BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 26
          Author:   Correa (D)
          Amended:  6/17/14
          Vote:     21


          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  78-0, 8/14/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Orange County Water District:  land use

           SOURCE  :     City of Anaheim


           DIGEST  :    This bill requires the Orange County Water District  
          (OCWD), in the development of property that OCWD owns that is  
          within the boundaries of a city, to give notice of its intent to  
          that city, and hold a public hearing in certain instances.

           Assembly Amendments  delete the Senate version of this bill  
          relating to slate mailers and instead make changes to the OCWD  
          Act regarding the development of OCWD property located within  
          city boundaries.

           ANALYSIS  :    

          Existing law:

          1.Creates the OCWD Act and prescribes its powers and duties and  
            boundaries, consisting of specified lands in the County of  
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            Orange, including the Cities of Anaheim, Fullerton, and Santa  
            Ana.

          2.Authorizes OCWD to perform actions useful or necessary to  
            replenish the underground water basin with the OCWD, or to  
            augment and protect the quality of the common water supplies  
            of the OCWD.

          3.Specifies, in OCWD's Act, that the legal title to all property  
            acquired under the provisions of the OCWD Act shall  
            immediately and by operation of law vest in said district, and  
            shall be held by said district, in trust for, and is hereby  
            dedicated and set apart to, the uses and purposes set forth in  
            the OCWD Act.  The board of directors is hereby authorized and  
            empowered to hold, use, acquire, manage, occupy and possess  
            said property, as herein provided; and said board of directors  
            may determine, by resolution duly entered in their minutes  
            that any property, real or personal, held by said district is  
            no longer necessary to be retained for the uses and purposes  
            thereof, and may thereafter sell or otherwise dispose of said  
            property.

          4.Provides, in existing law, for the regulation of local  
            agencies by cities and counties, as follows:

             A.   Each local agency shall comply with all applicable  
               building ordinances and zoning ordinances of the county or  
               city in which the territory of the local agency is  
               situated.

             B.   Each local agency required to comply with building  
               ordinances and zoning ordinances and each school district  
               whose school buildings are inspected by a county or city  
               pursuant to existing law shall be subject to the applicable  
               ordinances of a county or city requiring the payment of  
               fees, but the amount of those fees charged to a local  
               agency or school district shall not exceed the amount  
               charged under the ordinance to nongovernmental agencies for  
               the same services or permits.

             C.   Building ordinances of a county or city shall not apply  
               to the location of construction of facilities for the  
               production, generation, storage, treatment, or transmission  
               of water, wastewater, or electrical energy by a local  

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               agency.

             D.   Zoning ordinances of a county or city shall not apply to  
               the location or construction of facilities for the  
               production, generation, storage, treatment, or transmission  
               of water, or for the production or generation of electrical  
               energy, facilities that are subject to Section 12808.5 of  
               the Public Utilities Code, or electrical substations in an  
               electrical transmission system that receives electricity at  
               less than 100,000 volts.  Zoning ordinances of a county or  
               city shall apply to the location of construction of  
               facilities for the storage or transmission of electrical  
               energy by a local agency, if the zoning ordinances make  
               provision for those facilities.

          1.Allows the governing board of a local agency, by vote of  
            four-fifths of its members, to render a city or county zoning  
            ordinance inapplicable to a proposed use of property if the  
            local agency at a noticed public hearing determines by  
            resolution that there is no feasible alternative to its  
            proposal.

          2.Provides that the governing board may not render a zoning  
            ordinance inapplicable to a proposed use of property when the  
            proposed use of the property by the local agency is for  
            facilities not related to storage or transmission of water or  
            electrical energy, including, but not limited to, warehouses,  
            administrative buildings or automotive storage and repair  
            buildings.

          3.Requires the governing board, within 10 days, to notify the  
            city or county, whose zoning ordinance has been rendered  
            inapplicable, of its action, and specifies, if the governing  
            board has taken this action, the city or county may commence  
            an action in the superior court of the county whose zoning  
            ordinance is involved or in which is situated the city whose  
            zoning ordinance is involved, seeking a review of the action  
            of the governing board to determine whether it was supported  
            by substantial evidence.

          This bill:

          1.Clarifies, by adding to OCWD's Act, that provisions of  
            existing law related to the regulation of local agencies by  

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            counties and cities shall apply to any property owned by OCWD.

          2.Requires OCWD to provide notice of intent to develop real  
            property owned by OCWD that is located within the boundaries  
            of a city, to the planning agency of that city, at least 30  
            days in advance of any action to approve the development by  
            OCWD's board.

          3.Requires, for the location or construction of a facility as  
            specified in Government Code 53091 (e) that is proposed to be  
            located in the boundaries of a city, that OCWD conduct at  
            least one public meeting in that city.

