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Home My WebLink AboutAB 2564 - Irrigation Districts 1 : ' � ^"7��'r.-�-_ �1�-� CITY OF PALM DESERT � � OFFICE OF THE CITY MANAGER - STAFF REPORT '�� , . REQUEST: That the City Council approve recommendation to support AB 2564 (Garcia). DATE: April 24, 2008 SUBMITTED BY: Carlos L. Ortega, City Manager Recommendation: By Minute Motion, authorize the Mayor and City Council to send a letter of support of Assembly Bill 2564 (Garcia). This bill would require that any utility having over 50,000 connections with 75% of those connections outside the current boundaries would be required to place on the ballot of the next general election a proposal to consider reorganizing boundaries or the creation of a separate utility district for providing electrical service. Background: Assemblywoman Bonnie Garcia authored AB 2564 as an attempt to require Imperial Irrigation District(IID)to open governance to the Coachella Valley by placing this issue on the next general election ballot. Currently, two-thirds of IID customers reside within the Coachella Valley, but the IID boundary lines are entirely within Imperial County. Therefore, the customers who reside in the Coachella Valley are not eligible to vote on any ballot items pertaining to their electrical service or run for Board positions. Within the City of Palm Desert, there are over 300 homes,49 businesses and a few clubhouses and model homes that are customers of IID. These homes and businesses in Palm Desert plus those in the other cities in the Eastern Coachella Valley make up two-thirds of the IID customer base. These customers currently have no voice or representation on the Board of Directors of the Imperial Irrigation District. This bill would change that and allow Coachella Valley customers more input and representation in that utility. This bill DOES NOT force Imperial Irrigation District to give the Coachella Valley a vote; it DOES require them to put the issue on the ballot. C�STY COUNCIL CTION: Submitted By: �pPROVED,,,,,..,,,�� DENIED �?.E�E I'STED GT�iLR . ;�' � s` �„l� �'.ETING D:r�TE ' ' �.,.....�.,r CARLOS L. TEGA �S' City Manager Na�4' �n '�` ABSEiv�:� � 1�BSTAIi��: `�V G:ICITYMGRITONYBECKERIWORDFILESIACaENDAFORM-TEMPLATE(STAFFREPoRTJ.DOC �ZIFIED BY: � (�riginal on File wit City C1erk' s Offi�� AMENDED IN ASSEMBLY APRIL 3, 2008 CALIPORNIA LEGISLATURE-200]-OS REGULAR SESSION ASSEMBLY BILL No. 2564 Introduced by Assembly Member Garcia February 22, 2008 An act t� �------' `'��~ "'^^ �Oadd Section 22120.5 to, and add Part 2.S(commencing with Section 20990)to Division 11 of, the Water Code, relating to irrigation districts. I.EGISLATIVE COUNSEL'S DIGEST AB 2564, as amended, Garcia. Irrigation districts. Existing law, the Irrigarion District Law, with certain exceptions, requires a director on the board of an imgation district that provides electricity for residents of the district to be a voter of the district and a resident of the division that the director represents at the time of his or her nomination or appointment and during his or her entire term.Existing !aw authorizes an irrigation district to sell, dispose of, and distribute electricity for use outside of the district's bou»daries. , �� This bill would prohibit certain irrigation districts from discriminating,as defined,agairrst electrical ratepayers residing outside the district boundaries. The bill would also prohibit certain irrigation districts from discriminating, as defined, against electrical ratepayers in favor of water ratepayers. These prohibitiorrs would be applicable to an irrigation district that (1) has more than S0,000 service connections for electrica!service,and(2)has a majority of the districl's service connectiorrs for electrical service outside the district bourtdaries. 98 AB 2564 —2— This bill would require the governing board of any irrigation district that supplies electricity outside the district boundaries that(1)has more than S0,000 service connections for electricul service, and(2)has 7S% of the district's service connectiorrs for electrical service outside the district boundaries, within one year of ineeting these conditions, to cause to be placed on the ballot of the next regularly scheduled general election,for vote by the voters within the electrical service territory of the district, a proposal to reorganize to form a separate utility district, as defined,for the purpose of providing electrical service. By reguiring the governing board of an irrigation district place certain matter on the ballot of a general election if certain conditions are met, the bill would impose a state-mandated local program. The California Corrstitution requires the state to reimburse local agencies and schao!districts for certain costs mandated by the state. Statutory prr�visiorts establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a spec�ed reason. Vote: majority. Appropriation: no. Fiscal comrnittee: no. State-mandated local program: tie-yes. The people of the State of California do enact as follows: 1 SECTION 1. Part 2.5 (commencing with Section 20990) is 2 added to Division 11 of the Water Code, to read.