BILL NUMBER: AB 727	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2015

INTRODUCED BY   Assembly Member Wilk

                        FEBRUARY 25, 2015

   An act to amend Section 21531 of the Public Contract Code, and to
amend Sections 11, 15, 26.1, 29.1, 29.2, 29.4, and 29.7 of, and to
repeal Sections 29.5 and 29.6 of, the Castaic Lake Water Agency Law
(Chapter 28 of the First Extraordinary Session of the Statutes of
1962), relating to the Castaic Lake Water Agency.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 727, as amended, Wilk. Castaic Lake Water Agency.
   (1) Existing law, the Castaic Lake Water Agency Law, creates the
Castaic Lake Water Agency and authorizes the agency to acquire water
and water rights, including water from the State Water Project, and
to provide, sell, and deliver water at wholesale for municipal,
industrial, domestic, and other purposes. The law authorizes the
agency to construct, operate, and maintain works to develop
hydroelectric energy and to contract for the sale of the right to use
falling water for electrical energy purposes.
   This bill would authorize the agency to construct, operate, and
maintain works to develop energy projects and to contract for the
sale of the right to use facilities or real property for electric
energy purposes.
   (2) Existing law authorizes the agency to develop, treat,
distribute, and reclaim water, and to store and recover water from
groundwater basins located outside the boundaries of the agency.
   This bill would authorize the  agency to exercise these
powers over groundwater basins located both within and outside the
boundaries of the agency. This bill would authorize the 
board of directors of the agency to adopt and carry out a plan to
finance or reimburse the agency for advancing net costs of
remediating groundwater contamination.
   (3) Existing law authorizes the agency to establish and impose a
facility capacity fee for the right to make a new retail connection
to the water distribution system of any retail water distributor
within the agency that obtains water supplies from the agency.
Existing law requires the proceeds of the facility capacity fee to be
used exclusively by the board of directors of the agency for the
annual capital budget of the agency, which is the sum annually
projected by the board of directors to be reasonably necessary for
prescribed purposes. Existing law authorizes the board of directors
to adopt a multiyear capital budget, not to encompass more than 3
agency fiscal years.
   This bill would define a facility capacity fee and authorize the
agency to establish and impose the fee on any person who makes a new
retail connection or has an existing retail connection to the water
distribution system. This bill would eliminate payments of capital
costs to the State of California for purposes of the State Water
Project from being a component of the annual facility capacity fee
capital budget of the agency. This bill would eliminate the
authorization to adopt a multiyear capital budget.
   (4) Existing law authorizes the board of directors, by majority
vote, to appoint from its members one vice president.
   This bill would authorize the board of directors to appoint from
its members one or more vice presidents.
   (5) Existing law requires the board of directors of the agency to
annually adopt a resolution of intention to form new water service
areas, or to continue, amend, or modify water service areas
previously established.
   This bill would not require the board of directors to adopt this
resolution if there is no change from the previous year to the water
service areas or to the existing facility capacity fees.
   (6) Existing law provides that until July 1, 1991, or the date the
board of directors finds and declares by resolution that there is
more than 25,000 acre-feet of potable water available each  year
 from the agency, whichever is later, the agency is required to
allocated water of the agency to each purveyor on a specified
percentage basis and that the allocation of agency water after this
date is to be with respect to agency water service areas.
   This bill would repeal these provisions.
   (7) Existing law authorizes the agency to prescribe methods for
the construction of works and for the letting of contracts for the
construction of works, structures, or equipment, or the performance
or furnishing of labor, materials, or supplies, for carrying out
specified provisions. Existing law requires all contracts for any
improvement or unit of work when the cost estimate exceeds $5,000 to
be let to the lowest responsible bidder or bidders. Existing law
authorizes the agency to have work done by force account without
advertising for bids and to purchase in the open market materials and
supplies when the estimated cost of the work does not exceed $5,000.

