BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 139
                                                                  Page  1

          Date of Hearing:  May 13, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                     AB 139 (Brownley) - As Amended:  May 7, 2009
           
          SUBJECT  :  Los Angeles County Flood Control District: fees.

           SUMMARY  :  Authorizes the Los Angeles County Flood Control  
          District (District) to impose a fee to pay the cost and expenses  
          of carrying out projects and providing services to improve water  
          quality and reduce stormwater and urban runoff in the District  
          and provides for a division of those fees collected between the  
          District and other jurisdictions within the boundaries of the  
          District.  Specifically,  this bill  :  

          1)Makes findings and declarations regarding the need for a local  
            fee, to be levied by the District, for the purposes of  
            implementing regional water quality control improvements. 

          2)Makes findings regarding how Los Angeles County includes six  
            major watersheds, significant amounts of coastline and  
            multiple lakes and rivers, and because the jurisdictions  
            within the county are subject to numerous total maximum daily  
            load (TMDL) requirements under the federal Clean Water Act, a  
            regional effort that is coordinated with and supportive of  
            individual cities' water quality efforts is clearly warranted.

          3)States that it is the intent of the Legislature that the Los  
            Angeles County (County)Board of Supervisors direct the  
            appropriate County staff, in consultation with the affected  
            cities within the boundaries of the District, to develop  
            criteria for the use of funds generated by any fee imposed by  
            the District, for the purposes of improving water quality and  
            reducing stormwater and urban runoff pollution.  

          4)Declares that the criteria should reflect the following  
            principles:

             a)   Ensuring that stormwater quality solutions funded by the  
               fee are science-based and take into consideration the  
               requirements of the federal Clean Water Act;

             b)   Promoting the collaborative work of all stakeholders  
               including cities, unincorporated communities, environmental  








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               groups, and other interested parties;

             c)   Promoting the use of stormwater as a potential resource;

             d)   Creating water quality improvement projects that provide  
               multiple benefits and incorporate green solutions;

             e)   Establishing a fee that reflects the differences between  
               residential, commercial, industrial, and other land uses;  
               parcel size; and proportionate share of stormwater run off;

             f)   Establishing an oversight committee comprised of  
               representatives from cities and unincorporated areas in the  
               county, and other interested stakeholders to provide  
               technical and programmatic review of the regional program;  
               and,

             g)   Ensuring that the District consult and collaborate with  
               watershed and sub-watershed committees to seek input on  
               proposed regional projects.  

          5)Authorizes the District to impose a fee, in compliance with  
            Proposition 218, to pay the costs and expenses of carrying out  
            projects and providing services to improve water quality and  
            reduce stormwater and urban runoff pollution in the District. 

          6)Requires that 65% of the revenues derived from the fee be  
            allocated to the District for administrative expenses and to  
            carry out projects and provide stormwater management services.  


          7)Requires that the remaining 35% of the revenues derived from  
            the fee be allocated to cities within the boundaries of the  
            District for expenditure within their respective  
            jurisdictions, and to the County for expenditure within its  
            unincorporated territory. 

          8)Requires that the 35% be calculated based on the amount of  
            fees collected within each jurisdiction. 

          9)Requires that the funds spent by the cities and unincorporated  
            areas of the County be used to carry out projects and provide  
            services related to stormwater management.

          10)Requires that each entity expending funds from the fee levied  








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            under the provisions of this measure ensure that the  
            expenditure is exclusively used for the authorized purposes. 

          11)Authorizes the District, cities, and the County to enter into  
            agreements with each other or with federal, state, and  
            regional agencies to carry out the provisions of this measure.  
              

           EXISTING LAW  : 

          1)Establishes the District to provide for the control and  
            conservation of flood, storm and other waste waters.

          2)Authorizes the District to levy taxes or assessments on all  
            taxable property within the District, after a vote of property  
            owners.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)Article XIIID of the California Constitution [Proposition 218]  
            distinguishes among taxes, assessments and fees for  
            property-related revenues, and requires certain actions before  
            such revenues may be collected.  Counties and other local  
            agencies with police powers may impose any one of these  
            options on property owners, after completing the Proposition  
            218 process.  Special districts created by statute, however,  
            must have specific authority for each of these revenue  
            sources.



