BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 26
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          Date of Hearing:  June 25, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                     SB 26 (Correa) - As Amended:  June 17, 2014

           SENATE VOTE  :  Vote not relevant
           
          SUBJECT  :  Orange County Water District: land use.

           SUMMARY  :   Requires the Orange County Water District (OCWD), in  
          the development of property that OCWD owns that is within the  
          boundaries of a city, to give notice of its intent to that city,  
          and hold a public hearing in certain instances.  Specifically,  
           this bill  :   

          1)Clarifies, by adding to OCWD's Act, that provisions of  
            existing law related to the regulation of local agencies by  
            counties and cities shall apply to any property owned by OCWD.

          2)Requires OCWD to provide notice of intent to develop real  
            property owned by OCWD that is located within the boundaries  
            of a city, to the planning agency of that city, at least 30  
            days in advance of any action to approve the development by  
            OCWD's board.

          3)Requires, for the location or construction of a facility as  
            specified in Government Code 53091 (e) that is proposed to be  
            located in the boundaries of a city, that OCWD conduct at  
            least one public meeting in that city.

          4)Declares the intent of the Legislature that OCWD adopt a  
            policy to address the process for development of property  
            owned by the district that is located within the boundaries of  
            a city, with the following goals:

             a)   To clarify, by amending the OCWD's Act, that provisions  
               of existing law related to the regulation of local agencies  
               by counties and cities contained in the Government Code  
               apply to any property owned by OCWD; 

             b)   To foster greater collaboration between OCWD and a city  
               on the development of real property owned by OCWD located  
               within the boundaries of that city; and,









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             c)   To provide increased transparency to the community in  
               land use decisions with respect to the development of real  
               property owned by OCWD located within the boundaries of a  
               city.

          5)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 the unique parcels of land in the County of Orange  
            and the need to ensure that development of real property by  
            OCWD not subject to local planning and zoning ordinances is  
            open to public scrutiny.

          6)Provides that if the Commission on State Mandates determines  
            that this act contains costs mandated by the state, then  
            reimbursement to local agencies and school districts for those  
            costs shall be made, as specified.
           EXISTING LAW  :

          1)Creates OCWD and prescribes its powers and duties and  
            boundaries, consisting of specified lands in the County of  
            Orange, including the Cities of Anaheim, Fullerton, and Santa  
            Ana.

          2)Authorizes OCWD to perform actions useful or necessary to  
            replenish the underground water basin with the District, or to  
            augment and protect the quality of the common water supplies  
            of the District.

          3)Specifies, in OCWD's Act, that the legal title to all property  
            acquired under the provisions of this act shall immediately  
            and by operation of law vest in said district, and shall be  
            held by said district, in trust for, and is hereby dedicated  
            and set apart to, the uses and purposes set forth in this act.  
            The board of directors is hereby authorized and empowered to  
            hold, use, acquire, manage, occupy and possess said property,  
            as herein provided; and said board of directors may determine,  
            by resolution duly entered in their minutes that any property,  
            real or personal, held by said district is no longer necessary  
            to be retained for the uses and purposes thereof, and may  
            thereafter sell or otherwise dispose of said property.

          4)Provides, in existing law, for the regulation of local  
            agencies by cities and counties, as follows:









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             a)   Each local agency shall comply with all applicable  
               building ordinances and zoning ordinances of the county or  
               city in which the territory of the local agency is  
               situated.

             b)   Each local agency required to comply with building  
               ordinances and zoning ordinances and each school district  
               whose school buildings are inspected by a county or city  
               pursuant to existing law shall be subject to the applicable  
               ordinances of a county or city requiring the payment of  
               fees, but the amount of those fees charged to a local  
               agency or school district shall not exceed the amount  
               charged under the ordinance to nongovernmental agencies for  
               the same services or permits.

             c)   Building ordinances of a county or city shall not apply  
               to the location of construction of facilities for the  
               production, generation, storage, treatment, or transmission  
               of water, wastewater, or electrical energy by a local  
               agency.

             d)   Zoning ordinances of a county or city shall not apply to  
               the location or construction of facilities for the  
               production, generation, storage, treatment, or transmission  
               of water, or for the production or generation of electrical  
               energy, facilities that are subject to Section 12808.5 of  
               the Public Utilities Code, or electrical substations in an  
               electrical transmission system that receives electricity at  
               less than 100,000 volts.  Zoning ordinances of a county or  
               city shall apply to the location of construction of  
               facilities for the storage or transmission of electrical  
               energy by a local agency, if the zoning ordinances make  
               provision for those facilities.

          5)Defines, for purposes of 4), above, the term "local agency" to  
            mean "any agency of the state for the local performance of  
            governmental or proprietary function within limited  
            boundaries."  Provides that "local agency" does not include  
            the state, a city, a county, a rapid 


          transit district, or a rail transit district whose board of  
            directors is appointed by public bodies or officers or elected  
            from election districts within the area comprising the  
            district, or a district organized pursuant to Part 3 of  








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            Division 16 of the Streets and Highways Code.

          6)Defines, for purposes of 4), above, the term "building  
            ordinances" to mean ordinances of a county or city regulating  
            building and construction and removal of buildings, including  
            ordinances, as specified, and including ordinances relating to  
            building permits and building inspection.

          7)Allows the governing board of a local agency, by vote of  
            four-fifths of its members, to render a city or county zoning  
            ordinance inapplicable to a proposed use of property if the  
            local agency at a noticed public hearing determines by  
            resolution that there is no feasible alternative to its  
            proposal.  

