HomeMy WebLinkAboutResolution 1989 - 0177RESOLUTION NO.89—177
SUPPORTING STATE OF CALIFORNIA $200 MILLION
BOND ISSUE ON THE 1990 BALLOT (ASSEMBLY
BILL 1312
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS
OF COUNTY SANITATION DISTRICTS NOS.1,2,3,
5,6,7,11,13 AND 14 OF ORANGE COUNTY,
CALIFORNIA,SUPPORTING THE STATE OF CALIFORNIA
$200 MILLION BOND ISSUE ON THE 1990 BALLOT
(ASSEMBLY BILL 1312)TO PROVIDE GRANTS AND
LONG-TERM LOANS TO PUBLIC ENTITIES DESIRING
TO DEVELOP WATER RECLAMATION PROJECTS
WHEREAS,availability of potable water supplies in California continues to
be subject to drought conditions,imported water and legal challenges;and,
WHEREAS,population growth in Orange County and all of California
continues to place even greater demands on potable water supplies;and,
WHEREAS,the technology and economic feasibility of water reclamation have
made the reuse of water a viable alternative for nonpotable purposes;and,
WHEREAS,reclaimed water may be used in place of potable water for many
existing purposes such as landscape and agricultural irrigation;and,
WHEREAS,development of residential areas with greenbelts and the increase
in recreational facilities such as golf courses are increasing the potential
market for reclaimed water;and,
WHEREAS,the State Water Resources Control Board,State Health Department
and local health agencies approve,with appropriate safeguards,the use of
reclaimed water;and,
WHEREAS,the County Sanitation Districts of Orange County,the Orange
County Water District,the Irvine Ranch Water District,and other public
entities have already established a record of successfully producing and
distributing reclaimed water;and,
—1—
WHEREAS,public opinion polls have shown that in the last five years
Californians overwhelmingly support the use of reclaimed water for irrigation
and other nonpotable purposes,and the Sanitation Districts recently received
such expressions of support from the residents during public workshops and
hearings concerning the Sanitation Districts’recently—adopted 30—year Action
Plan for Wastewater Management;and,
WHEREAS,public entities throughout the state that use reclaimed water for
greenbelt and park irrigation already have reclaimed water projects in
conceptual planning,design and construction phases which will produce
686,105 acre—feet of reclaimed water,replacing 530,970 acre—feet of potable
water now used,enough to supply water to more than two million California
residents;and,
WHEREAS,the cost of the reclaimed water projects in conceptual planning,
design and construction phases totals $1.97 billion,with less than $130 million
now funded,and include Sanitation Districts’projects totaling $217,600,000 for
three reclamation plants;and,
WHEREAS,there is still the need for $1.84 billion in financial assistance
for all or a portion of these projects in conceptual planning,design and
construction phases.
NOW,THEREFORE,the Boards of Directors of County Sanitation Districts
Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California,
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 That the County Sanitation Districts of Orange County do
hereby declare their support of the State of California $200 million bond issue
on the 1990 ballot (Assembly Bill 1312,attached hereto as Exhibit 1 and made a
-2-
part of this resolution)to provide grants and long—term loans to public
entities desiring to develop water reclamation projects;and,
Section 2 That the Secretary of the Boards of Directors is hereby
authorized and directed to mail copies of this resolution to appropriate State
Legi slators.
PASSED AND ADOPTED at a regular meeting held December 13,1989.
—3—
PAGE
EXHIBIT 1
BILL NUMBER:AB 1312
BILL TEXT
AMENDED IN ASSEMBLY MAY 16,1989
AMENDED IN ASSEMBLY APRIL 24,1989
INTRODUCED BY Assembly Mem~e~~a~Ee Members Filante and Bradley
MARCH 6,1989
An act to add Chapter 18 (commencing with Section 14100)to Division 7 of the
Water Code,relating to financing a water reclamation 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.
LEGISLATIVE COUNSEL’S DIGEST
AB 1312,as amended,Filante.Water reclamation:state bonds.
Under existing law,various bond acts have been approved by the voters to
provide funds for the planning,research,development,and construction of
treatment works and water reclamation facilities.
This bill would enact the Water Reclamation Bond Law of 1990 whith,if
adopted,would authorize,for purposes of financing a water reclamation
•program the issuance,pursuant to the State General Obligation Bond Law,of
bonds in the amount of $200,000,000.
