HomeMy Public PortalAbout18) 10A Letter of Opposition Senate Bill 231AGENDA
ITEM 10.A.
MANAGEMENT SERVICES DEPARTMENT
MEMORANDUM
DATE: June 20, 2017
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via : Brian Haworth , Assistant to the City Manager
By: Tinny Chan , Management Analyst
SUBJECT: LETTER OF OPPOSITION, SENATE BILL 231
RECOMMENDATION:
The City Council is requested to :
1. Approve the attached letter in opposition to Senate Bill 231 , wh ich if adopted , would
impose stormwater management fees on property owners without voter app ro val
(Attachment "A"); and
2 . Authorize the Mayor to subm it said letter on behalf of Council.
BACKGROUND:
1. Passed by voters in 1996, Proposition 218 amended the state Constitution a llowi ng
citizens the right to vote on certain taxes , fees , and assessments with three exceptions :
trash , water, and sewer service . The legislation also protects taxpayers by lim iti ng how
local governments and charter cities can increase taxes, fees , and charges without
taxpayer consent.
2 . In 2002 , the Sixth District Court of Appeal-in the case of Ho ward Jarvis Ta xpayer
Association v. City of Salinas-ruled that the city could not impose an annual
"stormwater management util ity fee" to finance stormwate r drainage facilities and
system maintenance . The court deemed the assessment as unconstitutional , as it was
subject to the voter-approval requirements of Proposition 218.
3. In 2012 , the Regional Water Quality Control Board (Los Angeles Reg ion ) issued a
Mun icipal Separate Storm Sewer System perm it-or MS4 permit-to the County of
Los Angeles and 79 cities , incl uding Temple City. Each municipality is requ i red to
implement a series of measures over the next decade that clean polluted storm water
City Council
June 20 , 2017
Page 2 of 3
emptied into catch basins , storm drain lines , road gutters, and curbs . Estimated cap ital
costs are $20 billion for a countywide stormwater runoff plan ; i n Temple City, costs are
estimated upwards of $10 million .
4 . In August 2016 , Senator Robert Herzberg (0-Van Nuys) proposed Senate B ill ("SB")
1298, which would change the definition of "sewer service" under Propos it ion 218 to
include stormwater management (Attachment "B"). Th is provision would essentially
allow cities to charge property owners for stormwater management projects without
voter approval. The bill met with significant opposition from local governments and
interest groups; it ultimately did not pass .
5 . In February 2017 , Senator Hertzberg proposed similar legislation under SB 231 , which
again attempts to expand the definition of "sewer" to encompass stormwater
management (Attachment "C"). The proposal essentially rewrites part of the state
Constitution with a statute, allowing cities to charge taxpayers a fee for stormwater
management without calling it a tax, and without the approval of a two-th irds vote.
Furthermore , Hertzberg introduced a companion bill-Senate Constitution Amendment
4-that provides the means to override Proposition 218 and other constitutional
protections that require municipalities to set utility rates based on the cost of service .
6 . In April 2017, when the Legislature reconvened from spring recess , a large number of
California cities and municipal-based organizations issued official statements opposi ng
SB 231 . While consensus acknowledged the need to identify a viable fund i ng source
so that cities could achieve compliance with MS4 requirements , passing the costs onto
property owners without a vote is not the right or sustainable way to do it.
7. As of June 2017, SB 231 passed the Senate floor to the Assembly Committee on Local
Government. The bill is moving quickly; the California Contract Cities Association is
asking its member cities (e .g . Temple City) to act on provid ing opposition letters to SB
231 .
ANALYSIS:
Like other cities statewide , Temple City faces a daunting cost to comply with its MS4
requirements for stormwater capture and treatment. Finding a viable fund ing source to
meet this mandate remains a challenge.
While well intended , SB 231 seeks to pass the cost of a city's stormwater collection
program-without a vote-to local property owners. Furthermore , it violates the prem ise of
Proposition 218 by changing definitions of its exceptions . This move could set an
unfortunate precedent and undermine the longstanding right of residents to vote on the i r
local taxes and fees .
City Council
June 20, 2017
Page 3 of 3
For the above reasons, staff recommends Council approval to submit a letter i n oppos it ion
to SB 231 .
CITY STRATEGIC GOALS:
Council approval of the attached letter would further Strategic Plan objectives of good
governance and improved quality of life.
