BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2662| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2662 Author: Gatto (D) Amended: As introduced Vote: 21 SENATE NATURAL RESOURCES AND WATER COMMITTEE : 6-0, 6/10/14 AYES: Pavley, Evans, Jackson, Lara, Monning, Wolk NO VOTE RECORDED: Cannella, Fuller, Hueso ASSEMBLY FLOOR : 61-9, 5/27/14 - See last page for vote SUBJECT : Silver Lake Reservoir: drainage: civil penalty SOURCE : Author DIGEST : This bill requires that if the Los Angeles Department of Water and Power (LADWP) drain Silver Lake Reservoir (Reservoir) it must refill it to 80% capacity within 18 months or pay a $100,000 per week civil penalty to the City of Los Angeles (City) to mitigate effects on the Silver Lake neighborhood. ANALYSIS : Existing law authorizes a municipality or municipal corporation to operate as a public utility to supply its own water service. This bill: 1.Requires LADWP to refill the Reservoir water to at least 80% of its water capacity within 18 months of being drained. CONTINUED AB 2662 Page 2 2.Requires the LADWP, if the Reservoir is not refilled, to pay a civil penalty of $100,000 per week, to the City, for each week that the Reservoir is not filled, to mitigate the effects of the drainage of the Reservoir on the Silver Lake neighborhood. 3.Specifies that the penalty may not be payable from rate-payer funds. Background The Silver Lake Reservoir Complex (SLRC) 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 LADWP. The SLRC Bypass Pipeline Project is a key component of the SLRC Storage Replacement Project (Project), which was approved by the LADWP Board of Water and Power Commissioners in 2005, to comply with updated U.S. Environmental Protection Agency water quality regulations. The SLRC 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 SLRC 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 SLRC Project also calls for the Reservoir to be drained for 12 months starting January 2016. Comments CONTINUED AB 2662 Page 3 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No ASSEMBLY FLOOR : 61-9, 5/27/14 AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Hagman, Hall, Roger Hernández, Holden, Jones-Sawyer, Levine, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NOES: Achadjian, Chávez, Conway, Dahle, Grove, Harkey, Jones, CONTINUED AB 2662 Page 4 Mansoor, Wagner NO VOTE RECORDED: Allen, Bigelow, Donnelly, Linder, Logue, Nestande, Patterson, Quirk-Silva, Waldron, Vacancy RM:k 6/11/14 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED