HomeMy WebLinkAbout13. Legislative update Page 1 of 34
Item 13.
I
Central Contra Costa Sanitary District
September 7, 2017
TO: HONORABLE BOARD OF DIRECTORS
FROM: EMILY BARNETT, COMMUNICATION SERVICES AND
INTERGOVERNMENTAL RELATIONS MANAGER
SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERS AND PROVIDE
DIRECTION ON PRIORITY LEGISLATION.
The end of the State Legislative Session is rapidly approaching. Some key State Legislative dates as of
the writing of this memo include:
• September 1, 2017 - Last day for fiscal committees to meet and report bills to the Floor.
• September 5-15, 2017 - Floor session only.
• September 8, 2017 - Last day to amend on the Floor.
• September 15, 2017 - Last day for each house to pass bills. Recess begins.
• October 15, 2017 - Last day for Governor to sign or veto bills passed by the Legislature on
or before September 15, 2017.
• January 1, 2018 - Statutes take effect.
• January 3, 2018 - Legislature reconvenes.
n addition, after over a year of discussion, written and oral testimony, and Commission meetings, the Little
Hoover Commission has provided a final follow-up report on special districts, titled: Special Districts:
Improving Oversight& Transparency. A copy of the full 78-page report can be found here
http://www.lhc.ca.gov/sites/lhc.ca.gov/files/Reports/239/Report239.pdf. In the attachments are some
important items from the report that are most pertinent to Central San.
Attached is an updated priority legislative tracking sheet. (Attachment 1) In addition, the following
documents are attached for your information:
• Copy of highlights of the Final Little Hoover Commission report on Special Districts dated August
30, 2017. (Attachment 2)
• District Request for Signature Letter sent to Governor in support of AB 979 (Lackey), of which the
Board took action to support on April 20, 2017. (Attachment 3)
C
September 7, 2017 Regular Board Meeting Agenda Packet- Page 169 of 294
Page 2 of 34
Roger S. Bailey Kenton L.Alm
General Manager District Counsel
Strategic Plan Tie-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
ATTACHMENTS:
1. Central San 2017-2018 Priority Legislative Tracking Sheet as of 8/31/17
2. Final Little Hoover Commission Report on Special District Excerpts
3. Request for Signature Letter sent to the Governor in Support of AB 979 (Lackey)
September 7, 2017 Regular Board Meeting Agenda Packet- Page 170 of 294
Page 3 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
Federal/ Also Known Industry Industry Position Date of Board
Author Leqislation Summary Imanization(s) Priority Organization(s) Recommended by Board o
0 State As List/Position Position Staff DirectionL kb,=m Decision
1 State Asm. Lackey AB 979 Would simplify the process of adding special Co-sponsored by CASA-Watch Close Support 4/20/2017 Support 8/21/17 Read third time. Passed out of Senate
districts representation on county lafco's California Special on 38-1 vote. To enrollment. Passed 7/11/17 In
through a simple vote at the county's Districts Association Senate. Read second time. To third reading.
independent special districts selection (CSDA) and CALAFCO. 6/21/17 Passed out of Senate Committee on
committee Governance and Finance on 7-0 vote and sent to
Senate Appropriations Committee. 5/22/17
Passed out of Assembly(Ayes Asm. Grayson,
Baker) and sent to Senate for approval. 5/16/17
BM McGill and staff met via CSDA Leg Days with
Asm. Quirk& Sen. Glazer staff to express District
support for bill. 5/17/17 District staff met with
Senator Glazer, Asm. Baker, and Asm Grayson
staff to express Central San support for bill. Staff
5/10/17 Passed out of Local Gov't Committee,
5/1/17 Re-referred to Asm Committee on Local
Government 4/17/17 Re-referred to Asm Local
Govt Committee. Priority bill for CSDA. Requested
District support letter to author.
2 State Asm. Quirk AB 574 Direct Potable Requires the state board to establish a Sponsored by Support 4/20/2017 Support 8/21/17 In Senate Appropriations: To Suspense
Reuse framework for regulation of potable reuse WaterReuse, CASA RIP 7/19/17 Re-referred to Senate Appropriations.
Framework projects by 6/2018 and adoption of uniform priority bill 7/12/2017 Read in Senate for second time. Re-
water recycling criteria for potable reuse referred to Senate Natural Resources and Water
through raw water augmentation by 12/2021. Comm. 7/5/17 passed out of Senate Enviro Comm
on 7-0 vote to Natural Resources Comm.
6/21/17 Passed out of Senate Enviro Quality
Comm on 6-0 vote. 6/20/17 In Senate
Environmental Quality Committee with
amendment to add uniform water criteria by end of
2022 not 2021. 5/22/17 Passed out of Assembly
(Ayes Asm. Grayson, Baker) and sent to Senate
for approval. 5/16/17 BM McGill and staff met via
CSDA Leg Days with Asm. Quirk staff to thank
them for authoring AB 574. 5/17/17 District staff
met with Senator Glazer, Asm. Baker, and Asm
Grayson staffs to express Central San support for
bill. Staff 5/10/17 Passed out of Local Gov't
Committee, 5/3/17 referred to Asm Appropriations
suspense file. 4/26/17 Passed out of committee to
Asm Appropriations. 4/19/17 Re-referred to Asm.
Water, Parks and Wildlife Committee.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 171 of 294
Page 4 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
3 State Committee on AB 1441 Hazardous Would support the State's future change of Support 4/20/2017 Support 9/1/17 Hearing set in Senate Appropriations may
Environmental Waste the Federal Hazardous Waste (HW) not be heard. 7/10/17 Senate Appropriations held
Safety and Toxic electronic manifesting (similar to a chain of custody) in Suspense file. 6/21/17 Passed out of Senate
Materials -Asm. tracking process from paper to electronic (e-Manifest) Enviro Quality Comm and sent to Appropriations
Quirk, Dahle, when the system comes online. This would on 6-0 vote. 5/17/17 District staff met with Asm.
Arambula, add efficiency, improve tracking of HW Baker, and Asm Grayson staff to express Central
Garcia, Gomez, movement, and increase safety for HW San support for bill. 5/10/17 referred to Comm on
Holden transportation and proper disposal. Environmental Quality. 5/1/17 Passed out of
Assembly. 3/21/17 passed out of Asm.
Environmental Safety and Toxic Materials
Committee on 6/0/1 vote to send to Appropriations
Committee. Would change process of handling for
HHWCF and associated vendors
4 State Sen. Lara SB 258 Cleaning SB 258 requires cleaning products Sponsored by: Breast Support: American Support 4/20/2017 Support 8/31/17 In Assembly. Read Second time. To Third
Products Right manufactured or sold in the State to disclose Cancer Fund, Sustainable Business Reading. 8/30/17 Passed out of Appropriations
to Know Act of on the product label and website, among Environmental Working Council, Californians for Comm on 10-4 vote. 8/23/17 In Asm read second
2017 other information, a list of each ingredient Group, &Women's a Healthy & Green time and re-referred to Appropriations Comm.
and contaminant of concern contained in the Voices for the Earth Economy (CHANGE) 7/13/17 In Assembly read second time, amended
product as well as an image that Coalition, Clean Water and re-referred to Appropriations Comm. 7/5/17
communicates the potential health impacts of Action, Center for Passed in Hearing set for Asm Labor and
toxic chemicals. 7/13/17 amendments now Environmental Health, Employment Comm on 5-1 vote to Environ Safety
allow for disclosure on label or product Consumer Federation of and Toxic Materials Committee. 7/11/17 Asm
website and that a generic name for the California, Seventh Enviro Safety and Toxic Materials Comm. 5/30/17
ingredient can be used to protect proprietary Generation, &The Passed out of Senate to Assembly with Urgency
ingredients from disclosure. Honest Company. clause (22 Ayes - 15 Noes, Sen. Dodd/Glazer no
Oppose -American votes), 5/17/17 District staff met with Asm. Baker,
Chemistry Council, and Asm Grayson staff to express Central San
California Chamber of support for bill. 5/15/17 Set for hearing in Senate
Commerce. Appropriations Comm. Set for hearing on 4/26/17
at the Senate Labor and Industrial Relations
Committee. 3/15/2017 - Support requested by City
_Z C+_._ r____:__ _ ft 1 _fl_11_ n/An Inn A-
5 Federal FY 2018 Interior, National Ensures critical wastewater research is Water Environment& Support 4/20/2017 Supp This bill text merged with a similar ominibus bill.
Environment Priorities funded that will continue to meet the needs of Reuse Foundation 3/14/17 District sent support letter to
and Related Water local agencies charged with meeting federal (Support) Senate/Congressional members within service
Agencies Research mandates area
Appropriations grant program
bill
September 7, 2017 Regular Board Meeting Agenda Packet- Page 172 of 294
Page 5 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
6 State Sen De Leon SB 100 100% Clean Bill would change the California Renewables PG&E - upposea, CASA- Support if Support 5/18/2017 Support 4130/17 In Assembly Appropriations: To Suspense
Energy Portfolio Standard Program goal under the California Independent Amended, American rile. 7/18/17 In Assembly. Read second time and
Measure PUC to achieve 50% renewable resources Petroleum Association - Council on Renewable amended. Re-referred to Appropriations Comm.
target by 2026, achieve 60% by 2030, and for Opposed Energy- Support, 350 7/13/17 Passed out of Natural Resources Comm
all electricity sold at retail to be generated by Sacramento - Support on 7-0 vote. 7/12/17 Passed out of Asm Utilities
eligible renewable energy resources by 2045. 8minutenergy and Energy Comm on 10-4 vote. 7/5/17 Not heard:
Would authorize the PUC to establish a Renewables- Support Hearing set for Asm Utilities and Energy Comm.
requirement that gas sellers, procure a California Wind Energy 5/31/17 Passed out of Senate to Assembly(25
minimum percentage of biomethane or Association- Support Ayes- 13 Noes Glazer/Dodd in favor). 5/26/17
renewable gas, from sources that reduce Clean Energy Fuels, if Author agreed to remove all the renewable gas
emissions of short-lived climate pollutants in amended related provisions from bill, including the
the state. The bill would require gas First Solar- Support definitions of biogas and biomethane, and the
corporations to deliver biomethane or Large-Scale Solar addition of"organic byproducts of anaerobic
renewable gas from producers to the pipeline
Association- Support digestion". 5/17/17 Staff discussed with Sanitation
system. Thus hall..,ouId revise the rlof;ni+;en �,f
,� h;ew, i.+ ,.,,,, Id definition
;�e the Solar Energy Industries Districts of LA County details/background of the
biogas an�rtethane,`R; revise Association- Support bill. 5/11/17 Waiting on new amendments to post
GIP-fiemanagement.,urposes. e on F GeFtawn Westlands Solar Park- then will go to Appropriations Comm, 5/9/17
wastgas
r-.- I .+efi.,;fi.,., .,OW n I, ,+es "the- Support Passed out of Sen Energy, Utilities and
nenGOrnb scion thermal G of the Communications Comm, 5/1/17 Amended to
include CASA comments. Gut and Amend
6/26/17 amendments remove requirements to
replace diesel trucks with zero emission
vehicles. Changed terminology from "eligible
renewable energy resources"to"zero-carbon
resources"
7 State Sen. Hertzberg SB 231 Stormwater Existing law, the Proposition 218 Omnibus CASA-Cautiously None 5/18/2017 Support 6/15/17 In Asm for third reading (no new info).
financing - Implementation Act, prescribes specific Support (sent support 5/22/17 Referred to Local Gov't Comm. *Howard
expanded procedures and parameters for local letter) Jarvis has committed to take legal action if this is
definition of jurisdictions to comply with Articles XIII C and approved. 5/5/17 Kent Alm concerned about
"sewer" XIII D of the California Constitution and unintended consequences from the bill that will
defines terms for these purposes. emerge over time that will effect the wastewater
This bill would define the term "sewer"for industry in the long term. This is a transparent
these purposes. The bill would also make attempt to expand the use of"sewer" in Prop 218
findings and declarations relating to the to allow funding of stormwater activities without a
definition of the term "sewer"for these formal voter approval. 5/5/17 Author requested
purposes. This bill attempts to reverse the CASA support. 4/27/17 Held in Assembly- may be
existing court decisions that limit the use referred to Sen. Local Gov't Committee.
of the term "sewer" in Prop 218 to limit to
"sanitary sewers" and excludes "storm
sewers".
