BILL NUMBER: SB 807 CHAPTERED 10/10/99 CHAPTER 779 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 7, 1999 PASSED THE SENATE SEPTEMBER 9, 1999 PASSED THE ASSEMBLY SEPTEMBER 3, 1999 AMENDED IN ASSEMBLY SEPTEMBER 1, 1999 AMENDED IN ASSEMBLY AUGUST 19, 1999 AMENDED IN ASSEMBLY AUGUST 16, 1999 AMENDED IN ASSEMBLY JULY 8, 1999 AMENDED IN ASSEMBLY JUNE 28, 1999 AMENDED IN SENATE MAY 6, 1999 AMENDED IN SENATE APRIL 27, 1999 AMENDED IN SENATE APRIL 13, 1999 AMENDED IN SENATE APRIL 5, 1999 INTRODUCED BY Committee on Agriculture and Water Resources (Senators Costa (Chair), Johannessen, Kelley, Monteith, Peace, Speier, and Wright) FEBRUARY 25, 1999 An act to amend Section 56133 of the Government Code, to amend Section 21251 of the Public Contract Code, to amend Sections 10752, 12273, 12310, 13327, 31483, 35470.5, 41307, and 71631.7 of, and to add Sections 39034, 39035, 46796, and 46797 to, the Water Code, and to amend Sections 8.2 and 54 of the Sacramento County Water Agency Act (Chapter 10 of the Statutes of 1952, First Extraordinary Session), relating to water, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 807, Committee on Agriculture and Water Resources. Water. (1) The Cortese-Knox Local Government Reorganization Act of 1985 generally prohibits a city or district from providing new or extended services outside its jurisdiction without prior written approval of the local agency formation commission, but excepts from that prohibition contracts or agreements solely involving the provision of surplus water to agricultural lands. This bill would modify that exception to include contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures. The bill would allow a local agency formation commission to authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if certain requirements are met. (2) Existing law defines the term "groundwater basin" for the purposes of specified provisions that authorize local agencies to establish a program for the management of groundwater. This bill would revise that term to exclude a basin in which the average well yield, excluding domestic wells that supply water to a single-unit dwelling, is less than 100 gallons per minute. (3) Existing law, until January 1, 2000, requires the San Joaquin River Management Program to be administered, as prescribed, for the benefit of the San Joaquin River. This bill would extend the effective date of those provisions until January 1, 2002. (4) Under existing law, the Department of Water Resources is required to develop and implement a prescribed program of flood control projects. Existing law defines "local public agency" for the purpose of those provisions. This bill would make technical corrections in that definition. (5) Existing law, with certain exceptions, requires the San Benito County Water Conservation and Flood Control District to let all contracts for any improvement or unit of work, if the cost of the work exceeds $5,000, to the lowest responsible bidder or bidders in accordance with prescribed procedures and related requirements. This bill would revise these provisions to apply to contracts for any improvement or unit of work, if the cost of work exceeds $30,000, rather than $5,000. The bill would authorize the board of the district to let contracts for any improvement or unit of work, if the cost of work is $30,000 or less, without advertising for bids in accordance with procedures adopted by the board. The bill would make related changes. (6) The Porter-Cologne Water Quality Control Act requires the State Water Resources Control Board, upon reviewing a prescribed order adopted by a California regional water quality control board, to take into consideration specified factors in determining the amount of civil liability to impose. This bill would correct a statutory cross-reference set forth in that provision. (7) The County Water District Law, until January 1, 2000, authorizes the Contra Costa Water District to issue bonds in accordance with specified existing law to finance land acquisition and facilities for water, as prescribed. This bill would extend the effective date of that provision until January 1, 2003. (8) The California Water District Law authorizes a water district, formed pursuant to the California Water District Act, by resolution, to provide that a penalty not in excess of 10% shall be added to water, standby, facility, or other charges. This bill would provide that a district shall establish the period or date after which those charges will become delinquent. (9) The California Water Storage District Law requires the Department of Water Resources to appoint a person to the board of a water storage district under certain circumstances. This bill would transfer those apportionment duties to the board of supervisors, thereby imposing a state-mandated local program. The bill would provide that actions or proceedings, based on the alleged invalidity or irregularity of a deed executed by a county treasurer to a water storage district or based on the alleged ineffectiveness of the deed to convey absolute title to the property, may be commenced only within 180 days after the recordation of the deed. The bill would also provide that actions or proceedings, based on the alleged invalidity or irregularity of any agreement of sale, deed, lease, or option executed by a water storage district in connection with land deeded to it by a county treasurer or based on the alleged ineffectiveness of the instrument to convey or affect the title to the land described in it, may be commenced only within 180 days after the execution of the instrument by the district. (10) The Municipal Water District Law of 1911, until January 1, 2000, prohibits a standby assessment or availability charge levied in any improvement district situated within the San Luis Rey Municipal Water District from exceeding a specified amount and requires the proceeds of such an assessment or charge to be used as prescribed. This bill would extend the effective date of that provision until January 1, 2005. (11) The Sacramento County Water Agency Act creates the Sacramento County Water Agency and prohibits the agency from transferring the title to real property, water rights, or waterworks without a vote of the voters of the district at an election