SB 1169: Los Angeles County Flood Control District: finances.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2024-07-02
Current Status:
Passed
(2024-07-02: Chaptered by Secretary of State. Chapter 77, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets the Los Angeles County Flood Control District borrow money or obtain federal loan guarantees for flood control work with longer repayment and higher interest, allowing up to 35 years to repay and interest up to 5.5% annually. It also lets the district’s board raise taxes under the state constitution to pay those loans and removes previous limits on how much the district may borrow or issue in bonds.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Los Angeles County Flood Control Act, establishes the Los Angeles County Flood Control District and authorizes the district to control and conserve the flood, storm, and other wastewaters of the district. Existing law authorizes the district to borrow money from certain entities for any flood control work authorized under the act and to repay the same, in annual installments, over a period not to exceed 20 years with an interest at a rate not to exceed 4.25% per annum. Existing law requires the district to annually levy a tax upon the taxable real property of the district clearly sufficient to pay the interest and installments of principal for those loans. Existing law limits the total amount the district may borrow not to exceed in the aggregate the sum of $4,500,000. Existing law also limits the total amount of bonds or other evidence of indebtedness in the aggregate that the district may issue and sell to not exceed $4,500,000.
This bill would instead authorize the district to borrow money or obtain loan guarantees from those entities and to repay the same over a period not to exceed 35 years with interest at a rate not to exceed 5.5% annually. The bill would instead authorize the district to levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, clearly sufficient to pay the interest and installments of principal for those loans. The bill would also delete the limits on the amount the district may borrow and the total amount of bonds or other evidence of indebtedness that the district may issue and sell.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles County Flood Control District.
Existing law, the Los Angeles County Flood Control Act, establishes the Los Angeles County Flood Control District and authorizes the district to control and conserve the flood, storm, and other wastewaters of the district. Existing law authorizes the district to borrow money from certain entities for any flood control work authorized under the act and to repay the same, in annual installments, over a period not to exceed 20 years with an interest at a rate not to exceed 4.25% per annum. Existing law requires the district to annually levy a tax upon the taxable real property of the district clearly sufficient to pay the interest and installments of principal for those loans. Existing law limits the total amount the district may borrow not to exceed in the aggregate the sum of $4,500,000. Existing law also limits the total amount of bonds or other evidence of indebtedness in the aggregate that the district may issue and sell to not exceed $4,500,000.
This bill would instead authorize the district to borrow money or obtain loan guarantees from those entities and to repay the same over a period not to exceed 35 years with interest at a rate not to exceed 5.5% annually. The bill would instead authorize the district to levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, clearly sufficient to pay the interest and installments of principal for those loans. The bill would also delete the limits on the amount the district may borrow and the total amount of bonds or other evidence of indebtedness that the district may issue and sell.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles County Flood Control District.
Existing law, the Los Angeles County Flood Control Act, establishes the Los Angeles County Flood Control District and authorizes the district to control and conserve the flood, storm, and other wastewaters of the district. Existing law authorizes the district to borrow money from certain entities for any flood control work authorized under the act and to repay the same, in annual installments, over a period not to exceed 20 years with an interest at a rate not to exceed 4.25% per annum. Existing law requires the district to annually levy a tax upon the taxable real property of the district clearly sufficient to pay the interest and installments of principal for those loans. Existing law limits the total amount the district may borrow not to exceed in the aggregate the sum of $4,500,000. Existing law also limits the total amount of bonds or other evidence of indebtedness in the aggregate that the district may issue and sell to not exceed $4,500,000.
This bill would instead authorize the district to borrow money or obtain loan guarantees from those entities and to repay the same over a period not to exceed 35 years with interest at a rate not to exceed 5.5% annually. The bill would instead authorize the district to levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, clearly sufficient to pay the interest and installments of principal for those loans. The bill would also delete the limits on the amount the district may borrow and the total amount of bonds or other evidence of indebtedness that the district may issue and sell.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles County Flood Control District.
Existing law, the Los Angeles County Flood Control Act, establishes the Los Angeles County Flood Control District and authorizes the district to control and conserve the flood, storm, and other wastewaters of the district. Existing law authorizes the district to borrow money from certain entities for any flood control work authorized under the act and to repay the same, in annual installments, over a period not to exceed 20 years with an interest at a rate not to exceed 4.25% per annum. Existing law requires the district to annually levy a tax upon the taxable real property of the district clearly sufficient to pay the interest and installments of principal for those loans. Existing law limits the total amount the district may borrow not to exceed in the aggregate the sum of $4,500,000. Existing law also limits the total amount of bonds or other evidence of indebtedness in the aggregate that the district may issue and sell to not exceed $4,500,000.
This bill would instead authorize the district to borrow money or obtain loan guarantees from those entities and to repay the same over a period not to exceed 35 years with interest at a rate not to exceed 5.5% annually. The bill would instead authorize the district to levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, clearly sufficient to pay the interest and installments of principal for those loans. The bill would also delete the limits on the amount the district may borrow and the total amount of bonds or other evidence of indebtedness that the district may issue and sell.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles County Flood Control District.
The objects and purposes of this act are to provide for the control and conservation of the flood, storm and other waste waters of said district, and to conserve these waters for beneficial and useful purposes by spreading, storing, retaining or causing to percolate into the soil within the district, or to save or conserve in any manner, all or any of these waters, and to protect from damage from flood or storm waters, the harbors, waterways, public highways and property in the district, and to provide for public use of navigable waterways under the districts control that are suitable for recreational and educational purposes, if these purposes are not inconsistent with the use by the district for flood control and water conservation.
The Los Angeles County Flood Control District is hereby declared to be a body corporate and politic, and has all the following powers:
1.To have perpetual succession.
2.To sue and be sued in the name of the district in all actions and proceedings in all courts and tribunals of competent jurisdiction.
3.To adopt a seal and alter it at pleasure.
4.To take by grant, purchase, gift, devise or lease, hold, use, enjoy, and to lease or dispose of real or personal property of every kind inside or outside the district necessary to the full exercise of its power.
5.To acquire or contract to acquire lands, rights-of-way, easements, privileges and property of every kind, and construct, maintain and operate any and all works or improvements inside or outside the district necessary or proper to carry out any of the objects or purposes of this act, and to complete, extend, add to, repair or otherwise improve any works or improvements acquired by it as authorized by this act. Construction or improvement of existing facilities may involve landscaping and other aesthetic treatment in order that the facility will be compatible with existing or planned development in the area of improvement.
6.To exercise the right of eminent domain, either inside or outside the district, to take any property necessary to carry out any of the objects or purposes of this act.
7.To incur indebtedness, and to issue bonds in the manner provided in this act.
7a.To borrow money or obtain loan guarantees from the United States of America, any agency or department of the United States, or from any nonprofit corporation, organized under the laws of this state, to which the Reconstruction Finance Corporation, a corporation organized and existing under and by virtue of an act of Congress, entitled Reconstruction Finance Corporation Act, or other agency, or department, of the United States government, has authorized, or shall later authorize, a loan to enable nonprofit corporation to lend money to the Los Angeles County Flood Control District, for any flood control work authorized pursuant to this act, and to repay the same, in annual installments, over a period of not to exceed 35 years, with interest at a rate of not to exceed 5.5 percent annually, payable semiannually, and, without the necessity of an election when authorized by resolution of the board of supervisors, as evidences of that indebtedness, the district is authorized to execute and deliver a note, or a series of notes, or bonds, or other evidences of indebtedness, signed by the chairperson of the board of supervisors of the district, which notes, bonds, or other evidences of indebtedness, shall be negotiable instruments if so declared in the resolution of the board of supervisors providing for their issuance, and notes, bonds, or other evidences of indebtedness, may have interest coupons attached to evidence interest payments, signed by the facsimile signature of the chairperson of the board. All applications for these loans or loan guarantees shall specify the particular flood control work or projects for which the funds will be expended, and when received, the money shall be deposited in a special fund, and shall be expended for those purposes only which are described and referred to in the applications. If a surplus remains after the completion of the work, the surplus shall be applied to the payment of the note, notes, bonds, or other evidences of indebtedness, executed as provided, for the loan including interest coupons. The board of supervisors may levy a tax in compliance with the applicable provisions of Article XIIIC of the California Constitution clearly sufficient to pay the interest and installments of principal, as the same shall become due and payable, under any loan made pursuant to the authority of this section, and to create and maintain a reserve fund to assure prompt payment, as may be provided by resolution of the board of supervisors. Notwithstanding any other provisions of law, interest earned on funds representing the proceeds of bonds of the district shall be deposited and retained in the reserve fund of the district to meet the principal and interest falling due on these bonds.
7b.The power granted in subsection 7a shall be extended to authorize the issuance and sale of bonds or other evidences of indebtedness of the district to the County of Los Angeles and the purchase by the county in accordance with An act authorizing the investment and reinvestment and disposition of any surplus moneys in the treasury of any county, city and county, incorporated city or town or municipal utility district or flood control district, approved April 23, 1913, as amended; all subject to the provisions and limitations of subsection 7a relative to the disposition and use of funds, interest rate, period of repayment, tax rate and mode of issuance.
8.To cause taxes to be levied and collected for the purpose of paying any obligation of the district in the manner provided in this section.
