HomeMy WebLinkAboutMINUTES - 04201999 - C59 TO: BOARD OF SUPERVISORS
Contra
FROM: -
PHIL BATCHELOR, COUNTY ADMINISTRATOR �, Costa
DATE:
April 15, 1999 ;
County
SUBJECT:
LEGISLATION: AB 516 (WAYNE)
SPECIFIC REOUES T(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AB 516 by Assemblyman Howard Wayne of San
Diego,which would provide a permanent funding base for the State Revolving Fend
for small water system loans by placing on the ballot a $100 million bond issue.
BACKQR UND:
There is currently in operation Federal legislation, the Safe Drinking Water Act,
which regulates the quality of drinking water provided by public water systems, The
Federal law is enforced in California by the Department of Health Services through
the California Safe Drinking Water Act, which provides for regulation of water
systems at least as stringent as that provided by the Federal Act.
Federal funding is available providing that the State provides a 20% match. This
money provides for loans and grants to public water systems for projects necessary
to meet safe drinking water standards. In order to receive the Federal funds, the
State roust create a Safe Drinking Water State Revolving Fund program to
administer the Federal fends.
Currently, the State Department of Health Services must rely on annual
appropriations of funds in order to provide the required match.
CONTINUED ON ATTACHMENT. YES SIGNATURE: r r' r
y RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION RECOMMENDATION OF BOARD COMMITTEE
-� APPROVE OTHER
SIGNATURE S: `
ACTION OF BOARD ON A'Orll 20 1999 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ASSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED Ancil 20} 1gq'Q
Contact: PEAL BATCHELOR,CLERK OF THE BOARD 0;;
` SUPERV;SORS AND COUNTY ADMINISTRATOR
See Mage 2
BY i + �' DEPUTY
AB 516 would expand the capacity of the revolving fund by leveraging Federal grant
and State matching funds through the issuance of general obligation bonds,
effectively using borrowed money to make the loans. The funds would be obtained
through the issuance of general obligation bonds. The Federal and State funds
would be used to provide security for and guarantee repayment of the revenue
bonds.
Contra Costa County has four small water systems waiting for funding from the
previous funding cycle. This bill will provide a permanent funding base for the
program. The money will benefit Contra Costa County residents.
The County's Director of Environmental Health Programs, Ken Stuart, supports the
legislation and has recommended that the Board also indicate its support for AB 516.
cc: County Administrator
Health Services Director
Ken Stuart, Director, Environmental Health Programs
Assemblyman Howard Wayne
Room 2170 State Capitol
Sacramento, CA 95814
Les Spahnn
Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
-2-
ENVIRONMENTAL HEALTH DIVISION
Inter-Office Correspondence
Date: March 8, 1999
To: Claude L. Van Marter
Assistant County Administrator
From: Shen Stu % �
Director of Environmental Health
Subject: Review of Legislation
My comments and recommendations on the legislative bills that you have recently
forwarded me are as follows:
AD 516—Wayne - This bill appears to be one of the base bills involved in the future
funding of the State Revolving Fund for small water system loans. There are currently
four small water systems in Contra Costa County waiting for funding from the previous
funding cycle. Legislation on the FY 98-99 funding cycle was vetoed last year, and the
Office of Drinking Water, State Department of Health Services, has had to rely on
obtaining the monies needed to match the federal monies through the annual budget
cycle. This bill will provide a permanent funding basis for the program, and these
monies will be a benefit to Contra Costa County residents. Recommendation: Support
AB 564—Machado - This bill. appears to be a spot bill that can also be involved in the
funding of the State Revolving Fund loans and grants for water systems.
Recommendation: Watch
AB 635 —Campbell - When the California Uniform Retail Food Facilities Law
(CL 'FL)was amended in 1997, it included a section detailing the storage requirements
(specifically, refrigeration) for raw eggs. To appease the California Egg Industry
Advisory Board, a year 2000 sunset clause was included with the amendments. This bill
will eliminate the sunset clause and keep the existing storage requirements in place.