held for that purpose. The act also establishes a water advisory commission consisting of 7 members appointed in a prescribed manner. This bill would delete the provision requiring a vote of the district voters prior to the transfer of the agency's real property, water rights, or waterworks. The bill would revise the provision relating to the establishment of a water advisory commission by, instead, requiring the agency to establish that commission only if a specified groundwater management zone is formed. (12) 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (13) The bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 56133 of the Government Code is amended to read: 56133. (a) A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county. (b) The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization. (c) The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if both of the following requirements are met: (1) The entity applying for the contract approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents. (2) The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code, or sewer system corporation as defined in Section 230.6 of the Public Utilities Code, that has filed a map and a statement of its service capabilities with the commission. (d) This section does not apply to contracts or agreements solely involving two or more public agencies. This section does not apply to contracts for the transfer of nonpotable or nontreated water. This section does not apply to contracts or agreements solely involving the provision of surplus water to agricultural lands and facilities, including, but not limited to, incidental residential structures, for projects that serve conservation purposes or that directly support agricultural industries. However, prior to extending surplus water service to any project that will support or induce development, the city or district shall first request and receive written approval from the commission in the affected county. This section does not apply to an extended service that a city or district was providing on January 1, 1994. This section does not apply to a local publicly owned electric utility, as defined by Section 9604 of the Public Utilities Code, providing electric services that do not involve the acquisition, construction, or installation of electric distribution facilities by the local publicly owned electric utility, outside of the utility's jurisdictional boundaries. SEC. 2. Section 21251 of the Public Contract Code is amended to read: 21251. (a) (1) All contracts for any improvement or unit of work, if the cost according to the estimate of the engineer will exceed thirty thousand dollars ($30,000), shall be let to the lowest responsible bidder or bidders as provided in this article. The board shall first determine whether the contract shall be let as a single unit or divided into severable parts, or both. (2) All contracts for any improvement or unit of work, if the cost according to the estimate of the engineer is thirty thousand dollars ($30,000) or less, may be let without advertising for bids in accordance with procedures adopted by the board. (b) The board shall call for bids and advertise the call pursuant to Section 6063 of the Government Code in the district, inviting sealed proposals for the construction or performance of the improvement or work before any contract is made. The call for bids shall state whether the work is to be performed as one unit or divided into severable specific parts. (c) The work may be let under a single contract or several contracts, or both, as stated in the call. The board shall require the successful bidder or bidders to file with the board good and sufficient bonds to be approved by the board conditioned upon the faithful performance of the contract and upon the payment of their claims for labor and material. The bonds shall comply with Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code. The board may reject any bid. (d) If all proposals are rejected or no proposals are received, or the estimated cost of the work does not exceed five thousand dollars ($5,000), or the work consists of channel protection, maintenance work, or emergency work, the board may have the work done by force account without advertising for bids. In case of an emergency, if notice for bids to let contracts will not be given, the board shall comply with Chapter 2.5 (commencing with Section 22050). (e) The district may purchase in the open market, without advertising for bids, materials and supplies for use in any work either under contract or by force account. SEC. 2.5. Section 10752 of the Water Code is amended to read: 10752. Unless the context otherwise requires, the following definitions govern the construction of this part: (a) "Groundwater" means all water beneath the surface of the earth within the zone below the water table in which the soil is completely saturated with water, but does not include water which flows in known and definite channels. (b) "Groundwater basin" means any basin identified in the department's Bulletin No. 118, dated September 1975, and any amendments to that bulletin, but does not include a basin in which the average well yield, excluding domestic wells that supply water to a single-unit dwelling, is less than 100 gallons per minute. (c) "Groundwater extraction facility" means any device or method for the extraction of groundwater within a groundwater basin. (d) "Groundwater management plan" or "plan" means a document that describes the activities intended to be included in a groundwater management program. (e) "Groundwater management program" or "program" means a coordinated and ongoing activity undertaken for the benefit of a groundwater basin, or a portion of a groundwater basin, pursuant to a groundwater management plan adopted pursuant to this part. (f) "Groundwater recharge" means the augmentation of groundwater, by natural or artificial means, with surface water or recycled water. (g) "Local agency" means any local public agency that provides water service to all or a portion of its service area, and includes a joint powers authority formed by local public agencies that provide water service. (h) "Recharge area" means the area that supplies water to an aquifer in a groundwater