8a.To levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, or impose a fee or charge, in compliance with the applicable provisions of Article XIIID of the California Constitution, to pay the costs and expenses of carrying out projects and programs to increase stormwater capture and reduce stormwater and urban runoff pollution in the district pursuant to criteria established by the ordinance adopted pursuant to subsection 8c. Projects and programs funded by the revenues from the tax, fee, or charge may include projects providing multiple benefits that increase water supply, improve water quality, and, where appropriate, provide community enhancements such as the greening of schools, parks, and wetlands, and increased public access to rivers, lakes, and streams. Any tax, fee, or charge that is levied or imposed pursuant to this subsection shall be levied and collected together with, and not separately from, taxes for county purposes, and the revenues derived from the tax, fee, or charge shall be paid into the county treasury to the credit of the district, and the board of supervisors shall expend these funds to pay for costs and expenses pursuant to this subsection.
8b.The district shall allocate the revenues derived from any tax, fee, or charge imposed pursuant to subsection 8a as follows:
(A)Ten percent shall be allocated to the district for implementation and administration of projects and programs described in subsection 8a, and for payment of the costs incurred in connection with the levy and collection of the tax, fee, or charge and the distribution of the funds generated by imposition of the tax, fee, or charge, as provided by the procedures established by the ordinance adopted pursuant to subsection 8c.
(B)Forty percent shall be allocated to cities within the boundaries of the district and to the County of Los Angeles, in the same proportion as the amount of revenues collected within each jurisdiction and within the unincorporated territories, to be expended by those cities within the cities respective jurisdictions and by the County of Los Angeles within the unincorporated territories that are within the boundaries of the district, for the implementation, operation and maintenance, and administration of projects and programs described in subsection 8a, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
(C)Fifty percent shall be allocated to pay for the implementation, operation and maintenance, and administration of watershed-based projects and programs described in subsection 8a, including projects and programs identified in regional plans such as stormwater resource plans developed pursuant to Part 2.3 (commencing with Section 10560) of Division 6 of the Water Code, watershed management programs developed pursuant to waste discharge requirements for municipal separate storm sewer system (MS4) discharges within the coastal watersheds of the County of Los Angeles, issued by the Los Angeles Regional Water Quality Control Board, and other regional water management plans, as appropriate, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
8c.The governing board of the district shall adopt an ordinance to establish criteria and procedures to implement the authority granted pursuant to subsections 8a and 8b.
9.To make contracts, and to employ for temporary services only, expert appraisers, consultants and technical advisers, and to do all acts necessary for the full exercise of all powers vested in the district, or any of the officers of the district, by this act.
10.To grant or otherwise convey to counties, cities and counties, cities or towns easements for street and highway purposes, over, along, upon, in, through, across or under any real property owned by the Los Angeles County Flood Control District.
11.To remove, carry away and dispose of any rubbish, trash, debris or other inconvenient matter that may be dislodged, transported, conveyed or carried by means of, through, in, or along the works and structures operated or maintained pursuant to this act and deposited upon the property of the district or elsewhere.
12.To pay premiums on bonds of contractors required under any contract if the amount payable to the contractor exceeds five million dollars ($5,000,000); provided, that the specifications in these cases shall specifically so provide and state that the bidder shall not include in their bids the cost of furnishing the required bonds.
13.To lease, sell or dispose of any property (or any interest in the property) whenever in the judgment of the board of supervisors, the property, or any interest in the property or part of the property, is no longer required for the purposes of the district, or may be leased for any purpose without interfering with the use of the same for the purposes of the district, and to pay the compensation received from the lease, sale, or disposal of the property, if any, into the general fund of the district and use the same for the purposes of this act. However, nothing herein shall authorize the board of supervisors or other governing body of the district or any officer thereof to sell, lease or otherwise dispose of any water, water right, reservoir space or storage capacity or any interest or space therein except to public agencies for recreational purposes when the use is not inconsistent with the use by the district for flood control and water conservation purposes; or except as provided by Section 17 of this act. However, the district may grant and convey to the United States of America, or to any federal agency authorized to accept and pay for the land or interests in land, all lands and interests in land, now owned or later acquired, lying within any channel, dam or reservoir site, improved or constructed, in whole or in part, with federal funds, upon payment to the district of sums equivalent to actual expenditures made by it in acquiring the lands and interests in land so conveyed and deemed reasonable by the Secretary of War and the Chief of Engineers.
The district, by or through its board of supervisors, or other board or officers at any time succeeding to the duties or functions of its board of supervisors, is authorized and empowered to warrant and defend the title to all land and interests in the land so conveyed to the United States of America or to any agency and its respective assigns; to covenant and agree to indemnify and keep indemnified and to hold and save harmless and exonerated the United States of America or any agency, to which lands or any interest in the land are so conveyed by the district, from and against all demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by, any defect or defects in the title to any land or interest in land so conveyed by the district; to reimburse and save harmless and exonerated the United States of America or any agency for any and all amounts, paid, and expenses incurred, in the compromise or settlement of any demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by any claim to or defect or defects in the title to any land or interests in land so conveyed by the district; to pay all just compensation, costs, and expenses, which may be incurred in any condemnation proceeding deemed necessary by the United States of America or that agency, in order to perfect title to any land or interests in land, including without limitation all attorneys fees, court costs and fees, costs of abstracts and other evidences of title, and all other costs, expenses, or damages incurred or suffered by the United States of America or that agency; and consent is given to the bringing of suit or other legal proceedings against the district by the United States of America or that agency, as the case may be, in the proper district court of the United States, upon any cause of action arising out of any conveyance, contract, or covenant made or entered into by the district pursuant to the authority granted in this act, or to enforce any claims, damages, loss, or expenses arising out of, or resulting from, any defect in the title to the land or any interest in the land or any claims of others in or to the land or interest in the land.
14.To provide, by agreement with other public agencies or private persons or entities or otherwise, for the recreational use of the lands, facilities, and works of the district which shall not interfere, or be inconsistent, with the primary use and purpose of the lands, facilities, and works by the district.
15.In addition to its other powers, the district shall have the power to preserve, enhance, and add recreational features to its properties and upon a finding by the board of supervisors that the acquisition is necessary for those purposes, to acquire, preserve, enhance, and add recreational features to lands or interests in lands contiguous to its properties, for the protection, preservation, and use of the scenic beauty and natural environment for the properties or the lands and to collect admission or use fees for the recreational features where deemed appropriate.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Los Angeles County Flood Control District, the limitations the state imposes on the districts federal borrowing capacity, and the districts need to effectively address its extensive infrastructure needs and the challenge of climate-induced flood risks.
The objects and purposes of this act are to provide for the control and conservation of the flood, storm and other waste waters of said district, and to conserve these waters for beneficial and useful purposes by spreading, storing, retaining or causing to percolate into the soil within the district, or to save or conserve in any manner, all or any of these waters, and to protect from damage from flood or storm waters, the harbors, waterways, public highways and property in the district, and to provide for public use of navigable waterways under the districts control that are suitable for recreational and educational purposes, if these purposes are not inconsistent with the use by the district for flood control and water conservation.
The Los Angeles County Flood Control District is hereby declared to be a body corporate and politic, and has all the following powers:
1.To have perpetual succession.
2.To sue and be sued in the name of the district in all actions and proceedings in all courts and tribunals of competent jurisdiction.
3.To adopt a seal and alter it at pleasure.
4.To take by grant, purchase, gift, devise or lease, hold, use, enjoy, and to lease or dispose of real or personal property of every kind inside or outside the district necessary to the full exercise of its power.
5.To acquire or contract to acquire lands, rights-of-way, easements, privileges and property of every kind, and construct, maintain and operate any and all works or improvements inside or outside the district necessary or proper to carry out any of the objects or purposes of this act, and to complete, extend, add to, repair or otherwise improve any works or improvements acquired by it as authorized by this act. Construction or improvement of existing facilities may involve landscaping and other aesthetic treatment in order that the facility will be compatible with existing or planned development in the area of improvement.
6.To exercise the right of eminent domain, either inside or outside the district, to take any property necessary to carry out any of the objects or purposes of this act.
7.To incur indebtedness, and to issue bonds in the manner provided in this act.
7a.To borrow money or obtain loan guarantees from the United States of America, any agency or department of the United States, or from any nonprofit corporation, organized under the laws of this state, to which the Reconstruction Finance Corporation, a corporation organized and existing under and by virtue of an act of Congress, entitled Reconstruction Finance Corporation Act, or other agency, or department, of the United States government, has authorized, or shall later authorize, a loan to enable nonprofit corporation to lend money to the Los Angeles County Flood Control District, for any flood control work authorized pursuant to this act, and to repay the same, in annual installments, over a period of not to exceed 35 years, with interest at a rate of not to exceed 5.5 percent annually, payable semiannually, and, without the necessity of an election when authorized by resolution of the board of supervisors, as evidences of that indebtedness, the district is authorized to execute and deliver a note, or a series of notes, or bonds, or other evidences of indebtedness, signed by the chairperson of the board of supervisors of the district, which notes, bonds, or other evidences of indebtedness, shall be negotiable instruments if so declared in the resolution of the board of supervisors providing for their issuance, and notes, bonds, or other evidences of indebtedness, may have interest coupons attached to evidence interest payments, signed by the facsimile signature of the chairperson of the board. All applications for these loans or loan guarantees shall specify the particular flood control work or projects for which the funds will be expended, and when received, the money shall be deposited in a special fund, and shall be expended for those purposes only which are described and referred to in the applications. If a surplus remains after the completion of the work, the surplus shall be applied to the payment of the note, notes, bonds, or other evidences of indebtedness, executed as provided, for the loan including interest coupons. The board of supervisors may levy a tax in compliance with the applicable provisions of Article XIIIC of the California Constitution clearly sufficient to pay the interest and installments of principal, as the same shall become due and payable, under any loan made pursuant to the authority of this section, and to create and maintain a reserve fund to assure prompt payment, as may be provided by resolution of the board of supervisors. Notwithstanding any other provisions of law, interest earned on funds representing the proceeds of bonds of the district shall be deposited and retained in the reserve fund of the district to meet the principal and interest falling due on these bonds.
