BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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.
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          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
           

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          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,  

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                                                                     Page  
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            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

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