The bill would provide for submission of the bond act to the voters at the
next statewide election in accordance with specified law.
Vote:2/3.Appropriation:no.Fiscal committee:yes.State—mandated
local program:no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1.Chapter 18 (commencing with Section 14100)is added to Divisior~
7 of the Water Code,to read:
CHAPTER 18.WATER RECLAMATION BOND LAW OF 1990
Article 1.General Provisions
14100.This chapter shall be known and may be cited as the Water
Reclamation Bond Law of 1990.
14101.The Legislature finds and declares as follows:
(a)Clean water is essential to the public health,safety,and welfare.
EXHIBIT 1 TO RESOLUTION NO.89-177
PAGE 2
BILL NUMBER:AB 1312
BILL TEXT
(b)Clean water fosters the beauty of California’s environment and the
expansion of industry and agriculture,maintains fish and wildlife,and
supports recreation.
(c)The state’s growing population has increasing needs for clean water
supplies.
(d)It is of paramount importance that the limited water resources of the
state be protected from pollution,conserved,and reclaimed whenever possible
to ensure continued economic,community,and social growth.
(e)Because water knows no political boundaries,it is desirable for the
state to contribute to the construction of needed facilities in order to meet
its obligations to protect and promote the health,safety,and welfare of its
people and the environment.
(f)The people of California have a primary interest in the development of
facilities to reclaim waste water to supplement existing water supplies and tc
assist in meeting the future water needs of the state.
(g)A significant portion of the future water needs of California may be
met by the use of reclaimed water.
(h)Local public agencies have the primary responsibility for the
construction,operation,and maintenance of water reclamation facilities.
(i)Local public agencies need financial assistance to make cost—effective
reclamation projects financially feasible.
(j)It is the intent of this chapter to provide funds for the design and
construction of eligible water reclamation projects and for the development
and implementation of programs and activities that lead to increased use of
reclaimed water in California.
14102.As used in this chapter,the following words have the following
meanings:
(a)‘Board’means the State Water Resources Control Board.
(b)‘Committee’means the Water Reclamation Finance Committee created by
Section 14112.
(c)‘Eligible reclamation project’means a water reclamation project which
is cost—effective when compared to the development of other new sources of
water.These projects shall comply with applicable water quality standards,
policies,and plans.
(d)‘Fund’means the 1990 Water Reclamation Fund created pursuant to
Section 14105.
(e)‘Local public agency’means any city,county,district,joint powers
authority,or any other local public body or political subdivision of the
state created by or pursuant to state law and involved with water or waste
water management.
Article 2.Water Reclamation Bond Program
14105.The proceeds of bonds issued and sold pursuant to this chapter
shall be deposited in the 1990 Water Reclamation Fund,which is hereby
created.
PAGE
BILL NUMBER:AB 1312
BILL TEXT
14105.3.Notwithstanding Section 13340 of the Government Code,the money
in the fund is hereby continuously appropriated,without regard to fiscal
years,to the board to enter into contracts with local public agencies havin’
authority to construct,operate,and maintain water reclamation projects,for
loans to aid in the design and construction of eligible water reclamation
projects.
14105.5.Any contract for an eligible water reclamation project entered
into pursuant to Section 14105.3 may include such provisions as determined by
the board and shall include both of the following provisions:
(a)An estimate of the reasonable cost of the eligible water reclamation
project.
(b)An agreement by the local public agency to proceed expeditiously with,
and complete,the eligible water reclamation project;commence operation of
the project in accordance with applicable provisions of law,and provide for
the payment of the local public agency’s share of the cost of the project,
including principal and interest on any state loan made pursuant to this
section.
14106.(a)Loan contracts may not provide for a moratorium on payments of
principal or interest.
(b)Any loans made from the fund may be for a period of up to 20 years.
(c)The board may make loans up to 100 percent of the total eligible cost
of design and construction of an eligible reclamation project.
14106.5.(a)The interest rate for the loans shall be set at a rate equal
to 50 percent of the interest rate paid by the state on the most recent sale
of state general obligation bonds,with that rate to be computed according to
S the true interest cost method.
(b)The interest rate for loans to public agencies ~~eq~~emea~e
~he~~~he ~ee e~Eee~e~ed wa~e~which have achieved a
minimum of 5 percent reuse of total water supplies through
reclamation as determined the board shall be set at a rate equal
to 45 percent of the interest rate paid by the state on the most recent sale
of state general obligation bonds,with that rate to be computed according to
the true interest cost method.