7b.The power granted in subsection 7a shall be extended to authorize the issuance and sale of bonds or other evidences of indebtedness of the district to the County of Los Angeles and the purchase by the county in accordance with An act authorizing the investment and reinvestment and disposition of any surplus moneys in the treasury of any county, city and county, incorporated city or town or municipal utility district or flood control district, approved April 23, 1913, as amended; all subject to the provisions and limitations of subsection 7a relative to the disposition and use of funds, interest rate, period of repayment, tax rate and mode of issuance.
8.To cause taxes to be levied and collected for the purpose of paying any obligation of the district in the manner provided in this section.
8a.To levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, or impose a fee or charge, in compliance with the applicable provisions of Article XIIID of the California Constitution, to pay the costs and expenses of carrying out projects and programs to increase stormwater capture and reduce stormwater and urban runoff pollution in the district pursuant to criteria established by the ordinance adopted pursuant to subsection 8c. Projects and programs funded by the revenues from the tax, fee, or charge may include projects providing multiple benefits that increase water supply, improve water quality, and, where appropriate, provide community enhancements such as the greening of schools, parks, and wetlands, and increased public access to rivers, lakes, and streams. Any tax, fee, or charge that is levied or imposed pursuant to this subsection shall be levied and collected together with, and not separately from, taxes for county purposes, and the revenues derived from the tax, fee, or charge shall be paid into the county treasury to the credit of the district, and the board of supervisors shall expend these funds to pay for costs and expenses pursuant to this subsection.
8b.The district shall allocate the revenues derived from any tax, fee, or charge imposed pursuant to subsection 8a as follows:
(A)Ten percent shall be allocated to the district for implementation and administration of projects and programs described in subsection 8a, and for payment of the costs incurred in connection with the levy and collection of the tax, fee, or charge and the distribution of the funds generated by imposition of the tax, fee, or charge, as provided by the procedures established by the ordinance adopted pursuant to subsection 8c.
(B)Forty percent shall be allocated to cities within the boundaries of the district and to the County of Los Angeles, in the same proportion as the amount of revenues collected within each jurisdiction and within the unincorporated territories, to be expended by those cities within the cities respective jurisdictions and by the County of Los Angeles within the unincorporated territories that are within the boundaries of the district, for the implementation, operation and maintenance, and administration of projects and programs described in subsection 8a, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
(C)Fifty percent shall be allocated to pay for the implementation, operation and maintenance, and administration of watershed-based projects and programs described in subsection 8a, including projects and programs identified in regional plans such as stormwater resource plans developed pursuant to Part 2.3 (commencing with Section 10560) of Division 6 of the Water Code, watershed management programs developed pursuant to waste discharge requirements for municipal separate storm sewer system (MS4) discharges within the coastal watersheds of the County of Los Angeles, issued by the Los Angeles Regional Water Quality Control Board, and other regional water management plans, as appropriate, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
8c.The governing board of the district shall adopt an ordinance to establish criteria and procedures to implement the authority granted pursuant to subsections 8a and 8b.
9.To make contracts, and to employ for temporary services only, expert appraisers, consultants and technical advisers, and to do all acts necessary for the full exercise of all powers vested in the district, or any of the officers of the district, by this act.
10.To grant or otherwise convey to counties, cities and counties, cities or towns easements for street and highway purposes, over, along, upon, in, through, across or under any real property owned by the Los Angeles County Flood Control District.
11.To remove, carry away and dispose of any rubbish, trash, debris or other inconvenient matter that may be dislodged, transported, conveyed or carried by means of, through, in, or along the works and structures operated or maintained pursuant to this act and deposited upon the property of the district or elsewhere.
12.To pay premiums on bonds of contractors required under any contract if the amount payable to the contractor exceeds five million dollars ($5,000,000); provided, that the specifications in these cases shall specifically so provide and state that the bidder shall not include in their bids the cost of furnishing the required bonds.
13.To lease, sell or dispose of any property (or any interest in the property) whenever in the judgment of the board of supervisors, the property, or any interest in the property or part of the property, is no longer required for the purposes of the district, or may be leased for any purpose without interfering with the use of the same for the purposes of the district, and to pay the compensation received from the lease, sale, or disposal of the property, if any, into the general fund of the district and use the same for the purposes of this act. However, nothing herein shall authorize the board of supervisors or other governing body of the district or any officer thereof to sell, lease or otherwise dispose of any water, water right, reservoir space or storage capacity or any interest or space therein except to public agencies for recreational purposes when the use is not inconsistent with the use by the district for flood control and water conservation purposes; or except as provided by Section 17 of this act. However, the district may grant and convey to the United States of America, or to any federal agency authorized to accept and pay for the land or interests in land, all lands and interests in land, now owned or later acquired, lying within any channel, dam or reservoir site, improved or constructed, in whole or in part, with federal funds, upon payment to the district of sums equivalent to actual expenditures made by it in acquiring the lands and interests in land so conveyed and deemed reasonable by the Secretary of War and the Chief of Engineers.
The district, by or through its board of supervisors, or other board or officers at any time succeeding to the duties or functions of its board of supervisors, is authorized and empowered to warrant and defend the title to all land and interests in the land so conveyed to the United States of America or to any agency and its respective assigns; to covenant and agree to indemnify and keep indemnified and to hold and save harmless and exonerated the United States of America or any agency, to which lands or any interest in the land are so conveyed by the district, from and against all demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by, any defect or defects in the title to any land or interest in land so conveyed by the district; to reimburse and save harmless and exonerated the United States of America or any agency for any and all amounts, paid, and expenses incurred, in the compromise or settlement of any demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by any claim to or defect or defects in the title to any land or interests in land so conveyed by the district; to pay all just compensation, costs, and expenses, which may be incurred in any condemnation proceeding deemed necessary by the United States of America or that agency, in order to perfect title to any land or interests in land, including without limitation all attorneys fees, court costs and fees, costs of abstracts and other evidences of title, and all other costs, expenses, or damages incurred or suffered by the United States of America or that agency; and consent is given to the bringing of suit or other legal proceedings against the district by the United States of America or that agency, as the case may be, in the proper district court of the United States, upon any cause of action arising out of any conveyance, contract, or covenant made or entered into by the district pursuant to the authority granted in this act, or to enforce any claims, damages, loss, or expenses arising out of, or resulting from, any defect in the title to the land or any interest in the land or any claims of others in or to the land or interest in the land.
14.To provide, by agreement with other public agencies or private persons or entities or otherwise, for the recreational use of the lands, facilities, and works of the district which shall not interfere, or be inconsistent, with the primary use and purpose of the lands, facilities, and works by the district.
15.In addition to its other powers, the district shall have the power to preserve, enhance, and add recreational features to its properties and upon a finding by the board of supervisors that the acquisition is necessary for those purposes, to acquire, preserve, enhance, and add recreational features to lands or interests in lands contiguous to its properties, for the protection, preservation, and use of the scenic beauty and natural environment for the properties or the lands and to collect admission or use fees for the recreational features where deemed appropriate.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Los Angeles County Flood Control District, the limitations the state imposes on the districts federal borrowing capacity, and the districts need to effectively address its extensive infrastructure needs and the challenge of climate-induced flood risks.
The objects and purposes of this act are to provide for the control and conservation of the flood, storm and other waste waters of said district, and to conserve these waters for beneficial and useful purposes by spreading, storing, retaining or causing to percolate into the soil within the district, or to save or conserve in any manner, all or any of these waters, and to protect from damage from flood or storm waters, the harbors, waterways, public highways and property in the district, and to provide for public use of navigable waterways under the districts control that are suitable for recreational and educational purposes, if these purposes are not inconsistent with the use by the district for flood control and water conservation.
The Los Angeles County Flood Control District is hereby declared to be a body corporate and politic, and has all the following powers:
1.To have perpetual succession.
2.To sue and be sued in the name of the district in all actions and proceedings in all courts and tribunals of competent jurisdiction.
3.To adopt a seal and alter it at pleasure.
4.To take by grant, purchase, gift, devise or lease, hold, use, enjoy, and to lease or dispose of real or personal property of every kind inside or outside the district necessary to the full exercise of its power.
