HomeMy WebLinkAboutAgenda Packet - December 7, 1992 6-74 .0/
O
Light & Water Department ®® ® F AZUSA (818) 334-0215
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December 1, 1992
AGENDA ITEM
TO: Honorable Mayor and Members of the City Council
FROM: Joseph F. Hsu, Director of Utilities '
VIA: Henry Garcia, City Administrator IV
RE: San Gabriel Valley Water Quality Authority Elections
On September 19, 1992, Senate Bill 1679 was signed into law by Governor Pete
Wilson. The bill not only gives the Water Quality Authority a stable source of funding for
use in groundwater cleanup in the San Gabriel Valley, but it also creates a new 5-
member board.
The new Board of Commissioners of the Water Quaility Authority will be comprised of
one each from the three water districts overlying the basin and two city council
members elected by the cities, one from a city with water rights and one from a city
without water rights.
The City of Azusa is a city with water rights in the basin. There are 62 votes available
among the cities with water rights. The City of Azusa has 4 votes.
Attached, "EXHIBIT A-1", Call for Nominations, explains the exact procedures for city
councils to follow. The City Council may elect, by resolution, to nominate a member of
our council to serve as a commissioner. If the City Council chooses not to nominate
one of its own members, it may, by resolution cast its 4 votes for another city council
member from another city.
Staff therefore recommends that if the City Council elects to nominate one of its
members that the City Attorney be directed to draft the appropriate resolution. The
resolution should be adopted in the form of a motion at the City Council meeting of
December 7, 1992, prepared by the City Attorney, and signed by the Mayor no later
than December 10, 1992, for hand delivery by staff.
After the nomination process, staff will present the City Council with the ballots for the
election to be held on February 11, 1993. Once again the votes will be cast in the form
of a motion.
ATTACHMENTS: Call for Nominations, Senate Bill 1679
~Me 1,10 G(--"
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777 North Alameda Avenue, P.O. Box 9500, Azusa, California 91702-9500
EXHIBIT "A-1"
CALL FOR NOMINATIONS
FOR
ELECTION OF CITY MEMBERS AND ALTERNATES FROM
CITIES WITH PUMPING RIGHTS
TO THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY
PURSUANT TO SB 1679
CITY: Azusa
TO THE CITY COUNCIL:
The election of the city member and alternate of the Board
of the San Gabriel Basin Water Quality Authority ("the
Authority") from cities with pumping rights will take place at
the regularly scheduled meeting of the Board of the Authority set
for February 11 , 1993 , at 7 :00
a.m./p.m. , at City Council Chambers
Baldwin Park , California.
Nominations for candidates for a city member elected by
cities with pumping rights may be made by any city with pumping
rights. Each city may nominate only one candidate.
The member and alternate shall be City Council members or
Mayors from cities with pumping rights. An alternate member acts
in the place, and performs all the duties, of the city member
selected by the same cities if that city member is absent from a
meeting of the Authority or has vacated his or her office until
the vacancy is filled pursuant to the provisions of SB 1679.
No person who, directly or indirectly, at the time of
election, receives, or during the two-year period immediately
preceding election received, 10 percent or more of his or her
income from any person or public entity subject to regulation by,
or that receives grants from or contracts for work with, the
Authority may serve as a member of the Authority.
Your city may nominate one candidate by resolution of the
City Council. Your nomination must be submitted to the Authority
at least 60, but not more than 90, days preceding the meeting at
which the election is to be held.
PROCEDURES FOR CALLING AND CONDUCTING ELECTIONS
OF CITY MEMBERS AND ALTERNATES FROM
CITIES WITH PUMPING RIGHTS
AND FROM
CITIES WITHOUT PUMPING RIGHTS
TO THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY
PURSUANT TO SB 1679
1. Definitions.
"Authority" means the San Gabriel Basin Water Quality
Authority.
"Board" means the San Gabriel Basin Water Quality Authority
Board, which is the governing body of the Authority.
"City" means a city which partially or entirely overlies the
Main San Gabriel Basin or a city which has, or may acquire, the
right to pump water from the basin.
"Cities with pumping rights" means cities which have pumping
rights in the basin in accordance with the judgment and includes
the Cities of Alhambra, Arcadia, Azusa, Covina, El Monte,
Glendora, Industry, Irwindale, La Verne, Monrovia, Monterey Park,
South Pasadena, and Whittier.
"Cities without pumping rights" means cities which do not
have pumping rights in the basin in accordance with the judgment
and includes the Cities of Baldwin Park, Bradbury, Duarte, La
Puente, Rosemead, San Dimas, San Gabriel, San Marino, Sierra
Madre, South El Monte, Temple City and West Covina.
"Judgment" means the judgment, as amended or as it may be
amended, of the Superior Court in and for the County of Los
Angeles in Upper San Gabriel Valley Municipal District v. City of
Alhambra (Case Number 924128) .
"Main San Gabriel Basin" or "basin" means the groundwater
basin underlying the land within the boundaries of the Authority.
2. City Members of the Board - Number and Qualifications.
a) . There shall be two members, and two alternates, of the
Board of the Authority which are elected by the cities. One
member, and one alternate, shall be elected by the cities with
pumping rights. One member, and one alternate, shall be elected
by the cities without pumping rights.
b) . An alternate member shall act in the place, and perform
all the duties, of the city member selected by the same cities if
that city member is absent from a meeting of the Authority or has
vacated his or her office until the vacancy is filled pursuant to
the provisions of SB 1679 as set forth below.
c) . The member and alternate from cities with pumping
rights shall be City Council members or Mayors from cities with
pumping rights. The member and alternate from cities without
pumping rights shall be City Council members or Mayors from
cities without pumping rights.
d) . No person who, directly or indirectly, at the time of
election, receives, or during the two-year period immediately
preceding election received, 10 percent or more of his or her
income from any person or public entity subject to regulation by,
or that receives grants from or contracts for work with, the
Authority may serve as a member of the Authority.
3 . City Member of the Board - Term of Office.
The term of the city member shall commence on the first
Monday in January and each member shall hold office for a term of
four years and until the successor takes office.
4 . Time and Place of Election.
An election of the city member and alternate from the cities
with pumping rights and from the cities without pumping rights
shall be conducted at the Board' s final regular meeting of the
calendar year preceding the expiration of the term of the office
of that city member. The election held to elect the initial city
member and alternate from the cities with pumping rights and from
the cities without pumping rights shall be conducted at a regular
meeting of the Board prior to March 1, 1993 .
5. Voting Rights of Cities.
a) . A city with pumping rights may vote for candidates to
be elected to represent cities with pumping rights. A city with
pumping rights may not vote for candidates to be elected to
represent cities without pumping rights.
b) . A city without pumping rights may vote for candidates
to be elected to represent cities without pumping rights. A city
without pumping rights may not vote for candidates to be elected
to represent cities with pumping rights.
c) . The number of votes which a city may cast is determined
by the population of the city. Each city has one vote for each
10, 000 residents or majority fraction thereof, as determined by
the most recent United States decennial census data. The number
of votes to which a city is entitled shall be computed by
rounding the population of the city to the nearest 10, 000 and
dividing that number by 10, 000. Each city has a minimum of one
vote.
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6. Nominations.
a) . Nominations for candidates for a city member elected by
cities with pumping rights may be made by any city with pumping
rights. Each city may nominate only one candidate.
b) . At least 120 days preceding the meeting at which the
election is to be held, the Authority shall send, by certified
mail - return receipt requested, a Call for Nominations to the
city council of each city with pumping rights. Such Call for
Nominations shall be prepared in accordance with the sample
attached as Exhibit "A-1" .
c) . Nominations for candidates for a city member elected by
cities without pumping rights may be made by any city without
pumping rights. Each city may nominate only one candidate.
d) . At least 120 days preceding the meeting at which the
election is to be held, the Authority shall send, by certified
mail - return receipt requested, a Call for Nominations to the
city council of each city without pumping rights. Such Call for
Nominations shall be prepared in accordance with the sample
attached as Exhibit "A-2" .
e) . Nominations shall be made by resolution of the city
council of the nominating city. All nominations shall be
submitted to the Authority at least 60, but not more than 90,
days preceding the meeting at which the election is to be held.
7. Ballots.
a) . The Authority shall compile all nominations which were
received from the cities with pumping rights and shall prepare a
ballot listing all nominated candidates in accordance with the
sample ballot attached as Exhibit "B-1" .
b) . The Authority shall compile all nominations which were
received from the cities without pumping rights and shall prepare
a ballot listing all nominated candidates in accordance with the
sample ballot attached as Exhibit "B-2" .
c) . Each ballot shall indicate the number of votes which
the city is entitled to cast.
d) . At least 45 days before the meeting at which the
election is to be held, the Authority shall distribute, by
certified mail - return receipt requested, the ballots to each
city eligible to vote in the election.
8. The Election.
a) . Each city shall cast all of its votes for one
candidate, by resolution of the city council. The resolution
casting the city's votes shall be delivered to the Authority at
least 24 hours before the meeting of the Board at which the
3
election is held. Any resolutions not received by the Authority_
24 hours before the election may not be counted.
b) . At the meeting at which the election is held, the Board
of the Authority shall cause the votes to be counted. The
candidate receiving the highest number of votes cast by cities
with pumping rights shall be elected to fill the office
representing cities with pumping rights. The candidate receiving
the next highest number of votes cast by cities with pumping
rights, who is not a city council member from the same city as
the candidate receiving the highest number of votes, shall be
elected as the alternate member. The candidate receiving the
highest number of votes cast by cities without pumping rights
shall be elected to fill the office representing cities without
pumping rights. The candidate receiving the next highest number
of votes cast by cities without pumping rights, who is not a city
council member from the same city as the candidate receiving the
highest number of votes, shall be elected as the alternate
member.
9. Vacancy.
A vacancy in the office of a city member or alternate shall
be filled by a special election called by the Authority. Only
those cities which participated in the election of the member or
alternate to the office in which the vacancy has occurred are
eligible to vote. Nominations and balloting shall be conducted
in the same manner as a regular election, except that the date of
the election and time periods shall be as prescribed by the
Authority. The member or alternate elected to fill a vacancy
shall meet the qualifications applicable to the vacant office and
shall serve for the remaining term of the vacant office.
4
AMENDED IN ASSEMBLY AUGUST 19, 1992 .
AMENDED IN ASSEMBLY JULY 21, 1992
AMENDED IN ASSEMBLY JUNE 22, 1992
AMENDED IN SENATE MAY 14, 1992
AMENDED IN SENATE APRIL 28, 1992
AMENDED IN SENATE APRIL 20, 1992
AMENDED IN SENATE APRIL 6, 1992
AMENDED IN SENATE MARCH 23, 1992
SENATE BILL No. 1679
Introduced by Senator Russell
(Principal coauthor: Assembly Member Mountjoy)
(Coauthors: Senators Beverly, Dills, and Hill)
(Coauthors: Assembly Members Epple, Horcher, and
Murray)
February 20, 1992
An act to create, and to repeal the act creating, the San
Gabriel Basin Water Quality Authority, relating to water.
LEGISLATIVE COUNSEL'S DIGEST
SB 1679, as amended, Russell. San Gabriel Basin Water
Quality Authority.
(1) Under existing law, various agencies provide for the
management of water in prescribed districts.
This bill would enact the San Gabriel Basin Water Quality
Authority Act to create the San Gabriel Basin Water Quality
Authority.
The bill would prescribe the organization, boundaries,
management,powers,duties,and financing of the authority.
The bill would require the authority to be administered by a
91 80
I
SB 1679 —2— —3— SB 1679
I
5-member governing body known as the San Gabriel Basin 1 Angeles County is seriously contaminated with hazardous
Water Quality Authority Board. The bill would require the 2 substances.
Los Angeles Regional Water Quality Control Board to report 3 (b) The contamination is deep and widespread, with
to the Legislature on the progress of the authority, as 4 approximately 70 out of 275 wells contaminated in excess
prescribed. 5 of maximum contaminant levels or state action levels for
The bill would impose a state-mandated local program by 6 various volatile organic compounds and nitrates.
imposing various duties on local entities. 7 (c) The groundwater in the Main San Gabriel Basin is
The bill would make these provisions,except for the report 8 the primary source of drinking water for over 1,000,000
requirement, inoperative on the occurrence of both of 2 9 residents of the San Gabriel Valley.
prescribed events. The Except as otherwise provided, the 10 (d) Strong and consistent local management of San
bill's provisions would be repealed on January 1, 1998, unless 11 Gabriel Valley groundwater cleanup is needed to protect
a later enacted statute extends or repeals that date. 12 and enhance water quality, ensure protection of the
(2) The California Constitution requires the state to 13 beneficial uses of the groundwater, and promote and
reimburse local agencies and school districts for certain costs 14 foster the cleanup of this valuable resource.
mandated by the state. Statutory provisions establish 15 (e) There is no existing local entity which has all of the
procedures for making that reimbursement, including the 16 necessary authority and jurisdiction to carry out the
creation of a State Mandates Claims Fund to pay the costs of 17 financial and institutional arrangements necessary to
mandates which do not exceed$1,000,000 statewide and other 18 coordinate an effective cleanup program.
19 (f) (1) The watermaster for the Main San Gabriel
procedures for claims whose statewide costs exceed 20 Basin was appointed by the Superior Court in and for the
This bill would provide that, if the Commission on State
$1��� 21 County of Los Angeles,pursuant to a judgment entered Mandates determines that this bill contains costs mandated by 22 upon the stipulation of all of the parties with water rights
23 in the Main San Gabriel Basin,to regulate the extraction
the state, reimbursement for those costs shall be made
pursuant to those statutory procedures and, if the statewide 24 and replenishment activities in that basin.Nothing in this
25 act is intended to expand the authority granted to the
cost does not exceed$1,000,000,shall be made from the State 26 watermaster in the judgment.
