HomeMy WebLinkAbout2015-06-18 - Board of Directors Meeting Agenda Packet (B) Yorba Linda
Hater District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Thursday, June 18, 2015, 2:30 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. ROLL CALL
Ric Collett, President
Michael J. Beverage, Vice President
Phil Hawkins
Robert R. Kiley
Gary T. Melton
3. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three
minutes.
4. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to
formal Board action.
4.1. Budget Trailer Bill (TB) 807 - Drinking Water Program
Recommendation. That the Board of Directors (1) consider taking a position on TB
807; and (2) submit a letter to local legislators indicating the District's position.
4.2. Budget Trailer Bill (TB) 825 - Water System Consolidation
Recommendation. That the Board of Directors (1) consider taking an Oppose
position on TB 825; and (2) submit a letter to local legislators indicating the District's
opposition.
5. ADJOURNMENT
5.1. The next Regular Board of Directors Meeting will be held Thursday, June 25, 2015 at
8:30 a.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District's internet
website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 4.1
AGENDA REPORT
Meeting Date: June 18, 2015
To: Board of Directors
From: Marc Marcantonio, General
Manager
Presented By: Damon Micalizzi, Public
Information Manager
Prepared By: Damon Micalizzi, Public
Information Manager
Subject: Budget Trailer Bill (TB) 807 - Drinking Water Program
SUMMARY:
The state's drinking water program is administered by the State Water Resources Control Board's Division
of Drinking Water and currently is funded in large part through "operating fees" paid by public water
systems. Under existing law the fees for large water systems must be based on the actual costs incurred
in relation to the public water system in question (i.e., a fee-for-service model). The statute sets a cap on
the base total for the fees and a cap on annual increases.
In the budget trailer bill proposal, the State Water Board is proposing to change how it imposes these fees.
Under the proposed language, each public water system would submit an annual fee according to a
schedule established by the State Water Board "for the purpose of Budget Trailer Bill Language #807 June
2, reimbursing SWRCB for the costs incurred by the state board for activities mandated by this chapter."
The State Water Board would be authorized to adopt these fees by emergency regulation, and would "set
the amount of total revenue collected each year through the fee schedule at an amount equal to the
amount appropriated by the Legislature in the annual budget act..." There would be no cap in statute on
the total amount of the fees or on fee increases. The fees for large systems would not have to be based on
actual costs for the system in question.
STAFF RECOMMENDATION:
That the Board of Directors (1) consider taking a position on TB 807; and (2) submit a letter to
local legislators indicating the District's position.
DISCUSSION:
ACWA and other coalition members agree the drinking water program needs to be funded adequately, and
support a short-term solution that would temporarily increase the total cap on large water system fees by
$1 million to provide time for the State Water Board to convene a stakeholder process in the fall to work on
a long-term solution.
STRATEGIC PLAN:
SR 1-C: Engage with Regional Agencies on Water Supply Issues
ATTACHMENTS:
Name: Description: Type:
807WaterBoard DrinkingWaterProg ram Fee Regulations OOO.pdf TB 807 Backup Material
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 1
An act to amend Section 6103.4 of the Government Code, and to amend
Sections 116275, 116577, 116585, 116590, and 116595 of, to repeal
N
O
Sections 116570 and 116580 of, and to repeal and add Section 116565
m
0
N
of, the Health and Safety Code, relating to the State Water Resources
Control Board.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 2
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6103.4 of the Government Code is amended to read:
6103.4. Section 6103 does not apply to any fee or charge for official services
required by °eet _M 1 00860 of any of the following:
a The Environmental Laboratory Accreditation Act Article 3 (commencing.�
N
N
with Section 100825 of Cha ter 4 of Part 1 of Division 101 of the Health and Safe
m
Code
b Article 3 (commencing.with Section 106875 of Chapter 4 of Part 1 of
Division 104 of the Health and Safety Code.
c The California Safe Drinking Water Act(Chapter 4(commencing with Section
116270) of Part 12 of Division 104 of the Health and Safety Code).
d The Safe Drinking Water State Revolving Fund Law of 1997 (Chapter 4.5
(commencing with Section 116760 of Part 12 of Division 104 of the Health and Safe
Code).
e Article 2 (commencing with Section 116800 and Article 3 commencin
with Section 116825) of Chapter 5 of Part 12 of Division 104 of the Health and Safety
Code, or Part.Code.
Part 5 (commencing with Section 4999) of Division-47ff 2 and Division 7
(commencing with Section 13000), of the Water Code.
SEC. 2. Section 116275 of the Health and Safety Code is amended to read:
116275. As used in this chapter:
(a) "Contaminant" means any physical, chemical, biological, or radiological
substance or matter in water.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 3
(b) "Department" means the state board.
(c) "Primary drinking water standards" means:
(1) Maximum levels of contaminants that, in the judgment of the
state board, may have an adverse effect on the health of persons.
(2) Specific treatment techniques adopted by the state board in lieu
H
of maximum contaminant levels pursuant to subdivision 0) of Section 116365. N
0
N
(3)The monitoring and reporting requirements as specified in regulations adopted
by theme state board that pertain to maximum contaminant levels.