5.To acquire or contract to acquire lands, rights-of-way, easements, privileges and property of every kind, and construct, maintain and operate any and all works or improvements inside or outside the district necessary or proper to carry out any of the objects or purposes of this act, and to complete, extend, add to, repair or otherwise improve any works or improvements acquired by it as authorized by this act. Construction or improvement of existing facilities may involve landscaping and other aesthetic treatment in order that the facility will be compatible with existing or planned development in the area of improvement.
6.To exercise the right of eminent domain, either inside or outside the district, to take any property necessary to carry out any of the objects or purposes of this act.
7.To incur indebtedness, and to issue bonds in the manner provided. provided in this act.
7a.To borrow money or obtain loan guarantees from the United States of America, any agency or department of the United States, , States, or from any nonprofit corporation, organized under the laws of this state, to which the Reconstruction Finance Corporation, a corporation organized and existing under and by virtue of an act of Congress, entitled Reconstruction Finance Corporation Act, or other agency, or department, of the United States government, has authorized, or shall later authorize, a loan to enable nonprofit corporation to lend money to the Los Angeles County Flood Control District, for any flood control work authorized pursuant to this act, and to repay the same, in annual installments, over a period of not to exceed 35 years, with interest at a rate of not to exceed 5.5 percent annually, payable semiannually, and, without the necessity of an election when authorized by resolution of the board of supervisors, as evidences of that indebtedness, the district is authorized to execute and deliver a note, or a series of notes, or bonds, or other evidences of indebtedness, signed by the chairperson of the board of supervisors of the district, which notes, bonds, or other evidences of indebtedness, shall be negotiable instruments if so declared in the resolution of the board of supervisors providing for their issuance, and notes, bonds, or other evidences of indebtedness, may have interest coupons attached to evidence interest payments, signed by the facsimile signature of the chairperson of the board. All applications for these loans or loan guarantees shall specify the particular flood control work or projects for which the funds will be expended, and when received, the money shall be deposited in a special fund, and shall be expended for those purposes only which are described and referred to in the applications. If a surplus remains after the completion of the work, the surplus shall be applied to the payment of the note, notes, bonds, or other evidences of indebtedness, executed as provided, for the loan including interest coupons. The board of supervisors may levy a tax in compliance with the applicable provisions of Article XIIIC of the California Constitution clearly sufficient to pay the interest and installments of principal, as the same shall become due and payable, under any loan made pursuant to the authority of this section, and to create and maintain a reserve fund to assure prompt payment, as may be provided by resolution of the board of supervisors. Notwithstanding any other provisions of law, interest earned on funds representing the proceeds of bonds of the district shall be deposited and retained in the reserve fund of the district to meet the principal and interest falling due on these bonds.
7b.The power granted in subsection 7a shall be extended to authorize the issuance and sale of bonds or other evidences of indebtedness of the district to the County of Los Angeles and the purchase by the county in accordance with An act authorizing the investment and reinvestment and disposition of any surplus moneys in the treasury of any county, city and county, incorporated city or town or municipal utility district or flood control district, approved April 23, 1913, as amended; all subject to the provisions and limitations of subsection 7a relative to the disposition and use of funds, interest rate, period of repayment, tax rate and mode of issuance.
8.To cause taxes to be levied and collected for the purpose of paying any obligation of the district in the manner provided in this section.
8a.To levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, or impose a fee or charge, in compliance with the applicable provisions of Article XIIID of the California Constitution, to pay the costs and expenses of carrying out projects and programs to increase stormwater capture and reduce stormwater and urban runoff pollution in the district pursuant to criteria established by the ordinance adopted pursuant to subsection 8c. Projects and programs funded by the revenues from the tax, fee, or charge may include projects providing multiple benefits that increase water supply, improve water quality, and, where appropriate, provide community enhancements such as the greening of schools, parks, and wetlands, and increased public access to rivers, lakes, and streams. Any tax, fee, or charge that is levied or imposed pursuant to this subsection shall be levied and collected together with, and not separately from, taxes for county purposes, and the revenues derived from the tax, fee, or charge shall be paid into the county treasury to the credit of the district, and the board of supervisors shall expend these funds to pay for costs and expenses pursuant to this subsection.
8b.The district shall allocate the revenues derived from any tax, fee, or charge imposed pursuant to subsection 8a as follows:
(A)Ten percent shall be allocated to the district for implementation and administration of projects and programs described in subsection 8a, and for payment of the costs incurred in connection with the levy and collection of the tax, fee, or charge and the distribution of the funds generated by imposition of the tax, fee, or charge, as provided by the procedures established by the ordinance adopted pursuant to subsection 8c.
(B)Forty percent shall be allocated to cities within the boundaries of the district and to the County of Los Angeles, in the same proportion as the amount of revenues collected within each jurisdiction and within the unincorporated territories, to be expended by those cities within the cities respective jurisdictions and by the County of Los Angeles within the unincorporated territories that are within the boundaries of the district, for the implementation, operation and maintenance, and administration of projects and programs described in subsection 8a, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
(C)Fifty percent shall be allocated to pay for the implementation, operation and maintenance, and administration of watershed-based projects and programs described in subsection 8a, including projects and programs identified in regional plans such as stormwater resource plans developed pursuant to Part 2.3 (commencing with Section 10560) of Division 6 of the Water Code, watershed management programs developed pursuant to waste discharge requirements for municipal separate storm sewer system (MS4) discharges within the coastal watersheds of the County of Los Angeles, issued by the Los Angeles Regional Water Quality Control Board, and other regional water management plans, as appropriate, pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
8c.The governing board of the district shall adopt an ordinance to establish criteria and procedures to implement the authority granted pursuant to subsections 8a and 8b.
9.To make contracts, and to employ for temporary services only, expert appraisers, consultants and technical advisers, and to do all acts necessary for the full exercise of all powers vested in the district, or any of the officers of the district, by this act.
10.To grant or otherwise convey to counties, cities and counties, cities or towns easements for street and highway purposes, over, along, upon, in, through, across or under any real property owned by the Los Angeles County Flood Control District.
11.To remove, carry away and dispose of any rubbish, trash, debris or other inconvenient matter that may be dislodged, transported, conveyed or carried by means of, through, in, or along the works and structures operated or maintained pursuant to this act and deposited upon the property of the district or elsewhere.
12.To pay premiums on bonds of contractors required under any contract if the amount payable to the contractor exceeds five million dollars ($5,000,000); provided, that the specifications in these cases shall specifically so provide and state that the bidder shall not include in their bids the cost of furnishing the required bonds.
13.To lease, sell or dispose of any property (or any interest in the property) whenever in the judgment of the board of supervisors of supervisors, the property, or any interest in the property or part of the property, is no longer required for the purposes of the district, or may be leased for any purpose without interfering with the use of the same for the purposes of the district, and to pay any the compensation received from the property lease, sale, or disposal of the property, if any, into the general fund of the district and use the same for the purposes of this act. However, nothing herein shall authorize the board of supervisors or other governing body of the district or any officer thereof to sell, lease or otherwise dispose of any water, water right, reservoir space or storage capacity or any interest or space therein except to public agencies for recreational purposes when the use is not inconsistent with the use by the district for flood control and water conservation purposes; or except as provided by Section 17 of this act. However, the district may grant and convey to the United States of America, or to any federal agency authorized to accept and pay for the land or interests in land, all lands and interests in land, now owned or later acquired, lying within any channel, dam or reservoir site, improved or constructed, in whole or in part, with federal funds, upon payment to the district of sums equivalent to actual expenditures made by it in acquiring the lands and interests in land so conveyed and deemed reasonable by the Secretary of War and the Chief of Engineers.
The district, by or through its board of supervisors, or other board or officers at any time succeeding to the duties or functions of its board of supervisors, is authorized and empowered to warrant and defend the title to all land and interests in the land so conveyed to the United States of America or to any agency and its respective assigns; to covenant and agree to indemnify and keep indemnified and to hold and save harmless and exonerated the United States of America or any agency, to which lands or any interest in the land are so conveyed by the district, from and against all demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by, any defect or defects in the title to any land or interest in land so conveyed by the district; to reimburse and save harmless and exonerated the United States of America or any agency for any and all amounts, paid, and expenses incurred, in the compromise or settlement of any demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses, and attorneys fees of any kind or nature, resulting from, arising out of, or occasioned by any claim to or defect or defects in the title to any land or interests in land so conveyed by the district; to pay all just compensation, costs, and expenses, which may be incurred in any condemnation proceeding deemed necessary by the United States of America or that agency, in order to perfect title to any land or interests in land, including without limitation all attorneys fees, court costs and fees, costs of abstracts and other evidences of title, and all other costs, expenses, or damages incurred or suffered by the United States of America or that agency; and consent is given to the bringing of suit or other legal proceedings against the district by the United States of America or that agency, as the case may be, in the proper district court of the United States, upon any cause of action arising out of any conveyance, contract, or covenant made or entered into by the district pursuant to the authority granted in this act, or to enforce any claims, damages, loss, or expenses arising out of, or resulting from, any defect in the title to the land or any interest in the land or any claims of others in or to the land or interest in the land.
14.To provide, by agreement with other public agencies or private persons or entities or otherwise, for the recreational use of the lands, facilities, and works of the district which shall not interfere, or be inconsistent, with the primary use and purpose of the lands, facilities, and works by the district.