          2)The District's authorizing statute (Los Angeles County Flood  
            Control Act, Chapter 755 of the Statutes of 1915) authorizes  
            the District to impose only taxes or assessments, not fees.   
            The District, which is governed by the Los Angeles County  
            Board of Supervisors, would like to have the same authority  
            for imposing fees as its governing County.  This bill expands  
            the District's authorization to add the levying of  
            property-related fees to its current authorization for levying  
            of taxes or assessments.

          3)The County of Los Angeles includes six major watersheds,  
            significant amounts of coastline and multiple lakes and  








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            rivers.  Consequently, the County and the 85 cities within the  
            District are subject to numerous TMLD requirements under the  
            federal Clean Water Act, which necessitate a regional approach  
            to TMDL mitigation that is coordinated with and supportive of  
            individual cities' water quality improvement efforts.  

          4)AB 139 authorizes the District to impose a property-related  
            fee on all properties within its boundaries if the fee is  
            approved by the voters.  AB 139 also specifies that 35% of all  
            fees collected in a city or unincorporated area are allocated  
            to those areas for expenditure on projects and programs to  
            reduce stormwater and urban runoff pollution.  The remaining  
            65% is given to the District to spend on administrative costs  
            and to carry out projects and programs to reduce stormwater  
            and urban runoff pollution.  

            Although there have been on going discussions at the local  
            level regarding how the fee should be divided up amongst all  
            of the jurisdictions within the boundaries of the District,  
            the current division of the fee listed in the bill is opposed  
            by many of the cities and councils of government (COGs) in Los  
            Angeles County.  Some of the opposition is asking that the fee  
            be split 50/ 50 between the city or unincorporated area and  
            the District.  Most cities are also asking that the fee be  
            distributed on a situs basis. Although the bill does state  
            that the fee will be distributed based on where it is  
            collected, this may need clarification to ensure that it is  
            done on a truly situs basis.  The opposition argues that  
            cities are under the same federal mandates to reduce  
            stormwater and urban runoff as the District, and should be  
            able to utilize some of the funding that will come from this  
            fee.  The Committee may wish to consider whether it is prudent  
            to pass a measure that is local in nature, to which there is  
            still severe opposition at the local level.  

          5)AB 139 also states that it is the intent of the Legislature  
            that the County Board of Supervisors direct the appropriate  
            County staff, in consultation with the affected cities within  
            the boundaries of the District, to develop criteria for the  
            use of funds generated by any fee imposed by the District, for  
            the purposes of improving water quality and reducing  
            stormwater and urban runoff pollution.  The Committee may wish  
            to consider requiring that prior to placing a fee before the  
            voters, the Districts and a majority of the cities must  
            approve a regional water quality and stormwater management  








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            plan on how the funds will be spent.  

           6)Proposed Committee Amendments  : Clarify that the funds  
            collected from this fee may also be used to maintain a  
            locality's National Pollutant Discharge Elimination System  
            (NPDES). 


           


          REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          County of Los Angeles [SPONSOR]
          Association of CA Water Agencies
          CA State Association of Counties
          Cities of Agoura Hills, Azusa, Calabasas, Culver City, and  
          Monrovia
          Los Angeles and San Gabriel Rivers Watershed Council
          Los Angeles Stormwater Quality Partnership

           Opposition 
           
          CA Contract Cities Association (unless amended)
          Cities of Bellflower, Cerritos, Downey, Lakewood, Los Angeles,  
          Montebello, Norwalk, Signal Hill, Vernon, and Whittier (unless  
          amended)
          Gateway Cities Council of Governments (GCCOG) (unless amended)
          Howard Jarvis Taxpayers Association
          Los Angeles Gateway Region IRWM Joint Powers Authority (unless  
          amended)
           

          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958