SB 634: Santa Clarita Valley Water Agency.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-10-15
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water Agency, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water Agency and would provide that the purpose of the agency is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the agencys territory. The bill would prescribe the composition of the board of directors of the agency.
Existing law authorizes the Castaic Lake Water Agency to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, for carrying out specified provisions. Existing law requires all contracts for any improvement or unit of work when the cost estimate exceeds $5,000 to be let to the lowest responsible bidder or bidders. Existing law authorizes the agency to have work done by force account without advertising for bids and to purchase in the open market materials and supplies when the estimated cost of the work or the cost of the materials and supplies does not exceed $5,000.
This bill would instead make these provisions applicable to the Santa Clarita Valley Water Agency and would increase these cost and cost estimate limits to $30,000.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the local agency formation commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the agency to submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the agency would be subject and which the commission deems appropriate under the act. The bill would require the agency to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the agency and a county in connection with the operation of the agency, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water Agency, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water Agency and would provide that the purpose of the agency is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the agencys territory. The bill would prescribe the composition of the board of directors of the agency.
Existing law authorizes the Castaic Lake Water Agency to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, for carrying out specified provisions. Existing law requires all contracts for any improvement or unit of work when the cost estimate exceeds $5,000 to be let to the lowest responsible bidder or bidders. Existing law authorizes the agency to have work done by force account without advertising for bids and to purchase in the open market materials and supplies when the estimated cost of the work or the cost of the materials and supplies does not exceed $5,000.
This bill would instead make these provisions applicable to the Santa Clarita Valley Water Agency and would increase these cost and cost estimate limits to $30,000.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the local agency formation commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the agency to submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the agency would be subject and which the commission deems appropriate under the act. The bill would require the agency to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the agency and a county in connection with the operation of the agency, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water Agency, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water Agency and would provide that the purpose of the agency is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the agencys territory. The bill would prescribe the composition of the board of directors of the agency.
Existing law authorizes the Castaic Lake Water Agency to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, for carrying out specified provisions. Existing law requires all contracts for any improvement or unit of work when the cost estimate exceeds $5,000 to be let to the lowest responsible bidder or bidders. Existing law authorizes the agency to have work done by force account without advertising for bids and to purchase in the open market materials and supplies when the estimated cost of the work or the cost of the materials and supplies does not exceed $5,000.
This bill would instead make these provisions applicable to the Santa Clarita Valley Water Agency and would increase these cost and cost estimate limits to $40,000. $30,000.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the local agency formation commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the agency to submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the agency would be subject and which the commission deems appropriate under the act. The bill would require the agency to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the agency and a county in connection with the operation of the agency, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, Agency, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District Agency and would provide that the purpose of the district agency is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts agencys territory. The bill would prescribe the composition of the board of directors of the district. agency.
Existing law authorizes the Castaic Lake Water Agency to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, for carrying out specified provisions. Existing law requires all contracts for any improvement or unit of work when the cost estimate exceeds $5,000 to be let to the lowest responsible bidder or bidders. Existing law authorizes the agency to have work done by force account without advertising for bids and to purchase in the open market materials and supplies when the estimated cost of the work or the cost of the materials and supplies does not exceed $5,000.
This bill would instead make these provisions applicable to the Santa Clarita Valley Water Agency and would increase these cost and cost estimate limits to $40,000.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the local agency formation commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district agency to submit an application for conditions addressing the creation of the district agency to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district agency would be subject and which the commission deems appropriate under the act. The bill would require the district agency to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the district agency and a county in connection with the operation of the district, agency, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the California Water Commission local agency formation commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district to submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district would be subject and which the commission deems appropriate under the act. The bill would require the district to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the California Water Commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district to submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district would be subject and which the commission deems appropriate under the act. The bill would require the district to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the California Water Commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district to submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district would be subject and which the commission deems appropriate under the act. The bill would require the district to reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district.
Existing law requires, for any proposal involving the dissolution of the Newhall County Water District, that the California Water Commission forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted for confirmation by the voters has been signed, as prescribed.
This bill would repeal that provision.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district to submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district would be subject and which the commission deems appropriate under the act.
By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the primary purpose of the district includes, but is not limited to, to acquire, hold, and utilize water and water rights, such as from the State Water Project, and is to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district. By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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, 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 the statutory provisions noted above.Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (act), provides the sole and exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.
This bill would require the district to submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles, as specified, and require the commission to prepare a written report, which may contain specific conditions to which the district would be subject and which the commission deems appropriate under the act.
By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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 specified reasons.
Existing law, the Castaic Lake Water Agency Law, created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation of county water districts and authorizes those districts to appropriate, acquire, and conserve water and water rights for any useful purpose and to operate water rights, works, properties, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and the Castaic Lake Water Agency into the Santa Clarita Valley Water District, which this bill would create, and prohibit the Castaic Lake Water Agency and the Newhall County Water District from operating as separate entities or exercising independent functions. The bill would generally specify the powers and purposes, as well as the boundaries, of the Santa Clarita Valley Water District and would provide that the primary purpose of the district includes, but is not limited to, to acquire, hold, and utilize water and water rights, such as from the State Water Project, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water at retail or wholesale within the districts territory. The bill would prescribe the composition of the board of directors of the district. By imposing duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program.
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, 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 the statutory provisions noted above.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water entity, including, but not limited to, economies of scale such that the new water entitys expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water entity, the Santa Clarita Valley Sanitation District, and the Los Angeles County Waterworks Districts to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, Valencia Water Company will be dissolved and integrated into the entity.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.Section 21530 of the Public Contract Code is amended to read:21530.The provisions of this article shall apply to contracts by the Santa Clarita Valley Water Agency.
SEC. 3.Section 21531 of the Public Contract Code is amended to read:21531.(a)The Santa Clarita Valley Water Agency shall have power to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, necessary or convenient for carrying out any of the purposes of this act or for the acquisition or disposal of any real or personal property; provided, that all contracts for any improvement or unit of work, when 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. The board shall advertise for bids by three insertions in a daily newspaper of general circulation published in the agency or by two insertions in a nondaily newspaper of general circulation published in the agency or, if no newspaper is published in the agency, in any newspaper of general circulation distributed in the agency, inviting sealed proposals for the construction or performance of the improvement or work. The call for bids shall state whether the work shall be performed in one unit or divided into parts. The work may be let under a single contract or several contracts, as stated in the call. The board shall require the successful 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 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. The board may reject any bid.
(b)In the event all proposals are rejected or no proposals are received, or the estimated cost of the work does not exceed thirty thousand dollars ($30,000), 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).
(c)The agency 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; provided, however, that materials and supplies for use in any new construction work or improvement, except work referred to in subdivision (b), may not be purchased if the cost exceeds thirty thousand dollars ($30,000), without advertising for bids and awarding the contract to the lowest responsible bidder.
SEC. 4.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 5.This section shall be known and may be cited as the Santa Clarita Valley Water Agency Act and reads as follows: SANTA CLARITA VALLEY WATER AGENCY ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water Agency Act.
Sec. 2.The Santa Clarita Valley Water Agency is hereby created, organized, and incorporated. The agency shall be managed as expressly provided in this act and the agency may exercise the powers in this act that are expressly granted or necessarily implied. The agency may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, agency means the Santa Clarita Valley Water Agency.
Sec. 2.5.The purpose of the agency is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the agency and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the agency shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Local Area Formation Commission for the County of Los Angeles in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water Agency and shall no longer operate as separate entities or exercise independent functions.
(b)The agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the agency.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the agency.
(e)If the agency establishes a contract with the Public Employees Retirement System, the agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of providing continuation of membership in the Public Employees Retirement System for agency employees, and shall succeed to the former agencies assets and liabilities for Public Employees Retirement System benefits, consistent with Section 20508 of the Government Code.
(f)The agency may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the agency.
(g)The agency shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the agency shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(h)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the agency that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the agency shall not be limited by this subdivision.
(i)The agency shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or annexation or consolidation into the agency. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the agency, may be annexed or consolidated into the agency following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the agency and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)The agency shall continue to supply water at wholesale to Valencia Water Company. No later than January 31, 2018, the agency, as the successor in interest to Castaic Lake Water Agency, shall take the appropriate steps together with the board of directors of Valencia Water Company to authorize the dissolution of Valencia Water Company and the transfer of the companys assets, property, liabilities, and indebtedness to the agency, consistent with the requirements of subdivision (k) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the agency may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the agency finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(k)If Valencia Water Company or any other retail water supplier is integrated into the agency, the indebtedness of the retail water supplier that exists immediately before the integration shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(l)The agency may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the agency as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the agency shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The agency is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding clockwise along the agencys border to the intersection of Highway 14 and the agencys southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding counter-clockwise along the agencys border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the agencys southern border; thence proceeding clockwise along the agencys border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the agencys water transmission system and is under contract with the agency for water.
Sec. 8.(a)The agency shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the agencys service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the agency, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the agency, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the agency resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the agency shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the agency. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire agency in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The agency acquires the purveyor or the purveyor is annexed or consolidated into the agency.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the agency or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the agency for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any agency election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the agency in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at agency elections, the county elections official is authorized, in any county in which the agency is located, to indicate upon the affidavit of registration whether the voter is a voter of the agency.
(b)In case the boundary line of the agency crosses the boundary line of a county election precinct, only those voters within the agency and within the precinct who are registered as being voters within the agency shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the agency, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the agency with the ballots upon which are printed the names of the candidates for office in the agency.
(c)In a county in which the agency is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water Agency, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water Agency as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the agency to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the agency, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the agency.
(3)For the retail division of the agency that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the agency shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new wholesale and retail water service rates and charges. The ratepayer advocate shall be selected by and report directly to the board of directors and shall be independent from agency staff. The ratepayer advocate shall advocate on behalf of customers within the agencys boundaries to the board of directors. The ratepayer advocate shall have access to all pertinent agency documents and information to independently advise the board of directors and inform the public. The board of directors shall develop and adopt any necessary rules and procedures to further define the role of the ratepayer advocate. The board of directors shall not eliminate the ratepayer advocate role before January 1, 2023. On and after January 1, 2023, the board of directors may eliminate the ratepayer advocate role with an affirmative vote of four-fifths of its membership.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the agency and the legal existence of the agency and all proceedings in respect to the incorporation and the legal existence of the agency shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the agency.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the agency has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The agency may exercise these powers throughout its territory.
(b)The agency may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 29 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The agency shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the agency.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the agency for use by the agency in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the agency, either inside or outside the agency, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the agency and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the agency, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the agency, the agency may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the agency of all production, distribution, and reclamation of water within the agency in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the agency in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the agency restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the agency a statutory franchise right and therefore the agency may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the agency, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the agency and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the agency may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The agency may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The agency may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the agency is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the agency.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the agency, the amount of those charges or fees may, in the discretion of the agency, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the agency are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the agency to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the agency from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the agency shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the agency coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The agency may contain lands situated in more than one county, and the agency may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.(a)On or before January 31, 2018, the agency shall submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the agency, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include Valencia Water Company, which will be integrated into the agency pursuant to subdivision (j) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the agency as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the agency in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the agency to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the agencys application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the agency that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The agency shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the agency.
Sec. 31.(a)As a pilot program, the agency is authorized to award contracts for recycled water program capital facilities construction projects over five hundred thousand dollars ($500,000) using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, the agency has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over five hundred thousand dollars ($500,000).
(b)The pilot community workforce agreement shall include provisions to encourage local participation in contracts from within the Santa Clarita Valley and surrounding communities to provide work opportunities within the local community workforce. The pilot community workforce agreement shall include provisions that support hiring opportunities for local military service veterans.
(c)The pilot community workforce agreement shall be for a term of five years, and may be renewed or modified for additional five-year terms upon approval of the board of directors. If the board approves the renewal or modification of the pilot community workforce agreement for additional terms, the board shall have the authority to award contracts in accordance with this section during any additional terms.
(d)The pilot community workforce agreement shall comply with Section 2500 of the Public Contract Code.
(e)Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the agency.
(f)For purposes of this section, the following definitions apply:
(1)Best value means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.
(2)Construction manager at-risk contract means a competitively procured contract awarded by the agency, to either the lowest responsible bidder or by using the best value method, to an individual, partnership, joint venture, corporation, or other recognized legal entity that satisfies all of the following conditions:
(A)Is appropriately licensed in this state, including, but not limited to, having a contractors license issued by the Contractors State License Board.
(B)Guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.
(C)Possesses or obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance, as may be required by the agency.
(3)Design-build contracting process means the process described in Chapter 4 (commencing with Section 22160) of Part 3 of Division 2 of the Public Contract Code, except that subdivision (c) of Section 22164 of the Public Contract Code shall not apply.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water entity, including, but not limited to, economies of scale such that the new water entitys expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water entity, the Santa Clarita Valley Sanitation District, and the Los Angeles County Waterworks Districts to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, Valencia Water Company will be dissolved and integrated into the entity.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.Section 21530 of the Public Contract Code is amended to read:21530.The provisions of this article shall apply to contracts by the Santa Clarita Valley Water Agency.
SEC. 3.Section 21531 of the Public Contract Code is amended to read:21531.(a)The Santa Clarita Valley Water Agency shall have power to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, necessary or convenient for carrying out any of the purposes of this act or for the acquisition or disposal of any real or personal property; provided, that all contracts for any improvement or unit of work, when 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. The board shall advertise for bids by three insertions in a daily newspaper of general circulation published in the agency or by two insertions in a nondaily newspaper of general circulation published in the agency or, if no newspaper is published in the agency, in any newspaper of general circulation distributed in the agency, inviting sealed proposals for the construction or performance of the improvement or work. The call for bids shall state whether the work shall be performed in one unit or divided into parts. The work may be let under a single contract or several contracts, as stated in the call. The board shall require the successful 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 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. The board may reject any bid.
(b)In the event all proposals are rejected or no proposals are received, or the estimated cost of the work does not exceed thirty thousand dollars ($30,000), 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).
(c)The agency 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; provided, however, that materials and supplies for use in any new construction work or improvement, except work referred to in subdivision (b), may not be purchased if the cost exceeds thirty thousand dollars ($30,000), without advertising for bids and awarding the contract to the lowest responsible bidder.
SEC. 4.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 5.This section shall be known and may be cited as the Santa Clarita Valley Water Agency Act and reads as follows: SANTA CLARITA VALLEY WATER AGENCY ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water Agency Act.
Sec. 2.The Santa Clarita Valley Water Agency is hereby created, organized, and incorporated. The agency shall be managed as expressly provided in this act and the agency may exercise the powers in this act that are expressly granted or necessarily implied. The agency may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, agency means the Santa Clarita Valley Water Agency.
Sec. 2.5.The purpose of the agency is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the agency and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the agency shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Local Area Formation Commission for the County of Los Angeles in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water Agency and shall no longer operate as separate entities or exercise independent functions.
(b)The agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the agency.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the agency.
(e)If the agency establishes a contract with the Public Employees Retirement System, the agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of providing continuation of membership in the Public Employees Retirement System for agency employees, and shall succeed to the former agencies assets and liabilities for Public Employees Retirement System benefits, consistent with Section 20508 of the Government Code.
(f)The agency may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the agency.
(g)The agency shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the agency shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(h)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the agency that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the agency shall not be limited by this subdivision.
(i)The agency shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or annexation or consolidation into the agency. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the agency, may be annexed or consolidated into the agency following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the agency and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)The agency shall continue to supply water at wholesale to Valencia Water Company. No later than January 31, 2018, the agency, as the successor in interest to Castaic Lake Water Agency, shall take the appropriate steps together with the board of directors of Valencia Water Company to authorize the dissolution of Valencia Water Company and the transfer of the companys assets, property, liabilities, and indebtedness to the agency, consistent with the requirements of subdivision (k) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the agency may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the agency finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(k)If Valencia Water Company or any other retail water supplier is integrated into the agency, the indebtedness of the retail water supplier that exists immediately before the integration shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(l)The agency may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the agency as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the agency shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The agency is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding clockwise along the agencys border to the intersection of Highway 14 and the agencys southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding counter-clockwise along the agencys border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the agencys southern border; thence proceeding clockwise along the agencys border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the agencys water transmission system and is under contract with the agency for water.
Sec. 8.(a)The agency shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the agencys service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the agency, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the agency, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the agency resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the agency shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the agency. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire agency in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The agency acquires the purveyor or the purveyor is annexed or consolidated into the agency.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the agency or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the agency for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any agency election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the agency in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at agency elections, the county elections official is authorized, in any county in which the agency is located, to indicate upon the affidavit of registration whether the voter is a voter of the agency.
(b)In case the boundary line of the agency crosses the boundary line of a county election precinct, only those voters within the agency and within the precinct who are registered as being voters within the agency shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the agency, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the agency with the ballots upon which are printed the names of the candidates for office in the agency.
(c)In a county in which the agency is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water Agency, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water Agency as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the agency to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the agency, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the agency.
(3)For the retail division of the agency that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the agency shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new wholesale and retail water service rates and charges. The ratepayer advocate shall be selected by and report directly to the board of directors and shall be independent from agency staff. The ratepayer advocate shall advocate on behalf of customers within the agencys boundaries to the board of directors. The ratepayer advocate shall have access to all pertinent agency documents and information to independently advise the board of directors and inform the public. The board of directors shall develop and adopt any necessary rules and procedures to further define the role of the ratepayer advocate. The board of directors shall not eliminate the ratepayer advocate role before January 1, 2023. On and after January 1, 2023, the board of directors may eliminate the ratepayer advocate role with an affirmative vote of four-fifths of its membership.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the agency and the legal existence of the agency and all proceedings in respect to the incorporation and the legal existence of the agency shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the agency.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the agency has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The agency may exercise these powers throughout its territory.
(b)The agency may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 29 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The agency shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the agency.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the agency for use by the agency in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the agency, either inside or outside the agency, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the agency and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the agency, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the agency, the agency may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the agency of all production, distribution, and reclamation of water within the agency in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the agency in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the agency restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the agency a statutory franchise right and therefore the agency may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the agency, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the agency and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the agency may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The agency may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The agency may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the agency is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the agency.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the agency, the amount of those charges or fees may, in the discretion of the agency, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the agency are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the agency to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the agency from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the agency shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the agency coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The agency may contain lands situated in more than one county, and the agency may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.(a)On or before January 31, 2018, the agency shall submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the agency, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include Valencia Water Company, which will be integrated into the agency pursuant to subdivision (j) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the agency as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the agency in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the agency to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the agencys application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the agency that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The agency shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the agency.
Sec. 31.(a)As a pilot program, the agency is authorized to award contracts for recycled water program capital facilities construction projects over five hundred thousand dollars ($500,000) using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, the agency has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over five hundred thousand dollars ($500,000).
(b)The pilot community workforce agreement shall include provisions to encourage local participation in contracts from within the Santa Clarita Valley and surrounding communities to provide work opportunities within the local community workforce. The pilot community workforce agreement shall include provisions that support hiring opportunities for local military service veterans.
(c)The pilot community workforce agreement shall be for a term of five years, and may be renewed or modified for additional five-year terms upon approval of the board of directors. If the board approves the renewal or modification of the pilot community workforce agreement for additional terms, the board shall have the authority to award contracts in accordance with this section during any additional terms.
(d)The pilot community workforce agreement shall comply with Section 2500 of the Public Contract Code.
(e)Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the agency.
(f)For purposes of this section, the following definitions apply:
(1)Best value means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.
(2)Construction manager at-risk contract means a competitively procured contract awarded by the agency, to either the lowest responsible bidder or by using the best value method, to an individual, partnership, joint venture, corporation, or other recognized legal entity that satisfies all of the following conditions:
(A)Is appropriately licensed in this state, including, but not limited to, having a contractors license issued by the Contractors State License Board.
(B)Guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.
(C)Possesses or obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance, as may be required by the agency.
(3)Design-build contracting process means the process described in Chapter 4 (commencing with Section 22160) of Part 3 of Division 2 of the Public Contract Code, except that subdivision (c) of Section 22164 of the Public Contract Code shall not apply.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water entity, including, but not limited to, economies of scale such that the new water entitys expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water entity, the Santa Clarita Valley Sanitation District, and the Los Angeles County Waterworks Districts to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, Valencia Water Company will be dissolved and integrated into the entity.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.Section 21530 of the Public Contract Code is amended to read:21530.The provisions of this article shall apply to contracts by the Santa Clarita Valley Water Agency.
SEC. 3.Section 21531 of the Public Contract Code is amended to read:21531.(a)The Santa Clarita Valley Water Agency shall have power to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, necessary or convenient for carrying out any of the purposes of this act or for the acquisition or disposal of any real or personal property; provided, that all contracts for any improvement or unit of work, when the cost according to the estimate of the engineer will exceed forty thirty thousand dollars ($40,000), ($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. The board shall advertise for bids by three insertions in a daily newspaper of general circulation published in the agency or by two insertions in a nondaily newspaper of general circulation published in the agency or, if no newspaper is published in the agency, in any newspaper of general circulation distributed in the agency, inviting sealed proposals for the construction or performance of the improvement or work. The call for bids shall state whether the work shall be performed in one unit or divided into parts. The work may be let under a single contract or several contracts, as stated in the call. The board shall require the successful 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 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. The board may reject any bid.
(b)In the event all proposals are rejected or no proposals are received, or the estimated cost of the work does not exceed forty thirty thousand dollars ($40,000), ($30,000), 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).
(c)The agency 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; provided, however, that materials and supplies for use in any new construction work or improvement, except work referred to in subdivision (b), may not be purchased if the cost exceeds forty thirty thousand dollars ($40,000), ($30,000), without advertising for bids and awarding the contract to the lowest responsible bidder.
SEC. 4.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 5.This section shall be known and may be cited as the Santa Clarita Valley Water Agency Act and reads as follows: SANTA CLARITA VALLEY WATER AGENCY ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water Agency Act.
Sec. 2.The Santa Clarita Valley Water Agency is hereby created, organized, and incorporated. The agency shall be managed as expressly provided in this act and the agency may exercise the powers in this act that are expressly granted or necessarily implied. The agency may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, agency means the Santa Clarita Valley Water Agency.
Sec. 2.5.The purpose of the agency is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the agency and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the agency shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Local Area Formation Commission for the County of Los Angeles in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water Agency and shall no longer operate as separate entities or exercise independent functions.
(b)The agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the agency.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the agency.
(e)If the agency establishes a contract with the Public Employees Retirement System, the agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of providing continuation of membership in the Public Employees Retirement System for agency employees, and shall succeed to the former agencies assets and liabilities for Public Employees Retirement System benefits, consistent with Section 20508 of the Government Code.
(f)The agency may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the agency.
(g)The agency shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the agency shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(h)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the agency that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the agency shall not be limited by this subdivision.
(i)The agency shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or annexation or consolidation into the agency. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the agency, may be annexed or consolidated into the agency following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the agency and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)The agency shall continue to supply water at wholesale to Valencia Water Company. No later than January 31, 2018, the agency, as the successor in interest to Castaic Lake Water Agency, shall take the appropriate steps together with the board of directors of Valencia Water Company to authorize the dissolution of Valencia Water Company and the transfer of the companys assets, property, liabilities, and indebtedness to the agency, consistent with the requirements of subdivision (k) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the agency may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the agency finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(k)If Valencia Water Company or any other retail water supplier is integrated into the agency, the indebtedness of the retail water supplier that exists immediately before the integration shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(l)The agency may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the agency as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the agency shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The agency is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding clockwise along the agencys border to the intersection of Highway 14 and the agencys southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the agencys eastern border; thence proceeding counter-clockwise along the agencys border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the agencys southern border; thence proceeding clockwise along the agencys border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the agencys water transmission system and is under contract with the agency for water.
Sec. 8.(a)The agency shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the agencys service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the agency, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the agency, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the agency resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the agency shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the agency. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire agency in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The agency acquires the purveyor or the purveyor is annexed or consolidated into the agency.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the agency or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the agency for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any agency election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the agency in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at agency elections, the county elections official is authorized, in any county in which the agency is located, to indicate upon the affidavit of registration whether the voter is a voter of the agency.
(b)In case the boundary line of the agency crosses the boundary line of a county election precinct, only those voters within the agency and within the precinct who are registered as being voters within the agency shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the agency, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the agency with the ballots upon which are printed the names of the candidates for office in the agency.
(c)In a county in which the agency is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water Agency, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water Agency as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the agency to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the agency, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the agency.
(3)For the retail division of the agency that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the agency shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new wholesale and retail water service rates and charges. The ratepayer advocate shall be selected by and report directly to the board of directors and shall be independent from agency staff. The ratepayer advocate shall advocate on behalf of customers within the agencys boundaries to the board of directors. The ratepayer advocate shall have access to all pertinent agency documents and information to independently advise the board of directors and inform the public. The board of directors shall develop and adopt any necessary rules and procedures to further define the role of the ratepayer advocate. The board of directors shall not eliminate the ratepayer advocate role before January 1, 2023. On and after January 1, 2023, the board of directors may eliminate the ratepayer advocate role with an affirmative vote of four-fifths of its membership.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the agency and the legal existence of the agency and all proceedings in respect to the incorporation and the legal existence of the agency shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the agency.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the agency has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The agency may exercise these powers throughout its territory.
(b)The agency may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 29 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The agency shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the agency.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the agency for use by the agency in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the agency, either inside or outside the agency, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the agency and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the agency, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the agency, the agency may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the agency of all production, distribution, and reclamation of water within the agency in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the agency in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the agency restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the agency a statutory franchise right and therefore the agency may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the agency, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the agency and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the agency may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The agency may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The agency may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the agency is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the agency.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the agency, the amount of those charges or fees may, in the discretion of the agency, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the agency are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the agency to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the agency from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the agency shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the agency coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The agency may contain lands situated in more than one county, and the agency may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.(a)On or before January 31, 2018, the agency shall submit an application for conditions addressing the creation of the agency to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the agency, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include Valencia Water Company, which will be integrated into the agency pursuant to subdivision (j) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the agency as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the agency in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the agency to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the agencys application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the agency that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The agency shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the agency.
Sec. 31.(a)As a pilot program, the agency is authorized to award contracts for recycled water program capital facilities construction projects over five hundred thousand dollars ($500,000) using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, the agency has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over five hundred thousand dollars ($500,000).
(b)The pilot community workforce agreement shall include provisions to encourage local participation in contracts from within the Santa Clarita Valley and surrounding communities to provide work opportunities within the local community workforce. The pilot community workforce agreement shall include provisions that support hiring opportunities for local military service veterans.
(c)The pilot community workforce agreement shall be for a term of five years, and may be renewed or modified for additional five-year terms upon approval of the board of directors. If the board approves the renewal or modification of the pilot community workforce agreement for additional terms, the board shall have the authority to award contracts in accordance with this section during any additional terms.
(d)The pilot community workforce agreement shall comply with Section 2500 of the Public Contract Code.
(e)Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the agency.
(f)For purposes of this section, the following definitions apply:
(1)Best value means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.
(2)Construction manager at-risk contract means a competitively procured contract awarded by the agency, to either the lowest responsible bidder or by using the best value method, to an individual, partnership, joint venture, corporation, or other recognized legal entity that satisfies all of the following conditions:
(A)Is appropriately licensed in this state, including, but not limited to, having a contractors license issued by the Contractors State License Board.
(B)Guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.
(C)Possesses or obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance, as may be required by the agency.
(3)Design-build contracting process means the process described in Chapter 4 (commencing with Section 22160) of Part 3 of Division 2 of the Public Contract Code, except that subdivision (c) of Section 22164 of the Public Contract Code shall not apply.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, entity, including, but not limited to, economies of scale such that the new water districts entitys expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water district, entity, the Santa Clarita Valley Sanitation District, and the Los Angeles County Waterworks Districts to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, Valencia Water Company will be dissolved and integrated into the district. entity.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.Section 21530 of the Public Contract Code is amended to read:21530.The provisions of this article shall apply to contracts by the Castaic Lake Water Agency, as provided for in Chapter 28 of the Statutes of the 1962 First Extraordinary Session. Santa Clarita Valley Water Agency.
SEC. 3.Section 21531 of the Public Contract Code is amended to read:21531.(a)The Castaic Lake Santa Clarita Valley Water Agency shall have power to prescribe methods for the construction of works and for the letting of contracts for the construction of works, structures, or equipment, or the performance or furnishing of labor, materials, or supplies, necessary or convenient for carrying out any of the purposes of this act or for the acquisition or disposal of any real or personal property; provided, that all contracts for any improvement or unit of work, when the cost according to the estimate of the engineer will exceed five forty thousand dollars ($5,000), ($40,000), 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. The board shall advertise for bids by three insertions in a daily newspaper of general circulation published in the agency or by two insertions in a nondaily newspaper of general circulation published in the agency or, if no newspaper is published in the agency, in any newspaper of general circulation distributed in the agency, inviting sealed proposals for the construction or performance of the improvement or work. The call for bids shall state whether the work shall be performed in one unit or divided into parts. The work may be let under a single contract or several contracts, as stated in the call. The board shall require the successful 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 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. The board may reject any bid.
(b)In the event all proposals are rejected or no proposals are received, or the estimated cost of the work does not exceed five forty thousand dollars ($5,000), ($40,000), 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).
(c)The agency 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; provided, however, that materials and supplies for use in any new construction work or improvement, except work referred to in subdivision (b), may not be purchased if the cost exceeds five forty thousand dollars ($5,000), ($40,000), without advertising for bids and awarding the contract to the lowest responsible bidder.
SEC. 2.SEC. 4.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 3.SEC. 5.This section shall be known and may be cited as the Santa Clarita Valley Water District Agency Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT AGENCY ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Agency Act.
Sec. 2.The Santa Clarita Valley Water District Agency is hereby created, organized, and incorporated. The district agency shall be managed as expressly provided in this act and the district agency may exercise the powers in this act that are expressly granted or necessarily implied. The district agency may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district agency means the Santa Clarita Valley Water District. Agency.
Sec. 2.5.The purpose of the district agency is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district agency and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the district agency shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Local Area Formation Commission for the County of Los Angeles in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District Agency and shall no longer operate as separate entities or exercise independent functions.
(b)The district agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district. agency.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district. agency.
(e)If the district agency establishes a contract with the Public Employees Retirement System, the district agency shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of providing continuation of membership in the Public Employees Retirement System for district agency employees, and shall succeed to the former agencies assets and liabilities for Public Employees Retirement System benefits, consistent with Section 20508 of the Government Code.
(f)The district agency may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district. agency.
(g)The district agency shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district agency shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(h)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district agency that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district agency shall not be limited by this subdivision.
(i)The district agency shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or annexation or consolidation into the district. agency. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the district, agency, may be annexed or consolidated into the district agency following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district agency and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)The district agency shall continue to supply water at wholesale to Valencia Water Company. No later than January 31, 2018, the district, agency, as the successor in interest to Castaic Lake Water Agency, shall take the appropriate steps together with the board of directors of Valencia Water Company to authorize the dissolution of Valencia Water Company and the transfer of the companys assets, property, liabilities, and indebtedness to the district, agency, consistent with the requirements of subdivision (k) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the district agency may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the district agency finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(k)If Valencia Water Company or any other retail water supplier is integrated into the district, agency, the indebtedness of the retail water supplier that exists immediately before the integration shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(l)The district agency may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the district agency as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the district agency shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The district agency is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts agencys eastern border; thence proceeding clockwise along the districts agencys border to the intersection of Highway 14 and the districts agencys southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts agencys eastern border; thence proceeding counter-clockwise along the districts agencys border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts agencys northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts agencys southern border; thence proceeding clockwise along the districts agencys border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts agencys water transmission system and is under contract with the district agency for water.
Sec. 8.(a)The district agency shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the districts agencys service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, agency, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, agency, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district agency resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district agency shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. agency. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district agency in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The district agency acquires the purveyor or the purveyor is annexed or consolidated into the district. agency.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district agency or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district agency for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district agency election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district agency in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district agency elections, the county elections official is authorized, in any county in which the district agency is located, to indicate upon the affidavit of registration whether the voter is a voter of a district. the agency.
(b)In case the boundary line of the district agency crosses the boundary line of a county election precinct, only those voters within the district agency and within the precinct who are registered as being voters within the district agency shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, agency, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district agency with the ballots upon which are printed the names of the candidates for office in the district. agency.
(c)In a county in which the district agency is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, Agency, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District Agency as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district agency to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, agency, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district. agency.
(3)For the retail division of the district agency that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the district agency shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new wholesale and retail water service rates and charges. The ratepayer advocate shall be selected by and report directly to the board of directors and shall be independent from district agency staff. The ratepayer advocate shall advocate on behalf of customers within the districts agencys boundaries to the board of directors. The ratepayer advocate shall have access to all pertinent district agency documents and information to independently advise the board of directors and inform the public. The board of directors shall develop and adopt any necessary rules and procedures to further define the role of the ratepayer advocate. The board of directors shall not eliminate the ratepayer advocate role before January 1, 2023. On and after January 1, 2023, the board of directors may eliminate the ratepayer advocate role with an affirmative vote of four-fifths of its membership.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district agency and the legal existence of the district agency and all proceedings in respect to the incorporation and the legal existence of the district agency shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district. agency.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the district agency has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district agency may exercise these powers throughout its territory.
(b)The district agency may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 29 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The district agency shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district. agency.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district agency for use by the district agency in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, agency, either inside or outside the district, agency, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district agency and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, agency, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, agency, the district agency may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the district agency of all production, distribution, and reclamation of water within the district agency in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district agency in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district agency restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district agency a statutory franchise right and therefore the district agency may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, agency, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district agency and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the district agency may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The district agency may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The district agency may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district agency is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district. agency.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, agency, the amount of those charges or fees may, in the discretion of the district, agency, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the district agency are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district agency to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district agency from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district agency shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district agency coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The district agency may contain lands situated in more than one county, and the district agency may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.(a)On or before January 31, 2018, the district agency shall submit an application for conditions addressing the creation of the district agency to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the district, agency, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include Valencia Water Company, which will be integrated into the district agency pursuant to subdivision (j) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district agency as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district agency in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district agency to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts agencys application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district agency that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The district agency shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the district. agency.
Sec. 31.(a)As a pilot program, the district agency is authorized to award contracts for recycled water program capital facilities construction projects over five hundred thousand dollars ($500,000) using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, the district agency has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over five hundred thousand dollars ($500,000).