September 7, 2017 Regular Board Meeting Agenda Packet- Page 173 of 294
Page 6 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
8 State Asm. Jones- AB 1250 Counties and Beginning 1/1/18, this bill would establish CASA- Disapprove, Oppose 6/1/2017 Oppose 8/21/17 Hearing set in Senate Appropriations: To
Sawyer Cities: specific standards for the use of personal League of Cities- Suspense File. 7/19/17 Re-referred to Senate
contracts for services contracts by counties atee and Oppose, Oppose- Appropriations. 7/12/17 Passed out of Senate
personal would require the county orgy to: 1. clearly Howard Jarvis Governance and Finance Committee on 4-2 vote
services demonstrate that the proposed contract will Taxpayers Association, now headed to Senate Rules Comm. 6/21/17 Bill
result in actual overall costs savings to the California Ambulance changes included removal of cities and is now in
county or e4y-, 2. show that the contract does Association, California Senate Governance and Finance Comm. 5/31/17
not cause the displacement of county GF GitjF Building Industry Asm 3rd Reading - may not come up till 6/1/17.
workers, 3. requires county or Got to conduct Association, California 5/30/17 Major amendments but still has following
a cost-benefit analysis prior to entering into the Chamber of Commerce, issues, 1. requires contractors absorb the cost for
contract, 4. requires the prospective California Fire Chiefs analysis on public benefit which could increase
contractors to reimburse the cost of the Association, California costs for District contractors and District projects,
analysis, 5. requires later audit of the contract Police Chiefs 2. Does not define which type of contracts are
to determine whether cost savings have been Association, California affected, 3. Would require the District to collect the
realized 6. requires the contractor to State Association of Name/Title/Salary of every contractor and provide
reimburse the cost of the audit, 7. imposes Counties it under PRA request. 5/10/17 - Currently on
additional disclosure requirements for
contracts exceeding $5,000,000 annually, 8. suspense file in Asm. Appropriations Comm. -
requires each county er-sit�to maintain on its likely will go no further 4/24/17 passed out of Asm
Internet Web site a searchable database of all Comm on Public Employees, Retirement, and
of its contracts exceeding $5,000,000. Social Security to Asm Appropriations Committee.
9 State Asm. Rubio AB 869 Sustainable This bill would require the State Water Resources ACWA- Support, CCWD Neutral 7/6/2017 Neutral 8/24 From Committee, sent to Senate Read
water use and Control Board to adopt long-term standards for - Support, would like Second time and re-referred to Comm on Natural
demand urban water conservation and water use by May more clarity on ReW Resources and Water. 7/3/17 In Senate read
reduction: 20, 2021 and conduct necessary studies and exemptions, second time and amended and re-referred to
recommend standards for indoor residential use
recycled water WaterReuse-expressed Senate Natural Resources and Water Comm.
and outdoor irrigation use for adoption by the concerns about language 6/27/17 Passed out of Senate Natural Resources
board and update after 2026. The bill would changes and Water Comm. 6/27/17 M. LaBella reviewed
require the board to adopt performance
measures for commercial, industrial, and amendments and recommends District support as
institutional water use to produce measurable it is what is needed to protect recycled water from
water use efficiency improvements by May 20, being subject to conservation targets. 6/26/17
2021. The bill, after 2026,would require the CCWD now in support position. 5/30/17 Passed
board to consider updating the long-term out of Assembly. 5/15/17 Major amendments in
standards for urban water conservation and the Asm. Appropriations Comm. Re-referred to the
water use and the commercial, industrial, and Asm Appropriations Comm.
institutional performance measures. This bill
would state the intent of the Legislature in
enacting this measure to, among other things,
encourage continued investment in water
reuse as a means to increase water supply
reliability and diversification within the state.
The bill would state that water conservation
does not include curtailment of use of
recycled water.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 174 of 294
Page 7 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
10 State Asm. Caballero AB 1223 Construction Current law imposes specified requirements CASA- Disapprove Oppose 7/6/2017 Oppose 8/22/17 In Senate: Read second time. To third
contract on state and local agenGies regarding reading. 8/21/17 Senate Appropriations: Tn
payments: payment of construction contracts. This bill second reading without further hearing. 7/11/17
Internet Web would require, within 24-10-days of making a Passed out of Senate Gov'tl Organization Comm
site posting construction contract payment for a contract on 13-0 vote and sent to Appropriations Comm.
over$25K , a state OF 10Ga' Gy to post on 5/30/17 Senate 1st Reading. 5/30/17 Passed out
its Internet Web site the project for which the of Assembly. 4/19/17 re-referred to Asm Local
payment was made, the name of the Govt Committee. 3-31-17 Staff reviewing recent 3-
construction contractor or company paid, the 27-17 amendments. 4-5-17 Re-referred to
date the payment was made, the payment Committee on Local Government.
application number or other identifying
information, and the amount of the payment.
11 State Asm. Bonta AB 1479 Supervisor of This bill would require public agencies to CASA- Oppose CSDA- neutral, League Oppose 7/6/2017 8/21/17 In Senate Appropriations: To Suspense
Records: Fines designate a person or office to act as the (6/29/17) of Cities - Oppose, File. 7/19/17 CSDA changes position from Oppose
agency's custodian of records who is Orange County to Neutral because removes requirement for
responsible for responding to any California Sanitation Agency- single PRA request designee and removes
Public Records Act request. The bill would Oppose, Sanitation litigation language. 7/18/17 In Senate. Read
also authorize a court that finds and agency Agencies of Los Angeles second time. 7/11/17 Passed out of Senate
failed to respond to a PRA would be County- Oppose Judiciary Comm on 6-1 vote and sent to Senate
assessed a penalty between $1,000-$5,000. (6/28/17), City Clerks Appropriations. 7/3/17 Amendments offered no
Association of California - change in fines. 6/29/17 Recent amendments
Oppose have sparked a surge of opposition today from
CASA, the League, City Clerks Association, and
large sanitation agencies. Central San already
complies with the legislation therefore an
unfunded state mandate and imposed fines seems
excessive.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 175 of 294
Page 8 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
12 Federal Rep. McNerney H.R. 2799 Western Amends the Reclamation Wastewater and Sponsored by Western Support 7/6/2017 Support 9/1/17- no new changes. 6/16/27 In House
Cosponsors: Water Groundwater Study and Facilities Act to authorize Recycled Water Coalition Committee on Natural Resources: Referred to
Huffman, Speier, Recycling 22 recycled water projects at a 25%federal cost Subcommittee on Water, Power and Oceans.
Garamendi, Drought Relief share to include: 1. Benicia Water Reuse Project Introduced 6/7/17. Should Board approve will
Swallwell Act ($6.75M),2. Brentwood Recycled Water Project
($5.2M),3. Central Dublin Recycled Water request Desaulier cosponsor. Working with Jayne
Distribution and Retrofit Project($1.15M),4. Central Strommer of Delta Diablo to coordinate call with
Redwood City Recycled Water Project($7.5M), 5. Desaulnier DC staff.
City of Pleasanton Recycled Water Project($5.OM), Two Central San projects totaling $7.25M are in
6.Concord Recycled Water Project($1.0M),7. the legislation.
Contra Costa County Refinery Recycled Water
Project Phase 1 ($6.25M),8. Delta Diablo
Recycled Water System Expansion Project
($12.5M), 9. Dublin and San Ramon Recycled
Water Expansion Project($6.3M), 10. Hayward
Recycled Water Project($3.0M), 11. Ironhouse
Sanitary District Cypress Recycled Water Project
($5.OM), 12. Ironhouse Sanitary District Industrial
Recycled Water Project($3.5M), 13. Ironhouse
Sanitary District Direct Potable Reuse Project
($10.OM), 14. Mountain View Recycled Water
System Expansion ($5.OM), 15. North Valley
Regional Recycled Water Project($5.OM), 16. Palo
Alto Recycled Water Pipeline Project($8.25M), 17.
Pure Water Monterey A Groundwater
Replenishment Project($7.5M), 18.San Jose Water
Company Recycled Water Project($6.OM), 19.
Sunnyvale Continuous Recycled Water Production
Project($.5M),20.Waikoloa Beach Resort
Wastewater Reclamation Facility Expansion Project
($3.0M),21.West Bay Sanitary District Recycled
Water Project($5.OM), 22.Wolfe Road Recycled
Water Proiect($4.375M).23.
13 Federal Rep. McNerney H.R. (still in Water and Provides drought relief through innovation, Western Recycled Water Support 7/6/2017 Support Omnibus bill. Great marker bill for upcoming
discussion draft Energy increased water supply and regional Coalition - Support infrastructure debate.Author working to introduce on
form) Sustainability adaptation and self-sufficiency. Watersmart week of 6/19/17. Key points of bill: amends new$50M
through reauthorization over four years to include: DPR USBR grant program by providing reimbursements for
Technology research and regulations within two years of prior costs(WRWC requested language)
Act bill passage, $40M for stormwater • Reauthorizes CWSRF at$213 FY18, $2.413 FY19.
management grants, $60M for groundwater Instead of$100M increments over 5 years,they rolled
management grants, $60M for groundwater all the money into 2 years.
recharge grants, $150M for community water -At least 20%of CWSRF funds will go to green
enhancement grants, $40M water system projects, including RW projects.
mitigation and (climate change) adaptation • Exempts from the private activity bond cap, bonds for
grants, $50M for WaterSense program, $225M water infrastructure projects(including RW)in areas of
for state residential water efficiency incentives drought or disaster.
program, funds study to detect leaks in • Establishes within DOE various programs focusing on
transmission pipelines and aqueducts. the nexus between energy and water. Energy needed
to reuse water is included in the definition of the nexus.
Additional $4.413 for Improving Green Provides national water-energy nexus database,
Infrastructure and Community Water Systems technologies and a small smart energy-water efficiency
SRF including "use of reclaimed and recycled pilot program.
water, and investment in pipes used for • Requires USGS to conduct annual consumptive water
purposes of transporting recycled water". use survey, including recycled water.
•Authorizes funding for EPA to conduct research for
potable reuse regulations.
• Establishes within EPA a water system mitigation and
adaptation grant program, $10M/year for FY 18-FY22,
50% Federal share. Grants to increase water systems'
resilience to climate change.
• Reauthorizes Safe Drinking Water Act at$1.213 for
FY18 and FY19.
September , 2017 Regular Board Meeting Agenda Packet- Page 176 of 2 4
Page 9 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
14 Federal Rep. DeFazio (D- H.R. 2510 Water Quality Omnibus water with SRF funding over four Support 7/6/2017 Support 9/1/17 no new information. 5/19/17 In House
OR) Cosponsors Protection and years including $20B for CWSRF, $375M for Committee on Transportation and Infrastructure:
(27) including Job Creation Alternative Water Source Program, and Referred to Subcommittee on Water Resources
Rep. DeSaulnier Act of 2017 numerous other funding programs. and Environment. 5/18/17 Introduced. DeFazio is
ranking Democrat on infrastructure Committee.