15.In addition to its other powers, the district shall have the power to preserve, enhance, and add recreational features to its properties and upon a finding by the board of supervisors that the acquisition is necessary for those purposes, to acquire, preserve, enhance, and add recreational features to lands or interests in lands contiguous to its properties, for the protection, preservation, and use of the scenic beauty and natural environment for the properties or the lands and to collect admission or use fees for the recreational features where deemed appropriate.
The district by or through its board of supervisors, or other board or officers at any time succeeding to the duties or functions of its board of supervisors, is authorized and empowered to warrant and defend the title to all land and interests in the land so conveyed to the United States of America or to any agency and its respective assigns; to covenant and agree to indemnify and keep indemnified and to hold and save harmless and exonerated the United States of America or any agency, to which lands or any interest in the land are so conveyed by the district, from and against all demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses and attorneys fees of any kind or nature, resulting from, arising out of or occasioned by any defect or defects in the title to any land or interest in land so conveyed by the district; to reimburse and save harmless and exonerated the United States of America or any agency for any and all amounts, paid, and expenses incurred, in the compromise or settlement of any demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses and attorneys fees of any kind or nature, resulting from, arising out of or occasioned by any claim to or defect or defects in the title to any land or interests in land so conveyed by the district; to pay all just compensation, costs and expenses, which may be incurred in any condemnation proceeding deemed necessary by the United States of America or that agency, in order to perfect title to any land or interests in land, including without limitation all attorneys fees, court costs and fees, costs of abstracts and other evidences of title, and all other costs, expenses or damages incurred or suffered by the United States of America or that agency; and consent is given to the bringing of suit or other legal proceedings against the district by the United States of America or that agency, as the case may be, in the proper district court of the United States, upon any cause of action arising out of any conveyance, contract or covenant made or entered into by the district pursuant to the authority granted in this act, or to enforce any claims, damages, loss or expenses arising out of or resulting from any defect in the title to the land or any interest therein or any claims of others in or to the land or interest in the land.SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Los Angeles County Flood Control District, the limitations the state imposes on the districts federal borrowing capacity, and the districts need to effectively address its extensive infrastructure needs and the challenge of climate-induced flood risks.
The objects and purposes of this act are to provide for the control and conservation of the flood, storm and other waste waters of said district, and to conserve these waters for beneficial and useful purposes by spreading, storing, retaining or causing to percolate into the soil within the district, or to save or conserve in any manner, all or any of these waters, and to protect from damage from flood or storm waters, the harbors, waterways, public highways and property in the district, and to provide for public use of navigable waterways under the districts control that are suitable for recreational and educational purposes, when if these purposes are not inconsistent with the use thereof by the district for flood control and water conservation.
The Los Angeles County Flood Control District is hereby declared to be a body corporate and politic, and has all the following powers:
1.To have perpetual succession.
2.To sue and be sued in the name of the district in all actions and proceedings in all courts and tribunals of competent jurisdiction.
3.To adopt a seal and alter it at pleasure.
4.To take by grant, purchase, gift, devise or lease, hold, use, enjoy, and to lease or dispose of real or personal property of every kind within or without inside or outside the district necessary to the full exercise of its power.
5.To acquire or contract to acquire lands, rights-of-way, easements, privileges and property of every kind, and construct, maintain and operate any and all works or improvements within or without inside or outside the district necessary or proper to carry out any of the objects or purposes of this act, and to complete, extend, add to, repair or otherwise improve any works or improvements acquired by it as herein authorized. authorized by this act. Construction or improvement of existing facilities may involve landscaping and other aesthetic treatment in order that the facility will be compatible with existing or planned development in the area of improvement.
6.To exercise the right of eminent domain, either within or without inside or outside the district, to take any property necessary to carry out any of the objects or purposes of this act.
7.To incur indebtedness, and to issue bonds in the manner herein provided.
7a.To borrow money or obtain loan guarantees from the United States of America, any agency or department of the United States, , or from any nonprofit corporation, organized under the laws of this state, to which the Reconstruction Finance Corporation, a corporation organized and existing under and by virtue of an act of Congress, entitled Reconstruction Finance Corporation Act, or other agency, or department, of the United States government, has authorized, or shall hereafter later authorize, a loan to enable nonprofit corporation to lend money to the Los Angeles County Flood Control District, for any flood control work authorized under pursuant to this act, and to repay the same, in annual installments, over a period of not to exceed twenty (20) 35 years, with interest at a rate of not to exceed four and one-fourth per centum (41/4%) per annum, 5.5 percent annually, payable semiannually, and, without the necessity of an election when authorized by resolution of the board of supervisors, as evidences of that indebtedness, the district is hereby authorized to execute and deliver a note, or a series of notes, or bonds, or other evidences of indebtedness, signed by the chairperson of the board of supervisors of the district, which notes, bonds, or other evidences of indebtedness, shall be negotiable instruments if so declared in the resolution of the board of supervisors providing for their issuance, and notes, bonds, or other evidences of indebtedness, may have interest coupons attached to evidence interest payments, signed by the facsimile signature of the chairperson of the board. All applications for these loans or loan guarantees shall specify the particular flood control work or projects for which the funds will be expended, and when received, the money shall be deposited in a special fund, and shall be expended for those purposes only which are described and referred to in the applications. If a surplus remains after the completion of the work, the surplus shall be applied to the payment of the note, notes, bonds, or other evidences of indebtedness, executed as aforesaid, provided, for the loan including interest coupons. The board of supervisors shall annually may levy a tax upon the taxable real property of the district, in compliance with the applicable provisions of Article XIIIC of the California Constitution clearly sufficient to pay the interest and installments of principal, as the same shall become due and payable, under any loan made pursuant to the authority of this section, and to create and maintain a reserve fund to assure the prompt payment thereof, prompt payment, as may be provided by resolution of the board of supervisors. However, the amount of taxes levied in any year, pursuant to this subsection, shall, pro tanto, reduce the authority of the board of supervisors, during any year, to levy taxes under Section 14 of this act, but this proviso shall not be a limitation upon the power and duty to levy and collect taxes under this subsection. Notwithstanding any other provisions of law, interest earned on funds representing the proceeds of bonds of the district shall be deposited and retained in the reserve fund of the district to meet the principal and interest falling due on these bonds.
Notwithstanding anything in this subsection to the contrary, the total amount the district may borrow under the authority of any or all of the provisions of this subsection is limited to and shall not exceed in the aggregate the sum of four million five hundred thousand dollars ($4,500,000).7b.The power granted in the next preceding subsection is hereby 7a shall be extended to authorize the issuance and sale of bonds or other evidences of indebtedness of the district to the County of Los Angeles and the purchase thereof by the county in accordance with An act authorizing the investment and reinvestment and disposition of any surplus moneys in the treasury of any county, city and county, incorporated city or town or municipal utility district or flood control district, approved April 23, 1913, as amended; all subject to the provisions and limitations of the next preceding subsection 7a relative to the disposition and use of funds, interest rate, period of repayment, tax rate and mode of issuance. The total amount of bonds or other evidence of indebtedness, in the aggregate, which the district may issue and sell under the authority of subsection 7a and of this subsection is limited to and shall not exceed four million five hundred thousand dollars ($4,500,000).
8.To cause taxes to be levied and collected for the purpose of paying any obligation of the district in the manner provided in this section.
8a.To levy a tax, in compliance with the applicable provisions of Article XIIIC of the California Constitution, or impose a fee or charge, in compliance with the applicable provisions of Article XIIID of the California Constitution, to pay the costs and expenses of carrying out projects and programs to increase stormwater capture and reduce stormwater and urban runoff pollution in the district in accordance with pursuant to criteria established by the ordinance adopted pursuant to subsection 8c. Projects and programs funded by the revenues from the tax, fee, or charge may include projects providing multiple benefits that increase water supply, improve water quality, and, where appropriate, provide community enhancements such as the greening of schools, parks, and wetlands, and increased public access to rivers, lakes, and streams. Any tax, fee, or charge that is levied or imposed pursuant to this subsection shall be levied and collected together with, and not separately from, taxes for county purposes, and the revenues derived from the tax, fee, or charge shall be paid into the county treasury to the credit of the district, and the board of supervisors shall expend these funds to pay for costs and expenses pursuant to this subsection.
8b.The district shall allocate the revenues derived from any tax, fee, or charge imposed pursuant to subsection 8a as follows:
(A)Ten percent shall be allocated to the district for implementation and administration of projects and programs described in subsection 8a, and for payment of the costs incurred in connection with the levy and collection of the tax, fee, or charge and the distribution of the funds generated by imposition of the tax, fee, or charge, in accordance with as provided by the procedures established by the ordinance adopted pursuant to subsection 8c.
(B)Forty percent shall be allocated to cities within the boundaries of the district and to the County of Los Angeles, in the same proportion as the amount of revenues collected within each jurisdiction and within the unincorporated territories, to be expended by those cities within the cities respective jurisdictions and by the County of Los Angeles within the unincorporated territories that are within the boundaries of the district, for the implementation, operation and maintenance, and administration of projects and programs described in subsection 8a, in accordance with pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
(C)Fifty percent shall be allocated to pay for the implementation, operation and maintenance, and administration of watershed-based projects and programs described in subsection 8a, including projects and programs identified in regional plans such as stormwater resource plans developed in accordance with pursuant to Part 2.3 (commencing with Section 10560) of Division 6 of the Water Code, watershed management programs developed pursuant to waste discharge requirements for municipal separate storm sewer system (MS4) discharges within the coastal watersheds of the County of Los Angeles, issued by the Los Angeles Regional Water Quality Control Board, and other regional water management plans, as appropriate, in accordance with pursuant to the procedures established by the ordinance adopted pursuant to subsection 8c.