FISCAL IMPACT:
There is no impact associated with the recommended action . However, if the leg islation
passes and is successful in court challenges , Temple City property owners would see a
parcel tax increase . While this figure is unknown , the City of Glendora recently estimated a
per-parcel annual charge of $1 ,200 , assuming a stormwater assessment to property tax
bills .
ATTACHMENTS:
A. Opposition Letter
B . SB 1298: Proposed Legislation
C . SB 231 : Proposed Legislation
ATTACHMENT A
9701 LAS TUNAS DRIVE • TEMPLE CITY • CALIFORNIA 91780-2249 • (626) 285-2171
Jun e 21, 20 I 7
Honorable Robert Hertzberg
Senate District 18
State Capitol Building, Room 4038
Sacramento, CA 95814
RE: S B 231 , Notice of Oppos iti o n
Dear Senator Hertzberg:
The C it y ofTemple City respectfully expresses its oppositio n to your leg islation, SB 231.
The City understands that finding a so lution for cities looking for fund in g sources to com ply wit h
MS4 regulat ions is a challenge. SB 23 1 seeks to pass these costs onto property owners by
redefining "sewer system " to include sto rmw ater manageme nt. We do not be lieve that SB 231 1s
th e answer to the daunting cost s c iti es face in complying wi th MS4 regulations.
Proposition 218 gua rantee s voters the right to vote on loca l taxe s, fees, and assessments with an
exception for trash, water, and sewage fees. Due to a lack of definitions for these exceptions, an
appellate court in 2002 ruled that prope rty fees for stormwater collection were not under the
umbrella of wate r or sewer except ions. In c ludin g stormwater management in the definition of
sewers would, therefore, allow cities to impose fees on property owners without a direct vote
from our residents.
While we ll intended, we believe that SB 23 I violates the inte nt of Proposition 218 and would set
an unfortunate precedent and underm inc th e longstanding right of re s iden ts to vote on their local
taxes and fees . Whi le our city certain ly needs assistance in complying with our MS4 requirements
for storm water management, we do not bel ieve that passing the costs o n to our res idents without a
vo te is the right way to do it.
For these reasons , the City ofTemple City must express its opposition to this bi ll.
Sincerel y,
Cyn t hia Sternquist
Mayor
C: Honorable Judy Chu, US Congress (D istrict 27)
Honorable Ed Hernandez, Ca lifornia Senate (District 22)
Honorable Ed C hau , Ca lifornia Assemb ly (District 49)
Jennifer Quan, League of Cali fo rnia Cities
Camille Wag ne r, Office of Gove rnor Edmund G. Brown J r.
AMENDED IN ASSE MBLY AUGUST 11 ,2016
AMENDED IN ASS EM BLY AUGUST I , 2016
AMENDED IN ASS EMBLY J UNE 13,2016
SENATE BILL No.1298
Introduced by Senator Hertzberg
February 19 , 2016
An act to amend Section 53750 of the Governm ent Code, relating to
local government finance.
LEG ISLATIVE COUNSEL'S DI GEST
SB 1298 , as a mended , Hertzberg. Local gove rnm ent: fees and
c ha rges.
Articl es Xlll C a nd XIII D of the Cali forn ia Constitution generall y
req uire that assessments, fees, and c harges be s ubmitted to property
ow ne rs for approva l or rejecti on after the provis ion of w ritten noti ce
a nd the ho lding of a public hearin g. Ex isti n g law, t he Propositio n 218
Omn i bus I mpleme ntati o n A ct , prescribes specific procedures and
parameters fo r local jurisdictio ns to comply with Articles XIII C and
X III D of th e Califo rni a Constituti o n and defi nes terms for these
purposes.
This bill wo uld defi ne the terms "proportio na l eost of the serviee
anribtltable to t he pa:reel" aHa "sev~·er serviee" term "sewer" for these
purposes.
Vote: m ajori ty. Approp riation: no. F iscal committee: no .
State-mandated local program: no.
96
ATTACHMENT 8
SB 1298 -2-
The people of the State of California do enact as follows:
I SECfiON I. The Legi slature finds and declares al l of the
2 following:
3 (a) The ongoing, historic drought has made clear that California
4 must invest in a 21st century water management system capable
5 of effectively meeting the econom ic, soci al , and environmental
6 needs of the state.
7 (b) Sufficient and reliabl e funding to pay for l ocal water projects
8 is necessary to improve the state's water infrastructure.