15 Federal Rep. Gibbs (R- H.R. 465 Water Quality This bill amends the Federal Water Pollution Support 7/6/2017 Support 9/1/17 no new information. CASA/NACWA hoping
OH) Improvement Control Act (commonly known as the Clean to get NPDES permit term extension language in
Act of 2017 Water Act) by requiring the Environmental this bill (5 years to 10 years). 1/13/17 In House
Protection Agency(EPA)to establish an Committee on Transportation and Infrastructure:
integrated planning and permitting process for Referred to Subcommittee on Water Resources
municipal wastewater and stormwater and Environment. 1/12/17 Introduced.
management that: 1. enables municipalities to
identify the most cost-effective and protective
approaches to comply with the Act's
requirements; 2. helps them prioritize their
investments in addressing the requirements;
and 3. is comprehensive and flexible. The EPA
must provide technical assistance to the
municipalities or states for developing an
integrated plan upon request. The EPA must:
(1) update its financial capability assessment
guidance entitled, "Combined Sewer Overflows-
-Guidance for Financial Capability Assessment
and Schedule Development," and dated
February 1997; and (2) ensure that the
guidance may be used for assessing the
financial capability of municipalities to
implement effluent limitations and other
pollution control measures.
16 Federal Rep. Hunter(R- H.R. 2693 Citizen Suit Bill would limit attorney fees and penalties in CASA- Watch Close Watch 9/1/17 no new information. 5/26/17 In House
CA-So. Cal), CA Reform citizen suits, and bring the Clean Water Act in Comm on Transportation and Infrastructure:
Cosponsors line with other similar Acts on citizen suits. Referred to Subcommittee on Water Resources
Rep. McClintock Would require litigations fees to be reasonable and the Environment. Republican sponsored bill.
and Rep. Calvert including prevailing market rates for the area of Not moving through Congress. CASA feels it is too
the violation, and may not exceed amount of early to send support letters on this legislation.
monetary penalties awarded. In addition, no
liability under this Act with evidence that
damages were due to an act of God, war, third
party(if exercised due care and took
precautions against foreseeable acts.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 177 of 294
Page 10 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
17 State Asm. Gloria AB 967 Requires a specified bureau to license and CASA-Working with Watch 8/22/17 In Senate. Read second time. To third
regulate hydrolysis facilities. Enacts Author, neutral reading. 8/21/17 Passed out of Senate
requirements applicable to hydrolysis Appropriations on 5-1 vote 7/13/17 In Senate.
facilities substantially similar to those Read second time . Re-referred to Appropriations.
applicable to crematoria. Requires a local 6/26/17 Passed out of Senate Business,
registrar of births or deaths to issue permits Professions and Econ. Dev Comm to Environ
for the disposition of hydrolyzed remains. Quality Comm. 5/31/17 Asm 3rd Reading Item
273. 5/10/17 Minor changes made in committee.
4/25/17 Baker/Grayson Ayes to pass out of Asm
Business and Professions Comm to
Appropriations, 4/19/17 Re-referred to Asm.
Business and Professions Committee. Complex
18 State Sen. SB 229 Accessory Would prohibit a special district from CASA-Working with Watch 8/24/17 In Assembly. Read second time. To third
Wiechowski Dwelling Units considering an accessory dwelling unit a new Author reading. 8/23/17 Passed out of Asm
"clean up" residential use for purposes of calculating Appropriations on 15-0 vote. 7/12/17 Passed out
connection fees or capacity charges for of Asm Local Gov't Comm on 9-0 vote to
utilities. It would also extend the applicability Appropriations. 6/28/17 Hearing set for Asm
of the above prohibition to special districts. Housing and Community Development Comm.
5/23/17 Asm read first time. 5/11/17 Sen 3rd
reading, 5/22/17 Passed out of Senate. 5/2/17
Sen 2nd readina. 4/18/17 2nd readina. Re-referred
19 State Sen. Monning SB 623 COMBINED SIMILAR BILLS: Safe and ACWA- Opposed, CASA Watch 8/23/17 In Assembly Appropriations: To Suspense
Affordable Drinking Water Fund & Safe -Watch File. 7/11/17 Passed out of Asm Enviro Safety and
Drinking Water Spot Bills (Public Goods Toxic Materials Comm to Appropriations Comm on
Charge). Measure provides data to State a 5-1 vote. 5/30/17 Passed from Senate to Asm
Legislature on drinking water quality for (37 Ayes-0 Noes). 5/15/17 Sen Appropriations
disadvantaged communities. Response to Hearing date, 4/26/17 Referred to Senate
Flint, Michigan. Appropriations Comm. 3/30/17 Re-referred to
Sanata Fnyirnnmantn1 C)i in ity (-nmmittaa
20 State Sen. Hertzberg SB 778 ACWA-Opposed, CASA Watch 8/23/17 In Assembly Appropriations: To Suspense
-Watch File. 7/13/17 In Assembly. Read Second time and
re-referred to Appropriations. 7/11/17 Hearing set
in Asm Enviro Safety and Toxic Materials Comm.
5/31/17 Passed out of Senate to Asm. 5/31/17
Senate 3rd Reading. 5/15/17 Sen Appropriations
Hearing date, 4/26/17 Referred to Senate
Appropriations Comm, 4/5/17 Re-referred to
Senate Environmental Quality Committee
September 7, 2017 Regular Board Meeting Agenda Packet- Page 178 of 294
Page 11 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
21 State Asm. Ting AB 958 Perfluoroalkyl Would prohibit a food provider from serving, Co-sponsored by Clean CASA-Approve Watch 8/21/17 Hearing set in Senate Appropriations: Not
and selling, offering for sale, or offering for Water Action hea-1 7/17/17 In Senate Read second time and
polyfluoroalkyl promotional purposes prepared food or fast amended. Re-referred to Appropriations Comm.
substances in food in, on, or with take-out food service 7/5/17 Passed out of Senate Environmental
food ware or packaging that contains a fluorinated Quality Comm on 5-2 vote. 6/21/17 Quirk now a
packaging chemical, as defined. Because the bill would coauthor. Amendments now change language
create a new crime, it would impose a state- from "fluorinated chemicals" to a eliminating
mandated local program. 7/17/17 New "perfluoroalkyl and polyfluoroalkyl substances" in
amendments will allow greater time to collect food packaging by 1/1/20. 5/31/17 Asm 3rd
sufficient data and complete the evaluation Reading. 5/10/17 Referred to Asm Appropriations
and regulatory process. Add specificity to Suspense File. 4/26/17 Passed out of Asm Enviro
what the Dept of Toxic Substances must do Safety and Toxic Materials Committee to
by 1/1/19 including: gaining data, adding Appropriations. Based on two studies: Danish
package containing perfluoroalkyl or Study
polyfluoroalkyl substances in the 2018-20 http://www2.mst.dk/Udgiv/publicati
Priority Product Work Plan, post findings on ons/2015/05/978-87-93352-15-
the website, post regulatory process for food 5.pdf
packaging containing these substances, Boston University Fact Sheet:
verify that packaging containing these http://www.bu.edu/sph/files/2016/1
substances should be considered after data 2/Updated-PFAS-Factsheet-
collection. Drinking-Water.pdf California Stormwater Quality
Association (CASQA) has also been approached
to support
22 State Asm. Dal)awen Political Would require every local government This bill is dead. 5/26/17 In Appropriations.
Reform Act of agency that maintains an Internet Web site to Committee: Held under submission. 5/3/17
1974: local prominently post on its Internet Web site, as Referred to Asm Appropriations Suspense file, 4-5-
government specified, a notice of any upcoming election 17 referred to Committee on Local Government
agency notices in which voters will vote on a tax measure or
proposed bond issuance of the agency. The
bill would also require every local
government agency that publishes an
electronic newsletter to include the notice in
the electronic newsletter. By imposing new
duties on local government agencies, the bill
would impose a state-mandated local
program.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 179 of 294
Page 12 of 34
Central San 2017-18 Priority Legislative Tracking Sheet
as of 8/31/2017
23 State Sen. Canella SB 496 Design Existing law allows the public agency to require CASA- Disapprove Watch 4/28/17 Chaptered (deal struck with Governor as
Professional defense under an indemnity agreement, (possibly oppose) final vote for SB 1 Transportation bill), 4/18/17
Indemnity including the duty and the cost to defend, are First Reading in Asm. 4/12/17 Coalition letter
unenforceable, except for claims that arise out provided by CASA for a Public Works Association
of, pertain to, or relate to the negligence, Coalition that CASA may sign on behalf of
recklessness, or willful misconduct of the wastewater agencies. (Provided to Board in
design professional. Existing law provides that packet for 4/20/17 meeting)
all contracts and all solicitation documents
between a public agency and a design
professional are deemed to incorporate these
provisions by reference. This bill would instead
make these provisions applicable to all
contracts for design professional services
entered into on or after January 1, 2018. The
bill would prohibit the cost to defend charged
to the design professional from exceeding the
design professional's proportionate percentage
of fault, except that in the event that one or
more defendants is unable to pay its share of
defense costs due to bankruptcy or dissolution
of the business, the bill would require the
design professional to meet and confer with
other parties regarding unpaid defense costs.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 180 of 294
Page 13 of 34
EM
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Special Districts:
Improving oversight & Transparency
Report #239, August 2017
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Milton Marks Commission on California State Government Organization and Economy
September 7, 2017 Regular Board Meeting Agenda Packet- Page 181 of 294
Page 14 of 34
Executive Summary
Special districts,the workhorses of public service what they pay in taxes to sustain them. The Commission
delivery created by the California Legislature during the nearly two decades ago questioned the soundness of
earliest days of statehood, represent the most common special districts'financial management and asked if their
form of local government.They have prevailed through numbers might be pared back through consolidations.
endless upheaval as California morphed from a state of Yet Commissioners also acknowledged in their 2000
rural open spaces into one of the world's most powerful analysis that special districts provide Californians valuable
economic engines and home to nearly 40 million people. services and are"physically closest to their communities."
Today special districts generate some$21 billion in annual The Commission concluded that despite its range of
revenues and employ'more than 90,000 local government criticisms,special districts should remain, in the end, local
workers.' institutions best served by local decision-making.
In 2016 and 2017,the Little Hoover Commission In its newest review the Commission heard from some
reviewed and analyzed California's 2,071 independent who still contend that special districts are ripe for
special districts and the State of California's role and consolidation and represent convoluted,dispersed,
responsibility in overseeing the M.2 The Legislature not under-the-radar government. Frustrated with the local
only created special districts and enacted the practice oversight process,various local special district issues
acts by which they are governed, but it retained the percolated up into bills in the 2015-16 legislative session
power to create new districts and also to dissolve as the Commission began its study, potentially signifying
them. In the early 1960s,the Legislature had the that the current system of oversight fails to work as well
foresight to develop a local oversight mechanism, Local as intended.
Agency Formation Commissions (LAFCOs)tasked with
bringing more rational planning practices and reining in In this review,the Commission found special districts
inappropriate growth by considering local government themselves could do a better job of telling their own
boundary decisions. LAFCOs have the authority to story to overcome the stigma that they function as
initiate dissolutions and consolidations of special hidden government. During an advisory committee
districts,although ultimately local voters have the final meeting, Chair Pedro Nava encouraged special districts to
say. The process is slow--intentionally slow according "tell your story." There are very few government entities
to some--and occasionally frustrated parties attempt in a position to let people know that they work directly
to bypass the local process by taking issues directly to for the public and that the taxes and fees they collect
the Legislature. This tension, in part, prompted the fund local services, he said.
Commission to update its 2000 review of special districts
to consider whether the local oversight process works as In testimony,the Commission also learned that despite
intended or whether a different process or a greater role the perception that special districts continue to
for the Legislature would be more effective. proliferate in California,the number of special districts
has declined 5 percent since 1997,while the number
The Commission's review broke new ground, but also nationally increased by 10 percent.' Thirty-three states
revisited issues first identified in its May 2000 report, have more special districts per capita than California.