Mand
tes Claims Fund. 27 (2) The watermaster has developed a program for the
Votemajority. Appropriation: no. Fiscal committee: yes. 28 management of the Main San Gabriel Basin, which mandated local program: yes. 29 includes all of the folldwing:
The people of the State of California do enact as follows:
30 (A) Regulation of water rights.
31 (B) Imposition of an annual safe yield for the basin.
1 SECTION 1. This act shall be known and may be 32 (C) Development of a plan for the importation of
2 cited as the San Gabriel Basin Water Quality Authority 33 water into the Main San Gabriel Basin for the purpose of
3Act. 34 replenishment, including a plan to accomplish the
4 35 long-term conjunctive use of the basin's groundwater
5Article 1. General Provisions 36 storage capacity.
6 37 (D) Regulation of groundwater production.
7 Sec. 101. The Legislature hereby finds and declares 38 (E) Implementation of procedures for compliance
8 all of the following: 39 with water supply requirements relating to the lower San
9 (a) Groundwater in the San Gabriel Valley in Los 40 Gabriel Basin.
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-3— SB 1679
SB 1679 —2—
I
5-member governing body known as the San Gabriel Basin ' 1 Angeles County is seriously contaminated with hazardous
Water Quality Authority Board. The bill would require the 2 substances.
Los Angeles Regional Water Quality Control Board to report 3 (b) The contamination is deep and widespread, with
to the Legislature on the progress of the authority, as 4 approximately 70 out of 275 wells contaminated in excess
prescribed. 5 of maximum contaminant levels or state action levels for
The bill would impose a state-mandated local program by 6 various volatile organic compounds and nitrates.
imposing various duties on local entities. 7 (c) The groundwater in the Main San Gabriel Basin is
The bill would make these provisions,except for the report 8 the primary source of drinking water for over 1,000,0(0
requirement, inoperative on the occurrence of both of 2 9 residents of the San Gabriel Valley.
prescribed events. The Except as otherwise provided, the 10 (d) Strong and consistent local management of San
bill's provisions would be repealed on January 1, 1998,unless 11 Gabriel Valley groundwater cleanup is needed to protect
a later enacted statute extends or repeals that date. 12 and enhance water quality, ensure protection of the
(2) The California Constitution requires the state to 13 beneficial uses of the groundwater, and promote and
reimburse local agencies and school districts for certain costs 14 foster the cleanup of this valuable resource.
mandated by the state. Statutory provisions establish 15 (e) There is no existing local entity which has all of the
procedures for making that reimbursement, including the 16 necessary authority and jurisdiction to carry out the
creation of a State Mandates Claims Fund to pay the costs of 17 financial and institutional arrangements necessary to
mandates which do not exceed$1,000,000 statewide and other 18 coordinate an effective cleanup program.
19 (f) (1) The watermaster for the Main San Gabriel
procedures for claims whose statewide costs exceed 20 Basin was appointed by the Superior Court in and for the
This bil
$1 21 County of Los Angeles,pursuant to a judgment entered
This bill would provide that, if the Commission on State 22 upon the stipulation of all of the parties with water rights
Mandates determines that this bill contains costs mandated by 23 in the Main San Gabriel Basin,to regulate the extraction
the state, reimbursement for those costs shall be made
pursuant to those statutory procedures and, if the statewide 24 and replenishment activities in that basin.Nothing in this
25 act is intended to expand the authority granted to thecost does not exceed$1,000,000,shall be made from the State 26 watermaster in the judgment.
Mandates Claims Fund. 27 (2) The watermaster has developed a program for the
Vote: majority. Appropriation: no. Fiscal committee: yes. 28 management of the Main San Gabriel Basin, which
State-mandated local program: yes. 29 includes all of the folldwing:
The people of the State of California do enact as follows: 30 (A) Regulation of water rights.
31 (B) Imposition of an annual safe yield for the basin.
1 SECTION 1. This act shall be known and may be 32 (C) Development of a plan for the importation of
A33 water into the Main San Gabriel Basin for the purpose of
2
cited ' 34 replenishment, including a plan to accomplish the
3 Actt.. as the San Gabriel Basin Water Quality Authority 35 long-term conjunctive use of the basin's groundwater
4
5 Article 1. General Provisions 36 storage capacity.
6 37 (D) Regulation of groundwater production.
7 Sec. 101. The Legislature hereby finds and declares 38 (E) Implementation of procedures for compliance
8 all of the following: 39 with water supply requirements relating to the lower San
9 (a) Groundwater in the San Gabriel Valley in Los 40 Gabriel Basin.
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91 100
SB 1679 —4— —5— SB 1679 .
1 (F) Regulation of groundwater pumping activities for 1 Authority to cooperate with the State Water Resources
2 purposes of water quality protection. 2 Control Board, the Los Angeles Regional Water Quality
3 (G) Monitoring groundwater quality and collection of 3 Control Board,the State Department of Health Services,
4 groundwater quality data. 4 the United States Environmental Protection Agency,the
5 (Ii) Preparation of an annual five-year water quality I 5 Metropolitan Water District of Southern California, the
6 and supply plan. 6 Main San Gabriel Basin Watermaster, and other
7 (I) Coordination of activities with the joint powers 7 appropriate agencies, in carrying out the requirements
8 authority. 8 and purposes of this act.
9 (g) The joint powers authority has developed cleanup 9 (c) That the cleanup of contaminated groundwater
10 programs to clean up the Main San Gabriel Basin,which 10 authorized by this act be undertaken so as te prevent or
11 include all.of the following: 11 tee; te the extent feasible; the migration of
12 (1) Characterization of basin contamination. 12 eon groundwater kens the Ment Serf Gabriel
13 (2) Development and implementation of a 13 Basin tine the Gentle'Mid West Water Basins,to do both
14 comprehensive basin cleanup plan. 14 of the following:
15 (3) A plan for financing the design, construction, 15 (1) Prevent or minimize, to the extent feasible, the
16 operation, and maintenance of groundwater cleanup j 16 migration of contaminated groundwater from the Main
17 facilities. 17 San Gabriel Basin into the Central and West Water
18 (4) Provision for a public information program. 18 Basins.
19 (5) Coordination with federal,state,and local entities. 19 (2) Use reasonable, technically sound, and
20 (h) The Legislature intends that the watermaster,the 20 cost-effective measures to ensure that groundwater
21 joint powers authority,and the San Gabriel Basin Water 21 extracted from the Main San Gabriel Basin will meet
22 Quality Authority, as the successor to the joint powers 22 applicable regulatory standards for the beneficial uses of
23 authority, continue to coordinate their respective 23 the water.
24 groundwater management responsibilities and meet 24 (d) That,because of the pervasive nature and multiple
25 periodically to review, evaluate, and modify,as needed, 25 sources of contamination in the San Gabriel Valley,
26 the division of responsibilities for managing groundwater 26 appropriate credit should be given for the amount of
27 cleanup in the basin. 27 prior groundwater investigation and remediation
28 Sec.102. It is the intent of the Legislature in enacting 28 expenditures by any responsible party when determining
29 this act: j 29 the amount of costs recoverable from that party.
30 (a) To create the San Gabriel Basin Water Quality I 30 (e) That,if the costs of any removal or remedial action
31 Authority to protect the public health and safety by 31 project are increased as a result of conjunctive use, those
32 eleaning up the eentaminated groundwater in the Main 32 increased costs shall not be costs recoverable from
33 San Gabriel Basin ae that potable water may be extraeted 333 responsible parties.
34 from all areas of that basin: by planning and financing
35 groundwater extraction and treatment projects to be 35 Article 2. Creation and Boundaries
36 carried out by the authority in the Main San Gabriel 36
37 Basin, to provide potable water for beneficial uses in the 37 Sec. 201. The San Gabriel Basin Water Quality
38 basin, and to contribute to the basinwide remedial 38 Authority is hereby created.
39 objectives established by state and federal agencies. 39 Sec. 202. The boundaries of the authority are as
40 (b) To encourage the San Gabriel Basin Water Quality 40 follows:
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SB 1679 —6— i, —7— SB 1679
1 Beginning at the southwest corner of Section 14, 1 continuing south along the east line of Section 32,
2 Township 1 North, Range 11 West,San Bernardino Base 2 Township 2 North,Range 9 West,and thence continuing
3 and Meridian; 3 south along the east line of Section 5,Township 1 North,
4 Thence north along the west line of Section 14 to the 4 Range 9 West to the southeast corner of Section 5;
5 northwest corner of the south half of Section 14; i 5 Thence west along the south line of Section 5 to the
6 Thence east along the north line of the south half of 6 southwest corner of Section 5, the point being also the
7 Section 14 to the east line of Section 14; 7 northwest corner of Section 8;
8 Thence north along the east line of Section 14 and j 8 Thence south along the west line of Section 8 and
9 continuingsouth along the west line of Section 17 to the
9 continuing north along the east line of Section 11 to the 10 southwest corner of Section 17,the corner being also the
10 northeast corner of Section 11; Section 20;
11 Thence east along the north line of Section 12 to the 11 northwest corner of S 12 Thence east along Sthe north line of Sections 20 and 21
12 northeast corner Section 12; 13 to the northwest corner of Section 22, the corner being
13 Thence south all onggthe east line of Section 12 and
14 continuing south along the east line of Section 13 to the 14 also the southwest corner of Section 15;
15 southeast corner of Section 13, the corner being also the 15 Thence north along the west line of Section 15 to the
16 southwest corner of Section 18,Township 1 North,Range 16 northwest corner of the south half of Section 15;
17 10 West; 17 Thence east along the north line of the south half of
18 Thence east along the south line of Sections 18, 17, 16, 18 Section 15 to the northeast corner of the south half of
19 and 15, Township 1 North, Range 10 West to the 19 Section 15;
20 southwest corner of Section 14; 20 Thence south along the east line of Section 15 and
21 Thence north along the west line of Section 14 to the 21 continuing south along the east line of Section 22 to the
22 northwest corner of the south half of Section 14; 22 southeast corner of Section 22, the point being also the
23 Thence east along the north line of the south half of 23 southwest corner of Section 23;
24 Section 14 to the east line of the section; 24 Thence east along the south line of Sections 23 and 24
25 Thence north along the east line of Section 14, and 25 to the east line of the west half of Section 24;
26 continuing north along the west line of Section 12 to the 26 Thence north along the east line of the west half of
27 north line of Section 12; 27 Section 24 to the north line of the section;
28 Thence,east along the north line of Section 12, to the 28 Thence east along the north line of Section 24 to the
29 northeast corner of Section 12,the corner being also the 29 northeast corner of the section, the point also being the
30 southwest corner of Section 6,Township 1 North,Range 30 northwest corner of Section 19,Township 1 North,Range
31 9 West; 31 8 West;
32 Thence north along the west line of Section 6 and 32 Thence east along the north line of Sections 19 and 20,
33 continuing north along the west line of Sections 31 and 30, 33 Township 1 North, Range 8 West to the northeast corner
34 Township 2 North, Range 9 West to the westerly 34 of Section 20;
35 prolongation of the north line of Section 30; 35 Thence south along the east line of Sections 20, 19,and
36 Thence, east along the westerly prolongation of the 36 32, Township 1 North, Range 8 West to the southeast
37 north line of Section 30 and continuing east along the
37 corner of Section 32;
38 north line of Section 29 to the northeast corner of Section 38 Thence west along the south line of Section 32 to the
39 29; 39 northwest corner of the east half of Section 5,Township
40 Thence south along the east line of Section 29 and 40 1 South, Range 8 West;
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SB 1679 —6—
7— SB 1679
1 Beginning at the southwest corner of Section 14, 1 continuing south along the east line of Section 32,
2 Township 1 North, Range 11 West,San Bernardino Base ( 2 Township 2 North,Range 9 West,and thence continuing
3 and Meridian; 3 south along the east line of Section 5,Township 1 North,
4 Thence north along the west line of Section 14 to the 4 Range 9 West to the southeast corner of Section 5;
5 northwest corner of the south half of Section 14; i 5 Thence west along the south line of Section 5 to the
6 Thence east along the north line of the south half of 6 southwest corner of Section 5, the point being also the
7 Section 14 to the east line of Section 14; 7 northwest corner of Section 8;
8 Thence north along the east line of Section 14 and j 8 Thence south along the west line of Section 8 and
9 continuing north along the east line of Section 11 to the 9 continuing south along the west line of Section 17 to the
10 northeast corner of Section 11; 10 southwest corner of Section 17,the corner being also the
11 Thence east along the north line of Section 12 to the 11 northwest corner of Section 20;
12 northeast corner of Section 12; 12 Thence east along the north line of Sections 20 and 21
13 Thence south along the east line of Section 12 and 13 to the northwest corner of Section 22, the corner being
14 continuing south along the east line of Section 13 to the 14 also the southwest corner of Section 15;
15 southeast corner of Section 13, the corner being also the 15 Thence north along the west line of Section 15 to the
16 southwest corner of Section 18,Township 1 North,Range 16 northwest corner of the south half of Section 15;
17 10 West; 17 Thence east along the north line of the south half of
18 Thence east along the south line of Sections 18, 17, 16, 18 Section 15 to the northeast corner of the south half of
19 and 15, Township 1 North, Range 10 West to the 19 Section 15;
20 southwest corner of Section 14; 20 Thence south along the east line of Section 15 and
21 Thence north along the west line of Section 14 to the 21 continuing south along the east line of Section 22 to the