Recommendation: Support
AB 710—Calderon—This bill would require the Department of Health Services to
establish a demonstration project regarding the removal of perchlorate from drinking
water. Perchlorate is not a problem contaminate of drinking water in Contra Costa
County, so the bill has little or no impact on the county. Recommendation: Neutral
SB 408 —Alpert - This bill addresses new treatment methods that would allow medical
waste from biotech industries to be discharged to the sewer. The bill has now been
amended to become a spot bill with a yet unidentified role. SB 408 has been amended to
SB 407, which was a spot bill involving discrimination prohibitions. SB 407 is the result
of efforts by San Diego State University and the San Diego County Health Department,
and this in with the cooperation of the biotech industries in San Diego. SB 407 was
scheduled for amendments last week, with some of the objectionable language on peer
reviews being eliminated. Currently, there is no impact on Contra Costa County.
Recommendation: Watch
SB 530—Costa--This is another funding bill for the State Revolving Fund monies for
the Clean Water Programs. Recommendation: Watch
I also received a note from DHS that there are two additional bills that have been
introduced that deal with drinking water, land use, and the Source Water Assessment
Program(SWAP). These bills are AB 1219 (Kuehl) and SB 1130 (Costa). I'll try and
secure copies of the bills,but thought you'd want a heads-up, too.
Please contact me at 6-5137 if you have any questions on.these comments.
Cc: Dr. William Walker, Director, health Services
Supervising Environmental.Health Specialists
' F`¢�
Y
f
AB 516 Assembly Bill-Bill Analysis Page 1 of 3
AB 516
Page 1
Date of Hearing: March 23, 1999
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Hannah-Beth Jackson, Chair
AB 516 (Wayne) - As Introduced: February 16, 1999
SUBJECT" Public water systems.
SUMMARY
Specifically, _ this bill establishes the statutory framework for
the $100 million California Safe Drinking Water Bond Act of
2000. The proceeds, to be deposited and utilized in accordance
with the Safe Drinking Water State Revolving Fund Law of 1997,
are for use in infrastructure improvements and related actions
in order to meet safe drinking water standards.
EXISTING LAW
,..Regulates, through the federal Safe Drinking Water Act, the
quality of drinking water provided by public water systems.
The federal act is enforced in California by the Department of
Health Services (BHS) through the California Safe Drinking
Water Act, which provides for regulation of water systems at
least as stringent as that provided by the federal act. The
federal act requires the development of nationally enforceable
primary drinking water standards to protect public health from
contaminants. Tinder the federal act, a maximum contaminant
level (MCL) or specific treatment technique is set for each
contaminant.
2.Implements, under the 1-996 reauthorization of the federal Safe
Drinking Water Act, a federal funding program for loans and
grants to public water systems to upgrade drinking water
facilities. In order to be eligible to receive federal funds,
the federal act requires that states create a Safe Drinking
Mater State Revolving Fund program to administer the federal
funds, and that the states provide 20 percent matching funds.
3.Established, as defined in SB 1307, Costa, Chapter 734,
Statutes of 1997, California's Safe Drinking Water State
Revolving Fund. Monies to be deposited into the fund are to
be continuously appropriated to DHS to provide grants and
low-interest loans to public water systems for projects
necessary to meet safe drinking water standards. Priority for
0
AB 51.6
Page 2
lhttp://v,rww.leginfo.ca. ov/pub/bill/as /ab 0.../ab 516 cfa 49990331_163203—asm-co m.htm 4/8/99
AB 516 Assembly Bill -Bill Analysis Page 2 of 3
funding is directed at projects that address the most serious
risk to human health, that are necessary to ensure compliance
with drinking water standards, and that serve communities with
the greatest financial need. A project is ineligible to
receive funding if its priraary purpose is to promote growth.
DISCAL FFF : unknown
L
_jC_qMM&NTS
l.Purpose of the Bill; This bill will expand the capacity of
the revolving fund by "leveraging" federal grant and state
match money through the issuance of general obligation bonds,
that is, by using borrowed funds to make loans. Borrowed
funds are obtained by issuing general obligation bonds to
public investors. Funds from the federal capitalization grant
and state matching monies are used to provide security for and
guarantee repayment of revenue bonds. interest earned on
investment of the revolving fund corpus will be used to
subsidize interest rates for water system borrowers.