Special Districts:Relics of the Past or Resources for the Despite frequent calls for dissolving or consolidating
Future? The 2000 report declared that California's these local governments,special districts seem to have
expansive special district sector often amounted to a pluses that render them tolerable to those they govern
poorly overseen and largely invisible governing sector and able to forestall movements to purge them or fold
serving residents who-know little about who runs them or their work into city and county governments.
Executive Summary 1 5
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The Commission's 2016-2017 review delved into four Clearly,special districts can be improved.Given the
primary arenas concerning special districts: routine front-line services they provide,the historic
climate challenges these districts face in keeping California
■ Oversight of special districts,specifically, stable,as well as the need to provide the best possible
opportunities to bolster the effectiveness of Local healthcare to millions of residents,LAFCOs and the state
Agency Formation Commissions(LAFCOs). have obligations to see that they succeed.To that end,
■ The continued need for districts to improve the Commission offers 20 recommendations to guide the
transparency and public engagement. Legislature and Governor going forward.The first eight of
those recommendations address the basic structure and
■ The frequently-controversial evolution of governing issues revolving around special districts:
California's healthcare special districts,which in
the 1940s and 1950s built a far-ranging system Recommendation 1:The Legislature and the Governor
of hospitals that are mostly now gone due to a should curtail a growing practice of enacting bills to
tremendous transformation in healthcare from override LAFCO deliberative processes and decide
hospitalization to preventive care. local issues regarding special district boundaries and
operations.
■ The urgency of climate change adaptation in
California and the front-line roles that special The Legislature and Governor have reason to be frustrated
districts, particularly water,wastewater treatment with slow and deliberative LAFCO processes. But these
and flood control districts, play in preparing their are local institutions of city,county and special district
communities and defending them from harm. members often better attuned to local politics than those
in the State Capitol. Exemptions where the Legislature
gets involved should be few,and in special cases where the
Toward Higher-Quality Local Control local governing elites are so intransigent or negligent—or
so beholden to entrenched power structures—that some
As in 2000,the Commission held fast to the concept that higher form of political authority is necessary.
special districts are essentially local institutions. Whether
their individual endeavors are praised or panned,special Recommendation 2:The Legislature should provide one-
districts seemingly reflect the wishes of local voters. time grant funding to pay for specified LAFCO activities,
They also reflect the politics of LAFCOs, unique oversight to incentivize LAFCOs or smaller special districts to
bodies in each county with authority to judge their develop and implement dissolution or consolidation
performances and recommend whether they should plans with timelines for expected outcomes. Funding
continue to exist. The Commission again determined should be tied to process completion and results,
that LAFCOs should be the leading voice on the status of including enforcement authority for corrective action
special districts in California—and that they need more and consolidation.
tools to do the job well.
The Commission rarely recommends additional funding
Commissioners perplexed by the seemingly slow progress as a solution. However,a small one-time infusion of$1
in dissolutions and consolidations at one point during million to$3 million in grant funding potentially could
the study asked if a lack of money prevented LAFCOs save California taxpayers additional money if it leads to
and special districts from initiating consolidations or streamlined local government and improved efficiency in
conducting the mandated Municipal Service Reviews service delivery. This funding could provide an incentive
that can identify opportunities for improved efficiency for LAFCOs or smaller districts to start a dissolution or
in service delivery. A chorus of stakeholders suggested consolidation process. Participants in the Commission's
a small, one-time infusion of grant funding,tied to public process suggested the Strategic Growth Council or
specified outcomes to ultimately improve efficiency and Department of Conservation could administer this one-
save taxpayer dollars,was indeed warranted. They also time funding.
called for various statutory changes that could bolster the
effectiveness of LAFCOs.
6 1 Little Hoover Commission
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Recommendation 3:The Legislature should enact individual LAFCO members are expected to exercise their
and the Governor should sign SB 448(Wieckowski) independent judgment on LAFCO issues rather than simply
which would provide LAFCOs the statutory authority represent the interests of their appointing authority. But
to conduct reviews of inactive districts and to dissolve this is easier said than done when representatives serve
them without the action being subject to protest and a on an at-will basis.The CALAFCO hearing witness said
costly election process. unpopular votes have resulted in LAFCO board members
being removed from their positions. Fixed terms would
There has been no formal review to determine the number allow voting members to more freely exercise the
of inactive special districts—those that hold no meetings appropriate independence in decision-making.
and conduct no public business. Rough estimates gauge
the number to be in the dozens. Simplifying the LAFCOs' Recommendation 6:The Legislature should convene an
legal dissolution process would represent a significant step advisory committee to review the protest process for
toward trimming district rolls in California. The Commission consolidations and dissolutions of special districts and to
supports SB 448 and encourages the Legislature to enact the develop legislation to simplify and create consistency in
measure and for the Governor to sign the bill. the process.
Recommendation 4:The Governor should sign AB Complicated and inconsistent processes potentially
979(Lackey),co-sponsored by the California Special impact a LAFCO's ability to initiate a dissolution or
Districts Association and the California Association of consolidation of a district. If 10 percent of district
Local Agency Formation Commissions. The bill would constituents protest a LAFCO's proposed special district
strengthen LAFCOs by easing a process to add special consolidation,a public vote is required. If a special district
district representatives to the 28 county LAFCOs where initiates the consolidation,then a public vote is required
districts have no voice. if 25 percent of the affected constituents protest.
Additionally,the LAFCO must pay for all costs for studies
The Cortese-Knox-Hertzberg Reorganization Act of 2000 and elections if it initiates a consolidation proposal,
(AB 2838, Hertzberg) provided the option to add two whereas the district pays these costs if it proposes or
special district members to county LAFCOs to broaden requests the consolidation. Various participants in the
local governing perspectives. Nearly two decades later, Commission's public process cautioned against setting
30 counties have special district representatives on their yet another arbitrary threshold and advised the issue
LAFCOs alongside city council members and county warranted further study before proposing legislative
supervisors. This change provides LAFCOs a more diverse changes. They called for more consistency in the process.
decision-making foundation and stronger finances. But
28 counties, mostly in rural California have not added Recommendation 7.The Legislature should require
special district representatives to their LAFCO governing every special district to have a published policy for
boards, citing scarce resources. Presently, a majority of a reserve funds,including the size and purpose of reserves
county's special districts must pass individual resolutions and how they are invested
within one year supporting a change. This has repeatedly
proved itself a formidable obstacle to broadening the The Commission heard a great deal about the need for
outlook of local LAFCOs. AB 979(Lackey)would allow a adequate reserves, particularly from special districts with
simple one-time election process where districts could large infrastructure investments. The Commission also
easily—and simultaneously—decide the question. heard concerns that reserves were too large. To better
articulate the need for and the size of reserves,special
Recommendation 5:The Legislature should adopt districts should adopt policies for reserve funds and make
legislation to give LAFCO members fixed terms, to ease these policies easily available to the public.
political pressures in controversial votes and enhance
the independence of LAFCOs. Recommendation 8:The State Controller's Office should
standardize definitions of special district financial
The California Association of Local Agency Formation reserves for state reporting purposes.
Commissions(CALAFCO)testified on August 25,2016,that
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Presently, it is difficult to assess actual reserve levels held Recommendation 9:The Legislature should require that
by districts that define their numbers one way and the every special district have a website.
State Controller's Office which defines them another way.
The State Controller's Office is working to standardize Key components should include:
numbers following a year-long consultation with a task
force of cities,counties and special districts. To improve • Name,location,contact information
transparency on reserves, a subject that still eludes . Services provided
effective public scrutiny,they should push this project to
the finish line as a high priority. ■ Governance structure of the district,including
election information and the process for
Improving Transparency and Public constituents to run for board positions
Involvement • Compensation details—total staff
compensation,including salary,pensions and
Because there are thousands of special districts in California, benefits, or a link to this information on the
performing tasks as varied as managing water supply to State Controller's website
managing rural cemeteries,the public has little practical ■ Budget(including annual revenues and the
ability to ascertain the functionality of special districts, sources of such revenues,including without
including the scope of services these local districts provide, limitation,fees,property taxes and other
their funding sources,the use of such funds and their assessments,bond debt,expenditures and
governance structure. Although publicly elected boards reserve amounts)
manage independent special districts,constituents lack
adequate resources to identify their local districts much less ■ Reserve fund policy
the board members who collect and spend their money.
■ Geographic area served
The Commission saw a number of opportunities for special
districts to do a better job communicating with the public, Most recent Municipal Service Review
primarily through improvements to district websites and ■ Most recent annual financial report provided
more clearly articulating financing policies,including to the State Controller's Office,or a link to this
adopting and making publicly available fund reserve information on the State Controller's website
policies. Existing law requires special districts with a website
to post meeting agendas and to post or provide links to ■ Link to the Local Agency Formation Commission
compensation reports and financial transaction reports that and any state agency providing oversight
are required to be submitted to the State Controller's Office.
The State Controller's Office—despite having a software Exemptions should be considered for districts that fall
platform from the late 1990s—attempts to make all the under a determined size based on revenue and/or number
information it receives as accessible as possible. of employees. For districts in geographic locations without
reliable Internet access,this same information should be
Many special districts already utilize their websites to available at the local library or other public building open
effectively communicate with their constituents and and accessible to the public, until reliable Internet access
voluntarily follow the nonprofit Special District Leadership becomes available statewide.
Foundation's transparency guidelines and receive the
foundation's District Transparency Certificate of Excellence. Building on this recommendation,every LAFCO should
But often,these districts are the exception and not the have a website that includes a list and links to all of the
rule. The Commission makes three recommendations to public agencies within each county service area and a copy
improve special district transparency and to better engage of all of the most current Municipal Service Reviews. Many
the public served by the districts: LAFCOs currently provide this information and some go
further by providing data on revenues from property taxes
8 1 Little Hoover Commission
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and user fees,debt service and fund balance changes for which emphasizes preventative care over hospitalization.
all the local governments within the service area. At a Amid uncertainty about the future of the Affordable Care
minimum,a link to each agency would enable the public to Act, many of these districts claim they are carving out
better understand the local oversight authority of LAFCOs new roles in preventative care. Yet the Legislature, local
and who to contact when a problem arises. grand juries, LAFCOs and healthcare analysts continue
to question their relevance and need to exist. Presently,
Recommendation 10:The State Controller's Office just 37 of 79 California healthcare districts operate 39
should disaggregate information provided by hospitals, mostly in rural areas with few competitors or
independent special districts from dependent districts, other alternatives—and few suggest the need to dissolve
nonprofits and joint powers authorities. those districts.
