BILL ANALYSIS Ó
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: AB 2662 HEARING DATE: June 10, 2014
AUTHOR: Gatto URGENCY: No
VERSION: February 21, 2014 CONSULTANT: Dennis O'Connor
DUAL REFERRAL: No FISCAL: No
SUBJECT: Silver Lake Reservoir: drainage: civil penalty.
BACKGROUND AND EXISTING LAW
The Silver Lake Reservoir Complex comprises two reservoirs,
Silver Lake and Ivanhoe Reservoir, in the Silver Lake region of
the City of Los Angeles. The reservoirs are owned by the Los
Angeles Department of Water and Power (LADWP).
The Silver Lake Reservoir Complex (SLRC) Bypass Pipeline Project
is a key component of the Silver Lake Reservoir Complex Storage
Replacement Project, which was approved by LADWP Board of Water
and Power Commissioners in 2005, to comply with updated U.S.
Environmental Protection Agency water quality regulations. The
Silver Lake Reservoir Complex Storage Replacement Project
includes:
the construction of an underground replacement water storage
facility near Griffith Park (Headworks Reservoir); and,
the construction of a bypass line at Ivanhoe and Silver Lake
Reservoirs to maintain the water supply connection and isolate
Ivanhoe and Silver Lake Reservoirs, which will remain as
filled open reservoirs but not part of the drinking water
system.
The construction of the Bypass Pipeline and a pressure regulator
station is a required component of the Silver Lake Reservoir
Complex Storage Replacement Project and will allow the
preservation of Ivanhoe and Silver Lake Reservoirs for the
public's benefit.
Construction is currently scheduled to start in Spring/Summer
2015 and is scheduled to be completed in late 2016.
The project also calls for Silver Lake Reservoir to be drained
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for 12 months starting January 2016.
PROPOSED LAW
(1)This bill would require LADWP to refill the Silver Lake
Reservoir water to at least 80 percent of its water capacity
within 18 months of being drained.
(2)If the reservoir is not refilled per (1), LADWP would be
required to pay a civil penalty of $100,000 per week, to the
City of Los Angeles (City), for each week that the reservoir
is not filled per (1) to mitigate the effects of the drainage
of the Silver Lake Reservoir on the Silver Lake neighborhood.
(3)Funds paid per (2) shall not be payable from rate-payer
funds.
ARGUMENTS IN SUPPORT
According to the author, "In order to comply with a 2006
Environmental Protection Agency ruling requiring the transition
from open-air potable water storage, the Los Angeles Department
of Water and Power (LADWP) is replacing the potable water
storage functions of the Silver Lake Reservoir with a covered
reservoir near Griffith Park. LADWP's current proposal requires
eighteen months of construction, during which the Silver Lake
Reservoir would be drained. This alternative was chosen after
many months of community input and negotiation, in large part
because the compacted construction schedule would protect the
community from the more intrusive disruption which would result
from other alternatives."
"Draining the reservoir will have significant impacts on the
community and the environment. The loss of this community
resource will affect recreation, aesthetics, air quality, and
even migratory bird patterns. Residents of the Silver Lake
neighborhood deserve accountability for the assurances made in
choosing this alternative."
"This proposal would, therefore, require $100,000 of mitigation
compensation from LADWP for every week beyond the eighteen-month
construction period that the Silver Lake Reservoir is not filled
to at least 80% of its capacity. The funds would be used to
mitigate the impacts of delays on the local community."
ARGUMENTS IN OPPOSITION: None
COMMENTS
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Why Is This A State Issue? The reservoirs are owned by a city
department, are located within the city, and would affect
primarily city residents. The project has completed state
required environmental documents and appears to be complying
with all applicable state regulations and laws. To the extent
there are issues with this project, they appear to be city
issues, not state issues.
Why Civil Penalties? This bill would have LADWP pay civil
penalties to the city should Silver Lake not be refilled with
water to at least 80 percent of its water capacity within 18
months of being drained. It is certainly unusual, if not
unprecedented, for a city department to have to pay civil
penalties to the city itself.
What Funds The Fines If Not Ratepayers? LADWP's operating
revenues for its water system derive from its water rates.
While there are some non-operating revenues, they mostly derive
from investments of reserve funds or federal grants, both of
which have restrictions on their use. It is not clear what
funds if any there would be to pay the civil penalties
established by this bill, should they be incurred.
SUGGESTED AMENDMENTS: None
SUPPORT: None Received
OPPOSITION: None Received
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