BILL NUMBER: SB 2041 CHAPTERED 09/27/00 CHAPTER 772 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2000 APPROVED BY GOVERNOR SEPTEMBER 26, 2000 PASSED THE SENATE AUGUST 25, 2000 PASSED THE ASSEMBLY AUGUST 21, 2000 AMENDED IN ASSEMBLY JULY 6, 2000 AMENDED IN SENATE MAY 15, 2000 AMENDED IN SENATE MAY 8, 2000 AMENDED IN SENATE APRIL 24, 2000 INTRODUCED BY Senator Chesbro (Coauthors: Assembly Members Thomson and Wiggins) FEBRUARY 25, 2000 An act to add and repeal Division 8 (commencing with Section 19000) of the Public Utilities Code, relating to public utilities. LEGISLATIVE COUNSEL'S DIGEST SB 2041, Chesbro. Public utilities: Mare Island Utility District. (1) Existing federal law required the closure of federal installations including Mare Island Naval Shipyard. Existing law designates the City of Vallejo as the local reuse entity and authorizes a Mare Island redevelopment plan. The Municipal Utility District Act authorizes the establishment of a utility district and provides, among other things, for its powers, organization, issuance of bonds, and incurring debt. This bill would until January 1, 2011, establish the Mare Island Utility District, as defined, within this former federal facility. The bill would provide for the composition of the 5-member board of directors for the district and require the district to commence operations upon the appointment of the directors. The bill would authorize transfer of the district's operation to specified governmental entities. The bill would prescribe the organization and powers of the district. The bill would also provide that the district would be indemnified from liability for environmental damage to the extent provided by an agreement between the City of Vallejo and the United States Navy. This bill would establish new duties for local agencies, thereby imposing a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read: DIVISION 8. THE MARE ISLAND UTILITY DISTRICT ACT CHAPTER 1. GENERAL PROVISIONS 19000. This division shall be known, and may be cited, as the Mare Island Utility District Act. 19001. As used in this division, the following terms have the following meanings: (a) "Board" is the Board of Directors of the Mare Island Utility District. (b) "City" is the City of Vallejo. (c) "County" is the County of Solano. (d) "District" is the Mare Island Utility District. 19002. A utility district is hereby established, to be called "Mare Island Utility District," within the County of Solano, and the boundaries of the district shall include all that land located within the City of Vallejo, commonly known as Mare Island Naval Shipyard, approved for closure pursuant to the Defense Base Closure and Realignment Act of 1990 (Part A of Title XXIX of Public Law 101-510). CHAPTER 2. ORGANIZATION AND FORMATION OF THE DISTRICT 19010. The board of directors of the district shall have five members who shall be appointed pursuant to this section. A director shall not be required to be a resident or a voter of the district. Two directors shall be members of the City Council of the City of Vallejo and one director shall be a member of the Board of Supervisors of the County of Solano. Two directors shall be "at large" directors who are neither city council members nor members of the board of supervisors of the county. The City Council of the City of Vallejo shall appoint four directors, including the two directors who are the city council members and the two "at large" directors. The Board of Supervisors of the County of Solano shall appoint the director who is a member of that board. The two "at large" directors shall have experience in one or more of the following areas: economic development, municipal infrastructure, or infrastructure financing. Three directors shall hold office for an initial term of four years, and two directors shall hold office for an initial term of two years. Thereafter, all directors shall hold office for a term of four years. When vacancies occur, the appointing authority shall fill the vacancy for the remainder of the term. A director's term shall commence immediately upon that director's appointment and qualification. 19012. The Mare Island Utility District shall commence operations upon the appointment of the five directors. If the district decides to transfer all or part of its operation to the city or the Vallejo Sanitation and Flood Control District or both of those entities, it may affect the transfer upon reaching agreement with the city or the Vallejo Sanitation and Flood Control District or both of those entities. If the district transfers all of its operations, the district shall cease to exist. 19014. The district may be dissolved pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, Division 3 (commencing with Section 56000) of Title 5 of the Government Code. CHAPTER 3. POWERS 19020. The directors shall collectively comprise the board of directors of the district and the board is the legislative body of the district. The board shall determine all matters and policies necessary for the proper administration and operation of the district. Except as provided otherwise, the board shall have all the powers and duties of a governing board of a municipal utility district as provided in the Municipal Utility District Act as set forth in Article 4 (commencing with Section 11881) of Chapter 3 of Division 6. 19022. The board shall conduct its meetings and transact business in accordance with the Municipal Utility District Act as set forth in Article 5 (commencing with Section 11907) of Chapter 3 of Division 6. 19024. The district may exercise all the powers and functions of a municipal utility district as provided in the Municipal Utility District Act as set forth in Chapter 6 (commencing with Section 12701) of Division 6, except as provided in subdivisions (a) and (b). (a) The district shall provide only water, sewer, and storm water runoff facilities and services. (b) The district may not have perpetual succession. 19026. Notwithstanding any other provision of law, the district may enter into contracts with either the city or the Vallejo Sanitation and Flood Control District, or both of them, to provide contract services for the provision of necessary utilities on Mare Island including, but not limited to, water, sewer services, and storm water runoff services. CHAPTER 4. DEBT 19030. The district may borrow money and incur indebtedness for the operation of the district in accordance with the Municipal Utility District Act as set forth in Chapter 7.5 (commencing with Section 13371) of Division 6. 19032. The district shall limit any term of indebtedness not to exceed December 31, 2010. CHAPTER 5. SUPPLEMENTAL PROVISIONS 19050. The district may not exercise annexation powers to extend or modify the boundaries of the district. 19052. The district does not have the authority to exclude territory from the district. 19054. Pursuant to the Mare Island Base Reuse Plan, the United States Navy is responsible for remediation of any environmental contamination of Mare Island prior to the transfer of all or any portion of Mare Island to the city. Each transfer will be pursuant to an agreement that includes indemnity provisions regarding the environmental conditions negotiated between the United States Navy and the city. To the extent that the contractual agreements between the city and the United States Navy permit the transfer of the indemnity provisions from the city to the newly-established Mare Island Utility District, the city shall have the authority to assign and transfer the indemnity provisions from the United States Navy to the district. The indemnity provisions may be assigned or transferred at the same time that the city transfers the existing infrastructure for water, sewer, and storm water sewers from the city to the district. The actual transfer of the existing water, sewer, and storm waters drainage infrastructure from the city to the district shall occur as soon as practicable following the receipt of the infrastructure from the United States Navy. 19060. This division shall remain in effect only until January 1, 2011, and as of that date is repealed unless a later enacted statute, that is enacted before January 1, 2011, deletes or extends that date. SEC. 2. The Legislature 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 unique circumstances relating to Mare Island. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIIIB of the California Constitution.