Over the course of this study,the Commission utilized Controversy tends to afflict districts in former rural areas
data available on the State Controller's website to that became suburbanized in recent decades and grew into
attempt to draw general conclusions about independent competitive healthcare markets. The 2015-16 legislative
special districts,such as overall revenues, number of session included a rash of legislation that considered
employees and employee compensation. Presently, it is whether to force district dissolutions or modify district
difficult to do this without assistance as information for boundaries—even though those decisions are the
independent districts is mixed with various other entities. responsibility of LAFCOs. Nonetheless, most healthcare
districts officials continue to maintain they are more
Recommendation 11: The California Special Districts flexible than counties in defining priorities and are
Association, working with experts in public outreach pioneering a new era of preventative care under the
and engagement,should develop best practices for umbrella of"wellness." Officials say their districts are
independent special district outreach to the public on misunderstood by critics who lack understanding about
opportunities to serve on boards. how much the healthcare landscape is changing. They
also say that local voters generally support their local
The Commission heard anecdotally that the public does missions and how they allocate their share of property
not understand special district governance, does not taxes in the community.
often participate or attend special district board meetings
and often does not know enough about candidates As part of its special districts review,the Commission
running to fill board positions. Often,the public fails to convened a two-hour advisory committee with experts
cast a vote for down-ballot races.Two county registrars to shed light on healthcare districts. During the
provided the Commission information that showed in course of the Commission's study,the Association of
many instances those who voted for federal or statewide Healthcare Districts convened a workgroup to develop
offices did not vote for local government officials at the recommendations, in part, in response to legislative
same rate,whether they were city council positions, scrutiny. These recommendations were considered and
special district positions or local school or community discussed during the November advisory committee
college district positions. meeting. Participants analyzed whether counties or
healthcare districts are best positioned as local and
regional healthcare providers and discussed the role of
What is the Role for Healthcare Districts? LAFCOs in consolidating, dissolving or steering healthcare
districts toward more relevant roles. During the meeting
The Commission found in its review that special districts Commissioners also pushed districts to share and adopt
were as diverse as the services provided and the best practices and define better metrics to measure what
millions of Californians served. To gain deeper insight they are accomplishing with their shares of local property
on one type of local government service provider,the taxes. Three Commission recommendations arose from
Commission took a closer look at an often-controversial the discussion as well as numerous interviews with
group:healthcare districts that no longer operate experts during the study:
hospitals. These entities struggle to explain their
-relevance within the rapidly evolving healthcare industry,
Executive Summary 1 9
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Recommendation 12: The Legislature should update How are they assessing future climate change impacts
the 1945 legislative "practice acts"that enabled voters when amassing reserves for long-range infrastructure
to create local hospital districts,renamed healthcare spending? That question, rooted in the Commission's
districts in the early 1990s. 2014 climate adaptation report Governing California
Through Climate Change, became the genesis of a deeper
Experts widely agree that statutory language in the acts exploration of awareness of and preparations for climate
no longer reflects the evolution of healthcare during the change among special districts. In an October 27,2016,
past seventy years,particularly the shift from hospital- hearing focused on special districts efforts to adapt to
based healthcare to modern preventive care models. climate change,the Commission learned that:
Recommendation 13:The Legislature, which has been Special districts, even while vastly outnumbering
increasingly inclined to override local LAFCO processes cities and counties in California, have
and authority to press changes on healthcare districts, generally not participated at the levels of
should defer these decisions to LAFCOs. cities and counties in the state's emerging
climate adaptation information gathering and
LAFCOs have shown successes in shaping the healthcare strategizing. Often that is because they lack land-
district landscape and should be the primary driver of use authority. Nonetheless, it is critical that their
change. Given the controversies over healthcare districts, experienced voices be at the table.
the California Association of Local Agency Formation
Commissions and LAFCOs should be at the forefront of Many larger infrastructure-intensive water,
studying the relevance of healthcare districts,potential wastewater and flood control districts stand
consolidations and dissolutions of districts. To repeat a at the forefront nationally in preparing for
theme of Recommendation 1,the Legislature should retain the varying,changing precipitation patterns—
its authority to dissolve healthcare districts or modify too much or too little water—at the heart of
boundaries, but this authority should be limited to cases in anticipated climate change impacts.
which local political elites are so intransigent or negligent—
or so beholden to local power structures—that some form The Commission found it encouraging that many special
of higher political authority is deemed necessary. districts are reducing the need for imported water by
diversifying supplies and producing vastly more recycled
Recommendation 14:The Association of California water. Districts also are steering more stormwater runoff
Healthcare Districts and its member districts should in wet years into groundwater recharge basins for use in
step up efforts to define and share best practices among dry years. The actions that all agencies must eventually
themselves. take are already being done by some. The Commission
agreed that these leading-edge actions and infrastructure
A Commission advisory committee meeting discussion spending strategies represent models for other districts
clearly showed that not enough thought or interest to follow. Accordingly,the Commission makes six
has been assigned to sharing what works best in rural, recommendations focused on climate change adaptation:
suburban and urban areas among members. The
association should formally survey its members and Recommendation 15. The Legislature should place a
collectively define their leading best practices and models requirement that special districts with infrastructure subject
for healthcare, as well as guidelines to improve the to the effects of climate change should formally consider
impacts of grantmaking in communities. long-term needs for adaptation in capital infrastructure
plans,master plans and other relevant documents.
Front-line Roles for Climate Change Adaptation Most special districts, especially the legions of small
districts throughout California, have their hands full
At the Commission's August 25,2016,hearing,Chair Pedro meeting their daily responsibilities. Many have few
Nava asked a simple question of special district attendees resources and little staff time to consider long-range
vigorously defending their need for robust reserve funds: issues,particularly those with the heavy uncertainty of
10 1 Little Hoover Commission
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climate change adaptation. Making climate change a spills into public waterways.The Oakland-based East Bay
consideration in developing capital infrastructure plans Municipal Utility District has instituted an ordinance that
and other relevant planning documents would formally requires property owners to have their private sewer
and legally elevate issues of adaptation and mitigation, laterals inspected if they buy or sell a property, build
especially for districts where immediate concerns make it or remodel or increase the size of their water meter. If
too easy to disregard the future. the lateral is found to be leaking or damaged, it must
be repaired or replaced. The state should consider
Recommendation 16: The California Special Districts implementing this policy statewide.
Association(CSDA),in conjunction with its member
districts,should document and share climate adaptation Recommendation 18: State regulatory agencies should
experiences with the Integrated Climate Adaptation explore the beginnings of a new regulatoryframework
and Resilience Program's adaptation information that incorporates adaptable baselines when defining a
clearinghouse being established within the Governor's status quo as climate impacts mount.
Office of Planning and Research(OPR).Similarly, CSDA
and member districts should step up engagement With climate change what has happened historically will
in the state's current Fourth Assessment of climate often be of little help in guiding regulatory actions. State
threats,a state research project designed to support the regulations designed to preserve geographical or natural
implementation of local adaptation activities. The CSDA conditions that are no longer possible or no longer
also should promote climate adaptation information exist already are creating problems for special districts.
sharing among its members to help districts with fewer Wastewater agencies,for example,face conflicting
resources plan for climate impacts and take actions. regulations as they divert more wastewater flows to
water recycling for human needs and less to streams
The OPR clearinghouse promises to be the definitive historically home to wildlife that may or may not continue
source of climate adaptation planning information to live there as the climate changes. While it is not easy
for local governments throughout California. At the for regulators to work with moving targets or baselines,
Commission's October 27, 2016, hearing, an OPR climate change is an entirely new kind of status quo that
representative invited more district participation in requires an entirely new approach to regulation.
state climate adaptation processes. It is critical that
special districts and their associations assume a larger Recommendation 19. The California Special Districts
participatory role—both within state government and Association,and special districts,as some of the closest-
among their memberships—to expand the knowledge to-the-ground local governments in California,should step
base for local governments statewide. up public engagement on climate adaptation,and inform
and support people and businesses to take actions that
Recommendation 17. The state should conduct a increase their individual and community-wide defenses.
study—by either a university or an appropriate state
department—to assess the effect of requiring real estate Special districts are uniquely suited to communicate
transactions to trigger an inspection of sewer lines on with and help prepare millions of Californians for the
the property and require repairs if broken. impacts of climate change. Nearly all have public
affairs representatives increasingly skilled at reaching
The responsibility to safeguard California and adequately residents through newsletters,social media and public
adapt to climate change impacts falls on every resident forums. District staff grapple constantly with new ways
of California. This begins at home with maintenance and to increase their visibility. Many will find they can build
upgrading of aging sewer laterals. Requiring inspections powerful new levels of public trust by helping to prepare
and repairs during individual property transactions is their communities for the uncertainty ahead.
an optimum way to slowly rebuild a region's collective
wastewater infrastructure in the face of climate change. Recommendation 20: The California Special Districts
At the community level, repairs will help prevent Association and special districts should lead efforts
excess stormwater during major climate events from to seek and form regional partnerships to maximize
overwhelming wastewater systems and triggering sewage climate adaptation resources and benefits.
Executive Summary 1 11
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Water,wastewater and flood control districts are already
bringing numerous agencies to the table to pool money,
brainpower and resources for big regional projects. The
East Bay Municipal Utility District has arrangements
with many Bay Area and Central Valley water agencies
to identify and steer water to where it is most needed
for routine demands and emergencies alike. The
Metropolitan Water District and Sanitation Districts of
Los Angeles County also increasingly pool their joint
resources to steer more recycled water to groundwater
recharge basins for dry years. Likewise,the Santa Clara
Valley Water district and other state and federal agencies
are collectively planning and funding 18 miles of levees to
protect the region from sea level rise.These partnerships
among special districts and other government agencies
clearly hint at what will be increasingly necessary as
climate impacts begin to mount.
12 1 Littre Hoover Commission
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The following pages 56-66 are excerpts
from the LHC Report that discuss
wastewater related issues
Crop Swap. In late 2016 the Rancho California Water acres of land surrounding the reservoir. The purchase
District unveiled a program to pay farmers up to$15,000 allowed the district to remove legal restrictions that
per acre to replace thirsty avocado crops with less water- previously maintained a fixed lake level for boating and
intensive wine grapes,thanks to a $2 million grant from recreation. Mr.Armstrong told the Commission, "When
the Department of Water Resources and$1 million from we acquired the land,that removed the recreational
the U.S. Bureau of Reclamation.The district estimates rights. It allows us to use the full capacity of that lake
it will save nearly 4,000 acre-feet of water in the next and reservoir for water supply purposes,and we've done
decade, enough to meet demands of nearly 8,000 that during the drought. We really reduced the amount
householdS.60 of water in that lake.... In terms of climate change,where
we're hearing about longer periods without rain followed
Additional water storage options. In 2010,the district by periods of greater rainfall, it really gives us opportunity
built a$10 million pipeline to buy untreated water in to take advantage of that climate change because we can
wet years and channel it into its Lake Vail reservoir for draw the capacity down and then when the bigger events
additional supply in dry years. Four years later,the happen we can fill the reservoir back up."
district spent$55 million in reserve funds to buy 7,500
How Other Districts are Preparing for Significant Climate Impacts
• The Los Angeles-based Metropolitan Water District invested$450 million to pay customers to remove lawns
and replace them with drought-resilient landscaping.
• The Eastern Municipal Water District in Perris, Riverside County,reuses 100 percent of its wastewater
through investments in recycled water. Recycled wastewater represents more than a third of the district's
water supplies and supports agriculture,commercial and industrial uses,as well as irrigation for public parks
and outdoor spaces. The district also incentivized customers to remove four million square feet of turf and
replace it with drought-proof landscaping.
• The San Diego Water Authority is raising the San Vincente Dam to create 100,000 acre-feet(32 billion
gallons)of new storage capacity and reduce dependence on imported water. It also is constructing the
Carlsbad Desalinization Project to provide an extra 56,000 acre-feet(18 billion gallons)of usable water
annually.
• The Santa Rosa-based Sonoma County Water Agency invested$843,000 in a comprehensive climate
vulnerability assessment to identify climate change risks and develop adaptation options for its water supply,
flood control and sanitation facilities.
• The Soquel Creek Water District in Capitola,Santa Cruz County,is,developing a groundwater model
to simulate climate change scenarios in preparation to spend up to$70 million on an advanced water
purification project for groundwater recharge.
Sources: Wendy Ridderbusch.Director of State Relations.Association of Califomia Water Agencies.Sacramento,CA.September 13,2016.Personal
communication.Also,Paul D.Jones II,General Manager,and Deborah S.Chemey,Deputy General Manager.November 14,2016,letter to Little Hoover
Commission Chair Pedro Nava.