(d)"Secondary drinking water standards"means standards that specify maximum
contaminant levels that, in the judgment of the state board, are necessary
to protect the public welfare. Secondary drinking water standards may apply to any
contaminant in drinking water that may adversely affect the odor or appearance of the
water and may cause a substantial number of persons served by the public water system
to discontinue its use, or that may otherwise adversely affect the public welfare.
Regulations establishing secondary drinking water standards may vary according to
geographic and other circumstances and may apply to any contaminant in drinking
water that adversely affects the taste, odor, or appearance of the water when the
standards are necessary to ensure a supply of pure, wholesome, and potable water.
(e) "Human consumption" means the use of water for drinking, bathing or
showering, hand washing, oral hygiene, or cooking, including, but not limited to,
preparing food and washing dishes.
(f) "Maximum contaminant level" means the maximum permissible level of a
contaminant in water.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 4
(g)"Person"means an individual,corporation, company,association,partnership,
limited liability company,municipality,public utility,or other public body or institution.
(h) "Public water system"means a system for the provision of water for human
consumption through pipes or other constructed conveyances that has 15 or more
service connections or regularly serves at least 25 individuals daily at least 60 days
a
out of the year.A public water system includes the following:
0
(1) Any collection, treatment, storage, and distribution facilities under control
M
N
of the operator of the system that are used primarily in connection with the system.
(2) Any collection or pretreatment storage facilities not under the control of the
operator that are used primarily in connection with the system.
(3) Any water system that treats water on behalf of one or more public water
systems for the purpose of rendering it safe for human consumption.
(i) "Community water system" means a public water system that serves at least
15 service connections used by yearlong residents or regularly serves at least 25 yearlong
residents of the area served by the system,
0) "Noncommunity water system" means a public water system that is not a
community water system.
(k) "Nontransient noncommunity water system" means a public water system
that is not a community water system and that regularly serves at least 25 of the same
persons over six months per year.
(0 "Local health officer" means a local health officer appointed pursuant to
Section 101000 or a local comprehensive health agency designated by the board of
supervisors pursuant to Section 101275 to carry out the drinking water program.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 5
(m) "Significant rise in the bacterial count of water"means a rise in the bacterial
count of water that the state board determines, by regulation, represents
an immediate danger to the health of water users.
(n) "State small water system" means a system for the provision of piped water
to the public for human consumption that serves at least five, but not more than 14,
a
a
service connections and does not regularly serve drinking water to more than an average
of 25 individuals daily for more than 60 days out of the year.
0
N
N
(o) "Transient noncommunity water system"means a noncommunity water
0
system that does not regularly serve at least 25 of the same persons over six months
per year.
(p) "User" means a person using water for domestic purposes. User does not
include a person processing,selling,or serving water or operating a public water system.
(q) "Waterworks standards" means regulations adopted by the state
board that take cognizance of the latest available"Standards of Minimum Requirements
for Safe Practice in the Production and Delivery of Water for Domestic Use" adopted
by the California section of the American Water Works Association.
(r) "Local primacy agency"means a local health officer that has applied for and
received primacy delegation ffom the department pursuant to Section 116330.
(s) "Service connection"means the point of connection between the customer's
piping or constructed conveyance, and the water system's meter, service pipe, or
constructed conveyance.A connection to a system that delivers water by a constructed
conveyance other than a pipe shall not be considered a connection in determining if
the system is a public water system if any of the following apply:
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 6
(1) The water is used exclusively for purposes other than residential uses,
consisting of drinking, bathing, and cooking or other similar uses.
(2) The state board determines that alternative water to achieve the
equivalent level of public health protection provided by the applicable primary drinking
water regulation is provided for residential or similar uses for drinking and cooking.
a
a
(3)Theme state board determines that the water provided for residential
N
a
or similar uses for drinking, cooking, and bathing is centrally treated or treated at the
point of entry by the provider,a passthrough entity,or the user to achieve the equivalent
level of protection provided by the applicable primary drinking water regulations.
(t) "Resident"means a person who physically occupies,whether by ownership,
rental, lease, or other means, the same dwelling for at least 60 days of the year.
(u) "Water treatment operator" means a person who has met the requirements
for a specific water treatment operator grade pursuant to Section 106875.
(v) "Water treatment operator-in-training" means a person who has applied for
and passed the written examination given by the state board but does not
yet meet the experience requirements for a specific water treatment operator grade
pursuant to Section 106875.
(w) "Water distribution operator"means a person who has met the requirements
for a specific water distribution operator grade pursuant to Section 106875.
(x) "Water treatment plant" means a group or assemblage of structures,
equipment, and processes that treats,blends, or conditions the water supply of a public
water system for the purpose of meeting primary drinking water standards.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 7
(y) "Water distribution system"means any combination of pipes, tanks,pumps,
and other physical features that deliver water from the source or water treatment plant
to the consumer.
(z)"Public health goal"means a goal established by the Office of Environmental
Health Hazard Assessment pursuant to subdivision (c) of Section 116365.