   This bill would revise the cost estimate limit for the purpose of
these provisions to $75,000.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 21531 of the Public Contract Code is amended to
read:
   21531.  (a) The Castaic Lake Water Agency shall have power to
prescribe methods for the construction of works and for the letting
of contracts for the construction of works, structures, or equipment,
or the performance or furnishing of labor, materials, or supplies,
necessary or convenient for carrying out any of the purposes of this
act or for the acquisition or disposal of any real or personal
property; provided, that all contracts for any improvement or unit of
work, when the cost according to the estimate of the engineer will
exceed seventy-five thousand dollars  ($75,000) 
 ($75,000),  shall be let to the lowest responsible bidder
or bidders as provided in this article. The board shall first
determine whether the contract shall be let as a single unit or
divided into severable parts. The board shall advertise for bids by
three insertions in a daily newspaper of general circulation
published in the agency or by two insertions in a nondaily newspaper
of general circulation published in the agency or, if no newspaper is
published in the agency, in any newspaper of general circulation
distributed in the agency, inviting sealed proposals for the
construction or performance of the improvement or work. The call for
bids shall state whether the work shall be performed in one unit or
divided into parts. The work may be let under a single contract or
several contracts, as stated in the call. The board shall require the
successful bidders to file with the board good and sufficient bonds
to be approved by the board conditioned upon the faithful performance
of the contract and upon the payment of their claims for labor and
material. The bonds shall comply with Title 3 (commencing with
Section 9000) of Part 6 of Division 4 of the Civil Code. The board
may reject any bid.
   (b) In the event all proposals are rejected or no proposals are
received, or the estimated cost of the work does not exceed
seventy-five thousand dollars ($75,000) or the work consists of
channel protection, maintenance work, or emergency work, the board
may have the work done by force account without advertising for bids.
In case of an emergency, if notice for bids to let contracts will
not be given, the board shall comply with Chapter 2.5 (commencing
with Section 22050).
   (c) The agency may purchase in the open market without advertising
for bids, materials and supplies for use in any work, either under
contract or by force account; provided, however, that materials and
supplies for use in any new construction work or improvement, except
work referred to in subdivision (b), shall not be purchased if the
cost exceeds seventy-five thousand dollars ($75,000), without
advertising for bids and awarding the contract to the lowest
responsible bidder.
  SEC. 2.  Section 11 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 1 of Chapter 170 of the Statutes of 1998, is
amended to read:
  Sec. 11.  The board of directors shall be the governing body of the
agency. The board shall hold its first meeting as soon as possible
after the appointment and certification of the first board of
directors. The board shall choose one of its members to be president,
and shall thereupon provide for the time and place of holding its
meetings and the manner in which its special meetings may be called.
All legislative sessions of the board, whether regular or special,
shall be open to the public. A majority of the board shall constitute
a quorum for the transaction of business. At its first meeting in
the month of January of each odd-numbered year, the board shall
choose one of its members president. The board, by majority vote, may
appoint from its members one or more vice presidents and may define
the duties of a vice president.
  SEC. 3.  Section 15 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 1 of Chapter 910 of the Statutes of 1989, is
amended to read:
  Sec. 15.  The agency may acquire water and water rights, including,
but not limited to, water from the State of California under the
State Water Resources Development System, and provide, sell, and
deliver that water at wholesale only, for municipal, industrial,
domestic, and other purposes, through a transmission system to be
acquired or constructed by the agency. To carry out these purposes,
the agency shall have the following powers:
   (a) To have perpetual succession.
   (b) To sue and be sued, except as otherwise provided herein or by
law, in all actions and proceedings in all courts and tribunals of
competent jurisdiction.
   (c) To adopt a seal and alter it at pleasure.
   (d) To take by grant, purchase, gift, devise, or lease, hold, use,
enjoy, and to lease or dispose of real and personal property of
every kind, within or without the agency.
   (e) To acquire, or contract to acquire, waterworks or a waterworks
system, water rights, waters, lands, and rights and privileges and
to construct, complete, extend, add to, repair, maintain, improve,
and operate waterworks or a waterworks system, conduits, pipelines,
reservoirs, works, machinery, and other property or facilities useful
or necessary to import, store, treat, reclaim, conserve, convey, or
supply water for the benefit and use of residents and owners of
property within the agency, and otherwise for authorized agency
purposes.
   (f) To lease of and from any person, firm, public or private
corporation, or public agency, with the privilege of purchasing or
otherwise, all or any part of water storage, transportation or
distribution facilities, existing waterworks or a waterworks system,
and to carry on and conduct waterworks or a waterworks system; also
to sell for use within the area of the agency at wholesale only water
of the agency to cities, to other public corporations and public
agencies, and to water corporations as defined in the Public
Utilities Code, and to any mutual water companies engaged in
distributing water to its members for use, without any preference,
and the agency may, whenever the board finds that there is a surplus
of water above that which may be required by those consumers within
the agency, sell or otherwise dispose of that surplus water to any
persons, firms, public or private corporations, public agencies, or
other consumers.