9 (c) Proposition--r+-8-; 218 was approved by the voters in-+996;
1 0 was meant to impro 9·e traHspareHey aHcl aeeottHt:ability of l oeal
11 govemmeftt fees. 1996. Some court interpretation s of the l aw ha ve
12 constrain ed important tool s that local governments need to manage
13 ""·ater sttpplies, aclclress vvater polltttioH a:Hcl pro·vicle stormwater
14 maflagemeHt. storm water and drainage runoff.
15 (d) Stormwater is a key so ttree of loca l water sttpply, Storm
16 waters are carried off in storm sewers, and careful management
17 i s necessary t o reduce pollution. But a court deci sio n ha s reqttirecl
18 stormwater ana flood eoHtrol programs to meet a higher sumclarcl
19 thar, other water relatecl services to raise capital , excluded storm
20 water from those provisions of Proposition 218 that app ly to
21 property-related fees for sewer and water, preven tin g many
22 important projects from bein g built.
23 (e) This act is i HteHclecl to provicle gtticlaHee to loea:l ageHeies
24 aHcl eomts Oft the i mplemeHt:ati oH of Articles XIII C aHcl XIIIB--6£
25 the Ca:lifomia CoHstittttioH aflcl shall Hot be eoHstrttecl to ameHcl
26 those articles.
27 (e) The Court of Appeal in Howard Jar vis Taxpa yers Ass'n v.
28 City of Salinas (2002) 98 CalApp.4th 1351 , concluded that the
29 term "sewer," as used in Proposition 2 18 , is "ambiguous" but
30 rejected, and refused to use, the statutory definition of the term
31 "sewer system" which was part oft he then-existing law as Section
32 230.5 of the Public Utilities Code.
33 (f) The Legislature reaffirms and reiterates that the definition
34 found in Se c tion 230.5 of the Pu blic Utilities Code is th e definition
35 of "sewer" or "sewer service" that should be used in the
36 Proposition 218 Omnibus Implementation Act.
37 SEC. 2. Section 53750 of the Government Code i s amended
38 to read :
96
-3-SB 1298
1 537 50 . Fo r purposes of A rt i c l e XIII C and A rticle XIII D of
2 th e Cal i forni a Co nst itution an d th is articl e:
3 (a) "A ge ncy" mean s any local government as defi ned i n
4 subdi v i sion (b) of Secti o n I of Arti cle XIII C of the Ca liforni a
5 Consti t utio n.
6 (b) "A ssess ment" mea ns any l evy o r charge by an agency upo n
7 rea l prope rty t hat i s ba sed upo n the special ben efit co nfe rred upon
8 t he real prope rty by a publi c i mprove ment or service , th at i s
9 impos ed to pay the capital cost of th e publi c improve ment , th e
10 maintenance and o perati on expe nses of th e publi c improvement,
II or th e cost of th e se rvi ce be i ng prov ided . "A ssess ment" incl ud es,
12 but i s not l i mi ted to, "s pecia l ass ess ment ;' "benefit assess ment ,"
13 "maintenance assess ment ;' and "spec i al assess ment tax."
14 (c) "Di stri ct" mean s an area th at i s determin ed by an agency to
15 co nta i n all of th e parcel s th at w ill rece i ve a spec i al benefit f ro m a
16 proposed public improvement or serv ice.
17 (d) "D rai nage sys tem " mea ns any sys tem of publi c
18 improve ments th at i s intended to provid e f or eros i on co ntro l , f o r
19 l and slide abate ment , o r for other types of water d rain age.
20 (e) "Extend ed ," when applied to an ex i sting tax or fee or charge,
21 mean s a decision by an agency to extend the stated effective peri od
22 f o r th e tax o r f ee or charge, including, bu t not l i mited to,
23 amendment o r removal of a sun se t prov i si on or expiration date.
24 (f) "Fl ood co ntrol " me ans any sys tem of public improvement s
25 th at i s intend ed to protect prope rty f ro m ov erfl ow by wate r.
26 (g) "Identified parcel " mea ns a parce l of real prope rty t hat an
27 age ncy has identified as hav ing a speci al benefit co nfe rred upo n
28 it and upo n w hic h a proposed ass ess ment i s to be imposed, or a
29 par ce l of rea l pro perty upon w hi ch a proposed property -related
30 fee or ch arge is propos ed to be imposed .