(aa) "Small community water system" means a community water system that ro
0
N
C
serves no more than 3,300 service connections or a yearlong population of no more
0
than 10,000 persons.
(ab) "Disadvantaged community"means the entire service area of a community
water system, or a community therein, in which the median household income is less
than 80 percent of the statewide average.
(ac) "State board" means the State Water Resources Control Board.
SEC. 3. Section 116565 of the Health and Safety Code is repealed.
116565. (a)Eaeh publie water system servitig 1,000 or more serviee ,
"d mty publie water system that treats water on behalf of one or inore publie wate
the department for the aettial eost inemred by the department for eendueting those
permits, inspeetiens, moititoring, stirreillanee, and water quality evaittation that r
to pa)-, but in no event shall exeeed, the department's aetual eost itt eaitdtteting these
des:
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 8
(b)Eaeh pAlie water system serving fewer than 1,000 .9- i- . . etions shal
subdivision for eests itiettrred by the department for eandueting those aetivit
mandated by this ehapter relating to ittspeeti-ons, monitoriag, surveiiianee, and water
quality e�valttation relating to pAlie water systems. T+e total amo F&es sha4l
st4fiei—ent,to a
H
w
N
7 7 7 V
O
N
m
7 the ametmt
systems,shail be paid annttally by a pttblie water system pumuant to this seetion shall
(1) Gonuntmity water 7 but not
system,less 4=two htmdred fifty 4ollars ($250) per watef
department,by the 7
eonmeetion, bttt not 1M 4mft two htmdred fifty dollars (%159) per water systern.
Seetion 1 16275, t_.,. dollars (mn) per_____-- served, L_.a not 1,..,.H than F...... l.__«_]«=_]
system,fifty six dollars ($456-) per water whieh may be inereased by the departm
served,as provided for in subdivision (f), to thfee dollars ($3) per person but not less
than ��htmdred fifty-six dollars ($456) per water system.
116275, system, whieh may be inerease
the 7 7 to one thottsftnd three htm
thirty five doliars ($1,335) per water systerit.m
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 9
to former Seetion 11628-2 att 4mmM 1, 201-2, one htmdred two dollars ($102)pe
water system.
(e) For pttrposes of determining the fees provided for itt stibdivisiort (a), th-c
in subdivision (a) relative to eaeh system required to pay the fees. The ke eh
a
a
H
w
m
a
n
7
a
, ® o
N
7 �
7
year.(d) The depaftment shali submit an invoice for eost reinthtffsement for the
aeti-vities speeified in subdivision (a) to the publie water systems no more than twiee
(1) The department shall sttbtnit one estimated eost invoiee to ptiblie Water
systems serving 1,000
treats water on behalf of one or more pttblie waier systems for the puTpose of retidering
dthring the first six months of the fiseal year T+e hourly east rate used to dete i -
the amotmt of the estimated eost invoiee shall be the rate for the pre-vious fiseal yeat
(2)The dep—artment shall sttbrnif a fitial invoiee to the publie water system before
Oetober 1 following the fiseal year that the eosts were inetured. The invoiee 81tall
indieate the total hours expended dttring the fiseal year,the reasons fbr the ,
year,the hourly eost rate of the department for the fiseal ,
and payments reeeived. The amottnt of the final irevoiee shall be determitted ttsing the
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 10
made within 90 days ofthe date ofthe imoiee. Fa4ffe to pay the amotmt of the ilwoiee
within 90 days shall restt4 ilt a 10 pereem late penalty that shallbe paid in addition io
department. This seetion shall not preeittde a leeal health offieer from imposing
additional fees pursttant to Seetion 10 1325.
(f)The depwltmeM may irtereftse the fees established in subdivision(b)as fallowg.-
(1) By Febmwy 1 of the fiseal year pfior to the fiseal year for whieh fees are
proposed to be inereased, the department shall ptiblish a list of fees for the f-011
fiseal year and a report showing the ealettlation of the atnotmi of+e fees.
(2) The department shall make the report tmd the list of fees available to the
pt�blie by stibinitting them to +.e �6egislature and posting them on the departm
internet Web site.
(3) The department shall establish the amotmt of fee increases subjeet to th-e
approval and appropriation by the Legislatm-e-.
a
O
N
C
m
O
N
SEC. 4. Section 116565 is added to the Health and Safety Code, to read:
116565. (a) Each public water system shall submit an annual fee according to
a fee schedule established by the state board pursuant to subdivision(c)for the purpose
of reimbursing the state board for the costs incurred by the state board for conducting
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 11
activities mandated by this chapter. The amount of reimbursement shall be sufficient
to pay,but in no event shall exceed,the state board's costs in conducting these activities,
including a prudent reserve in the Safe Drinking Water Account.
(b) Payment of the annual fee shall be due 90 calendar days following the due
date established in the schedule. Failure to pay the annual fee within 90 calendar days
shall result in a 10-percent late penalty that shall be paid in addition to the fee. N
0
N
C
(c) The state board shall adopt, by emergency regulation, a schedule of fees, as
0
authorized by this section. The emergency regulations may include provisions
concerning the administration and collection of the fees.
