BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1318|
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                                   THIRD READING 


          Bill No:  SB 1318
          Author:   Wolk (D) 
          Amended:  4/12/16  
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  5-1, 4/6/16
           AYES:  Hertzberg, Beall, Hernandez, Lara, Pavley
           NOES:  Moorlach
           NO VOTE RECORDED:  Nguyen

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  5-2, 4/20/16
           AYES:  Wieckowski, Hill, Jackson, Leno, Pavley
           NOES:  Gaines, Bates

           SENATE APPROPRIATIONS COMMITTEE:  4-2, 5/23/16
           AYES:  Lara, Beall, Hill, McGuire
           NOES:  Bates, Nielsen
           NO VOTE RECORDED:  Mendoza

           SUBJECT:   Local government:  drinking water infrastructure or  
                     services:  wastewater infrastructure or services


          SOURCE:    Leadership Counsel for Justice and Accountability

          DIGEST:   This bill requires Local Agency Formation Commissions  
          (LAFCOs) to recommend and adopt plans for providing water or  
          wastewater services to disadvantaged unincorporated communities  
          (DUCs) that lack those services.

          ANALYSIS:  


          Existing law:









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          1)Creates a LAFCO in each county to control the boundaries of  
            cities, county service areas, and most special districts.  


          2)Requires a LAFCO to: 


             a)   Adopt a policy document for each city and district  
               called a sphere of influence, in order to promote orderly  
               development within the sphere.


             b)   Make boundary decisions that are consistent with the  
               spheres of influence of the affected cities or districts.  


             c)   Update spheres of influence at least every five years,  
               as necessary.


             d)   Periodically conduct a "municipal service review" (MSR)  
               that analyze and make determinations about seven topics:


                i)      Growth and population projections;


                ii)     Present and planned capacity of public facilities  
                  and adequacy of public services, including  
                  infrastructure needs or deficiencies, including the  
                  water, sewer, and fire protection needs of DUCs;


                iii)    Agencies' financial abilities to provide services;


                iv)     Opportunities for sharing facilities;


                v)      Accountability for community service needs;









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                vi)     The location and characteristics of any DUCs; and


                vii)    Other matters relating to effective or efficient  
                  services.


          3)Allows local governments to only exercise their powers and  
            provide services where LAFCO allows them to, specifically:


             a)   Within their boundaries (which are set by LAFCO);


             b)   Within their spheres of influence but outside their  
               boundaries (with authorization by LAFCO), and;


             c)   Outside their spheres to address a major threat to  
               public health if the extension is consistent with LAFCO's  
               policies.  


          4)Imposes restrictions, pursuant to SB 244 (Wolk, Chapter 513,  
            Statutes of 2011), relating to DUCs on LAFCOs, cities, and  
            counties, including:


             a)   Prohibits annexations to a city of territory greater  
               than 10 acres if a DUC is contiguous with the territory  
               proposed for annexation, unless there is an application  
               with the commission to annex the unincorporated area or if  
               the residents of the affected territory oppose annexation.   



             b)   Requires LAFCOs to include in the MSR a description of  
               the location and characteristics of any DUCs within or  
               contiguous to the sphere of influence and to consider the  
               water, sewer, or fire protection needs of DUCs within the  
               sphere when considering updates.  








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             c)   Allows LAFCOs to assess options for governmental  
               reorganizations or consolidations that improve the  
               efficiency and affordability of service delivery and review  
               whether water systems in the area are in compliance with  
               the Safe Drinking Water Act.


             d)   Requires cities and counties to review the water and  
               fire service needs of DUCs in their general plans.


          This bill:


          1)Prohibits annexations of territory greater than 10 acres to a  
            special district that provides drinking water or wastewater  
            services to 500 or more connections if a DUC is contiguous  
            with the territory proposed for annexation, unless there is an  
            application with the commission to annex the unincorporated  
            area or if the residents of the affected territory oppose  
            annexation.


          2)Requires a sphere of influence to promote orderly development  
            in areas adjacent to the sphere.


          3)Requires certain spheres of influence to determine the water,  
            wastewater, and fire protection needs of DUCs adjacent to the  
            sphere.


          4)Prohibits LAFCOs from removing a disadvantaged community from  
            a sphere of influence unless the commission makes a finding  
            that the removal will improve services to that community.


          5)Requires LAFCOs to:










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             a)   Assess options to improve the efficiency and  
               affordability of service delivery for DUCs that lack  
               drinking water and wastewater services and review whether  
               water systems in the area are in compliance with the Safe  
               Drinking Water Act, if information is available.


             b)   Perform MSRs sufficient to have reviewed the entire  
               county by January 1, 2022 and every five years thereafter.


             c)   File a map of the county with the Office of Planning and  
               Research that identifies DUCs that lack drinking water and  
               wastewater services.


             d)   Recommend plans to address water and wastewater service  
               deficiencies and adopt actions necessary to implement those  
               plans, within two years of identification of the  
               deficiency.


          6)Excludes the actions necessary under the plan from protest  
            provisions, except in the DUC that would receive service.


          7)Exempts LAFCOs from developing and implementing such plans if  
            they make findings that there is no technical or economically  
            feasible way of connecting the DUC to an existing water or  
            wastewater system.