3 1 (h) (1) "Inc reas ed ," wh en appli ed to a tax, assess ment , or
32 pro perty-rel ated f ee or ch arge, means a decisi o n by an age ncy th at
33 does either of th e f o llowing:
34 (A ) Inc reas es any appli ca ble rate use d to ca l c ul ate the tax,
35 assess ment, fee, or c harge .
36 (B) Rev i ses t he method ol ogy by whi c h th e tax , assessment , fee ,
37 o r charge is calculated , i f th at revis i o n res ults in an i ncreased
38 am o unt bein g l evied on any person or parcel .
39 (2) A tax, fee, or char ge i s not dee med to be "i ncreased" by an
40 ag en cy ac ti on th at doe s either o r bo th of th e f o llowi ng:
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SB 1298 -4-
1 (A) Adjusts the amount of a tax, fee, or charge in accordance
2 with a schedule of adjustments , including a cl ear l y defined formula
3 for inflation adjust ment th at was adopted by th e agency prior to
4 November 6, 1996 .
5 (B) I mplements or co llects a previous l y approved tax , fee, or
6 charge, so long as the rate is not increased beyond the level
7 prev i o usl y app roved by the agency, and the methodology
8 previously approved by th e agency is not revi sed so as to resu lt in
9 an increase in the amo unt be in g l evied o n any perso n or parcel.
10 (3) A tax , assess ment, fee, or charge is not deemed to be
11 "increased" in the case i n which the act ual payments from a pe rson
12 or prope rty are higher th an would have res ulted when the agency
13 approved the ta x, assessment, fee, o r charge , i f th ose higher
14 payments are attr ibutabl e to events o th er than an increased rate o r
15 rev i sed methodol ogy, such as a chan ge in the density, intensity,
16 or nature of the use of l and .
17 (i) "Notice by mail " means any notice requ i red by Article X III C
18 or XIII D of the Californi a Cons titutio n that i s accomp lished
19 t hrough a mailing, postage prepaid , deposited in the U nited States
20 Postal Service and is deem ed given when so deposited. Noti ce by
21 mail may be incl uded in any other mailing to the record owner
22 that otherwise co mplies with Article X III C or X III D of the
23 Ca lifornia Constitution and thi s article, i ncluding, but not l imited
24 to, the mai ling of a bill for the co llec ti on of an asse ssment or a
25 property-related fee or charge.
26 (j) "Provortiorull cost of the serv ice attributable to the parcel ;·
27 wheR applied to a fee or charge for water or se·wer service, meafls
28 the share of the total cost of providiRg water or sev"·er se r·viee to
29 water or sewer users withi R the ser·viee area reasoRab ly attributable
30 to the parcel . The total cost of provid iR g ·water or sewer service
31 iReludes all costs of aequiriRg '9vater aRd •water ri ghts , costs of
32 eoll cetiftg, eoftvey·ift g, treatiftg, aftd mafta giftg water a:Rd
33 wastewater , aftd costs of sat isfyiRg a ll r·egu la tory requi r"Cme ft ts
34 law f ully imposed Oft v1ater aftd sC"wer se rvice pro·viders.
35 w
36 (j) "Record owner" means the owner of a parcel whose name
37 and addre ss appears on the last equa lized secured property tax
38 assessment ro ll , or in the case of any p ublic enti ty, the State of
39 Califo rni a, or the U nited States, means the representative of that
40 public entity at the address of that ent ity known to the agency.
96
-5-SB 1298
1 (l) "Sewer servi ce"
2 (k) "Sewer " means services and systems provided by al l rea l
3 estate, fixt ures, and personal property owned , contro ll ed , operate d ,
4 o r ma naged in connecti o n w it h o r to facilita te sewage coll ecti o n ,
5 treatment, o r di s positi o n for sanitary o r drain age p u rposes ,
6 including lateral a nd co nnecting sewers, inte rceptors, trun k a nd
7 o utfall l ine s , sanitary sewage treatme nt o r di sposal pl ants o r works ,
8 d rai ns , condui ts, o ut let s fo r s urface o r st o rm waters , a nd a ny and
9 all othe r works, pro perty, o r structures necessa ry o r convenient
I 0 f o r the coll ecti o n o r disposal o f sewage , industrial waste , or s urface
1 l o r sto rm waters. "Sewe r system" s hall no t include a sewer sys te m
12 tha t me re ly coll ect s sewage o n the property o f a s in g le owne r.