(d) The state board shall set the amount of total revenue collected each year
through the fee schedule at an amount equal to the amount appropriated by the
Legislature in the annual Budget Act from the Safe Drinking Water Account for
expenditure for the administration of this chapter, taping into account the reserves in
the Safe Drinking Water Account.The state board shall review and revise the fees each
fiscal year as necessary to conform with the amounts appropriated by the Legislature.
If the state board determines that the revenue collected during the preceding year was
greater than, or less than, the amounts appropriated by the Legislature, the state board
may further adjust the fees to compensate for the over or under collection of revenue.
(e) (1) Except as provided in paragraph (2), the emergency regulations adopted
pursuant to this section, any amendment thereto, or subsequent adjustments to the
annual fees, shall be adopted by the state board in accordance with Chapter 3.5
(commencing with Section 113 40)of Part 1 of Division 3 of Title 2 of the Government
Code. The adoption of these regulations is an emergency and shall be considered by
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 12
the Office of Administrative Law as necessary for the immediate preservation of the
public peace, health, safety, and general welfare.
(2)Notwithstanding Section 116377, any emergency regulations adopted by the
state board, or adjustments to the annual fees made by the state board pursuant to this
section, shall not be subject to review by the Office of Administrative Law and shall
a
a
remain in effect until revised by the state board. N
0
N
(f) A public water system under the jurisdiction of a local primacy agency shall
pay the fees specified in this section to the local primacy agency in lieu of the state
board. This section does not preclude a local health officer from imposing additional
fees pursuant to Section 101325.
SEC. 5. Section 116570 of the Health and Safety Code is repealed.
116570. (a) Each publie water system serving less than 1,000 serviee
eonneetions applying for a domestie water sttpply permit ptusuant to Seetion H 6525
or 11655 0 shall pay a permit appliettion proeessing fee to the department. Payment
of the fee shall aeeompany the applieMien for 4te pertnit or permit amendment.
(b) The ametint of the permit appheation fee reqttired tinder stbdivision (a)
shall be as follows-
(!) A new eommunity water system for whieh no domestie water supply permits
have beett previously isstied by the department shall pay an appheation fee offive
htmdred dollars (000),
(2) A new noneomnftmity water system fa.r which no domestie walef supply
permits have been previously isstted by the department shall pety an appReation f�e 0
three htmdred dollafs ($300).
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 13
(3) An existing publie water system applying for tm amendment to a defftestie
water supply permit due to Et eh- ership sha44 pay em ftpplieatiott fee of atte
(4) An existing pttblie water systern applying for an amendment to a demestie
addition or e+te;nge in ihe method of tfeatment of the water supply shail pay an
applieation fee of two htmdred fifty dollars ($250).
in liett of the department.
a
a
N
IA
N
b
O
N
W
m
O
SEC. 6. Section 116577 of the Health and Safety Code is amended to read:
116577. (a) Each public water system shall reimburse the state
board for actual costs incurred by theme state board for any of the following
enforcement activities related to that water system:
(1) Preparing, issuing, and monitoring compliance with, an order or a citation.
(2) Preparing and issuing public notification,
(3) Conducting a hearing pursuant to Section 116625.
(b) The state board shall submit an invoice for these enforcement
costs to the public water system that requires payment-prier-to before September 1 of
the fiscal year following the fiscal year in which the costs were incurred. The invoice
shall indicate the total hours expended, the reasons for the expenditure, and the hourly
cost rate of the state board. The costs set forth in the invoice shall not
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 14
exceed the total actual costs to the state board of enforcement activities
specified in this section.
(c) Notwithstanding the reimbursement of enforcement costs of the local primacy
agency pursuant to subdivision(a) of Section 116595 by-a public water system
under the jurisdiction of the local primacy agency,-a public water-jysterns system shall
a
a
also reimburse enforcement costs, if any, incurred by the—department—state board N
n
C'
pursuant to this section.
(d) "Enforcement-ees '=costs:' as used in this seeti 3,n section does not include
"litigation costs" pursuant to Section 116585.
(e) The state board shall not be entitled to enforcement costs pursuant
to this section ifs a court determines that enforcement activities
were in error.
system serving less thwt 1,090 serviee eonneetions dttring mly fiseal year shall
exeeed one thattsatid dollars ($1,000) or twiee the maximttm for that pt+Iie we
system as set forth in stibdivisio.n. (e) of Seetion 116565, whiehe'ver is greater.
(f)Payment of the invoice shall be made within 90 dates of the date of the invoice.
Failure to pay the invoice within 90 days shall result in a 10-percent late penalty that
shall be paid in addition to the invoiced amount.
The state board may., at its sole discretion waive 12AYment by a public water
system of all or any part of the invoice or penalty.