(b)The pilot community workforce agreement shall include provisions to encourage local participation in contracts from within the Santa Clarita Valley and surrounding communities to provide work opportunities within the local community workforce. The pilot community workforce agreement shall include provisions that support hiring opportunities for local military service veterans.
(c)The pilot community workforce agreement shall be for a term of five years, and may be renewed or modified for additional five-year terms upon approval of the board of directors. If the board approves the renewal or modification of the pilot community workforce agreement for additional terms, the board shall have the authority to award contracts in accordance with this section during any additional terms.
(d)The pilot community workforce agreement shall comply with Section 2500 of the Public Contract Code.
(e)Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the district. agency.
(f)For purposes of this section, the following definitions apply:
(1)Best value means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.
(2)Construction manager at-risk contract means a competitively procured contract awarded by the district, agency, to either the lowest responsible bidder or by using the best value method, to an individual, partnership, joint venture, corporation, or other recognized legal entity that satisfies all of the following conditions:
(A)Is appropriately licensed in this state, including, but not limited to, having a contractors license issued by the Contractors State License Board.
(B)Guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.
(C)Possesses or obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance, as may be required by the district. agency.
(3)Design-build contracting process means the process described in Chapter 4 (commencing with Section 22160) of Part 3 of Division 2 of the Public Contract Code, except that subdivision (c) of Section 22164 of the Public Contract Code shall not apply.
SEC. 4.SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water district, the Santa Clarita Valley Sanitation District, and the County of Los Angeles Department of Water Works, Los Angeles County Waterworks Districts to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, the Valencia Water Company will be dissolved and incorporated integrated into the district.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 2.5.The purpose of the district is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the district shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Los Angeles Local Area Formation Commission for the County of Los Angeles in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)If the district establishes a contract with the Public Employees Retirement System, the district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of providing continuation of membership in the Public Employees Retirement System for district employees, and shall succeed to the former agencies assets and liabilities for Public Employees Retirement System benefits, consistent with Section 20508 of the Government Code.
(e)(f)The district may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)(g)The district shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)(h)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)(i)The district shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or incorporation annexation or consolidation into the district. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the district, may be incorporated annexed or consolidated into the district following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(i)(j)The district shall continue to supply water at wholesale to Valencia Water Company. No later than January 31, 2018, the district, as the successor in interest to Castaic Lake Water Agency, shall take the appropriate steps together with the board of directors of the Valencia Water Company to authorize the dissolution of the Valencia Water Company and the transfer of the companys assets, property, liabilities, and indebtedness to the district, consistent with the requirements of subdivision (j) (k) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the district may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the district finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)(k)If Valencia Water Company or any other retail water supplier is incorporated integrated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation integration shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(k)(l)The district may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the district as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the district shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The district is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right of way right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right of way right-of-way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The district acquires the purveyor or the purveyor is incorporated annexed or consolidated into the district.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which the district is located, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of the district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the district shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. wholesale and retail water service rates and charges. The ratepayer advocate shall be selected by and report directly to the board of directors and shall serve in an advisory capacity only. be independent from district staff. The ratepayer advocate shall advocate on behalf of customers within the districts boundaries to the board of directors. The ratepayer advocate shall have access to all pertinent district documents and information to independently advise the board of directors and inform the public. The board of directors shall develop and adopt any necessary rules and procedures to further define the role of the ratepayer advocate. The board of directors shall not eliminate the ratesetting process or ratepayer advocate developed pursuant to this subdivision without role before January 1, 2023. On and after January 1, 2023, the board of directors may eliminate the ratepayer advocate role with an affirmative vote of four-fifths of the membership of the board of directors. its membership.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district may exercise these powers throughout its territory.
(b)The district may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 30 29 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The district shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The district may contain lands situated in more than one county, and the district may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.(a)On or before January 31, 2018, the district shall submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the district, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include providing water at retail within the service area of Valencia Water Company after the company is Company, which will be integrated into the district as provided in pursuant to subdivision (i) (j) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The district shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the district.
Sec. 31.(a)As a pilot program, the district is authorized to award contracts for recycled water program capital facilities construction projects over five hundred thousand dollars ($500,000) using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, the district has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over five hundred thousand dollars ($500,000).
(b)The pilot community workforce agreement shall include provisions to encourage local participation in contracts from within the Santa Clarita Valley and surrounding communities to provide work opportunities within the local community workforce. The pilot community workforce agreement shall include provisions that support hiring opportunities for local military service veterans.
(c)The pilot community workforce agreement shall be for a term of five years, and may be renewed or modified for additional five-year terms upon approval of the board of directors. If the board approves the renewal or modification of the pilot community workforce agreement for additional terms, the board shall have the authority to award contracts in accordance with this section during any additional terms.
(d)The pilot community workforce agreement shall comply with Section 2500 of the Public Contract Code.
(e)Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the district.
(f)For purposes of this section, the following definitions apply:
(1)Best value means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.
(2)Construction manager at-risk contract means a competitively procured contract awarded by the district, to either the lowest responsible bidder or by using the best value method, to an individual, partnership, joint venture, corporation, or other recognized legal entity that satisfies all of the following conditions:
(A)Is appropriately licensed in this state, including, but not limited to, having a contractors license issued by the Contractors State License Board.
(B)Guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.
(C)Possesses or obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance, as may be required by the district.
(3)Design-build contracting process means the process described in Chapter 4 (commencing with Section 22160) of Part 3 of Division 2 of the Public Contract Code, except that subdivision (c) of Section 22164 of the Public Contract Code shall not apply.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water district, the Santa Clarita Valley Sanitation District, and the County of Los Angeles Department of Water Works, to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, the Valencia Water Company will be dissolved and incorporated into the district.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 2.5.The purpose of the district is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the district shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Los Angeles Local Area Formation Commission in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)The district may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)The district shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)The district shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or incorporation into the district. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the district, may be incorporated into the district following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(i)The district shall continue to supply water at wholesale to Valencia Water Company. If the Castaic Lake Water Agency is the owner of all of the stock of Valencia Water Company on December 31, 2017, the No later than January 31, 2018, the district, as the successor in interest to Castaic Lake Water Agency, shall be the owner of the stock of Valencia Water Company and shall take the appropriate steps together with the board of directors of the Valencia Water Company to dissolve authorize the dissolution of the Valencia Water Company and to the transfer of the companys assets, property, liabilities, and indebtedness to the district as soon as practicable, but no later than July 1, 2018, district, consistent with the requirements of subdivision (j) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the board of the district may postpone this deadline until no later than July 1, 2018, if, by resolution, the board of the district finds that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)If Valencia Water Company or any other retail water supplier is incorporated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(k)The district may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the district as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the district shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The district is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bakerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election, and at every election on that four-year election cycle thereafter.
(2)One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2023. The position of appointed director shall be eliminated and abolished before January 1, 2023, if any of the following conditions are met:
(1)The district acquires the purveyor or the purveyor is incorporated into the district.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which the district is located, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of the district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the district shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. The ratepayer advocate shall be selected by the board of directors and shall serve in an advisory capacity only. The board of directors shall develop and adopt any necessary rules and procedures to define the role of the ratepayer advocate. The board of directors shall not eliminate the ratesetting process or ratepayer advocate developed pursuant to this subdivision without an affirmative vote of four-fifths of the membership of the board of directors.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.(a)Except as otherwise provided in this act and in subdivision (b), the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district may exercise these powers throughout its territory.
(b)The district may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 30 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The district shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The district may contain lands situated in more than one county, and the district may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.No public corporation or public agency having the same identity of purpose or substantially the same identity of purpose as the district shall be formed partly or entirely within the district, whether by incorporation or annexation, without the consent of the board of directors of the district.Sec. 30.Sec. 29.(a)On or before January 31, 2018, the district shall submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles. The application shall include a copy of this act, a map and description of the boundaries of the district, and a plan for providing services that includes the information described in Section 56653 of the Government Code, as applicable. The plan for providing services shall include providing water at retail within the service area of Valencia Water Company after the company is integrated into the district as provided in subdivision (i) of Section 4. The application for conditions shall identify the functions or class of services that were being exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The district shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
Sec. 30.Nothing in this act shall affect the application of any local, state, or federal law to the development of property within the district.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
(m)A single entity would also facilitate greater cooperation between the new water district, the Santa Clarita Valley Sanitation District, and the County of Los Angeles Department of Water Works, to better manage all water resources, including stormwater, and promote stewardship of natural resources in the Santa Clarita Valley.
(n)It is the intent of the Legislature that, following the enactment of this act, the Valencia Water Company will be dissolved and incorporated into the district.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 2.5.The purpose of the district is to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district. district and to do so in a manner that promotes the sustainable stewardship of natural resources in the Santa Clarita Valley.
Sec. 3.For purposes of this act, the initial boundaries of the district shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Los Angeles Local Area Formation Commission in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)The district may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)The district shall be the successor in interest to the Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by the Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)The district shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, which, but shall not serve water at retail within the boundaries of that waterworks district without that waterworks districts consent or incorporation into the district. Los Angeles County Waterworks District No. 36, Val Verde, upon mutual agreement between it and the district, may be incorporated into the district following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on or after January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(i)The district shall continue to supply water at wholesale to Valencia Water Company. If the Castaic Lake Water Agency is the owner of all of the stock of Valencia Water Company on January 1, 2018, December 31, 2017, the district, as the successor in interest to Castaic Lake Water Agency, shall be the owner of the stock of Valencia Water Company and shall take the appropriate steps together with the board of directors of the Valencia Water Company to dissolve Valencia Water Company and to transfer the companys assets, property, liabilities, and indebtedness to the district as soon as practicable by practicable, but no later than July 1, 2018, consistent with the requirements of subdivision (j) and any other obligations of the parties. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)If Valencia Water Company or any other retail water supplier is incorporated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(k)The district may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economially economically beneficial for the operations of the district as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the district shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The district is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Bakerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Bakerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way right-of-way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western western, and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election. Commencing with the 2024 general election, and for at every election on that four-year election cycle thereafter, one director shall be elected from each electoral division. thereafter.
(2)Two directors One director elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2025. 2023. The position of appointed director shall be eliminated and abolished before January 1, 2025, 2023, if any of the following conditions are met:
(1)The district acquires the purveyor or the purveyor is incorporated into the district.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact that the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purpose purposes of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which the district is located, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of the district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the district shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. The ratepayer advocate shall be selected by the board of directors and shall serve in an advisory capacity only. The board of directors shall develop and adopt any necessary rules and procedures to define the role of the ratepayer advocate. The board of directors shall not eliminate the ratesetting process or ratepayer advocate developed pursuant to this subdivision without an affirmative vote of four-fifths of the membership of the board of directors.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.(a)Except as otherwise provided in this act, act and in subdivision (b), the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district may exercise these powers throughout its territory.
(b)The district may exercise any functions or class of services that are not certified by the Local Agency Formation Commission for the County of Los Angeles under subdivision (e) of Section 30 only pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles, as provided in that section.
Sec. 18.The district shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The district may contain lands situated in more than one county, and the district may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.No public corporation or public agency having the same identity of purpose or substantially the same identity of purpose as the district shall be formed partly or entirely within the district, whether by incorporation or annexation, without the consent of the board of directors of the district.
Sec. 30.(a)The On or before January 31, 2018, the district shall submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles on January 31, 2018. Angeles. The application shall include a copy of this act, a map and description of the boundaries of the district, and a plan for providing services that includes the information described in Section 56653 of the Government Code. Code, as applicable. The plan for services application for conditions shall identify the powers functions or class of services that were being authorized exercised by the Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the County Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the powers functions or class of services that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other powers functions or class of services that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Section 56824.10 Sections 56824.10 to 56824.14, inclusive, of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
(i)The district shall reimburse the Local Agency Formation Commission for the County of Los Angeles for all costs associated with the submittal, review, consideration, preparation, and determination associated with the application for conditions and the preparation of the written report.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division, which has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, formation and participation in a groundwater sustainability agency, and future recycled water expansion across the Santa Clarita Valley.
SEC. 1.5.Section 57114.5 of the Government Code is repealed.57114.5.(a)Notwithstanding subdivision (a) of Section 57077.1 and Sections 57077.4 and 57111, for any proposal involving the dissolution of the Newhall County Water District, the commission shall forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted to confirmation by the voters has been signed by either:(1)At least 10 percent of the number of voters entitled to vote as a result of residing within the district.(2)At least 10 percent of the number of landowners within the district who own at least 10 percent of the assessed value of land within the district.(b)If a petition that meets the requirements of this section has been submitted, the commission shall approve the proposal subject to confirmation by the voters of the district.SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010), is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 2.5.The purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district, and provide a means to unify and modernize water resource management within the Santa Clarita Valley. Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district.
Sec. 3.For purposes of this act, the initial boundaries of the district shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Los Angeles Local Area Formation Commission in its final written report pursuant to Section 30.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)The district may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)The district shall be the successor in interest to Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)The district shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, which, upon mutual agreement between it and the district, may be incorporated into the district following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(i)The district shall continue to supply water at wholesale to Valencia Water Company. If the Castaic Lake Water Agency is the owner of all of the stock of Valencia Water Company on January 1, 2018, the district, as the successor in interest to Castaic Lake Water Agency, shall be the owner of the stock of Valencia Water Company and shall take the appropriate steps together with the board of directors of the Valencia Water Company to dissolve Valencia Water Company and to transfer the companys assets, property, liabilities, and indebtedness to the district as soon as practicable by July 1, 2018, consistent with the requirements of subdivision (j) and any other obligations of the parties. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(j)If any other retail water supplier is incorporated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
(k)The district may treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economially beneficial for the operations of the district as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness shall continue to be allocated to that retail division and paid from that retail divisions rates and charges. When all such preexisting indebtedness has been retired, the district shall dispense with the retail divisions for all purposes as soon as feasible.
Sec. 5.The district is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election. Commencing with the 2024 general election, and for every election on that four-year election cycle thereafter, one director shall be elected from each electoral division.
(2)Two directors elected for each electoral division at the 2022 general election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2025. The position of appointed director shall be eliminated and abolished before January 1, 2025, if any of the following conditions are met:
(1)The district acquires the purveyor or the purveyor is incorporated into the district.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purpose of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which the district is located, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of the district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(b)On or before January 1, 2019, the district shall develop a ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. The ratepayer advocate shall be selected by the board of directors and shall serve in an advisory capacity only. The board of directors shall develop and adopt any necessary rules and procedures to define the role of the ratepayer advocate. The board of directors shall not eliminate the ratesetting process or ratepayer advocate developed pursuant to this subdivision without an affirmative vote of four-fifths of the membership of the board of directors.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.Except as otherwise provided in this act, the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district may exercise these powers throughout its territory.
Sec. 18.The district shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district.
(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(f)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(h)To contract with the purveyor or successor in interest to the purveyor.
(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 21.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 22.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 23 and 24.
Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 25.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 27.The district may contain lands situated in more than one county, and the district may annex lands situated in another county.
Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 29.No public corporation or public agency having the same identity of purpose or substantially the same identity of purpose as the district shall be formed partly or entirely within the district, whether by incorporation or annexation, without the consent of the board of directors of the district.
Sec. 30.(a)The district shall submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles on January 31, 2018. The application shall include a copy of this act, a map and description of the boundaries of the district, and a plan for providing services that includes the information described in Section 56653 of the Government Code. The plan for services shall identify the powers that were being authorized by Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the County Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the powers that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other powers that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Section 56824.10 of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division that Division, which has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Castaic Lake Water Agency is the owner of all of the outstanding stock of Valencia Water Company, which is a private company that provides retail water service in the valley to approximately 31,350 service connections.
(e)(f)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(f)(g)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(g)(h)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(h)(i)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity entity, and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(i)(j)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(j)(k)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(k)(l)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, and future recycled water expansion across the Santa Clarita Valley.
SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010) 2010), is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 2.5.The purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district, and provide a means to unify and modernize water resource management within the Santa Clarita Valley.
Sec. 3.For purposes of this act, the district includes all of the territory lying within the following described boundaries: initial boundaries of the district shall be the boundaries of the Castaic Lake Water Agency, as those boundaries existed on December 31, 2017, and as confirmed by the Los Angeles Local Area Formation Commission in its final written report pursuant to Section 30.
All that real property situated in the County of Los Angeles,State of California, more particularly described as follows:Beginning at the intersection of the northerly line of the Rancho San Francisco as per map recorded in Book 1, Pages 521 and 522 of Patents, Records of Los Angeles County, and the boundary line of the County of Los Angeles and County of Ventura, as shown on Record of Survey filed in Book 27, Pages 19 to 43, inclusive, of Record of Surveys, Records of Los Angeles County;Thence easterly along said northerly line of said Rancho San Francisco to an angle point therein and being S.F. No. 11 as shown on said Record of Survey;Thence continuing along said northerly line of the Rancho San Francisco northeasterly to the intersection with the south line of Section 15, Township 4 North, Range 17 West, San Bernardino Meridian;Thence westerly along said south line to the southwest corner of said Section 15;Thence in a general northerly direction along the westerly boundary of the land described in deed to the Newhall Land and Farming Company recorded May 10, 1963, as Instrument No. 2721 in Book D2024, Page 391 of Official Records, Records of Los Angeles County, to the most northerly northwest corner of the land described in said deed and being in the westerly line of said Section 15;Thence northerly along said westerly line to the west quarter corner of said Section 15;Thence westerly along the south line of the northeast quarter of Section 16 of said Township and Range to the southwest corner of said northeast quarter;Thence northerly along the westerly line of said northeast quarter to the north line of said Section 16;Thence westerly along the north line of said Section 16 to the southwest corner of Section 9 of said Township and Range;Thence northerly along the west line of said Section 9 to the northwest corner of the southwest quarter of the southwest quarter of said Section 9;Thence westerly along the quarter-quarter section lines to the northeast corner of the southwest quarter of the southeast quarter of Section 7 of said Township and Range;Thence northerly along the quarter-quarter section lines to the northwest corner of the southeast quarter of the northeast quarter of Section 6 of said Township and Range;Thence easterly along the quarter-quarter section lines to the southwest corner of Lot 3 in the northwest quarter of Section 5 of said Township and Range;Thence northerly along the west line of said Lot 3 to the northwest corner of said Lot 3;Thence easterly along the northerly line of said Section 5 to the southwest corner of the southeast quarter of Section 32, Township 5 North, Range 17 West, San Bernardino Meridian;Thence northerly along the quarter section lines of Sections 32 and 29 of last said Township and Range to the northwest corner of the south half of the northeast quarter of said Section 29;Thence easterly along the north line of said south half of the northeast quarter of Section 29 to the northeast corner of said south half;Thence northerly along the east line of the northeast quarter of said Section 29 to the northeast corner of said Section 29;Thence easterly along the southerly line of Section 21 of said Township and Range to the south quarter corner of said Section 21;Thence northerly along the west line of the southeast quarter of said Section 21 to the center of said Section 21;Thence easterly along the along the south line of the northeast quarter of said Section 21 to the southwest corner of the east half of the northeast quarter of said Section 21;Thence northerly along the westerly line of the east half of the northeast quarter of said Section 21 to the northwest corner of said east half;Thence westerly along the northerly line of said Section 21 to the most westerly corner of Government Lot 5 in Fractional Section 16 of said Township and Range;Thence northeasterly along the northwesterly lines of Government Lots 5, 4, and 3 all of said Fractional Section 16 to an angle point in the westerly line of said Government Lot 3;Thence northwesterly along the southwesterly lines of Government Lots 3, 2, and 1 of said Fractional Section 16 and continuing northwesterly along the southwesterly lines of Lots 6, 5, 4, 3, 2 and 1 of Fractional Section 9 of said Township and Range to the northerly line of said Fractional Section 9;Thence easterly along said northerly line to the south quarter corner of Section 4 of said Township and Range;Thence northerly along the north-south center section line of said Section 4 to the north quarter corner of said Section 4;Thence easterly along said north line to the southeast corner of Section 34, Township 6 North, Range 17 West, San Bernardino Meridian;Thence northerly along the east line of said Section 34 to the northeast corner of said Section 34;Thence westerly along the northerly line of said Section 34 to the northwest corner of said Section 34;Thence northerly along the west line of the southwest quarter of Section 27 of said Township and Range to the northwest corner of said southwest quarter;Thence westerly along the southerly line of the northeast quarter of Section 28 of said Township and Range, to the northeast corner of the west half of the east half of the southeast quarter of said Section 28;Thence southerly and westerly along the easterly and southerly lines of said west half of the east half of the southeast quarter of said Section 28 to the southwest corner of said west half;Thence southerly and westerly along the easterly and southerly lines of the northwest quarter of the northeast quarter of Section 33 of said Township and Range, to the northeast corner of the northwest quarter of the southwest quarter of the northeast quarter of said Section 33;Thence southerly, westerly, and northerly along the easterly, southerly, and westerly lines of last said northwest quarter of the southwest quarter of the northeast quarter to the northwest corner thereof;Thence northerly and easterly along the westerly and northerly lines of the northwest quarter of the northeast quarter of said Section 33 to the southwest corner of the east half of the southwest quarter of the southeast quarter of said Section 28;Thence northerly and easterly along the westerly and northerly lines of last said east half to the northeast corner thereof;Thence northerly along the westerly line of the northeast quarter of the southeast quarter of said Section 28 to the northwest corner thereof;Thence northerly and easterly along the westerly and northerly lines of the south half of the southeast quarter of the northeast quarter of said Section 28 to the southwest corner of the northeast quarter of the southeast quarter of the northeast quarter of said Section 28;Thence northerly along the westerly line of the northeast quarter of the southeast quarter of the northeast quarter to the northwest corner thereof;Thence northerly and easterly along the westerly and northerly lines of the southeast quarter of the northeast quarter of the northeast quarter of said Section 28 to the northeast corner of the southeast quarter of the northeast quarter of the northeast quarter of said Section 28;Thence northerly along the easterly line of said Section 28 to the northeast corner of said Section 28;Thence northerly along the easterly lines of Sections 22 and 15 of said Township and Range, to the northwest corner of the southwest quarter of said Section 15;Thence easterly along the east-west centerline of said Section 15 to the east quarter corner of said Section 15;Thence southerly along the easterly line of said Section 15 to the southeast corner of said Section 15;Thence southerly along the westerly line of Section 23 of said Township and Range to the west quarter corner of said Section 23;Thence easterly along the northerly line of the southwest quarter of said Section 23 to the northeast corner of the west half of the northwest quarter of the southwest quarter of said Section 23;Thence southerly along the easterly line of said west half of the northwest quarter of the southwest quarter to the southeast corner of said west half;Thence easterly along the northerly line of the southwest quarter of the southwest quarter of said Section 23 to the northeast corner of said southwest quarter of the southwest quarter of Section 23;Thence southerly along the easterly line of said southwest quarter of the southwest quarter of Section 23 to the northwest corner of the southwest quarter of the southeast quarter of the southwest quarter of said Section 23;Thence easterly and southerly along the northerly and easterly lines of said southwest quarter of the southeast quarter of the southwest quarter of Section 23 to the southeast corner of said southwest quarter of the southeast quarter of the southwest quarter of Section 23;Thence easterly along the southerly line of said Section 23 to the southeast corner of said Section 23;Thence southerly along the westerly line of the northwest quarter of Section 25 of said Township and Range, to the southwest corner of said northwest quarter of Section 25;Thence easterly along the northerly line of the southwest quarter of said Section 25 to the northeast corner of said southwest quarter of Section 25;Thence southerly and easterly along the westerly and southerly lines of the northwest quarter of the southeast quarter of said Section 25 to the southeast corner of said northwest quarter of the southeast quarter of Section 25;Thence southerly along the easterly line of the southwest quarter of the southeast quarter of said Section 25 to the southeast corner of said southwest quarter of the southeast quarter of Section 25;Thence along the southerly line of the southeast quarter of said Section 25 to the southeast corner of said Section 25;Thence easterly along the northerly line of Section 31 of said Township and Range, to the northeast corner of said Section 31;Thence southerly along the easterly line of said Section 31 to the northwest corner of Section 6, Township 5 North, Range 16 West, San Bernardino Meridian;Thence easterly along the northerly line of said Section 6 to the northeast corner of said Section 6;Thence northerly along the northerly prolongation of the east line of said Section 6 to a point in the easterly prolongation of the north line of said Section 31, Township 6 North, Range 17 West, San Bernardino Meridian;Thence easterly along last said easterly prolongation of the north line of Section 31 to a point in the northerly prolongation of the east line of Section 4, Township 5 North, Range 16 West, San Bernardino Meridian;Thence southerly along last said northerly prolongation of the east line of Section 4 to the northwest corner of said Section 4;Thence westerly along the northerly line of said Section 4 to the north quarter corner of said Section 4;Thence southerly along the north-south centerline of said Section 4 to the south quarter corner of said Section 4;Thence southerly along the east line of the northwest quarter of Section 9 of said Township and Range, to the southeast corner of said northwest quarter of Section 9;Thence westerly along the southerly line of said northwest quarter of Section 9 to the southwest corner of said northwest quarter of Section 9;Thence southerly along the east line of the southeast quarter of Section 8 of said Township and Range, to the southeast corner of said southeast quarter of Section 8;Thence southerly along the easterly line of the northeast quarter of Section 17 of said Township and Range, to the southeast corner of said northeast quarter of Section 17;Thence westerly along the southerly line of said northeast quarter of Section 17 to the southwest corner of said northeast quarter of said Section 17;Thence westerly along the southerly line of the northwest quarter of said Section 17 to the southwest corner of said northwest quarter of Section 17;Thence southerly along the easterly line of the southeast quarter of Section 18 of said Township and Range, to the southeast corner of said southeast quarter of Section 18;Thence southerly along the easterly line of the northeast quarter of Section 19 of said Township and Range, to the southeast corner of said northeast quarter of Section 19;Thence westerly along the southerly line of said northeast quarter of Section 19 to the southwest corner of said northeast quarter of Section 19;Thence southerly along the easterly line of the southwest quarter of said Section 19 to the southeast corner of said southwest quarter of Section 19;Thence southerly along the easterly line of the northwest quarter of Section 30 of said Township and Range, to the southeast corner of said northwest quarter of Section 30;Thence westerly along the southerly line of said northwest quarter of Section 30 to the northwest corner of the northeast quarter of the southwest quarter of said Section 30;Thence southerly along the westerly line of said northeast quarter of the southwest quarter to the southwest corner of said northeast quarter of the southwest quarter of Section 30;Thence southerly along the westerly line of the southeast quarter of the southwest quarter of said Section 30 to the southwest corner of said southeast quarter of the southwest quarter of Section 30;Thence easterly along the northerly lines of Sections 31, 32, 33, 34, 35, and 36 of Township 5 North, Range 16 West, San Bernardino Meridian and Sections 31 and 32 of Township 5 North, Range 15 West, San Bernardino Meridian, to the northeast corner of the northwest quarter of said Section 32, Township 5 North, Range 15 West, San Bernardino Meridian;Thence northerly to the northwest corner of the southeast quarter of Section 29, Township 5 North, Range 15 West, San Bernardino Meridian;Thence easterly to the northeast corner of said southeast quarter of Section 29;Thence northerly to the northeast corner of said Section 29;Thence easterly along the northerly lines of Sections 28 and 27, said Township and Range, to the northwest corner of the northeast quarter of said Section 27;Thence southerly to the southwest corner of the southeast quarter of said Section 27;Thence easterly along the southerly lines of Sections 27, 26, and 25 of said Township and Range, and easterly along the northerly line of Section 31, Township 5 North, Range 14 West, San Bernardino Meridian, to the northeast corner of the northwest quarter of the northeast quarter of said Section 31;Thence southerly to the southeast corner of the southwest quarter of the southeast quarter of said Section 31;Thence easterly to the north quarter corner of Section 5, Township 4 North, Range 14 West, San Bernardino Meridian;Thence southerly to the south quarter corner of said Section 5;Thence easterly along the northerly lines of Sections 8 and 9 of said Township and Range, to the north quarter corner of said Section 9;Thence southerly along the north-south quarter section lines of said Section 9 and Section 16 of said Township and Range, to the center of said Section 16;Thence westerly along the east-west quarter section lines of said Section 16 and Section 17 of said Township and Range, to the west quarter corner of said Section 17;Thence southerly to the southeast corner of Section 18 of said Township and Range;Thence westerly to the north quarter corner of Section 19 of said Township and Range;Thence southerly along the north-south quarter section lines to the south quarter corner of said Section 19;Thence westerly to the northeast corner of Section 25, Township 4 North, Range 15 West, San Bernardino Meridian;Thence southerly along the easterly lines of said Section 25 and along the easterly lines of Section 36 of said Township and Range, and along the easterly lines of Section 1, Township 3 North, Range 15 West, San Bernardino Meridian, to the southeast corner of said Section 1;Thence westerly along the southerly lines of said Section 1 and along the southerly lines of Sections 2, 3, 4, and 5 of said Township and Range, to the southeast corner of Section 6 of said Township and Range;Thence southerly along the easterly lines of Sections 7 and 18 of said Township and Range, to the southeast corner of said Section 18;Thence westerly along the southerly lines of said Section 18 to the southwest corner of said Section 18;Thence southwesterly to the most northerly corner of the boundary of the City of Los Angeles;Thence southwesterly along said City boundary to its westerly intersection of the southerly line of the north half of the north half of said Section 24;Thence westerly to the southwest corner of the northwest quarter of the northwest quarter of said Section 24;Thence northerly to the northwest corner of said Section 24;Thence westerly to the south quarter corner of Section 14, Township 3 North, Range 16 West, San Bernardino Meridian;Thence northerly to the northeast corner of the southeast quarter of the southwest quarter of said Section 14;Thence westerly to the northwest corner of the southwest quarter of the southwest quarter of said Section 14;Thence northerly to the west quarter corner of said Section 14;Thence westerly to the northwest corner of the northeast quarter of the southeast quarter of Section 15 of said Township and Range;Thence southerly to the southeast corner of the northwest quarter of the southeast quarter of said Section 15;Thence westerly to the northwest corner of the southwest quarter of the southeast quarter of said Section 15;Thence southerly to the south quarter corner of said Section 15;Thence westerly to the southwest corner of the southeast quarter of the southwest quarter of said Section 15;Thence northerly to the northwest corner of the northeast quarter of the northwest quarter of said Section 15;Thence westerly along the northerly line of said Section 15 and along the northerly lines of Section 16 of said Township and Range, to the northwest corner of said Section 16;Thence northerly to the northeast corner of Section 8 of said Township and Range;Thence westerly along the southerly lines of Sections 5 and 6 of said Township and Range, to the southwest corner of the southeast quarter of the southeast quarter of said Section 6;Thence northerly to the northwest corner of the northeast quarter of the southeast quarter of said Section 6;Thence westerly to the southeast corner of the southwest quarter of the northwest quarter of said Section 6;Thence northerly along projected section lines through said Rancho San Francisco to the southeast corner of the northwest quarter of the northwest quarter of Section 31, Township 4 North, Range 15 West, San Bernardino Meridian;Thence easterly to the southwest corner of the northeast quarter of the northeast quarter of said Section 31;Thence northerly to the northwest corner of the northeast quarter of the northeast quarter of said Section 31;Thence easterly to the northeast corner of said Section 31;Thence northerly along the easterly line of Section 30 of said Township and Range, to the southerly corner of Lot 14 as shown on the map filed in Book 25, Page 9 of Record of Surveys, Records of Los Angeles County;Thence northwesterly, southwesterly and southerly along the northeasterly, northwesterly, and westerly boundary lines of that certain parcel of land known as the Pico Project No. 1 as shown in the map filed in Book 27, Pages 19, 20, and 39 of Record of Surveys, Records of Los Angeles County, to the southeast corner of Parcel 11 as shown on the map filed in Book 27, Page 20 of said Record of Surveys;Thence westerly along the south line of said last mentioned Parcel 11 to the northeast corner of Parcel 12 as shown on the map filed in Book 27, Page 21 of said Record of Surveys;Thence southerly along the easterly line of last mentioned Parcel 12 and along the most easterly line of Parcel 13 as shown on last mentioned Record of Survey to the southeasterly corner of said Parcel 13;Thence westerly along the southerly line of said Parcel 13 to the westerly corner thereof;Thence northwesterly along the southwesterly line of Parcel 15, as shown on last mentioned Record of Survey, 603.95 feet to said boundary line of the County of Los Angeles;Thence northwesterly along said boundary line to the east-west centerline of projected Section 9, Township 3 North, Range 17 West, San Bernardino Meridian, said centerline being North 21 57 West 2764 (plus or minus) feet along said county line from the southwesterly line of the land described in the deed to the Newhall Land and Farming Company recorded June 21, 1910 in Book 127, Page 104 of Deeds, Records of Ventura County;Thence westerly, leaving said county line along said centerline of projected Section 9 and projected Section 8, Township 3 North, Range 17 West, San Bernardino Meridian, to said southwesterly line of Newhall;Thence northwesterly along said southwesterly line North 54 28 West to the southeasterly line of Tract N in Rancho Simi, per map recorded in Book 3, Page 7 of Maps, Records of Ventura County;Thence southwesterly along the southeasterly line of said Tract N South 70 26 West to the east-west centerline of said Section 8;Thence westerly along said centerline to the west line of said Section 8;Thence southerly along the west line to the southerly line of said Tract N;Thence South 70 26 West and west along the southerly line of said Tract N to the southwest corner of projected Section 12, Township 3 North, Range 18 West, San Bernardino Meridian;Thence north and leaving the southerly line of said Tract N to the northwest corner of said Section 12, being the southeast corner of projected Section 2, Township 3 North, Range 18 West, San Bernardino Meridian;Thence west along the south line of said Section 2 to the southwest corner of said Section 2;Thence north along the west line of said Section 2 to the southerly line of said Rancho San Francisco;Thence westerly along the said Rancho San Francisco to a three inch pipe marked N, set at the southerly terminus of the westerly line of the parcel marked the Newhall Land and Farming Company on Licensed Surveyors Map filed in Book 3, Page 74 of Record of Surveys, Records of Ventura County;Thence northerly along said westerly line North 0 13 33 East 11,446.56 feet to the southerly line of the Southern Pacific Railroad Company (Saugus branch) Right of Way, 100 feet wide;Thence in a general easterly and northeasterly direction along the southerly and southeasterly line of said Southern Pacific Railroad Company Right of Way, to the intersection with the third course, recited as South 28 08 East 1,089.96 feet in deed to J.S. Sharp recorded March 26, 1921, in Book 180, Page 101 of Deeds, Records of Ventura County;Thence along the boundary of said deed the following three courses, South 28 08 East 989.96 feet to the southerly terminus of said third course;Thence North 43 58 East 247.20 feet to an angle point;Thence North 26 04 East 1638.3 feet to the northerly line of said Southern Pacific Railroad Company Right of Way;Thence in a general easterly and southeasterly direction along the northerly and northeasterly line of said Southern Pacific Railroad Company Right of Way to a one inch iron pipe set at the most southerly corner of the land described in deed to George B. Larinan recorded February 8, 1957, in Book 141, Page 238 of Official Records, Records of Ventura County;Thence along the boundary of last mentioned deed the following six courses, North 27 44 East 239.74 feet to a one and one-half inch iron pipe set at an angle point;Thence North 3 40 West 686.99 feet to a one and one-half inch iron pipe set at an angle point;Thence North 9 07 40 West 812.92 feet to a one and one-half inch iron pipe set at an angle point;Thence North 57 03 20 East 752.49 feet to a one inch iron pipe set at an angle point;Thence North 60 28 45 East 2567.91 feet to a one inch iron pipe set at an angle point;Thence North 18 45 20 East 1554.65 feet to a two inch iron pipe set on the northerly line of said Rancho San Francisco at the most easterly corner of said land of George B. Larinan;Thence easterly along said northerly line North 87 13 50 East 3097.6 feet, more or less, to the point of beginning.Except therefrom the west half of the west half of the northeast quarter of Fractional Section 15, Township 4 North, Range 17 West, San Bernardino Meridian.Also except therefrom the southeast quarter of the southeast quarter of Section 10, Township 4 North, Range 17 West, San Bernardino Meridian.Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds and notes. described in Section 53350 of the Government Code.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)The district shall may continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)The district shall be the successor in interest to Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)The district shall continue to supply water at wholesale to Los Angeles County Waterworks District No. 36, Val Verde, which, upon mutual agreement between it and the district, may be incorporated into the district following appropriate procedures under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). Any proposed future change of organization or reorganization involving the district and the Los Angeles County Waterworks District No. 36, Val Verde, or any other public agency under the Local Agency Formation Commission for the County of Los Angeles on January 1, 2018, shall be subject to the filing with the Local Agency Formation Commission for the County of Los Angeles and shall be subject to review, consideration, and determination by the Local Agency Formation Commission for the County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(i)The district shall continue to supply water at wholesale to Valencia Water Company. If the Castaic Lake Water Agency is the owner of all of the stock of Valencia Water Company on January 1, 2018, the district, as the successor in interest to Castaic Lake Water Agency, shall be the owner of the stock of Valencia Water Company and shall take the appropriate steps together with the board of directors of the Valencia Water Company to dissolve Valencia Water Company and to transfer the companys assets, property, liabilities, and indebtedness to the district as soon as practicable by July 1, 2018, consistent with the requirements of subdivision (j) and any other obligations of the parties. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(h)(j)If any other retail water supplier is incorporated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
Sec. 5.The district is divided into three electoral divisions as follows:
(a)The first electoral division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third electoral division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the electoral division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, Val Verde, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident or owner of real property within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the electoral division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The initial terms of directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the electoral division in which the vacancy occurs will have less than four members representing the electoral division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each electoral division as follows:
(1)Two directors elected for each electoral division at the 2020 general election. Commencing with the 2024 general election, and for every election on that four-year election cycle thereafter, one director shall be elected from each electoral division.
