BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2470


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          Date of Hearing:  May 18, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2470 (Gonzalez) - As Amended April 26, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  This bill requires a municipal water district, upon  
          request of an Indian tribe, to provide water service to the  
          tribe's lands that are not within a district.  This bill only  
          applies if the tribe's land meet specified requirements: a) the  
          lands were owned by the tribe on January 1, 2016; b) the lands  
          are contiguous with at least two districts; c) the lands lie  
          within the special study area of at least one district; and, d)  
          at least 70% of the tribe's total Indian lands are currently  
          within the boundaries of one or more districts.  A district  
          would have to provide water service at the same terms available  
          to their current customers.  This bill also establishes  
          conditions that an Indian tribe must meet prior to receiving  
          water service.  Under this bill, the service area of the  
          district and any public agency providing water would include the  








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          tribe's land, as specified.  As written, this bill applies only  
          to the Sycuan Nation in San Diego County.  


          FISCAL EFFECT:


          No state fiscal impact.  Local agencies have the authority to  
          levy fees for related costs and thus, any local costs are not  
          reimbursable. Further, the bill requires the Indian tribe, by  
          agreement to accept all terms of, and payments to (including  
          service payments), the district as if the lands were fully  
          annexed into the district.


          COMMENTS:


          1)Purpose.  According to the author, "The Sycuan Reservation is  
            uniquely placed in relation to surrounding water district  
            boundaries.  The reservation is surrounded on three sides by  
            two different water districts, the Otay Municipal Water  
            District and the Padre Dam Municipal Water District.  Both  
            districts are retail water agencies and members of both the  
            San Diego County Water Authority and the Metropolitan Water  
            District.  
          


            "Ironically, to better serve tribal homes on after-acquired  
            parcels with a safe and reliable source of drinking water, the  
            tribe paid millions of dollars to extend the water line within  
            the boundaries of the Padre Dam Municipal Water District.   
            This line terminates a mere two feet from the boundary of the  
            original reservation, yet cannot be extended on to the  
            original reservation without lengthy, costly, unnecessary and  
            uncertain artificial state-created processes, including  
            affirmative votes by the County Water Authority and  
            Metropolitan Water District, LAFCO review and approval and  








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            CEQA analysis. To ensure the public's safety, Sycuan needs  
            legislation requiring either adjoining water district to serve  
            the developed portions of the original Reservation, assuming  
            the tribe pays all necessary and appropriate charges as any  
            other similarly situated development or governmental entity." 





          2)Background. The San Diego County Water Authority (SDCWA) is a  
            water wholesaler and purchases more than half of the water  
            used in the region from the Metropolitan Water District of  
            Southern California (MWD) and sells it to its 24 member  
            agencies, including Padre Dam Municipal Water District and  
            Otay Municipal Water District.  According to San Diego LAFCO's  
            municipal service review, "Membership in SDCWA is a  
            prerequisite for gaining entitlement to imported Colorado  
            River water and membership requires local agencies to defer to  
            SDCWA in certain areas of governance; for example, SDCWA  
            boundaries determine where agencies can extend service."  



            Annexations to member agencies like Padre Dam and Otay  
            Municipal Water District also require annexations to the  
            entities that provide them with the imported potable water  
            they provide to their customers.  The Cortese-Knox-Hertzberg  
            Act delegates the Legislature's power to control the  
            boundaries of cities and special districts to LAFCOs.  The Act  
            prohibits the districts from providing water service to the  
            lands outside their boundaries, unless the area is annexed  
            within their boundaries or they obtain written approval to  
            serve territory outside their boundaries.  













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            Under existing law, for Padre Dam Municipal Water District to  
            provide water service to the tribe's lands outside its  
            boundaries would require LAFCO approval, and must also be  
            consistent with MWD's Administrative Code, the County Water  
            Authority Act, and SDCWA's Annexation Policies and Procedures  
            which requires the Water Authority to evaluate the adequacy of  
            water supplies and facilities to meet the needs of the  
            proposed annexed territory.  Sycuan submitted a petition in  
            2008 to the Otay Water District to annex the original  
            reservation parcels to the district, but later withdrew the  
            application.  





            This bill avoids the usual LAFCO annexation process and  
            instead requires either adjoining water district to serve the  
            developed portions of the original Reservation.





          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081


















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