56 1 Little Hoover Commission
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its mountain water westward from the Pardee and
"Water agencies engaging in climate change Camanche reservoirs via three above-ground aqueducts
planning must think carefully and thoughtfully across the Central Valley into the East Bay. But EBMUD,
about the right combination of funding to achieve too, is diversifying its water sources as high-country
a stable and reliable financing portfolio. Just as winter snowpack dwindles and climate uncertainty
a family household puts money away in a savings looms. Alexander R. Coate, district general manager,
account to purchase a new automatic dishwasher testified to the Commission about several major
when the old one breaks down,a water agency initiatives to broaden supplies. The district,which in
will set aside funds in a designated reserve fund written testimony,called itself"a water industry leader in
for a specific project. For instance,a water storage addressing climate change," has, indeed,set a lesson for
project, which could cost hundreds of millions of special districts statewide by preparing a formal climate
change vulnerability assessment of risks to its system and
dollars to complete,from the initial feasibility customers. Among initiatives described in testimony:
studies all the way to completion. The funding
is responsibly and separately saved for future Diversifying. In 2010,the East Bay Municipal Utility
use. In addition to utilizing reserves to help District opened—with its partnering agency,the
build water infrastructure the ability to maintain Sacramento County Water Agency—the$1 billion
reasonable reserves is a critical factor in providing Freeport Regional Water Project south of downtown
reliable service,mitigating rate increases and Sacramento to divert supplies from the American and
supporting an agency's overall financial strength. Sacramento rivers during dry years. The project is
Reserve levels directly affect an agency's bond the culmination of a 40-year district legal strategy to
rating,and ultimately,its ability to access debt gain rights to additional Central Valley Project water
markets at favorable interest rates,ensuring the to supplement its Sierra Nevada supplies. Mr. Coate
ability to finance and construct the infrastructure told Commissioners the river water supplied up to
necessary to renew existing systems and expand approximately one-half the drinking water in its East Bay
service levels to meet future needs. And while region in 2015.
our member agencies rely upon several different
sources of state and federal income to augment Conservation."Conservation is a way of life.We've been
conserving for decades,"Mr. Coate told the Commission.
these infrastructure funds, the reality is that the "California's known for its droughts and we've embraced
majority of funding of water in California is derived that approach. In 2005,2006 and 2007,we were selling
from the water districts themselves." 200 million gallons of water per day.That's the same
amount of water we were selling in the early 1970s,except
Wendy Ridderbusch, Director of State Relations. we had 30 percent more people that we're providing it
Association of California Water Agencies.Testimony to. And since 2005,2006 and 2007,our customers have
at October 27,2016, hearing. conserved and conserved again. We're the only business
that is out there trying to get people to use less of their
product. It's a very unique business model.The last year of
the drought,just a year ago,our customers were using 128
The East Bay Municipal Utility District(Alameda millions of gallons per day,"he said.
County)
Regional partnerships: Mr. Coate also described to
Unlike the Rancho California Water District with its the Commission the Bay Area Regional Water Supply
rich natural underground reservoir,the Oakland-based Reliability partnership,which aims for collective readiness
East Bay Municipal Utility District(EBMUD)serves 1.4 for climate impacts. "We're also very focused on
million customers in Alameda and Contra Costa counties partnerships,on leveraging those,"he said. "They work
with almost no groundwater basins. The water district well,and in the Bay Area right now we're are partnering
instead taps the Mokelumne River in the central Sierra with a total of eight water agencies that represent six
Nevada for 90 percent of its supply.The district leads million customers on a regional reliability study and using
Readying California for Climate Change 1 57
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funding from the U.S. Bureau of Reclamation focused not
necessarily on building a lot of new facilities, but looking How East Bay Municipal Utilities District
at how we can interconnect and network our facilities and (EBMUD) is Vulnerable to Climate Change
make improvements within our facilities so that we can
share resources,both infrastructure resources and water "Changes in the timing,intensity,location
resources to improve the reliability for our customers:' and amount of precipitation could have
Mr. Coate testified: "That's particularly helpful for impacts on the reliability of EBMUD's
emergencies when somebody might be in need and water supply. Droughts may become more
another agency would be able to provide resources." frequent. In addition,storm tracks are
predicted to move northwards,which could
Mr. Coate urged the state to provide districts the decrease average precipitation for EBMUD."
flexibility to meet climate impacts, not with "one-size-fits- • An increase in temperature can lead to an
all mandates," but with their own individual and regional increase in customer demand for water.
approaches. "Flexibility allows us to come up with Forested areas within the district could
approaches where we can figure it out.We have been lead to increased water demand for fire
for decades.We were very prepared for this drought;' he suppression.
said, "and able to have no impact to the economy and
still keep our customers with water." • Higher average water temperatures in
district reservoirs in the Sierra Nevada could
Mr. Coate,asked for recommendations the Commission require more water to maintain a cool pool
might make to the state,also noted,"We really can use for fish.
additional information, research information. We have • More intense storms and wildfires near
an understanding that climate change is happening, but district reservoirs could increase sediment
the error bars on the models are pretty big. So we're and nutrient levels in water storage areas,
working in, kind of using a sensitivity analysis approach. requiring more treatment.
It's like putting brackets around things. But research • Water shortages and drought may lead to
could narrow that and help us understand what's going to more frequent and severe water rationing.
happen in our region, more specifically so.
• Costs may increase to bring in supplemental
supplies or develop still more projects to
diversify supplies.
"We're the only business that is out there trying to
get customers to use less of their product." What the District is Doing About it
Alexander R.Coate.General Manager, East Bay • Planning to adjust its water supply portfolio
Municipal District,addressing the Commission as impacts of climate change manifest.
October 27,2016. • Identifying a wide range of supplemental
supply, recycled water and conservation
projects.
The Wastewater World Already is • Incorporating climate change considerations
Complicated; Now Comes Climate Change into all master plans.
• Collaborating with other agencies to assess
Nonstop, behind the scenes of California's daily living,66 vulnerabilities and adaptation strategies.
independent special districts and 37 dependent county Source:East Bay Municipal Utility District. Urban Water
districts collect billions of gallons of wastewater and Management Plan 2015. 'Appendix J:Climate Change Vulnerability
treat it for re-use or disposal into rivers, bays and the Assessment:' Pages JIAS.Oakland,CA. file:///C:/Users/wasserjd/
Pacific Ocean. Sanitation district managers,overseeing Downloads/UWMP-2015-_BOOK-FINALweb secure%20(1).pdf.
vast expanses of costly infrastructure—miles of small Accessed September 28,2016.
58 1 Littre Hoover Commission
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lateral pipelines leading to bigger trunk lines leading Commission's October 27,2016, hearing,stated:
to regional pumping stations and treatment plants—
widely expect their agencies to "experience the first "During and after heavy storms, rain
significant infrastructure impacts of climate change"with and groundwater enter underground
all the attendant costs and regulatory challenges—as sewer pipes through cracks, increasing
one district manager testified in 2013 to the Assembly the volume of water in the system, and
Select Committee on Sea Level Rise and the California eventually causing overflows. This is
Economy.61 One national estimate suggests"the total called"infiltration and inflow"and is a
estimated cost of wastewater agencies to adapt to climate common occurrence in cities across the
change in the U.S.is between $123 billion and$252 country with older infrastructure. Climate
billion above existing wastewater system infrastructure change is expected to impact the level of
upgrade, renewal and replacement programs."62 infiltration and inflow via the frequency
and magnitude of more extreme wet
At the October 27, 2016, hearing,the Commission weather storm events and rising
learned about the formidable wastewater treatment groundwater levels due to sea level rise."
complexities inherent within a central expectation of
climate change—long periods of too little water mixed The concern is reasonable. After a 2013 superstorm in
with short explosive bursts of too much water. Detroit, 110 million gallons of raw sewage flowed into the
Detroit River,overwhelming the city's aging sanitation
system.63 St. Petersburg's similar issues were noted
The East Bay Municipal Utilities District earlier in this chapter.California has its own problems:
(Wastewater Division) 250,000 gallons of untreated wastewater entered the
Los Angeles River and polluted the Pacific Ocean when a
Mr.Coate,who also oversees collection and treatment of spring 2011 storm dumped up to 10 inches of rain over
wastewater for 680,000 customers,said his chief climate parts of Los Angeles region.64
adaptation concerns are the forecasts for powerful Pacific
storms and precipitation deluges that get into wastewater Mr. Coate also testified about a unique adaptive response
systems,overwhelm them and cause untreated discharges to these concerns in his district's service area,which may
into the ocean. Mr.Coate,in written testimony for the be worth considering in some form in other regions with
pre-1950s development patterns:
Wastewater Facilities Will Be Hardest Hit by Climate Change
"Wastewater treatment facilities will be among the hardest hit by climate change, in part because treatment plants
are generally located at the low point in each watershed to make efficient use of gravity for conveyance purposes.
This means that in coastal areas, wastewater facilities are often located along the coast or within an estuary and
have ocean or bay outfalls with a direct hydraulic connection to their facility. Inland facilities also typically have
geographically low-lying plants and outfalls within river valleys and floodplain. As the sea level rises—an expected
0.6 to 1.4 meters for the California coast—and storm surges increase in coastal areas,facility outfall elevations
may need to be increased or may require pumping in order to discharge. Inundation of facilities,including higher
coastal groundwater levels causes more inflow of brackish or salty water that, in turn, requires higher volumes or
treatment levels and makes water recycling more energy intensive. Increased inland flooding events will put critical
infrastructure and service at risk of failure."
Jessica Gauger,Manager of Legislative Affairs.California Association of Sanitation Agencies.October 11,2016,letter to Commission'
Chair Pedro Nava.
Readying California for Climate Change 1 59
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Mandatory sewer lateral repairs at point of sale.On Organizationally, each of the 24 districts in this regional
November 28,2014,a regional private sewer lateral collaboration is an independent special district with
ordinance went into effect within EBMUD's wastewater their own ability to issue debt and set customer rates
service area, requiring inspections when a property is sold for their individual infrastructure needs. Collectively,as
or undergoing a remodel of more than$100,000,of private a regional super-district,they also finance, maintain and
lateral sewer lines that connect the property to the district operate a regional wastewater collection and treatment
system.When a sewer line needs repair,the buyer or system run by a single Whittier-based headquarters
seller—or both—must pay to have it fixed. Many of these staff. Individual districts each collect property taxes,
aging and broken pipes act as conduits for stormwater charge fees for wastewater services, keep a share of
to enter and overwhelm the district's treatment plant reserve funds—equal to six months of operations and
and spill partially-treated sewage into San Francisco Bay. maintenance expenses, plus one year of debt service—
The ordinance,in effect in Alameda,Albany, Emeryville, and are overseen by individual boards made up of mayors
Oakland, Piedmont, Kensington, EI Cerrito and Richmond of cities included in the district.