13 tm1
14 ( l ) "Registered profess io nal e ng ineer" means an e ng ineer
15 registered p ursua nt to the Profess io na l E ng in eers Act (Cha pter 7
16 (comme nci ng w ith S e cti o n 6700) of Di vis io n 3 of t he Bus ine ss
17 a nd Profess io n s Cod e).
18 w
19 ( m) "Vecto r control " means any syste m of publi c improvements
2 0 or services t hat is inte nded to provid e for the s urveill a nce,
2 1 preve nti o n , a ba te m ent, a nd contro l o f v ecto rs a s defin ed in
22 s ubdivis io n (k) of Secti o n 2 002 of th e He alth a nd Safety Cod e and
23 a pest as d e fin ed in Sec ti o n 5 006 of th e Food a nd Agric ultural
24 Cod e.
2 5 w
26 (n ) "Water" means a ny system of p ubli c improveme nts inte nd ed
27 to prov ide f or the producti o n , storage, s uppl y, treatment , o r
28 di stri bu ti o n of water fro m a ny source.
0
96
AMENDED IN SENATE APRIL 19 ,201 7
SENATE BILL No. 231
Introduced by Senator Hertzberg
February 2 , 20 17
An act to amend Section 53750 of, and to add Section 5375 1 to, the
Gove rnm ent Code, re lating to local gove rnment fin ance.
LEG ISLATIVE COUNSEL'S DIGEST
SB 231, as ame nd ed , Hertzbe rg. Local gove rnm ent: fees an d c harges.
Articles XIII C and Xlll D of th e Ca lifornia Constitution ge nera ll y
require that assess me nts, fees, and charges be submitted to property
owners for approva l or rejecti on after the provision of written notice
and the ho ldin g of a public hea ring. Ex istin g law, the Propos ition 218
Omnibus Impl e me ntat ion Act , prescribes specifi c procedures and
pa ra meters for local jurisdictions to comp ly with Articles XIII C and
XIII D of the Ca li fo rnia Constitution and defin es terms for th ese
purposes.
This bill would defi ne the term "sewer" for th ese purposes. The bill
wo uld also make fi ndin gs and declarations relat ing to the definition of
th e te rm "sewer" for th ese purposes.
Vote: majority. Appropriation: no. Fisc al co mmittee: no.
Sta te -mandated loca l program : no.
The people of the State of California do enac t as follows:
I SECTION I . Section 53750 of the Government Code is
2 amended to read:
3 5375 0 . For purposes of Article XIII C and Article XIII D of
4 the Cal ifo rni a Co nstituti o n and this a rticl e, the fo ll owing words
98
ATTACHMENT C
SB 231 -2-
I have the following meaning s, and shal l be read and interpreted in
2 light of the findings and declarations con tained in Section 53751:
3 (a) "Agency" means any local government as defined in
4 subdivi sion (b) of Section I of Article X III C of the Ca lifornia
5 Constitution.
6 (b) "Assessment" means any levy or charge by an agency upon
7 real property that i s based upon the spec ia l benefit co nferred upon
8 the rea l property by a public improve ment or service, that is
9 imposed to pay the cap i tal cost of the pub l ic improvement, the
10 maintenance and ope ration expenses of the publ i c improvement,
II o r th e cost of the se rvice being provided. "A ssessme nt" includes,
12 but i s not limited to , "special assess ment;' "benefit assessment,"
13 "mainten ance assessment;' and "speci al assessment tax."
14 (c) "Di st rict" means an area tha t is determined by an agency to
15 contain all of the parce l s that will receive a special benefit from a
16 proposed public improvement or se rvice .
17 (d) "Drainage system " means any system of public
18 improvements that is i ntended to prov ide for erosion contro l , for
19 landslide abatement, or for other types of water drainage.
20 (e) "Extended;' when applied to an existing tax or fee or charge ,
21 mean s a deci sio n by an agency to extend the stated effective period
22 for the tax or fee or charge , including, but not limited to,
23 amendment or remova l of a sunset provision or expi ration date.
24 (f) "Flood control " mean s any syste m of publi c i mprovements
25 that i s intended to protect property from overflow by water.
26 (g) "Identified parcel " means a parce l of rea l property that an
27 agency has iden tified as ha v ing a spec i al benefit confe rred upon
28 it and upon which a proposed assessment i s to be imposed, or a
29 parcel of real property upon which a proposed property-related
30 fee or charge i s proposed to be imposed.