(2)Two directors elected for each electoral division at the 2022 general election. election and at every election on that four-year election cycle thereafter.
(c)Each elected director shall have his or her primary residence in and be an elector in the electoral division he or she represents. Each elected director shall serve a four year four-year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)The board may, after January 1, 2023, by resolution reduce the number of elected directors from 12 to nine, comprised of three members for each division in accordance with Section 14.(e)(d)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(f)(e)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors electoral division where elected from a an electoral division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors electoral division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding anything to the contrary in this act, the position of appointed director shall be eliminated and abolished effective January 1, 2025. The position of appointed director shall be eliminated and abolished before January 1, 2025, if any of the following conditions are met:
(1)The district acquires the purveyor or the purveyor is incorporated into the district.
(2)The Board of Supervisors of the County of Los Angeles by an affirmative vote of a majority of its membership eliminates the appointed director position.
(d)(e)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purpose of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the electoral division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which there is a district, the district is located, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of a the district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the division ) Vote for One, and beneath which shall appear the names of the candidates for the office of member of the board for the division of the district, with the appropriate blank space for the writing in of the name of a candidate if desired by the voters, and with a voting square placed opposite the space. The ballots thus provided shall be furnished by the precinct officers only to those voters within their respective precincts who shall appear on the register as duly registered voters within that division of the district, and in precincts that lie partly within that district and partly without the precinct board shall be supplied with two kinds of ballots by the county elections official, one of which shall contain the matters hereinabove set forth for the use of voters of the district, and the other of which shall be without the heading containing the names of candidates for the office of member of the board, and which shall be furnished to those voters who are not voters of the district and who are voters of the precinct. electoral division).
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. All legislative sessions of the board of directors shall be held 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). A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items with only by an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric volumetric, nontiered retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(4)Reducing the number of elected directors of the district from 12 to nine members in accordance with Section 9.(b)On or before January 1, 2019, the district shall develop a rate-setting ratesetting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. The ratepayer advocate shall be selected by the board of directors and shall serve in an advisory capacity only. The board of directors shall develop and adopt any necessary rules and procedures to define the role of the ratepayer advocate. The board of directors shall not eliminate the rate-setting ratesetting process or ratepayer advocate developed pursuant to this subdivision without an affirmative vote of four-fifths of the membership of the board of directors.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivision subdivisions (a) and (b) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.Except as otherwise provided in this act, the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code. The district may exercise these powers throughout its territory.
Sec. 18.(a)The primary purpose of the district includes, but is not limited to, to shall have the power to do all of the following:
(a)To acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within throughout the territory of the district.
(b)The district shall have the power to do all of the following:(1)(b)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(2)(c)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(3)(d)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(4)(e)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(5)(f)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(6)To develop groundwater management plans within the district that may include, but are not limited to, limitation, conservation, overdraft protection plans, and groundwater extraction charge plans, and implement any or all of those plans subject to the rights of property owners and with the approval of the purveyor and other major extractors of over 100 acre-feet of water per year.(g)To join with one or more local agencies to form a groundwater sustainability agency pursuant to Section 10723.6 of the Water Code and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the district in accordance with Chapter 6 (commencing with Section 10727) of Part 2.74 of Division 6 of the Water Code.
(7)(h)To contract with the purveyor or successor in interest to the purveyor.
(8)(i)(1)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
(2)The statutory franchise right and right-of-way granted in paragraph (1) is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.The statutory franchise right and right-of-way granted in paragraph (8) of subdivision (b) of Section 18 is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.Sec. 21.Sec. 20.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 22.Sec. 21.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 23.Sec. 22.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 24 and 25. 23 and 24.
Sec. 24.Sec. 23.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 25.Sec. 24.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located, located a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 26.Sec. 25.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 27.Sec. 26.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 28.Sec. 27.The district may contain lands situated in more than one county county, and the district may annex lands situated in another county. The lands of the district do not need to be contiguous.
Sec. 29.Sec. 28.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 30.Sec. 29.No public corporation or public agency having the same identity of purpose or substantially the same identity of purpose as the district shall be formed partly or entirely within this the district, whether by incorporation or annexation, without the consent of the board of directors of this the district.
Sec. 30.(a)The district shall submit an application for conditions addressing the creation of the district to the Local Agency Formation Commission for the County of Los Angeles on January 31, 2018. The application shall include a copy of this act, a map and description of the boundaries of the district, and a plan for providing services that includes the information described in Section 56653 of the Government Code. The plan for services shall identify the powers that were being authorized by Castaic Lake Water Agency and Newhall County Water District on December 31, 2017.
(b)The Local Agency Formation Commission for the County of Los Angeles shall hold a noticed public hearing regarding the application no later than 60 days after the submission of the application. The Local Agency Formation Commission for the County of Los Angeles shall prepare a written report, which may contain specific conditions pertaining to the formation of the district as the commission may deem appropriate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). A condition specified in the written report shall be consistent with this act and shall be consistent with and subject to Sections 56853 and 56886 of the Government Code. The written report shall be completed and posted on the County Local Agency Formation Commission for the County of Los Angeles Internet Web site and made available, upon request, to the public not less than five days before the date specified in the noticed hearing.
(c)Within 30 days of the public hearing, the Local Agency Formation Commission for the County of Los Angeles shall approve a final written report.
(d)Any specific conditions pertaining to the district in the Local Agency Formation Commission for the County of Los Angeles final written report shall be applicable and binding upon the district to the extent the conditions are not inconsistent with this act and Sections 56853 and 56886 of the Government Code.
(e)In addition to any conditions, the Local Agency Formation Commission for the County of Los Angeles shall certify in the written report the powers that were being exercised by the Castaic Lake Water Agency and the Newhall County Water District on December 31, 2017. Any other powers that are authorized by the act, but are not certified by the Local Agency Formation Commission for the County of Los Angeles, may only be exercised pursuant to application to, and approval of, the Local Agency Formation Commission for the County of Los Angeles pursuant to Section 56824.10 of the Government Code.
(f)Section 99 of the Revenue and Taxation Code does not apply to this section.
(g)Except as provided in this section as it relates to the imposition of conditions, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 does not apply to the districts application for conditions.
(h)Notwithstanding any other provision in this act, the Local Agency Formation Commission for the County of Los Angeles shall not impose any condition on the district that requires a protest proceeding or an election, as described in Part 4 (commencing with Section 57000) and Part 5 (commencing with Section 57300) of Division 3 of Title 5 of the Government Code, respectively.
SEC. 4.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.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or 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.
The Legislature finds and declares as follows:
(a)Residents and businesses of the Santa Clarita Valley are served by several separate retail water providers. It is an inherently fragmented structure with noncontiguous service areas that has resulted in redundancies, interagency conflict, and barriers to integrated regional water management. Despite these challenges, the regions water providers continue to provide reliable and cost-effective water service.
(b)Castaic Lake Water Agency was created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962). The agency is a State Water Project contractor and provides wholesale water service to the Santa Clarita Valley region, which has a population of over 270,000.
(c)The agency provides retail water service to a portion of the valley through its Santa Clarita Water Division that has approximately 30,700 service connections. In addition, the agency owns the stock of the Valencia Water Company, which provides retail water service in the valley and has approximately 31,350 service connections.
(d)Newhall County Water District is a county water district formed pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code). The district provides retail water service in the valley to approximately 9,750 service connections.
(e)Representatives from the agency and the district began meeting in 2015 for the purpose of settling litigation between the entities arising from the agencys purchase of the companys stock. As the settlement discussions progressed, both sides began to see merit in and discuss the possibility of combining the two entities into a new public agency.
(f)Beginning in February 2016, the agency and the district began conducting an extensive evaluation and public process to determine whether creating a new combined public entity is in the best interest of the residents of the Santa Clarita Valley. This effort included a series of joint meetings and public workshops to gather information and public input.
(g)The agency and the district also launched an Internet Web site dedicated to the subject to inform the public and seek input, conducted two public opinion surveys, commissioned an independent third party to conduct a financial evaluation of a proposed new entity, prepared a comprehensive joint new public water district formation study, and presented to many groups and at events across the valley throughout 2016.
(h)The independent financial evaluation determined that both the agency and the district are in sound financial condition and that the formation of a new combined district would achieve operational cost efficiencies and economies of scale in project costs and pave the way for savings. The public opinion surveys also showed support for creating a new combined public entity and the joint study determined that in addition to foundational efficiencies and cost savings, a new combined district would be much better positioned to provide improved regional water resource management.
(i)On December 13, 2016, the agency and the district held a joint public board meeting and voted to enter into an agreement to settle litigation between the two agencies. The settlement agreement includes a commitment to seek state legislation to combine the agency and the district into a new public entity.
(j)The agency and the district concluded in the settlement agreement that they conducted an open and transparent process and that ratepayer value and multistakeholder benefits have been the central priority. Based on this process, the agency and the district anticipate there will be multiple benefits to the ratepayers resulting from combining the two entities into one new water district, including, but not limited to, economies of scale such that the new water districts expenses will be less than the total expenses of the individual entities.
(k)The two agencies further concluded that, given the importance of watershed-based water resource management and local regional planning, a single entity would build on and lead to greater success in water conservation, groundwater management, including conjunctive management of groundwater and surface water supplies, and future recycled water expansion across the Santa Clarita Valley.
SEC. 2.The Castaic Lake Water Agency Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962, as amended by Chapter 1715 of the Statutes of 1963, Chapter 443 of the Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter 1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984, Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841 of the Statutes of 1997, Chapter 170 of the Statutes of 1998, Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of 2007, and Chapter 328 of the Statutes of 2010) is repealed.SEC. 3.This section shall be known and may be cited as the Santa Clarita Valley Water District Act and reads as follows: SANTA CLARITA VALLEY WATER DISTRICT ACT Section 1.This act shall be known and may be cited as the Santa Clarita Valley Water District Act.
Sec. 2.The Santa Clarita Valley Water District is hereby created, organized, and incorporated. The district shall be managed as expressly provided in this act and the district may exercise the powers in this act that are expressly granted or necessarily implied. The district may include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers. As used in this act and unless otherwise indicated by its context, district means the Santa Clarita Valley Water District.
Sec. 3.For purposes of this act, the district includes all of the territory lying within the following described boundaries:
All that real property situated in the County of Los Angeles, State of California, more particularly described as follows:
Beginning at the intersection of the northerly line of the Rancho San Francisco as per map recorded in Book 1, Pages 521 and 522 of Patents, Records of Los Angeles County, and the boundary line of the County of Los Angeles and County of Ventura, as shown on Record of Survey filed in Book 27, Pages 19 to 43, inclusive, of Record of Surveys, Records of Los Angeles County;
Thence easterly along said northerly line of said Rancho San Francisco to an angle point therein and being S.F. No. 11 as shown on said Record of Survey;
Thence continuing along said northerly line of the Rancho San Francisco northeasterly to the intersection with the south line of Section 15, Township 4 North, Range 17 West, San Bernardino Meridian;
Thence westerly along said south line to the southwest corner of said Section 15;
Thence in a general northerly direction along the westerly boundary of the land described in deed to the Newhall Land and Farming Company recorded May 10, 1963, as Instrument No. 2721 in Book D2024, Page 391 of Official Records, Records of Los Angeles County, to the most northerly northwest corner of the land described in said deed and being in the westerly line of said Section 15;
Thence northerly along said westerly line to the west quarter corner of said Section 15;
Thence westerly along the south line of the northeast quarter of Section 16 of said Township and Range to the southwest corner of said northeast quarter;
Thence northerly along the westerly line of said northeast quarter to the north line of said Section 16;
Thence westerly along the north line of said Section 16 to the southwest corner of Section 9 of said Township and Range;
Thence northerly along the west line of said Section 9 to the northwest corner of the southwest quarter of the southwest quarter of said Section 9;
Thence westerly along the quarter-quarter section lines to the northeast corner of the southwest quarter of the southeast quarter of Section 7 of said Township and Range;
Thence northerly along the quarter-quarter section lines to the northwest corner of the southeast quarter of the northeast quarter of Section 6 of said Township and Range;
Thence easterly along the quarter-quarter section lines to the southwest corner of Lot 3 in the northwest quarter of Section 5 of said Township and Range;
Thence northerly along the west line of said Lot 3 to the northwest corner of said Lot 3;
Thence easterly along the northerly line of said Section 5 to the southwest corner of the southeast quarter of Section 32, Township 5 North, Range 17 West, San Bernardino Meridian;
Thence northerly along the quarter section lines of Sections 32 and 29 of last said Township and Range to the northwest corner of the south half of the northeast quarter of said Section 29;
Thence easterly along the north line of said south half of the northeast quarter of Section 29 to the northeast corner of said south half;
Thence northerly along the east line of the northeast quarter of said Section 29 to the northeast corner of said Section 29;
Thence easterly along the southerly line of Section 21 of said Township and Range to the south quarter corner of said Section 21;
Thence northerly along the west line of the southeast quarter of said Section 21 to the center of said Section 21;
Thence easterly along the along the south line of the northeast quarter of said Section 21 to the southwest corner of the east half of the northeast quarter of said Section 21;
Thence northerly along the westerly line of the east half of the northeast quarter of said Section 21 to the northwest corner of said east half;
Thence westerly along the northerly line of said Section 21 to the most westerly corner of Government Lot 5 in Fractional Section 16 of said Township and Range;
Thence northeasterly along the northwesterly lines of Government Lots 5, 4, and 3 all of said Fractional Section 16 to an angle point in the westerly line of said Government Lot 3;
Thence northwesterly along the southwesterly lines of Government Lots 3, 2, and 1 of said Fractional Section 16 and continuing northwesterly along the southwesterly lines of Lots 6, 5, 4, 3, 2 and 1 of Fractional Section 9 of said Township and Range to the northerly line of said Fractional Section 9;
Thence easterly along said northerly line to the south quarter corner of Section 4 of said Township and Range;
Thence northerly along the north-south center section line of said Section 4 to the north quarter corner of said Section 4;
Thence easterly along said north line to the southeast corner of Section 34, Township 6 North, Range 17 West, San Bernardino Meridian;
Thence northerly along the east line of said Section 34 to the northeast corner of said Section 34;
Thence westerly along the northerly line of said Section 34 to the northwest corner of said Section 34;
Thence northerly along the west line of the southwest quarter of Section 27 of said Township and Range to the northwest corner of said southwest quarter;
Thence westerly along the southerly line of the northeast quarter of Section 28 of said Township and Range, to the northeast corner of the west half of the east half of the southeast quarter of said Section 28;
Thence southerly and westerly along the easterly and southerly lines of said west half of the east half of the southeast quarter of said Section 28 to the southwest corner of said west half;
Thence southerly and westerly along the easterly and southerly lines of the northwest quarter of the northeast quarter of Section 33 of said Township and Range, to the northeast corner of the northwest quarter of the southwest quarter of the northeast quarter of said Section 33;
Thence southerly, westerly, and northerly along the easterly, southerly, and westerly lines of last said northwest quarter of the southwest quarter of the northeast quarter to the northwest corner thereof;
Thence northerly and easterly along the westerly and northerly lines of the northwest quarter of the northeast quarter of said Section 33 to the southwest corner of the east half of the southwest quarter of the southeast quarter of said Section 28;
Thence northerly and easterly along the westerly and northerly lines of last said east half to the northeast corner thereof;
Thence northerly along the westerly line of the northeast quarter of the southeast quarter of said Section 28 to the northwest corner thereof;
Thence northerly and easterly along the westerly and northerly lines of the south half of the southeast quarter of the northeast quarter of said Section 28 to the southwest corner of the northeast quarter of the southeast quarter of the northeast quarter of said Section 28;
Thence northerly along the westerly line of the northeast quarter of the southeast quarter of the northeast quarter to the northwest corner thereof;
Thence northerly and easterly along the westerly and northerly lines of the southeast quarter of the northeast quarter of the northeast quarter of said Section 28 to the northeast corner of the southeast quarter of the northeast quarter of the northeast quarter of said Section 28;
Thence northerly along the easterly line of said Section 28 to the northeast corner of said Section 28;
Thence northerly along the easterly lines of Sections 22 and 15 of said Township and Range, to the northwest corner of the southwest quarter of said Section 15;
Thence easterly along the east-west centerline of said Section 15 to the east quarter corner of said Section 15;
Thence southerly along the easterly line of said Section 15 to the southeast corner of said Section 15;
Thence southerly along the westerly line of Section 23 of said Township and Range to the west quarter corner of said Section 23;
Thence easterly along the northerly line of the southwest quarter of said Section 23 to the northeast corner of the west half of the northwest quarter of the southwest quarter of said Section 23;
Thence southerly along the easterly line of said west half of the northwest quarter of the southwest quarter to the southeast corner of said west half;
Thence easterly along the northerly line of the southwest quarter of the southwest quarter of said Section 23 to the northeast corner of said southwest quarter of the southwest quarter of Section 23;
Thence southerly along the easterly line of said southwest quarter of the southwest quarter of Section 23 to the northwest corner of the southwest quarter of the southeast quarter of the southwest quarter of said Section 23;
Thence easterly and southerly along the northerly and easterly lines of said southwest quarter of the southeast quarter of the southwest quarter of Section 23 to the southeast corner of said southwest quarter of the southeast quarter of the southwest quarter of Section 23;
Thence easterly along the southerly line of said Section 23 to the southeast corner of said Section 23;
Thence southerly along the westerly line of the northwest quarter of Section 25 of said Township and Range, to the southwest corner of said northwest quarter of Section 25;
Thence easterly along the northerly line of the southwest quarter of said Section 25 to the northeast corner of said southwest quarter of Section 25;
Thence southerly and easterly along the westerly and southerly lines of the northwest quarter of the southeast quarter of said Section 25 to the southeast corner of said northwest quarter of the southeast quarter of Section 25;
Thence southerly along the easterly line of the southwest quarter of the southeast quarter of said Section 25 to the southeast corner of said southwest quarter of the southeast quarter of Section 25;
Thence along the southerly line of the southeast quarter of said Section 25 to the southeast corner of said Section 25;
Thence easterly along the northerly line of Section 31 of said Township and Range, to the northeast corner of said Section 31;
Thence southerly along the easterly line of said Section 31 to the northwest corner of Section 6, Township 5 North, Range 16 West, San Bernardino Meridian;
Thence easterly along the northerly line of said Section 6 to the northeast corner of said Section 6;
Thence northerly along the northerly prolongation of the east line of said Section 6 to a point in the easterly prolongation of the north line of said Section 31, Township 6 North, Range 17 West, San Bernardino Meridian;
Thence easterly along last said easterly prolongation of the north line of Section 31 to a point in the northerly prolongation of the east line of Section 4, Township 5 North, Range 16 West, San Bernardino Meridian;
Thence southerly along last said northerly prolongation of the east line of Section 4 to the northwest corner of said Section 4;
Thence westerly along the northerly line of said Section 4 to the north quarter corner of said Section 4;
Thence southerly along the north-south centerline of said Section 4 to the south quarter corner of said Section 4;
Thence southerly along the east line of the northwest quarter of Section 9 of said Township and Range, to the southeast corner of said northwest quarter of Section 9;
Thence westerly along the southerly line of said northwest quarter of Section 9 to the southwest corner of said northwest quarter of Section 9;
Thence southerly along the east line of the southeast quarter of Section 8 of said Township and Range, to the southeast corner of said southeast quarter of Section 8;
Thence southerly along the easterly line of the northeast quarter of Section 17 of said Township and Range, to the southeast corner of said northeast quarter of Section 17;
Thence westerly along the southerly line of said northeast quarter of Section 17 to the southwest corner of said northeast quarter of said Section 17;
Thence westerly along the southerly line of the northwest quarter of said Section 17 to the southwest corner of said northwest quarter of Section 17;
Thence southerly along the easterly line of the southeast quarter of Section 18 of said Township and Range, to the southeast corner of said southeast quarter of Section 18;
Thence southerly along the easterly line of the northeast quarter of Section 19 of said Township and Range, to the southeast corner of said northeast quarter of Section 19;
Thence westerly along the southerly line of said northeast quarter of Section 19 to the southwest corner of said northeast quarter of Section 19;
Thence southerly along the easterly line of the southwest quarter of said Section 19 to the southeast corner of said southwest quarter of Section 19;
Thence southerly along the easterly line of the northwest quarter of Section 30 of said Township and Range, to the southeast corner of said northwest quarter of Section 30;
Thence westerly along the southerly line of said northwest quarter of Section 30 to the northwest corner of the northeast quarter of the southwest quarter of said Section 30;
Thence southerly along the westerly line of said northeast quarter of the southwest quarter to the southwest corner of said northeast quarter of the southwest quarter of Section 30;
Thence southerly along the westerly line of the southeast quarter of the southwest quarter of said Section 30 to the southwest corner of said southeast quarter of the southwest quarter of Section 30;
Thence easterly along the northerly lines of Sections 31, 32, 33, 34, 35, and 36 of Township 5 North, Range 16 West, San Bernardino Meridian and Sections 31 and 32 of Township 5 North, Range 15 West, San Bernardino Meridian, to the northeast corner of the northwest quarter of said Section 32, Township 5 North, Range 15 West, San Bernardino Meridian;
Thence northerly to the northwest corner of the southeast quarter of Section 29, Township 5 North, Range 15 West, San Bernardino Meridian;
Thence easterly to the northeast corner of said southeast quarter of Section 29;
Thence northerly to the northeast corner of said Section 29;
Thence easterly along the northerly lines of Sections 28 and 27, said Township and Range, to the northwest corner of the northeast quarter of said Section 27;
Thence southerly to the southwest corner of the southeast quarter of said Section 27;
Thence easterly along the southerly lines of Sections 27, 26, and 25 of said Township and Range, and easterly along the northerly line of Section 31, Township 5 North, Range 14 West, San Bernardino Meridian, to the northeast corner of the northwest quarter of the northeast quarter of said Section 31;
Thence southerly to the southeast corner of the southwest quarter of the southeast quarter of said Section 31;
Thence easterly to the north quarter corner of Section 5, Township 4 North, Range 14 West, San Bernardino Meridian;
Thence southerly to the south quarter corner of said Section 5;
Thence easterly along the northerly lines of Sections 8 and 9 of said Township and Range, to the north quarter corner of said Section 9;
Thence southerly along the north-south quarter section lines of said Section 9 and Section 16 of said Township and Range, to the center of said Section 16;
Thence westerly along the east-west quarter section lines of said Section 16 and Section 17 of said Township and Range, to the west quarter corner of said Section 17;
Thence southerly to the southeast corner of Section 18 of said Township and Range;
Thence westerly to the north quarter corner of Section 19 of said Township and Range;
Thence southerly along the north-south quarter section lines to the south quarter corner of said Section 19;
Thence westerly to the northeast corner of Section 25, Township 4 North, Range 15 West, San Bernardino Meridian;
Thence southerly along the easterly lines of said Section 25 and along the easterly lines of Section 36 of said Township and Range, and along the easterly lines of Section 1, Township 3 North, Range 15 West, San Bernardino Meridian, to the southeast corner of said Section 1;
Thence westerly along the southerly lines of said Section 1 and along the southerly lines of Sections 2, 3, 4, and 5 of said Township and Range, to the southeast corner of Section 6 of said Township and Range;
Thence southerly along the easterly lines of Sections 7 and 18 of said Township and Range, to the southeast corner of said Section 18;
Thence westerly along the southerly lines of said Section 18 to the southwest corner of said Section 18;
Thence southwesterly to the most northerly corner of the boundary of the City of Los Angeles;
Thence southwesterly along said City boundary to its westerly intersection of the southerly line of the north half of the north half of said Section 24;
Thence westerly to the southwest corner of the northwest quarter of the northwest quarter of said Section 24;
Thence northerly to the northwest corner of said Section 24;
Thence westerly to the south quarter corner of Section 14, Township 3 North, Range 16 West, San Bernardino Meridian;
Thence northerly to the northeast corner of the southeast quarter of the southwest quarter of said Section 14;
Thence westerly to the northwest corner of the southwest quarter of the southwest quarter of said Section 14;
Thence northerly to the west quarter corner of said Section 14;
Thence westerly to the northwest corner of the northeast quarter of the southeast quarter of Section 15 of said Township and Range;
Thence southerly to the southeast corner of the northwest quarter of the southeast quarter of said Section 15;
Thence westerly to the northwest corner of the southwest quarter of the southeast quarter of said Section 15;
Thence southerly to the south quarter corner of said Section 15;
Thence westerly to the southwest corner of the southeast quarter of the southwest quarter of said Section 15;
Thence northerly to the northwest corner of the northeast quarter of the northwest quarter of said Section 15;
Thence westerly along the northerly line of said Section 15 and along the northerly lines of Section 16 of said Township and Range, to the northwest corner of said Section 16;
Thence northerly to the northeast corner of Section 8 of said Township and Range;
Thence westerly along the southerly lines of Sections 5 and 6 of said Township and Range, to the southwest corner of the southeast quarter of the southeast quarter of said Section 6;
Thence northerly to the northwest corner of the northeast quarter of the southeast quarter of said Section 6;
Thence westerly to the southeast corner of the southwest quarter of the northwest quarter of said Section 6;
Thence northerly along projected section lines through said Rancho San Francisco to the southeast corner of the northwest quarter of the northwest quarter of Section 31, Township 4 North, Range 15 West, San Bernardino Meridian;
Thence easterly to the southwest corner of the northeast quarter of the northeast quarter of said Section 31;
Thence northerly to the northwest corner of the northeast quarter of the northeast quarter of said Section 31;
Thence easterly to the northeast corner of said Section 31;
Thence northerly along the easterly line of Section 30 of said Township and Range, to the southerly corner of Lot 14 as shown on the map filed in Book 25, Page 9 of Record of Surveys, Records of Los Angeles County;
Thence northwesterly, southwesterly and southerly along the northeasterly, northwesterly, and westerly boundary lines of that certain parcel of land known as the Pico Project No. 1 as shown in the map filed in Book 27, Pages 19, 20, and 39 of Record of Surveys, Records of Los Angeles County, to the southeast corner of Parcel 11 as shown on the map filed in Book 27, Page 20 of said Record of Surveys;
Thence westerly along the south line of said last mentioned Parcel 11 to the northeast corner of Parcel 12 as shown on the map filed in Book 27, Page 21 of said Record of Surveys;
Thence southerly along the easterly line of last mentioned Parcel 12 and along the most easterly line of Parcel 13 as shown on last mentioned Record of Survey to the southeasterly corner of said Parcel 13;
Thence westerly along the southerly line of said Parcel 13 to the westerly corner thereof;
Thence northwesterly along the southwesterly line of Parcel 15, as shown on last mentioned Record of Survey, 603.95 feet to said boundary line of the County of Los Angeles;
Thence northwesterly along said boundary line to the east-west centerline of projected Section 9, Township 3 North, Range 17 West, San Bernardino Meridian, said centerline being North 21 57 West 2764 (plus or minus) feet along said county line from the southwesterly line of the land described in the deed to the Newhall Land and Farming Company recorded June 21, 1910 in Book 127, Page 104 of Deeds, Records of Ventura County;
Thence westerly, leaving said county line along said centerline of projected Section 9 and projected Section 8, Township 3 North, Range 17 West, San Bernardino Meridian, to said southwesterly line of Newhall;
Thence northwesterly along said southwesterly line North 54 28 West to the southeasterly line of Tract N in Rancho Simi, per map recorded in Book 3, Page 7 of Maps, Records of Ventura County;
Thence southwesterly along the southeasterly line of said Tract N South 70 26 West to the east-west centerline of said Section 8;
Thence westerly along said centerline to the west line of said Section 8;
Thence southerly along the west line to the southerly line of said Tract N;
Thence South 70 26 West and west along the southerly line of said Tract N to the southwest corner of projected Section 12, Township 3 North, Range 18 West, San Bernardino Meridian;
Thence north and leaving the southerly line of said Tract N to the northwest corner of said Section 12, being the southeast corner of projected Section 2, Township 3 North, Range 18 West, San Bernardino Meridian;
Thence west along the south line of said Section 2 to the southwest corner of said Section 2;
Thence north along the west line of said Section 2 to the southerly line of said Rancho San Francisco;
Thence westerly along the said Rancho San Francisco to a three inch pipe marked N, set at the southerly terminus of the westerly line of the parcel marked the Newhall Land and Farming Company on Licensed Surveyors Map filed in Book 3, Page 74 of Record of Surveys, Records of Ventura County;
Thence northerly along said westerly line North 0 13 33 East 11,446.56 feet to the southerly line of the Southern Pacific Railroad Company (Saugus branch) Right of Way, 100 feet wide;
Thence in a general easterly and northeasterly direction along the southerly and southeasterly line of said Southern Pacific Railroad Company Right of Way, to the intersection with the third course, recited as South 28 08 East 1,089.96 feet in deed to J.S. Sharp recorded March 26, 1921, in Book 180, Page 101 of Deeds, Records of Ventura County;
Thence along the boundary of said deed the following three courses, South 28 08 East 989.96 feet to the southerly terminus of said third course;
Thence North 43 58 East 247.20 feet to an angle point;
Thence North 26 04 East 1638.3 feet to the northerly line of said Southern Pacific Railroad Company Right of Way;
Thence in a general easterly and southeasterly direction along the northerly and northeasterly line of said Southern Pacific Railroad Company Right of Way to a one inch iron pipe set at the most southerly corner of the land described in deed to George B. Larinan recorded February 8, 1957, in Book 141, Page 238 of Official Records, Records of Ventura County;
Thence along the boundary of last mentioned deed the following six courses, North 27 44 East 239.74 feet to a one and one-half inch iron pipe set at an angle point;
Thence North 3 40 West 686.99 feet to a one and one-half inch iron pipe set at an angle point;
Thence North 9 07 40 West 812.92 feet to a one and one-half inch iron pipe set at an angle point;
Thence North 57 03 20 East 752.49 feet to a one inch iron pipe set at an angle point;
Thence North 60 28 45 East 2567.91 feet to a one inch iron pipe set at an angle point;
Thence North 18 45 20 East 1554.65 feet to a two inch iron pipe set on the northerly line of said Rancho San Francisco at the most easterly corner of said land of George B. Larinan;
Thence easterly along said northerly line North 87 13 50 East 3097.6 feet, more or less, to the point of beginning.
Except therefrom the west half of the west half of the northeast quarter of Fractional Section 15, Township 4 North, Range 17 West, San Bernardino Meridian.
Also except therefrom the southeast quarter of the southeast quarter of Section 10, Township 4 North, Range 17 West, San Bernardino Meridian.
Sec. 4.(a)The Castaic Lake Water Agency created pursuant to the Castaic Lake Water District Law (Chapter 28 of the First Extraordinary Session of the Statutes of 1962) and the Newhall County Water District created pursuant to the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code), shall be reorganized into the Santa Clarita Valley Water District and shall no longer operate as separate entities or exercise independent functions.