          8)Prohibits certain sphere of influence changes if the LAFCO has  
            not adopted and taken actions necessary to implement the plan  
            by 2022, or if an agency identified in a plan has not provided  
            service within three years of being designated in the plan as  
            the service provider for a DUC.


          Background










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          LAFCOs, along with the planning agencies of cities and counties,  
          are supposed to ensure that services are effectively and  
          efficiently delivered to all communities throughout the state.   
          Nevertheless, some communities continue to lack adequate public  
          services, including safe drinking water and functioning  
          wastewater systems.  These communities are often poor and are  
          located in the unincorporated area of a county.  In some cases  
          these DUCs are remote and far from other communities with better  
          public services; in others, a city may share a border with a DUC  
          that has been excluded from its boundaries.


          In recent years, the Legislature has taken several steps to try  
          to address some of the service problems experienced by DUCs. SB  
          244 (Wolk, 2011) aimed to prevent cities from carving out DUCs  
          and to identify service deficiencies.  SB 244 made it easier for  
          LAFCOs to identify boundary changes and governmental  
          reorganizations necessary to fix water service problems faced by  
          DUCs.  Subsequent legislation-SB 88 (Committee on Budget and  
          Fiscal Review, Chapter 27, Statutes of 2015)-took this effort a  
          step further by authorizing the State Water Resources Control  
          Board (SWRCB) to order a consolidation of neighboring water  
          systems where it is economically feasible in order to address  
          public health threats.  To date, SWRCB has begun the  
          consolidation process with two water systems in communities that  
          border the city of Tulare.


          Some advocates for DUCs want to provide additional incentives  
          for local governments to serve DUCs that lack safe drinking  
          water or adequate wastewater service.


          Comments


          1)Purpose of the bill. Many communities in California continue  
            to suffer from third-world level drinking water and wastewater  
            services.  In many cases, these communities' border cities or  
            special districts with more than enough capacity to serve  
            them, but their boundaries have been drawn to specifically  
            exclude them.  Despite recent legislative efforts, some cities  








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            continue to look to serve new development outside of their  
            current boundaries before helping neighboring communities.   
            While SB 244 helped highlight the disparity in services for  
            DUCs, stronger measures are needed to ensure that LAFCOs and  
            local governments faithfully carry out their responsibilities.  
             SB 1318 is simply the next step.  It incentivizes cities and  
            special districts that want to serve new development to help  
            meet the needs of existing communities with drinking water and  
            wastewater problems, and codifies best practices that  
            conscientious LAFCOs already follow.  SB 1318 won't solve all  
            of the problems of DUCs, but it provides an important tool to  
            get the state closer to its goal of ensuring that all  
            Californians have access to safe, affordable drinking water.


          2)Burden on LAFCOs. SB 1318 imposes a number of burdens on  
            LAFCOs that they may not have the resources or expertise to  
            pursue, including mandatory studies of territory outside of an  
            agency's sphere, mandatory assessments of alternatives for  
            communities that lack adequate drinking water or wastewater,  
            and developing plans for service provision.  Cities, counties,  
            and special districts fund LAFCO operations, but many of those  
            agencies are still recovering from the recession.  Is now the  
            right time to impose additional financial responsibilities on  
            local agencies that are just getting to their feet?


          3)Restrictions on development. A viable development needs  
            certain services, including drinking water and wastewater, but  
            a local government can only provide those services where LAFCO  
            lets them.  By restricting the ability of LAFCO to approve  
            service extensions or sphere of influence updates, SB 1318  
            could pose additional obstacles to much needed development  
            throughout the state.  


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


          According to the Senate Appropriations Committee:









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           Significant local costs which are not reimbursable from the  
            state.  


           Minor costs to the Governor's Office of Planning and Research  
            to post maps of certain DUCs on its Web site. (General Fund)


          SUPPORT:   (Verified5/25/16)


          Leadership Counsel for Justice and Accountability (source)
          California Environmental Justice Alliance
          California Food Policy Advocates
          California League of Conservation Voters
          California Rural Legal Assistance Foundation
          Clean Water Action
          Community Water Center
          Environmental Justice Coalition for Water
          Environmental Working Group
          Natural Resources Defense Council
          Policy Link 
          Pueblo Unido Community Development Coalition
          San Joaquin Valley Sustainable Agriculture Collaborative
          Sequoia Riverlands Trust
          Sierra Club California
          The Trust for Public Land


          OPPOSITION:   (Verified5/25/16)


          Calaveras County LAFCO
          California Apartment Association
          California Association of Local Agency Formation Commissions
          California Association of Realtors
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California Manufacturers and Technology Association
          California Municipal Utilities Association








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          California Special Districts Association
          City of Sacramento
          Contra Costa LAFCO
          Costa Mesa Sanitation
          Cucamonga Valley Water District
          Desert Water Agency
          El Dorado LAFCO
          Elsinore Valley Municipal Water District
          Imperial County LAFCO
          Kern County LAFCO
          League of California Cities
          Merced County LAFCO
          Nevada County LAFCO
          Orange County LAFCO
          Placer County LAFCO
          Riverside County LAFCO
          San Bernardino LAFCO
          San Diego LAFCO
          San Mateo LAFCO
          Santa Cruz LAFCO
          Sonoma LAFCO
          Stanislaus County LAFCO


           


           
          Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
          5/25/16 13:50:27


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