22 northwest corner of the south half of Section 14; 22 southeast corner of Section 22, the point being also the
23 Thence east along the north line of the south half of 23 southwest corner of Section 23;
24 Section 14 to the east line of the section; 24 Thence east along the south line of Sections 23 and 24
25 Thence north along the east line of Section 14, and 25 to the east line of the west half of Section 24;
26 continuing north along the west line of Section 12 to the 26 Thence north along the east line of the west half of
27 north line of Section 12; 27 Section 24 to the north line of the section;
28 Thence,east along the north line of Section 12, to the 28 Thence east along the north line of Section 24 to the
29 northeast corner of Section 12,the corner being also the 29 northeast corner of the section, the point also being the
30 southwest corner of Section 6,Township 1 North,Range 30 northwest corner of Section 19,Township 1 North,Range
31 9 West; 31 8 West;
32 Thence north along the west line of Section 6 and 32 Thence east along the north line of Sections 19 and 20,
33 continuing north along the west line of Sections 31 and 30, 33 Township 1 North,Range 8 West to the northeast corner
34 Township 2 North, Range 9 West to the westerly 34 of Section 20;
35 prolongation of the north line of Section 30; 35 Thence south along the east line of Sections 20, 19,and
36 Thence, east along the westerly prolongation of the 36 32, Township 1 North, Range 8 West to the southeast
37 north line of Section 30 and continuing east along the
37 corner of Section 32;
38 north line of Section 29 to the northeast corner of Section 38 Thence west along the south line of Section 32 to the
39 29; 39 northwest corner of the east half of Section 5,Township
40 Thence south along the east line of Section 29 and 40 1 South, Range 8 West;
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SB 1679 —8—
1 Thence north and west along the east and north lines,
1 Thence south along the west line of the east half of 2 respectively, of Section 15,Township 2 South, Range 11
2 Section 5 of the south line of Section 5; 3 West, to the northwest corner of the section;
3 Thence west to the east line of the northerly 4 Thence west along the westerly prolongation of the
4 prolongation of Range 9 West; 5 north line of Section 15,Township 2 South,Range 11 West
5 Thence south 67 degrees 30 minutes west to an 6 to the intersection with a line parallel to, and one mile
6 intersection with the northerly prolongation of the west7 east of, the west line of Range 11 West;
7 line of Section 27,Township 1 South, Range 9 West; t 8 Thence north along the parallel line to the intersection
8 Thence south along the northerly prolongation of the 9 with the northerly boundary of the City of Pico Rivera as
9 west line of Section 27 and continuing south along the 10 that city existed on July 17, 1970;
10 west line of Section 27 to the southwest corner of Section I 11 Thence west along that city boundary to the
11 27,the point being also the southeast corner of Section 28; 12 intersection with the east line of Range 12 West;
12 Thence west along the south line and westerly 13 Thence north along the east line of Range 12 West to
13 prolongation of the south line of Section 28 to the 14 the north line of Township 2 South;
14 northerly prolongation of the west line of Range 9 West; 15 Thence west along the north line of Township 2 South
15 Thence south along the prolongation of the west line of 16 to the intersection with the southerly prolongation of the
16 Range 9 West to the westerly prolongation of the north 17 east line of the west half of Section 26,Township 1 South,
17 line of Township 2 South; 18 Range 12 West;
18 Thence west along the westerly prolongation of the 19 Thence north along the southerly prolongation of the
19 north line of Township 2 South, a distance of 8,500 feet; 20 east line of the west half of Section 26 to the southeast
20 Thence south a distance of 4,500 feet; 21 corner of the west half;
21 Thence west a distance of 10,700 feet; 22 Thence west along the south line of Sections 26,27,and
22 Thence south 29 degrees west to the intersection with 23 28, Township 1 South, Range 12 West to the southeast
23 the northerly prolongation of the west line of Section 20, 24 corner of Section 29,Township 1 South, Range 12 West;
24 Township 2 South, Range 10 West; f 25 Thence north along the east line of Section 29 to the
25 Thence south along the northerly prolongation of the ' 26 northeast corner of the south half of Section 29;
26 west line of Section 20 and continuing south along the 27 Thence west along the north line along the south half
27 west line of Section 20 to the southwest corner of Section 28 of Section 29 to the northwest corner of the section;
28 20; 29 Thence north along the west line of Sections 29,20, 17,
29 Thence south a distance of 2,000 feet; 30 and 8, Township 1 South, Range 12 West;
30 Thence west a distance of two miles,more or less,to the I31 Thence north along the northerly prolongation of the
31 intersection with the east line of Section 26,Township 2 32 west line of Section 8,Township 1 South, Range 12 West
32 South, Range 11 West; 33 to the intersection with the north line of Township 1
33 Thence north along the east line of Section 26 and A. 34 south;
34 continuing north along the east line of Section 23, 35 Thence east along the north line of Township 1 south
35 Township 2 South,Range 11 West to the northeast corner 36 to the northeast corner of Section 3, Township 1 South,
36 of Section 23; 37 Range 12 West;
37 Thence west along the north line of Section 23 to the 38 Thence north 64 degrees 30 minutes east to the
38 northwest corner of the section,the point being also the 39 intersection with the west line of Section 23,Township 1
39 southeast corner of Section 15,Township 2 South, Range t 40 North, Range 11 West;
40 11 West;
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1 Thence north along the west line of Section 23 to the ( 1 Baldwin Park, Bradbury,Duarte, La Puente,Rosemead,
2 northwest corner of the section, the point being the 2 San Dimas,San Gabriel,San Marino,Sierra Madre,South
3 southwest corner of Section 14,Township 1 North,Range 3 El Monte, Temple City, and West Covina.
4 11 West and the point being also the point of beginning. 4 Sec. 306. "Groundwater" means water beneath the
5 5 surface of the ground and within the zone of saturation.
6 Article 3. Definitions 6 Sec. 307. "Groundwater basin" means an
7 ( 7 interconnected and permeable geologic formation
8 Sec. 301. Unless the context otherwise requires, the 8 capable of storing and yielding substantial groundwater
9 definitions in this article govern the construction of this 9 supply.
10 act. 10 Sec. 308. "joint powers authority" means the entity
11 Sec. 302. "Authority" means the San Gabriel Basin 11 formed pursuant to the "Joint Exercise of Powers
12 Water Quality Authority. 12 Agreement Creating Main San Gabriel Basin Water
13 Sec.303. "Board"means the San Gabriel Basin Water 13 Quality Authority,"dated July 27,1990,by and among the
14 Quality Authority Board,which is the governing body of 14 Upper San Gabriel Valley Municipal Water District, the
15 the authority. 15 San Gabriel Valley Municipal Water District, and the
16 Sec. 304. "Board member" or "member" means a ' 16 Three Valleys Municipal Water District.
17 member of the board. 17 Sec. 309. "Judgment" means the judginent, as
18 (a) "Alternate member" or "alternate" means the 18 amended or as it may be amended,of the Superior Court
19 nominee receiving the second highest number of votes in 19 in and for the County of Los Angeles in Upper San
20 an election of a city member or the person appointed by ( ' ' 20 Gabriel Valley Municipal Water District v. City of
21 a water district to act in the place of a member if that 21 Alhambra (Case Number 924128).
22 member is absent or the member has vacated the office. 22 Sec.310. "Main San Gabriel Basin"or "basin" means
23 (b) "City member" means a member elected by the 23 the groundwater basin underlying the land within the
24 cities with pumping rights or the cities without pumping 24 boundaries of the authority.
25 rights. 1 25 Sec. 311. `Produce" means to pump water from the
26 (c) "Water district member" means a member 26 basin.
27 appointed by one of the water districts. 27 Sec. 312. "Producer" means a person or entity that
28 Sec. 305. "City" means a city which partially or 28 produces water.
29 entirely overlies the Main San Gabriel Basin or a city 29 Sec.313. "Public water system"means any entity that
30 which has,or may acquire,the right to pump water from 30 operates a public water system,as defined in subdivision
31 the basin. 31 (f) of Section 4010.1 of the Health and Safety Code.
32 (a) "Cities with pumping rights" means cities which 32 Sec. 314. "Pumping right assessment" means an
33 have pumping rights in the basin in accordance with the f 33 assessment on prescriptive pumping rights levied by the
34 judgment and includes the Cities of Alhambra,Arcadia, 34 authority upon the holder of a prescriptive pumping
35 Azusa, Covina,El Monte,Glendora,Industry,Irwindale, 35 right, as determined under the judgment.
36 La Verne, Monrovia, Monterey Park, South Pasadena, 36 Sec. 315. "Water district" means the San Gabriel
37 and Whittier. 37 Valley Municipal Water District, the Upper San Gabriel
38 (b) "Cities without pumping rights" means cities 38 Valley Municipal Water District, or the Three Valleys
39 which do not have pumping rights in the basin in 39 Municipal Water District.
40 accordance with the judgment and includes the Cities of ( 40 Sec. 316. "Watermaster" means the watermaster
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1 Thence north along the west line of Section 23 to the ( 1 Baldwin Park, Bradbury, Duarte, La Puente, Rosemead,
2 northwest corner of the section, the point being the 2 San Dimas,San Gabriel,San Marino,Sierra Madre,South
3 southwest corner of Section 14,Township 1 North,Range 3 El Monte,Temple City, and West Covina.
4 11 West and the point being also the point of beginning. 4 Sec. 306. "Groundwater" means water beneath the
5 5 surface of the ground and within the zone of saturation.
6 Article 3. Definitions 6 Sec. 307. "Groundwater basin" means an
7 ( 7 interconnected and permeable geologic formation
8 Sec. 301. Unless the context otherwise requires, the 8 capable of storing and yielding substantial groundwater
9 definitions in this article govern the construction of this 9 supply.
10 act. 10 Sec. 308. "Joint powers authority" means the entity
11 Sec. 302. "Authority" means the San Gabriel Basin 11 formed pursuant to the "Joint Exercise of Powers
12 Water Quality Authority. 12 Agreement Creating Main San Gabriel Basin Water
13 Sec.303. "Board"means the San Gabriel Basin Water 13 Quality Authority,"dated July 27,1990,by and among the
14 Quality Authority Board,which is the governing body of 14 Upper San Gabriel Valley Municipal Water District, the
15 the authority. 15 San Gabriel Valley Municipal Water District, and the
16 Sec. 304. "Board member" or "member" means a ' 16 Three Valleys Municipal Water District.
17 member of the board. 17 Sec. 309. "Judgment" means the judginent, as
18 (a) "Alternate member" or "alternate" means the 18 amended or as it may be amended,of the Superior Court
19 notninee receiving the second highest number of votes in 19 in and for the County of Los Angeles in Upper San
20 an election of a city member or the person appointed by ( ' ' 20 Gabriel Valley Municipal Water District v. City of
21 a water district to act in the place of a member if that 21 Alhambra (Case Number 924128).
22 member is absent or the member has vacated the office. 22 Sec.310. "Main San Gabriel Basin"or "basin"means
23 (b) "City member" means a member elected by the 23 the groundwater basin underlying the land within the
24 cities with pumping rights or the cities without pumping d 24 boundaries of the authority.
25 rights. 1 25 Sec. 311. "Produce" means to pump water from the
26 (c) "Water district member" means a member 26 basin.
27 appointed by one of the water districts. 27 Sec. 312. "Producer" means a person or entity that
28 Sec. 305. "City" means a city which partially or 28 produces water.
29 entirely overlies the Main San Gabriel Basin or a city 29 Sec.313. "Public water system"means any entity that
30 which has,or may acquire,the right to pump water from 30 operates a public water system,as defined in subdivision
31 the basin. 31 (f) of Section 4010.1 of the Health and Safety Code.
32 (a) "Cities with pumping rights" means cities which 32 Sec. 314. "Pumping right assessment" means all
33 have pumping rights in the basin in accordance with the f 33 assessment on prescriptive pumping rights levied by the
34 judgment and includes the Cities of Alhambra, Arcadia, 34 authority upon the holder of a prescriptive pumping
35 Azusa,Covina,El Monte,Glendora,Industry, Irwindale, 35 right, as determined under the judgment.36 Sec. 315. "Water district" means the San Gabriel
an
37 and Whittier.
36 Verne, Monrovia, Monterey Park, South Pasadena, 37 Valley Municipal Water District, the Upper San Gabriel
38 (b) "Cities without pumping rights" means cities 38 Valley Municipal Water District, or the Three Valleys
39 which do not have pumping rights in the basin in 39 Municipal Water District.
40 accordance with the judgment and includes the Cities of f 40 Sec. 316. "Watermaster" means the watermaster
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I
SB 1679 —12— — 13— SB 1679
1 appointed to administer the judgment. ( 1 (g) Incur debts, liabilities, and obligations.
2 2 (h) Issue bonds, notes, and warrants and other
3 Article 4. Powers and Purposes 3 evidence of indebtedness and enter into leases,
4 4 installment sales contracts, and other agreements to
5 Sec. 401. The authority may (10 any of the following: 5 finance costs and expenses incidental to the projects of
6 (a) Coordinate groundwater remediation planning 6 the authority.
7 and implementation activities among the water districts, ( 7 (i) Enter into agreements with the watermaster and
8 the producers, and the authority. 8 other appropriate entities to do any of the following:
9 (b) Control and remove hazardous substances from 9 (1) Store water in the basin.
10 the basin. 10 (2) Purchase and import water for the benefit of the
11 (c) Construct,operate,and maintain water treatment 11 authority.
12 facilities which benefit the basin. 12 (3) Exchange water.
13 (d) Receive and expend funds obtained from all of the 13 (4) Distribute water to producers in exchange for
14 following sources: 14 ceasing or reducing groundwater extraction.
15 (1) Federal, state, or local governments. 15 (5) Regulate pumping in accordance with the
16 (2) Nongovernmental entities. 16 judgment.
17 (3) The proceeds from the issuance of bonds, notes, 17 (j) Own and operate facilities to extract, purify, and
18 warrants, and other indebtedness to finance treatment 18 treat water for the beneficial use of persons or property
19 projects which benefit the basin. 19 within the authority.