(b)The district shall be the successor to the Castaic Lake Water Agency and the Newhall County Water District for the purpose of succeeding to all of the rights, duties, obligations, contracts, responsibilities, assets, entitlements, and liabilities of the Castaic Lake Water Agency and the Newhall County Water District, including, but not limited to, the performance or payment of any outstanding bonds and notes.
(c)All property, whether real or personal, and including all moneys such as cash on hand and moneys due uncollected, and assets and liabilities of the Castaic Lake Water Agency and the Newhall County Water District shall be transferred to and vested in the district.
(d)All employees of the Castaic Lake Water Agency and the Newhall County Water District shall become employees of the district.
(e)The district shall continue to levy, impose, or fix and collect any previously authorized charge, fee, assessment, or tax approved, imposed, and levied by the Castaic Lake Water Agency or the Newhall County Water District, or both, including, but not limited to, any rates, fees, and charges for the provision of water. Any charge, fee, assessment, or tax authorized and in effect for the Castaic Lake Water Agency or the Newhall County Water District shall remain in effect until otherwise modified, increased, or terminated by the board of directors of the district.
(f)The district shall be the successor in interest to Castaic Lake Water Agencys water supply contract with the Department of Water Resources dated August 3, 1962, as thereafter amended, for a water supply from the State Water Resources Development System, including all of the rights, responsibilities, and obligations contained in the contract, and the district shall succeed to the legal authority held by Castaic Lake Water Agency for the performance and enforcement of that contract.
(g)The indebtedness of the Newhall County Water District and the Santa Clarita Water Division, a retail division of the Castaic Lake Water Agency, that exists as of December 31, 2017, including acquisition costs, tax obligations, and debt financing of capital improvement projects, shall be borne by retail divisions of the district that correspond with the Newhall County Water District and Santa Clarita Water Division areas, respectively, and paid for from the revenues of the corresponding retail divisions. Any indebtedness incurred by the district shall not be limited by this subdivision.
(h)If any other retail water supplier is incorporated into the district, the indebtedness of the retail water supplier that exists immediately before the incorporation shall be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
Sec. 5.The district is divided into three divisions as follows:
(a)The first division shall include the real property described as follows:
Beginning at the intersection of Newhall Ranch Road and Interstate 5; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding clockwise along the districts border to the intersection of Highway 14 and the districts southern border; thence proceeding northerly along Highway 14 to Newhall Avenue; thence proceeding northwesterly along Newhall Avenue to Main Street; thence proceeding northerly along Main Street to Lyons Avenue; thence proceeding westerly along Lyons Avenue to Orchard Village Road; thence proceeding northerly along Orchard Village Road to McBean Parkway; thence proceeding westerly along McBean Parkway to Interstate 5; thence proceeding northerly along Interstate 5 to the point of origin.
(b)The second division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding easterly along Newhall Ranch Road to Golden Valley Road; thence proceeding northerly along Golden Valley Road to Ermine Street; thence proceeding easterly along Ermine Street and Ermine Place and the extension of Ermine Place to Whites Canyon Road; thence proceeding along Whites Canyon Road to Nadal Street; thence proceeding easterly along Nadal Street to Bermina Avenue; thence proceeding southerly along Bermina Avenue to Delight Street; thence proceeding westerly along Delight Street to Bakerton Avenue; thence proceeding southerly along Bakerton Avenue to the Bekerton Avenue right of way just south of the power lines approximately 135 feet south of Kimbrough Street; thence proceeding westerly and southerly along the right of way behind the parcels on the east side of Crossglade Avenue until Allenwick Avenue; thence proceeding southerly along Allenwick Avenue to Vicci Street; thence proceeding westerly along Vicci Street to Crossglade Avenue; thence proceeding southerly along Crossglade Avenue to its dead end and continuing due south into the parking lot until its conclusion; thence proceeding westerly and southerly and easterly along the northern, western and southern borders of Census Block 060379200351017, going around the two apartment buildings; thence proceeding easterly along the riverbed to Highway 14; thence proceeding northeasterly along Highway 14 to the districts eastern border; thence proceeding counter-clockwise along the districts border to the point of origin.
(c)The third division shall include the real property described as follows:
Beginning at the intersection of the districts northern border and the Los Angeles Aqueduct easement on the western border of Census Block 060379200152002, between Harmony Way and Evening Star Court; thence proceeding southerly along the Aqueduct easement to Copper Hill Drive; thence proceeding westerly along Copper Hill Drive to McBean Parkway; thence proceeding southerly along McBean Parkway to Newhall Ranch Road; thence proceeding westerly along Newhall Ranch Road to Interstate 5; thence proceeding southerly along Interstate 5 to McBean Parkway; thence proceeding easterly along McBean Parkway to Orchard Village Road; thence proceeding southerly along Orchard Village Road to Lyons Avenue; thence proceeding easterly along Lyons Avenue to Main Street; thence proceeding southerly along Main Street to Newhall Avenue; thence proceeding southeasterly along Newhall Avenue to Highway 14; thence proceeding southerly along Highway 14 to the districts southern border; thence proceeding clockwise along the districts border to the point of origin.
Sec. 6.The board of directors shall adjust the division boundaries described in Section 5 by resolution pursuant to Chapter 8 (commencing with Section 22000) of Division 21 of the Elections Code.
Sec. 7.As used in this act:
(a)Private corporation means and includes any private corporation organized under federal law or the laws of any state.
(b)Public agency means and includes the federal government, the State of California, a county, a city, a public corporation, the Metropolitan Water District of Southern California, or other public district of this state.
(c)Purveyor means the Los Angeles County Waterworks District No. 36, which is a retail water supplier that has facilities connected to the districts water transmission system and is under contract with the district for water.
Sec. 8.(a)The district shall be governed by a board of directors that shall initially consist of 15 members as follows:
(1)The five members of the Newhall County Water District board of directors in office as of December 31, 2017.
(2)The appointed member representing the purveyor described in subdivision (a) of Section 10 and the nine elected members of the Castaic Lake Water Agency board of directors in office as of December 31, 2017.
(b)Each elected member of the board of directors shall be a resident or owner of real property within the districts service territory and shall hold office until his or her successor is elected pursuant to Section 9.
(c)Each of the initial members of the board of directors of the district, except for the initial appointed member, are deemed to be designated as a director from the division, as described in Section 5, in which his or her residence is located.
(d)Each of the initial members of the board of directors of the district, except for the initial appointed member, shall hold office as follows:
(1)The directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2018 general election shall expire following the 2020 general election.
(2)The directors whose respective terms as a member of the Castaic Lake Water Agency or Newhall County Water District board of directors would have expired following the 2020 general election shall expire following the 2022 general election.
(3)If any elected initial member of the board of the district resigns, vacates, or is removed from office before the expiration of his or her initial term, the board may, in its discretion, decide not to appoint a successor. The board shall appoint a successor if the division in which the vacancy occurs will have less than four members representing the division on the board of directors.
Sec. 9.(a)All elected successors of the first board of directors shall be elected at the time and in the manner provided in the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).
(b)Successors to the first board of directors shall be elected by the voters for each division as follows:
(1)Two directors elected for each division at the 2020 general election.
(2)Two directors elected for each division at the 2022 general election.
(c)Each elected director shall have his or her primary residence in and be an elector in the division he or she represents. Each elected director shall serve a four year term from the date of taking office and until the election and qualification of a successor. A director shall take office on the first Monday of the January after an election.
(d)The board may, after January 1, 2023, by resolution reduce the number of elected directors from 12 to nine, comprised of three members for each division in accordance with Section 14.
(e)Any vacancy in the board of directors shall be filled by a majority vote of the remaining directors in accordance with subdivision (d) of Section 1780 of the Government Code.
(f)If a directors place of residence, as defined in Section 244 of the Government Code, is moved outside of that directors division where elected from a division, and if within 180 days of the move the director fails to reestablish a place of residence within the directors division, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.
Sec. 10.(a)The initial board of directors of the district shall include the Castaic Lake Water Agency director who was nominated by the purveyor and in office as a Castaic Lake Water Agency director as of December 31, 2017. This initial appointed director shall serve an initial term of one year that expires on January 1, 2019. The subsequent terms for the director nominated by the purveyor shall be four years.
(b)After the initial appointed directors term expires on January 1, 2019, the office of the appointed director shall be filled as follows:
(1)Not more than 90 or less than 30 days before the expiration of the term of office of the appointed director, the purveyor shall submit a nominee for a successor appointed director to the board of directors. A nominee of the purveyor may be a director, officer, agent, or employee of the purveyor and shall be a registered voter within the County of Los Angeles or the County of Ventura. Any appointed director whose term is expiring may be nominated by the purveyor for reappointment by the board of directors as the successor appointed director. If a vacancy occurs in the office of appointed director, the purveyor shall nominate a person for appointment to the vacant office not more than 60 days after the occurrence of the vacancy.
(2)The board of directors shall appoint the nominee within 30 days after the nomination is submitted, or may within the same time period by resolution reject the nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall promptly submit a second and different nominee to the board of directors. The board of directors shall appoint the second nominee within 30 days after the second nomination is submitted, or may within the same time period by resolution likewise reject that second nominee for cause, which shall be documented in the resolution by a detailed statement of reasons. If the board of directors rejects the nominee, the purveyor shall select a third and still different nominee, which nominee shall be entitled without further board action to take an oath of office as required by law and to thereafter serve as an appointed director of the district. A successor appointed director shall take office on the first Monday in January in odd-numbered years, or as soon thereafter as qualifying by taking the required oath of office. A successor appointed director appointed to or otherwise entitled to fill a vacancy shall take office immediately upon taking the required oath of office. A nominee of a purveyor who is the general manager of the purveyor shall be rejected for appointment only on the ground that the nominee is legally disqualified from holding the office of director by a provision of applicable law.
(c)An incumbent in the office of appointed director shall be subject to recall by the voters of the entire district in accordance with Division 11 (commencing with Section 11000) of the Elections Code, except that any vacancy created by a successful recall shall be filled in accordance with subdivision (b).
(d)Notwithstanding any other law, the provisions of Article 4.7 (commencing with Section 1125) of Chapter 1 of Division 4 of Title 1 of the Government Code shall not be applicable to the appointed director. The fact the appointed director is simultaneously a director, officer, agent, or employee of the purveyor shall not in any way constitute the holding of incompatible offices under or for purpose of any common law doctrine prohibiting the simultaneous holding of these offices, and shall not disqualify the director from serving as a director of the district or from discharging fully the responsibilities of the office of appointed director with respect to any matter coming before the board of directors of the district for consideration, decision, determination, or other form of action.
Sec. 11.(a)A person who may vote at any district election held under the provisions of this act shall be a voter within the meaning of the Elections Code, residing in the division of the district in which he or she casts his or her vote. For the purpose of registering voters who shall be entitled to vote at district elections, the county elections official is authorized, in any county in which there is a district, to indicate upon the affidavit of registration whether the voter is a voter of a district.
(b)In case the boundary line of a district crosses the boundary line of a county election precinct, only those voters within the district and within the precinct who are registered as being voters within the district shall be permitted to vote, and for that purpose the county elections official may provide two sets of ballots within those precincts, one containing the names of candidates for office in the district, and the other not containing those names, and it shall be the duty of the election officers in those precincts to furnish only those persons registered as voters within the district with the ballots upon which are printed the names of the candidates for office in the district.
(c)In a county in which the district is located, the county elections official is hereby given authority to have printed upon the official ballots provided for voters at elections for directors a heading in the same form as that provided by the Elections Code for nonpartisan officers, which heading shall be marked Santa Clarita Valley Water District, with a subheading For a Member of the Board of Directors, Division ____ (here inserting the number of the division ) Vote for One, and beneath which shall appear the names of the candidates for the office of member of the board for the division of the district, with the appropriate blank space for the writing in of the name of a candidate if desired by the voters, and with a voting square placed opposite the space. The ballots thus provided shall be furnished by the precinct officers only to those voters within their respective precincts who shall appear on the register as duly registered voters within that division of the district, and in precincts that lie partly within that district and partly without the precinct board shall be supplied with two kinds of ballots by the county elections official, one of which shall contain the matters hereinabove set forth for the use of voters of the district, and the other of which shall be without the heading containing the names of candidates for the office of member of the board, and which shall be furnished to those voters who are not voters of the district and who are voters of the precinct.
Sec. 12.The board of directors shall hold its first meeting as soon as possible at which it shall choose one of its members to be president. The board of directors may appoint from its members additional officers and may define the duties of those officers. The board of directors shall provide for the time and place of holding its meetings and the manner in which its special meetings may be called. All legislative sessions of the board of directors shall be held 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). A majority of the board of directors shall constitute a quorum for the transaction of business.
Sec. 13.(a)The board of directors may act by ordinance, resolution, or motion. On all ordinances the roll shall be called and the ayes and noes recorded in the journal of the proceedings of the board of directors. Resolutions and motions may be adopted by voice vote, but on demand of any member the roll shall be called. Except as provided in Section 14, an ordinance, motion, or resolution shall not be passed or become effective without the affirmative vote of a majority of the membership of the board.
(b)The enacting clause of all ordinances passed by the board shall be, Be it ordained by the Board of Directors of the Santa Clarita Valley Water District as follows:
(c)Each member of the board of directors shall receive compensation equal to the amount of compensation authorized for a Castaic Lake Water Agency director as of December 31, 2017, for each meeting of the board attended and for each days service rendered as a director at the request of the board. This initial compensation may be adjusted in accordance with Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code.
Sec. 14.(a)The board of directors may take action on the following items with an affirmative vote of four-fifths of the membership of the board:
(1)Authorizing the district to support or take action to further any amendments or efforts to amend this section.
(2)Issuing new debt in excess of ten million dollars ($10,000,000) at any one time that relates to retail functions of the district, excluding the refinancing of existing debt. The threshold of ten million dollars ($10,000,000) shall be adjusted annually in proportion to the assessed value of real property within the district.
(3)For the retail division of the district that corresponds with the Newhall County Water District area, changes to the volumetric retail rate structure that existed for the Newhall County Water District area as of December 31, 2017. This paragraph does not include changes to the tiered retail rate structure.
(4)Reducing the number of elected directors of the district from 12 to nine members in accordance with Section 9.
(b)On or before January 1, 2019, the district shall develop a rate-setting process that includes an independent ratepayer advocate to advise the board of directors and provide information to the public before the adoption of new rates. The ratepayer advocate shall be selected by the board of directors and shall serve in an advisory capacity only. The board of directors shall develop and adopt any necessary rules and procedures to define the role of the ratepayer advocate. The board of directors shall not eliminate the rate-setting process or ratepayer advocate developed pursuant to this subdivision without an affirmative vote of four-fifths of the membership of the board of directors.
(c)Until December 31, 2024, the board of directors may dispense with the four-fifths vote requirement for the actions described in subdivisions (a) and (b) at any time upon an affirmative vote of four-fifths of the membership of the board of directors.
(d)On and after January 1, 2025, the board of directors may at any time dispense with the four-fifths vote required for any action described in subdivision (a) by a majority vote of the membership of the board.
Sec. 15.(a)No informality in any proceeding or informality in the conduct of any election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district and the legal existence of the district and all proceedings in respect to the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable.
(b)An action to determine the validity of any bonds, warrants, promissory notes, contracts, or other evidences of indebtedness of the kinds authorized by this act may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
Sec. 16.At its first meeting, or as soon as practicable, the board of directors shall, by a majority vote of the membership of the board, appoint a general manager, secretary, and treasurer or auditor. The board shall define the duties of these appointees and fix their compensation in accordance with Division 12 (commencing with Section 30000) of the Water Code. The board may employ additional assistants, employees, engineers, attorneys, professionals, and other consultants as the board deems necessary to efficiently maintain and operate the district.
Sec. 17.Except as otherwise provided in this act, the district has and may exercise the powers expressly granted or necessarily implied in, and may operate in accordance with, Part 5 (commencing with Section 31000), Part 6 (commencing with Section 31300), Part 7 (commencing with Section 31650), and Part 8 (commencing with Section 32200) of the County Water District Law (Division 12 (commencing with Section 30000)) of the Water Code.
Sec. 18.(a)The primary purpose of the district includes, but is not limited to, to acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district.
(b)The district shall have the power to do all of the following:
(1)To construct, operate, and maintain works to develop energy, including, but not limited to, hydroelectric, solar, wind, and other renewable sources, inside or outside the district for use by the district in the operation of its works or as a means of assisting in financing the construction, operation, and maintenance of its projects for the control, conservation, diversion, and transmission of water and to enter into contracts for the sale of the energy. The energy may be marketed only at wholesale to any public agency or private entity, or both.
(2)To enter into contracts with any public agency or private entity engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the district, either inside or outside the district, for energy generation or distribution purposes.
(3)To develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery.
(4)To join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the district, and for that purpose to contract with other public agencies or private corporations or persons for the purpose of financing those acquisitions, constructions, and operations. The contracts may provide for contributions to be made by each party to the contract and for the division and apportionment of the expenses of the acquisitions and operations, and the division and apportionment of the benefits, the services and products from the contract, and may provide for any agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts with other public agencies or private corporations or persons may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract. In addition to and without limiting all of the other powers of the district, the district may contract with the State of California for delivery of water under the State Water Resources Development System. Contracts under this subdivision include those made with the federal government under the Federal Reclamation Act of June 17, 1902, as amended, or any other act of the United States Congress enacted permitting cooperation.
(5)To require reporting to the district of all production, distribution, and reclamation of water within the district in excess of 10 acre-feet per annum.
(6)To develop groundwater management plans within the district that may include, but are not limited to, limitation, conservation, overdraft protection plans, and groundwater extraction charge plans, and implement any or all of those plans subject to the rights of property owners and with the approval of the purveyor and other major extractors of over 100 acre-feet of water per year.
(7)To contract with the purveyor or successor in interest to the purveyor.
(8)To construct works along and across any stream of water, watercourse, channel, flood control channel, storm channel, canal, ditch or flume, street, avenue, highway, or across any railway that the route of the works may intersect or cross, if the works are constructed in a manner as to afford security for life and property and the district restores the crossings and intersections to their former state as near as may be or in a manner not to have impaired unnecessarily their usefulness. This paragraph grants the district a statutory franchise right and therefore the district may not be charged any use fees or be made subject to any conditions that unreasonably interfere with the franchise rights.
Sec. 19.The financial or other interest of any appointed director in any contract between the purveyor or successor in interest to the purveyor and the district, or the fact that an appointed director may hold the position of a director, officer, agent, or employee of the purveyor or successor in interest to the purveyor, shall not constitute a violation of Section 1090 of the Government Code, and that interest or fact shall not render the contract void or make it avoidable under Section 1092 of the Government Code, at the instance of any party, if either the fact of the interest or the fact of the relationship as director, officer, agent, or employee, or both, are disclosed to the board of directors of the district and noted in its official records and the board authorizes, approves, or ratifies the contract by a vote of its membership sufficient for the purpose without counting the vote of the interested appointed director.
Sec. 20.The statutory franchise right and right-of-way granted in paragraph (8) of subdivision (b) of Section 18 is hereby given, dedicated, and set apart to locate, construct, and maintain the works along and across any street or public highway and over and through any of the lands that are now or may be the property of this state, and to have the same rights and privileges as have been or may be granted to cities within the state. Any use under this section of a public highway shall be subject to the provisions of Chapter 3 (commencing with Section 660) of Division 1 of the Streets and Highways Code.
Sec. 21.Notwithstanding any other law, the district may fix, levy, or collect any standby or availability charge or assessment in connection with the provision of water service pursuant to the procedures set forth in the Uniform Standby Charge Procedures Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of Division 2 of Title 5 of the Government Code).
Sec. 22.The district may impose and collect capacity charges and connection fees pursuant to Section 66013 of the Government Code.
Sec. 23.The district may prescribe, by resolution or ordinance, that when any capacity charges or connection fees adopted pursuant to this act become due and are unpaid under and in accordance with the rules and regulations concerning those charges and fees, the charges and fees may be secured and collected in accordance with the procedures specified in Sections 24 and 25.
Sec. 24.The amount of any delinquent and unpaid capacity charges or connection fees shall be collected with the annual taxes next levied upon the property that is subject to the imposition of a capacity charge or connection fee, and that amount constitutes a lien on that property as of the same time and in the same manner as the tax lien securing annual property taxes. If during the year preceding the date on which the first installment of real property taxes that evidence the charges appears on the roll, any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches to the real property, the lien that would otherwise be imposed by this section shall not be added to and become part of the annual assessment and it shall not attach to the real property. A county in which the district is located shall deduct from the capacity charges and connection fees collected by it an amount sufficient to compensate the county for costs incurred in collecting the delinquent and unpaid capacity charges and connection fees. The amount of that compensation shall be fixed by agreement between the board of supervisors of the county and the board of directors of the district.
Sec. 25.(a)If delinquent and unpaid capacity charges or connection fees are determined to exist by the district, the amount of those charges or fees may, in the discretion of the district, be secured at any time by filing for record in the office of the county recorder of the county in which the real property is located, a certificate specifying the amount of those charges and fees and the name and address of the person liable for the delinquent and unpaid charges or fees.
(b)From the time of recordation of the certificate, the amount required to be paid, together with interest and penalties, constitutes a lien upon all real property in the county owned by the person or later acquired before the lien expires. The lien shall have the force, priority, and effect of a judgment lien and shall continue for 10 years from the date of the filing of the certificate, unless sooner released or otherwise discharged. The lien may, within 10 years from the filing of the certificate or within 10 years from the date of the last extension of the lien in the manner provided in this subdivision, be extended by filing for record a new certificate. From the time of that filing, the lien shall be extended with respect to the real property in that county for 10 additional years unless sooner released or otherwise discharged.
Sec. 26.Any bonds issued by the district are hereby given the same force, value, and use as bonds issued by any city and shall be exempt from all taxation within the state.
Sec. 27.(a)Except as otherwise provided in this act, the County Water District Law (Division 12 (commencing with Section 30000) of the Water Code) shall govern the formation, operation, and dissolution of all improvement districts, so far as they may be applicable.
(b)The board of directors may advance general funds of the district to accomplish the purposes of an improvement district formed to incur bonded indebtedness or for any other purpose for which an improvement district may be created and, if the improvement district is formed to incur bonded indebtedness, may repay the district from the proceeds of the sale of the bonds, or if the improvement district is formed for any other purpose for which an improvement district may be created, in the formation of the improvement district, provide that the district shall be repaid with interest at a rate not to exceed the maximum rate per annum authorized by Section 31304 of the Water Code from the special taxes levied exclusively upon the taxable property in the improvement district.
(c)Interest on any bonds issued by the district coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available may be paid from the proceeds of the sale of the bonds. The percentage of the proceeds of any sale of the bonds shall not exceed the maximum interest rate authorized, for other purposes, by Section 31304 of the Water Code.
Sec. 28.The district may contain lands situated in more than one county and the district may annex lands situated in another county. The lands of the district do not need to be contiguous.
Sec. 29.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Sec. 30.No public corporation or public agency having the same identity of purpose or substantially the same identity of purpose as the district shall be formed partly or entirely within this district, whether by incorporation or annexation, without the consent of the board of directors of this district.
SEC. 4.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.
|
Date
|
Status
|
|---|---|
| Oct 15, 2017 | Chaptered by Secretary of State. Chapter 833, Statutes of 2017. |
| Oct 15, 2017 | Approved by the Governor. |
| Sep 21, 2017 | Enrolled and presented to the Governor at 5:30 p.m. |
| Sep 14, 2017 | Assembly amendments concurred in. (Ayes 34. Noes 1.) Ordered to engrossing and enrolling. |
| Sep 14, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 13, 2017 | Read third time. Passed. Ordered to the Senate. |
| Sep 8, 2017 | Read third time and amended. |
| Sep 6, 2017 | Read second time. Ordered to third reading. |
| Sep 5, 2017 | Read second time and amended. Ordered to second reading. |
| Sep 1, 2017 | From committee: Do pass as amended. (Ayes 14. Noes 0.) (September 1). |
| Aug 23, 2017 | August 23 set for first hearing. Placed on suspense file. |
| Aug 21, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jul 12, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 11, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 2.) (July 11). |
| Jun 29, 2017 | From committee: Do pass and re-refer to Com. on W.,P., & W. (Ayes 9. Noes 0.) (June 28). Re-referred to Com. on W.,P., & W. |
| Jun 15, 2017 | Referred to Coms. on L. GOV. and W.,P., & W. |
| Jun 1, 2017 | In Assembly. Read first time. Held at Desk. |
| May 31, 2017 | Read third time. Passed. (Ayes 34. Noes 0. Page 1344.) Ordered to the Assembly. |
| May 30, 2017 | Read second time. Ordered to third reading. |
| May 26, 2017 | Read third time and amended. |
| May 26, 2017 | Read second time. Ordered to third reading. |
| May 25, 2017 | From committee: Do pass. (Ayes 7. Noes 0. Page 1188.) (May 25). |
| May 19, 2017 | Set for hearing May 25. |
| May 15, 2017 | May 15 hearing: Placed on APPR. suspense file. |
| May 4, 2017 | Set for hearing May 15. |
| May 2, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| May 1, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 884.) (April 26). |
| Apr 19, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| Apr 19, 2017 | Set for hearing April 26. |
| Apr 17, 2017 | April 19 hearing postponed by committee. |
| Apr 5, 2017 | Set for hearing April 19. |
| Mar 28, 2017 | From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 7. Noes 0.) (March 28). Re-referred to Com. on GOV. & F. |
| Mar 7, 2017 | Set for hearing March 28. |
| Mar 2, 2017 | Referred to Coms. on N.R. & W. and GOV. & F. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2017 | Unfinished Business SB634 Wilk Concurrence | Senate Floor |
Passed |
|
| Sep 13, 2017 | SB 634 Wilk Senate Third Reading By LACKEY | Assembly Floor |
Passed |
|
| Sep 1, 2017 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 11, 2017 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Water, Parks, and Wildlife |
Passed |
|
| Jun 28, 2017 | Do pass and be re-referred to the Committee on [Water, Parks, and Wildlife] | Assembly Standing Committee on Local Government |
Passed |
|
| May 31, 2017 | Senate 3rd Reading SB634 Wilk | Senate Floor |
Passed |
|
| May 25, 2017 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 15, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 26, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
|
| Mar 28, 2017 | Do pass, but first be re-referred to the Committee on [Governance and Finance] | Senate Standing Committee on Natural Resources and Water |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 18 Individuals | ** Support | Sep 14, 2017 |
| According to the Assembly Appropriations Committee: | ** Support | Sep 14, 2017 |
| According to the Senate Appropriations Committee: | ** Support | May 30, 2017 |
| AMS Fulfillment | ** Support | Sep 14, 2017 |
| Association Of California Water Agencies | ** Support | Sep 14, 2017 |
| authorize the district to include noncontiguous parcels; | ** Support | May 30, 2017 |
| background | ** Support | Sep 14, 2017 |
| BizFed | ** Support | Sep 14, 2017 |
| CA LAFCO | * Against | Apr 26, 2017 |
| calafco | ** Against | May 30, 2017 |
| California Building And Construction Trades Council | ** Support | Sep 14, 2017 |
| California Democratic Party | ** Against | Sep 14, 2017 |
| California Native Plant Society | ** Against | Sep 14, 2017 |
| California Wilderness Coalition | ** Support | Sep 14, 2017 |
| castaic area town council | ** Against | Jul 10, 2017 |
| Castaic Lake Water Agency | ** Support | Sep 14, 2017 |
| castaic lake water agency [co-sponsor] | ** Support | Jun 27, 2017 |
| Center For Food Safety | ** Against | Sep 14, 2017 |
| City of Santa Clarita | ** Support | Sep 14, 2017 |
| Climate Resolve | ** Support | Sep 14, 2017 |
| community hiking club | ** Support | Sep 14, 2017 |
| comprehensive development consulting | ** Against | Jul 10, 2017 |
| define eligible voters and voting procedures; | ** Support | May 30, 2017 |
| Democratic Alliance for Action | ** Against | May 30, 2017 |
| fiscal effect: appropriation: no fiscal com.: yes local: yes | ** Support | Sep 14, 2017 |
| Food & Water Watch | ** Against | Sep 14, 2017 |
| Friends of the Santa Clara River | ** Against | Sep 14, 2017 |
| Individuals | ** Against | Jul 10, 2017 |
| Local Agency Formation Commission for the County of Los Angeles | * Against | Apr 26, 2017 |
| Local Agency Formation Commission for the County of Los Angeles | * Against Unless Amend | Apr 26, 2017 |
| los angeles supervisor kathryn barger | ** Support | Sep 14, 2017 |
| Newhall County Board of Directors | * Against | Jul 11, 2017 |
| Newhall County Water District | ** Support | Sep 14, 2017 |
| newhall county water district [co-sponsor] | ** Support | Jun 27, 2017 |
| North Valley Democratic Club | ** Against | Sep 14, 2017 |
| or further amendments to the new district's act; | ** Support | Sep 14, 2017 |
| participate in a groundwater sustainability agency; | ** Support | May 30, 2017 |
| Planning And Conservation League | ** Against | Sep 14, 2017 |
| progressive democrats of the santa monica mountains | ** Against | Sep 14, 2017 |
| San Gabriel Mountains Forever | ** Support | Sep 14, 2017 |
| santa clarita city council | ** Support | Sep 14, 2017 |
| Santa Clarita Economic Development Corporation | ** Support | Sep 14, 2017 |
| Santa Clarita Organization for Planning and the Environment | ** Against | Sep 14, 2017 |
| Santa Clarita Valley Chamber of Commerce | ** Support | Sep 14, 2017 |
| Sierra Club California | ** Against | Sep 14, 2017 |
| Southern California Water Committee | ** Support | Sep 14, 2017 |
| specify the manner of appointing officers for scvwd; | ** Support | May 30, 2017 |
| Stay Green, Inc. | ** Support | Sep 14, 2017 |
| United Water Conservation District | ** Support | Sep 14, 2017 |
| Valley Industry Association | ** Support | Jul 10, 2017 |
| Valley Industry Association Of Santa Clarita | ** Support | Sep 14, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 634
:
SENATE NATURAL RES. & WATER COMMITTEE: 7-0, 3/28/17
AYES: Hertzberg, Stone, Atkins, Hueso, Jackson, Monning, Vidak
NO VOTE RECORDED: Allen, Stern
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/26/17
AYES: McGuire, Nguyen, Beall, Hertzberg, Lara, Moorlach
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SENATE FLOOR: 34-0, 5/31/17
AYES: Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Roth, Skinner, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Allen, Hernandez, Hertzberg, Mitchell, Portantino, Stern
ASSEMBLY FLOOR: 62-13, 9/13/17 - See last page for vote
SOURCE: Castaic Lake Water Agency
Newhall County Water District
DIGEST:
This bill reorganizes Castaic Lake Water Agency and Newhall County Water District into the Santa Clarita Valley Water Agency (SCVWA).
Assembly Amendments
grant the SCVWA, on a pilot basis, design-build and construction manager at risk contracting authority if the agency enters into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council, prohibit abolition of the ratepayer advocate until January 1, 2023, and make other technical and clarifying changes.
Existing law:
- Creates a local agency formation commission (LAFCO) in each county to control the boundaries and powers of cities, county service areas, and most special districts.
- Establishes a process for changing boundaries, which includes the following steps:
- First, there must be a completed application to LAFCO, including a petition or resolution, an environmental review document, an agreement on how property taxes will be transferred, and a plan for services that describes what services will be provided at what level and how those services will be financed.
- Second, LAFCO must hold a noticed public hearing, take testimony, and may approve the proposed reorganization. LAFCO may impose terms and conditions that spell out what happens to the assets and liabilities of affected local agencies. If LAFCO disapproves, the proposed reorganization stops.
- Third, LAFCO must hold another public hearing to measure written protests in order to determine whether an election is needed. Although there are many exceptions, in most cases an election is required if 25 percent of the voters in a district, or voters representing 25 percent of the assessed value of land, submit written protests.
- Fourth, if state law requires an election, it occurs among the affected voters, requiring majority voter approval.
- Finally, LAFCO’s staff files formal documents to complete the reorganization.
- Requires a LAFCO to approve a consolidation where all of the merging districts pass substantially similar resolutions endorsing the consolidation, although the LAFCO may still impose terms and conditions.
- Establishes the Castaic Lake Water Agency (CLWA) to sell State Water Project water at wholesale in the Santa Clarita Valley and at retail within the Santa Clarita Valley Water Division of CLWA.
- Provides for the formation of County Water Districts and provides certain powers and duties.
- Allows certain local agencies, including special districts, to use design-build contracting for water recycling projects that exceed $1 million until January 1, 2025, if the contract meets certain conditions, including a requirement for the use of a skilled and trained workforce or a project labor agreement.
- Allows a county to use construction manager at-risk contracting for projects that exceed $1 million until January 1, 2018.
- Requires any dissolution of Newhall County Water District (NCWD) to be put before the voters if the commission finds that a petition has been signed by 10 percent of the voters.
This bill:
- Repeals the requirement for a protest proceeding if the 10 percent protest threshold is met for a dissolution of NCWD.
- Repeals the principal act of CLWA and creates the SCVWA by reorganizing CLWA and NCWD into the new district.
- Provides that SCVWA is the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, pension liabilities, property, and outstanding bonds.
- Sets the initial boundaries of SCVWA as the same as those of CLWA as existing on December 31, 2017, and as confirmed by the Los Angeles LAFCO.
- Carries forward fees and charges imposed by CLWA and NCWD continue to be levied until the SCVWA’s board modifies them.
- Provides that the SCVWA is the successor in interest to CLWA’s State Water Project contract and all associated rights and responsibilities.
- Creates retail divisions for the territory previously covered by NCWD and allocates preexisting indebtedness to each retail division, to be paid from that retail division’s rates and charges.
- Requires SCVWA to eliminate the retail divisions for all purposes as soon as feasible after all preexisting indebtedness has been retired.
- Requires SCVWA to continue to supply water at wholesale to District 36 and Valencia Water Company and requires, by January 31, 2018, the board of Valencia Water Company and SCVWA to take the appropriate steps to dissolve the company and transfer its assets and liabilities to SCVWA. Requires the finalization of the dissolution and transfer to occur prior to July 1, 2018.
- Requires any future proceedings to annex or consolidate Los Angeles County Water Works District 36 to go through LAFCO, and prohibits the serving of retail water within the territory served by District 36 while District 36 continues to exist.