(c)tf the interest rate so determined is not a multiple of one—tenth of 1
percent,the interest rate shall be set at the next higher multiple of
one—tenth of 1 percent.
14107.All principal and interest from loans shall be returned to the fun~
for new loans.
14107.5.As approved by the Legislature annually in the Budget Act,the
board may expend for the administration of this chapter not more than 5
percent of the amount of the bonds authorized to be issued under this chapter
14108.As approved by the Legislature annually in the Budget Act,the
board may,by contract or otherwise,undertake plans,surveys,research,
development,and studies necessary,convenient,or desirable to carry out th~
purposes of this division,and may prepare recommendations with regard
thereto,including the preparation of comprehensive statewide or areawide
PAGE L
BILL NUMBER:AB 1312
SILL TEXT
studies and reports on water reclamation and the collection,treatment,and
disposal of waste under a comprehensive cooperative plan.
14108.5.The board may adopt rules,regulations,and guidelines necessary
or appropriate to carry out this chapter.
Article 3.Fiscal Provisions
14110.Bonds in the total amount of two hundred million dollars
($200,000,000),or so much thereof as is necessary,may be issued and sold to
provide a fund to be used for carrying out the purposes expressed in this
chapter and to be used to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.The bonds.
when sold,shall be and constitute a valid and binding obligation of the StatE
of California,and the full faith and credit of the State of California is
hereby pledged for the punctual payment of both principal of,and interest on
the bonds as the principal and interest become due and payable.
14111.The bonds authorized by this chapter shall be prepared,executed,
issued,sold,paid,and redeemed as provided in the State General Obligation
Bond Law (Chapter 4 (commencing with Section 16720)of Part 3 of Division 4 o:
Title 2 of the Government Code),and all of the provisions of that law apply
to the bonds and to this chapter and are hereby incorporated in this chapte~
as though set forth in full in this chapter.
14112.(a)Solely for the purpose of authorizing the issuance and sale,
pursuant to the State General Obligation Bond Law,of the bonds authorized by
this chapter,the Water Reclamation Finance Committee is hereby created.For
purposes of this chapter,the Water Reclamation Finance Committee is ‘the
committee’as that term is used in the State General Obligation Bond Law.ThE
committee consists of the Governor,the Controller,the Treasurer,the
Director of Finance,and the Executive Director of the State Water Resources
Control Board,or their designated representatives.A majority of the
committee may act for the committee.
(b)For purposes of the State General Obligation Bond Law,the board is
designated the ‘board.’
14113.The committee shall determine whether or not it is necessary or
desirable to Issue bonds authorized pursuant to this chapter in order to carr:
out the actions specified in Section 14105.3,and,if so,the amount of bonds
to be issued and sold.Successive issues of bonds may be authorized and sold
to carry out those actions progressively,and it is not necessary that all of
the bonds authorized to be issued be sold at any one time.
14114.There shall be collected each year and in the same manner and at
the same time as other state revenue is collected,in addition to the ordInar
revenues of the state,a sum in an amount required to pay the principal of,
and interest on,the bonds each year.It is the duty of all officers charged
by law with any duty in regard to the collection of the revenue to do and
perform each and every act which is necessary to collect that additional sum.
14115.Notwithstanding Section 13340 of the Government Code,there is
hereby appropriated from the General Fund in the State Treasury,for the
PAGE
BILL NUMBER:AB 1312
BILL TEXT
purposes of this chapter,an amount that will equal the total of the
following:
(a)The sum annually necessary to pay the principal of,and interest on,
bonds issued and sold pursuant to this chapter,as the principal and interest
become due and payable.
(b)The sum which is necessary to carry out the provisions of Section
14116,appropriated without regard to fiscal years.
14116.For the purposes of carrying out this chapter,the Director of
Finance may authorize the withdrawal from the General Fund of an amount or
amounts not to exceed the amount of the unsold bonds which have been
authorized by the committee to be sold for the purpose of carrying out this
chapter.Any amounts withdrawn shall be deposited in the fund.Any money
made available under this section shall be returned to the General Fund,plus
the interest that the amounts would have earned in the Pooled Money Investmen
Account,from money received from the sale of bonds for the purpose of
carrying out this chapter.