basin and includes multiple wellhead protection areas. (i) "Watermaster" means a watermaster appointed by a court or pursuant to other provisions of law. (j) "Wellhead protection area" means the surface and subsurface area surrounding a water well or well field that supplies a public water system through which contaminants are reasonably likely to migrate toward the water well or well field. SEC. 3. Section 12273 of the Water Code is amended to read: 12273. This part shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2002, repeals or extends that date. SEC. 4. Section 12310 of the Water Code is amended to read: 12310. As used in this chapter, the following terms have the following meanings: (a) "Local public agency" means a reclamation district or levee district or other public agency responsible for the maintenance of a nonproject levee as defined in subdivision (e) of Section 12980 or a project levee as defined in subdivision (f) of Section 12980. (b) "Project" means the flood control improvement and any mitigation and habitat improvement constructed, or interests in land acquired, for those purposes pursuant to this part. (c) "Department" means the Department of Water Resources. (d) "Delta" means the Sacramento-San Joaquin Delta as described in Section 12220. (e) "Net long-term habitat improvement" means enhancement of riparian, fisheries, and wildlife habitat. (f) "CALFED Bay Delta Program" or "CALFED program" means the program established in May 1995 as a joint effort among state and federal agencies with management and regulatory responsibilities in the San Francisco Bay and Sacramento-San Joaquin River Delta to develop long-term solutions to resource management problems involving the bay-delta. SEC. 5. Section 13327 of the Water Code is amended to read: 13327. In determining the amount of civil liability, the regional board, and the state board upon review of any order pursuant to Section 13320, shall take into consideration the nature, circumstance, extent, and gravity of the violation or violations, whether the discharge is susceptible to cleanup or abatement, the degree of toxicity of the discharge, and, with respect to the violator, the ability to pay, the effect on ability to continue in business, any voluntary cleanup efforts undertaken, any prior history of violations, the degree of culpability, economic savings, if any, resulting from the violation, and other matters as justice may require. SEC. 6. Section 31483 of the Water Code is amended to read: 31483. (a) Notwithstanding any other provision of this division, the Contra Costa Water District may issue bonds in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5 of the Government Code) for the purpose of financing the acquisition of land and land rights and the construction, improvement, or acquisition of any facilities necessary or convenient for the storage, transmission, distribution, or treatment of water for beneficial use, except that Sections 54380 to 54388, inclusive, of the Government Code shall not apply to the issuance and sale of bonds pursuant to this section. (b) The board shall not proceed under this section until it has submitted to the qualified voters of the district at a special election called by a resolution of the board a proposition as to whether the district may authorize and sell revenue bonds under this section. The proposition shall set forth generally the proposed facilities to be financed and the costs thereof. If a majority of the voters of the district voting on the proposition at the election vote in favor of the proposition, the board may proceed to issue and sell revenue bonds as provided in this section. If the proposition fails to carry at the election, the proposition shall not again be voted upon until at least six months have elapsed since the date of the last election at which the proposition was submitted. (c) The resolution calling the election shall fix the date on which the election is to be held, the proposition to be submitted at the election, the manner of holding the election and of voting for or against the proposition, and shall state that in all other particulars the election shall be held and the votes canvassed as provided by law for the holding of elections within the district. The election may be held separately or may be consolidated with any other election authorized by law at which the voters of the district may vote. (d) Bonds issued pursuant to this section may be sold at one or more private or public sales as the board of directors of the Contra Costa Water District shall determine. (e) This section shall remain in effect only until January 1, 2003, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2003, deletes or extends that date. SEC. 7. Section 35470.5 of the Water Code is amended to read: 35470.5. The district may, by resolution, provide that a penalty not in excess of 10 percent shall be added to water, standby, facility, or other charges which are delinquent, and the delinquent charges shall bear interest at a rate not in excess of 11/2 percent per month. For purposes of this section, the district shall establish the period or date after which the charges shall become delinquent if they remain unpaid. The delinquency dates established in Part 7 (commencing with Section 36550) and Part 7.5 (commencing with Section 37200) for unpaid assessments, which may include standby or other charges for the use of district water that has been made a part of the assessment, shall not apply to the addition of penalties and interest to delinquent charges, pursuant to this section. SEC. 8. Section 39034 is added to the Water Code, to read: 39034. "Principal county" means the county in which the greater portion of the land of a district is located. SEC. 9. Section 39035 is added to the Water Code, to read: 39035. "Board of supervisors" means the board of supervisors of the principal county. SEC. 10. Section 41307 of the Water Code is amended to read: 41307. If, by the 59th day prior to the election, only one person has been nominated as provided in Section 41305 for any elective office to be filled at that election, or no one has been nominated for that office, the board, in its discretion and by resolution, may order that an election not be held for that