- Establishes an initial board of directors that consists of the 15 members who are in office on the formation date, specifically the five elected directors of NCWD, the nine elected directors of CLWA, and the one appointed director of CLWA representing District 36.
- Creates three electoral divisions for SCVWA and specifies the initial boundaries of those divisions, adjusted after each census according to existing law.
- Provides that as terms for the initial directors expire, directors will be elected by electoral division such that only nine seats will remain, as follows:
- Two directors will be elected for each electoral division at the 2020 general election and at every four years thereafter.
- One director will be elected for each electoral division at the 2022 general election and every four years thereafter.
- Eliminates the appointed director on January 1, 2023, or earlier if District 36 is incorporated into SCVWA.
- Requires a four-fifths supermajority for several actions until January 1, 2025, including to:
- Support or further amendments to the new district’s act;
- Incur new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of SCVWA; and
- Change the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017.
- Requires the board to develop and adopt a ratesetting process that includes an advisory independent ratepayer advocate on or before January 1, 2019. Requires the independent ratepayer advocate to be independent of agency staff, and grants the advocate access to all pertinent agency documents and information. Prohibits abolition of the advocate prior to January 1, 2023, and requires a four-fifths supermajority after that date to abolish the advocate.
- Specifies the powers of SCVWA, which include those of a county water district.
- Prohibits a public corporation or public agency with a substantially similar purpose from being formed within SCVWA without the consent of the board.
- Incorporates numerous provisions of the CLWA Act into the SCVWA Act.
- Requires SCVWA to submit an application for conditions addressing the creation of the agency to the Los Angeles County LAFCO, and specifies minimum contents of the application.
- Requires the Los Angeles County LAFCO to hold a hearing within 60 days, and, within 30 days of the public hearing, prepare and approve a report that includes binding terms and conditions under LAFCO law for the creation of SCVWA that are not inconsistent with the provisions of the bill.
- Requires the LAFCO to certify any powers that were exercised by CLWA and NCWD prior to the formation of SCVWA, and requires any powers or functions provided in the act to SCVWA but not exercised by CLWA and NCWD at the time of formation to only be exercised with LAFCO approval.
- Requires SCVWA to reimburse the LAFCO for all costs associated with the application and preparation of the report.
- Grants SCVWA design-build and construction manager at-risk contracting authority for water recycling projects over $500,000 if, on or before September 30, 2018, the agency has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council that applies to all recycled water program capital facilities construction contracts over $500,000, and makes conforming changes to the Public Contract Code.
- Specifies the contents of the community workforce agreement, including hiring opportunities for local military service veterans and compliance with requirements of a project labor agreement, requires the agreement to last for five years, and allows the agreement to be renewed or modified for additional five-year terms.
- Declares that the bill’s provisions are severable and includes numerous findings and declarations.
- Finds and declares that no reimbursement for a state-mandated local program is required because the local agency has the authority to levy fees to pay for the requirements of the bill, and because the bill is at the request a local agency.
Background
Local Agency Formation Commissions. The Cortese-Knox-Hertzberg Act creates a local agency formation commission (LAFCO) in each county to control the boundaries of cities, county service areas, and most special districts. The courts repeatedly refer to LAFCOs as the Legislature’s watchdog over boundary changes. Local governments can only exercise their powers and provide services where LAFCO allows them to: within their boundaries (which are set by LAFCO), within their spheres of influence but outside their boundaries (with authorization by LAFCO), and outside their spheres to address a major threat to public health if the extension is consistent with LAFCO’s policies. 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.
History of Santa Clarita Valley Water. In 1962, the Legislature created the Upper Santa Clarita Valley Water Agency to provide State Water Project (SWP) water to the Santa Clarita Valley in Los Angeles County. The agency was subsequently renamed the Castaic Lake Water Agency (CLWA). At the time, CLWA was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and two private water companies regulated by the Public Utilities Commission, the Santa Clarita Water Company and Valencia Water Company. The current CLWA board is composed of 11 members: three members elected at large, two members elected for each of three elective divisions, a member appointed by NCWD, and a member appointed by District 36.
There is an extensive history of litigation over water in the Santa Clarita Valley—particularly among NCWD and CLWA. In April 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in December 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations, and on December 13, 2016, the boards of both districts voted to settle with one dissenting vote.
The settlement agreement provided the two districts would jointly seek legislation to create a single new successor entity to build on and lead to greater success in water conservation, groundwater management, and recycled water provision across the Santa Clarita Valley.
Comments
Purpose of the bill. The water governance structure in the Santa Clarita Valley has been muddled for many years. Conflict and litigation between CLWA and NCWD extends back almost two decades, at significant cost to ratepayers. These agencies have confusing and disconnected service areas and have duplicative staff and infrastructure needs that create inefficiencies. Their boards contain an unusual mix of members elected at-large, by-district, and appointed. SB 634 is the culmination of lengthy studies and public outreach to develop water governance that makes sense. It will allow for the gradual elimination of duplicative staff and infrastructure, greater conjunctive use of groundwater, and a transition to entirely directly elected board, by district. It also incorporates an independent ratepayer advocate to ensure that rates are fair. Finally, SB 634 avoids concerns about subsidization among districts because each area bears its own legacy indebtedness, and it provides a role for LAFCO to condition its formation and review its powers. SB 634 presents a fleeting opportunity to resolve a long history of conflict and to benefit the ratepayers of the Santa Clarita Valley.
Horseshoes and hand grenades. The dissolution and formation of districts with as many financial and legal entanglements as CLWA and NCWD is a complex technical and political matter. The Legislature delegated responsibility to LAFCOs for setting boundaries under the principle that an entity closer to the local level would ultimately make wiser decisions, and provided for a protest procedure that gives local residents the opportunity to vote on proposals if there is enough opposition. SB 634 includes some elements of LAFCO review, such as allowing the LAFCO to impose terms and conditions. However, it removes from LAFCO’s hands the ultimate authority to form the new district and instead creates it via statute. This is not necessarily inconsistent with LAFCO law—a LAFCO may not disapprove a consolidation jointly requested by all affected agencies.
The bill does however avoid a protest process, and with it, the potential for a vote on whether the new district should be formed. The bill’s sponsors argue that this is necessary to: (1) take advantage of a heretofore unseen level of collaboration between CLWA and NCWD; and (2) ensure that the process completes prior to November 2018, when elections would ordinarily be scheduled. Opponents argue that voters deserve the right to weigh in on their water governance and are concerned that a vertically integrated water provider—one that provides both wholesale and retail water service—will result in increased rates. Does this bill strike the right balance between streamlining the LAFCO process and retaining its important elements, including a public vote?
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWA (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or the Los Angeles County LAFCO would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs.
Castaic Lake Water Agency (co-source)
Newhall County Water District (co-source)
AMS Fulfillment
Association of California Water Agencies
BizFed
California Building and Construction Trades Council
California Wilderness Coalition
City of Santa Clarita
Climate Resolve
Community Hiking Club
Los Angeles Supervisor Kathryn Barger
San Gabriel Mountains Forever
Santa Clarita City Council
Santa Clarita Economic Development Corporation
Santa Clarita Valley Chamber of Commerce
Southern California Water Committee
Stay Green, Inc.
United Water Conservation District
Valley Industry Association of Santa Clarita
18 Individuals
OPPOSITION: (Verified 9/14/17)
California Native Plant Society
Center for Food Safety
Food & Water Watch
Friends of the Santa Clara River
North Valley Democratic Club
Planning and Conservation League
Progressive Democrats of the Santa Monica Mountains
Santa Clarita Organization for Planning and the Environment
Sierra Club California
ASSEMBLY FLOOR: 62-13, 9/13/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bocanegra, Bonta, Brough, Burke, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Flora, Fong, Gallagher, Eduardo Garcia, Gipson, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Kalra, Kiley, Lackey, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Steinorth, Voepel, Waldron, Weber, Wood, Rendon
NOES: Caballero, Dababneh, Eggman, Frazier, Friedman, Cristina Garcia, Irwin, Jones-Sawyer, Levine, Limón, Muratsuchi, Mark Stone, Ting
NO VOTE RECORDED: Bloom, Gloria, Santiago, Thurmond
9/14/17 10:45:40
SENATE THIRD READING
STR Bill Id:SB 634
Author:(Wilk)
As Amended Ver:September 8, 2017
Majority vote
SENATE VOTE: 34-0
Committee | Votes | Ayes | Noes |
Local Government | 9-0 | Aguiar-Curry, Waldron, Bloom, Caballero, Gonzalez Fletcher, Grayson, Lackey, Ridley-Thomas, Voepel |
|
Water | 13-2 | Eduardo Garcia, Gallagher, Bigelow, Choi, Chu, Nazarian, Harper, Levine, Mathis, Rubio, Salas, Thurmond, Wood | Friedman, Gloria |
Appropriations | 14-0 | Gonzalez Fletcher, Bigelow, Bocanegra, Bonta, Brough, Calderon, Chau, Eggman, Fong, Gallagher, Eduardo Garcia, Jones-Sawyer, Obernolte, Reyes |
|
SUMMARY: Reorganizes the Castaic Lake Water Agency and the Newhall County Water District into the Santa Clarita Valley Water Agency. Specifically, this bill:
- Repeals the act that governs the Castaic Lake Water Agency (CLWA) and establishes the Santa Clarita Valley Water Agency (SCVWA) by reorganizing CLWA and Newhall County Water District (NCWD) into the new Agency, and requires CLWA and NCWD to no longer operate as separate entities or exercise independent functions.
- States the purpose of SCVWA to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of SCVWA.
- Requires SCVWA to be the successor to CLWA and NCWD for the purposes of rights, duties, obligations, contracts, responsibilities, assets, entitlements, liabilities, outstanding bonds, and property.
- Defines the initial boundaries of SCVWA to be the same as CLWA's boundaries as of December 31, 2017, as confirmed by the Los Angeles County LAFCO (LA LAFCO).
- Requires SCVWA, on or before January 31, 2018, to submit to LA LAFCO an application for conditions addressing the creation of SCVWA.
- Requires the application to include a plan for providing services, as specified by LAFCO law, and a map and description of SCVWA's boundaries. Requires the plan for providing services to include Valencia Water Company. Requires the application to identify the functions or class of services exercised by CLWA and NCWD on December 31, 2017.
- Requires LA LAFCO to do the following:
- Hold a public hearing within 60 days;
- Prepare a written report, which may include binding terms and conditions, for the creation of SCVWA that are consistent with the provisions of this bill;
- Post the written report on the LA LAFCO Internet Web site, and make it available to the public, as specified;
- Approve the written report within 30 days; and,
- Certify any powers that were exercised by CLWA and NCWD prior to the formation of SCVWA.
- Requires any powers or functions provided in this bill to SCVWA, but not exercised by CLWA and NCWD at the time of formation, to only be exercised with LA LAFCO approval.
- Prohibits LA LAFCO from imposing any condition on SCVWA that requires protest or election proceedings, pursuant to LAFCO law.
- Requires SCVWA to reimburse LA LAFCO for all specified costs.
- Requires all employees of CLWA and NCWD to become employees of SCVWA.
- Requires SCVWA, if SCVWA establishes a contract with the Public Employees' Retirement System (PERS), to be the successor to CLWA and NCWD for the purposes of continuity of membership in PERS for employees, as specified.
- Applies provisions in existing law that require CLWA to award construction contracts to the lowest responsible bidder, except as specified, when cost estimates exceed $5,000, to SCVWA, and increases the threshold to $30,000.
- Authorizes SCVWA, as a pilot program, to award contracts for recycled water program capital facilities construction projects over $500,000 using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, SCVWA has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council, as specified.
- Requires the pilot community workforce agreement to be for a five-year term, upon approval of the SCVWA Board, and to comply with existing law which governs project labor agreements.
- Authorizes SCVWA to continue to levy, impose, fix, and collect any previously authorized charges, fees, assessments, or taxes approved by CLWA and NCWD, including, but not limited to, any charges for water which shall remain in effect until modified by SCVWA's Board.
- Requires SCVWA to be the successor in interest to CLWA's State Department of Water Resources contract and all associated rights, responsibilities, and obligations.
- Requires the indebtedness of NCWD and the Santa Clarita Water Division, a retail division of CLWA, to be borne by retail divisions of SCVWA and to be paid for from the revenues of the corresponding retail divisions.
- Requires SCVWA to continue to supply water at wholesale to Los Angeles Waterworks District No. 36, Val Verde (District 36). Prohibits SCVWA from serving retail water within District 36, unless District 36 consents or mutually agrees to be annexed or consolidated into SCVWA, subject to LAFCO law.
- Requires any future proposed changes of organization or reorganization involving SCVWA and District 36 or any other public agency to be subject to LAFCO law.
- Requires SCVWA to continue to supply water at wholesale to Valencia Water Company.
- Requires SCVWA, as the successor in interest to CLWA, to take the appropriate steps together with the Valencia Water Company board of directors to authorize the dissolution of Valencia Water Company and the transfer of its assets, property, liabilities, and indebtedness to SCVWA no later than January 31, 2018. Requires the dissolution and transfer to be finalized no later than May 1, 2018, but allows SCVWA's board to postpone this deadline until no later than July 1, 2018, by resolution with a finding of specific circumstances that necessitate additional time.
- Prohibits the transfer of Valencia Water Company from being subject to LAFCO.
- Requires indebtedness of a retail water supplier that is integrated into SCVWA, including Valencia Water Company, to be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
- Allows SCVWA to treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of SCVWA as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness must be allocated to each retail division and paid from that retail division's rates and charges. Requires SCVWA to eliminate the retail divisions for all purposes as soon as feasible after retiring all preexisting indebtedness.
- Establishes boundaries for three electoral divisions within SCVWA, and authorizes the electoral division boundaries to be adjusted, pursuant to existing law.
- Establishes an initial 15-member board of directors (Board), as follows:
- Five elected members of NCWD's board of directors, in office as of December 31, 2017;
- Nine elected members of CLWA's board of directors, in office as of December 31 2017; and,
- One appointed member of CLWA's board of directors representing District 36.
- Establishes requirements for the residency and electoral divisions for the members of the Board, including initial directors, and requires directors to be elected at the time and in the manner provided by the Uniform District Election Law, which governs elections for special districts.
- Extends, by two years, the terms for the initial Board members whose terms expire in 2018 and 2020.
- Requires, as terms for the initial directors expire, directors to be elected by electoral divisions to comprise the SCVWA's nine-member Board, as follows:
- Six directors, two members from each electoral division, elected at the 2020 general election and every four years thereafter; and,
- Three directors, one member from each electoral division, elected at the 2022 general election and every four years thereafter.
- Establishes four-year terms for directors and a process to fill vacancies.
- Provides an appointment process for the appointed member of the Board, and eliminates the position of the appointed director effective January 1, 2023. Authorizes the appointed position to be eliminated and abolished prior to that date, if specified conditions are met.
- Provides that the statutes that govern incompatible activities for a local agency officer or employee are not applicable to the appointed director, as specified.
- Requires the Board to hold its first meeting as soon as possible, to choose a director as president, and to appoint its directors as additional officers.
- Authorizes the Board to act by ordinance, resolution, or motion. Provides that a majority of the Board constitutes a quorum for the transaction of business. Establishes requirements for the recordation of votes and ordinances.
- Requires Board members to receive compensation equal to the amount of compensation authorized for CLWA as of December 31, 2017, as specified.
- Requires a four-fifths vote of the Board until January 1, 2025, for the following actions:
- Authorizing SCVWA to support or further amendments to SCVWA's Act;
- Issuing new debt exceeding $10 million for any single debt issue, as it relates to any retail functions of SCVWA, excluding the refinancing of existing debt. Requires the $10 million threshold to be adjusted annually in proportion to the assessed value of real property in SCVWA; and,
- Changing the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017, for the retail division of SCVWA that corresponds with NCWD.
- Requires SCVWA to develop and adopt a rate setting process that includes an advisory independent ratepayer advocate, as specified, on or before January 1, 2019. Requires a four-fifths vote, until January 1, 2023, and a majority thereafter, for any changes to the independent ratepayer advocate role.
- Requires the Board, at the first meeting or as soon as practicably possible, to appoint a general manager, secretary, and treasurer or auditor by a majority vote of the Board. Requires the Board to define the duties of the appointees and to fix their compensation, pursuant to existing law. Authorizes the Board to employ additional employees as deemed necessary to efficiently maintain and operate SCVWA.
- Provides SCVWA with the same powers granted to a county water district, as well as the following powers to:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout SCVWA;
- Construct, operate, and maintain works to develop energy, including but not limited to, hydroelectric, solar, wind and other renewable sources, inside or outside SCVWA for use of SCVWA or to sell the energy at wholesale to any public agency or private entity;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of SCVWA and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Enter into contracts with public agencies or private entities engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of SCVWA, either inside or outside SCVWA;
- Join with one or more public agencies, private corporations, or other persons for the purposes of carrying out any of the powers of SCVWA, as specified;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Join one or more local agencies to form a groundwater sustainability agency, and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within SCVWA;
- Contract with the purveyor or successor in interest to the purveyor;
- Construct works along and across any stream of water, street, highway or railway, if it restores those crossings to their prior state;
- Pursuant to existing law, levy and collect standby charges in connection with the provision of water service, as well as capacity charges and connection fees; and,
- Annex and contain lands situated in more than one county.
- Provides that nothing in this bill affects the application of local, state, or federal law to the development of property within SCVWA.
- Authorizes SCVWA to prescribe, by resolution or ordinance, rules and regulations for unpaid capacity charges or connection fees. Requires delinquent and unpaid capacity charges or connection fees to be collected by annual taxes levied on the property and establishes a lien on the property, as specified.
- Provides that the County Water District Law shall govern the formation, operation, and dissolution of all improvement districts, and authorizes the Board to advance general funds to accomplish the purposes of an improvement district formed, as specified.
- Prohibits a public corporation or public agency with a substantially similar purpose from being formed within SCVWA without the consent of the Board.
- Repeals provisions in existing law that require protest proceedings, if the 10% threshold is met for the dissolution of NCWD.
FISCAL EFFECT: According to the Assembly Appropriations Committee:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWA (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or LA LAFCO would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs, and because the bill was requested by an entity that could incur mandated costs.
COMMENTS:
- CLWA and NCWD. The Legislature established the Upper Santa Clarita Valley Water Agency, subsequently renamed the Castaic Lake Water Agency (CLWA), as a contractor agency to the State Water Project (SWP) to provide water to the Santa Clarita Valley in Los Angeles County (County). CLWA was authorized to deliver water wholesale to public or private water agencies within its boundaries that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angeles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and, two private water companies, the Santa Clarita Water Company (SCWC) and Valencia Water Company.
- Bill Summary. This bill repeals CLWA's act and creates the Santa Clarita Valley Water Agency (SCVWA) by reorganizing CLWA and NCWD into the new Agency. This bill establishes SCVWA as the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. This bill provides that the purpose of SCVWA is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale, and provide a means to unify and modernize water resource management within the Santa Clarita Valley. The initial boundaries of SCVWA are the same as CLWA's boundaries on December 31, 2017, and as confirmed by LA LAFCO. Under this bill, fees and charges imposed by CLWA and NCWD continue to be levied until the SCVWA's Board modifies them, and SCVWA is the successor in interest to CLWA's SWP contract and all associated rights and responsibilities.
This bill creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. This bill requires SCVWA to continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and SCVWA must take the appropriate steps to dissolve the company and transfer its assets and liabilities to SCVWA.
This bill provides SCVWA with the same powers as a county water district and incorporates numerous provisions of CLWA's act. Under this bill, SCVWA is granted powers, including the authority to acquire water rights, construct and operate works to develop and sell energy, to develop, treat, distribute and reclaim water, and to recover water from groundwater basins, participate in a groundwater sustainability agency, and to levy and collect standby charges for the provision of water service, as well as capacity charges and connection fees. This bill is co-sponsored by CLWA and NCWD.
Governance. This bill establishes SCVWA's initial Board to include the five current NCWD board members, nine current CLWA elected board members, and one CLWA board member appointed by District 36. This bill provides a process by which the initial 15-member Board will transition into a nine-member elected Board. Under this bill, SCVWA will be divided into three electoral divisions. Six directors will be elected, two from each division, in the 2020 general election. Three directors will be elected, one from each division, in the 2022 general election. The terms for the initial Board members are extended and the appointed member on CLWA's board will be eliminated.
This bill requires a supermajority four-fifths vote of the SCVWA's Board to take a number of actions. For example, this bill requires the Board to develop and adopt a rate setting process, including an advisory independent ratepayer advocate by January 1, 2019.
LAFCO. LAFCOs are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structures, and preparing a sphere of influence for each city and special district within each county. LAFCO law establishes procedures for local government changes of organization, including special district consolidations. The formation of SCVWA is not subject to the usual LAFCO process. This bill creates SCVWA and establishes a modified LAFCO process. This bill requires SCVWA, by January 31, 2018, to submit to LA LAFCO an application for conditions, which addresses its creation, including a plan for providing services. The LAFCO must hold a hearing within 60 days and prepare a written report that includes terms and conditions, pursuant to LAFCO law, which must be consistent with the provisions of SCVWA's Act established by this bill. The written report must be made public and must certify the functions and services that were being exercised by CLWA and NCWD on December 31, 2017. This bill provides that a property tax exchange is not required and prohibits LAFCO from imposing any condition on SCVWA that will require protest or election proceedings.
- Author's Statement. According to the author, "In alignment with state goals for integrated, regional approaches to water management, this bill will consolidate service and provide the Santa Clarita Valley with a regional water supply rather than the patchwork of retail water utility providers that exists currently, improving reliability and bringing a savings of approximately $14 million over the next 10 years to the benefit of ratepayers. An ongoing chloride level issue in the Santa Clara River has proven difficult to confront from a divided front; a consolidated approach will enhance the ability to combat water quality issues, includ[ing] chloride contamination. Further, infrastructural incompatibility between service areas serves as a barrier to conjunctive use, impacting quality and cost of water with sometimes vast discrepancies from street to street. This too will be solved through SB 634 as compatibility retrofitting will now be made possible. Finally, the agencies involved have spent years litigating water rates and management issues. This bill is a culmination of years of negotiations between the two sides and with the passing of this bill and consolidation of the agencies, tax dollars will no longer be wasted on lawyer fees and can be better utilized to serve the ratepayers and residents."
- History. There is an extensive history of litigation over water in the Santa Clarita Valley, including between the co-sponsors of this bill. In particular, this litigation has been over whether CLWA can provide retail water service. In 1999, CLWA purchased SCWC. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either a wholesaler to which the water would have otherwise been sold, or a public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
Following litigation regarding the authority provided to CLWA in its act, the agency sponsored AB 134 (Kelly), Chapter 929, Statutes of 2001, which 1) granted CLWA the authority to exercise the powers provided to county water districts and provided clarity to CLWA's authority to provide retail water service to SCWC boundaries; 2) prohibited CLWA from serving water to retail customers in NCWD's boundaries, unless it has the approval of NCWD; 3) prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority, instead of going through the typical LAFCO process to exercise new powers; and, 4) required the approval of NCWD before CLWA could serve water to retail customers located within NCWD's boundaries but who were not receiving service.
In 2012, CLWA acquired all of the outstanding stock of Valencia Water Company. In 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations. On December 13, 2016, the boards of both districts voted to settle with one dissenting vote. The settlement agreement provided that the two districts would jointly seek legislation (this bill) to create a single new successor entity.
- Arguments in Support. CLWA states, "This new district will be able to integrate systems of NCWD and CLWA, leverage economics of scale and operational efficiencies to save ratepayer funds. Because of the integrated planning opportunities, it is believed the agencies will be able to secure more grant dollars and build regional projects, including a recycled water system. Additionally, the new district will implement a division-based election system fully compliant with California Voting Rights Act."
- Arguments in Opposition. The Planning and Conservation League argues, "This bill is touted as a consolidation and creation of a new agency. It appears instead to actually be a takeover of [NCWD] and the extending of County Water District powers to [CLWA], a state water wholesaler, currently excluded from pumping groundwater….Support the democratic process – [NCWD] voters should be able to vote on whether or not they want to dissolve…The new district should not be created unless and until Valencia Water Co. is included in the merger, not six months afterwards. This section is unenforceable."
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0002117
SENATE THIRD READING
STR Bill Id:SB 634
Author:(Wilk)
As Amended Ver:September 5, 2017
Majority vote
SENATE VOTE: 34-0
Committee | Votes | Ayes | Noes |
Local Government | 9-0 | Aguiar-Curry, Waldron, Bloom, Caballero, Gonzalez Fletcher, Grayson, Lackey, Ridley-Thomas, Voepel | |
Water | 13-2 | Eduardo Garcia, Gallagher, Bigelow, Choi, Chu, Nazarian, Harper, Levine, Mathis, Rubio, Salas, Thurmond, Wood | Friedman, Gloria |
Appropriations | 14-0 | Gonzalez Fletcher, Bigelow, Bocanegra, Bonta, Brough, Calderon, Chau, Eggman, Fong, Gallagher, Eduardo Garcia, Jones-Sawyer, Obernolte, Reyes |
SUMMARY: Reorganizes the Castaic Lake Water Agency and the Newhall County Water District into the Santa Clarita Valley Water Agency. Specifically, this bill:
- Repeals the act that governs the Castaic Lake Water Agency (CLWA) and establishes the Santa Clarita Valley Water Agency (SCVWA) by reorganizing CLWA and Newhall County Water District (NCWD) into the new Agency, and requires CLWA and NCWD to no longer operate as separate entities or exercise independent functions.
- States the purpose of SCVWA to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of SCVWA.
- Requires SCVWA to be the successor to CLWA and NCWD for the purposes of rights, duties, obligations, contracts, responsibilities, assets, entitlements, liabilities, outstanding bonds, and property.
- Defines the initial boundaries of SCVWA to be the same as CLWA's boundaries as of December 31, 2017, as confirmed by the Los Angeles County LAFCO (LA LAFCO).
- Requires SCVWA, on or before January 31, 2018, to submit to LA LAFCO an application for conditions addressing the creation of SCVWA.
- Requires the application to include a plan for providing services, as specified by LAFCO law, and a map and description of SCVWA's boundaries. Requires the plan for providing services to include Valencia Water Company. Requires the application to identify the functions or class of services exercised by CLWA and NCWD on December 31, 2017.
- Requires LA LAFCO to do the following:
- Hold a public hearing within 60 days;
- Prepare a written report, which may include binding terms and conditions, for the creation of SCVWA that are consistent with the provisions of this bill;
- Post the written report on the LA LAFCO Internet Web site, and make it available to the public, as specified;
- Approve the written report within 30 days; and,
- Certify any powers that were exercised by CLWA and NCWD prior to the formation of SCVWA.
- Requires any powers or functions provided in this bill to SCVWA, but not exercised by CLWA and NCWD at the time of formation, to only be exercised with LA LAFCO approval.
- Prohibits LA LAFCO from imposing any condition on SCVWA that requires protest or election proceedings, pursuant to LAFCO law.
- Requires SCVWA to reimburse LA LAFCO for all specified costs.
- Requires all employees of CLWA and NCWD to become employees of SCVWA.
- Requires SCVWA, if SCVWA establishes a contract with the Public Employees' Retirement System (PERS), to be the successor to CLWA and NCWD for the purposes of continuity of membership in PERS for employees, as specified.
- Applies provisions in existing law, which require CLWA to award construction contracts when cost estimates exceed $5,000 to the lowest responsible bidder to SCVWA and increases the threshold to $40,000.
- Authorizes SCVWA, as a pilot program, to award contracts for recycled water program capital facilities construction projects over $500,000 using the design-build contracting process or using construction manager at-risk contracts if, on or before September 30, 2018, SCVWA has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council, as specified.
- Requires the pilot community workforce agreement to be for a five-year term, upon approval of the SCVWA Board, and to comply with existing law which governs project labor agreements.
- Authorizes SCVWA to continue to levy, impose, fix, and collect any previously authorized charges, fees, assessments, or taxes approved by CLWA and NCWD, including, but not limited to, any charges for water which shall remain in effect until modified by SCVWA's Board.
- Requires SCVWA to be the successor in interest to CLWA's State Department of Water Resources contract and all associated rights, responsibilities, and obligations.
- Requires the indebtedness of NCWD and the Santa Clarita Water Division, a retail division of CLWA, to be borne by retail divisions of SCVWA and to be paid for from the revenues of the corresponding retail divisions.
- Requires SCVWA to continue to supply water at wholesale to Los Angeles Waterworks District No. 36, Val Verde (District 36). Prohibits SCVWA from serving retail water within District 36, unless District 36 consents or mutually agrees to be annexed or consolidated into SCVWA, subject to LAFCO law.
- Requires any future proposed changes of organization or reorganization involving SCVWA and District 36 or any other public agency to be subject to LAFCO law.
- Requires SCVWA to continue to supply water at wholesale to Valencia Water Company.
- Requires SCVWA, as the successor in interest to CLWA, to take the appropriate steps together with the Valencia Water Company board of directors to authorize the dissolution of Valencia Water Company and the transfer of its assets, property, liabilities, and indebtedness to SCVWA no later than January 31, 2018. Requires the dissolution and transfer to be finalized no later than May 1, 2018, but allows SCVWA's board to postpone this deadline until no later than July 1, 2018, by resolution with a finding of specific circumstances that necessitate additional time.
- Prohibits the transfer of Valencia Water Company from being subject to LAFCO.
- Requires indebtedness of a retail water supplier that is integrated into SCVWA, including Valencia Water Company, to be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
- Allows SCVWA to treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of SCVWA as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness must be allocated to each retail division and paid from that retail division's rates and charges. Requires SCVWA to eliminate the retail divisions for all purposes as soon as feasible after retiring all preexisting indebtedness.
- Establishes boundaries for three electoral divisions within SCVWA, and authorizes the electoral division boundaries to be adjusted, pursuant to existing law.
- Establishes an initial 15-member board of directors (Board), as follows:
- Five elected members of NCWD's board of directors, in office as of December 31, 2017;
- Nine elected members of CLWA's board of directors, in office as of December 31 2017; and,
- One appointed member of CLWA's board of directors representing District 36.
- Establishes requirements for the residency and electoral divisions for the members of the Board, including initial directors, and requires directors to be elected at the time and in the manner provided by the Uniform District Election Law, which governs elections for special districts.
- Extends, by two years, the terms for the initial Board members whose terms expire in 2018 and 2020.
- Requires, as terms for the initial directors expire, directors to be elected by electoral divisions to comprise the SCVWA's nine-member Board, as follows:
- Six directors, two members from each electoral division, elected at the 2020 general election and every four years thereafter; and,
- Three directors, one member from each electoral division, elected at the 2022 general election and every four years thereafter.
- Establishes four-year terms for directors and a process to fill vacancies.
- Provides an appointment process for the appointed member of the Board, and eliminates the position of the appointed director effective January 1, 2023. Authorizes the appointed position to be eliminated and abolished prior to that date, if specified conditions are met.
- Provides that the statutes that govern incompatible activities for a local agency officer or employee are not applicable to the appointed director, as specified.
- Requires the Board to hold its first meeting as soon as possible, to choose a director as president, and to appoint its directors as additional officers.
- Authorizes the Board to act by ordinance, resolution, or motion. Provides that a majority of the Board constitutes a quorum for the transaction of business. Establishes requirements for the recordation of votes and ordinances.
- Requires Board members to receive compensation equal to the amount of compensation authorized for CLWA as of December 31, 2017, as specified.
- Requires a four-fifths vote of the Board until January 1, 2025, for the following actions:
- Authorizing SCVWA to support or further amendments to SCVWA's Act;
- Issuing new debt exceeding $10 million for any single debt issue, as it relates to any retail functions of SCVWA, excluding the refinancing of existing debt. Requires the $10 million threshold to be adjusted annually in proportion to the assessed value of real property in SCVWA; and,
- Changing the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017, for the retail division of SCVWA that corresponds with NCWD.
- Requires SCVWA to develop and adopt a rate setting process that includes an advisory independent ratepayer advocate, as specified, on or before January 1, 2019. Requires a four-fifths vote, until January 1, 2023, and a majority thereafter, for any changes to the independent ratepayer advocate role.
- Requires the Board, at the first meeting or as soon as practicably possible, to appoint a general manager, secretary, and treasurer or auditor by a majority vote of the Board. Requires the Board to define the duties of the appointees and to fix their compensation, pursuant to existing law. Authorizes the Board to employ additional employees as deemed necessary to efficiently maintain and operate SCVWA.
- Provides SCVWA with the same powers granted to a county water district, as well as the following powers to:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout SCVWA;
- Construct, operate, and maintain works to develop energy, including but not limited to, hydroelectric, solar, wind and other renewable sources, inside or outside SCVWA for use of SCVWA or to sell the energy at wholesale to any public agency or private entity;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of SCVWA and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Enter into contracts with public agencies or private entities engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of SCVWA, either inside or outside SCVWA;
- Join with one or more public agencies, private corporations, or other persons for the purposes of carrying out any of the powers of SCVWA, as specified;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Join one or more local agencies to form a groundwater sustainability agency, and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within SCVWA;
- Contract with the purveyor or successor in interest to the purveyor;
- Construct works along and across any stream of water, street, highway or railway, if it restores those crossings to their prior state;
- Pursuant to existing law, levy and collect standby charges in connection with the provision of water service, as well as capacity charges and connection fees; and,
- Annex and contain lands situated in more than one county.
- Provides that nothing in this bill affects the application of local, state, or federal law to the development of property within SCVWA.
- Authorizes SCVWA to prescribe, by resolution or ordinance, rules and regulations for unpaid capacity charges or connection fees. Requires delinquent and unpaid capacity charges or connection fees to be collected by annual taxes levied on the property and establishes a lien on the property, as specified.
- Provides that the County Water District Law shall govern the formation, operation, and dissolution of all improvement districts, and authorizes the Board to advance general funds to accomplish the purposes of an improvement district formed, as specified.
- Prohibits a public corporation or public agency with a substantially similar purpose from being formed within SCVWA without the consent of the Board.
- Repeals provisions in existing law that require protest proceedings, if the 10% threshold is met for the dissolution of NCWD.
FISCAL EFFECT: According to the Assembly Appropriations Committee:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWA (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or LA LAFCO would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs, and because the bill was requested by an entity that could incur mandated costs.