• 3 4 PART 2.S. REORGAMZATION OF ELECTRICAL SERVICE 5 6 20990. This part is applicable to any irrigation district that 7 supplies eleclric power outside the district boundries pursuant to 8 Section 22120, if both of the following conditions exist.• 9 (a) The district has more than SD,000 service connections for 10 electrical service. 11 (b) Seventy-five percent or more of the district's service 12 connections for electrical service are outside the district boundries. 13 20991. For purposes of this part, "utility district"means either 14 a municipal utility dutrict formed and operating pursuunt to 15 Division 6(commencing with Section I1 S01)of, or a public utility 16 district formed artd operating pursuant to Division 7(commencing 17 with Section 1 SS01)of, the Public Utilities Code. 98 —3— AB 2564 1 20992. Within one year of an irrigation district meeting the 2 two conditions in subdivision(a) of Section 20990, the governing 3 board of the district shal!cause to be placed on the ballot of the 4 nezt regularly scheduled genera!election,for vote by the voters 5 within the electrical service territory of the district, a proposal to 6 reorganize to form a separate utility district for the purpose of 7 providing electrical service. 8 20993. (a) ifotes for and against reorganizing to form a 9 separate utiliry district shall be separately tabulated for the 10 fallowing: 11 (1) The voters within the district. 12 (2) The voters within the electrical service territory of the district 13 that are outside the district boundries. 14 (b) If a majoriry of the total votes within the district and outside 15 the district are in favor of reorganizing to form a utiliry district 16 for the provision of electricity, a separate utility district shall be 17 formed to provide electrical service throughout the entire electrical 18 service territory of the irrigation district. 19 (c) If the majority of the votes within the electrical service 20 territory of the district that are outside the district boundries are 21 in favor of reorganizing to form a separate utiliry district for the 22 provision of electricity, but the majority of votes within the district 23 are against reorganization, a separate utility district shall be 24 formed to provide electrical service only for the electrical service 25 territory of the irrigation district that is outside the district. 26 (d) If the majority of the votes within the electrical service 27 territory of the district that are outside the district bo�ndries are 28 against reorganization, the governing board of the irrigation 29 district shal!take no further action to form a separate utiliry district 30 for providing electrical service within the service territory of the 31 irrigation district. 32 20994. The irrigation district and any utiliry district formed 33 pursuant to this part may form a joint powers agency. 34 20995. Notwithstanding arry other law, an individual may serve 35 on both the governing board of the irrigation district and a utiliry 36 district formed pursuant to this part. 37 SEC. 2. Section 22120.S is udded to the Water Code, to read: 38 2.2120.S. (a) This section is applicable to arry irrigation district 39 that supplies electric power outside the district bourrdries pursuant 40 to Section 22120, if both of the following conditions exist.• 98 AB 2564 —4— 1 (1) The district has more than S0,000 service connections for 2 electrical service. 3 (2) A majority of the district's service connectiorrs for electrical 4 service are outside the district boundries. 5 (b) An irrigation district that meets the conditions in subdivision 6 (a) shall not discriminate against electrica!ratepayers residing 7 outside the district boundries. For purposes of this subdivision, 8 "discriminate"means a di.fJ`'erence in rates that is not functionally 9 related to a customer class�cation that is independent of where 10 the customer resides. 11 (c) An irrigation district that meets the conditions in subdivision 12 (a)shal!not discriminate against electrical ratepayers in favor of 13 water ratepayers.For purposes of this subdivision, "discriminate" 14 means the allocation of costs to electrical ratepayers that are 15 recovered in electrical rates that should reasonably be allocated 16 to water users. 17 (d) Any court that frnds that the requirements of this section 18 have been violated shall make a request to the state Public Utilities 19 Commission to fashion a remedy for the violation. 20 SEC. 3. No reimbursement is required by this act pursuant to 21 Section 6 of Article XIII B of the California Constitution because 22 a local agency or school district has the authority to levy service 23 charges,fees, or assessments suf�"icient to pay for the program or 24 level ofservice mandated by this act, within the meaning ofSection 25 17556 of the Government Code. 26 �$n�rrn��ziiro"�rc�-'rr ov�=v"'i'ti2��Fri�'r�vu�-isi[rit2a�Su-iv 27 1°28f�` 2g . , 27 d:..:,.:,.« ..L..,11 L.. .. ,.a.... ...�.1 1..�.].,__..�.._ . aL- �]-�'-� --� - � 30 31 32 , 33 �,'__.:__ ,, �:__...__ ��..��...� ,.� ��..�.._ _,__.: L „ L 34 , , 35 36 . 37 38 , 39 98 -5- AB 2564 1 2 . 3 4 , , 5 , 6 7 , g „r,. a:r.,.�,._..�,.,.�..a ,..,, r�,..:.._ ..�_,..:,._ ,► a:_,.... ,.i..,.....a ... 9 10 11 . 12 , 13 , 14 , 15 16 . 17 18 19 20 . 21 22 23 , 24 25 . 26 , , 27 28 29 . 30 , , 31 32 . O 98