20 (4) Pumping right assessments. ( 20 (k) Acquire, within or outside the authority and
21 Sec.402. The authority may undertake projects which 21 within the state, by purchase, condemnation, or other
22 relate to, but are not limited to, efforts to correct water 22 legal means,all property,or rights in property, that the
23 quality problems due to volatile organic compounds, 23 authority determines to be necessary or proper for the
24 nitrates, and mineral salts. These projects shall be ( 24 purposes of the authority,except that the authority shall
25 undertaken pursuant to,and shall be consistent with, the 25 not exercise the power of eminent domain as to water,
26 basinwide plan adopted under Section 406 26 water rights, reservoirs, pipelines, water distribution
27 Sec.403. The authority may do any of the following: 27 systems,waterworks,or powerplants that are devoted to
28 (a) Employ agents and employees. 28 beneficial or public use. Eminent domain proceedings
29 (b) Make and enter into contracts. 29 may be brought by the authority for these purposes
30 (c) Sue and be sued in its own name and bring suits 30 pursuant to Title 7 (commencing with Section 1230.010)
31 to reeever cleanup Bests front responsible parties:,to the 31 of Part 3 of the Code of Civil Procedure.
32 extent authorized by Section 407, bring suits to recover, 32 (I) Act jointly or cooperate, within or outside the
33 from responsible parties, the removal and remedial , 33 boundaries of the authority, with the United States, the
34 action costs incurred by the authority. 34 state, a county, city, or district, the watermaster, or any
35 (d) Adopt a seal and alter it at pleasure. 35 corporation, or person to carry out this act.
36 (e) Acquire,construct,manage,maintain,and operate 36 (m) Carry on technical and other investigations of all
37 any buildings, works, or improvements, both inside and 37 kinds necessary to carry out the purposes of this act.
38 outside the boundaries of the authority. 38 (n) Levy pumping right assessments and impose
39 (f) Acquire, own, hold, or dispose of property both 39 charges for the sale of groundwater extracted and treated
40 inside and outside the boundaries of the authority. ( 40 by the authority to pay for the administrative costs of the
91 2'x1
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SB 1679 —14— —15— SB 1679
operation, and maintenance of groundwater cleanup
1 authority,to pay for the operation and maintenance costs 1 o P
2 of facilities including reasonable reserves for operation 2 facilities.
3 and maintenance costs, to repay warrants, notes, bonds, 3 (4) Provision for a public information and
4 and other evidence of indebtedness, to make payments 4 participation program.
5 pursuant to leases or installment sale agreements in 5 (5) Coordination with federal,state,and local entities.
6 connection with certificates of participation,and to make 6 (b) The basin-wide plan shall be consistent with the
7 payments pursuant to any other financial obligations. fl 7 National Contingency Plan and with ally applicable
8 Pumping right assessments may be levied on, and are 8 records of decision issued by the United States
9 payable by,public agency holders of prescriptive rights 9 Environmental Protection Agency, all requirements of
10 under the judgment. 10 the Los Angeles Regional Water Quality Control Board,
11 (o) Issue bonds, notes, warrants, other evidence of 11 including that board's Basin Plan, and all applicable
12 indebtedness or certificates of participation by in 12 agreements between federal, state, and local agencies
13 contracts payable from the levy of pumping right 13 engaged in cleanup activities. The basinwide plan shall
14 assessments, the imposition of charges for the sale of 14 consider the benefits to be achieved by the plan or any
15 groundwater extracted and treated by the authority, or 15 proposed project in relation to its economic impact on
16 with any other revenues legally available to the authority. 16 persons or entities within the boundaries of the authority.
17 Sec. 404. No power granted to the authority expands, 17 Sec. 407. (a) The authority may cooperate with the
18 limits, supersedes, or otherwise impairs any authority 18 Los Angeles Regional Water Quality Control Board and
19 granted to the watermaster under the judgment,except 19 the United States Environmental Protection Agency in
20 that any plan adopted by the authority pursuant to ( ' ' 20 their investigation and identification of persons or
21 Section 401 or 406 is,for purposes of the judgment,a basin 21 entities that are responsible for the contamination of the
22 cleanup plan adopted by a public governmental agency 22 basin.
23 with responsibility for groundwater management or 23 (b) Persons or entities responsible for the
24 cleanup.Any project undertaken by the authority which24 contamination of the basin shall cooperate with the
25 involves the pumping of groundwater from the basin is 1 25 authority in developing and implementing plans for the
26 subject to regulation in accordance with the judgment. 26 cleanup of the contamination.
27 Sec. 405. The authority may contract with 27 (c) The To the extent authorized under Section 107 of
28 appropriate entities to carry out the purposes of the act 28 the Comprehensive Environmental Response,
29 and the rules and regulations adopted pursuant to this 29 Compensation,and Liability Act of 1980,as amended (42
30 act. 30 U.S.C. Sec. 9607), or Chapter 6.8 (commencing with
31 Sec. 406. (a) The authority shall develop and adopt a 31 Section 25300) of Division 20 of the Health and Safety
32 basin/wide basinwide groundwater quality management 32 Code, the authority may pursue legal action against
33 and remediation plan.The authority shall cooperate with f- 33 persons or entities that are responsible for the
34 all appropriate entities for that purpose. The plan shall 34 contamination of the basin to recover all eests of the
35 include, but not be limited to, all of the following 35 removal or remedial action costs incurred by the
36 components: 36 authority for the cleanup of the contamination
37 (1) Characterization of basin contamination. 37 attributable to that person or entity, including the costs
38 (2) Development and• implementation of a 38 of enforcement and litigation.
39 comprehensive basin cleanup plan.
40 (3) A plan for financing the design, construction,
( " \
91 300 91 320
SB 1679 —14— —15— SB 1679
operation, and maintenance of groundwater cleanup
1 authority,to pay for the operation and maintenance costs 1 o P
2 of facilities including reasonable reserves for operation 2 facilities.
3 and maintenance costs, to repay warrants, notes, bonds, 3 (4) Provision for a public information and
4 and other evidence of indebtedness, to make payments 4 participation program.
5 pursuant to leases or installment sale agreements in 5 (5) Coordination with federal,state,and local entities.
6 connection with certificates of participation,and to make6 (b) The basin-wide plan shall be consistent with the
7 payments pursuant to any other financial obligations. (^ 7 National Contingency Plan and with any applicable
8 Pumping right assessments may be levied on, and are 8 records of decision issued by the United States
9 payable by, public agency holders of prescriptive rights 9 Environmental Protection Agency, all requirements of
10 under the judgment. 10 the Los Angeles Regional Water Quality Control Board,
11 (o) Issue bonds, notes, warrants, other evidence of 11 including that board's Basin Plan, and all applicable
12 indebtedness or certificates of participation by in 12 agreements between federal, state, and local agencies
13 contracts payable from the levy of pumping right 13 engaged in cleanup activities. The basin wide plan shall
14 assessments, the imposition of charges for the sale of 14 consider the benefits to be achieved by the plan or any
15 groundwater extracted and treated by the authority, or 15 proposed project in relation to its economic impact on
16 with any other revenues legally available to the authority. 16 persons or entities within the boundaries of the authority.
17 Sec.404. No power granted to the authority expands, 17 Sec. 407. (a) The authority may cooperate with the
18 limits, supersedes, or otherwise impairs any authority 18 Los Angeles Regional Water Quality Control Board and
19 granted to the waterrnaster under the judgment,except 19 the United States Environmental Protection Agency in
20 that any plan adopted by the authority pursuant to ( ' ' 20 their investigation and identification of persons or
21 Section 401 or 406 is,for purposes of the judgment,a basin 21 entities that are responsible for the contamination of the
22 cleanup plan adopted by a public governmental agency 22 basin.
23 with responsibility for groundwater management or 23 (b) Persons or entities responsible for the
24 cleanup.Any project undertaken by the authority which ,.., 24 contamination of the basin shall cooperate with the
25 involves the pumping of groundwater from the basin is 1 25 authority in developing and implementing plans for the
26 subject to regulation in accordance with the judgment. 26 cleanup of the contamination.
27 Sec. 405. The authority may contract with 27 (c) The To the extent authorized under Section 107 of
28 appropriate entities to carry out the purposes of the act 28 the Comprehensive • Environmental Response,
29 and the rules and regulations adopted pursuant to this 29 Compensation,and Liability Act of 1980,as amended (92
30 act. 30 U.S.C. Sec. 9607), or Chapter 6.8 (commencing with
31 Sec. 406. (a) The authority shall develop and adopt a 31 Section 25300) of Division 20 of the Health and Safety
32 basin/wide basin wide groundwater quality management 32 Code, the authority may pursue legal action against
33 and remediation plan.The authority shall cooperate with f• •
33 persons or entities that are responsible for the
34 all appropriate entities for that purpose. The plan shall 34 contamination of the basin to recover all eests of the
35 include, but not be limited to, all of the following 35 removal or remedial action costs incurred by the
36 components: 36 authority for the cleanup of the contamination
37 (1) Characterization of basin contamination. 37 attributable to that person or entity, including the costs
38 (2) Development and, implementation of a 38 of enforcement and litigation.
39 comprehensive basin cleanup plan.
40 (3) A plan for financing the design, construction, (
91 300 91 320
SB 1679 —16— — 17— SB 1679
,-
1 Article 5. Organization
i 1 the cities with pumping rights. The member and
2 2 alternate elected pursuant to this subdivision shall be city
3 Sec.501. The authority shall be governed by the Main 3 council members from cities with pumping rights.
4 Salt Gabriel Basin Water Quality Beek board. The 4 (b) One member and one alternate shall be elected by
5 powers and duties of the authority shall be exercised by 5 the cities without pumping rights. The member and
6 and through the board. 6 alternate elected pursuant to this subdivision shall be city
7 Sec. 502. (a) The board shall be composed of five f , ` 7 council members from cities without pumping rights.
8 members, three of whom are appointed by the water 8 Sec. 505. Each of the members elected by the cities
9 districts and two of whom are elected by the cities. 9 pursuant to Section 504 shall be elected according to the
10 (b) No person who, directly or indirectly,at the time 10 following procedure:
11 of election or appointment, receives, or during the 11 (a) A city with pumping rights may vote for
12 two-year period immediately preceding election or 12 candidates to be elected to represent cities with pumping
13 appointment received, 10 percent or more of his or her 13 rights. A city without pumping rights may vote for
14 income from any person or public entity subject to 14 candidates to be elected to represent cities without
15 regulation by, or that receives grants from or contracts 15 pumping rights.The number of votes which a city may
16 for work with, the authority may serve as a member of 16 cast is determined by the population of the city.Each city
17 the authority. 17 has one vote for each 10,000 residents or majority fraction
18 Sec. 503. The water district members and their 18 thereof,as determined by the most recent United States
19 alternates shall be appointed as follows: 19 decennial census data. The number of votes to which a
20 . (a) One member and one alternate shall be appointed ( ,• 20 city is entitled shall be computed by rounding the
21 by the Board of Directors of the Upper San Gabriel Valley 21 population of the city to the nearest 10.000 and dividing
22 Municipal Water District. The member and alternate 22 that number by 10,000. Each city has a minimum of one
23 appointed pursuant to this subdivision shall be elected 23 vote.
24 members of that board and shall be appointed by �.� 24 (b) An election for a city member shall be conducted
25 resolution adopted by a majority of that board. (` 25 at the board's final regular meeting of the calendar year
26 (b) One member and one alternate shall be appointed 26 preceding the expiration of the term of the office of that
27 by the Board of Directors of the San Gabriel Valley 27 city member.
28 Municipal Water District. The member and alternate 28 (c) Nominations for candidates for a city member
29 appointed pursuant to this subdivision shall be elected 29 elected by cities with pumping rights may be made by
30 members of that board and shall be appointed by 30 any city with pumping rights.Nominations for candidates
31 resolution adopted by a majority of that board. 31 for a city member elected by cities without pumping
32 (c) One member and one alternate shall be appointed 32 rights may be made by any city without pumping rights.
33 by the Board of Directors of the Three Valleys Municipal i ...-N 33 Each city may nominate only one candidate for each
34 Water District. The member and alternate appointed 34 office.Nomination shall be made by resolution of the city
35 pursuant to this subdivision shall be elected members of 35 council of the nominating city. All nominations shall be
36 that board and shall be appointed by resolution adopted 36 submitted to the authority at least 60,but not more than
37 by a majority of that board. 37 90, days preceding the meeting at which the election is
38 Sec.504. The city members and their alternates shall 38 to be held.
39 be elected as follows: 39 (d) The authority shall adopt procedures for
40 (a) One member and one alternate shall be elected by ( r-• 40 preparing and distributing ballots to each city eligible to
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SB 1679 — 18— — 19— SB 1679
I:1 1 the terms of the members shall commence on the first
2 vote in the areceligible Ballotsovote shallt ebt distributed5dysprior to allo 2 Monday in January and each member shall hold office for
2 cities which are to at least 45 days to
3 the meeting at which the election is to be held. Each 3 a term of four years and until the successor takes office.
4 ballot shall indicate the number of votes which the city 4 (b) With respect to the initial board members, the
5 is entitled to cast. 5 terms of the member appointed by the Three Valleys
6 (e) Each city shall cast all of its votes for one candidate 6 Municipal Water District and the member elected by the
7 for each office, by resolution of the city council. The r` 7 cities without pumping rights shall expire on January 1,
8 resolution casting the city's votes shall be delivered to the 8 1995, and the terms of the remaining members shall
9 authority at least 24 hours before the meeting at which 9 expire on January 1, 1997.
10 the election is held. Any resolutions not received by the 10 Sec.508. Any vacancy in the office of a member shall
11 authority 24 hours before the election may not be 11 be filled as follows:
12 counted. 12 (a) A vacancy in the office of a member or alternate
13 (f) (1) The candidate receiving the highest number 13 who was appointed by a water district shall be filled by
14 of votes cast by cities with pumping rights shall be elected 14 the appointing water district by a resolution adopted by
15 to fill the office representing cities with pumping rights. 15 a majority vote of the district governing board. The
16 The candidate receiving the next highest number of 16 person appointed to fill the vacancy shall meet the
17 votes cast by cities with pumping rights,who is not a city 17 qualifications applicable to the vacant office and shall
18 council member from the same city as the candidate 18 serve for the remaining term of the vacant office.