This program is modeled after the Clean Water Act Revolving
Fund, which 21 states have implemented since 1987 which allows
federal grant money for construction and upgrade of waste
water treatment plants to be leveraged by the issuance of
revenue bonds. Congress extended the leveraging option to
Safe D"rinking Water Act Grants in the 1996 amendments to that
act.
2.Background: Approximately $1 billion in grant money is
available to states in federal fiscal year 1999/2000 for water
system infrastructure improvements. California's percentage
share available for the year 2000 would amount to
approximately $100 minion.
According to DHS, California's infrastructure needs for
approximately $480 million the top two priority areas relating
to public health (including measures to prevent infectious
disease) . The total backlog of infrastructure needs reported
in 1997 was estimated to exceed $7 billion.
:�k!Gl T RED._S�TJPRORT J_9�PPQS-LTIQN
AB 516
Page 3
SupporT
California Association of Realtors
None on file
http://www.leginfo.ca.gov/pub/bill/asm/ab--O.../ab-516—cfa-19990331-163203—asm—comm.btm 4/8/99
CALIFORNIA LEGISLAT'UPE-1999-2000 REGULAR SESSION
ASSEMBLY BILL No. 516
Introduced by Assembly Member Wayne
February 18, 1999
An act to add Chapter 8 (commencing with Section 117135)
to Part 12 of Division 104 of the Health and Safety Cade,
relating to financing a safe drinking water program by
providing the funds necessary therefor through the issuance
and sale of bonds of the State of California and by providing
for the handling and disposition of those funds, and declaring
the urgency thereof, to take effect immediately.
LEGISLATIVE COUTINSEI:S DIGEST
AB 516, as introduced,Wayne. Public water systems.
(1) Under existing law, various bond acts have been
approved by the voters to provide funds for water projects,
facilities, and programs.
This bill would enact the California Safe Drinking Water
Bored Act of 2000, which, if adopted, would authorize for the
purposes of financing a safe drinking water program, the
issuance, pursuant to the State General Obligation Bond Law,
of bands in the amount of$100,000,000.
The bill would provide for the submission of this bond act
to the voters at the March. 7, 2000, statewide direct primary
election.
(2) The bill would declare that it is to take effect
immediately as an urgency statute.
Note: 13. Appropriation: no. Fiscal committee: yes.
State-Mandated local program: no.
99
AB 516 —2—
The
y2—
The people of the State of California do enact asffollo s.
1 SECTION 1. Chapter 8 (commencing with Section
2 117135) is added to part 12 of Division 104 of the Health
3 and Safety Cade, to read:
4
5 CHAP'T'ER 8. CALIFORNIA SAFE DRINKING WATER BOND
6 ACT OF 2000
7
8 Article 1. Short Title
9
10 117135< This chapter shall be known and may be cited
11 as the California Safe Drinking Water Band Act of 2000.
12
13 Article 2. Definitions
14
15 117137. Unless the context otherwise requires, the
16 following definitions govern the construction of this
17 chapter:
18 (a) "Department" means the State Department of
19 Health Services.
20 (b) "Fund" means the Safe Drinking Water State
21 Revolving Fund created by Section 116760.30.
22 (c) "Safe Drinking Water Act" means the federal Safe
23 Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
24 includes any amendments thereto.
25
26 Article 3. Safe Drinking Water State Revolving Fund
27
28 117139. The proceeds of bonds issued and sold
29 pursuant to this chapter shall be deposited in the Safe
30 Drinking Water State Revolving Fund.
31
32 Article 4. ,Safe Drinking Water Program
33
34 117141. The bond proceeds shall be used by the
35 department for loans and grants to suppliers, as defined
36 in subdivision (1) of Section 116760.20, for the purposes of
37 undertaking infrastructure improvements and related
38 actions to meet safe drinking water standards, in
99
-3— AB 516
1 accordance with the Safe Drinking Water State
2 Revolving Fund Law of 1997 (Chapter 4.5 (commencing
3 with Section 116760)).