          8)Provides that the governing board may not render a zoning  
            ordinance inapplicable to a proposed use of property when the  
            proposed use of the property by the local agency is for  
            facilities not related to storage or transmission of water or  
            electrical energy, including, but not limited to, warehouses,  
            administrative buildings or automotive storage and repair  
            buildings.

          9)Requires the governing board, within 10 days, to notify the  
            city or county, whose zoning ordinance has been rendered  
            inapplicable, of its action, and specifies, if the governing  
            board has taken this action, the city or county may commence  
            an action in the superior court of the county whose zoning  
            ordinance is involved or in which is situated the city whose  
            zoning ordinance is involved, seeking a review of the action  
            of the governing board to determine whether it was supported  
            by substantial evidence.

           FISCAL EFFECT  :  This bill is keyed fiscal. 

           COMMENTS  :   

           1)Background on OCWD  .  OCWD was formed in 1933 by the California  
            State Legislature's enactment of the Act to protect Orange  
            County's rights to water in the Santa Ana River.  OCWD's  
            primary responsibility is managing the vast groundwater basin  
            under northern and central Orange County that supplies water  
            to more than 20 cities and water agencies, serving more than  
            2.3 million Orange County residents.









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           2)Regulation of local agencies by cities and counties .  Existing  
            law addresses the regulation 
          of local agencies (including special districts) by counties and  
            cities, and in general, requires each local agency to comply  
            with all applicable building ordinances and zoning ordinances  
            of the county or city in which the territory of the local  
            agency is situated.  However, there are some exceptions to  
            this general policy.  Existing law specifies that "building  
            ordinances of a county or city shall not apply to the location  
            or construction of facilities for the production, generation,  
            storage, treatment, or transmission of water, wastewater, or  
            electrical energy by a local energy.  Existing law also says  
            that "zoning ordinances of a county or city shall not apply to  
            the location or construction of facilities for the production,  
            generation, storage, treatment, or transmission of water,  
            [certain specified facilities], or electrical substations in  
            an electrical transmission system that receives electricity at  
            less than 100,000 volts."

            This same section of law allows the governing board of a local  
            agency, by a four-fifths vote of its members, to render a city  
            or county zoning ordinance inapplicable to a proposed use 
            of property if the local agency, at a noticed public hearing,  
            determines by resolution that there is no feasible alternative  
            to its proposal.  However, the governing board may not render  
            a zoning ordinance inapplicable to a proposed use of property  
            when it is for facilities not related to storage or  
            transmission of water or electoral energy, including, but not  
            limited to, warehouses, administrative buildings or automotive  
            storage and repair buildings.

            If the governing board of a local agency renders a city or  
            county zoning ordinance applicable in this manner, the board  
            is required to notify the city or county within 10 days.  Once  
            the governing body has taken this action, the city or county  
            can commence an action in the superior court of the county  
            whose zoning ordinance is involved or in which is situated the  
            city whose zoning ordinance is involved, and seek a review of  
            the action of the governing board to determine whether it was  
            supported by substantial evidence.

            In general, this section of law means that if a special  
            district owns property within the boundaries of a city or  
            county, that that special district must comply with how the  
            city or county has that land or property zoned.  However, city  








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            zoning ordinances do not apply to the location or construction  
            of facilities related to energy production or generation, as  
            specified, or to the production, generation, storage,  
            treatment, or transmission of water, as specified. 

           3)Author's statement  .  According to the author, "Last year, the  
            OCWD sought to develop property in the City of Anaheim in a  
            way that was inconsistent with the City's planning ordinances.  
             The OCWD currently owns 20 acres of land near Ball Road and  
            the 57 Freeway, in an area called the Ball Road Basin.  OCWD  
            entered into a long-term lease agreement with a private power  
            firm for the potential development of a 300-600 megawatt  
            private power plant.

            "Despite significant opposition from the surrounding  
            community, business groups in the area, and state and local  
            leaders, OCWD moved forward with an expedited process to allow  
            development.  In response to this decision, the Cities of  
            Anaheim and Fullerton adopted Council Resolutions that called  
            on governmental agencies, such as OCWD, to fully comply with  
            the respective city's zoning and planning requirements.

            "Public input should be sought for all projects in order to  
            ensure that a proposal does not inflict negative consequences  
            on the community.  Without this public process, the  
            surrounding community may not have the recourse to address  
            their concerns about a proposed project.  SB 26 would ensure a  
            transparent process for OCWD proposals and allow surrounding  
            communities to have input on projects that will directly  
            affect them."

           4)Purpose of this bill .  This bill clarifies, by adding new  
            provisions to OCWD's Act, that OCWD must comply with existing  
            law related to the regulation of local agencies by cities and  
            counties, as mentioned above.  The bill also requires OCWD to  
            provide notice of intent to develop real property owned by  
            OCWD that is located within the boundaries of a city, to the  
            planning agency of that city, at least 30 days in advance of  
            any action to approve the development by OCWD's board.   
            Additionally the bill requires, for the location or 



          construction of a facility related to energy production or  
            generation, as specified, or to the 








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          production, generation, storage, treatment, or transmission of  
            water, as specified, that OCWD conduct at least one public  
            meeting in the city in which the facility is proposed to be  
            located.

            This bill is sponsored by the City of Anaheim.

           5)Arguments in support  .  The City of Anaheim argues that this  
            bill would improve the transparency of development decisions  
            made by OCWD.  
                
           6)Arguments in opposition  .  None on file.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          City of Anaheim [SPONSOR]
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958