3 1 (h) (I) "I ncreased," when app lied to a tax, assess ment , or
32 property -related fee or charge, means a decision by an age ncy th at
33 does either of the following:
34 (A) I ncreases any applicable rate used to ca lculate the tax,
35 assessment, fee , or charge.
36 (B) Revises the methodo l ogy by which the tax, assessment, fee,
37 or charge i s calculated , if th at revis i on re sul ts in an increased
38 amount bein g lev ied on any perso n or parce l .
39 (2) A tax , fee, or charge i s not deemed to be "increased" by an
40 agency action that does either or both of the following:
98
-3-SB 231
I (A) Adj usts the a mo un t of a tax , fee, o r charge in accordan ce
2 w ith a sched ul e of adjustm ents, incl ud ing a cl ear ly defined formul a
3 for in flat ion adj ustme nt tha t was adopted by th e agency pri or to
4 Nove mber 6 , 1996.
5 (B) Imple me nts o r co ll ects a previo us ly approved tax, fee, o r
6 c harge , so long as the ra te is not inc reased beyond the level
7 pre vious ly approved by the agency, a nd the me thodo logy
8 previ o us ly a pproved by the agency is not rev ised so as to result in
9 a n in c rease in t he a mou nt bein g lev ied o n a ny pe rson or parcel.
I 0 (3) A tax, assessme nt, fee, o r c ha rge is no t deemed to be
I I "in c reased" in t he case in w hi c h the actu a l pay me nts fro m a person
12 o r propert y ar e hi ghe r th a n woul d have res u lted whe n the agency
13 a pp roved the tax, assessment , fee, or c h arge, if th ose hi gher
14 payments are a mi butabl e to events othe r t ha n a n in creased rate or
15 rev ised methodology, suc h as a change in the density, inte ns ity,
16 o r na ture of the use of land .
17 (i) "Notice by mai l" means a ny notice requ ired by Article XIII C
18 o r Xlll D of t he Cal ifo rni a Constituti o n th at is accompli s hed
19 t hro ug h a mail in g, postage prepaid , de posite d in the Unite d S tates
20 Posta l Service an d is deemed g iven w he n so de posited. Noti ce by
2 1 ma il m ay be in cl uded in an y other ma ili ng to the record ow ne r
22 th at o the r w ise compl ies with Articl e XIII C o r X lll D of the
23 Califo rni a Constitution and thi s a rticl e, inc l udin g, but not limi ted
24 to, the mail ing of a bill f o r th e coll ecti o n of a n assessme nt or a
25 pro perty-re la te d f ee o r c ha rge.
26 U) "Record o wne r" means the ow ne r of a parcel w hose name
27 a nd address a ppears o n the last eq ua li zed secured property tax
28 assessme nt roll, or in the case of a ny publi c e nti ty, the State of
29 Cali fornia, o r th e U nited S tates, means the representative of that
3 0 pu bli c entity at t he a ddress of th at e nt ity kn ow n to the agency.
31 (k) "Sewer" H1eaHs servi e e s aHa syste ms p rov ided by includes
32 syst ems, a ll real estate, fi xtures , a nd pe rsona l property ow ned,
33 controll ed , opera ted , or man aged in conn ecti o n w it h or to faci litate
34 sewage coll ection , treatm ent, or dispositio n fo r sanitary o r d rai nage
35 p urposes, including late ra] a nd conn ectin g sewers , inte rc epto rs,
36 trun k a nd o utfa ll lines, sani tary sewage treatme nt or d isposal pla nts
37 or wo rk s, drain s, conduits, o utl et s fo r s urface o r s torm waters, and
38 a ny an d a ll o th e r wo rks, pro perty, o r struc t ures necessary o r
39 conve ni e nt for the co ll ection o r d isposa l of sewage , indu st rial
4 0 was te, o r s urface o r sto rm waters. "Sewer syste m" s ha ll no t include
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SB231 -4-
l a sewer syste m t hat merel y collects sewage on the property of a
2 single owner.
3 (/) "Regis tered profes sional engineer" means an eng ineer
4 regi stered pu rsuant to the Professiona l Engineers Act (Chapter 7
5 (co mmenc ing w ith Section 6700) of Divi si on 3 of the Busine ss
6 and Professio ns Co de ).
