AB 1712: City of Santa Fe Springs: sale of water utility property.

Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, that are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes procedures whereby a municipal corporation may lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including, in the case of sale or transfer of the public utility located inside the municipal boundaries, the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better service by the acquiring entity, if the sale or transfer is approved by a majority of all voters voting on the issue in an election, and the acquiring entity discloses specified information before the election.

This bill would authorize the City of Santa Fe Springs, until January 1, 2032, to sell its public utility for furnishing water service for the purpose of consolidating its public water system with another public water system pursuant to specified procedures if certain requirements are met. The bill would require the city to consider oral and written protests, as provided, and would prohibit the city from selling the public utility for one year if 50% of interested persons, as defined, protest the sale.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Santa Fe Springs.