          4.Declares the intent of the Legislature that OCWD adopt a  
            policy to address the process for development of property  
            owned by the district that is located within the boundaries of  
            a city, with the following goals:

             A.   To clarify, by amending the OCWD's Act, that provisions  
               of existing law related to the regulation of local agencies  
               by counties and cities contained in the Government Code  
               apply to any property owned by OCWD;

             B.   To foster greater collaboration between OCWD and a city  
               on the development of real property owned by OCWD located  
               within the boundaries of that city; and

             C.   To provide increased transparency to the community in  
               land use decisions with respect to the development of real  
               property owned by OCWD located within the boundaries of a  
               city.

          1.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 parcels of land in the County of Orange  
            and the need to ensure that development of real property by  
            OCWD not subject to local planning and zoning ordinances is  
            open to public scrutiny.

           Background
           
          The OCWD Act was formed in 1933 by the Legislature to protect  
          Orange County's rights to water in the Santa Ana River.  OCWD's  

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          primary responsibility is managing the vast groundwater basin  
          under northern and central Orange County that supplies water to  
          more than 20 cities and water agencies, serving more than 2.3  
          million Orange County residents.

          Existing law addresses the regulation of local agencies  
          (including special districts) by counties and cities, and in  
          general, requires each local agency to comply with all  
          applicable building ordinances and zoning ordinances of the  
          county or city in which the territory of the local agency is  
          situated.  However, there are some exceptions to this general  
          policy.  Existing law specifies that building ordinances of a  
          county or city shall not apply to the location or construction  
          of facilities for the production, generation, storage,  
          treatment, or transmission of water, wastewater, or electrical  
          energy by a local energy.  Existing law also says that zoning  
          ordinances of a county or city shall not apply to the location  
          or construction of facilities for the production, generation,  
          storage, treatment, or transmission of water, certain specified  
          facilities, or electrical substations in an electrical  
          transmission system that receives electricity at less than  
          100,000 volts.

          This same section of law allows the governing board of a local  
          agency, by a four-fifths vote of its members, to render a city  
          or county zoning ordinance inapplicable to a proposed use of  
          property if the local agency, at a noticed public hearing,  
          determines by resolution that there is no feasible alternative  
          to its proposal.  However, the governing board may not render a  
          zoning ordinance inapplicable to a proposed use of property when  
          it is for facilities not related to storage or transmission of  
          water or electoral energy, including, but not limited to,  
          warehouses, administrative buildings or automotive storage and  
          repair buildings.

          If the governing board of a local agency renders a city or  
          county zoning ordinance applicable in this manner, the board is  
          required to notify the city or county within 10 days.  Once the  
          governing body has taken this action, the city or county can  
          commence an action in the superior court of the county whose  
          zoning ordinance is involved or in which is situated the city  
          whose zoning ordinance is involved, and seek a review of the  
          action of the governing board to determine whether it was  
          supported by substantial evidence.

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          In general, this section of law means that if a special district  
          owns property within the boundaries of a city or county, that  
          that special district must comply with how the city or county  
          has that land or property zoned.  However, city zoning  
          ordinances do not apply to the location or construction of  
          facilities related to energy production or generation, as  
          specified, or to the production, generation, storage, treatment,  
          or transmission of water, as specified.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Assembly Appropriations Committee, potentially  
          reimbursable costs of approximately $7,000 (General Fund), each  
          time the OCWD conducts a public meeting regarding a facility  
          that is exempt from local zoning ordinances.  This includes  
          costs for notices, facilities, translations services and  
          devices, printed handout materials, staff and consultant time  
          and other miscellaneous costs.  It is unknown how often, but  
          anticipated to be infrequent, that the OCWD would be required to  
          hold a public meeting under this bill.

           SUPPORT  :   (Verified  8/14/14)

          City of Anaheim (source)

           ARGUMENTS IN SUPPORT  :    According to the author, "Last year,  
          the OCWD sought to develop property in the City of Anaheim in a  
          way that was inconsistent with the City's planning ordinances.   
          The OCWD currently owns 20 acres of land near Ball Road and the  
          57 Freeway, in an area called the Ball Road Basin.  OCWD entered  
          into a long-term lease agreement with a private power firm for  
          the potential development of a 300-600 megawatt private power  
          plant.

          "Despite significant opposition from the surrounding community,  
          business groups in the area, and state and local leaders, OCWD  
          moved forward with an expedited process to allow development.   
          In response to this decision, the Cities of Anaheim and  
          Fullerton adopted Council Resolutions that called on  
          governmental agencies, such as OCWD, to fully comply with the  
          respective city's zoning and planning requirements, especially  
          in cases when a proposed development would have significant  

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          environmental impacts.

           ASSEMBLY FLOOR  :  78-0, 8/14/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Roger Hernández, Vacancy


          AB:e  8/15/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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