19 receiving the highest number of votes, is the alternate 19 (b) A vacancy in the office of a member or alternate
20 member. F r‘ 20 who was elected by cities shall be filled by a special
21 (2) The candidate receiving the highest number of ' 21 election called by the authority. Only those cities which
22 votes cast by cities without pumping rights shall be 22 elected the member or alternate to the office in which
23 elected to fill the office representing cities without 23 the vacancy has occurred are eligible to vote.
24 pumping rights.The candidate receiving the next highest ,---. 24 Nominations and balloting shall be conducted in the same
25 number of votes cast by cities without pumping rights, F 25 manner as a regular election,except that the date of the
26 who is not a city council member from the same city as 26 election and time periods shall be as prescribed by the
27 the candidate receiving the highest number of votes, is 27 authority. The member or alternate elected to fill a
28 the alternate member. 28 vacancy shall meet the qualifications applicable to the
29 (g) Not later than March 1, 1993, the joint powers 29 vacant office and shall serve for the remaining term of
30 authority shall call and conduct the election to elect the 30 the vacant office.
31 initial city members and alternates. Thereafter, the 31 Sec. 509. The board shall annually elect from its
32 election of city members shall be called and conducted by 32 membership a chairperson, vice chairperson, secretary,
33 the authority. ( , 33 and treasurer.The board may appoint additional officers
34 Sec.506. An alternate member shall act in the place, 34 and employ additional employees and assistants that may
35 and perform all of the duties,of the city member or water 35 be necessary or appropriate.
36 district member selected by the same cities or water 36 Sec.510. A majority of the board constitutes a quorum
37 district if that city member or water district member is 37 for transaction of business of the authority.
38 absent from a meeting of the authority or has vacated his 38 Sec. 511. Except as otherwise provided,all actions of
39 or her office until the vacancy is filled pursuant to this act. 39 the board shall be approved by an affirmative vote of a
40 Sec. 507. (a) Except as provided in subdivision (b), ( r • 40 majority of all of the members.
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SB 1679 — 18— —19— SB 1679
11 the terms of the members shall commence on the first
2 vote in the election. l Ballotsv shallet be t distributed5dysprior to allo 2 Monday in January and each member shall hold office for
2 cities which are eligible to vote at least 45 days to
3 the meeting at which the election is to be held. Each 3 a term of four years and until the successor takes office.
4 ballot shall indicate the number of votes which the city 4 (b) With respect to the initial board members, the
5 is entitled to cast. 5 terms of the member appointed by the Three Valleys
6 (e) Each city shall cast all of its votes for one candidate 6 Municipal Water District and the member elected by the
7 for each office, by resolution of the city council. The ( n 7 cities without pumping rights shall expire on January 1,
8 resolution casting the city's votes shall be delivered to the 8 1995, and the terms of the remaining members shall
9 authority at least 24 hours before the meeting at which 9 expire on January 1, 1997.
10 the election is held. Any resolutions not received by the 10 Sec.508. Any vacancy in the office of a member shall
11 authority 24 hours before the election may not be 11 be filled as follows:
12 counted. 12 (a) A vacancy in the office of a member or alternate
13 (f) (1) The candidate receiving the highest number 13 who was appointed by a water district shall be filled by
14 of votes cast by cities with pumping rights shall be elected 14 the appointing water district by a resolution adopted by
15 to fill the office representing cities with pumping rights. 15 a majority vote of the district governing board. The
16 The candidate receiving the next highest number of 16 person appointed to fill the vacancy shall meet the
17 votes cast by cities with pumping rights,who is not a city 17 qualifications applicable to the vacant office and shall
18 council member from the same city as the candidate 18 serve for the remaining term of the vacant office.
19 receiving the highest number of votes, is the alternate 19 (b) A vacancy in the office of a member or alternate
20 member. it (' 20 who was elected by cities shall be filled by a special
21 (2) The candidate receiving the highest number of ' 21 election called by the authority. Only those cities which
22 votes cast by cities without pumping rights shall be 22 elected the member or alternate to the office in which
23 elected to fill the office representing cities without 23 the vacancy has occurred are eligible to vote.
24 pumping rights.The candidate receiving the next highest24 Nominations and balloting shall be conducted in the sante
25 number of votes cast by cities without pumping rights, ff 25 manner as a regular election,except that the date of the
26 who is not a city council member from the same city as 26 election and time periods shall be as prescribed by the
27 the candidate receiving the highest number of votes, is 27 authority. The member or alternate elected to fill a
28 the alternate member. 28 vacancy shall meet the qualifications applicable to the
29 (g) Not later than March 1, 1993, the joint powers 29 vacant office and shall serve for the remaining tern of
30 authority shall call and conduct the election to elect the 30 the vacant office.
31 initial city members and alternates. Thereafter, the 31 Sec. 509. The board shall annually elect from its
32 election of city members shall be called and conducted by 32 membership a chairperson, vice chairperson, secretary,
33 the authority. 33 and treasurer.The board may appoint additional officers
.
34 Sec.506. An alternate member shall act in the place, 34 and employ additional employees and assistants that may
35 and perform all of the duties,of the city member or water 35 be necessary or appropriate.
36 district member selected by the same cities or water 36 Sec.510. A majority of the board constitutes a quorum
37 district if that city member or water district member is 37 for transaction of business of the authority.
38 absent from a meeting of the authority or has vacated his 38 Sec.511. Except as otherwise provided,all actions of
39 or her office until the vacancy is filled pursuant to this act. 39 the board shall be approved by an affirmative vote of a
40 Sec. 507. (a) Except as provided in subdivision (b), ( r• 40 majority of all of the members.
91 390
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—21— SB 1679
SB 1679 —20—
r r'
1 Sec. 512. Each member shall receive compensation 1 pumping right assessment pursuant to Section 602, the
2 for each meeting of the board attended, which amount 2 imposition of a charge for the sale of groundwater
3 shall be fixed from time to time by the board,but shall not 3 extracted and treated by the authority, or with other
4 exceed the amount allowed by law for members of the 4 available revenue.
5 board of a municipal water district. 5 Sec. 604. (a) The authority may issue negotiable
6 Sec. 513. All meetings of the board shall be open to 6 promissory notes and bond anticipation notes to acquire
7 the public and shall be held in accordance with the Ralph f r` 7 funds for any purposes authorized by this act subject to
8 M. Brown Act (Chapter 9 (commencing with Section 8 Sections 71810, 71811, 71812, 71813, and 71814 of the
9 54950) of Part 1 of Division 2 of Title 5 of the Government 9 Water Code.
10 (b) Negotiable premissery Promissory' notes, bond
10 Code). 11 anticipation notes, bonds, certificates of participation,
112 for theSeh. conduct of its affairs.514. The board shall adopt rules and regulations 12 and other evidences of indebtedness issued by the
13 Seec.. conduct 13 authority shall be payable from any revenues or moneys
515. Each of the officers, employees, and 14 of the authority available therefore and not otherwise
14 assistants shall serve at the pleasure of the board and shall the 15 pledged and shall be negotiable even though they are
15 per
hduties and have the authority as determined 16 payable from special finds.The authority may do any of
16 by m board. 17 the following with regard to any notes, bonds,
17
18 Article 6. Financial Provisions 18 certificates, or other evidences of indebtedness:
1919 (1) Sell them at public or private sale for prices, and
20 Sec.601. The authority may accept federal,state,and F f 20 upon terms and conditions,determined by the authority.
21 local funds which are available for purposes of 21 (2) Sell them as serial or term instruments or both.
22 groundwater cleanup and for otherwise implementing 22 (3) l Lave them bear dates,and mature at times,not to
23 this act. The authority may accept grants and donations 23 exceed 30 20 years from their respective dates, bear
24 to carry out the purposes of this act.The limits on bonded24 interest at rates, be payable at times, be in
25 indebtedness shall be exclusive of grants and donations. 25 denominations,be in forms,either coupon or registered,
26 Sec. 602. The authority may impose an annual 26 carry registration privileges,be executed in the manner,
27 pumping right assessment which may not exceed five 27 be payable in lawful money of the United States at places,
28 dollars ($5) per acre-foot to pay for administrative costs. 28 and be subject to terms of redemption as the ed enuto
re,
29 The amount of the assessment shall be established at an 29 trust agreement,or resolution of redemption g
30 amount equal to the amount needed toay for 30 those instruments provides.
p 31 (4) Secure them by a trust agreement or indenture by
31 administrative costs. The assessment authorized by this 32 and between the authority and a corporate trustee or
32 section shall not be used to replace federal,state,or other 33 trustees, which may be the Treasurer et any trust
34 See
33 moneywhich is available to the authority. 1..- 34 company or bank having the powers of a trust company
c.. 603. The authority may isssuesue warrants, in an 35 within or outside the state. 'The trust agreement,
35 aggregate amount not to exceed four hundred thousand 36 indenture,or the resolution providing for the issuance of
36 dollars ($400,000),to pay for the costs of formation of the 37 the instruments,may pledge or assign the revenues of the
37 authority. The warrants may bear interest at a rate not 38 authority under the provisions of this act.The indenture,
38 exceeding 8 percent per year from the date of issuance 39 trust agreement,or resolution providing far the issuance
39 until funds aref formation
h llpaybe repaide warrants.theWlevy for r' 40 of the instruments may contain provisions for protecting
40 the costs of formation shall be by levy of a f
91 420
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-23— SB 1679
SB 1679 —22—
F t-.
1 and enforcing the rights and remedies of the holders that 1 duties required by this act or by the resolution,indenture,
2 are determined by the authority to be reasonable and 2 or trust agreement to be performed by the authority or
3proper and not in violation of law;including paptietileoly 3 by any officer,employee, or agent thereof.
4 these previsions that have been speeifieallyauthorized to 4 (e) The authority may provide for the issuance of
5 be ineludcd in any reselutien of the authority authorizing 5 instruments of debt of the authority for the purpose of
6 the intrt mems: Alty trust . Any trust agreement or 6 refunding any instruments of debt or any series or issue
7 indenture may set forth the rights and remedies of the ( r`' 7 of instruments of outstanding debt of the authority,
8 holders and of the trustee or trustees, and may restrict 8 including the payment of any redemption premium
9 the individual right of action of holders. In addition, the 9 thereon and any interest accrued, or to accrue, to the
10 indenture, trust agreement, or resolution may contain 10 date of redemption and until the purchase or maturity
11 other provisions determined by the authority to be 11 of instruments of debt.
12 reasonable and proper for the security of the holders. 12 (f) Any instruments of debt issued under this act,their
13 (c) Any evidence of indebtedness issued under this act 13 transfer, and the income therefrom, are not subject to
14 does not constitute a debt of the state or of any political 14 taxation by the state or any political subdivision of the
15 subdivision thereof or a pledge of the faith and credit of 15 state.
16 the state or of any political subdivision, other than the 16 (g) The state does pledge to, and agree with, the
17 authority, but shall be payable solely from the funds of 17 holders of the instruments of debt issued pursuant to this
18 the authority specified in this act.All instruments of debt 18 act,and with those parties who may enter into contracts
19 shall contain on the face thereof a statement to the effect 19 with the authority pursuant to the provisions of this act,
20 that neither the state nor the authority is required to pay ( r` 20 that the state will not limit, alter, or restrict the rights
21 the same, or the interest thereon, except from certain 21 vested in the authority to fulfill the terms of any
22 revenues of the authority and that neither the faith and 22 agreements made with the holders of instruments of debt
23 credit nor the taxing power of the state or of any political 23 authorized by this act, and with the parties who may
24 subdivision is pledged to the payment of the principal of, f t•-• 24 enter into contracts with the authority pursuant to the
25 or the interest on,those bends instruments.The issuance 25 provisions of this act, or in any way impair the rights or
26 of instruments of debt under the provisions of this act 26 remedies of the holders of the instruments of debt or the
27 shall not require the state or any political subdivision 27 parties until the instruments of debt, together with
28 thereof to levy or to pledge any form of taxation or to 28 interest thereon, are fully paid and discharged and the
29 make any appropriation for their payment. 29 contracts are fully performed on the part of the authority.
30 (d) Any holder of instruments of debt issued under 30 The authority as a public body corporate and politic may
31 this act or any of the coupons appertaining thereto, and 31 include the pledge herein made in its heeds debt
32 the trustee or trustees under any indenture or trust 32 instruments and contracts.
33 agreement,except to the extent the rights granted in this f ,- , 33 Sec. 605. The authority may impose an annual
34 act may be restricted by any resolution authorizing the 34 pumping right assessment, not to exceed thirty-five
35 issuance of, or any such indenture or trust agreement 35 dollars ($35) per acre-foot, to retire bends awl
36 securing,the bends instruments,may,either at law or in 36 eertifieates of participation and to pay for eperatieer9 find
37 equity,by suit,action, mandamus, or other proceedings, 37 maintenanee of prejeets eenatrueted by or ler the
38 protect and enforce any and all rights granted by state 38 authority. The authority shall impose art assessneent
39 to this seetierr construct facilities and acquire
39 law, this act, resolution, indenture, or trust agreement, roms pursuant
to retire promissory notes, bond anticipation
40 and may enforce and compel the performance of all r r• 40 p
91 460
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-23— SB 1679
SB 1679 —22—
- (-
1 and enforcing the rights and remedies of the holders that 1 duties required by this act or by the resolution,indenture,
2 are determined by the authority to be reasonable and 2 or trust agreement to be performed by the authority or
3proper and not in violation of law;including pa tieularly 3 by any officer,employee, or agent thereof.
4 these previsions that have been speeifically authorised to 4 (e) The authority may provide for the issuance of
5 be ineluded in any resolution of the authority authorizing 5 instruments of debt of the authority for the purpose of
6 the instruments: Any trust . Any trust agreement or 6 refunding any instruments of debt or any series or issue
7 indenture may set forth the rights and remedies of the (( r' 7 of instruments of outstanding debt of the authority,
8 holders and of the trustee or trustees, and may restrict 8 including the payment of any redemption premium
9 the individual right of action of holders. In addition, the 9 thereon and any interest accrued, or to accrue, to the
10 indenture, trust agreement, or resolution may contain 10 date of redemption and until the purchase or maturity
11 other provisions determined by the authority to be 11 of instruments of debt.