8c.The governing board of the district shall adopt an ordinance to establish criteria and procedures to implement the authority granted pursuant to subsections 8a and 8b.
9.To make contracts, and to employ for temporary services only, expert appraisers, consultants and technical advisers, and to do all acts necessary for the full exercise of all powers vested in the district, or any of the officers thereof, of the district, by this act.
10.To grant or otherwise convey to counties, cities and counties, cities or towns easements for street and highway purposes, over, along, upon, in, through, across or under any real property owned by the Los Angeles County Flood Control District.
11.To remove, carry away and dispose of any rubbish, trash, debris or other inconvenient matter that may be dislodged, transported, conveyed or carried by means of, through, in, or along the works and structures operated or maintained hereunder pursuant to this act and deposited upon the property of the district or elsewhere.
12.To pay premiums on bonds of contractors required under any contract if the amount payable to the contractor exceeds five million dollars ($5,000,000); provided, that the specifications in these cases shall specifically so provide and state that the bidder shall not include in his or her their bids the cost of furnishing the required bonds.
13.To lease, sell or dispose of any property (or any interest therein) in the property) whenever in the judgment of the board of supervisors of the property, or any interest therein in the property or part thereof, of the property, is no longer required for the purposes of the district, or may be leased for any purpose without interfering with the use of the same for the purposes of the district, and to pay any compensation received therefor from the property into the general fund of the district and use the same for the purposes of this act. However, nothing herein shall authorize the board of supervisors or other governing body of the district or any officer thereof to sell, lease or otherwise dispose of any water, water right, reservoir space or storage capacity or any interest or space therein except to public agencies for recreational purposes when the use is not inconsistent with the use thereof by the district for flood control and water conservation purposes; or except as provided by Section 17 of this act. However, the district may grant and convey to the United States of America, or to any federal agency authorized to accept and pay for the land or interests in land, all lands and interests in land, now owned or hereafter later acquired, lying within any channel, dam or reservoir site, improved or constructed, in whole or in part, with federal funds, upon payment to the district of sums equivalent to actual expenditures made by it in acquiring the lands and interests in land so conveyed and deemed reasonable by the Secretary of War and the Chief of Engineers.
14.To provide, by agreement with other public agencies or private persons or entities or otherwise, for the recreational use of the lands, facilities, and works of the district which shall not interfere, or be inconsistent, with the primary use and purpose of the lands, facilities, and works by the district.
15.In addition to its other powers, the district shall have the power to preserve, enhance, and add recreational features to its properties and upon a finding by the board of supervisors that the acquisition is necessary for those purposes, to acquire, preserve, enhance, and add recreational features to lands or interests in lands contiguous to its properties, for the protection, preservation, and use of the scenic beauty and natural environment for the properties or the lands and to collect admission or use fees for the recreational features where deemed appropriate.
The district by or through its board of supervisors, or other board or officers at any time succeeding to the duties or functions of its board of supervisors, is hereby authorized and empowered to warrant and defend the title to all land and interests therein in the land so conveyed to the United States of America or to any agency and its respective assigns; to covenant and agree to indemnify and keep indemnified and to hold and save harmless and exonerated the United States of America or any agency, to which lands or any interest therein in the land are so conveyed by the district, from and against all demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses and attorneys fees of any kind or nature, resulting from, arising out of or occasioned by any defect or defects whatsoever in the title to any land or interest in land so conveyed by the district; to reimburse and save harmless and exonerated the United States of America or any agency for any and all amounts, paid, and expenses incurred, in the compromise or settlement of any demands, claims, liabilities, liens, actions, suits, charges, costs, loss, damages, expenses and attorneys fees of whatsoever any kind or nature, resulting from, arising out of or occasioned by any claim to or defect or defects whatsoever in the title to any land or interests in land so conveyed by the district; to pay all just compensation, costs and expenses, which may be incurred in any condemnation proceeding deemed necessary by the United States of America or that agency, in order to perfect title to any land or interests in land, including without limitation all attorneys fees, court costs and fees, costs of abstracts and other evidences of title, and all other costs, expenses or damages incurred or suffered by the United States of America or that agency; and consent is hereby given to the bringing of suit or other legal proceedings against the district by the United States of America or that agency, as the case may be, in the proper district court of the United States, upon any cause of action arising out of any conveyance, contract or covenant made or entered into by the district pursuant to the authority granted in this act, or to enforce any claims, damages, loss or expenses arising out of or resulting from any defect whatsoever in the title to the land or any interest therein or any claims of others in or to the land or interest therein. in the land.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Los Angeles County Flood Control District, the limitations the state imposes on the districts federal borrowing capacity, and the districts need to effectively address its extensive infrastructure needs and the challenge of climate-induced flood risks.
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Date
|
Status
|
|---|---|
| Jul 2, 2024 | Chaptered by Secretary of State. Chapter 77, Statutes of 2024. |
| Jul 2, 2024 | Approved by the Governor. |
| Jun 26, 2024 | Enrolled and presented to the Governor at 1:30 p.m. |
| Jun 20, 2024 | In Senate. Ordered to engrossing and enrolling. |
| Jun 20, 2024 | Read third time. Passed. (Ayes 66. Noes 0. Page 5949.) Ordered to the Senate. |
| Jun 17, 2024 | Read second time. Ordered to consent calendar. |
| Jun 13, 2024 | From committee: Do pass. Ordered to consent calendar. (Ayes 9. Noes 0.) (June 12). |
| Jun 3, 2024 | Referred to Com. on L. GOV. |
| May 9, 2024 | In Assembly. Read first time. Held at Desk. |
| May 9, 2024 | Read third time. Passed. (Ayes 37. Noes 0. Page 3872.) Ordered to the Assembly. |
| May 2, 2024 | Read second time. Ordered to consent calendar. |
| May 1, 2024 | From committee: Do pass. Ordered to consent calendar. (Ayes 6. Noes 0. Page 3821.) (May 1). |
| Apr 17, 2024 | Set for hearing May 1. |
| Mar 18, 2024 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV. |
| Feb 21, 2024 | Referred to Com. on L. GOV. |
| Feb 15, 2024 | From printer. May be acted upon on or after March 16. |
| Feb 14, 2024 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
|
Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Jun 20, 2024 | SB 1169 Stern Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jun 12, 2024 | Do pass. To Consent Calendar. | Assembly Standing Committee on Local Government |
Passed |
|
| May 9, 2024 | Consent Calendar 2nd SB1169 Stern et al. | Senate Floor |
Passed |
|
| May 1, 2024 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Local Government |
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.
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Organization
|
Position
|
Date
|
|---|---|---|
| County of Los Angeles Board of Supervisors | ** Support | |
| Las Virgenes Municipal Water District | ** Support | |
| Los Angeles County Sanitation Districts | ** Support | |
| San Gabriel Valley Water Association | ** Support | |
| Santa Clarita Valley Water Agency | ** Support | |
| Southern California Water Coalition | ** Support | |
| Upper San Gabriel Valley Municipal Water District | ** Support | |
| Water Replenishment District Of Southern California | ** Support |
Date of Hearing: June 12, 2024
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
SBPCA Bill Id:SB 1169
Author:(Stern) – As Amended Ver:March 18, 2024
SENATE VOTE: 37-0
SUBJECT: Los Angeles County Flood Control District: finances.
SUMMARY: Makes changes to the Los Angeles County Flood Control District’s (District) authority to borrow money from the federal government. Specifically, this bill:
- Makes the following changes to provisions related to the District’s ability to borrow money from the United States of America, any agency or department of the United States, or from any specified nonprofit corporation:
- Authorizes the District to obtain loan guarantees.
- Extends the maximum loan periods from 20 to 35 years.
- Increases the maximum loan interest rate from 4.25% to 5.5%.
- Removes the requirement that the District levy a tax on property to repay these loans, but specifies that the District may levy such a tax in compliance with the applicable constitutional provisions.
- Removes the requirement that taxes levied in any year for repaying federal loans proportionally reduces the District’s authority to tax real property in the district.
- Removes the $4.5 million limit on the total amount the District may borrow and the total amount of certain bonds the district may issue, as specified.
- Makes numerous technical and conforming changes.
- Finds and declares that a special statute is necessary and that a general statute cannot be made applicable because of the unique circumstances of the Los Angeles County Flood Control District, the limitations the state imposes on the district’s federal borrowing capacity, and the district’s need to effectively address its extensive infrastructure needs and the challenge of climate-induced flood risks.
FISCAL EFFECT: None.
COMMENTS:
- Los Angeles County Flood Control District. According to the District, the Los Angeles County Flood Control Act (Act) was adopted by the State Legislature in 1915, after a disastrous regional flood took a heavy toll on lives and property. The Act established the District and empowered it to provide flood protection, water conservation, recreation and aesthetic enhancement within its boundaries. The District is governed, as a separate entity, by the County of Los Angeles Board of Supervisors.