Annex,results from a 2009 order by the U.S. Environmental
Protection Agency and San Francisco Bay Regional Water
Quality Control Board to fix the district's older,cracked When Faraway Imported Water Runs Short
sewer lines.65 The City of Berkeley,since October 2006,
has implemented similar requirements for inspections and Mr. Friess told the Commission, "With regard to recycled
repairs as part of real estate transactions.66 water,the Sanitation Districts recycled water program
is of great importance to Southern California's efforts at
climate change adaptation. Recycled water is considered
Sanitation Districts of Los Angeles County a drought-proof local water supply because it is available
consistently,whether it rains or not,and helps make local
In Southern California, extended drought and water communities in Southern California more resilient to the
shortages have created the opposite problem for impacts of climate change on water supply." He further
sanitation district managers:too little water creates an testified, "Recycled water currently comprises 7.5 percent
additional, costly range of complexities for wastewater of Los Angeles County's overall water supply.And area
treatment. Nonetheless,years of drought also water managers are seeking to implement new water
has triggered a surge in recycled water production recycling projects to increase the amount of recycled
throughout Southern California,and is creating an water in the water supply,and I'll highlight two of those."
entirely new water supply to supplement imported
water. In testimony, Philip L. Friess, head of the technical Both highlighted projects involve.forward-looking
services department of the Sanitation Districts of Los regional partnerships of special districts,the kind that
Angeles County, a unique collaboration of 24 individual increasingly will be necessary to alleviate the impacts of
sanitation districts serving 78 cities and 5.5 million climate change in years and decades ahead:
people, described a wastewater agency and region
leading the nation in addressing key anticipated water- An end to imported water recharging groundwater
supply impacts of climate change. basins. The Sanitation Districts of Los Angeles County,
with more than a half century of recycling treated
wastewater for groundwater recharge, is partnering
"Today, the Sanitation Districts are one of the top on its newest recycled water project with the Water
producers of beneficially reused recycled water in Replenishment District of Southern California (WRD)and
California and the United States." the Los Angeles County Flood Control District. A$110
million Groundwater Reliability Improvement Project
Philip L. Friess,head of technical services facility, designed to produce an additional 19 million
department,Sanitation Districts of Los Angeles gallons of treated wastewater daily for groundwater
County, in written October 27,2016,testimony to the recharge, marks an historic shift in ending the use of
Commission. imported water for that purpose. Mr. Friess, in written
testimony to the Commission, cited remarks by the
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replenishment district's board chair,Willard H. Murray,Jr., Treated wastewater to inland groundwater basins,
at its 2016 groundbreaking. Mr. Murray, highlighting the not discharged to the ocean. Likewise,the Sanitation
momentous break with a distant water supply becoming Districts of Los Angeles County also is partnering with
increasingly unreliable as the climate changes,said: "The the Metropolitan Water District(MWD)on a proposed
Los Angeles region has a long and sometimes colorful water purification facility at the districts'Joint Water
history of importing water to quench our thirst. With this Pollution Control plant in Carson.The aim:to divert
project WRD will be turning a corner in our water history. up to 150 million gallons daily of wastewater currently
WRD's future will be built on water recycling, drought- discharged into the Pacific Ocean via 60 miles of pipeline
proofing our water supplies and ending our reliance on to groundwater recharge basins in Los Angeles and
imported water." Orange counties. "That's a$2.7 billion capital cost plant,"
Mr. Friess told the Commission at the October 2016
hearing. "The water it produces will be about$1,600 per
acre foot. And if that's approved (by the MWD board
How Climate Change Investments of directors)that would be about eight to 10 years in
Stimulate Job Creation the future." Mr. Friess added, "They have finished the
Climate change investments on the scale of$2.7 feasibility study.They are in design for a demonstration
billion and$110 million to reduce dependence on facility to kind of fine tune the design parameters. I think
imported water and increase use of recycled water the approval to move forward with the full-scale project
have more than conservation and environmental hopefully would occur next year(2017)."
ramifications;they are job and income generators.
These economic benefits largely stay in the region The Commission has learned that similar water reuse
and ripple outward to support businesses involved efforts are well underway in neighboring Orange County,
in construction,architecture,engineering,scientific where the Orange County Sanitation District and Orange
research and development services,reported a County Water District have jointly partnered since 2008
2011 study of Los Angeles-area projects by the Los on the Groundwater Replenishment System. The joint
Angeles-based Economic Roundtable. groundwater system produces enough new water for
The study, mindful of the region's"increasing nearly 850,000 residents in north and central Orange
pressure to reduce reliance on imported water by County and recharges 130 million gallons of water per
using what we have more efficiently,"sampled the day. It is described by the water district as"the world's
multiplier impacts of$1.2 billion in recent area largest project of its kind."67
water efficiency projects involving recycled water,
stormwater and groundwater management. The
study estimated that every$1 million invested Humans vs. Wildlife: The Regulatory
generated 12.6 to 16.6 year-long jobs depending
on the type of project. That compared with new Conflicts of Too Little Water
housing construction(11.3 jobs per$1 million
invested)and motion picture production(8.3 jobs As the use of recycled water grows exponentially in
per$1 million). years ahead,this trend,too,will be on a collision course
with climate change and extended periods of drought.
Study author and senior researcher Patrick Burns
stated,"Los Angeles needs to use the water it has Producing recycled water means districts discharge less
treated wastewater into streams and rivers—which
more efficiently,and a dividend from doing this is
that we will open doors for job seekers, including has an unintended consequence of altering the watery
young adults eager to gain skills in the emerging field habitats of sensitive species. For wastewater districts,
of water-use efficiency." extended drought sets up conflicting regulatory demands
from federal,state and regional government agencies
Source:The Economic Roundtable.December 6,2011.'Water over human needs for recycled water versus habitat's
Use Efficiency and lobs."Los Angeles,CA.https://economicrt.org/ need for instream flow. Explained Mr. Friess to the
publication/water-use-efficiency-and-jobs.Accessed December 28,
2016. Commission, "As aquatic species experience greater
stress,the need to maintain minimum flows to the
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streams to sustain them is garnering increased interest approximately 15 million people in all—are similarly
from the resource agencies. And these trends may exposed within 500-year floodplains. The department also
reduce the availability of recycled water that we can use reports that$575 billion worth of structures are exposed
for water supply purposes at the same time the drought within 500-year floodplains statewide—40 percent of
conditions are sharply increasing the demand for the them in Los Angeles,Orange and Santa Clara counties.70
recycled water."
Protecting them—and millions more people and
A new regulatory framework for adaptive management. buildings statewide—are flood control districts. Each
"One aspect we'd like to highlight is the need for the state has an immense responsibility to think ahead and limit
to explore how the regulatory framework for water quality flooding scenarios that could cripple the state's$2.6
and water quantity should adapt to climate change,as trillion economy and damage its global standing as a
well,"Mr. Friess testified to the Commission. "The issue is reliable trade partner. Typically,throughout California,
that the regulations to protect water quality and plants, flood control districts are dependent county districts
fish and wildlife are all based on preserving what is,or or divisions housed within departments of public
what was,at some point in time. However,it can be works overseen by county boards of supervisors. But
expected that even with reductions in greenhouse gas independent special districts also perform flood control
emissions,many of the impacts of climate change are operations. Representatives of two of these independent
going to occur anyway. Therefore the question that has to districts testified at the Commission's October 27, 2016,
be addressed,"said Mr. Friess,"is whether the status quo hearing about infrastructure investments to defend
can be preserved,whether an adaptive approach has to be their populations and regional economies from climate-
taken to resetting the baseline for what it is we're trying to induced superstorms and rising seas.
protect. This would require a new approach by regulatory
agencies,one that is very difficult,"he said. "But if we
don't move in this direction the danger is we're going to Fresno Metropolitan Flood Control District
spend a lot of resources trying to maintain the old normal,
even when that baseline is no longer tenable." In April 1956,following a series of destructive 1950s
floods,voters by a margin of 5-1 in the cities of Fresno
and Clovis,and the County of Fresno,established an
A Rising Ocean and 1,000-Year Storms: What independent regional flood control district to hold back
waters from the nearby Sierra foothills that frequently
Awaits Flood District Managers? inundated their flat, lowland geography. Two decades
later the 400-square-mile district added groundwater
As a coastal state, California faces the impacts of sea level recharge to its portfolio—a far-seeing move that gives it
rise and,according to widespread scientific consensus, unique advantage for the irregular precipitation trends
increasingly severe storms with potential to overwhelm which scientists consider a likely impact of climate
flood defenses. Prolonged historic rainstorms of the type change.
that poured more than 50 inches in and around Houston
as a result of Hurricane Harvey in August 201768—and
15 inches in 10 hours onto South Carolina in October 'Among the major floods our region has endured
2015(described as a 1,000-year storm)69—point to what are the floods of 1872, 1884, 1925,1937,1938,
California might face in years ahead. 1950,1955 and 1969. It is remarkable to consider
how much of our history has been shaped by the
A November 2013 Department of Water Resources(DWR) benefits and also the destructive power of water."
report, "California's Flood Future,"states that Orange,
San Mateo and Santa Clara counties have the largest Alan Hofmann,general manager,the Fresno
populations exposed within 100-year floodplains,those
areas that have a 1-in-100 1 percent) Metropolitan Flood Control District,in written
or
( p )probability
of flooding in any given year. In Los Angeles,Orange testimony for the Commission's October 27,2016,
and Santa Clara counties,60 percent of residents— hearing.
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The district,governed by six appointed representatives a changing climate may bring to California. "Fresno
of the cities and one representative from the county, gets its share of thunderstorms, high-magnitude short-
has used its property taxes(which account for 41 duration storms," Mr. Hofmann told the Commission. He
percent of revenue),71 bonding authority, developer stated in written testimony that the district,which still
fees,2006 Proposition 1E grants and other resources, sees localized flooding during those storms, has begun
including reserves,to build a system particularly resilient discussions"on the implementation of a higher capacity
to fluctuating rainfall and snowmelt. The district has standard for basins that could accommodate such a
constructed one of the few systems statewide that can standard to capture and store more stormwater."
simultaneously control flood water in wet years and steer
it to facilities to recharge its underground aquifer for One identified possible way to help finance an expansion,
drinking water supplies in dry years. in addition to district revenue, is the Proposition 1 water
bond passed by California voters in 2014, Mr. Hofmann
"I would note that our system recharges over 70 percent told the Commission.
of the rainfall that is captured within it"district general
manager Alan Hofmann told the Commission. "Most of
the times you would say, 'there's too much rain;and
the first thing you're looking at is'how can we get rid of "So what are we doing to deal with climate
it? We take a different approach to stormwater,to say, change or different stormwater patterns?We take
'there's too much,where else can we put it?" a different
approach because we've been doing
In written testimony,the district reported that"on this for years. This is our purpose(as a special
aearl district). We regularly look at rainfall patterns.
ayearly average,approximately 17,000 acre-feet of g
locally-generated stormwater runoff generated with We recognize that when we look at the historical
the urban drainage areas can be retained:'At 325,851 30-year averages, the average annual rainfall has
gallons per acre-foot,that is approximately 5.5 billion actually increased from nine inches back in the
gallons annually for an underground aquifer classified as 1960s to today about 11 or 11 and a half inches.
"high priority critical overdraft" by the 2014 Sustainable So we've continued to modify our design standards
Groundwater Management Act. The cities of Fresno in our ponding basins and in our collection systems
and Clovis also have rights to imported surface water for because that's our sole purpose. It's pretty easy
groundwater recharge. to do that and not be held back by bureaucracy or
political impediments. We can, what we say,get
Dual-purpose infrastructure for flood control and things done."
groundwater recharge. Mr. Hofmann said the district
collects Sierra Nevada snowmelt and rainwater in four Alan Hofmann,general manager,the Fresno
large detention basins in higher elevations of the foothills Metropolitan Flood Control District,testifying at the
and leads water to nearly 80 detention or"ponding" Commission's October 27,2016,hearing.
basins for groundwater recharge beneath the Fresno-
Clovis metropolitan area. Storm drains in the two
cities similarly steer water to neighborhood detention Santa Clara Valley Water District
basins,which are planted in grass and often also serve
as recreational facilities and soccer fields during the dry The Commission's 2014 Governing California Through
season. The groundwater recharge system, he said,was Climate Change report paid particular attention to
largely conceived and built in the pre-Propositions 13 and climate vulnerabilities in Santa Clara County,stating that
218 era,and would be difficult to replicate today with the many of"Silicon Valley's storied technology campuses
need for two-thirds votes for special taxes. risk inundation as water levels rise in San Francisco Bay."