12 reasonable and proper for the security of the holders. 12 (f) Any instruments of debt issued under this act,their
13 (c) Any evidence of indebtedness issued under this act 13 transfer, and the income therefrom, are not subject to
14 does not constitute a debt of the state or of any political 14 taxation by the state or any political subdivision of the
15 subdivision thereof or a pledge of the faith and credit of 15 state.
16 the state or of any political subdivision, other than the 16 (g) The state does pledge to, and agree with, the
17 authority, but shall be payable solely from the funds of 17 holders of the instruments of debt issued pursuant to this
18 the authority specified in this act.All instruments of debt 18 act,and with those parties who may enter into contracts
19 shall contain on the face thereof a statement to the effect 19 with the authority pursuant to the provisions of this act,
20 that neither the state nor the authority is required to pay 1c i' ' 20 that the state will not limit, alter, or restrict the rights
21 the same, or the interest thereon, except from certain 21 vested in the authority to fulfill the terms of any
22 revenues of the authority and that neither the faith and 22 agreements made with the holders of instruments of debt
23 credit nor the taxing power of the state or of any political 23 authorized by this act, and with the parties who may
24 subdivision is pledged to the ppayment of the principal of, 24 enter into contracts with the authority pursuant to the
25 or the interest on,those bonds instruments.The issuance I 25 provisions of this act, or in any way impair the rights or
26 of instruments of debt under the provisions of this act 26 remedies of the holders of the instruments of debt or the
27 shall not require the state or any political subdivision 27 parties until the instruments of debt, together with
28 thereof to levy or to pledge any form of taxation or to 28 interest thereon, are fully paid and discharged and the
29 make any appropriation for their payment. 29 contracts are fully performed on the part of the authority.
30 (d) Any holder of instruments of debt issued under 30 The authority as a public body corporate and politic may
31 this act or any of the coupons appertaining thereto,and 31 include the pledge herein made in its btu dept
32 the trustee or trustees under any indenture or trust 32 instruments and contracts.
33 agreement,except to the extent the rights granted in this ,-- . 33 Sec. 605. The authority may impose n annual
34 act may be restricted by any resolution authorizing the f a 34 pumping right assessment, not to exceed thirty-five
35 issuance of, or any such indenture or trust agreement 35 dollars ($35) per acre-foot, to retire bends and
36 a rtifleatcs of per`tieipation and to payr for operations
36 securing,the bends instruments,may,either at law or in 37 maintenance of projects eenstt:reted by or for the
37 awl
protect andbsuit,enforceen,mandamus, or soger grantedb proceedings,e 38 authority= The authority shall impose an asseasnrrent
38 on, and all rights by state 39 pursuant to this seetiee construct facilities and acquire
39 law, may act,n orcelution, indenture,melt or trustoragreement,of all $ r' 90 property, to retire promissory notes, bond anticipation
40 and enforce and compel the performance all
91 4,'a,
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SB 1679 —24— —25— SB 1679
1 notes, bonds and certificates of participation and other 1 considered and a statement of the amount of the
2 evidences of indebtedness,and to pay for operations and 2 assessment, shall be mailed, at least 90 days prior to the
3 maintenance of projects constructed by and for the 3 hearing, to each producer, each city, the watermaster,
4 authority. The authority shall impose an assessment 4 and any interested party who files a written request with
5 pursuant to this section for operation and maintenance 5 the authority for notice of any hearing on a new or
6 purposes only if, and to the extent that, money for 6 increased assessment.
7 operation and maintenance purposes is not received f 1' 7 (2) The authority shall also cause notice of the hearing
8 from other sources after reasonable efforts have been 8 to be posted at least 45 days prior to the date of the
9 made to secure that funding. However, no assessment 9 hearing at the entrance to the location where the hearing
10 shall be imposed for water extracted pursuant to a 10 will be held and to be published,pursuant to Section 6066
11 conjunctive use storage agreement between the 11 of the Government Code, in a newspaper of general
12 producer and the watermaster, which the authority has 12 circulation printed and published within the boundaries
13 approved. 13 of the authority,if there is one or,if not,in a newspaper
14 Sec. 606. A pumping right assessment imposed 14 printed and published in Los Angeles County.
15 pursuant to this act shall be imposed upon the holder of 15 (d) Each entity that operates a public water system
16 a prescriptive pumping right at a uniform rate per 16 for retail service within the boundaries of the authority
17 acre-foot of prescriptive pumping right. 17 shall prepare and include with its regular bill for charges
18 Sec.607. The authority may exempt a producer from 18 sent to its customers a notice of the hearing at least 15
19 all or part of the annual pumping right assessment 19 days prior to the hearing.The notice shall read as follows:
20 established pursuant to Section 605 for water pumped f r` 20
21 and treated from a contaminated well if, with the prior 21 Notice of Public Hearing
22 approval of the authority for the project, the producer 22
23 funds the design and construction of the wellhead 23
24 treatment system for that well. et r, 24 On , at , at
25 Sec. 608. The authority may annually adjust the 25 (date) (time)
26 maximum assessment impesed assessments authorized 26 , the Board of Directors of the
27 pursuant to this act by an amount not to exceed the 27 (address)
28 percentage change in the United States Consumer Price 28 3 San Gabriel Basin Water Quality Authority
29 Index for the Los Angeles/Anaheim/Riverside area 29 will hold a protest hearing concerning a proposed
30 between January 1, 1993,and the date of the adjustment. 30 pumping right assessment of
31 Sec.609. (a) The authority may,by resolution of the 31 (amount)
32 board, impose a pumping right assessment pursuant to 32 per acre-foot of groundwater produced. If added to
33 Section 605 only in accordance with this section and r r s 33 the water bill, the assessment would amount to
34 Sections 610 to 614, inclusive. 34 approximately per month for an
35 (b) Prior to levying a new assessment or approving an 35 (amount)
36 increase in an existing assessment, the authority shall 36 average residential customer. Registered voters
37 hold at least one hearing at which presentations may be 37 seeking to protest the proposed assessment shall
38 made. 38 do so in a written communication filed with the
39 (c) (1) Notice of the time and place of the hearing, 39 Authority at not
40 including a general explanation of the matter to be i r` 40 (address)
91 470 91 490
SB 1679 —26— —27— SB 1679
1. t ,
1 Sec. 614. (a) If the board imposes an assessment
1 later than the time set for the hearing. Questions
2 pursuant to Section 605, the board may,by resolution,
2 concerning the assessment or the protest 3 continue the assessment in successive years at the same
3 hearing should be directed to the Authority 4 or reduced rate.
4 at 5 (b) Prior to continuing the assessment, the
5 (telephone) 6 authority shall hold at least one hearing at which
6 'T 1-` 7 presentations may be made.
7 Sec. 610. At the time and place set forth in the 8 (c) The authority shall cause notice of the intent to
8 notice, the board shall conduct the hearing, and shall 9 adopt the resolution to be published pursuant to
9 consider all objections or protests, if any, to the 10 paragraph (2) of subdivision (c) of Section 609, and
10 resolution referred to in the notice, and may continue 11 shall consider any and all objections at the time and
11 the hearing from time to time. Upon the conclusion of 12 place set forth in the notice.
12 the hearing, the board may adopt, revise, reduce, or 13 (d) The board shall, at the time and place set forth
13 withdraw the assessment. The board shall make its 14 in the notice, conduct the hearing and consider any
14 determination on the assessment described in the 15 objections or protests to the assessment.The board may
15 resolution, and the determination is final. 16 overrule any and all objections. The board may,
16 Sec. 611. Any registered voter seeking to protest 17 thereafter,adopt,reduce,or withdraw the assessment.
17 the adoption or increase of an assessment shall do so in 18 (e) The determination of the board is final.
18 a written communication filed with the authority not 19 (f) This section applies to the continuation of a
19 later than the time set for the hearing. A protest byat T n 20 previously imposed assessment only if the board does
20 registered voter shall include the name and residence
21 address of the.person making the protest and shall be 21 not propose to increase the amount of the assessment.22
22 signed and dated. A protest may be withdrawn at any 23 Article 7. Miscellaneous
23 time before the determination on the assessment by 24
24 the board. , -t ,-• 25 Sec. 701. (a) The joint powers authority is
25 Sec.612. If the board receives protests that are not 26 dissolved upon the initial election of the city members
26 withdrawn at the time of determination by the board, 27 pursuant to Section 505. The authority succeeds to all
27 which represent 50 percent of the registered voters 28 the properties,rights, obligations,and liabilities of the
28 within the authority, no further proceedings may be 29 joint powers authority on the date of its dissolution.
29 conducted to adopt or increase an assessment until one 30 (b) Any and all actions by or against the joint powers
30 year from the date of the initiation of the protest 31 authority pending at the time of its dissolution may he
31 procedure.
32 Sec. 613. If the erit�r board receives protests 32 prosecuted to final judgment by or against the
33 that are not withdrawn at the time of determination by N. ' 33 authority.
34 the board,which represent at least 15 percent,but less 34 (c) After the effective date of the dissolution of the
35 joint powers authority,no action may be brought for or
35 than 50 percent, of the registered voters within the 36 against the dissolved joint powers authority or its
36 authority, the board may adopt, revise, change, or 37 commissioners, officers, or employees, but may he
37 reduce an assessment,but the adoption or modification 38 prosecuted by or against the authority.
38 of an assessment is not effective until approved by a 39 Ste, 702. This act shall be liberally construed to
39 authoriy of the voters in an election held within the 40 carry out its purposes.
40 authority.
SI 550
—27— SB 1G79 ,
Sia 1679 —26— �.•
1 Sec. 614. (a) If the board imposes an assessment -
g. 2 pursuant to Section 605,the board may,by resolution,
1 later than the time set for the hearing. Questions
2 concerning the assessment or the protest 3 continue the assessment in successive years at the same
3 hearing should be directed to the Authority 4 or reduced rate.
4 at 5 (b) Prior to continuing the assessment, the
5 (telephone) 6 authority shall hold at least one hearing at which
6 ,t 1-' 7 presentations may be made.
7
8 Sec. 6he a the time and place ear forth in the
8 (c)se The ns may
authority shall cause notice of the intent to
8 notice, the board shall conduct the hearing, and shall 9 adopt the resolution to be published
dof i pursuanton 09, a1to
9 consider all objections or protests, if any, to the 10 paragraph (2) of subdivision (c)
10 resolution referred to in the notice,and may continue d
11 shall consider any and all objections at the time and
11 the hearing from time to time.Upon the conclusion of 12 place set forth in the notice.
12 the hearing, the board may adopt, revise, reduce, or 13 (d) The board shall,at the time and place set forth
withdraw the assessment. The board shall make its 14 in the notice, conduct the hearing and consider any
13 15 objections or protests to the assessment.The board may
14 determination the assessment described in the
15 resolution, and the determination is final. 16 overrule any and all objections. The board may,
16 Sec. 611. Any registered voter seeking to protest 17 thereafter,adopt,reduce,or withdraw the assessment.
17 the adoption or increase of 18 (e) The determination of the board is final.
assessment shall o so in 19 (f) This section applies to the continuation of a
18 a written communication fillee d with the authority not
19 later than the time set for the hearing. A protest by o a 20 previouslyeimposed Increase the amount of the board
dassessment.
20 registered voter shall include the name and residence 21 not p p
21 address of the.person making the protest and shall be 22
protestbe withdrawn at any Article 7. Miscellaneous
22 signed and dated. may
23 time before the determination on the assessment by / -1 r24
24 the board. 25 Sec. 701. (a) The joint powers authority is
of
26 withdrawn the time of determination
25 Sec.612. If the board receives protests that are not 26 dissolved upon the initial election the city members
27 pursuant to Section 505. The authority succeeds to all
27 which represent 500percent of the registered the board,voters 28 the properties,rights,obligations,and liabilities of the
28 within the authority, no further proceedings may be 29 joint powers authority on the date of its dissolution.
30 (b) Any and all actions by or against the joint powers
t
29 conducted toadopt or increase an assessment until one 31 authority pending at the time of its dissolution may
30 year from the date of the initiation of the protest 32 prosecuted to final judgment by soro against the
31 procedure. board receives protests 33 authority.
be
34 (c) After the effective date of the dissolution of the
32 Sec. 613. If the ertNmriti �'
33 that are not withdrawn at the time of determination by
34 the board,which represent at least 15 percent,but less 35 joint powers authority,no action may be brought for or
35 than 50 percent, of the registered voters within the 36 against the dissolved joint powers authority or its
36 authority, the board may adopt, revise, change, or 37 commissioners, officers, or employees, but may be
38 prosecuted by or against the authority.
37 reduce an assessment,s but the adoption or modification 39 Sec. 702. This act shall be liberally construed to
38 of an assessmentfthenotis effectiveanel until approved bye 40 carry out its Thisact purposes.
40 majorityauthoiof the voters in an election held within the
40 authority.
91 5511
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SB 1679 —28—
—29— SB 1679
1 Sec. 703. Except for Section 705, this act shall 1 to Article 4 (commencing with Section 401).
2 become inoperative when both of the following have I 2 Sec. 706. his (a) Except as provided in this
3 occurred: 3 section, this act shall remain in effect only until January
4 (a) The State Water Resources Control Board, with 4 1, 1998, and as of that date is repealed, unless a later
5 the concurrence of the State Department of Health 5 enacted statute, which is enacted before January 1,
6 Services, determines, in writing, that substantially all 6 1998, deletes or extends that date.
7 public water system wells within the basin are 7 (b) Upon the repeal of this act, the assets and debts
8 pumping water that is not contaminated, or not likely 8 of the authority shall be administered as follows:
9 to become contaminated, in excess of federal or state 9 (I) The Los Angeles Regional Water Quality
10 safe drinking water standards.The authority shall pay 10 Control Board shall dispose of the property and assets
11 a fee to the State Water Resources Control Board and 11 as appropriate. The Los Angeles Regional Water
12 to the State Department of Health Services, 12 Quality Control Board shall receive reimbursement for
13 respectively,equal to the reasonable costs incurred by 13 actual costs incurred related to the disposition of the
14 those agencies pursuant to this subdivision. 14 property and assets. The cost recovery shall be from
15 (b) All contracts, and bonds or other evidences of 15 the proceeds of the disposition pursuant to this section.