4
5 Article 5. Fiscal Provisions
6
7 117145. The proceeds of bonds issued and sold
8 pursuant to this chapter shall be deposited in the State
9 Treasury to the credit of the Safe Drinking Water State
10 Revolving Fund.
11 117145.2. (a) Bonds in the total amount of one
12 hundred million dollars ($100,000,000), not including the
13 amount of any refunding bonds issued in accordance with
14 Section 117145.20, or as much thereof as is necessary, may
15 be issued and sold to provide a fund to be used for
16 carrying out the purposes expressed in this chapter and
17 to be used to reimburse the General Obligation Bond
18 Expense Revolving Fund pursuant to Section 16724.5 of
19 the Government Code. The bonds, when sold, shall be
20 and constitute a valid and binding obligation of the State
21 of California, and the full faith and credit of the State of
22 California is hereby pledged for the punctual payment of
23 both principal of, and interest on, the bonds as the
24 principal and interest become due and payable.
25 (b) It is the intent of the Legislature that the
26 committee, as described in Section 117145.6, shall require
27 sufficient bonds to be issued, up to a maximum of one
28 hundred million dollars ($100,000,000) through January
29 2010 to make the maximum federal funds available to the
30 fund which can reasonably be obligated within the
31 timeframe.
32 117145.4. (a) The bonds authorized by this chapter
33 shall be prepared, executed, issued, sold, paid, and
34 redeemed as provided in the State General Obligation
35 Bond Law (Chapter 4 (commencing with Section 16720)
36 of Part 3 of Division 4 of Title 2 of time Government Code),
37 and all of the provisions of that law apply to the bonds and
38 to this chapter and are hereby incorporated in this
39 chapter as though set forth in full in this chapter.
99
AB 51.6 —4-
1
-4--
1 (b) For purposes of the State General Obligation Bond
2 Law, the State Department of Health Services is
3 designated the "board.'
4 117145.6. Solely for the purpose of authorizing the
5 issuance and sale, pursuant to the State General
6 Obligation Bond Lain, of the bonds authorized by this
7 chapter, the California ,Safe Drinking Water Finance
8 Committee is hereby created. For purposes of this
9 chapter, California Safe Drinking Water Finance
10 Committee is the "committee" as that term is used in the
11 State General Obligation Bond Law. The committee
12 consists of the Treasurer, the Controller, and the Director
13 of Finance, or their designated representatives. A
14 majority of the committee may act for the committee.
15 117145.5. The committee shall determine whether or
16 not it is necessary or desirable to issue bonds authorized
17 pursuant to this chapter in order to carry out the actions
18 specified in this chapter and, if so, the amount of bonds
19 to be issued and sold. Successive issues of bonds may be
2€3 authorized and sold to carry out those actions
21 progressively, and it is not necessary that all of the bonds
22 authorized to be issued be sold at any one time.
23 117145.10. There shall be collected each year and in
24 the same manner and at the same time as other state
25 revenue is collected, in addition to the ordinary revenues
26 of the state, a sum in an amount required to pay the
27 principal of, and interest on, the bonds each year. It is the
28 duty of all officers charged by law with any duty in regard
29 to the collection of the revenue to do and perform each
30 and every act which is necessary to collect that additional
31 sum.
32 117145.12. Notwithstanding Section 13340 of the
33 Government Code, there is hereby appropriated from
34 the General Fund in the State Treasury, for the purposes
35 of this chapter, an amount that will equal the total of the
36 following
37 (a) The sum annually necessary to pay the principal of,
38 and interest on, bonds issued and sold pursuant to this
39 chapter, as the principal and interest become due and
40 payable.
99
-5— AB 516
1 (b) The sum necessary to carry out Section 117145.14,
2 appropriated without regard to fiscal years.
3 117145.14. For the purposes of carrying out this
4 chapter, the Director of Finance may authorize the
5 withdrawal from. the General Fund of an amount not to
6 exceed the amount of the unsold bonds which have been
7 authorized by the committee to be sold for the purpose
8 of carrying out this chapter. Any amount withdrawn shall
9 be deposited in the fund. Any money made available
10 under this section shall be returned to the General Fund,
11 plus an amount equal to the interest that the money
12 would have earned in the Pooled honey Investment
13 Account, from money received from the sale of bonds for
14 the purpose of carrying out this chapter.
15 117145.16. All money deposited in the fund that is
16 derived from premium and accrued interest on bonds
17 sold shall be reserved in the fund and shall be available for
18 transfer to the General Fund as a credit to expenditures
19 for bond interest.