In 1984, the Flood Control District entered into an operational agreement with the Los Angeles County Department of Public Works transferring planning and operational activities to the Department of Public Works. Watershed Management Division is the planning and policy arm of the Flood Control District. Public Works Flood Maintenance and Water Resources Divisions, respectively, oversee its maintenance and operational efforts. The Flood Control District encompasses more than 2,700 square miles and approximately 2.1 million land parcels within six major watersheds. It includes drainage infrastructure within 86 incorporated cities as well as the unincorporated County areas. This includes 14 major dams and reservoirs, 483 miles of open channel, 27 spreading grounds, 3,330 miles of underground storm drains, 47 pump plants, 172 debris basins, 27 sediment placement sites, 3 seawater intrusion barriers and an estimated 82,000 catch basins.
The Act gives the District various powers to finance flood control projects. For example, the District can levy a tax upon real property in the district to carry out its objectives and purposes, and to maintain, operate, extend, and repair work or improvements. This tax cannot exceed $0.15 per $100 of assessed value, exclusive of any tax levied to pay off bonds. Additionally, the District can borrow money without voter approval from the U.S. government, its agencies or departments, or from any nonprofit corporation the federal government authorizes to complete any flood control project provided the loan terms do not exceed 20 years, or have interest rates over 4.25%. To repay these loans, the District must levy a tax on property sufficient to pay the interest and installments of principal. However, the amount of taxes levied in any year for this purpose proportionally reduces the District’s authority to tax real property in the district. In addition, the District can issue bonds for sale to the County. Combined, these loans and bonds cannot exceed $4.5 million. This $4.5 million limit has been in place since 1935 [AB 1258 (Field), Chapter 4, Statutes of 1935]. If adjusted for inflation, this amount would be over $100 million today. According to the District, it has never financed a project using this borrowing authority, in part because the $4.5 million limit is too small for the projects the District wants to build.
The District has various projects it plans on funding in part with loans from the federal government, including:
- Big Tujunga Reservoir Restoration Project with a total budget of $60 million. This project has been preliminarily accepted by the federal Environmental Protection Agency (EPA) as eligible for funding under the federal Water Infrastructure Financing and Innovation Act of 2014 (WIFIA). The project will restore the reservoir’s storage and flood control capacity, reducing flood risk to downstream communities.
- Pacoima Reservoir Restoration Project with an $80 million total budget. Similar to the Big Tujunga project, it has been preliminarily accepted by the EPA for WIFIA funding. The project will reduce excess sediment buildup caused by recent fires and storms at the Pacoima Reservoir, which is threatening its continued operation, and improve its resilience to future extreme weather events.
- The Rory M. Shaw Wetlands Park Project, which has advanced through the permit acquisition phase and undergone a final review of its plans, specifications, and cost estimates. The District expects the total project costs to be around $240 million, which could come from various funding sources including a $105 million WIFIA loan. The project plans to mitigate flood risk, reduce stormwater pollution, and increase water conservation, recreational opportunities, and wildlife habitat by converting a 46-acre, engineered, inert landfill into a multi-purpose wetlands park.
- Big Tujunga Reservoir Restoration Project with a total budget of $60 million. This project has been preliminarily accepted by the federal Environmental Protection Agency (EPA) as eligible for funding under the federal Water Infrastructure Financing and Innovation Act of 2014 (WIFIA). The project will restore the reservoir’s storage and flood control capacity, reducing flood risk to downstream communities.
According to the EPA, WIFIA projects have loan durations up to 35 years, a minimum project cost of $20 million, and can fund a maximum of 49% of eligible project costs. Additionally, the total federal assistance may not exceed 80% of a project’s eligible costs. Projects must also be creditworthy and have a dedicated source of revenue.
- Bill Summary and Author’s Statement. This bill makes specified changes to provisions related to the District’s ability to borrow money from the U.S. Government, any agency or department of the U.S. Government, or from any specified nonprofit corporation, including removing the $4.5 million borrowing limit, increasing the maximum interest rate on loans from 4.25% to 5.5%, and extending the maximum length of a loan from 20 to 35 years. Los Angeles County is the sponsor of this bill.
According to the author, “Climate change has introduced new terms like bomb cyclone and atmospheric river to convey the force and magnitude of winter weather conditions that are becoming the norm, not the exception. We therefore need to update our infrastructure to be ready and resilient to all winter expectations. That is why I authored SB 1169, in hopes to modernize the Los Angeles County Flood Control Act to address critical infrastructure challenges facing our beautiful city.
“This bill seeks to remove outdated restrictions on federal loans, ensuring that the Los Angeles County Flood Control District has access to necessary financial resources to safeguard our communities from climate-induced flood risks and strengthen our water infrastructure. The need for this legislation is clear: our current infrastructure is aging, and the impacts of climate change are exacerbating the challenges we face. SB 1169 will empower the District to undertake essential projects to protect our residents and enhance our water management systems.”
- Arguments in Support. According to Los Angeles County, the sponsors of this bill, “By modernizing the Los Angeles County Flood Control Act (Act), SB 1169 will provide Los Angeles County access to critical financial assistance programs to finance projects that safeguard communities from climate-induced flood risks and bolster water infrastructure.
“The Act was enacted by the California Legislature in 1915 after a disastrous regional flood took a heavy toll on lives and property in the County; it has been amended several times since its enactment. The Act currently includes a restriction, added in 1935, that prohibits the Los Angeles County Flood Control District (District) from borrowing more than $4.5 million from federal sources. This limit has yet to be adjusted for inflation or changed to reflect the cost of modern-day infrastructure projects of regional importance, which are typically valued well above $4.5 million.
“By modernizing the outdated debt language and removing the non-adjusting limit, SB 1169 will ensure reasonable current and future financial flexibility for the Los Angeles Flood Control District to provide flood protection that safeguards our communities now and well into the future.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Los Angeles County [SPONSOR]
Las Virgenes Municipal Water District
Los Angeles County Sanitation Districts
Metropolitan Water District of Southern California
San Gabriel Valley Water Association
Santa Clarita Valley Water Agency
Southern California Water Coalition
Upper San Gabriel Valley Municipal Water District
Water Replenishment District of California
Opposition
None on file
Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1169 |
CONSENT
Bill No: SB 1169
Author: Stern (D), et al.
Amended: 3/18/24
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE: 6-0, 5/1/24
AYES: Durazo, Seyarto, Dahle, Skinner, Smallwood-Cuevas, Wiener
NO VOTE RECORDED: Glazer
SUBJECT: Los Angeles County Flood Control District: finances
SOURCE: County of Los Angeles Board of Supervisors
DIGEST:
This bill makes changes to the Los Angeles County Flood Control District’s (the District) authority to borrow money from the federal government.
ANALYSIS:
Existing law:
- Forms the District and gives it various powers to finance flood control projects. For example, the District can levy a tax upon real property in the district to carry out its objectives and purposes, and to maintain, operate, extend, and repair work or improvements. This tax cannot exceed $0.15 per $100 of assessed value, exclusive of any tax levied to pay off bonds.
- Allows the District to borrow money without voter approval from the U.S. government, its agencies or departments, or from any nonprofit corporation the federal government authorizes to complete any flood control project provided the loan terms do not exceed 20 years, or have interest rates over 4.25 percent.
- Requires the District to levy a tax on property sufficient to pay the interest and installments of principal to repay the loans mentioned above. However, the amount of taxes levied in any year for this purpose proportionally reduces the District’s authority to tax real property in the district.
- Allows the District to issue bonds for sale to the County. Combined, the loans mentioned in 2) and these bonds cannot exceed $4.5 million.
This bill makes various changes to the District’s authority to borrow money from the federal government. Specifically, this bill:
- Allows the District to not just borrow money from the federal government, but also obtain loan guarantees.
- Extends the loan periods from 20 to 35 years.
- Increases the loan interest rate limit from 4.25 to 5.5 percent.
- Requires no longer the District to levy a tax on property to repay these loans, but continues to allow it to do so provided it meets constitutional requirements.
- Removes the requirement that taxes levied in any year for repaying federal loans proportionally reduces the District’s authority to tax real property in the district.
- Removes the $4.5 million limit on these loans and bonds.
- Makes various technical changes.
Background
The District is a special act special district that provides flood control and water quality services to 85 cities and most of the unincorporated area in Los Angeles County, covering 3,000 square miles and 2.1 million parcels of land. The District is governed ex officio by the Los Angeles County Board of Supervisors.
The District has various projects it plans on funding in part with loans from the federal government, including:
- Big Tujunga Reservoir Restoration Project with a total budget of $60 million. This project has been preliminarily accepted by the federal Environmental Protection Agency (EPA) as eligible for funding under the federal Water Infrastructure Financing and Innovation Act (WIFIA). The project will restore the reservoir’s storage and flood control capacity, reducing flood risk to downstream communities.
- Pacoima Reservoir Restoration Project with an $80 million total budget. Similar to the Big Tujunga project, it has been preliminarily accepted by the EPA for WIFIA funding. The project will reduce excess sediment buildup caused by recent fires and storms at the Pacoima Reservoir, which is threatening its continued operation, and improve its resilience to future extreme weather events.
