BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1318|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 1318
          Author:   Wolk (D) 
          Amended:  6/1/16  
          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 plans for providing water or wastewater  
          services to disadvantaged unincorporated communities (DUCs) that  
          lack those services.

          Senate Floor Amendments of 6/1/16 recast the plan for providing  
          services, delete certain prohibitions on sphere of influence  
          updates, and add a new requirement to the land use element of  
          city and county general plans.









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          ANALYSIS: 


          Existing law:


          1)Requires every city and county to develop a comprehensive  
            general plan that includes seven mandatory elements, including  
            a land use element that describes the intensity and general  
            location of various land uses such as residential, commercial,  
            industrial, and open space.


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


          3)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  








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                  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;


                vi)     The location and characteristics of any DUCs; and


                vii)    Other matters relating to effective or efficient  
                  services.


          4)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.  


          5)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  








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               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.  


             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)Authorizes a LAFCO to initiate proceedings for the annexation  
            of a DUC.


          2)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.


          3)Requires a sphere of influence to promote orderly development  








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            in areas adjacent to the sphere.


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


          5)Requires LAFCOs to:


             a)   Identify DUCs within or adjacent to the sphere of  
               influence of a city or special district and review the  
               adequacy of water and wastewater services in those  
               communities by January 1, 2018 and every five years  
               thereafter.


             b)   File a map of the county with the Office of Planning and  
               Research that identifies DUCs that lack drinking water and  
               wastewater services, as well as the State Water Resources  
               Control Board (SWRCB) and Regional Water Quality Control  
               Boards, as applicable.


             c)   Develop an accessibility plan for DUCs that lack water  
               or wastewater on or before January 1, 2020 that identifies,  
               among other things, the local agencies best positioned to  
               provide water or wastewater to the DUCs, the actions that  
               the LAFCO and the local agency must take to resolve the  
               deficiency, and those DUCs for which there is no  
               technically or economically feasible way of connecting an  
               existing system.


             d)   Hold a hearing on the status of the identified DUCs  
               within two years of adopting an accessibility plan and take  
               the action identified in the plan if the deficiency remains  
               unaddressed.


          6)Excludes the actions necessary under the plan from protest  








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            provisions, except that the LAFCO shall not take the action  
            recommended in the accessibility plan if it finds that a  
            majority of voters are opposed to the recommended action.


          7)Prohibits the costs and fees charged to residents of a DUC  
            that becomes part of a city or special district pursuant to an  
            accessibility plan from exceeding the costs to existing  
            customers.


          8)Requires a city or county to include the accessibility plans  
            and analyses of services provided to DUCs in the land use  
            element of its general plans upon the next revision of the  
            housing element.  


          Background


          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 SWRCB to order a consolidation  
          of neighboring water systems where it is economically feasible  








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          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  
            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 ensures that LAFCOs take  
            the information that they gathered through SB 244 and come up  
            with a plan to help those communities in need of better water  
            and wastewater.  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 cities, counties, and LAFCOs. SB 1318 imposes a  
            number of significant burdens on cities, counties, and LAFCOs.  
             Changes to general plans can be expensive, time-consuming  
            endeavors.  By requiring local governments to incorporate the  
            accessibility plans into their land use elements, SB 1318 adds  
            to a long and growing list of unfunded mandates imposed  
            through the general planning process.  In addition, SB 1318  
            requires LAFCOs to significantly expand their activities,  
            including additional studies of areas outside of spheres of  








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            influence and developing plans for services.  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  
            responsibilities on local agencies that are just getting to  
            their feet?


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


          According to the Senate Appropriations Committee:


           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:   (Verified6/1/16)


          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








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          OPPOSITION:   (Verified6/1/16)


          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
          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


           


           








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          Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
          6/1/16 18:41:45


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