COMMENTS:
- CLWA and NCWD. The Legislature established the Upper Santa Clarita Valley Water Agency, subsequently renamed the Castaic Lake Water Agency (CLWA), as a contractor agency to the State Water Project (SWP) to provide water to the Santa Clarita Valley in Los Angeles County (County). CLWA was authorized to deliver water wholesale to public or private water agencies within its boundaries that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angeles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and, two private water companies, the Santa Clarita Water Company (SCWC) and Valencia Water Company.
- Bill Summary. This bill repeals CLWA's act and creates the Santa Clarita Valley Water Agency (SCVWA) by reorganizing CLWA and NCWD into the new Agency. This bill establishes SCVWA as the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. This bill provides that the purpose of SCVWA is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale, and provide a means to unify and modernize water resource management within the Santa Clarita Valley. The initial boundaries of SCVWA are the same as CLWA's boundaries on December 31, 2017, and as confirmed by LA LAFCO. Under this bill, fees and charges imposed by CLWA and NCWD continue to be levied until the SCVWA's Board modifies them, and SCVWA is the successor in interest to CLWA’s SWP contract and all associated rights and responsibilities.
This bill creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. This bill requires SCVWA to continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and SCVWA must take the appropriate steps to dissolve the company and transfer its assets and liabilities to SCVWA.
This bill provides SCVWA with the same powers as a county water district and incorporates numerous provisions of CLWA's act. Under this bill, SCVWA is granted powers, including the authority to acquire water rights, construct and operate works to develop and sell energy, to develop, treat, distribute and reclaim water, and to recover water from groundwater basins, participate in a groundwater sustainability agency, and to levy and collect standby charges for the provision of water service, as well as capacity charges and connection fees. This bill is co-sponsored by CLWA and NCWD.
Governance. This bill establishes SCVWA's initial Board to include the five current NCWD board members, nine current CLWA elected board members, and one CLWA board member appointed by District 36. This bill provides a process by which the initial 15-member Board will transition into a nine-member elected Board. Under this bill, SCVWA will be divided into three electoral divisions. Six directors will be elected, two from each division, in the 2020 general election. Three directors will be elected, one from each division, in the 2022 general election. The terms for the initial Board members are extended and the appointed member on CLWA's board will be eliminated.
This bill requires a supermajority four-fifths vote of the SCVWA's Board to take a number of actions. For example, this bill requires the Board to develop and adopt a rate setting process, including an advisory independent ratepayer advocate by January 1, 2019.
LAFCO. LAFCOs are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structures, and preparing a sphere of influence for each city and special district within each county. LAFCO law establishes procedures for local government changes of organization, including special district consolidations. The formation of SCVWA is not subject to the usual LAFCO process. This bill creates SCVWA and establishes a modified LAFCO process. This bill requires SCVWA, by January 31, 2018, to submit to LA LAFCO an application for conditions, which addresses its creation, including a plan for providing services. The LAFCO must hold a hearing within 60 days and prepare a written report that includes terms and conditions, pursuant to LAFCO law, which must be consistent with the provisions of SCVWA's Act established by this bill. The written report must be made public and must certify the functions and services that were being exercised by CLWA and NCWD on December 31, 2017. This bill provides that a property tax exchange is not required and prohibits LAFCO from imposing any condition on SCVWA that will require protest or election proceedings.
- Author's Statement. According to the author, "In alignment with state goals for integrated, regional approaches to water management, this bill will consolidate service and provide the Santa Clarita Valley with a regional water supply rather than the patchwork of retail water utility providers that exists currently, improving reliability and bringing a savings of approximately $14 million over the next 10 years to the benefit of ratepayers. An ongoing chloride level issue in the Santa Clara River has proven difficult to confront from a divided front; a consolidated approach will enhance the ability to combat water quality issues, includ[ing] chloride contamination. Further, infrastructural incompatibility between service areas serves as a barrier to conjunctive use, impacting quality and cost of water with sometimes vast discrepancies from street to street. This too will be solved through SB 634 as compatibility retrofitting will now be made possible. Finally, the agencies involved have spent years litigating water rates and management issues. This bill is a culmination of years of negotiations between the two sides and with the passing of this bill and consolidation of the agencies, tax dollars will no longer be wasted on lawyer fees and can be better utilized to serve the ratepayers and residents."
- History. There is an extensive history of litigation over water in the Santa Clarita Valley, including between the co-sponsors of this bill. In particular, this litigation has been over whether CLWA can provide retail water service. In 1999, CLWA purchased SCWC. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either a wholesaler to which the water would have otherwise been sold, or a public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
Following litigation regarding the authority provided to CLWA in its act, the agency sponsored AB 134 (Kelly), Chapter 929, Statutes of 2001, which 1) granted CLWA the authority to exercise the powers provided to county water districts and provided clarity to CLWA's authority to provide retail water service to SCWC boundaries; 2) prohibited CLWA from serving water to retail customers in NCWD's boundaries, unless it has the approval of NCWD; 3) prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority, instead of going through the typical LAFCO process to exercise new powers; and, 4) required the approval of NCWD before CLWA could serve water to retail customers located within NCWD's boundaries but who were not receiving service.
In 2012, CLWA acquired all of the outstanding stock of Valencia Water Company. In 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations. On December 13, 2016, the boards of both districts voted to settle with one dissenting vote. The settlement agreement provided that the two districts would jointly seek legislation (this bill) to create a single new successor entity.
- Arguments in Support. CLWA states, "This new district will be able to integrate systems of NCWD and CLWA, leverage economics of scale and operational efficiencies to save ratepayer funds. Because of the integrated planning opportunities, it is believed the agencies will be able to secure more grant dollars and build regional projects, including a recycled water system. Additionally, the new district will implement a division-based election system fully compliant with California Voting Rights Act."
- Arguments in Opposition. The Planning and Conservation League argues, "This bill is touted as a consolidation and creation of a new agency. It appears instead to actually be a takeover of [NCWD] and the extending of County Water District powers to [CLWA], a state water wholesaler, currently excluded from pumping groundwater….Support the democratic process – [NCWD] voters should be able to vote on whether or not they want to dissolve…The new district should not be created unless and until Valencia Water Co. is included in the merger, not six months afterwards. This section is unenforceable."
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0001920
Date of Hearing: August 23, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 634
Author:(Wilk) – As Amended Ver:August 21, 2017
Policy Committee: | Local Government | Vote: | 9 - 0 |
Water, Parks and Wildlife | 13 - 2 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill reorganizes the Castaic Lake Water Agency (CLWA) and the Newhall County Water District (NCWD) into the Santa Clarita Valley Water District (SCVWD) to provide, sell, manage, and deliver water at retail or wholesale within the district’s territory. The bill also provides for the dissolution of the Valencia Water Company and the transfer of the company’s assets, property, liabilities, and indebtedness to the SCVWD, as specified. The most recent amendments do the following:
- Require that if SCVWD establishes a contract with the Public Employees" Retirement System (PERS), it must be the successor agency to CLWD and NCWD for purposes of continuity of membership in PERS for employees.
- Require the SCVWD ratepayer advocate to be independent from SCVWD staff and to advocate on behalf of customers within the districts' boundaries to the board of directors.
- Authorize SCVWD, through a pilot program, to award contracts for recycled water program capital facilities construction projects over $500,000 using the design-build construction process or using construction manager at-risk contracts if, by September 30, 2018, SCVWD has entered into a community workforce agreement with the Los Angeles/Orange Counties Building and Construction Trades Council, as specified.
FISCAL EFFECT:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWD (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or the Los Angeles County Local Agency Formation Commission (LAFCO) would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs.
COMMENTS:
- Purpose. According to the author, "In alignment with state goals for integrated, regional approaches to water management this bill will consolidate service and provide the Santa Clarita Valley with a regional water supply rather than the patchwork of retail water utility providers that exists currently, improving reliability and bringing a savings of approximately $14 million over the next 10 years to the benefit of ratepayers. The current patchwork presents a number of difficulties to residents and the providers themselves. An ongoing chloride level issue in the Santa Clara River has proven difficult to confront from a divided front, a consolidated approach will enhance the ability to combat water quality issues including chloride contamination. Further, infrastructural incompatibility between service areas serves as a barrier to conjunctive use, impacting quality and cost of water with sometimes vast discrepancies from street to street. This too will be solved through SB 634 as compatibility retrofitting will now be made possible. Finally, the agencies involved have spent years in the courts doing battle over water rights issues. This costly litigation has racked up millions of taxpayer dollars and cost both sides heavily. This bill is a culmination of years of negotiations between the two sides and with the passing of this bill and consolidation of the agencies tax dollars will no longer be wasted on lawyer fees and can be better utilized to serve the ratepayers and residents."
- Background. The Santa Clarita Valley is part of the upper watershed of Santa Clara River in Los Angeles County and has a population of approximately 270,000 people. Much of the Santa Clarita Valley lies over a high priority groundwater basin that is required to be sustainably managed under the Sustainable Groundwater Management Act (SGMA).
In 1962, the Legislature created the Upper Santa Clarita Valley Water Agency to provide State Water Project (SWP) water to the Santa Clarita Valley in Los Angeles County. The agency was subsequently renamed the Castaic Lake Water Agency. At the time, CLWA was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers. Initially, four retail entities received water from CLWA: two public water districts, Los Angles Waterworks District No. 36 (District 36) and NCWD; and two private water companies regulated by the Public Utilities Commission, the Santa Clarita Water Company and Valencia Water Company. The current CLWA board is composed of 11 members: three members elected at large, two members elected for each of three elective divisions, a member appointed by NCWD, and a member appointed by District 36.
There is an extensive history of litigation over water in the Santa Clarita Valley, especially among NCWD and CLWA. In particular, litigation has arisen over whether CLWA can provide retail water service. In 1999, CLWA purchased the Santa Clarita Water Company. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." The CLWA's purchase of the SCWC was criticized by some residents and one of the CLWA's board members, ultimately resulting in litigation over whether CLWA had exceeded the authority provided in its founding statute. In order to settle the issue, CLWA, believing that existing law was sufficient authority to support the purchase, sponsored 134 (Kelly), Chapter 929, Statues of 2001, to clarify that authority.
In 2012, CLWA acquired all of the outstanding stock of Valencia Water Company. Typically, private water suppliers are regulated by the Public Utilities Commission (PUC). Valencia Water Company was regulated by the PUC until April 2014, when the PUC found that it no longer had oversight through Valencia Water Company’s stock being acquired by CLWA in December 2012. In 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations. On December 13, 2016, the boards of both districts voted to settle with one dissenting vote. The settlement agreement provided that the two districts would jointly seek legislation (this bill) to create a single new successor entity.
- Prior Legislation: AB 134 (Kelly), Chapter 929, Statues of 2001, among other things, granted CLWA the authority to exercise the powers provided to county water districts and prohibited the CLWA from exporting groundwater.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: July 11, 2017
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Eduardo Garcia, Chair
SBPCA Bill Id:SB 634
Author:(Wilk) – As Amended Ver:May 26, 2017
SENATE VOTE: 34-0
SUBJECT: Santa Clarita Valley Water District
SUMMARY: Reorganizes the Castaic Lake Water Agency (CLWA) and the Newhall County Water District (NCWD) into the Santa Clarita Valley Water District (District). Specifically, this bill:
- Repeals the act that governs CLWA and establishes the District by reorganizing CLWA and NCWD into the new District. Requires CLWA and NCWD to be reorganized into the District and requires CLWA and NCWD to no longer operate as separate entities or exercise independent functions.
- Requires the District to be the successor in interest to CLWA's State Department of Water Resources contract and all associated rights, responsibilities, and obligations.
- Requires the District, on or before January 31, 2018, to submit to the Los Angeles Local Agency Formation Commission (LA LAFCO) an application for conditions addressing the creation of the District.
- Requires the application to include a plan for providing services, as specified by LAFCO law, and a map and description of the District's boundaries. Requires the application to identify the functions or class of services exercised by CLWA and NCWD on December 31, 2017.
- Prohibits LA LAFCO from imposing any condition on the District that requires protest or election proceedings, pursuant to LAFCO law.
- Requires any future proposed changes of organization or reorganization involving the District and Los Angeles Waterworks District No. 36 Val Verde (District 36) or any other public agency to be subject to filing with LA LAFCO and subject to review, consideration, and determination by LA LAFCO consistent with LAFCO law.
- Establishes an initial 15-member board of directors (Board) for the District comprised of NCWD’s board, CLWA’s board, and one appointed member representing District 36. Establishes three electoral divisions within the District, and by 2022 becomes a 9-member board of directors that has three directors from each division.
- Requires a four-fifths vote of the Board for all of the following actions:
- Authorizing the District to support or further amendments to the District's Act;
- Issuing new debt exceeding $10 million for any single debt issue as it relates to any retail functions of the District, excluding the refinancing of existing debt. Requires the $10 million threshold to be adjusted annually in proportion to the assessed value of real property in the District; and,
- Changing the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017, for the retail division of the District that corresponds with NCWD.
- Requires the Board to develop and adopt a rate setting process that includes an advisory independent ratepayer advocate on or before January 1, 2019. Requires a four-fifths vote, until January 1, 2025, and a majority thereafter, for any changes to the independent ratepayer advocate or rate setting process.
- Provides the District with the same powers granted to a county water district, as well as, among other powers, the following powers:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System (State Water Project), and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the District;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the District and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Join with one or more public agencies, private corporations, or other persons for the purposes of carrying out any of the powers of the District, as specified;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Join one or more local agencies to form a groundwater sustainability agency, and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the District;
- Contract with the purveyor or successor in interest to the purveyor;
- Annex and contain lands situated in more than one county.
- Requires the indebtedness of NCWD and the Santa Clarita Water Division, a retail division of CLWA, to be borne by retail divisions of the District and to be paid for from the revenues of the corresponding retail divisions.
- Requires indebtedness of a retail water supplier that is incorporated into the District, including Valencia Water Company, to be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
- Requires the District to eliminate the retail divisions for all purposes as soon as feasible after retiring all preexisting indebtedness.
- Requires the District to continue to supply water at wholesale to District 36. Prohibits the District from serving retail water within District 36, unless District 36 consents or mutually agrees to be incorporated into the District, subject to local agency formation commission (LAFCO) law.
- Requires the District to continue to supply water at wholesale to Valencia Water Company.
- Requires the District, if CLWA is the owner of all of the stock of Valencia Water Company on December 31, 2017, as the successor in interest to CLWA, to take the appropriate steps together with the Valencia Water Company board of directors to dissolve Valencia Water Company and to transfer its assets, property, liabilities, and indebtedness to the District no later than July 1, 2018. Prohibits the dissolution of Valencia Water Company and the transfer to the District from being subject to LAFCO.
EXISTING LAW:
- Establishes CLWA to sell State Water Project water at wholesale in the Santa Clarita Valley and at retail within the Santa Clarita Valley Water Division of CLWA.
- Provides for the formation of County Water Districts and provides certain powers and duties.
- Requires any dissolution of Newhall County Water District (NCWD) to be put before the voters if the Los Angeles local agency formation commission (LA LAFCO) finds that a petition has been signed by 10 percent of the voters.
- Establishes the Sustainable Groundwater Management Act (SGMA) and requires that local agencies in high- and medium-priority basins subject to SGMA form one or more Groundwater Sustainability Agencies (GSAs) by June 30, 2017. Requires that GSAs in high- and medium-priority basins subject to SGMA develop and adopt GSPs by January 31, 2022. Defines sustainable groundwater management in a GSP as avoiding undesirable results in the basin from groundwater pumping that results in any of the following: lowering of groundwater levels, reduction of groundwater storage, seawater intrusion, degraded water quality, land subsidence, and depletions of interconnected surface waters.
- Requires a water supply assessment whenever a city or county determines a proposed “project” is subject to the California Environmental Quality Act (CEQA). The water supply assessment must be included in any CEQA document prepared for the project. In turn, a provision of CEQA requires compliance with the water supply assessment requirements. Under a water supply assessment:
- Among other things, defines a “project” requiring a water supply assessment as a proposed residential development of more than 500 dwelling units;
- The water supply assessment is prepared by the public water system that may provide water for the project, or, if the city or county identifies no such public water system, the city or county prepares the water supply assessment.
- Creates a LAFCO in each county to control the boundaries and powers of cities, county service areas, and most special districts.
- Establishes a process for changing boundaries, which include the following steps:
- First, there must be a completed application to LAFCO, including a petition or resolution, an environmental review document, an agreement on how property taxes will be transferred, and a plan for services that describes what services will be provided at what level and how those services will be financed.
- Second, LAFCO must hold a noticed public hearing, take testimony, and may approve the proposed reorganization. LAFCO may impose terms and conditions that spell out what happens to the assets and liabilities of affected local agencies. If LAFCO disapproves, the proposed reorganization stops.
- Third, LAFCO must hold another public hearing to measure written protests in order to determine whether an election is needed. Although there are many exceptions, in most cases an election is required if 25 percent of the voters in a district, or voters representing 25 percent of the assessed value of land, submit written protests.
- Fourth, if state law requires an election, it occurs among the affected voters, requiring majority voter approval.
- Finally, LAFCO’s staff files formal documents to complete the reorganization.
- Requires a LAFCO to approve a consolidation where all of the merging districts pass substantially similar resolutions endorsing the consolidation, although the LAFCO may still impose terms and conditions.
FISCAL EFFECT: According to the Senate Appropriations Committee, unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWD (a public entity).
COMMENTS:
Author’s Statement:
In alignment with state goals for integrated, regional approaches to water management this bill will consolidate service and provide the Santa Clarita Valley with a regional water supply rather than the patchwork of retail water utility providers that exists currently, improving reliability and bringing a savings of approximately $14 million over the next 10 years to the benefit of ratepayers.
The current patchwork presents a number of difficulties to residents and the providers themselves. An ongoing chloride level issue in the Santa Clara River has proven difficult to confront from a divided front, a consolidated approach will enhance the ability to combat water quality issues including chloride contamination.
Further, infrastructural incompatibility between service areas serves as a barrier to conjunctive use, impacting quality and cost of water with sometimes vast discrepancies from street to street. This too will be solved through SB 634 as compatibility retrofitting will now be made possible.
Finally, the agencies involved have spent years in the courts doing battle over water rights issues. This costly litigation has racked up millions of taxpayer dollars and cost both sides heavily. This bill is a culmination of years of negotiations between the two sides and with the passing of this bill and consolidation of the agencies tax dollars will no longer be wasted on lawyer fees and can be better utilized to serve the ratepayers and residents.
Background: The Santa Clarita Valley is part of the upper watershed of Santa Clara River in Los Angeles County and has a population of approximately 270,000 people. Much of the Santa Clarita Valley lies over a high priority groundwater basin that is required to be sustainably managed under SGMA.
The CLWA was originally organized as the Upper Santa Clara Valley Water Agency in 1962. The agency was created to provide State Water Project (SWP) water to the Santa Clarita Valley. There are 29 SWP contractors. The agency was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers (homes and businesses). There were initially four retail entities that were to receive water from CLWA; two public water districts, District 36 and NCWD and two private water companies regulated by the Public Utilities Commission (Santa Clarita Water Company and Valencia Water Company).
The CLWA’s current SWP contract amount is for 95,200 acre feet a year. According to the 2015 Santa Clarita Valley Water Report, CLWA's service area covers 34,700 acres and includes a portion of the City of Santa Clarita and unincorporated portions of Los Angeles County in the communities of Saugus, Canyon Country, and Newhall serving approximately 30,700 connections. District 36 serves approximately 6,600 acres with 1,350 service connections. NCWD's service area is approximately 24,170 acres, including portions of Santa Clarita and unincorporated portions of the county in the communities of Newhall, Canyon Country, Valencia, and Castaic with approximately 9,750 service connections. Valencia Water Company services 18,000 acres in a portion of Santa Clarita, and in the unincorporated communities of Castaic, Newhall, Saugus, Stevenson Ranch, and Valencia serving approximately 31,350 connections.
Litigious History. There is an extensive history of litigation over water in the Santa Clarita Valley, including between the co-sponsors of this bill. In particular, litigation over whether CLWA can provide retail water service. In 1999, CLWA purchased Santa Clarita Water Company. Because CLWA's authorizing statute limited it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either a wholesaler to which the water would have otherwise been sold, or a public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission (PUC).
Following litigation over the authority provided to CLWA in its act, CLWA sponsored AB 134 (Kelly), Chapter 929, Statues of 2001, which enacted the following:
- Granted CLWA the authority to exercise the powers provided to county water districts and provided clarity to CLWA's authority to provide retail water service to Santa Clarita Water Company boundaries;
- Prohibited CLWA from serving water to retail customers in NCWD's boundaries, unless it has the approval of NCWD;
- Prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority, instead of going through the typical LAFCO process to exercise new powers; and,
- Required the approval of NCWD before CLWA could serve water to retail customers located within NCWD's boundaries but who were not receiving service.
In 2012, CLWA acquired all of the outstanding stock of Valencia Water Company. In 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations. On December 13, 2016, the boards of both districts voted to settle with one dissenting vote. The settlement agreement provided that the two districts would jointly seek legislation (this bill) to create a single new successor entity.
Newhall Ranch Development. Newhall Ranch is a proposed large scale master-planned community of approximately 21,000 units in unincorporated Los Angeles County within the CLWA service area. The proposed development is at the root of much of the contention over water in the Santa Clarita Valley. The development was conceived in the 1980s by Newhall Land, a land management company, during the decades the project has been in planning, it has faced legal actions, environmental concerns, and several changes in investors.
Housing developments of 500 units or more are required to submit a water supply assessment demonstrating the availability of water for the project. The water supply assessment is used to determine water supply sufficiency for a 20-year projection, in addition to, the demand of existing and other planned future uses.
The Newhall Ranch development is proposed to be a nine-phase development. CEQA prohibits the “tiering” of projects; meaning that the overall impact of a project must be evaluated and there is no loophole to look at smaller portions of a project so as to give the representation that a smaller portion will have a lesser impact.
The first two planned phases of the Newhall Ranch Development are the Landmark Village and Mission Village. The Landmark Village community will be developed on 293 acres within Newhall Ranch and contain up to 1,444 residential units, approximately 1 million square feet of mixed-use commercial space as well as an elementary school and park. Mission Village will be developed on 1,262 acres and contain up to 4,055 residential units and 1.5 million square feet of mixed-use commercial space, along with an elementary school, fire station and public library.
Both of those phases have completed water supply assessments and Mission Village has received approval of its water supply. The Newhall Ranch Development has received state approval and the Los Angeles County Board of Supervisors is scheduled to hear the development for approval on July 18, 2017.
Valencia Water Company. Valencia Water Company would be the water supplier for Newhall Ranch and was required to provide information for the water supply assessments. Valencia Water Company is a private water supplier. Typically, private water suppliers are regulated by the Public Utilities Commission (PUC). Valencia Water Company was regulated by the PUC until April 2014, when the PUC found that it no longer had oversight through Valencia Water Company’s stock being acquired by CLWA in December 2012.
In a lawsuit over the ability of CLWA to own Valencia Water Company’s stock, the 2nd District Court of Appeal ruled that the California Constitution does not prohibit CLWA from acquiring the stock of a water company, nor does that ownership conflict with a provision of the CLWA’s Act limiting CLWA’s operation of retail water service to certain areas.
This has created a situation where Valencia Water Company does not appear to be regulated as either a private water supplier while simultaneously not being required to comply with the requirements of a public water supplier.
The bill would require the District as the successor to CLWA to take the appropriate steps to dissolve the Valencia Water Company.
Prior and Related Legislation: AB 134 (Kelly), Chapter 929, Statues of 2001, among other things, granted CLWA the authority to exercise the powers provided to county water districts and prohibited the CLWA from exporting groundwater.
Committee Amendments:
Add a section to read: “Nothing in this act affects the application of any local, state, or federal law to the development of property within the district.”
On page 8 beginning on line 12 amend section 4(i) to read as follows:
The district shall continue to supply water at wholesale to Valencia Water Company. On January 1, 2018, the district, as the successor in interest to Castaic Lake Water Agency, as soon as practicable, but not later than January 31, 2018, shall take the appropriate steps together with the board of directors of the Valencia Water Company to authorize the dissolution of the Valencia Water Company and the transfer of the company’s assets, property, liabilities, and indebtedness to the district, consistent with the requirements of subdivision (j) and any other obligations of the parties. The dissolution and transfer shall be finalized no later than May 1, 2018, but the district board may extend this deadline until no later than July 1, 2018, by resolution, upon a finding that specific circumstances require additional time. A transfer pursuant to this subdivision is not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
On page 23 strike lines 5-9.
On page 23 line 17 after “applicable.” Insert “The plan for services shall include providing water at retail within the service area of Valencia Water Company after it is integrated into the district as provided in Section 4, subdivision (i).”
Supporting Arguments: The bill proposes to significantly restructure water resource management in the Santa Clarita Valley, including water acquisition and delivery, and new supply development through such programs as recycling, and groundwater management. The proposed new agency will significantly enhance overall water management and delivery in the Santa Clarita Valley. For two years the agencies that would be allowed to merge under this bill have worked in close concert to set aside differences and work toward a new era of water management in the Santa Clarita Valley. It has not been easy and negotiations to get to this point were at times difficult. But in the end, it was the right approach for both districts. The new district will simplify how water is served and managed on behalf of customers. It will eliminate odd boundaries that confuse customers. It will give equal voice to elect water leaders. The new district will also break down barriers to integration and unify water service for local residents and businesses. Importantly, it will save ratepayers a conservatively estimated $14 million over the first 10 years. It will end existing costly lawsuits and eliminate the duplication of services and programs between the two existing agencies.
Opposing Arguments: The takeover of NCWD by CLWA that this bill would authorize is a water grab to allow CLWA to serve areas currently outside their service area. The consolidation is being pursued as a result of a settlement agreement in the lawsuit filed by NCWD against CLWA over CLWA acquisition of Valencia Water Company. The potential for nullification of the settlement represents a threat to water delivery in the proposed Newhall Ranch development. The takeover of NCWD that would be accomplished through the settlement and this bill would benefit the Newhall Ranch development by making groundwater supplies in the Santa Clarita Valley available to the development. Existing law has provisions to ensure that Santa Clarita Valley residents will not lose their groundwater to the Newhall Ranch development. This bill will eliminate those protections.
One of the consequences of the bill would be to legislatively validate the questionable acquisition of Valencia Water Company by CLWA. Valencia Water Company was formerly owned by the developers of the Newhall Ranch development. Valencia Water Company has evaded any of the public oversight required for water utilities. The bill will not require the Valencia Water Company to be included into the new District until 6 months after it is created, but more importantly this section of the legislation is unenforceable.
This is not a simple consolidation. Historically, state law has sought to avoid monopolies and single entity control over the provision of vital resources such as water, this bill shatters that policy and allows for a vertical monopoly. This bill seriously limits the Los Angeles County LAFCO’s authority and role to a degree that the right of the public to engage in the public’s business and protect public finances may be at risk. The bill creates complex policy, legal, and financial uncertainty in reliably and affordably providing water to consumers. The normal legislative process of dealing with this legislation is not suited to thoroughly understand and balance vital public interests.
REGISTERED SUPPORT / OPPOSITION:
Support
California Wilderness Coalition
Castaic Lake Water Agency
Community Hiking Club
Newhall County Water District
San Gabriel Mountains Forever
Santa Clarita City Council
Santa Clarita Valley Chamber of Commerce
Valley Industry Association
Opposition
Castaic Area Town Council
Center for Food Safety
Comprehensive Development Consulting
Food & Water Watch
Planning and Conservation League
Progressive Democrats of the Santa Monica Mountains
Santa Clarita Organization for Planning and the Environment
Sierra Club California
Individuals (58)
Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096
Date of Hearing: June 28, 2017
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
SBPCA Bill Id:SB 634
Author:(Wilk) – As Amended Ver:May 26, 2017
SENATE VOTE: 34-0
SUBJECT: Santa Clarita Valley Water District.
SUMMARY: Reorganizes the Castaic Lake Water Agency and the Newhall County Water District into the Santa Clarita Valley Water District. Specifically, this bill:
- Repeals the act that governs the Castaic Lake Water Agency (CLWA) and establishes the Santa Clarita Valley Water District (District) by reorganizing CLWA and Newhall County Water District (NCWD) into the new District.
- Requires CLWA and NCWD to be reorganized into the District and requires CLWA and NCWD to no longer operate as separate entities or exercise independent functions.
- Authorizes the District to include contiguous or noncontiguous parcels of both unincorporated and incorporated territory and territory included in any public district having similar powers.
- States the purpose of the District to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the District.
- Defines the initial boundaries of the District to be the same as CLWA's boundaries as of December 31, 2017, and as confirmed by Los Angeles County LAFCO (LA LAFCO) in their final report, specified below.
- Requires the District to be the successor to CLWA and NCWD for the purposes of rights, duties, obligations, contracts, responsibilities, assets, entitlements, liabilities, outstanding bonds, and property.
- Requires all employees of CLWA and NCWD to become employees of the District.
- Authorizes the District to continue to levy, impose, fix, and collect any previously authorized charges, fees, assessments, or taxes approved by CLWA and NCWD, including, but not limited to, any charges for water which shall remain in effect until modified by the District's Board.
- Requires the District to be the successor in interest to CLWA's State Department of Water Resources contract and all associated rights, responsibilities, and obligations.
- Requires the indebtedness of NCWD and the Santa Clarita Water Division, a retail division of CLWA, to be borne by retail divisions of the District and to be paid for from the revenues of the corresponding retail divisions.
- Requires the District to continue to supply water at wholesale to Los Angeles Waterworks District No. 36, Val Verde (District 36). Prohibits the District from serving retail water within District 36, unless District 36 consents or mutually agrees to be incorporated into the District, subject to LAFCO law.
- Requires any future proposed changes of organization or reorganization involving the District and District 36 or any other public agency to be subject to filing with LA LAFCO and subject to review, consideration, and determination by LA LAFCO consistent with LAFCO law.
- Requires the District to continue to supply water at wholesale to Valencia Water Company.
- Requires the District, if CLWA is the owner of the stock of Valencia Water Company on December 31, 2017, as the successor in interest to CLWA, to take the appropriate steps together with the Valencia Water Company board of directors to dissolve Valencia Water Company and to transfer its assets, property, liabilities, and indebtedness to the District no later than July 1, 2018. Provides that the dissolution and transfer of Valencia Water Company must be consistent with 16), below.
- Prohibits the dissolution of Valencia Water Company and the transfer pursuant to 14), above, from being subject to LAFCO.
- Requires indebtedness of a retail water supplier that is incorporated into the District, including Valencia Water Company, to be borne by the customers in the area that corresponds with the boundaries of the retail water supplier and paid for from the revenues of that area.
- Allows the District to treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the District as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness must be allocated to each retail division and paid from that retail division's rates and charges.
- Requires the District to eliminate the retail divisions for all purposes as soon as feasible after retiring all preexisting indebtedness.
- Establishes boundaries for three electoral divisions within the District, and authorizes the electoral division boundaries to be adjusted, pursuant to existing law, which bases adjustments after each census.
- Establishes an initial 15-member board of directors (Board), as follows:
- Five elected members of NCWD's board of directors, in office as of December 31, 2017;
- Nine elected members of CLWA's board of directors, in office as of December 31 2017; and,
- One appointed member of CLWA's board of directors representing District 36.
- Establishes requirements for the residency and electoral divisions for the members of the Board, including initial directors, and requires directors to be elected at the time and in the manner provided by the Uniform District Election Law, which governs elections for special districts.
- Extends, by two years, the terms for the initial Board members whose terms expire in 2018 and 2020.
- Requires, as terms for the initial directors expire, directors to be elected by electoral divisions to comprise the District's nine-member Board, as follows:
- Six directors, two members from each electoral division, elected at the 2020 general election and every four years thereafter; and,
- Three directors, one member from each electoral division, elected at the 2022 general election and every four years thereafter.
- Establishes four-year terms for directors and a process to fill vacancies.
- Provides an appointment process for the appointed member of the Board, pursuant to 20), above, and eliminates the position of the appointed director effective January 1, 2023. Authorizes the appointed position to be eliminated and abolished prior to that date if specified conditions are met.
- Provides that the statutes that govern incompatible activities for a local agency officer or employee are not applicable to the appointed director, as specified.
- Requires the Board to hold its first meeting as soon as possible and to choose a director as president.
- Authorizes the Board to appoint its directors as additional officers and allows the Board to define the duties of those officers.
- Provides that a majority of the Board constitutes a quorum for the transaction of business.
- Authorizes the Board to act by ordinance, resolution, or motion. Establishes requirements for the recordation of votes and ordinances.
- Requires Board members to receive compensation equal to the amount of compensation authorized for CLWA as of December 31, 2017, as specified.
- Requires a four-fifths vote of the Board until January 1, 2025, for the following actions:
- Authorizing the District to support or further amendments to the District's Act;
- Issuing new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of the District, excluding the refinancing of existing debt. Requires the $10 million threshold to be adjusted annually in proportion to the assessed value of real property in the District; and,
- Changing the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017, for the retail division of the District that corresponds with NCWD.
- Requires the Board to develop and adopt a rate setting process that includes an advisory independent ratepayer advocate on or before January 1, 2019. Requires a four-fifths vote, until January 1, 2025, and a majority thereafter, for any changes to the independent ratepayer advocate or rate setting process.
- Requires the Board, at the first meeting or as soon as practicably possible, to appoint a general manager, secretary, and treasurer or auditor by a majority vote of the Board.
- Requires the Board to define the duties of the appointees and to fix their compensation, pursuant to existing law. Authorizes the Board to employ additional employees as deemed necessary to efficiently maintain and operate the District.
- Provides the District with the same powers granted to a county water district, as well as the following powers to:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the District;
- Construct, operate, and maintain works to develop energy, including but not limited to, hydroelectric, solar, wind and other renewable sources, inside or outside the District for use of the District or to sell the energy at wholesale to any public agency or private entity;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the District and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Enter into contracts with public agencies or private entities engaged in the generation or distribution of electric energy for the right to use falling water, facilities, or real property of the District, either inside or outside the District, for energy generation or distribution purposes;
- Join with one or more public agencies, private corporations, or other persons for the purposes of carrying out any of the powers of the District, as specified;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Join one or more local agencies to form a groundwater sustainability agency, and to participate with a groundwater sustainability agency to develop and implement a groundwater sustainability plan within the District;
- Contract with the purveyor or successor in interest to the purveyor;
- Construct works along and across any stream of water, street, highway or railway if it restores those crossings to their prior state;
- Pursuant to existing law, levy and collect standby charges in connection with the provision of water service, as well as capacity charges and connection fees; and,
- Annex and contain lands situated in more than one county.