14116.5.The board may request the Pooled Money Investment Board to make
loan from the Pooled Money Investment Account,in accordance with Section
16312 of the Government Code,for the purposes of carrying out this chapter.
The amount of the request shall not exceed the amount of the unsold bonds
which the committee has,by resolution,authorized to be sold for the purpose
of carrying out this chapter.The board shall execute those documents
required by the Pooled Money Investment Board to obtain and repay the loan.
Any amounts loaned shall be deposited in the fund to be allocated by the boar
in accordance with this chapter.
14117.(a)Notwithstanding any other provision of this chapter and to the
extent permitted by federal and state law,the money in the fund may be used
to rebate to the federal government all arbitrage profits required by the
Federal Tax Reform Act of 1986 or any amendment thereof or supplement thereto
To the extent that the money in the fund may not be used for that purpose du
to restraints of federal or state law,any rebates required shall be paid fm
the General Fund or other sources as the Legislature may require.
(b)Notwithstanding any other provision of law,or rule or regulation,the
board may enter into contracts,or procure those services and equipment,whic
may be necessary to ensure prompt and complete compliance with any provisions
relating to the fund imposed by either the Federal Tax Reform Act of 1986 or
the Federal Clean Water Act (33 U.S.C.Sec.1251 et seq.)or any amendment
thereof or supplement thereto.
14118.All money deposited in the fund which is derived from premium and
accrued interest on bonds sold shall be reserved in the fund and shall be
available for transfer to the General Fund as a credit to expenditures for
bond interest.
•
14119.The bonds may be refunded in accordance with Article 6 (commencing
with Section 16780)of the State General Obligation Bond Law.
14120.The Legislature hereby finds and declares that,inasmuch as the
proceeds from the sale of bonds authorized by this chapter are not ‘proceeds
PAGE 6
SILL NuMBER:AS 1312
SILL TEXT
of taxes’as that term is used in Article XIIIB of the California
Constitution,the disbursement of these proceeds is not subject to the
limitations imposed by that article.
SEC.2.Section 1 of this act shall take effect upon the adoption by the
voters of the Water Reclamation Bond Law of 1990,as set forth in Section 1 of
this act.
SEC.3.Section 1 of this act shall be submitted to the voters at the next
statewide election in accordance with provisions of the Government Code and
the Elections Code governing the submission of statewide measures to the
voters.
SEC.4.Notwithstanding any other provision of law,all ballots of the
election shall have printed thereon and in a square thereof,the words:
‘Water Reclamation Bond Law of 1990,’and in the same square under those
words,the following in 8—point type:‘This act provides for a bond issue of
two hundred million dollars ($200,000,000)to provide funds for a water
reclamation program.’Opposite the square,there shall be left spaces in
which the voters may place a cross in the manner required by law to indicate
whether they vote for or against the act.
Where the voting in the election is done by means of voting machines used
pursuant to law in the manner that carries out the intent of this section,th~
use of the voting machines and the expression of the voters’choice by means
thereof are in compliance with this section.
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
I,RITA J.BROWN,Secretary of the Boards of Directors of County
Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
California,do hereby certify that the foregoing Resolution No.89—177 was
passed and adopted at a regular meeting of said Boards on the 13th day of
December,1989,by the following vote,to wit:
AYES:Margaret M.Arnold,Wes Bannister,Roland E.Bigonger,
A.B.“Buck”Catlin,John C.Cox,Jr.,Norman E.Culver,
Richard B.Edgar,Beth Graham,Don R.Griffin,Dan Griset,
Robert Hanson,Evelyn Hart,Ursula E.Kennedy,William
D.Mahoney,Tom Mays,James Neal,Carrey J.Nelson,Bob Perry,
Ruthelyn Plumer,Richard T.Polls,Don R.Roth,Phil Sansone,
J.R.“Bob”Siefen,Wayne Silzel,Don E.Smith,Peer A.Swan,
Paul Verellen,James A.Wahner,Edna Wilson,Grace H.Winchell
NOES:None
ABSENT:Arthur G.Newton,Irv Pickler,Sally Anne Sheridan,Charles E.
Sylvia,Wayne D.Wedin
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts
Nos.2,3,5,6,7,11,13 and 14 of Orange County,California,this 13th day
of December,1989.
Rita J.Brown,Secretary
Boards of Directors,County
Sanitation Districts Nos.1,2,3,5,
6,7,11,13 and 14 of Orange County,
California