statutes of
1990), to read:

87.  

(a) The Legislature hereby finds and declares all of the
following:

(1) The Salinas River watershed consists of 4,200 square miles
of land. Much of the watershed is prime agricultural and rangeland,
providing a strong base for the region’s economy. Much of the
land within the watershed provides housing, employment,
recreation, and education opportunities for central coast residents
and visitors from throughout the state, nation, and world.

(2) The Salinas River watershed includes portions of the
Counties of Monterey and San Luis Obispo and each of those
counties is concerned about the ability of its communities to sustain
a high quality of life with regard to agriculture, housing, commerce,
education, and environmental protection.

(3) The Salinas River watershed includes numerous streams,
creeks, rivers, wetlands, and estuaries that form the natural drainage
system that directs rainwater to the ocean. The Salinas River
watershed also includes numerous manmade water collection,
drainage, and water disposal projects and systems that also direct
rainwater to the ocean.

(4) The Salinas River watershed includes millions of square
feet of impervious surfaces, such as roads, parking lots, homes,
commercial and agricultural structures, schools, and playgrounds,
all of which reduce the amount of natural groundwater recharge
that would otherwise be available to reduce rainwater runoff.

(5) The Salinas River watershed includes flood control structures
that were designed and constructed many years ago. Those flood
control structures are now proving to be inadequate to protect the
area’s agricultural lands, commercial, residential, and public sector
buildings, and environmental resources.

(6) Recent floods along the Salinas River watershed have
resulted in significant physical and economic loss. The severe
floods of 1995 damaged approximately 30,000 acres of agricultural
land, resulted in the permanent loss of 1,100 acres of prime
farmland to erosion, flood-related losses were estimated at two
hundred forty million dollars ($240,000,000), and virtually all the
flood control levees along the Salinas River were destroyed or
severely damaged. In 1998, flooding caused 50 roads and highways
to be closed, with 29,000 acres of farmland damaged, and created
agricultural losses of over seven million dollars ($7,000,000). In
2011, the reported agricultural losses from flooding included
approximately four million dollars ($4,000,000) in lost gross
production value and approximately one million five hundred
thousand dollars ($1,500,000) in cleanup and ranch repair.

(7) The Salinas River flows through and irrigates some of the
richest and most fertile agricultural lands in the state and even the
world. The crops grown here are shipped to almost every corner
of the globe. If a disastrous flood is to occur, the impact will be
felt worldwide and have serious consequences on our state and
national economy.

(8) The County of Monterey agriculture sector generates nearly
eight billion two hundred million dollars ($8,200,000,000) annually
and supports more than 73,000 jobs, including, but not limited to,
farm workers, packing house employees, truck drivers, and
warehouse personnel. According to a Department of Food and
Agriculture report, the County of Monterey is the fourth largest
agricultural producing county in the state representing almost 10
percent of the state’s annual agricultural production. The County
of Monterey grows more than 50 crops with an annual gross
production of over one million dollars ($1,000,000), including,
but not limited to, strawberries, lettuce, broccoli, celery, and wine
grapes.

(9) There is a need for a local, intergovernmental, and
cooperative governance structure, with public-private partnership
involvement, for the Salinas River watershed in order to develop
and implement a systemic, rational, and cost-effective program of
flood control and watershed management.

(10) It is the intent of the Legislature, through the enactment of
this section, to enable the local governments and local residents
of the Salinas River watershed to exercise appropriate powers to
ensure that the human, economic, and environmental resources of
the watershed are preserved, protected, and enhanced in terms of
watershed management and flood protection.

(b) The agency shall establish a multiobjective, multibenefit
consensus-based comprehensive Salinas River Management
Program. The program shall address the long-term management
of the Salinas River to protect the unique environmental, cultural,
and agricultural resources within the Salinas Valley.

(c) The agency shall establish a steering committee that shall
develop the program. The steering committee shall include
representatives from all major interested parties, including, but
not limited to, landowners, regulatory agencies, environmental
organizations, the agency, and local governments, including, but
not limited to, the County of Monterey.

SEC. 2.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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