SEC. 7. Section 116580 of the Health and Safety Code is repealed.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 15
review,116580. (a) Eaeh publie water system thatreqtiests an exemption,plan
of Waiver OF any appheable reqtirentent of this ehapter or any replati
adopted pursuatit to this chapter-,sha4l reimburse the depaitment for aefital eosts ineum
by the department i gF the reqttest.-
(b) The department shall submit an iiwoiee to the weAer system prior to E)etober
1 of the fiseal year Following+e fiseft! year in whieh the a
a
, m
rendered with respeet to the request for a plaqq n
N
a
7 61mPtion, ,
� N
department's
date of the invoiee. The department may reve4te any approval of a reqttest for an
exempti or waiver for fiailure to pay the required fees.
(e) Notwithstattding subd+visions (a) and 7 7
] ) 7 or waiver for pt+he water systerns=de
shall, instead, be submitted to the 10eal
SEC. 8. Section 116585 of the Health and Safety Code is amended to read:
116585. Ind a civil court action brought to enforce this chapter,the prevailing
party or parties shall be awarded litigation costs, including,but not limited to, salaries,
benefits,travel expenses,operating equipment, administrative,overhead,other litigation
costs, and attorney's fees, as determined by the court. Litigation costs awarded to the
departnt state board by the court shall be deposited into the Safe Drinking Water
Account. Litigation costs awarded to a local primacy agency by the court shall be used
by that local primacy agency to offset the local primacy agency's litigation costs.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 16
SEC. 9. Section 116590 of the Health and Safety Code is amended to read:
116590. (a) Funds received by theme state board pursuant
to this ,
(eommerteirtg with Seetion 11 chapter shall be deposited into the Safe Drinking
a
a
Wate Account, which is herebyrsked established, and shall be
available for use by the state board, upon appropriation by the Legislature, for the
N
N
purpose of providing funds necessary to administer this chapter. Funds in the Safe
Drinking Water Account-mad shall not be expended for any purpose other than as set
forth in this chapter. All moneys eolleeted by the department pursttant to Seeti
116665 to 116699, ineittsive, 4tall be deposited into the Safe Drinking Wftter,keeotmt.
aetual eosts ptwstiant to Seetions 116565, 116577, wtd 116580 shall bebased ttPO
s admiftistr
systern operatiftg tmder a peftnit issued ptirsttEmt to this ehapter shall pay the fees set.
forth in +is ehaptef.
btA public water system r-Y collect a fee from its
customers to recover the fees paid by the public water system pursuant to this chapter.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 17
(d) The fees eolleeted ptirsttant to st+di-,�ision (b) of Seetiatt 116565
4 00425, and the*ttsted fee amounts shall be rotinded off to the nearest whole dollar.
(e) Fees assessed purstiant to this ehapter shall not exeeed netual eosts te eithe.r
the depaftment or the local primaey } as the ease may be, related to the publi-c
water systems assessed the fees.
(f) in fio event shall the total amotmt of fidnds reeeived purstiant to subdivision
(a)ofSeetion a
a
r
w
4
N
S
serving 1,000
(!) For the 2001 02 fiseal } ($q,000,000).
years,(2) For the 2002 03 fiseal yeftr fmd subsequent fiseal the total amotmt a
ftmds shall riot itterease by more than 5 pereent ef the amotmt eolleeted for the prvviotts
fiseft! yea-rL
tasks,(g) T+e department sitall develop a time tteeettnting standafd designed to do all
of+e followings
(1) Provide aeettreAe time aeeetmt.*.,,,.
seetor professional elassifteations and comparable rates eharged by other states
eomparable serviees. These rates shallbe applied against the time spent by the aetual
(3) Establish work standards that address work timing, }
limits on redireetiatt of S aiftd limits on the time spent in the aggregate for
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 18
(4) Foabiish overhead eharge . lintit.f4ions, ineluding, but not limited ta,
the department by other departments and ageneies of the state, that reasonably relate
(5) Provide-appropriate itwoiee eor&ols.
SEC. 10. Section 116595 of the Health and Safety Code is amended to read: N
m
116595. (a) AttrA public water system under the jurisdiction of a local primacy
agency shall reimburse the local primacy agency for any enforcement cost incurred by
the local primacy agency related to any of the following relating to that water system:
(1) Preparing, issuing, and monitoring compliance with, an order or a citation.
(2) Preparing and issuing public notification.
(3) Conducting a hearing pursuant to Section 116625.
T+e
(b)The local primacy agency shall submit an invoice to the public water system
that requires payment, prior before September 1 of the fiscal year following the
fiscal year in which the costs were incurred. The invoice shall indicate the total hours
expended,the reasons for the expenditure,and the hourly cost rate of the local primacy
agency. The invoice shall not exceed the total costs to the local primacy agency of
enforcement activities specified in this subdivision.Notwithstanding the reimbursement
to theme state board of enforcement costs, if any,pursuant to Section 116577,
any public water system under the jurisdiction of the local primacy agency shall also
reimburse the local primacy agency for enforcement costs incurred by the local primacy
agency pursuant to this section. The local primacy agency shall not be entitled to
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 19
enforcement costs pursuant to this subdivision if-eider a court
ageney determines that enforcement activities were in error. "Enforcement costs" as
used in this subdivision does not include "litigation costs" as used in
The ma3tirattm reimbtirseraertt, pursuant to this subdivision, by a ptiblie water system
serving less than 1,000 serviee eartneetions dit ing any fiseal year shall not exee
twiee the maximitm for that publie water system as set fefth in st+dMsiert (e) of
a
N
O
N
W
Seetion 116565. Section 116585.