16 indebtedness,executed or issued by or on behalf of the 16 The proceeds, if any, of the disposition shall be
17 authority have been satisfied. 17 transferred to the Treasurer to be applied to pay the
18 Sec. 704. (a) The revenues of the authority 18 debts of the authority and,if any proceeds remain,shall
19 collected from the assessment authorized by Section 19 be transferred to the Treasurer for deposit in the
20 605 and used by the authority to construct, or 20 Hazardous Substance Cleanup Fund for use in
21 financing groundwater contamination investigation
21 contribute to the construction of, capital projects for
22 the cleanup of any site that has been listed on the 22 and remediation in the basin.Preference shall be given
23 National Priorities List established pursuant to 23 in the disposition of assets of the authority to transfers
24 subparagraph (B) of paragraph (8) of Section 105 of 24 to producers who may be able to use the assets for the
25 the Comprehensive Environmental Response, 25 benefit of water distribution systems and to provide for
26 Compensation, and Liability Act of 1980, as amended 26 continued operation and maintenance of the assets in
27 (42 U.S.C. Sec. 9605 (8)(B)) and is located within the 27 order to further the purposes of this act.
28 Main San Gabriel Basin shall be credited to the state's 28 (2) The Treasurer shall administer the payment of
29 10-percent cost share obligation for capital costs under 29 debts of the authority. The Treasurer shall apply the
30 any program undertaken with the United States 30 proceeds from the disposition of assets to the payment
31 Environmental Protection Agency to clean up the sites. 31 of the debts. If debts remain after application of the
32 (b) Nothing in this section precludes the authority 32 proceeds from disposition of assets, the Treasurer may
33 from receiving from state agencies grants or loans for 33 continue to collect, in lieu of the authority, the
34 purpose of the cleanup of contaminated groundwater. ) 34 pumping right assessments authorized under either
35 Any such state grant or loan shall also be credited to the 35 (A) Section 602 if the debt relates to administrative
36 state's 10-percent cost share obligation. 36 costs or (B) Section 605 if the debt is to repay warrants,
37 Sec. 705. On or before January 1, 1997, the Los 37 notes, bonds, and other evidences of indebtedness, or
38 Angeles Regional Water Quality Control Board shall I 38 both, to make payments pursuant to leases or
39 report to the Legislature on the progress of the 39 installment sale agreements in connection with
40 authority with regard to actions undertaken pursuant40 certificates of participation, to pay for operation and
91 580
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SB 1679 —30—
1 maintenance costs of facilities, and to make payments
2 pursuant to any other financial obligations. All
3 provisions set forth in Article 6 (commencing with
4 Section 601) relating to the levy and collection of the
5 pumping right assessments are not repealed and shall
6 continue in effect until the debts of the authority are
7 paid,as determined by the Treasurer, who shall notify
8 the Secretary of State. Upon receipt by the Secretary
9 of State of the Treasurer's notice, Article 6
10 (commencing with Section 601) is repealed. The
11 Treasurer's authority to levy and collect assessments
12 under this act is limited according to the provisions of
13 this act and shall cease when all debts of the authority
14 have been paid.
15 SEC.2. if any provision of this act or the application
16 thereof to any person or circumstances is held invalid,
17 that invalidity shall not affect other provisions or
18 applications of the act which can be given effect
19 without the invalid provision or application,and to this
20 end the provisions of this act are severable.
21 SEC. 3. Notwithstanding Section 17610 of the
22 Government Code, if the Commission on State
23 Mandates determines that this act contains costs
24 mandated by the state, reimbursement to local n
25 agencies and school districts for those costs shalt be
26 made pursuant to Part 7 (commencing with Section
27 17500) of Division 4 of Title 2 of the Government Code.
28 If the statewide cost of the claim for reimbursement
29 does not exceed one million dollars ($1,000,000),
30 reimbursement shall be made from the State Mandates
31 Claims Fund. Notwithstanding Section 17580 of the
32 Government Code, unless otherwise specified in this
33 act,the provisions of this act shall become operative on 'r
34 the same date that the act takes effect pursuant to the
35 California Constitution.
0
91 590
,
1/ SB 1679 —30— --N, '
1 1 maintenance costs of facilities, and to make payments
2 pursuant to any other financial obligations. All
3 provisions set forth in Article 6 (commencing with
4 Section 601) relating to the levy and collection of the
5 pumping right assessments are not repealed and shall
6 continue in effect until the debts of the authority are
7 paid,as determined by the Treasurer, who shall notify '
8 the Secretary of State. Upon receipt by the Secretary i
9 of State of the Treasurer's notice, Article 6
10 (commencing with Section 601) is repealed. The
11 Treasurer's authority to levy and collect assessments
12 under this act is limited according to the provisions of I
13 this act and shall cease when all debts of the authority I
14 have been paid.
15 SEC.2. 1f any provision of this act or the application
16 thereof to any person or circumstances is held invalid,
17 that invalidity shall not affect other provisions or
18 applications of the act which can be given effect
19 without the invalid provision or application,and to this
20 end the provisions of this act are severable.
21 SEC. 3. Notwithstanding Section 17610 of the
22 Government Code, if the Commission on State
23 Mandates determines that this act contains costs
24 mandated by the state, reimbursement to local
25 agencies and school districts for those costs shall be
26 made pursuant to Part 7 (commencing with Section
27 17500) of Division 4 of Title 2 of the Government Code.
28 If the statewide cost of the claim for reimbursement
29 does not exceed one million dollars ($1,000,000),
30 reimbursement shall be made from the State Mandates
31 Claims Fund. Notwithstanding Section 17580 of the i
32 Government Code, unless otherwise specified in this
33 act,the provisions of this act shall become operative on ", I
34 the same date that the act takes effect pursuant to the
35 California Constitution.
0 I
91 590
AGENDA ITEM
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: ROY E. BRUCKN:r r RECTOR OF COMMUNITY DEVELOPMENT
VIA: HENRY GARCIA, CITY ADMINISTRATOR
DATE: DECEMBER 7, 1992
SUBJECT: A PROPOSED AMENDMENT TO THE MOBILEHOME RENT STABILIZATION
ORDINANCE, ENACTING LIMITED VACANCY CONTROL
FACTS
The City Council recently adopted a mobilehome rent stabilization
ordinance, which became effective on February 6, 1992 . The product
of a joint negotiation effort between the Tenants and Park Owners,
the Ordinance also contained a vacancy control provision, which the
Ordinance suspended, pending the outcome of the court case Yee v.
City of Escondido. Since that case has now been decided, CHAMP
(Citizens Helping Azusa's Mobilehome Parks) , has requested that the
suspension be lifted, and limited vacancy control be instituted.
Vacancy control is the act of controlling the rent on a mobilehome
space when it becomes vacant. CHAMP feels that without such
control they would have difficulty selling their coaches due to the
specter of higher space rents . The Park Owners ' position has been
that they should be able to charge market-rate rents . The new
tenants would not be hurt by the starting rent, because if the rent
is too high, the new tenants simply would not rent.
ANALYSIS
The argument in Yee v. City of Escondido explored whether the
operation of State law combined with local rent control ordinances
resulted in "physical occupation" of mobilehome parks, requiring
local jurisdictions who impose rent control, to compensate the park
owners for the loss in value. The U. S. Supreme Court in recently
deciding Yee, rejected that theory.
Even though the park owners in Yee have the ability to claim a
"regulatory taking" in a new suit, CHAMP has requested that the
suspension of vacancy control be lifted. In pursuit of that
objective, CHAMP has met with Park Owners in an attempt to reach
mutually acceptable new language in the Ordinance.
Due to a great willingness to compromise and extraordinary efforts
on the part of Mrs . Barbara Knaus of CHAMP and Mr. Kendall, owner
of Caravan and Azusa Mobilehome Park, the Tenants and Park Owners
have agreed on an ordinance amendment proposal, which is presented
in Exhibit B. This ordinance amendment would limit rent increases
on vacant spaces to 8% . Coaches owned by Park Owners, however,
would not have this limitation.
One issue of concern on the part of the City is whether the City
has any exposure to a future "takings" claim from the Park Owners
by enacting the proposed limited vacancy control . This is
discussed in detail by the City Attorney, whose report is attached
as Exhibit A.
CONCLUSION
With respect to the issue of the City' s exposure to a challenge on
vacancy control, the City Attorney has indicated that there would
be some risk, but it would be difficult to determine whether the
proposed ordinance amendment would effect a "taking" , or to predict
if any takings claim would be successful.
The Park Owners have agreed to the Ordinance amendment. While it
is not likely that the Owners would file suit in light of such
agreement, there are no guarantees that future Owners would hold
the same view. This should be considered by the City Council in
its deliberations .
RECOMMENDED ACTION
The City Council should conduct an informal hearing to take
testimony, then introduce the Ordinance for adoption, if deemed
appropriate.
EXI-1 u11T A
BARBOSA GARCIA 8 BARNES
A PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION
HENRY S. BARBOSA. P. C.* ATTORNEYS AT LAW TELEPHONE
BONIFACIO BONNY GARCIA SUITE 390 (213)889-6600
DOUGLAS D. BARNES 500 CITADEL DRIVE FACSIMILE
PETER E. LANGSFELD
PAUL S.JAJAN LOS ANGELES,CALIFORNIA 90040 (213) 889-6605
WILLIAM A.VALLEJOS
JONATHAN B. STONE 4
KENNETH T. FONG E
FRANCISCO LEAL
N
AUGUSTIN R. JIMENEZa
MEMORANDUM / c L
OF COUNSEL of,� .^ V
NORMAN LIEBERMAN
*A PROFESSIONAL CORPORATION
TO: Roy E. Bruckner •
•
A�yF
FROM: Douglas D. Barnes `t 4'1.
RE: Mobilehome Rent C trol
DATE: October 21, 1992
FACTS
In January 1992 the City Council implemented mobilehome
rent control by enacting Ordinance 92-04. The Ordinance includes
a "vacancy control" provision which requires that a new tenant not
pay a higher rent than that paid by the tenant's immediate
predecessor. The Ordinance, however, suspends the vacancy control
provision until it is activated by a subsequent vote of the City
Council. Consequently, landlords, for the time being, are
permitted freely to raise rents on vacated units.
The "suspension" of the vacancy control provision was
included in the Ordinance to safeguard the City against a certain
type of takings claim which had been recognized by some courts.
Specifically, these courts had concluded that the combined
operation of California law and local vacancy controls effected a
"physical occupation" of a mobilehome park, thereby requiring the
local jurisdiction imposing the vacancy control to compensate the
property owner for the resulting lost value. Although many felt
that the physical occupation argument was highly artificial and
wrong, it nonetheless posed a risk to cities interested in
restricting rent increases on mobile home pads immediately
following the departure of a tenant. The suspension in the
Ordinance foreclosed such claims.
However, recently, the United States Supreme Court
rejected the physical occupation theory. Yee v. City of Escondido,
112 S.Ct. 1522 ( 1992) . Now that Yee has been decided, tenants in
the City's parks have requested that the suspension be lifted and
JBS\462.M 1
that a modified form of vacancy control be approved by the City
Council. A draft of such an ordinance has been prepared by tenant
representatives and submitted to the City for consideration.
The proposed ordinance permits landlords to charge higher
rents to a new tenants than to an immediate predecessor, but caps
any increase at 8%. 1 Such a cap applies to any lease executed on
or after February 6, 1992, and, accordingly, can require a rollback
of rents allowed under an existing contract. Such a rollback,
however, would only become operative on the effective date of the
ordinance (30 days following its enactment) and no rebate of
previously paid rents would be required.
After a new tenant occupies a space, "post-occupancy"
adjustments in rents are permitted in conformity with the current
Ordinance. These adjustments include an annual increase in rent
equal to the CPI-W (subject to certain caps and preconditions) .
Greater or more frequent rent increases are possible following the
approval of an application submitted pursuant to Sections 5.56.067
and 5.56.070.
Although the Yee court rejected the physical occupation
theory, landlords are still free to argue that a vacancy control
provision deprives the owners of benefits associated with their
property. Potentially, a landlord could argue that the vacancy
control provisions (although not effecting a physical occupation of
the mobile home park) effect a regulatory taking of the property
requiring the City to compensate the owner for the loss.
Apparently, past counsel expressed concern over such arguments.
This memorandum addressees these concerns.
1 No increase is permitted concurrently with a transfer of
ownership relating to a divorce, inheritance or other similar
event.
JBS\462.M 2
QUESTIONS PRESENTED
Does the proposed vacancy control provision effect
a "regulatory taking?"
Does the proposed rollback impermissably interfere with
a landlord's constitutionally protected contract rights?
SUMMARY
Now that the Supreme Court has rejected the physical
occupation theory, it is unlikely that the proposed vacancy control
ordinance effects a taking of the landlords' property. The
remaining arguments are, in large part, weak. A landlord
contending that the City's vacancy control is confiscatory will be
successful only if the regulation deprives the owner of a fair
return on his or her investment. Ultimately this argument,
however, would need to be framed as an attack on the entire
ordinance, not just the vacancy control. Moreover, to analyze
whether the regulation deprives the owners of a fair return, it
would be necessary (as a preliminary matter) to evaluate the cash
flows, expenses and projected profits of the various parks.
Unfortunately, such an analysis (which is financial rather than
legal) is rendered even more difficult because the courts have not
defined or specified what returns are reasonable. However, the
number of rent control regulations presently in place when
contrasted with the general invulnerability of these regulations
against attack suggest that most regulations, (absent new
developments or clarifications in the law) are valid and
enforceable.