The Commission report cited a December 20,2012,
The flood control district,though engineered to protect Scientific American article about the endangered county's
residents against a 200-year storm event,still doesn't sea level rise challenges that stated bluntly: "Facebook is
consider itself entirely safe from the historic storms that just one of the well-known companies in Silicon Valley's
Readying California for Climate Change 1 63
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technology mecca that will face the effects of climate take approximately three years to finish, Ms. Richardson
change in years ahead. Others located near the water told the Commission.That phase will bring protection to
here include Google,Yahoo!, Dell, Linkedln, Intuit, Intel, the north San Jose shoreline between Alviso Slough and
Cisco,Citrix and Oracle." Coyote Creek,an area of homes,tech companies and the
county's largest wastewater treatment plant, all about
The Santa Clara Valley Water District, which has 11 feet below sea level and considered most at risk to
responsibilities for flood control alongside its traditional sea level rise. The first-phase cost is$174 million,said
role of providing water to nearly two million of the Ms. Richardson,with the federal government paying 40
region's residents,stands on the front lines of keeping percent($71 million). The remaining 60 percent($103
San Francisco Bay from spilling into the below-sea- million) is funded jointly by the Santa Clara Valley Water
level offices of these companies,as well as the Bay District and the California Coastal Conservancy. Their
Area's largest wastewater treatment plant.71 At the 60 percent share includes$42 million for the levee and
Commission's hearing, Melanie Richardson,the water related structures,$58 million for wetlands restoration
district's interim chief operating officer—watersheds— and$3 million for recreation.
described an ambitious$850 million plan to get ahead
of climate-induced sea level rise well before it is too Santa Clara County property owners,as well as property
late. The district's plan, a first of its kind in the Bay owners throughout the nine-county Bay Area,also are
Area, provides an important example for special districts helping finance this massive sea level rise project,said
statewide in the power of partnerships to prepare and Ms. Richardson.A 2012 Santa Clara Valley Water District
build now for coming climate change impacts. parcel tax approved by more than two-thirds of county
taxpayers—the Safe Clean Water and Natural Flood
Multi-government partnerships for mega-projects. Protection Program,or Measure B—provided$15 million
The district, in partnership with the U.S.Army Corps for design and construction of the first phase, as well
of Engineers and California State Coastal Conservancy, as$5 million for studies of the remaining 14 miles. In
has begun a major levee-construction and wetlands addition, Measure AA,the$500 million, 20-year Clean
restoration program to protect populations and and Healthy Bay parcel tax passed by more than two
companies that represent a thriving key sector of the thirds of Bay Area voters in June 2016,will contribute$60
California and national economy. Collectively,the three million over time toward the entire 18-mile flood and sea
agencies aim to fortify 18 miles of the county's San level rise protection project, Ms. Richardson testified.
Francisco Bay shoreline against up to three feet of sea Ms. Richardson told the Commission that conversations
level rise for the next 50 years. are underway with the U.S.Army Corps of Engineers
regarding the next phases."Prior to starting the next phase
"Right now the entire Santa Clara County shoreline of the shoreline study in other economically impacted
is protected by salt pond levees that are not really areas,our district is out in front analyzing conditions in
engineered for flood protection,and therefore the entire the Palo Alto, Mountain View and Sunnyvale shorelines
coastline is vulnerable to not only the 100-year coastal to determine where the next piece that makes the most
flooding event, but to sea level rise," Ms. Richardson told economic sense should be worked on,"she testified.
the Commission. "The shoreline study(formally known
as the South San Francisco Bay Shoreline Study) is the When discussing the entire$850 million price tag to
first study of its kind in the Bay area to develop a specific protect the Silicon Valley region against an uncertain
plan to provide flood risk management in light of sea future, Ms. Richardson pointed to the financial power of
level rise in the bay." partnerships. "That's why it's so important for us to have
participation by our federal partners;'she said. "It's a very
Added Ms. Richardson, "The study is proceeding in phases expensive project for local entities to undertake alone."
because 18 miles of coastline is a lot to do all at once."
A first four-mile phase of levee construction and
restoration of 2,900 acres of tidal marsh habitat is
scheduled to begin construction as early as 2018 and
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RECOMMENDATIONS The OPR clearinghouse promises to be the definitive
source of climate adaptation planning information for local
Locally and regionally,special districts are clearly thinking governments throughout California. An OPR representative
about an uncertain future,whether they call it changing at the Commission's October 2017 hearing invited more
weather patterns or climate change. The dozen approaches district participation in state climate adaptation processes.
outlined show a handful of special districts getting ready for It is critical that special districts and their associations
what's coming and no doubt,their executives occasionally assume a larger participatory role—both within state
lie awake at night thinking about the many what if's that government and among their memberships—to expand the
accompany their responsibilities. These forward motions knowledge base for local governments statewide.
by California districts might,in some or even most cases,
be among the most advanced nationally for climate change Recommendation 17.The state should conduct a
adaptation. Yet,there is clearly more that trade associations study—by either a university or an appropriate state
for these districts—and also state government—can do department—to assess the effect of requiring real estate
to help and also to stay out of their way with regulatory transactions to trigger an inspection of sewer lines on
overreach. Among options considered by the Commission the property and require repairs if broken.
and recommended here:
Every California property owner has the responsibility
Recommendation IS: The Legislature should place a to adapt to climate change. This begins at home with
requirement that special districts with infrastructure maintenance and upgrading of aging sewer laterals.
subject to the effects of climate change should formally Requiring inspections and repairs during individual
consider long-term needs for adaptation in capital property transactions is an optimum way to slowly
infrastructure plans,master plans and other relevant rebuild a region's collective wastewater infrastructure
documents. in the face of climate change. At the community level,
repairs will help prevent excess stormwater during major
Most special districts,especially the legions of small climate events from overwhelming wastewater systems
districts throughout California, have their hands full and triggering sewage spills into public waterways.
meeting their daily responsibilities. Many have few
resources and little staff time to consider long-range The Oakland-based East Bay Municipal Utility District has
issues, particularly those with the heavy uncertainty of instituted an ordinance that requires property owners
climate change adaptation. Making climate change a key to have their private sewer laterals inspected if they buy
planning and operational consideration would formally or sell a property, build or remodel,or increase the size
and legally elevate issues of adaptation and mitigation, of their water meter. If the lateral is found to be leaking
especially for districts where immediate concerns make it or damaged, it must be repaired or replaced. The state
too easy to disregard the future. should consider implementing this policy statewide.
Recommendation 16: The California Special Districts Recommendation 18: State regulatory agencies should
Association(CSDA),in conjunction with its member explore the beginnings of a new regulatoryframework
districts,should document and share climate adaptation that incorporates adaptable baselines when defining a
experiences with the Integrated Climate Adaptation status quo as climate impacts mount.
and Resilience Program's adaptation information
clearinghouse being established within the Governor's With climate change what has happened historically will
Office of Planning and Research(OPR).Similarly, CSDA often be of little help in guiding regulatory actions. State
and member districts should step up engagement regulations designed to preserve geographical or natural
in the state's current Fourth Assessment of climate conditions that are no longer possible or no longer
threats, a state research project designed to support the exist already are creating problems for special districts.
implementation of local adaptation activities. The CSDA Wastewater agencies,for example,face conflicting
also should promote climate adaptation information regulations as they divert more wastewater flows to
sharing among its members to help districts with fewer water recycling for human needs and less to streams
resources plan for climate impacts and take actions. historically home to wildlife that may or may not cgntinue
Readying Califomia far Climate Change 1 65
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to live there as the climate changes. While it is not easy
for regulators to work with moving targets or baselines,
climate change is an entirely new kind of status quo that
requires an entirely new approach to regulation.
Recommendation 19: The California Special Districts
Association,and special districts, as some of the closest-
to-the-ground local governments in California,should
step up public engagement on climate adaptation,
and inform and support people and businesses to take
actions that increase their individual and community-
wide defenses.
Special districts are uniquely suited to communicate
with and help prepare millions of Californians for the
impacts of climate change. Nearly all have public
affairs representatives increasingly skilled at reaching
residents through newsletters,social media and public
forums. District staffs grapple constantly with new ways
to increase their visibility. Many will find they can build
powerful new levels of public trust by helping to prepare
their communities for the uncertainty ahead.
Recommendation 20. The California Special Districts
Association and special districts should lead efforts
to seek and form regional partnerships to maximize
climate adaptation resources and benefits.
Water,wastewater and flood control districts are already
bringing numerous agencies to the table to pool money,
brainpower and resources for big regional projects. The
East Bay Municipal Utility District has arrangements
with many Bay Area and Central Valley water agencies
to identify and steer water to where it is most needed
for routine demands and emergencies alike. The
Metropolitan Water District and Sanitation Districts of
Los Angeles County also increasingly pool their joint
resources to steer more recycled water to groundwater
recharge basins for dry years. Likewise,the Santa Clara
Valley Water district and other state and federal agencies
are collectively planning and funding 18 miles of levees to
protect the region from sea level rise.These partnerships
among special districts and other government agencies
clearly hint at what will be increasingly necessary as
climate impacts begin to mount.
66 1 Little Hoover Commission
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Central Contra Costa Sanitary District
P,rotecth7g-public health and the en vi,ronn7ent 5019 In7hoff Place, Mai-tinez, CA 94553-4392
PHONE: (915)228-9500
FAX.- (925)676-7211
September 1, 2017 www.ceirtralsan.org
ROGER S.BAILEY
General Manager
KF.N70NL ALM
Counsel or the District
The Honorable Edmund G. Brown, Jr. (SIO)808-2000
Governor, State of California ELAINLR 80MA41,
State Capitol Building Secretary nftheDutrmt
Sacramento, CA 95814
RE: Assembly Bill 979 (Lackey) — Request for Signature
Dear Governor Brown:
The Central Contra Costa Sanitary District (Central San) respectfully requests your signature
on AB 979 (Lackey), which will facilitate special district representation on county Local
Agency Formation Commissions (LAFCOs). Central San, established in 1946, provides
wastewater collection and treatment services to nearly 500,000 residents and more than
3,000 businesses in the East San Francisco Bay Area. Within its 144 square mile service
area, Central San operates a 54 million gallon-per-day capacity treatment plant, 19 pumping
stations, 1,500 miles of sewer lines, a household hazardous waste collection facility, and
provides both commercial and residential recycled water programs.
LAFCOs administer and approve the formation, dissolution, and boundaries of local
agencies, including cities and special districts, in each county. LAFCOs are comprised of
representatives from the local county's cities, the county, and a member of the public_
Special districts have the ability to opt in to representation on LAFCOs. Since 1972, special
districts have obtained LAFCO representation in 30 of the 58 counties in California.
Under current law, special districts may acquire representation on a LAFCO if a majority of
all special districts in the county pass a board resolution supporting such action within a one-
year period. The most recent county to gain special district representation was Santa Clara
County in 2012. Organization of the county's 20 special districts to vote on individual board
resolutions within a one-year period required a well-funded campaign and a part-time
organizer.
AB 979 simplifies this time consuming and costly process by allowing special districts to vote
on LAFCO representation in a meeting of the county LAFCO's independent special districts
selection committee. Every independent special district would have the opportunity to
participate in the election process, either in-person or by mail, casting one vote for or against
the question.
®Recycled Paper
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AB 979 (Lackey) LAFCO Representation for Special Districts — Request for Signature
September 1, 2017
Page 2
Simplifying the LAFCO representation process would empower special districts in the 28
counties with no special district representation to more effectively consider their participation
on LAFCO. In cases where special districts choose to participate, special district
representation on LAFCO would provide a more diverse and representative decision-making
foundation to the LAFCO. Special districts are often instrumental in solving communities'
service deficiencies and their input in these processes is of great value. Using the
independent special districts selection committee process maintains local flexibility and
ensures every independent special district has the opportunity to participate in the election
process.
Currently, Central San Board Member Michael R. McGill serves as an important voice on
Contra Costa County's LAFCO as a Special District Member and current Vice-Chair, and on
the CALAFCO Board of Directors as the current Treasurer. Central San knows firsthand the
importance of ensuring the voice of special districts on LAFCOs throughout the state.
For these reasons, Central San requests your signature on AB 979.
Jog
rely,
r S. Bailey
ral Manager
cc: Tom Dyer, Chief Deputy Legislative Secretary, Office of Governor Brown
Mark Isidro, Legislative Assistant, Office of Assembly Member Tom Lackey
Rylan Gervase, Legislative Representative, California Special Districts Association
September 7, 2017 Regular Board Meeting Agenda Packet- Page 202 of 294