- The Rory M. Shaw Wetlands Park Project, which has advanced through the permit acquisition phase and undergone a final review of its plans, specifications, and cost estimates. The District expects the total project costs to be around $240 million, which will come from various funding sources including a $105 million WIFIA loan. The project plans to mitigate flood risk, reduce stormwater pollution, increase water conservation, recreational opportunities, and wildlife habitat by converting a 46-acre, engineered, inert landfill into a multi-purpose wetlands park.
WIFIA projects have loan durations up to 35 years and a minimum project cost of $20 million.
Comments
- Purpose of the bill. According to the author, “Climate change has introduced new terms like bomb cyclone and atmospheric river to convey the force and magnitude of winter weather conditions that are becoming the norm, not the exception. We therefore need to update our infrastructure to be ready and resilient to all winter expectations. That is why I authored SB 1169, in hopes to modernize the Los Angeles County Flood Control Act to address critical infrastructure challenges facing our beautiful city. This bill seeks to remove outdated restrictions on federal loans, ensuring that the Los Angeles County Flood Control District has access to necessary financial resources to safeguard our communities from climate-induced flood risks and strengthen our water infrastructure. The need for this legislation is clear: our current infrastructure is aging, and the impacts of climate change are exacerbating the challenges we face. SB 1169 will empower the District to undertake essential projects to protect our residents and enhance our water management systems.”
- Raise the roof. In 1935, the Legislature imposed the $4.5 million loan limit on the District’s federal loan capacity (AB 1258, Field, Chapter 4, Statutes of 1935). The limit has remained unchanged for nearly 90 years, which the district says has prevented it from using this authority to borrow funds from the federal government without voter approval. According to the Federal Reserve Bank of Minneapolis’s inflation calculator, $4.5 million in 1935 is equivalent to nearly $100 million today. Even $100 million is not enough to cover the three WIFIA loans the District is seeking for the Big Tujunga Reservoir Restoration Project, the Pacoima Reservoir Restoration Project, and the Rory M. Shaw Wetlands Park Project. The District is not aware of other authority to borrow from the federal government. The other alternative the District would have is to finance these projects with municipal bonds, which may or may not be less expensive, and would require voter approval. According to the District, “If no financing is possible for these large-scale sediment removal projects, it is likely the projects would be postponed, preventing the restoration of capacity for flood protection for the downstream communities and stormwater capture for subsequent groundwater recharge.” By removing the limit, the District would have unlimited authority to borrow money from the federal government or sell bonds to the county without voter approval. Should the Legislature eliminate the District’s $4.5 million cap on federal loans and bonds sold to the county?
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 5/1/24)
County of Los Angeles Board of Supervisors (source)
Las Virgenes Municipal Water District
Los Angeles County Sanitation Districts
San Gabriel Valley Water Association
Santa Clarita Valley Water Agency
Southern California Water Coalition
Upper San Gabriel Valley Municipal Water District
Water Replenishment District of Southern California
OPPOSITION: (Verified 5/1/24)
None received
Prepared by: Jonathan Peterson / L. GOV. / (916) 651-4119
5/2/24 15:20:19
**** END ****
SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2023 - 2024 Regular
Bill No: | SB 1169 | Hearing Date: | 5/1/24 |
Author: | Stern | Fiscal: | No |
Version: | 3/18/24 | Consultant: | Peterson |
Los Angeles County Flood Control District: finances
Makes changes to the Los Angeles County Flood Control District’s authority to borrow money from the federal government.
Background
Formed in 1915 (SB 459, Benedict and Carr), the Los Angeles County Flood Control District (the District) is a special act special district that provides flood control and water quality services to 85 cities and most of the unincorporated area in Los Angeles County, covering 3,000 square miles and 2.1 million parcels of land. The District is governed ex officio by the Los Angeles County Board of Supervisors.
The Los Angeles County Flood Control District Act (the Act) gives the District various powers to finance flood control projects. For example, the District can levy a tax upon real property in the district to carry out its objectives and purposes, and to maintain, operate, extend, and repair work or improvements. This tax cannot exceed $0.15 per $100 of assessed value, exclusive of any tax levied to pay off bonds. Additionally, the District can borrow money without voter approval from the U.S. government, its agencies or departments, or from any nonprofit corporation the federal government authorizes to complete any flood control project provided the loan terms do not exceed 20 years, or have interest rates over 4.25 percent. To repay these loans, the District must levy a tax on property sufficient to pay the interest and installments of principal. However, the amount of taxes levied in any year for this purpose proportionally reduces the District’s authority to tax real property in the district. In addition, the District can issue bonds for sale to the County. Combined, these loans and bonds cannot exceed $4.5 million. According to the District, it has never financed a project using this borrowing authority, in part because the $4.5 million limit is too small for the projects the District wants to build.
The District has various projects it plans on funding in part with loans from the federal government, including:
- Big Tujunga Reservoir Restoration Project with a total budget of $60 million. This project has been preliminarily accepted by the federal Environmental Protection Agency (EPA) as eligible for funding under the federal Water Infrastructure Financing and Innovation Act (WIFIA). The project will restore the reservoir’s storage and flood control capacity, reducing flood risk to downstream communities.
- Pacoima Reservoir Restoration Project with an $80 million total budget. Similar to the Big Tujunga project, it has been preliminarily accepted by the EPA for WIFIA funding. The project will reduce excess sediment buildup caused by recent fires and storms at the Pacoima Reservoir, which is threatening its continued operation, and improve its resilience to future extreme weather events.
- The Rory M. Shaw Wetlands Park Project, which has advanced through the permit acquisition phase and undergone a final review of its plans, specifications, and cost estimates. The District expects the total project costs to be around $240 million, which will come from various funding sources including a $105 million WIFIA loan. The project plans to mitigate flood risk, reduce stormwater pollution, increase water conservation, recreational opportunities, and wildlife habitat by converting a 46-acre, engineered, inert landfill into a multi-purpose wetlands park.
WIFIA projects have loan durations up to 35 years and a minimum project cost of $20 million.
The District wants to make several changes to its federal loan authority to align this authority with federal loan programs like WIFIA.
Proposed Law
Senate Bill 1169 makes various changes to the District’s authority to borrow money from the federal government:
- Allows the District to not just borrow money from the federal government, but also obtain loan guarantees;
- Extends the loan periods from 20 to 35 years;
- Increases the loan interest rate limit from 4.25 to 5.5 percent;
- No longer requires the District to levy a tax on property to repay these loans, but continues to allow it to do so provided it meets constitutional requirements;
- Removes the requirement that taxes levied in any year for repaying federal loans proportionally reduces the District’s authority to tax real property in the district; and
- Removes the $4.5 million limit on these loans and bonds.
Finally, the measure makes various technical changes.
Comments
1. Purpose of the bill. According to the author, “Climate change has introduced new terms like bomb cyclone and atmospheric river to convey the force and magnitude of winter weather conditions that are becoming the norm, not the exception. We therefore need to update our infrastructure to be ready and resilient to all winter expectations. That is why I authored SB 1169, in hopes to modernize the Los Angeles County Flood Control Act to address critical infrastructure challenges facing our beautiful city. This bill seeks to remove outdated restrictions on federal loans, ensuring that the Los Angeles County Flood Control District has access to necessary financial resources to safeguard our communities from climate-induced flood risks and strengthen our water infrastructure. The need for this legislation is clear: our current infrastructure is aging, and the impacts of climate change are exacerbating the challenges we face. SB 1169 will empower the District to undertake essential projects to protect our residents and enhance our water management systems.”
2. Raise the roof. In 1935, the Legislature imposed the $4.5 million loan limit on the District’s federal loan capacity (AB 1258, Field). The limit has remain unchanged for nearly 90 years, which the district says has prevented it from using this authority to borrow funds from the federal government without voter approval. According to the Federal Reserve Bank of Minneapolis’s inflation calculator,[1] $4.5 million in 1935 is equivalent to nearly $100 million today. Even $100 million is not enough to cover the three WIFIA loans the District is seeking for the Big Tujunga Reservoir Restoration Project, the Pacoima Reservoir Restoration Project, and the Rory M. Shaw Wetlands Park Project. The District is not aware of other authority to borrow from the federal government. The other alternative the District would have is to finance these projects with municipal bonds, which may or may not be less expensive, and would require voter approval. According the District, “If no financing is possible for these large-scale sediment removal projects, it is likely the projects would be postponed, preventing the restoration of capacity for flood protection for the downstream communities and stormwater capture for subsequent groundwater recharge.” By removing the limit, the District would have unlimited authority to borrow money from the federal government or sell bonds to the county without voter approval. Should the Legislature eliminate the District’s $4.5 million cap on federal loans and bonds sold to the county?
3. Special legislation. Section 16 of Article Four of the California Constitution prohibits special legislation when a general law can apply. SB 1169 contains findings and declarations explaining the need for legislation that applies only to the Los Angeles County Flood Control District.
Support and Opposition
(4/26/24)
Support: County of Los Angeles Board of Supervisors (Sponsor)
Las Virgenes Municipal Water District
Los Angeles County Sanitation Districts
San Gabriel Valley Water Association
Santa Clarita Valley Water Agency
Southern California Water Coalition
Upper San Gabriel Valley Municipal Water District
Water Replenishment District of Southern California
Opposition: None submitted.
-- END --
https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator ↑
Bill Author
Bill Co-Author(s):