7 (m) "Vecto r co ntrol " means any sys tem of publi c improvements
8 or serv ices that i s intended to prov id e for the surve illance,
9 preventi o n, abate ment, and control of vecto rs as defi ned i n
I 0 subdi v i si on (k) of Section 2002 of th e H ea l th and Safety Code and
I I a pes t as defined in Secti o n 5006 of the Food and Agr icul tural
12 Code .
13 (n) "Wate r" means any sys tem of public improvements in tended
14 to provide for th e production, sto rage, supp l y, treatment, or
15 dis t ribution of wa ter from any source.
16 SEC. 2. Section 53751 is added to th e Government Cod e, to
17 read :
18 53751. The Legi slature finds and decla res all of th e follow in g:
19 (a) The o ngo ing, hist oric drought has made cl ear that Californi a
20 must inves t in a 21st century water manage ment sys tem capab l e
21 of effectivel y meeting the econom i c, soc i al , and env iro nmental
22 needs of the state.
23 (b) Suffici ent and rel i abl e fundin g to pay fo r l oca l water projects
24 is necessa ry to improve th e state's water infrastr uct ure.
25 (c) Pr oposi ti on 218 was approved by the vote r s at the Nove mber
26 5, 1996, statew ide Gefteral El eetio ft . ge neraL election. Some co urt
27 interpretations of t he l aw have co nstrained important too ls tha t
28 local governments need to man age storm water and drainage run off.
29 (d) Storm wate rs are carried off in sto rm sewers, and careful
30 man age ment is necessary to ensure adequate state water supplies ,
3 1 especially du ring drought , a nd to red uce pollution. But a court
32 decis i on has excl uded f ound sto rm wa ter fror'fl those subject to the
33 vot er-approval prov i si ons of Propositi on 2 18 that appl y to
34 property -related fees for sewer aHel vvater ,fees, pre ve ntin g many
35 important projects from be ing built.
36 (e) T he cou rt of appea l in H oward Jar vi s Taxpayers Ass'n v.
37 C ity of Sa li nas (2002) 98 Cai.App .4th 135 1 co ncluded that th e
38 term "sewer ," as used in Propos ition 2 18, i s "am bi guous " and
39 declined to use the statu tory definiti on of th e term "sewe r sys tem "
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1 system," which was part of t he then-ex i st ing law as ection 230.5
2 of the Public Util ities Code.
3 (f) The co urt in H oward Jarvis Taxpayers Ass'n v. City of
4 Salinas (2002) 98 Cal.App.4th 1351 fai led to follow l o ng -s tanding
5 principles of statutory construction by d i sregarding the pl ain
6 meaning of the term "sewer." Courts have l o ng held that sta tutory
7 construction r ules app l y t o initiative measures , including in cases
8 that apply speci fical l y to Proposition 218 (see People v. Bu stamante
9 tf-9961 (1997) 57 Ca l.App.4th--w3, 693; Keller v. Chowchilla
10 Wat er Dist. (2000) 80 Cal.App.4th 1006). When co nst r ui ng
II statutes, courts look first to the words of the statu te, which should
12 be given their usual , ord inary, and commonse nse meaning (People
13 v. Mejia (2012) 21 1 Cal.App.4th 586, 611 ). The purpose of
14 utilizin g the pl ain meanin g of sta tutory language i s to spa re th e
15 co urts the nece ss ity of trying to divine t he vote r s' intent by
16 resorting to seco ndary or subj ective indicator s. The court in
17 H oward Jarvis Taxpayers A ss'n v. City of Salinas (2002) 98
18 Cal.A pp.4th 1351 asserted its belief as to wh at mos t voters thought
19 when voting for Propositi on 218, but did not cite the voter pamphlet
20 or other accepted sources for detennining legi sl ative intent. I ns tead,
21 th e court substituted its own judgment for th e judgment of vote rs.
22 (g) Neither the wo rds "sanitary" nor "sewerage" are used in
23 Proposition 2 18 , and the common meaning of the term "sewer
24 services" is not "sanitary sewerage." In fact, the phrase "sanitary
25 sewerag e" is uncomm on.