(e) Arty ptiblie water system under the jurisdietion of a loettl primaey agertey
that requests an exemption, vari .ver of any applieab le reqttirement of this
ehftpter, or any regul-atiort of the department adopted pursuarA to this ehapter, shaR
submit the reqttest to the loeal ney and shall reimburse the loeal primaey
m
o
N
(c)Payment of the invoice shall be made within 90 days of the date of the invoice.
Failure to pav the invoice within 90 days shall result in a 10-percent late pena4 that
shall be paid in addition to the invoiced amount.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 20
(d) The local primacy agency may, in its sole discretion, waive payment by a
public waters stem of all or my 12art of the invoice or the 12enafty.
SEC. 11. The repeal of Sections 116565, 116570, and 116580 of the Health
and Safety Code pursuant to Sections 3, 5, and 7, respectively, does not terminate any
obligations or authorities with respect to the collection of unpaid fees or reimbursements
H
imposed pursuant to those sections, as those sections read before the date of their repeal,
0
ro
including any interest or penalties that occur before, on, or after that date, associated
with those unpaid fees or reimbursements. _
- 0 -
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 1
N
IA
ro
LEGISLATIVE COUNSEL'S DIGEST N
m
Bill No.
as introduced,
General Subject: State Water Resources Control Board: California Safe Drinking Water
Act.
(1)Existing law generally prohibits the state, or a county, city, district, or other
political subdivision, or any public officer or body acting in its official capacity on
behalf of any of those entities, from being required to pay any fee for the performance
of an official service. Existing law exempts from this provision any fee or charge for
official services required pursuant to specified provisions of law relating to water use
or water quality, including the fees charged to public water systems under the California
Safe Drinking Water Act.
This bill would specifically exempt other provisions relating to water use and
water quality, including the Safe Drinking Water State Revolving Fund Law of 1997
and provisions relating to cross-connections of water users, water treatment devices,
and operator certification of water treatment plants and water distribution systems.
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 2
(2) The California Safe Drinking Water Act provides for the operation of public
water systems and imposes on the State Water Resources Control Board various duties
and responsibilities for the regulation and control of drinking water in the State of
California. The act requires a public water system serving 1,000 or more service
connections, and any public water system that treats water on behalf of one or more
public water systems for the purpose of rendering it safe for human consumption, to
0
a
reimburse the state board for the state board's actual costs of conducting specified
0
mandated activities that relate to that specific public water system. The act requires
the state board to submit an invoice to the public water system according to specified
provisions. The act requires a public water system serving fewer than 1,000 service
connections to pay an annual drinking water operating fee to the state board, as
specified, for the state board's costs of conducting specified mandated activities relating
to public water systems. The act authorizes the state board to increase this annual
drinking water operating fee according to specified procedures. The act also requires
a public water system serving less than 1,000 service connections applying for a
domestic water supply permit to pay a permit application processing fee to the state
board. The act requires a public water system under the jurisdiction of a local primacy
agency to pay the above-described fees to the local primacy agency in lieu of the state
board.
This bill would repeal the above-described reimbursement and fee provisions
and instead require the state board to adopt, by emergency regulation, a fee schedule,
to be paid annually by each public water system for the purpose of reimbursing the
state board for specified activities. The bill would prohibit the reimbursement from
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 3
exceeding the state board's cost of conducting the activities, as specified. The bill
would require the state board to set the total amount of revenue collected through the
fee schedule to be equal to the amount appropriated by the Legislature in the annual
Budget Act from the Safe Drinking Water Account for expenditure for the
administration of the act. The bill would require the state board to review and revise
a
H
the fee schedule each fiscal year, as necessary, and, if the state board determines that N
0
N
d
the amount of revenue collected during the preceding year was greater than, or less
than, the amounts appropriated by the Legislature, the bill would authorize the state
board to further adjust the fees.
The bill would allow the emergency regulations to include provisions relating
to the administration and collection of fees and would require that any emergency
regulations adopted by the state board,or adjustments to the annual fees,not be subject
to review by the Office of Administrative Law and remain in effect until revised by
the state board. The bill would require a public water system under the jurisdiction of
a local primacy agency to pay these fees to the local primacy agency in lieu of the state
board.
The act also generally requires each public water system to reimburse the state
board for actual costs incurred by the state board for specified enforcement activities
related to that water system and, for a public water system serving less than 1,000
service connections,restricts the maximum reimbursement to specified amounts.Under
the act, the state board is not entitled to these enforcement costs if either a court or the
state board determines that the enforcement activities were in error. The act imposes
02/05/15 08:19 PM
20652 RN 15 08864 PAGE 4
similar provisions upon a public water system under the jurisdiction of a local primacy
agency.