office and request the board of supervisors to appoint to that office the person nominated or, where no one has been nominated for that office, to appoint to that office a person who the board of supervisors selects. Upon receipt of a request from the board, the board of supervisors shall make that appointment, and the person appointed shall qualify and take office and serve as if elected at a general election. SEC. 11. Section 46796 is added to the Water Code, to read: 46796. Any action or proceeding, based on the alleged invalidity or irregularity of a deed executed by the county treasurer to the district or based on the alleged ineffectiveness of the deed to convey the absolute title to the property described in it, may be commenced only within 180 days after the recordation of the deed. SEC. 12. Section 46797 is added to the Water Code, to read: 46797. An action or proceeding based on the alleged invalidity or irregularity of any agreement of sale, deed, lease, or option executed by a district in connection with land deeded to it by the county treasurer or based on the alleged ineffectiveness of the instrument to convey or affect the title to the land described in it may be commenced only within 180 days after the execution of the instrument by the district. SEC. 13. Section 71631.7 of the Water Code is amended to read: 71631.7. (a) Notwithstanding Section 71631, in any improvement district situated within the San Luis Rey Municipal Water District, the standby assessment or availability charge shall not exceed thirty dollars ($30) per acre per year for land on which the charge is levied or thirty dollars ($30) per year for a parcel less than one acre. In such an improvement district, the proceeds from any standby assessment or availability charge in excess of ten dollars ($10) per acre per year or ten dollars ($10) per year for a parcel less than one acre shall only be used for the purposes of that improvement district. (b) This section, applicable only to the San Luis Rey Municipal Water District, is necessary because of the unique and special water management problems of those areas included within that district. (c) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2005, deletes or extends that date. SEC. 14. Section 8.2 of the Sacramento County Water Agency Act (Chapter 10 of the Statutes of 1952, First Extraordinary Session) is amended to read: Sec. 8.2. The legal title to all property acquired under the provisions of this act shall immediately and by operation of law vest in the agency, and shall be held by the agency, in trust for, and is hereby dedicated and set apart to, the uses and purposes set forth in this act. The board of directors may hold, use, acquire, manage, occupy, and possess the property. The board of directors may determine, by resolution duly passed and entered in their minutes that any property, real or personal, held by the agency is no longer necessary to be retained for the uses and purposes thereof, and may thereafter sell or otherwise dispose of the property, or lease the property, in the manner provided by law for the disposition and sale of property of counties. SEC. 15. Section 54 of the Sacramento County Water Agency Act (Chapter 10 of the Statutes of 1952, First Extraordinary Session) is amended to read: Sec. 54. (a) If a groundwater management zone is formed pursuant to Section 33, the agency shall establish a water advisory commission consisting of seven members, two members being nominated and appointed by the board, one of whom represents agriculture, and five members being appointed by the board from nominations by water purveyors operating within the agency, as follows: (1) One member nominated by the water purveyors delivering more than 50 percent of their total water supply for agricultural uses. (2) One member nominated by public water utilities as defined in Section 216 of the Public Utilities Code. (3) One member nominated by incorporated cities. (4) One member nominated by water purveyors obtaining more than 50 percent of their water supply from groundwater and delivering more than 50 percent of their total water supply to municipal and industrial uses. (5) One member nominated by water purveyors obtaining more than 50 percent of their water supply from surface water and delivering more than 50 percent of their total water supply for municipal and industrial uses. (b) Terms of appointment of members of the commission are for four years. Three of the members shall be reappointed or replaced in January of odd-numbered years and four in even-numbered years, the time of reappointment or replacement to be selected by lot at the commission's initial meeting. Replacement of members in the event of a midterm vacancy shall be filled for the remainder of the unexpired term in the same manner as provided in subdivision (a) for the appointment of members. (c) Compensation of members shall be the same as for members of the Sacramento County Planning Commission. (d) The commission shall elect from its members a chairperson and a vice chairperson. A majority of the commission constitutes a quorum, and the commission shall adopt rules for its proceedings and set the time for its meetings. An affirmative vote of four members shall be required to constitute action of the commission. Meetings of the commission shall be conducted in accordance with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code). (e) Among other duties the board may confer on the commission, those duties shall include advising the board on water policy, water planning, and water development proposals, agency budget and expenditures, groundwater management programs, water rights, conducting initial public hearings on zone formation, hydrologic boundary determinations, groundwater recharge proposals, and other matters which may come before the commission. SEC. 16. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. SEC. 17. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to remedy critical water quality and supply problems, to make changes in the Sacramento County Water Agency Act, and to make other prescribed changes in statutes relating to water, as soon as possible, thereby protecting the public health and safety, it is necessary that this act take effect immediately.