26 (h) Proposition 218 exempts sewer and water ser vices from the
27 voter-approval requirement. Sewer and water services are
28 commonly co nsidered to ha ve a broad rea ch , encompassing the
29 p rovision of clean water and th en addressing th e conveyance and
30 t reatment of dirty water, wheth er that water is rendered unclean
31 by coming into contact with sewage or by flowing over the built-out
32 human environment a nd becoming urban ru noff
33 tg1
34 (i) Numerous so urces predating Propos ition 2 18 reject the noti o n
35 that the term "sewe r" appl ies o nl y to san itary se..-v ers , sewe rs and
36 sanitary sewerage , including, but not limited to:
37 ( 1) Section 230.5 of t he Public Utilities-Eede: Cod e, added by
38 Chapter 11 09 of the Statutes of 1970.
39 (2) Sect i on 23010.3 , wh ich WftS first added by Chapter 1193 of
40 the Statutes of 1963 .
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SB 231 -6-
I (3) The Street Improvement A ct of 1913 (repealed by Ctlapter
2 346 of ttle Statt1tes of 1963 ). I 9 I 3.
3 (4) Ttle Cttlifornia St1preme Cot1rt stated in Los Angeles LA.
4 County Fl ood C ontrol District Dist . v. South ern California Cal.
5 Edi so n Co. ( 1958 ) 51 Ca l .2d 33 1, whe re the Ca lifornia S uprem e
6 Court stated that "no d i stin ctio n has bee n mad e be twee n sanitary
7 sew er s and storm drains or sewe rs."
8 (5) Ttlc tern~. Many oth er cases wh ere the term "sewe r" has
9 been used interc hangeabl y to refer to bo th sa ni tary and storm
I 0 se wers in r'fla:ny ottler cases , i Rei ttdi n g, include , but a re no t I i mi ted
II to, County of R iverside v. Whitloc k (1972) 22 Cai.A pp.3 d 86 3,
12 Rarn se ier v. Oakl ey Sanitary Dist. (1 961 ) 197 Cal.A pp.2d 722 ,
13 and Torso n v. Flem ing (1928) 91 Cal .App . 168 .
14 (6) Dictio nary defi nitions o f sewer, which co urts ha ve f ound to
15 be an o bj ecti ve source f or determining comm o n or o rdinary
16 meanin g, including Web sters Webster's (1 976),Ameri ca n Herita ge
17 (1 969 ), an d O xf o rd En glish Di cti onary ( 1971 ).
18 w
19 UJ Pr ior legis l ati on has affirmed particular i nte rpret at i ons of
20 w ord s i n Propos ition 2 18, spec i fical l y A sse mbl y B ill 2403 of th e
21 2013 -14 Re gul ar Se ssi on (Chap ter 78 of the Statutes o f 2014).
22 (k ) In Crawley v. Alameda Waste Manag em ent Auth or ity (201 5 )
23 243 Ca lApp.4th 3 96, the Co urt of Appeal re lied on th e statutory
24 definition of "refuse collectio n ser vices " to inte rpret the m eaning
25 of tha t phrase in Prop osition 2 I 8 , and fo und that th is interpretation
26 wa s fu rther s upported b y the p lain m eaning of refu se . Con s iste nt
27 with this dec is ion , in det ermining t he defin it ion of "sewer," the
28 p lai n meaning rule shall apply in c onjunct ion with th e defini t ions
29 of t erms as p rovided in Section53750 .
30 tt1
3 1 (I) The Legi sl atu re reaffirm s and reiterate s th at t he defini t i on
32 f oun d in Sec ti on 230.5 of the Publ ic U tilities Code i s th e definiti on
33
34
35
36
37
38
39
40
of "sewer" or "sewer service" th at shoul d be used in the Propos ition
218 Omnibus I mpl ementat i o n Act.
(m) Co urts have read th e Legisla ture 's d efinition of "water "
in the Propos ition 218 Omnibus Implem enta tion A ct t o include
re lated ser vice s . In Griffith v. Pajaro Va ll ey Water Management
Agency (20 13) 220 CalApp.4th 586, the Court of Appeal conc urred
with the Legislature 's view that "water service means more than
just supply ing wat er," based upon the d efinition of water p rovided
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1 by the Prop osition 2 18 Omnibus Implementation A c t, and found
2 tha t actions necessar y to pro vide water can be funded th ro ugh
3 fees fo r water service. Cons istent with th is decision , "se wer "
4 should be interp reted to include services necessary to co llect , treat,
5 or d ispose of sewage, indu strial waste , or surface or storm wa ters,
6 and any entity that co llec ts, treats, or d isposes of any of these
7 necessar ily p rovides sewer service.
0
98