This bill would delete the maximum reimbursement limitation for public water
systems serving less than 1,000 service connections and would not entitle the state
board, or local primacy agency, if applicable, to enforcement costs if a court, not the
a
�w� a
state board or local primacy agency, determines that the enforcement activities were
P
N
C'
in error. The bill would require that payment of the invoice for reimbursement costs
be made within 90 days of the date of the invoice, with a 10% late penalty, and would
authorize the state board or local primacy agency to waive payment of all or any part
of the invoice or penalty.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local
program: no.
ITEM NO. 4.2
AGENDA REPORT
Meeting Date: June 18, 2015
To: Board of Directors
From: Marc Marcantonio, General
Manager
Presented By: Damon Micalizzi, Public
Information Manager
Prepared By: Damon Micalizzi, Public
Information Manager
Subject: Budget Trailer Bill (TB) 825 - Water System Consolidation
SUMMARY:
While the State Budget is now awaiting the Governor's signature, the debate over budget trailer
bills, including Water Consolidation Budget Trailer Bill 825, continues.
Budget Trailer Bill 825 would grant the State Water Resources Control Board power to force the
consolidation of a water system that, "...fails to reliably provide an adequate supply of safe potable
water...".
Although framed as a response to the State's current drought, this bill does not include a sunset
date or other provisions to tie this far reaching and largely unchecked grant of power to an
emergency drought situation. Furthermore, the proposal's vague definition of"fails" provides no
parameters to this unprecedented shifting of local control.
STAFF RECOMMENDATION:
That the Board of Directors (1) consider taking an Oppose position on TB 825; and (2) submit a
letter to local legislators indicating the District's opposition.
STRATEGIC PLAN:
SR 1-C: Engage with Regional Agencies on Water Supply Issues
ATTACHMENTS:
Description: Type:
825DroughtWaterSystemConsolidation OOO.pdf TB 825 Backup Material
Oppose TB 825 Huff.docx Opposition Letter TB 825 Huff Backup Material
Oppose TB 825 Chang.docx Opposition Letter TB 825 Chang Backup Material
Approved by the Board of Directors of the
Yorba Linda Water District
6/18/2015
PH/GM 5-0
J
05/21/15 07:52 PM
57099 RN 15 15870 PAGE 1
p
w
LEGISLATIVE COUNSEL'S DIGEST N
m
�'^ H
N
Bill No.
as introduced,
General Subject; Public water systems: consolidation,
Existing law prohibits a person from operating a public water system unless the
person first submits an application to the State Water Resources Control Board and
receives a perinit issued by the state board, as specified. Existing law requires the state
board to implement and administer various water quality control programs to protect
public health and preserve sources of water in the state.
This bill would authorize the state board,if public water system fails to reliably i
provide an adequate supply of safe,potable water, to require consolidation of that water
system with another public water system, if certain requirements are met. The bill
would require the state board, if it requires the consolidation of public water systems,
to provide financial assistance to the public water system that is incorporating the other
public water system,upon appropriation for this purpose, as necessary to complete the
consolidation. The bill would require the state board, if it requires a privately owned
05/21115 07:52 PM
57099 RN 15 15870 PAGE 2
public water system to be taken over in a consolidation, to compensate the owner or
owners of the privately owned public water system for the fair market value of that
public water system.
Vote: majority. Appropriation: no. Fiscal committee:yes. State-mandated local
program: no.
a
m
i
05/21/15 07;52 PM
57099 RN 15 '15870 PAGE 1
An act to add Section 116557 to the Health and Safety Code,relating to
drinking water. N
a
r
a
es
t '
05121J15 07:52 PM
57099 RN 15 15870 PAGE 2
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS;
SECTION 1. Section 116557 is added to the Health and Safety Code, to read:
116557, (a)Notwithstanding Section 56133 of the Government Cade,if a public
water system fails to reliably provide an adequate supply of safe,potable water, the
state board juay require the consolidation of that public water system with another
m
public water system, if the state board does all of the following:
F
w..wrwwr
(1) Consults with the relevant local agency formation commission regarding all
of the fallowing:
(A) Mow the consolidation of the public water systems n7ay affect water service
in the affected area.
(B) Recommendations for improving water service in the affected area.
(C) Any other information relevant to the consolidation of the public water
systems.
(2) Conducts a public hearing, in accordance with the requirements of Section
116545.
(3) Finds both of the fallowing:
(A) Consolidation of the public water systems is feasible.
(B) Consolidation of the public water systems is the best means to provide an
adequate supply of safe,potable water to the customers of those public water systems.
(b)If the state board requires the consolidation of public water systems pursuant
to this section, the state board shall provide financial assistance to the public water
system that is incorporating the other public water system,upon appropriation for this
purpose, as necessary to complete the consolidation of the public water systems. In
05/21/15 07:52 PM
57099 RN 15 15870 PAGE 3
implementing this section, the state board shall act consistent with the state board's
existing financial assistance guidelines and policies,
(c) If the state board requires the consolidation of public water systems pursuant
to this section and the public water system that is to be taken over is privately owned,
the State board shall compensate the owner or owners of the privately owned public
water system for the fair market value of that public water system, evaluated with
consideration for the inadequacies of the system,
- 0-
Yorba Linda
Water District
Independent,Reliable and Trusted
Service for More Than 100 Years
June 18, 2015
The Honorable Bob Huff
California State Senate
State Capitol
Sacramento, CA 95814
RE: Water System Consolidation Budget Trailer Bill 825—OPPOSE
Dear Senator Huff,
On behalf of the Board of Directors of Yorba Linda Water District (YLWD), I am writing to
respectfully oppose Budget Trailer Bill (TB) 825. YLWD is a public agency serving residents
of the City of Yorba Linda and portions of Placentia, Brea, Anaheim and areas of
unincorporated Orange County.