ANALYSIS
Introduction. A determination whether an ordinance
effects a regulatory taking is an inexact calculus. A regulation
which effects a "physical occupation" of property is per se a
compensable taking, but the Supreme Court has determined that
mobilehome vacancy controls are not physically confiscatory. An
ordinance can also produce a regulatory taking without effecting a
physical occupation, however, the Supreme Court has never
articulated a definitive test. The potential for unpredictability
in this area is acknowledged by the Court. The Supreme court has
ruled that the area is not susceptible to exact rules because any
takings analysis is largely dependant on the particular facts
surrounding the individual claim. These factors would include the
financial attributes of the regulated properties, the owners'
investments in these properties, the associated costs of
JBS\462.M 3
maintenance, the rents due on the properties and other factors.
Inevitably, this analysis is a financial, rather than a legal
endeavor. The financial character of this analysis and the
scarcity of instructive authority makes it impossible to advise
the City whether the Ordinance, as amended, would be immune against
a successful taking claim.
Nonetheless, the City can take' some comfort from the
following: ( 1) few if any California cases have held that a rent
control regulation effects a taking where the regulation allows for
timely rental increases, as does the City's; (2) no California
case has invalidated a vacancy control provision to date; and (3)
a number of rent control ordinances adopted by cities (including
Santa Monica, Berkley and others) impose stricter controls than
does Azusa. Finally, even if a landlord were inclined to challenge
the rent control ordinance as a taking, the landlord would first be
required to request that he or she receive special rent increases
pursuant to the ordinance. Only if there increases were denied,
would the landlord be properly positioned to bring a claim. In
addition, the City, upon receiving such a request for special rent
increases, could, if it desired, further evaluate its exposure to
a takings claim at that time.
The remainder of this memorandum analyzes the relevant
legal issues with more particularity.
Does the Vacancy Control Advance a Legitimate
Governmental Interest? Repeatedly the court has stressed that if
a regulation fails to advance a legitimate state interest at the
expense of a property owner, the regulation is confiscatory. Aqins
v. Tiburon ( 1980) 447 U.S. 255, 100 S.Ct. 2138 .2 Conversely, a
regulation which promotes a legitimate governmental interest is not
confiscatory just because it also diminishes the value of one or
more properties. Pennsylvania Cole v. Mahon ( 1922) 260 U.S. 293,
43 S.Ct. 158. With respect to the vacancy control, a number of
legitimate governmental purposes are seemingly promoted, thus
immunizing the provision from this type of challenge.
Vacancy controls are often important because a vacating
tenant who owns his or her coach typically leaves the investment
behind (because mobilehomes are far from mobile) . Rather than
transporting the coach, the vacating tenant sells the coach to a
prospective tenant who after purchasing the coach starts to rent
the underlining pad (provided the new tenant is creditworthy) .
Allowing the landlord to freely raise the pad rent can cause the
value of the coach to drop, and consequently the vacating tenant's
2 Failure to satisfy this standard also produces a violation
of the Due Process Clause of the Fifth and Fourteenth Amendments.
FCC v. Florida Power Corporation ( 1987) 480 U.S. 245, 107 S.Ct.
1107 .
JBS\462.M 4
investment to be lost. Limiting rent these transition increases to
8% will, to some degree (but not entirely) , protect the prior
tenant's investment.
Vacancy controls which apply when a new tenant rents a
pad and perhaps a coach from the landlord (but does not purchase
the predecessor's coach) are also justifiable. In these instances,
there is no investment to be protected. Instead, such regulations
promote the well-recognized governmental objective of preserving
the City's affordable stock of rental units, in this case
mobilehome pads. Pennel v. City of San Jose ( 1988 ) 485 U.S. 1, 108
S.Ct. 849 .
Does the Property Remain Economically Viable? If a
regulation denies an owner economically viable use of his or her
land, the regulation is confiscatory. Agins v. Tiburon ( 1980) 447
U.S. 255 100 S.Ct. 2138 . It is difficult to define when a property
has no viable economical use, but at minimum, a regulation which
causes a property to become valueless results in a regulatory
taking. Lucas v. South Carolina Coastal Commission ( 1992) 112
S.Ct. 2886 . Generally a regulation is not confiscatory, even if it
substantially decreases the value of a property. Netcow v.
Cambridge 277 U.S. 183, 48 S.Ct. 447; Euclid v. Amber Realty_ 272
U.S. 365, 47 S.Ct. 115 (reduction in property values by between 50%
and 90% are not confiscatory) . So long as the (cash flows
associated with the rent allowed under the ordinance exceed
reasonable expenses, it is likely that a viable use remains.
Does the Regulation Allow for a Fair Return on the
Property? In addition to the viable use standard employed by the
federal courts, California courts have required that any rent
control ordinance allow the owner a fair return on the owner's
investment. Birkenfeld v. City of Berkley ( 1976) 17 Cal.3d 129,
130 Cal.Rptr. 465; Fisher v. City of Berkley ( 1984) 37 Ca1. 3d 572,
209 Cal.Rptr. 681, Baker v. City of Santa Monica ( 186) 181
Cal.App. 3d 972, 226 Cal.Rptr. 755, Coati Alliance v. Coati ( 1983 )
148 Cal.App. 3d 293, 195 Cal.Rptr. 825 . Courts have generally
failed to detail the fair return standard in a comprehensible
manner, but the regulation should allow "an efficient
landlord. . . [to] . . .recover all reasonable expenses actually incurred
and, in addition, receive a fair profit or return an investment. "
Coati Alliance for Better Housing v. City of Coati (1983) 148
Cal.App. 3d 280, 293, 195 Cal.Rptr. 825, 833.
Ultimately, this analysis (as a starting point) would
require a review of the expenses, and revenues associated with the
property, as well as projected revenues and expenses. The courts
have not addressed whether the regulation must permit profitability
during each year of an investment, or over the life of an
investment. However, few, if any, California courts have held rent
controls to be confiscatory where periodic and timely rent
adjustments are permitted. It appears that the rent adjustments
JBS\462.M 5
allowed under the ordinance are and could be effected in a timely
fashion.
Is the Adjustment Procedure Excessively Burdensome? A
rent control ordinance which controls periodic rent increases can
nonetheless be confiscatory if the process by which rents are
increased is so burdensome or difficult that, in effect, a landlord
is unable to obtain approval to increase rents in a timely fashion.
Birkenfeld v. City of Berkley ( 1976) 17 Ca1.3d 129, 130 Cal.Rptr.
465; Fisher v. City of Berkley ( 1984) 37 Ca1. 3d 572, 209 Cal.Rptr.
681. The ordinance allows timely adjustments by generally
permitting an automatic 8% increase upon the transition of tenants.
Moreover, subsequent increases are permitted in accordance with the
CPI-W and still greater increases are permitted in the event that
a special application is approved.
Does the Regulation Destroy a Fundamental Right? If a
regulation destroys a fundamental right associated with property
(e.g. the right to sell property or a similarly important right) ,
the regulation can potentially effect a taking. Kaiser Aetna v.
United States ( 1979) 444 U.S. 164, 100 S.Ct. 383. It is highly
doubtful, however, that a court would categorize the ability to
raise rents in excess of an 8% cap as a fundamental property right.
See also, San Marcus Mobilehome Park Owners' Association v. City of
San Marcus ( 1987) 192 Cal.App.3d 1492, 238 Cal.Rptr. 290.
Does the Regulation Excessively Interfere with
Investment-Backed Expectations? If a regulation interferes
excessively with investment-backed expectations it can produce a
taking. Goldbladt v. Hempstead 369 U.S. at 594, 82 S.Ct. at 990.
It is doubtful that a vacancy control provision which allows for an
8% rent increase upon the vacation of a mobilehome pad
significantly interferes with investment-backed expectations
because similar controls have been a part of the mobilehome
business landscape for many years. Moreover, rent control has been
a significant feature of the legal environment for both mobilehome
and apartment housing for many years, and accordingly, an investor
cannot reasonably expect to be free of such regulation.
Interference with Contracts. Potentially a landlord can
argue that the proposed amendment, which can require a temporary
rollback of rents (despite rental contract allowing higher rents) ,
unconstitutionally interferes with the landlord's contractual
rights.3 However, impacting a contract or altering the terms of
a contract by an ordinance does not always result in an
3 Both the federal and California constitutions prohibit the
impairment of contracts (U.S. Const. art. I, Sec. 10 [ "No State
shall . . .pass any. . .Law impairing the Obligation of Contracts. . . " ] ;
Cal. Const. art 1, Sec. 9 [ "A. . .law impairing the obligation of
contracts may not be passed. " ]
JBS\462.M 6
unconstitutional impairment. The Supreme Court has articulated a
three part test to determine whether a law impacting a contract
unconstitutionally impairs that contract: ( 1) does the law operate
as a substantial impairment to the contractual relationship; (2)
if it is a substantial impairment, is the law justified by a
significant and legitimate public purpose; and (3 ) if the law is so
justified, is the adjustment of the rights and duties of the
contracting parties based upon reasonable conditions and is it of
a character appropriate to the underlying public purpose. Energy
Reserves Group, Inc. v. Kansas Power & Light Co. ( 1983) 103 S.Ct
697, 705 . It is doubtful that a rollback of a small portion of
rents for a relatively short period of time would violate these
strictures. The mere fact that a rent control ordinance
effectively discharges a renter's liability under a lease by
creating a ceiling or a rollback does not render the ordinance
invalid. Birkenfeld v. City of Berkley ( 1976) 17 cal.3d 129, 143,
130 Cal.rptr. 465, 475. Also see, Berman v. Downing ( 1986) 184
Cal.App.3d Supp.5, 229 Cal.Rptr. 660, 661. The City's ordinance
should be entitled to the same favorable presumption by a reviewing
court.
CONCLUSION
It is impossible to determine whether the Ordinance, as
amended, would effect a taking. The Courts which have addressed
this general subject have provided the most skeletal of guidelines,
which cannot provide a definitive answer in this case.
Nonetheless, few if any courts have declared a rent control
ordinance to be confiscatory where, as in the Azusa Ordinance,
timely rent adjustments are allowed. Moreover, many cities have
more stringent rent controls than does Azusa. So long as Azusa
permits a landlord to obtain a fair and reasonable return the Azusa
ordinance will comport with constitutional requirements.
JBS\462.M 7
GH U3 IT E
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AZUSA AMENDING THE AZUSA MUNICIPAL CODE TO
AMEND SECTIONS 5.56.050 AND 5. 56.090 RELATING
TO MOBILEHOME PARK VACANCY CONTROL.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA
DOES HEREBY ORDAIN AS FOLLOWS:
•
SECTION 1. The City Council of the City of Azusa does
hereby find, determine that:
A. Mobilehome park tenants are in a poor bargaining
position with park owners because of substantial investments in
their mobilehomes, the high cost of relocation and a lack of
alternative sites within Azusa and the region for their
mobilehomes.
B. Unregulated mobilehome park rents are a hardship on
vulnerable portions of the City's population, including the
elderly, the disabled, and those of low income, forcing these
persons to leave the City or divert a disproportionate amount of
income to housing.
C. The ability of mobilehome park residents to transfer
their mobilehomes is severely limited, if not entirely abrogated,
unless some protection is given to protect the availability of
mobilehome park space and transfer rights to mobilehome coaches.
SECTIQN 2. Section 5. 56.090 of Chapter 5. 56 of Title 5
of the Azusa Municipal Code is hereby amended in its entirety to
read as follows:
"5.56. 090 VACANCIES.
(a) Regulation of rents charged to purchasers of
mobilehomes is necessary to protect the investment of
existing residents in their mobilehomes and their ability
to sell their homes.
(b) When a coach on a regulated mobilehome space is sold
by a vacating tenant to a new tenant and the new tenant
enters into a rental agreement for a mobilehome space,
any increase in rent must be limited to eight percent
(8%) of the immediately preceding rent, or, in the case
of the Azusa Mobilehome Park, to fourteen and two hundred
seventy five thousandths percent (14 .275%) , due to the
recent unusual expenditures associated with the later
Park. A rent increase above 8% on a space in the Azusa
Mobilehome Park is permitted only on the execution of the
first rental agreement on such space after February 5,
1992.
(c) When a coach is owned by the park owner and the
coach is sold, the base rent to the buyer shall be
calculated using the average of the current space rent
charged for similar spaces in the park.
(d) Notwithstanding subsection (b) , no rental increase
shall be permitted under this section for:
(1) Transfers to a conservator of the person
and/or the estate of a tenant and/or the individual
heir of a tenant;
DDB\4195.0
(2) Transfers which take effect upon the death of
a spouse;
(3) Transfers to a spouse or former spouse in
connection with a property settlement agreement or
decree of dissolution of marriage or legal
separation; or
(4) The creation, transfer or termination solely
between spouses of interest in the mobilehome
space.
(e) This section 5.56.090 shall apply to rental
agreements executed on or after February 6, 1992 . If an
agreement subject to this section is executed prior to
the effective date of this section, the rents pursuant to
such agreement, commencing on the effective date of this
section, shall be reduced to conform with this section.
No rebate of previously collected rents shall be required
or due.
SECTION 3. Section 5. 56. 050(c) of Chapter 5.56 of Title
5 of the Azusa Municipal Code is hereby amended to read as follows:
" (c) No owner shall demand or accept or retain rent for
any space exceeding the initial base rent unless an
increase has been authorized under Sections 5.56.063,
5. 56.067, 5.56.070, 5.56. 085 or 5.56.090.
,SECTION 4.. This Ordinance shall become effective 30 days
from the date of its adoption. The City Clerk shall certify to the
passage and adoption of this Ordinance and shall cause the same to
be published or posted as prescribed by law.
PASSED AND APPROVED this day of 1992 .
MAYOR
I HEREBY CERTIFY that the foregoing Ordinance No.
was regularly introduced and placed upon Its first reading at a
regular meeting of the City Council of the City of Azusa on the
day of 1992 . That thereafter, said Ordinance was
duly adopted and passed at a regular meeting on the City Council on
the day of 1992 , by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
DDD\195.0