- Requires the District, on or before January 31, 2018, to submit to LA LAFCO an application for conditions addressing the creation of the District.
- Requires the application to include a plan for providing services, as specified by LAFCO law, and a map and description of the District's boundaries. Requires the application to identify the functions or class of services exercised by CLWA and NCWD on December 31, 2017.
- Requires LA LAFCO to do the following:
- Hold a public hearing within 60 days;
- Prepare a written report, which may include binding terms and conditions, for the creation of the District that are consistent with the provisions of this bill;
- Post the written report on the LA LAFCO Website, and make it available to the public, as specified;
- Approve the written report within 30 days; and,
- Certify any powers that were exercised by CLWA and NCWD prior to the formation of the District.
- Requires any powers or functions provided in this bill to the District, but not exercised by CLWA and NCWD at the time of formation, to only be exercised with LA LAFCO approval.
- Provides that existing law that requires a tax agreement does not apply to this bill.
- Prohibits LA LAFCO from imposing any condition on the District that requires protest or election proceedings, pursuant to LAFCO law.
- Requires the District to reimburse LA LAFCO for all costs associated with the submittal, review, considerations, preparation, and determination associated with the application for conditions and the preparation of the written report.
- Authorizes the District to prescribe, by resolution or ordinance, rules and regulations for unpaid capacity charges or connection fees, in accordance with 45) and 46), below.
- Requires delinquent and unpaid capacity charges or connection fees to be collected by annual taxes levied on the property and establishes a lien on the property, as specified.
- Establishes the lien, notification, and recording requirements relating to delinquent and unpaid charges.
- Provides any bonds issued by the District with the same force, value, and use as bonds issued by any city and exempts bonds from all taxations within the state.
- Provides that the County Water District Law shall govern the formation, operation, and dissolution of all improvement districts.
- Authorizes the Board to advance general funds to accomplish the purposes of an improvement district formed, which may be to incur bonded indebtedness, and specifies repayment and interest rate requirements.
- Prohibits a public corporation or public agency with a substantially similar purpose from being formed within the District without the consent of the Board.
- Defines the following terms:
- "Private corporation" to mean and include "any private corporation organized under federal law or the laws of any state;"
- "Public agency" to mean and include "the federal government, State of California, a county, city public corporation, the Metropolitan Water District of Southern California, or other public district of this state;" and,
- "Purveyor" to mean "District 36 which is a retail water supplier that has facilities connected to the District's water transmission system and is under contract with the District for water."
- Repeals provisions in existing law that require protest proceedings if the 10% threshold is met for the dissolution of NCWD.
- Makes numerous findings and declarations.
- Provides that no reimbursement for a state-mandated local program is required because the local agency has the authority to levy fees to pay for the requirements of this bill, and because this bill is at the request of a local agency.
FISCAL EFFECT: According to the Senate Appropriations Committee:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to [the District] (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or LA LAFCO would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs (local fee disclaimer), and because the bill was requested by an entity that could incur mandated costs (local request disclaimer).
COMMENTS:
- CLWA and NCWD. The Legislature established the Upper Santa Clarita Valley Water Agency, subsequently renamed the Castaic Lake Water Agency (CLWA), as a contractor agency to the State Water Project (SWP) to provide water to the Santa Clarita Valley in Los Angeles County (County). CLWA was authorized to deliver water wholesale to public or private water agencies within its boundaries that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angeles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and, two private water companies, the Santa Clarita Water Company (SCWC) and Valencia Water Company.
According to the 2015 Santa Clarita Valley Water Report, CLWA's service area covers 34,700 acres and includes a portion of the City of Santa Clarita and unincorporated portions of the County in the communities of Saugus, Canyon country, and Newhall serving approximately 30,700 connections. District 36 serves approximately 6,600 acres with 1,350 service connections. NCWD's service area is approximately 24,170 acres, including portions of Santa Clarita and unincorporated portions of the County in the communities of Newhall, Canyon country, Valencia, and Castaic with approximately 9,750 service connections. Valencia Water Company services 18,000 acres in a portion of Santa Clarita, and in the unincorporated communities of Castaic, Newhall, Saugus, Stevenson Ranch, and Valencia serving approximately 31,350 connections.
- Bill Summary. This bill repeals CLWA's act and creates the Santa Clarita Valley Water District (District) by reorganizing CLWA and NCWD into the new District. This bill establishes the District as the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. This bill provides that the purpose of the District is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale, and provide a means to unify and modernize water resource management within the Santa Clarita Valley. The initial boundaries of the District are the same as CLWA's boundaries on December 31, 2017, and as confirmed by LA LAFCO. Under this bill, fees and charges imposed by CLWA and NCWD continue to be levied until the District's Board modifies them, and the District is the successor in interest to CLWA’s SWP contract and all associated rights and responsibilities.
This bill creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. This bill requires the District to continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and the District must take the appropriate steps to dissolve the company and transfer its assets and liabilities to the District. Any future proceedings to incorporate District 36 must go through LA LAFCO.
This bill provides the District with the same powers as a county water district and incorporates numerous provisions of CLWA's act. Under this bill, the District is granted powers including the authority to acquire water rights, construct and operate works to develop and sell energy, to develop, treat, distribute and reclaim water, and to recover water from groundwater basins, participate in a groundwater sustainability agency, and to levy and collect standby changes for the provision of water service, as well as capacity charges and connection fees. This bill is co-sponsored by CLWA and NCWD.
Governance. This bill establishes the District's initial Board to include the five current NCWD board members, nine current CLWA elected board members, and one CLWA board member appointed by District 36. This bill provides a process by which the initial 15-member Board will transition into a nine-member elected Board. Under this bill, the District will be divided into three electoral divisions. Six directors will be elected, two from each division, in the 2020 general election. Three directors will be elected, one from each division, in the 2022 general election. The terms for the initial Board members are extended and the appointed member on CLWA's board will be eliminated.
This bill requires a supermajority four-fifths vote of the District's Board to take a number of actions. For example, this bill requires the Board to develop and adopt a rate setting process, including an advisory independent ratepayer advocate by January 1, 2019. Any changes to the advocate or rate setting process requires a four-fifths supermajority vote until January 1, 2025, and a majority vote thereafter.
LAFCO. LAFCOs are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structures, and preparing a sphere of influence for each city and special district within each county. The courts refer to LAFCOs as the Legislature's "watchdog" over local boundary changes. LAFCO law establishes procedures for local government changes of organization, including special district consolidations. LAFCOs regulate boundary changes through the approval or denial of proposals by other public agencies or individuals for these procedures.
The process for most boundary changes requires numerous steps: 1) Application to LAFCO, by petition or resolution, for an environmental review, property tax exchange agreement, and a plan for services that describe what services will be provided and how the services will be financed; 2) Noticed public hearing, testimony, and approval or disapproval by LAFCO in which LAFCO can impose terms and conditions; 3) Additional public hearing for protests. If a majority of the city's voters file protest, the disincorporation stops, and if not, LAFCO must order an election on the proposed disincorporation; 4) If existing law requires it, an election that requires a majority vote approval; and, 5) LAFCO staff files documents to complete the reorganization. LAFCOs are required to approve district consolidations where each merging district passes a resolution endorsing the consolidation, but provisions that govern protest and elections still apply. Current law also authorizes LAFCOs to impose terms and conditions.
The formation of this District is not subject to the usual LAFCO process. This bill creates the District and establishes a modified LAFCO process. This bill requires the District, by January 31, 2018, to submit to LA LAFCO an application for conditions, including the District's plan for providing services, addressing the creation of the District. The LAFCO must hold a hearing within 60 days and prepare a written report that includes terms and conditions, pursuant to LAFCO law, which must be consistent with the provisions of the District's Act established by this bill. The written report must be made public and must certify the functions and services that were being exercised by CLWA and NCWD on December 31, 2017. This bill provides that a property tax exchange is not required and prohibits LAFCO from imposing any condition on the District that will require protest or election proceedings.
- Author's Statement. According to the author, "In alignment with state goals for integrated, regional approaches to water management, this bill will consolidate service and provide the Santa Clarita Valley with a regional water supply rather than the patchwork of retail water utility providers that exists currently, improving reliability and bringing a savings of approximately $14 million over the next 10 years to the benefit of ratepayers. The current patchwork presents a number of difficulties to residents and the providers themselves. An ongoing chloride level issue in the Santa Clara River has proven difficult to confront from a divided front, a consolidated approach will enhance the ability to combat water quality issues include chloride contamination. Further, infrastructural incompatibility between service areas serves as a barrier to conjunctive use, impacting quality and cost of water with sometimes vast discrepancies from street to street. This too will be solved through SB 634 as compatibility retrofitting will now be made possible. Finally, the agencies involved have spent years litigating water rates and management issues. This bill is a culmination of years of negotiations between the two sides and with the passing of this bill and consolidation of the agencies, tax dollars will no longer be wasted on lawyer fees and can be better utilized to serve the ratepayers and residents."
- History. There is an extensive history of litigation over water in the Santa Clarita Valley, including between the co-sponsors of this bill. In particular, litigation over whether CLWA can provide retail water service. In 1999, CLWA purchased SCWC. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either a wholesaler to which the water would have otherwise been sold, or a public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission (PUC).
Following litigation over the authority provided to CLWA in its act, CLWA sponsored AB 134 (Kelly), Chapter 929, Statues of 2001, which enacted the following:
- Granted CLWA the authority to exercise the powers provided to county water districts and provided clarity to CLWA's authority to provide retail water service to SCWC boundaries;
- Prohibited CLWA from serving water to retail customers in NCWD's boundaries, unless it has the approval of NCWD;
- Prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority, instead of going through the typical LAFCO process to exercise new powers; and,
- Required the approval of NCWD before CLWA could serve water to retail customers located within NCWD's boundaries but who were not receiving service.
In 2012, CLWA acquired all of the outstanding stock of Valencia Water Company. In 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations. On December 13, 2016, the boards of both districts voted to settle with one dissenting vote. The settlement agreement provided that the two districts would jointly seek legislation (this bill) to create a single new successor entity.
- Policy Consideration. This bill requires Valencia Water Company to be dissolved by July 1, 2018, if CLWA is the owner of stock as of December 31, 2017. The new District's application to LA LAFCO must be submitted on or before January 31, 2018. Opposition to this bill argues that Valencia, a private water company, is owned and operated by CLWA, but water rates are not under the jurisdiction of the PUC, and are not subject to Proposition 218 (1996) or Proposition 26 (2010). Additionally, opposition to this bill argues that Valencia's operations are not subject to the Ralph M. Brown Act or other transparency laws that govern the accountability of special districts and local agencies. The Committee may wish to note that there is no requirement in this bill that Valencia Water Company is dissolved by the time an application is submitted to LA LAFCO. The Committee may wish to ask the author to continue working to ensure that the LAFCO process can occur for the entire new District as opposed to a piecemeal approach.
- Arguments in Support. CLWA states, "This new district will be able to integrate systems of NCWD and CLWA, leverage economics of scale and operational efficiencies to save ratepayer funds. Because of the integrated planning opportunities, it is believed the agencies will be able to secure more grant dollars and build regional projects, including a recycled water system. Additionally, the new district will implement a division-based election system fully compliant with California Voting Rights Act."
- Arguments in Opposition. The Planning and Conservation League argues, "This bill is touted as a consolidation and creation of a new agency. It appears instead to actually be a takeover of [NCWD] and the extending of County Water District powers to [CLWA], a state water wholesaler, currently excluded from pumping groundwater….Support the democratic process – [NCWD] voters should be able to vote on whether or not they want to dissolve…The new district should not be created unless and until Valencia Water Co. is included in the merger, not six months afterwards. This section is unenforceable."
- Double Referral. This bill is double-referred to the Water, Parks and Wildlife Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Castaic Lake Water Agency [CO-SPONSOR]
Newhall County Water District [CO-SPONSOR]
BizFed (Los Angeles County Business Federation)
Opposition
Food & Water Watch
Sierra Club California
Planning and Conservation League
Santa Clarita Organization for Planning and the Environment
Individual letters (25)
Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 634
Amended: 5/26/17
SENATE NATURAL RES. & WATER COMMITTEE: 7-0, 3/28/17
AYES: Hertzberg, Stone, Atkins, Hueso, Jackson, Monning, Vidak
NO VOTE RECORDED: Allen, Stern
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/26/17
AYES: McGuire, Nguyen, Beall, Hertzberg, Lara, Moorlach
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SOURCE: Castaic Lake Water Agency
Newhall County Water District
DIGEST:
This bill reorganizes Castaic Lake Water Agency and Newhall County Water District into the Santa Clarita Valley Water District.
Senate Floor Amendments of 5/26/17 modify the schedule by which the initial board of directors is replaced by elected board members, require the district to pay the costs of the Local Agency Formation Commission associated with processing the application required by the bill, and make other technical and clarifying changes.
Existing law:
- Creates a local agency formation commission (LAFCO) in each county to control the boundaries and powers of cities, county service areas, and most special districts.
- Establishes a process for changing boundaries, which includes the following steps:
- First, there must be a completed application to LAFCO, including a petition or resolution, an environmental review document, an agreement on how property taxes will be transferred, and a plan for services that describes what services will be provided at what level and how those services will be financed.
- Second, LAFCO must hold a noticed public hearing, take testimony, and may approve the proposed reorganization. LAFCO may impose terms and conditions that spell out what happens to the assets and liabilities of affected local agencies. If LAFCO disapproves, the proposed reorganization stops.
- Third, LAFCO must hold another public hearing to measure written protests in order to determine whether an election is needed. Although there are many exceptions, in most cases an election is required if 25 percent of the voters in a district, or voters representing 25 percent of the assessed value of land, submit written protests.
- Fourth, if state law requires an election, it occurs among the affected voters, requiring majority voter approval.
- Finally, LAFCO’s staff files formal documents to complete the reorganization.
- Requires a LAFCO to approve a consolidation where all of the merging districts pass substantially similar resolutions endorsing the consolidation, although the LAFCO may still impose terms and conditions.
- Establishes the Castaic Lake Water Agency (CLWA) to sell State Water Project water at wholesale in the Santa Clarita Valley and at retail within the Santa Clarita Valley Water Division of CLWA.
- Provides for the formation of County Water Districts and provides certain powers and duties.
- Requires any dissolution of Newhall County Water District (NCWD) to be put before the voters if the commission finds that a petition has been signed by 10 percent of the voters.
This bill:
- Repeals the requirement for a protest proceeding if the 10 percent protest threshold is met for a dissolution of NCWD.
- Repeals the principal act of CLWA and creates the Santa Clarita Valley Water District (SCVWD) by reorganizing CLWA and NCWD into the new district.
- Provides that SCVWD is the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds.
- Establishes the purpose of the SCVWD to unify and modernize water resource management within the Santa Clarita Valley through the efficient, sustainable, and affordable provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale within the territory of the district.
- Sets the initial boundaries of SCVWD as the same as those of CLWA as existing on December 31, 2017 and as confirmed by the Los Angeles LAFCO.
- Carries forward fees and charges imposed by CLWA and NCWD continue to be levied until the SCVWD’s board modifies them.
- Provides that the SCVWD is the successor in interest to CLWA’s State Water Project contract and all associated rights and responsibilities.
- Creates retail divisions for the territory previously covered by NCWD.
- Allows SCVWD to treat the retail divisions as a single unit for purposes of operations and expenses to the extent that it is economically beneficial for the operations of the district as a whole, but as long as any preexisting indebtedness of a retail division remains outstanding, that indebtedness must be allocated to each retail division and paid from that retail division’s rates and charges.
- Requires SCVWD to eliminate the retail divisions for all purposes as soon as feasible after all preexisting indebtedness has been retired.
- Requires SCVWD to continue to supply water at wholesale to District 36 and Valencia Water Company and requires, by July 1, 2018, the board of Valencia Water Company and SCVWD to take the appropriate steps to dissolve the company and transfer its assets and liabilities to SCVWD.
- Requires any future proceedings to incorporate Los Angeles County Water Works District 36 to go through LAFCO, and prohibits the serving of retail water within the territory served by District 36 while District 36 continues to exist.
- Establishes an initial board of directors that consists of the 15 members who are in office on the formation date, specifically the five elected directors of NCWD, the nine elected directors of CLWA, and the one appointed director of CLWA representing District 36.
- Creates three electoral divisions for SCVWD and specifies the initial boundaries of those divisions, adjusted after each census according to existing law.
- Provides that as terms for the initial directors expire, directors will be elected by electoral division such that only 9 seats will remain, as follows:
- 2 directors will be elected for each electoral division at the 2020 general election and at every 4 years thereafter.
- 1 director will be elected for each electoral division at the 2022 general election and every 4 years thereafter.
- Eliminates the appointed director on January 1, 2023, or earlier if District 36 is incorporated into SCVWD.
- Requires a four-fifths supermajority for several actions until January 1, 2025, including to:
- Support or further amendments to the new district’s act;
- Incur new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of SCVWD; and
- Change the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017.
- Requires the board to develop and adopt a ratesetting process that includes an advisory independent ratepayer advocate on or before January 1, 2019. Any changes to the independent ratepayer advocate or ratesetting process requires a four-fifths supermajority until January 1, 2025 and a majority thereafter.
- Provides SCVWD the same powers as a county water district, as well as the following powers to:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district;
- Construct, operate, and maintain works to develop energy and to sell that energy;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Enter into contracts and join with other agencies to carry out the district’s powers;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Participate in a groundwater sustainability agency;
- Construct works along and across any stream of water, street, highway or railway if it restores those crossings to their prior state;
- Pursuant to existing law, levy and collect standby charges in connection with the provision of water service, as well as capacity charges and connection fees; and
- Annex and contain lands situated in more than one county.
- Prohibits a public corporation or public agency with a substantially similar purpose from being formed within SCVWD without the consent of the board.
- Incorporates numerous provisions of the CLWA principal act into the SCVWD act either identically or in a substantially similar manner, including provisions that:
- Authorize the district to include noncontiguous parcels;
- Prescribe the method used to fill the director position appointed by District 36;
- Deem the appointed director not an incompatible office or presenting a conflict of interest as long as the appointed director does not participate in the decision-making where a conflict might exist;
- Define eligible voters and voting procedures;
- Validate proceedings and bonds of SCVWD and provide other financial security for bondholders;
- Specify the manner of appointing officers for SCVWD;
- Allow SCVWD to exercise powers under county water district law; and
- Establish a lien on property that has unpaid charges or fees.
- Requires SCVWD to submit a plan for services to the Los Angeles County LAFCO, which must hold a hearing within 60 days, and requires the LAFCO to prepare a report that includes binding terms and conditions under LAFCO law for the creation of SCVWD that are not inconsistent with the provisions of the act.
- Requires the LAFCO to certify any powers that were exercised by CLWA and NCWD prior to the formation of SCVWD, and requires any powers or functions provided in the act to SCVWD but not exercised by CLWA and NCWD at the time of formation to only be exercised with LAFCO approval.
- Requires SCVWD to reimburse the LAFCO for all costs associated with the application and preparation of the report.
- Declares that the bill’s provisions are severable and includes numerous findings and declarations.
- Finds and declares that no reimbursement for a state-mandated local program is required because the local agency has the authority to levy fees to pay for the requirements of the bill, and because the bill is at the request a local agency.
Background
Local Agency Formation Commissions. The Cortese-Knox-Hertzberg Act creates a local agency formation commission (LAFCO) in each county to control the boundaries of cities, county service areas, and most special districts. The courts repeatedly refer to LAFCOs as the Legislature’s watchdog over boundary changes. Local governments can only exercise their powers and provide services where LAFCO allows them to: within their boundaries (which are set by LAFCO), within their spheres of influence but outside their boundaries (with authorization by LAFCO), and outside their spheres to address a major threat to public health if the extension is consistent with LAFCO’s policies. 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.
Castaic Lake Water Agency. In 1962, the Legislature created the Upper Santa Clarita Valley Water Agency to provide State Water Project (SWP) water to the Santa Clarita Valley in Los Angeles County. The agency was subsequently renamed the Castaic Lake Water Agency (CLWA). At the time, CLWA was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and two private water companies regulated by the Public Utilities Commission, the Santa Clarita Water Company and Valencia Water Company. The current CLWA board is composed of 11 members: three members elected at large, two members elected for each of three elective divisions, a member appointed by NCWD, and a member appointed by District 36.
There is an extensive history of litigation over water in the Santa Clarita Valley—particularly among NCWD and CLWA. In particular, litigation has arisen over whether CLWA can provide retail water service. In 1999, CLWA purchased the Santa Clarita Water Company. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either:
- A wholesaler to which the water would have otherwise been sold, or
- A public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
The CLWA's purchase of the SCWC was criticized by some residents and one of the CLWA's board members, ultimately resulting in litigation over whether CLWA had exceeded the authority provided in its founding statute. In order to settle the issue, CLWA, believing that the 1990 statute was sufficient authority to support the purchase, sponsored AB 134 (Kelly, 2001) to clarify that authority. That bill, among other things, granted CLWA the authority to exercise the powers provided to county water districts.
CLWA later acquired all of the outstanding stock of Valencia Water Company through a settlement of an eminent domain proceeding in 2012. In April 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in December 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations, and on December 13, 2016, the boards of both districts voted to settle with one dissenting vote.
The settlement agreement provided the two districts would jointly seek legislation to create a single new successor entity to build on and lead to greater success in water conservation, groundwater management, and recycled water provision across the Santa Clarita Valley.
Comments
Purpose of the bill. The water governance structure in the Santa Clarita Valley has been muddled for many years. Conflict and litigation between CLWA and NCWD extends back almost two decades, at significant cost to ratepayers. These agencies have confusing and disconnected service areas and have duplicative staff and infrastructure needs that create inefficiencies. Their boards contain an unusual mix of members elected at-large, by-district, and appointed. SB 634 is the culmination of lengthy studies and public outreach to develop water governance that makes sense. It will allow for the gradual elimination of duplicative staff and infrastructure, greater conjunctive use of groundwater, and a transition to entirely directly elected board, by district. It also incorporates an independent ratepayer advocate to ensure that rates are fair. Finally, SB 634 avoids concerns about subsidization among districts because each area bears its own legacy indebtedness, and it provides a role for LAFCO to condition its formation and review its powers. SB 634 presents a fleeting opportunity to resolve a long history of conflict and to benefit the ratepayers of the Santa Clarita Valley.
Horseshoes and hand grenades. The dissolution and formation of districts with as many financial and legal entanglements as CLWA and NCWD is a complex technical and political matter. The Legislature delegated responsibility to LAFCOs for setting boundaries under the principle that an entity closer to the local level would ultimately make wiser decisions, and provided for a protest procedure that gives local residents the opportunity to vote on proposals if there is enough opposition. SB 634 includes some elements of LAFCO review, including by requiring a plan for services and allowing the LAFCO to impose terms and conditions. It also leaves in the hands of LAFCO some of the implementation of the transfer, and ensures that future changes to the district’s boundaries and powers would be subject to LAFCO approval. However, it removes from LAFCO’s hands the ultimate authority to form the new district and instead creates it via statute. This is not necessarily inconsistent with LAFCO law—a LAFCO may not disapprove a consolidation jointly requested by all affected agencies.
The bill does however avoid a protest process, and with it, the potential for a vote on whether the new district should be formed. The bill’s sponsors argue that this is necessary to: (1) take advantage of a heretofore unseen level of collaboration between CLWA and NCWD; and (2) ensure that the process completes prior to November 2018, when elections would ordinarily be scheduled. Opponents argue that voters deserve the right to weigh in on their water governance and are concerned that a vertically integrated water provider—one that provides both wholesale and retail water service—will result in increased rates. Does this bill strike the right balance between streamlining the LAFCO process and retaining its important elements, including a public vote?
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWD (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or the Los Angeles County LAFCO would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs (local fee disclaimer), and because the bill was requested by an entity that could incur mandated costs (local request disclaimer).
Castaic Lake Water Agency (co-source)
Newhall County Water District (co-source)
AMS Fulfillment
Association of California Water Agencies
BizFed
California Wilderness Coalition
City of Santa Clarita
San Gabriel Mountains Forever
Climate Resolve
Community Hiking Club
Los Angeles Supervisor Kathryn Barger
Santa Clarita Valley Chamber of Commerce
United Water Conservation District
Valley Industry Association
18 individuals
OPPOSITION: (Verified 5/26/17)
CALAFCO
Center for Food Safety
Comprehensive Development Consulting
Democratic Alliance for Action
Friends of the Santa Clara River
Local Agency Formation Commission for the County of Los Angeles
North Valley Democratic Club
Planning and Conservation League
Progressive Democrats of the Santa Monica Mountains
Santa Clarita Organization for Planning and the Environment
Sierra Club California
5 individuals
5/30/17 19:40:27
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 634 (Wilk) - Santa Clarita Valley Water District
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 634 would reorganize the Newhall County Water District (NCWD) and the Castaic Lake Water Agency (CLWA) into the Santa Clarita Valley Water District (SCVWD) to provide, sell, manage, and deliver water at retail or wholesale within the district’s territory. The bill would also provide for the dissolution of the Valencia Water Company and the transfer of the company’s assets, property, liabilities, and indebtedness to the SCVWD, as specified.
Fiscal Impact:
- Unknown loss of income tax revenues, potentially in the low hundreds of thousands annually beginning in 2018-19, as a result of the dissolution of the Valencia Water Company (a private entity) and transfer of its assets, property, and liabilities to SCVWD (a public entity). There would also be an unknown loss of property tax revenues related to this action. Approximately 47% of property tax revenues are allocated to schools in Los Angeles County. In general, any reduction in school property tax allocations must be backfilled by the State General Fund.
- Any local costs to the affected districts or the Los Angeles County Local Agency Formation Commission (LAFCO) would not be state-reimbursable because affected entities have fee authority sufficient to cover any increased costs (local fee disclaimer), and because the bill was requested by an entity that could incur mandated costs (local request disclaimer).
Background:
In 1962, the Legislature created the Upper Santa Clarita Valley Water Agency to provide State Water Project (SWP) water to the Santa Clarita Valley in Los Angeles County. The agency was subsequently renamed the Castaic Lake Water Agency. At the time, CLWA was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers. Initially, four retail entities received water from CLWA: two public water districts, Los Angles Waterworks District No. 36 (District 36) and Newhall County Water District; and two private water companies regulated by the Public Utilities Commission, the Santa Clarita Water Company and Valencia Water Company. The current CLWA board is composed of 11 members: three members elected at large, two members elected for each of three elective divisions, a member appointed by NCWD, and a member appointed by District 36.
There is an extensive history of litigation over water in the Santa Clarita Valley, especially among NCWD and CLWA. In particular, litigation has arisen over whether CLWA can provide retail water service. In 1999, CLWA purchased the Santa Clarita Water Company. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either: (1) a wholesaler to which the water would have otherwise been sold, or (2) a public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
The CLWA's purchase of the SCWC was criticized by some residents and one of the CLWA's board members, ultimately resulting in litigation over whether CLWA had exceeded the authority provided in its founding statute. In order to settle the issue, CLWA, believing that the 1990 statute was sufficient authority to support the purchase, sponsored AB 134 (Kelly, 2001) to clarify that authority. That bill, among other things, granted CLWA the authority to exercise the powers provided to county water districts and:
- Clarified that CLWA has the authority to provide retail water service to the then existing SCWC boundaries.
- Prohibited CLWA from serving water to retail customers in NCWD’s boundaries unless it has the approval of NCWD.
- Prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority—instead of going through the typical LAFCO process to exercise new powers.
- Required the approval of NCWD before CLWA could serve water to retail customers located within NCWD’s boundaries but who were not receiving service from that district.
That same year, SB 609 (Costa, 2001) required any dissolution of NCWD be put before the voters if the commission finds that a petition has been signed by 10 percent of the voters. According to the Assembly floor analysis of SB 609, that amendment was a part of NCWD’s agreement not to oppose AB 134 (Kelly). Both bills passed and were chaptered.
CLWA later acquired all of the outstanding stock of Valencia Water Company through a settlement of an eminent domain proceeding in 2012. In April 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in December 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations, and on December 13, 2016, the boards of both districts voted to settle with one dissenting vote.
The settlement agreement provided the two districts would jointly seek legislation to create a single new successor entity to build on and lead to greater success in water conservation, groundwater management, and recycled water provision across the Santa Clarita Valley. The settlement agreement provided for, among other things:
- The structure of the new district’s board;
- Powers to be exercised by the district;
- Establishment of an independent ratepayer advocate;
- Creation of retail districts to ensure that ratepayers of the dissolved district continue to bear their own legacy indebtedness;
- Supermajority vote requirements for certain actions;
- The transfer of all assets, liabilities, contracts, and employees of the existing districts to the new agency; and
- Termination of the settlement agreement if legislation isn’t chaptered in 2017.
Existing law, the Cortese-Knox-Hertzberg Act, creates a LAFCO in each county to control the boundaries of cities, county service areas, and most special districts. To plan for the future boundaries and service areas of the cities and special districts, a LAFCO must adopt a sphere of influence for each city and district. The LAFCOs’ boundary decisions must be consistent with the spheres of influence of the affected cities or districts, and spheres must be updated at least every five years.
Most boundary changes begin when a city or special district applies to LAFCO, or when registered voters or landowners file petitions with a LAFCO. In limited circumstances, LAFCO can initiate some special district boundary changes: consolidations, dissolutions, mergers, subsidiary districts, or reorganizations. Boundary changes require four (sometimes five) steps:
- First, there must be a completed application to LAFCO, including a petition or resolution, an environmental review document, an agreement on how property taxes will be transferred, and a plan for services that describes what services will be provided at what level and how those services will be financed.
- Second, LAFCO must hold a noticed public hearing, take testimony, and may approve the proposed reorganization. LAFCO may impose terms and conditions that spell out what happens to the assets and liabilities of affected local agencies. If LAFCO disapproves, the proposed reorganization stops.
- Third, LAFCO must hold another public hearing to measure written protests in order to determine whether an election is needed. Although there are many exceptions, in most cases an election is required if 25 percent of the voters in a district, or voters representing 25 percent of the assessed value of land, submit written protests.
- Fourth, if state law requires an election, it occurs among the affected voters, requiring majority voter approval.
- Finally, LAFCO’s staff files formal documents to complete the reorganization.
The Cortese-Knox-Hertzberg Act also requires a LAFCO to approve a consolidation where all of the merging districts pass substantially similar resolutions endorsing the consolidation, although the LAFCO may still impose terms and conditions.
Proposed Law:
SB 634 would repeal the CLWA principal act and create the Santa Clarita Valley Water District by reorganizing CLWA and NCWD into the new district, and specifying that SCVWD is the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. The purpose of the district is to unify and modernize water resources management within the Santa Clarita Valley through the provision, sale, management, and delivery of surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale. The initial boundaries of the new district are the same as those of CLWA as existing on December 31, 2017 and as confirmed by the Los Angeles LAFCO. Fees and charges imposed by CLWA and NCWD, including water rates, continue to be levied until the new district’s board modifies them, and the new district is the successor in interest to CLWA’s State Water Project contract and all associated rights and responsibilities.
The bill creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. The new district must continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and the new district must take the appropriate steps to dissolve the company and transfer its assets and liabilities to the new district. The bill would also authorize the incorporation of District 36 into the SCVWD, upon mutual agreement between the entities through the LAFCO process.
SB 634 also creates three electoral divisions for the new district and specifies the initial boundaries of those divisions. Those boundaries must be adjusted after each census according to existing law. The bill also establishes an initial board of directors that consists of the 15 current members of NCWD and CLWA and an appointed member who represents District 36. SB 634 also extends the terms of these directors by two years, to 2020 and 2022, respectively, and prescribes a process whereby the board is eventually reduced to nine members by 2024. Most actions of the board require a majority vote, but the bill requires a four-fifths supermajority for several actions until January 1, 2025, including to:
- Support or further amendments to the new district’s act;
- Incur new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of the new district; and
- Change the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017.
On or before January 1, 2019, the board must develop and adopt a rate setting process that includes an advisory independent ratepayer advocate. Any changes to the independent ratepayer advocate or rate setting process requires a four-fifths supermajority until January 1, 2025 and a majority thereafter.
SB 634 gives the new district the same powers as a county water district, as well as other additional powers and functions, as specified. The bill prohibits a public corporation or public agency with a substantially similar purpose from being formed within the district without the consent of the board. The bill also incorporates numerous provisions of the CLWA principal act into the SCVWD act either identically or in a substantially similar manner, as specified.
While SB 634 creates the district, it also requires the district to submit a plan for services to the Los Angeles County LAFCO, which must hold a hearing within 60 days. The LAFCO must also prepare a report that includes binding terms and conditions under LAFCO law for the creation of the district that are not inconsistent with the provisions of the act. The bill also requires LAFCO to certify any powers that were exercised by CLWA and NCWD prior to the formation of the new district. Any powers provided in the act to the new district but not exercised by CLWA and NCWD at the time of formation may only be exercised with LAFCO approval. SB 634 also provides that no property tax exchange is required, and except as provided in the act, Cortese-Knox-Hertzberg Act does not apply to the district’s application for conditions. The bill further specifies that the Los Angeles LAFCO may not impose any conditions on the district that requires a protest hearing or an election.
The bill also deletes a provision that requires LAFCO to forward any proposal involving the dissolution of the NCWD for confirmation by the voters if it finds that a petition requesting voter approval of the dissolution has been signed by either: (1) at least 10% of the voters residing in the district, or (2) at least 10% of the number of landowners within the district who own at least 10% of the value of the land in the district.
Staff Comments:
This bill consolidates CLWA and NCWD into the new SCVWD, and requires the district to continue to supply wholesale water to District 36, but authorizes incorporation of District 36 into SCVWD, upon mutual agreement of both parties through the LAFCO process. In contrast, the bill requires the Valencia Water Company to dissolve and transfer assets, property, liabilities, and indebtedness to the SCVWD by July 1, 2018. As a private water company, Valencia currently pays income taxes and property taxes, but when the company is dissolved and absorbed into the public water district, it will no longer do so. This provision would result in unknown income tax and property tax revenue losses.
-- END --
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Mike McGuire, Chair
2017 - 2018 Regular
Bill No: | SB 634 | Hearing Date: | 4/26/17 |
Author: | Wilk | Tax Levy: | No |
Version: | 4/19/17 | Fiscal: | Yes |
Consultant: | Favorini-Csorba | ||
Santa Clarita Valley Water District
Reorganizes Castaic Lake Water Agency and Newhall County Water District into the Santa Clarita Valley Water District.