TB 825 would grant the State unprecedented unilateral power to take ownership and
operation of a water system from one entity and force it upon another. It does so with no
guarantee the State will cover the costs and no protections for existing ratepayers.
Furthermore, it strips away the right of self-determination for local residents who would be
forced into new agencies with no opportunity to vote.
This proposal represents a major change in law and public policy and yet is not being heard
through the regular policy committee process. Instead, this proposal is being rapidly moved
through the budget trailer bill process that does not provide adequate time for stakeholder
comment or public input.
Although framed as a response to the drought, the new State powers under TB 825 have
no sunset date and are in no way limited to the drought state of emergency. In addition, it
would do little to provide immediate relief to affected communities. Solutions already exist
for addressing water systems that fail to provide safe drinking water. The state has the
authority to exercise receivership in Health & Safety Code, Section 116665, and LAFCOs
can already remedy threats to health and safety through Government Code Section 56133.
Consolidation of essential local services, such as water systems, is a highly complex
endeavor with a multitude of long-lasting health, fiscal and legal consequences. III-
conceived alterations to this area of law could exacerbate, rather than resolve, the plight of
communities. For these reasons we respectfully request you reject TB 825.
Sincerely,
Ric Collett
Board President, Yorba Linda Water District
CC: Office of Governor Edmund G. Brown, Jr. (fax: 916-558-3160)
Catherine Freeman, Senate Budget and Fiscal Review Committee (fax: 916-668-
7004)
1717 E.Miraloma revenue Placentia,C 92874 714.701-3000 714-701-3058 Fax
Rocel Bettencourt, Senate Republican Caucus (fax: 916-445-3105)
Gabrielle Meindl, Assembly Budget Committee (fax: 916-319-2199)
Chris Holtz, Assembly Republican Caucus (fax: 916-319-3902)
California Special Districts Association (fax: 916-442-7889)
1717 E.Miraloma revenue Placentia,C 92874 714.701-3000 714-701-3058 Fax
Yorba Linda
Water District
Independent,Reliable and Trusted
Service for More Than 100 Years
June 18, 2015
The Honorable Ling Ling Chang
California State Assembly
State Capitol
Sacramento, CA 95814
RE: Water System Consolidation Budget Trailer Bill 825—OPPOSE
Dear Assembly Member Chang,
On behalf of the Board of Directors of Yorba Linda Water District (YLWD), I am writing to
respectfully oppose Budget Trailer Bill (TB) 825. YLWD is a public agency serving residents
of the City of Yorba Linda and portions of Placentia, Brea, Anaheim and areas of
unincorporated Orange County.
TB 825 would grant the State unprecedented unilateral power to take ownership and
operation of a water system from one entity and force it upon another. It does so with no
guarantee the State will cover the costs and no protections for existing ratepayers.
Furthermore, it strips away the right of self-determination for local residents who would be
forced into new agencies with no opportunity to vote.
This proposal represents a major change in law and public policy and yet is not being heard
through the regular policy committee process. Instead, this proposal is being rapidly moved
through the budget trailer bill process that does not provide adequate time for stakeholder
comment or public input.
Although framed as a response to the drought, the new State powers under TB 825 have
no sunset date and are in no way limited to the drought state of emergency. In addition, it
would do little to provide immediate relief to affected communities. Solutions already exist
for addressing water systems that fail to provide safe drinking water. The state has the
authority to exercise receivership in Health & Safety Code, Section 116665, and LAFCOs
can already remedy threats to health and safety through Government Code Section 56133.
Consolidation of essential local services, such as water systems, is a highly complex
endeavor with a multitude of long-lasting health, fiscal and legal consequences. III-
conceived alterations to this area of law could exacerbate, rather than resolve, the plight of
communities. For these reasons we respectfully request you reject TB 825.
Sincerely,
Ric Collett
Board President, Yorba Linda Water District
CC: Office of Governor Edmund G. Brown, Jr. (fax: 916-558-3160)
Catherine Freeman, Senate Budget and Fiscal Review Committee (fax: 916-668-
7004)
1717 E.Miral®rna Avenue Placentia,CA 92070 714-701-3000 714-701-3055 Fax
Rocel Bettencourt, Senate Republican Caucus (fax: 916-445-3105)
Gabrielle Meindl, Assembly Budget Committee (fax: 916-319-2199)
Chris Holtz, Assembly Republican Caucus (fax: 916-319-3902)
California Special Districts Association (fax: 916-442-7889)
1717 E.Miral®rna Avenue Placentia,CA 92070 714-701-3000 714-701-3055 Fax