20 117145.18. The State Department of Health Services
21 may request the Pooled Money Investment Board to
22 make a loan from the Pooled Money Investment Account
23 in accordance with Section 16312 of the Government
24 Code for the purposes of carrying out this chapter. The
25 amount of the request shall not exceed the amount of the
26 unsold bonds which the committee, by resolution, has
27 authorized to be sold for the purpose of carrying out this
28 chapter. The department shall execute any documents
29 required by the Pooled Money Investment Board to
30 obtain and repay the loan. Any amounts loaned shall be
31 deposited in the fund to be allocated by the department
32 in accordance with this chapter.
33 117145.20. The bonds may be refunded in accordance
34 with Article 6 (commencing with Section 16780) of
35 Chapter 4 of Part 3 of Division 4 of Title 2 of the
36 Government Code, which is a part of the State General
37 Obligation Bond Law. Approval by the voters of the state
38 for the issuance of the bonds described in this chapter
39 includes the approval of the issuance of any bonds issued
99
AB 516 —6-
1
6-
1 to refund any bonds originally issued or any previously
2 issued refunding bonds.
3 117145.22. Notwithstanding any provision of this
4 chapter or the State General Obligation Bond Law, if the
5 Treasurer sells bonds pursuant to this chapter that
6 include a bond counsel opinion to the effect that the
7 interest on the bonds is excluded from gross income for
8 federal tax purposes, subject to designated conditions, the
9 Treasurer may maintain separate accounts for the
10 investment of bond proceeds and the investment
11 earnings on those proceeds. The Treasurer may use or
12 direct the use of those proceeds or earnings to pay any
13 rebate, penalty, or other payment required under federal
14 law or to take any other action with respect to the
15 investment and use of bond proceeds required or
16 desirable under federal law to maintain the tax-exempt
17 status of those bonds and to obtain any other advantage
18 under federal law on behalf of the funds of this state.
19 117145.24. The Legislature hereby finds and declares
20 that, inasmuch as the proceeds from the sale of bonds
21 authorized by this chapter are not "proceeds of taxes" as
22 that term is used in Article XIII B of the California
23 Constitution, the disbursement of these proceeds is not
24 subject to the limitations imposed by that article.
25 SEC. 2. Section 1 of this act shall become effective
26 upon the adoption by the voters of the California Safe
27 Drinking Water Bond Act of 20€30, as set forth in Section
28 1 of this act.
29 SEC. 3. Section 1 of this act shall be submitted to the
30 voters at the March 7, 2000, statewide direct primary
31 election in accordance with provisions of the
32 Government Code and the Elections Code governing the
33 submission of statewide measures to the voters.
34 SEC. 4. (a) Notwithstanding any other provision of
35 law, all ballots at the election shall have printed thereon
36 and in a square thereof, the words: "California Safe
37 Drinking Water Bond Act of 2000," and in the same
38 square under those words, the following in 8-point type:
39 "This act provides for a bond issue of one hundred million
40 dollars ($100,000,000) to provide funds to ensure safe
99
1
-7— AB 516
1 drinking water." Opposite the square there shall be left
2 spaces in which the voters may place a cross in the
3 manner required by law to indicate whether they vote for
4 or against the act.
5 (b) Where the voting in the election is done by means
6 of voting machines, used pursuant to law in a manner to
7 carry out the intent of this section, the use of the voting
8 machines and the expression of the voters' choice by
9 means thereof are in compliance with this section.
10 SEC. 5. This act is an urgency statute necessary for the
11 immediate preservation of the public peace, health, or
12 safety within the meaning of Article IV of the
13 Constitution and shall go into immediate effect. The facts
14 constituting the necessity are:
15 In order to provide funds to water suppliers to ensure
16 that safe drinking water standards are met as soon as
17 possible, it is necessary that this act take effect
18 immediately.
0
99
AB 516 Assembly Bill r Bill Analysis Page 3 of 3
Analysis Prepared by: Bruce Jennings / B.S. & T.M. / (91-6)
319-3965
http://www.leginfo.ca.gov/pubibill/asm/ab-0.../ab-516—cfa19990331-1632 #3—asm com .htm 4/8/99