Background
Local Agency Formation Commissions. The Cortese-Knox-Hertzberg Act creates a local agency formation commission (LAFCO) in each county to control the boundaries of cities, county service areas, and most special districts. The courts repeatedly refer to LAFCOs as the Legislature’s watchdog over boundary changes. To plan for the future boundaries and service areas of the cities and special districts, a LAFCO must adopt a policy document for each city and district called a sphere of influence. The LAFCOs’ boundary decisions must be consistent with the spheres of influence of the affected cities or districts. Spheres must be updated at least every five years.
Local governments can only exercise their powers and provide services where LAFCO allows them to: within their boundaries (which are set by LAFCO), within their spheres of influence but outside their boundaries (with authorization by LAFCO), and outside their spheres to address a major threat to public health if the extension is consistent with LAFCO’s policies. 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.
Most boundary changes begin when a city or special district applies to LAFCO, or when registered voters or landowners file petitions with a LAFCO. In limited circumstances, LAFCO can initiate some special district boundary changes: consolidations, dissolutions, mergers, subsidiary districts, or reorganizations. Boundary changes require four (sometimes five) steps:
- First, there must be a completed application to LAFCO, including a petition or resolution, an environmental review document, an agreement on how property taxes will be transferred, and a plan for services that describes what services will be provided at what level and how those services will be financed.
- Second, LAFCO must hold a noticed public hearing, take testimony, and may approve the proposed reorganization. LAFCO may impose terms and conditions that spell out what happens to the assets and liabilities of affected local agencies. If LAFCO disapproves, the proposed reorganization stops.
- Third, LAFCO must hold another public hearing to measure written protests in order to determine whether an election is needed. Although there are many exceptions, in most cases an election is required if 25 percent of the voters in a district, or voters representing 25 percent of the assessed value of land, submit written protests.
- Fourth, if state law requires an election, it occurs among the affected voters, requiring majority voter approval.
- Finally, LAFCO’s staff files formal documents to complete the reorganization.
The Cortese-Knox-Hertzberg Act also requires a LAFCO to approve a consolidation where all of the merging districts pass substantially similar resolutions endorsing the consolidation, although the LAFCO may still impose terms and conditions.
Castaic Lake Water Agency. In 1962, the Legislature created the Upper Santa Clarita Valley Water Agency to provide State Water Project (SWP) water to the Santa Clarita Valley in Los Angeles County. The agency was subsequently renamed the Castaic Lake Water Agency (CLWA). At the time, CLWA was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers (homes and businesses). Initially, four retail entities received water from CLWA: two public water districts, Los Angles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD); and two private water companies regulated by the Public Utilities Commission, the Santa Clarita Water Company and Valencia Water Company. The current CLWA board is composed of 11 members: three members elected at large, two members elected for each of three elective divisions, a member appointed by NCWD, and a member appointed by District 36.
There is an extensive history of litigation over water in the Santa Clarita Valley—particularly among NCWD and CLWA. In particular, litigation has arisen over whether CLWA can provide retail water service. In 1999, CLWA purchased the Santa Clarita Water Company. Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either:
- A wholesaler to which the water would have otherwise been sold, or
- A public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
The CLWA's purchase of the SCWC was criticized by some residents and one of the CLWA's board members, ultimately resulting in litigation over whether CLWA had exceeded the authority provided in its founding statute. In order to settle the issue, CLWA, believing that the 1990 statute was sufficient authority to support the purchase, sponsored AB 134 (Kelly, 2001) to clarify that authority. That bill, among other things, granted CLWA the authority to exercise the powers provided to county water districts and:
- Clarified that CLWA has the authority to provide retail water service to the then existing SCWC boundaries.
- Prohibited CLWA from serving water to retail customers in NCWD’s boundaries unless it has the approval of NCWD.
- Prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority—instead of going through the typical LAFCO process to exercise new powers.
- Required the approval of NCWD before CLWA could serve water to retail customers located within NCWD’s boundaries but who were not receiving service from that district.
That same year, SB 609 (Costa, 2001) required any dissolution of NCWD be put before the voters if the commission finds that a petition has been signed by 10 percent of the voters. According to the Assembly floor analysis of SB 609, that amendment was a part of NCWD’s agreement not to oppose AB 134 (Kelly). Both bills passed and were chaptered.
CLWA later acquired all of the outstanding stock of Valencia Water Company through a settlement of an eminent domain proceeding in 2012. In April 2014, NCWA sued CLWA, alleging that CLWA was serving water at retail through Valencia Water Company in violation of its enabling act. However, in December 2015, NCWD and CLWA agreed to stay further litigation pending settlement negotiations, and on December 13, 2016, the boards of both districts voted to settle with one dissenting vote.
The settlement agreement provided the two districts would jointly seek legislation to create a single new successor entity to build on and lead to greater success in water conservation, groundwater management, and recycled water provision across the Santa Clarita Valley. The settlement agreement provided for, among other things:
- The structure of the new district’s board;
- Powers to be exercised by the district;
- Establishment of an independent ratepayer advocate;
- Creation of retail districts to ensure that ratepayers of the dissolved district continue to bear their own legacy indebtedness;
- Supermajority vote requirements for certain actions;
- The transfer of all assets, liabilities, contracts, and employees of the existing districts to the new agency; and
- Termination of the settlement agreement if legislation isn’t chaptered in 2017.
CLWA and NCWD want the Legislature to form the new district pursuant to the settlement agreement.
Proposed Law
Senate Bill 634 repeals the CLWA principal act and creates the Santa Clarita Valley Water District (SCVWD) by reorganizing CLWA and NCWD into the new district and provides that SCVWD is the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. The purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale, and provide a means to unify and modernize water resource management within the Santa Clarita Valley. The initial boundaries of the new district are the same as those of CLWA as existing on December 31, 2017 and as confirmed by the Los Angeles LAFCO. Fees and charges imposed by CLWA and NCWD continue to be levied until the new district’s board modifies them, and the new district is the successor in interest to CLWA’s State Water Project contract and all associated rights and responsibilities.
SB 634 creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. The new district must continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and the new district must take the appropriate steps to dissolve the company and transfer its assets and liabilities to the new district. Any future proceedings to incorporate District 36 must go through LAFCO.
SB 634 also creates three electoral divisions for the new district and specifies the initial boundaries of those divisions. Those boundaries must be adjusted after each census according to existing law.
Board of Directors. SB 634 establishes an initial board of directors that consists of the 15 members who are in office on the formation date, specifically the five elected directors of NCWD, the nine elected directors of CLWA, and the one appointed director of CLWA representing District 36. SB 634 also extends the terms of these directors by two years, to 2020 and 2022, respectively. As directors’ respective terms expire, their successors are elected by electoral division, with four directors elected from each of three divisions for staggered terms. Accordingly, after all the initial terms expire, the district’s board comprises 12 elected directors and one appointed director, for a total of 13. SB 634 abolishes the appointed director position as of January 1, 2025, and may be abolished earlier if District 36 is incorporated into the new district or upon a majority vote of the Los Angeles County Board of Supervisors to eliminate the appointed position. In addition, following the 2024 general election, three board members must be elected from each division, for a total of nine. SB 634 also establishes procedures for filling vacancies on the board. Most actions of the board require a majority vote. However, SB 634 requires a four-fifths supermajority for several actions until January 1, 2025, including to:
- Support or further amendments to the new district’s act;
- Incur new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of the new district; and
- Change the volumetric, non-tiered rate structure imposed by NCWD as of December 31, 2017.
On or before January 1, 2019, the board must develop and adopt a ratesetting process that includes an advisory independent ratepayer advocate. Any changes to the independent ratepayer advocate or ratesetting process requires a four-fifths supermajority until January 1, 2025 and a majority thereafter.
Powers and Functions. SB 634 gives the new district the same powers as a county water district, as well as the following powers to:
- Acquire, hold, and utilize water and water rights, including, but not limited to, water available from the state under the State Water Resources Development System, and to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale throughout the territory of the district;
- Construct, operate, and maintain works to develop energy and to sell that energy;
- Develop, treat, distribute, manage, and reclaim water, and to store and recover water from groundwater basins located wholly or partially inside or outside the boundaries of the district and, in exercising that power, to make and enter into contracts allowing that storage and recovery;
- Enter into contracts and join with other agencies to carry out the district’s powers;
- Require reporting of production, distribution, and reclamation of water in amounts greater than 10 acre feet per year;
- Participate in a groundwater sustainability agency;
- Construct works along and across any stream of water, street, highway or railway if it restores those crossings to their prior state;
- Pursuant to existing law, levy and collect standby charges in connection with the provision of water service, as well as capacity charges and connection fees; and
- Annex and contain lands situated in more than one county.
SB 634 prohibits a public corporation or public agency with a substantially similar purpose from being formed within the district without the consent of the board. SB 634 also incorporates numerous provisions of the CLWA principal act into the SCVWD act either identically or in a substantially similar manner, including provisions that:
- Authorize the district to include noncontiguous parcels;
- Prescribe the method used to fill the director position appointed by District 36;
- Deem the appointed director not an incompatible office or presenting a conflict of interest as long as the appointed director does not participate in the decision-making where a conflict might exist;
- Define eligible voters and voting procedures;
- Validate proceedings and bonds of SCVWD and provide other financial security for bondholders;
- Specify the manner of appointing officers for the district;
- Allow SCVWD to exercise powers under county water district law; and
- Establish a lien on property that has unpaid charges or fees.
LAFCO Process. While SB 634 creates the district, it also requires the district to submit a plan for services to the Los Angeles County LAFCO, which must hold a hearing within 60 days. The LAFCO must also prepare a report that includes terms and conditions under LAFCO law for the creation of the district that are not inconsistent with the provisions of the act. These conditions are binding on the district. SB 634 also requires the LAFCO to certify any powers that were exercised by CLWA and NCWD prior to the formation of the new district. Any powers provided in the act to the new district but not exercised by CLWA and NCWD at the time of formation may only be exercised with LAFCO approval. SB 634 also provides that no property tax exchange is required, and except as provided in the act, Cortese-Knox-Hertzberg Act does not apply to the district’s application for conditions. The bill further specifies that the Los Angeles LAFCO may not provide
SB 634 declares that its provisions are severable and includes numerous findings and declarations.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. The water governance structure in the Santa Clarita Valley has been muddled for many years. Conflict and litigation between CLWA and NCWD extends back almost two decades, at significant cost to ratepayers. These agencies have confusing and disconnected service areas and have duplicative staff and infrastructure needs that create inefficiencies. Their boards contain an unusual mix of members elected at-large, by-district, and appointed. SB 634 is the culmination of lengthy studies and public outreach to develop water governance that makes sense. It will allow for the gradual elimination of duplicative staff and infrastructure, greater conjunctive use of groundwater, and a transition to entirely directly elected board, by district. It also incorporates an independent ratepayer advocate to ensure that rates are fair. Finally, SB 634 avoids concerns about subsidization among districts because each area bears its own legacy indebtedness, and it provides a role for LAFCO to condition its formation and review its powers. SB 634 presents a fleeting opportunity to resolve a long history of conflict and to benefit the ratepayers of the Santa Clarita Valley.
2. Horseshoes and hand grenades. The dissolution and formation of districts with as many financial and legal entanglements as CLWA and NCWD is a complex technical and political matter. The Legislature delegated responsibility to LAFCOs for setting boundaries under the principle that an entity closer to the local level would ultimately make wiser decisions, and provided for a protest procedure that gives local residents the opportunity to vote on proposals if there is enough opposition. SB 634 includes some elements of LAFCO review, including by requiring a plan for services and allowing the LAFCO to impose terms and conditions. It also leaves in the hands of LAFCO some of the implementation of the transfer, and ensures that future changes to the district’s boundaries and powers would be subject to LAFCO approval. However, it removes from LAFCO’s hands the ultimate authority to form the new district and instead creates it via statute. This is not necessarily inconsistent with LAFCO law—a LAFCO may not disapprove a consolidation jointly requested by all affected agencies. The bill does however avoid a protest process, and with it, the potential for a vote on whether the new district should be formed. The bill’s sponsors argue that this is necessary to: (1) take advantage of a heretofore unseen level of collaboration between CLWA and NCWD; and (2) ensure that the process completes prior to November 2018, when elections would ordinarily be scheduled. They also argue that the intention of the process established by SB 609 (Costa) was to prevent a hostile dissolution of NCWD, whereas the consolidation proposed by this bill is being pursued at the request of that agency, and furthermore, that because a consolidation under LAFCO law would not specifically result in the dissolution of NCWD, SB 609 does not apply. This perspective is shared by staff at the Los Angeles LAFCO. Opponents argue that the intention of SB 609 and the LAFCO process in general is being thwarted by this bill, and that voters deserve the right to weigh in on their water governance. Does this bill strike the right balance between streamlining the LAFCO process and retaining its important elements, including a public vote?
3. To what end? The concept of merging water providers in the Santa Clarita Valley was studied jointly by NCWD and CLWA. This study culminated in a November 2016 report by the two districts identifying cost savings, economies of scale, and improved water governance as potential gains to be had from a consolidation. SB 634 is a necessary step towards achieving those outcomes, but it is not sufficient. The bill also allows for retaining retail service divisions even after all legacy debt has been paid off, which appears to contradict the goal of unifying water service in the Valley. Furthermore, the purpose of the district, while improved from previous versions of the bill, continues to lack a complete description of the objectives or goals that this district is intended to meet. Finally, on April 19th, 2017, the process for forming a Groundwater Sustainability Agency (GSA) under California’s groundwater regulations laws was initiated in the Santa Clara Valley. Yet this GSA is envisioned to include CLWA, NCWD, and the Santa Clarita Water Division. This decision raises questions about whether the new district will function as a unified agency and about how seats on the governing board of the GSA will be apportioned. To ensure that the goals of this consolidation are fully realized, the Committee may wish to consider amending SB 634 to:
- Require SCVWD to eliminate the retail divisions once all of CLWA and NCWD’s debt is retired;
- Add goals to the purpose of the district provided in the act; and
- Address the new district’s role on the board of the GSA and in managing groundwater in the Santa Clarita Valley.
4. Delayed elections. SB 634 delays by two years the staggered elections for current CLWA and NCWD board members. This effectively extends the terms of current board members by two years. Proponents argue that this delay is necessary to provide stable leadership during the transition period to the new district structure and avoid undoing the delicate agreement negotiated by the current boards that has led to the current détente. Opponents of SB 634 argue that this deprives residents the opportunity to run for those seats, and that in any case, the board composition may change prior to the creation of the new district as a result of recall efforts launched against two of NCWD’s board members and the planned move of a third member.
5. Let’s be clear. Since SB 634 consolidates NCWD and CLWA into a new district instead of dissolving NCWD, the provision of SB 609 (Costa, 2001) establishing a lower protest threshold for a dissolution of NCWD do not apply. And because SB 634 provides that NCWD will no longer exist as a separate entity, the NCWD-related provision of SB 609 becomes dead law. The Committee may wish to consider amending SB 634 to repeal that provision.
6. Mandate. The California Constitution generally requires the state to reimburse local agencies for their costs when the state imposes new programs or additional duties on them. According to the Legislative Counsel’s Office, SB 634 creates a new state-mandated local program because it increases the duties of the district. SB 634 disclaims this liability by stating that no reimbursement is required under the Constitution because local agencies have the authority to levy fees sufficient to cover the cost of the increased services.
7. Incoming! On March 28th, the Committee on Natural Resources and Water approved SB 634 by a vote of 7-0. The Committee is hearing the bill as the committee of second reference.
Support and Opposition
(4/21/17)
Support: Castaic Lake Water Agency (Co-Sponsor); Newhall County Water District (Co-Sponsor); AMS Fulfillment; BizFed; California Wilderness Coaltion; City of Santa Clarita; San Gabriel Mountains Forever; Climate Resolve; Community Hiking Club; Los Angeles Supervisor Kathryn Barger; Santa Clarita Valley Chamber of Commerce; United Water Conservation District; Valley Industry Association; 18 individuals.
Opposition: CALAFCO; Center for Food Safety; Comprehensive Development Consulting; Democratic Alliance for Action; Friends of the Santa Clara River; Local Agency Formation Commission for the County of Los Angeles; North Valley Democratic Club; Planning and Conservation League; Progressive Democrats of the Santa Monica Mountains; Santa Clarita Organization for Planning and the Environment (SCOPE); Sierra Club California; 5 individuals.
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SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Robert Hertzberg, Chair
2017 - 2018 Regular
Bill No: SB Hearing Date: March 28, 2017
Author: | Wilk | ||
Version: | February 17, 2017 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Dennis O'Connor | ||
Subject: Santa Clarita Valley Water District
BACKGROUND AND EXISTING LAW
- The Castaic Lake Water Agency (CLWA) was organized as the Upper Santa Clara Valley Water Agency on April 20, 1962 by passage of AB 26 (Carrell) (Stat. 1962, 1st Ex. Sess. Ch. 28). The agency was created to provide State Water Project (SWP) water to the Santa Clarita Valley. The agency was authorized to deliver water wholesale to public or private water agencies that deliver water to retail customers (homes and businesses). There were initially four retail entities that were to receive water from CLWA; two public water districts, Los Angles Waterworks District No. 36 (District 36) and Newhall County Water District (NCWD) and two private water companies regulated by the Public Utilities Commission (Santa Clarita Water Company and Valencia Water Company).
On April 30, 1963, the agency entered into an agreement with the State for an original contract amount of 41,500 acre-feet of water per year (af/y) from the SWP.
In 1970, AB 1781 (Russell) (Stat. 1970, Ch. 443), among other things, changed the name of the Upper Santa Clara Valley Water Agency to the Castaic Lake Water Agency.
In 1986, AB 4175 (Wright) (Stat. 1986, Ch. 832), among other things, expanded of the board of directors to eleven members and authorized CLWA to establish and impose developer impact fees and a water standby charge.
In 1991, the CLWA increased its SWP contract amount by 12,700 af/y by acquiring the Devil’s Den Water District. It also purchased an additional 41,000 af/y of contract amount from the Kern County Water CLWA and the Wheeler Ridge-Maricopa Water Storage District in March 1999. The CLWA’s current contract amount is 95,200 af/y.
In 1999, CLWA purchased the Santa Clarita Water Company (SCWC). Because the CLWA's authorizing statute limits it to providing water at wholesale, the CLWA relied on a 1990 statute that allowed any agency that contracts for water from the SWP to sell directly to "any ultimate water consumer." Under that statute, a wholesale-only CLWA may deliver water to retail customers only if it has a written contract with either:
- A wholesaler to which the water would have otherwise been sold, or
- A public entity retail purveyor or a retail water corporation regulated by the California Public Utilities Commission.
The CLWA's purchase of the SCWC was criticized by some residents and one of the CLWA's board members. This criticism rose to the level of litigation resulting in an appellate court decision that decided the case in part, and remanded to the superior court with instructions to determine if the CLWA and SCWC are in fact separate entities.
Some residents express concern that the CLWA's purchase of SCWC gives the CLWA new access to groundwater via SCWC's existing wells. Those residents are concerned that the CLWA will use its new access to groundwater to provide water for additional growth.
In 2001, the CLWA, believing that the 1990 statute (12944.7 of the Water Code) was sufficient authority to support the purchase, sponsored AB 134 (Kelly) to clarify that authority.
That bill, among other things:
- Clarified that CLWA has the authority to provide retail water service to a limited area specifically described in the bill – essentially the then existing SCWC boundaries.
- Prohibited CLWA from serving water to retail customers in NCWD’s boundaries unless it has the approval of NCWD.
- Prohibited CLWA from providing retail service to any customer outside the boundaries described in the statute without new legislative authority.
- Prohibited CLWA from using any groundwater pumped from beneath SCWC’s service area for use outside that service area.
- Required the approval of NCWD before CLWA could serve water to retail customers located within NCWD’s boundaries but who were not receiving service from that district.
On September 12, 2001, SB 609 (Costa) a.k.a. the Water Omnibus Act of 2001 was amended to add Government Code Section 57114.5 to the (then titled) Cortese-Knox Local Government Reorganization Act of 1985. That section provided that for any proposal involving the dissolution of the NCWD, that the Local Agency Formation Commission shall forward the change of organization or reorganization for confirmation by the voters if the commission finds that a petition requesting that the proposal be submitted to confirmation by the voters has been signed by 10% of the voters.
According to the Assembly floor analysis of SB 609, that amendment was a part of NCWD’s agreement not to oppose AB 134 (Kelly). Both bills passed and were chaptered.
On December 18, 2012, Castaic acquired all of the outstanding stock of Valencia Water Co. in a condemnation proceeding.
In April 2014, NCWA sued CLWA in Los Angeles County Superior Court, case no. BS148143. NCWA alleged CLWA was serving water at retail through Valencia, in violation of its enabling act.
In December 2015, the Parties agreed to stay further litigation pending settlement negotiations.
On Dec. 13, 2016 the Boards voted to seek legislation with one opposing vote. A recall initiative has been filed against two of the NCWD Board members seeking to dissolve their district.
- The Castaic Lake Water Agency Law created the Castaic Lake Water Agency and authorizes the agency to acquire water and water rights, including water from the State Water Project, and to provide, sell, and deliver water at wholesale for municipal, industrial, domestic, and other purposes.
The Law provides, among other things that the agency may exercise the authority granted by the County Water District Law.
PROPOSED LAW
This bill would:
- Repeal the Castaic Lake Water Agency Law.
- Create a new Santa Clarita Valley Water District Act, which would combine both NCWD and CLWA into the new Santa Clarita Valley Water District. NCWD and CLWA would be prohibited from operating as separate entities or exercising independent functions.
Key elements of the new Act include:
- Successor. The new district would be the successor to NCWD and CLWA, and succeed to all their assets, liabilities, contracts, and employees.
- Board of Directors. The initial board of directors of the new district would consist of the following 15 members who are in office on the formation dates: the five elected directors of NCWS, the nine elected directors of CLWA, and the one appointed director of Castaic representing District 36. As directors’ respective terms expire, their successors will be elected by division. There will be four directors elected from each of three divisions, so that after all the initial terms expire, there will by 12 elected directors and one appointed director, for a total of 13. After the 13-member board is seated, the new district will have the power to reduce the number of elected directors to three from each division, for a total of nine. The appointed director’s position will be eliminated in the future if District 36 is incorporated into the new district, or upon a majority vote of the Los Angeles County Board of Supervisors to eliminate the appointed position.
- Functions. The functions of the new district would include retail, wholesale, recycled water, stormwater capture, water management, and all the functions currently exercised by NCWD and CLWA.
- Powers. The powers of the new district would be those of a county water district, and any other powers specified in the legislation.
- Legacy Indebtedness. NCWD and CLWA would bear their own legacy indebtedness.
- Independent Ratepayer Advocate. The new districts retail rate setting process will include an independent ratepayer advocate.
- Supermajority. A four-fifths majority vote of the board would be required for:
- Any action supporting or furthering amendments to the new district’s Act.
- Reducing the number of directors.
- Incurring new debt exceeding $10 million for any singe debt issue as it relates to any retail functions of the new district.
- Changes to the Newhall volumetric (non-tiered) rate structure existing on the formation date.
- Modification or elimination of the independent ratepayer advocate’s role.
- Impose duties on the district and a county in connection with the operation of the district, the bill would impose a state-mandated local program. 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 the statutory provisions noted above.
- Make a number of findings.
ARGUMENTS IN SUPPORT
According to Newhall County Water District, “This legislation is the culmination of two years of extraordinary collaboration between NCWD, CLWA and the public. After years of litigation between the two agencies, NCWD and CLWA were able to set aside differences and work to create a new agency for the benefit of local residents and businesses of the Santa Clarita Valley. In fact, many of the provisions outlined in SB 634 place a unique and special emphasis on customers, including the creation of a ratepayer advocate, supermajority voting requirements for major financial policies and directly elected divisional governance structure. These provisions were shaped in large part by the priorities expressed by the public during an extensive, yearlong outreach process.”
“The bill also strongly reflects statewide goals with regards to integrated regional water management. Today, the Santa Clarita Valley – a relatively small region – is served by a patchwork of five separate water providers. This bill begins to unify water governance and service for the Valley’s 300000 residents. It would facilitate the development of local supplies – specifically recycled water – by leveraging economies of scale. It would improve system reliability by connecting currently separate systems. It allows for more effective groundwater management, especially in the context of the Groundwater Sustainably Act. And it would unify water use efficiency efforts, which are currently lead by five separate agencies with different messaging, targets and strategies.”
Castaic Lake Water Agency adds “The proposal was provided to the public for review. Following four public workshops, joint board meetings, two public opinion surveys, digital engagement, direct and electronic mail and one-on-one presentations, amendments were made to the proposal and customers indicated overwhelming support. The yearlong analysis culminated with ah 130-page study that identified significant savings, stronger water management and more efficient operations. As a result, the two bards approved the new district by a vote of 14-1. Since the existing Castaic Lake Water Agency is formed by special act of the legislature, new legislation is required to formalize the local action and create the new district.”
ARGUMENTS IN OPPOSITION
Opponents raise a number of objections. These include:
- The bill is a water grab for the Newhall Ranch Development – it is the only area in CLWA that is not in a groundwater agency – granting county water district powers will enable CLWA to serve groundwater to the project.
- NCWD is a well-functioning agency – there is nothing that needs to be “fixed” by merging with CLWA.
- Voters will be deprived of an election – dissolution of NCWD and ratification of the new district should both be put before the voters – a poll is no substitute for election, especially a flawed poll.
- The new agency proposal is a "project" under the California Environmental Quality Act (CEQA) and should trigger an environmental impact report (EIR).
- The bill erases any differences between retailers and wholesalers, creating a “vertical” monopoly.
- The bill mentions groundwater management a lot, with no mention of how it relates to SGMA.
- The bill makes no attempt to include the entire river the Santa Clara River – the source of recharge to the underground aquifers in Santa Clarita, the source of "run off" that is proposed to be "captured" by this new agency, and is partly now, not covered by any wholesale or retail purveyor.
- The bill makes numerous references to “recycled water” but no mention of how it relates to the current provision of recycled water by the Sanitation Districts of Los Angeles County.
- The bill allows ground water to be shipped and sold out of district.
- The bill ignores Los Angeles County Water Works District 36.
- The bill also ignores Los Angeles County Water Works District 37, which covers part of the area where the River headwaters are found.
- The bill has language allowing service outside its boundaries
- The bill allows financial debts from the “old” agencies to be reassigned to all people in the new agency.
- Legitimizes the questionable acquisition of Valencia Water Company, which operates it as a private water company, causing Valencia rate payers to pay dividends totaling $800,000 per year.
COMMENTS
Highly Litigious Group Of Players. CLWA, NCWD, Santa Clarita Organization for Planning & Environment (SCOPE) and its members, and the City of Santa Clarita frequently find themselves in court regarding available water supplies, water management, and landuse decisions. More times than not it seems one of these parties are suing one of the others. A review of published appellate court decisions shows at least 15 relevant cases that names at least one of these groups as either the plaintiff, respondent, or real party of interest. There are also a number of unpublished decisions.
Mostly Proxy Fights Over The Newhall Ranch Development. The Newhall Ranch development is a proposed large scale master-planned community in an unincorporated portion of Los Angeles County along the Santa Clara River in the westerly portion of the Santa Clarita Valley. The development was conceived in the 1980s by Newhall Land, a land management company which created for the master community planning of nearby Valencia in the 1960s. The proposed development has been met with fierce local opposition and has itself been the subject of numerous law suits over they years.
Part Of A Proposed Settlement Agreement. As noted in the Background (above) NCWA sued CLWA in Los Angeles County Superior Court, alleging that CLWA was serving water at retail through Valencia, in violation of its enabling act.
The proposed settlement agreement calls for legislation to form a new district that combines NCWD and CLWA. The agreement requires the legislation to include the provisions listed under “Key elements of the new Act” under “Proposed Law” (above).
What Is The Purpose Of The District? The bill states that the purpose of the district includes a list of powers but no statement as to what end. Granted, this list is similar to what is included in the current CLWA Act, but that act was initially drafted in 1962. Since then, the trend has been to include in special district acts a more affirmative statement of purpose.
For example, the Santa Clara Valley Water District Act states, in Section 4, “The purposes of this act are to authorize the district to provide comprehensive water management for all beneficial uses and protection from flooding within Santa Clara County.”
A lack of agreement on the main purpose of a special district has been the root cause of conflicts in many special districts. A more clear statement of the ultimate purpose or goal of the agency would help avoid future conflicts.
Some Agencies Are Already Providing Some Of These Services. For example, the new act states that one of the purposes of the new district is to provide recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale. The Sanitation Districts of Los Angeles County already provide this service. It might be that the sponsors envision the new agency becoming the sole integrated regional water resources management agency for the Santa Clarita Valley. If so, it would probably be helpful if that was made explicit in the new act. Moreover, it would also be helpful to include these agencies in the discussion of the purpose of this new agency.
Typically, these potential overlapping jurisdictions are worked out by Local Agency Formation Commissions (LAFCos). This is likely to be a topic of further discussion in the Governance and Finance Committee (see below).
Groundwater Management and the Sustainable Groundwater Management Act. The new act states that one of the purposes of the new district is to “develop groundwater management plans within the district that may include, but are not limited to, limitation, conservation, overdraft protection plans, and groundwater extraction charge plans, and implement any or all of those plans …” The Sustainable Groundwater Management Act (SGMA) assigns those powers to groundwater sustainability agencies (GSAs). The boundaries of the new agency overly most of the Santa Clara River Valley East Subbasin, designated as a high priority basin under SGMA.
If the sponsors envision the new agency becoming the GSA for that basin, it should be stated explicitly. The boundaries of the new agency should probably also be adjusted to match those of the groundwater basin, SGMA should be amended to add the new agency to the list of exclusive GSAs listed in WC §10723, and the new agency should be named as the successor to that basin’s GSA (currently no GSA has been noticed for that basin).
If the sponsors don’t envision the new agency becoming the GSA, then all the references to groundwater management etc. should be qualified as “consistent with an adopted groundwater management plan.”
In any event, adding to the new act the proper cross-references to SGMA would be appropriate.
Other Potential Powers. If the intent is to create a single integrated regional water resources management agency for the Santa Clarita Valley, the bill might also be amended to provide the new agency responsivity for flood management, riparian restoration, watershed management, and other similar responsibilities. This might also suggest expanding the boundaries of the district to include the entire upper watershed of the Santa Clarita River.
What About LAWW 36 &Valencia Water Company? The bill is largely silent on the other two retail water suppliers within the new district’s boundaries. CLWA owns and operates the Valencia Water Company as a private water company not under the jurisdiction of the PUC. As such, the water rates are not subject to Propositions 218 or 26. Also, management of the water company is not subject to Brown Act and other transparency and accountability laws with which most special districts must comply. In creating a new agency, it is not clear why the Valencia Water Company isn’t also dissolved and made a regular part of the new agency.
LAWW 36 is a separate retail water supplier that is under the jurisdiction of Los Angeles County. Again, it might be that the sponsors envision the new agency becoming the sole integrated regional water resources management agency for the Santa Clarita Valley and ultimately bringing LAWW 36 into the fold. And again, if so it would probably be helpful if that was made explicit in the new act. And, it would also be helpful to include Los Angeles County in the discussion of the purpose of this new agency.
Findings. Needless to say, those who object to this bill have issues with the bill’s findings as well. In particular, they take exception to:
(h) – In the minds of many, the public opinion surveys that showed support for creating a new combined public entity were biased, some referring to them as “push polls.”
(j) – Similarly, opponents contend that the process was “open and transparent” only after NCWA and CLWA concluded negotiating the key terms of the settlement.
State Mandated Costs? As this bill imposes duties on the district and a county in connection with the operation of the district, Legislative Counsel has identified this bill as imposing a state-mandated local program. As the bill has been introduced at the request of NCWA and CLWA, shouldn’t they, or the new agency, be responsible for covering any mandated costs?
Technical Issues.
- Public Resources Code §21530 & §21531 have referenced to Castaic Lake Water Agency that would need to be updated.
- Something needs to be done with GC §57114.5 regarding dissolution of NCWD.
- Cannot crosswalk between boundaries of current law and proposed district – the two acts use different descriptions that make comparison of the boundaries very difficult.
- Sec. 11 (c) – the voting instructions don’t match the number of directors in Sec 9 (b); i.e., “vote for one” vs 2 directors per district.
This Bill Is A Work In Progress. Should the committee pass this bill, the author should be encouraged to work with committee staff to resolve the various issues discussed under “Comments.”
Double-Referral. The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the Committee on Governance and Finance. Therefore, if this bill passes this committee, it will be referred to the Committee on Governance and Finance, which will consider the issues within their jurisdiction. Those issues are likely to include topics such as:
- Should voters ratify the new act and dissolve NCWA before it goes in effect?
- What role is there for LAFCo, if any?
- What relevance is GC §57114.5 regarding dissolution of NCWD?
- What should be done about Valencia Water Co.?
- What should be done with LCWW 36?
- How should overlapping powers with other agencies be resolved?
- Why 3 voting districts with up to 4 directors for each district? Why not, for example, 4 districts with 3 directors, or 6 districts with 2 directors?
- What is the role of the independent ratepayer advocate, especially with regard to Valencia Water Co.?
SUGGESTED AMENDMENTS: None
SUPPORT
Castaic Lake Water Agency (Co-Sponsor)
Newhall County Water District (Co-Sponsor)
AMS Fulfillment
Santa Clarita Valley Chamber of Commerce
Valley Industry Association
OPPOSITION
Center for Food Safety
Comprehensive Development Consulting
Democratic Alliance for Action
Friends of the Santa Clara River
Local Agency Formation Commission for the County of Los Angeles
North Valley Democratic Club
Progressive Democrats of the Santa Monica Mountains
Santa Clarita Organization for Planning and the Environment (SCOPE)
Sierra Club California (Unless Amended)
Individuals (5)
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Discussed in Hearing
4MIN
Senate Floor
1MIN
Assembly Floor
37SEC
Assembly Floor
1H
Assembly Standing Committee on Appropriations
21MIN
Assembly Standing Committee on Water, Parks, and Wildlife
16MIN
Assembly Standing Committee on Local Government
3MIN
Senate Floor
48MIN
Senate Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):