   (g) To exercise the right of eminent domain to take any property
necessary or desirable for any facility reasonably required for the
importation and transmission of water in the area of the agency. The
agency in exercising that power, shall in addition to the damage for
the taking, injury, or destruction of property, also pay the cost of
removal, reconstruction, or relocation of any structure, railways,
mains, pipes, conduits, wires,  cables   cables,
 or poles of any public utility which is required to be removed
to a new location. No action in eminent domain to acquire property
outside the boundaries of the agency shall be commenced unless the
board of supervisors of each affected county has consented to the
acquisition by resolution.
   (h) To issue bonds, borrow money, and incur indebtedness as
authorized by law or in this act provided; also to refund (by the
issuance of the same obligations following the same procedure) or
retire any indebtedness or lien that may exist against the agency or
property thereof.
   (i) To issue negotiable promissory notes bearing interest at a
rate not exceeding the maximum rate per annum authorized by Section
27; provided, however, that the notes shall be general obligations of
the agency payable from revenues and taxes in the same manner as
bonds of the agency; and provided further that the maturity shall not
be later than five years from the date thereof and that the total
aggregate amount of the notes outstanding at any one time may be at
least equal to seventy-five thousand dollars ($75,000) but shall not
otherwise exceed the lesser of either one million dollars
($1,000,000) or 2 percent of the assessed valuation of the taxable
property in the agency, or, if that assessed valuation is not
obtainable, 2 percent of the county auditor's estimate of the
assessed valuation of the taxable property in the agency evidenced by
his or her certificate.
   (j) To cause taxes to be levied, in the manner hereinafter
provided, for the purpose of paying any obligation of the agency,
including its formation expenses and any warrants issued therefor.
   (k) To restrict the use of agency water during any emergency
caused by drought, or other threatened or existing water shortage,
and to prohibit the wastage of agency water or the use of agency
water during those periods, for any purpose other than household uses
or such other restricted uses as may be determined to be necessary
by the agency; to prohibit the use of agency water during those
periods for specified uses which the agency may from time to time
find to be nonessential.
   (l) To prescribe and define by ordinance, the restrictions,
prohibitions, and exclusions referred to in subdivision (k). Every
ordinance relating to the matters referred to in this subdivision
shall be in full force and effect forthwith upon adoption, but shall
be published once in full within 10 days after adoption in a
newspaper of general circulation published in the agency or, if no
such newspaper is published in the agency, in a newspaper of general
circulation distributed in the agency.
   (m) To make contracts, to employ labor, and do all acts necessary
for the full exercise of the foregoing powers.
   (n) To provide by ordinance of its board of directors for the
pensioning of employees and the creation of a special fund for the
purpose of paying those pensions, and the accumulation of
contributions to the fund from the revenues of the agency, the wages
of employees, voluntary contributions, gifts, donations, or any
source of revenue not inconsistent with the general powers of the
board, and to contract with any insurance corporation or any other
insurance carrier for the maintenance of a service covering the
pension of the employees, and to provide in the ordinance for the
terms and conditions under which the pensions shall be awarded, and
for the time and extent of service of employees before the pensions
shall be available to them.
   (o) To join with one or more public agencies, private
corporations, or other persons for the purpose of carrying out any of
the powers of the agency, and for that purpose to contract with such
other public agencies or private corporations or persons for the
purpose of financing those acquisitions, constructions, and
operations. The contracts may provide for contributions to be made by
each party thereto and for the division and apportionment of the
expenses of the acquisitions and operations, and the division and
apportionment of the benefits, the services and products therefrom,
and may provide for any agency to effect the acquisitions and to
carry on the operations, and shall provide in the powers and methods
of procedure for the agency the method by which the agency may
contract. The contracts with other public agencies or private
corporations or persons may contain such other and further covenants
and agreements as may be necessary or convenient to accomplish the
purposes thereof. Particularly, but not exclusively, the agency may
contract with the State of California for delivery of water under the
State Water Resources Development System. The term "public agency,"
as used in this subdivision, shall be deemed to mean and include the
United States of America or any department or agency thereof, the
State of California or any department or agency thereof, a county,
city, public corporation, the Metropolitan Water District of Southern
California, or other public district of this state. The term
"private corporation," as used in this subdivision, shall be deemed
to mean and include any private corporation organized under the laws
of the United States of America or of this or any other state
thereof. Contracts mentioned herein include those made with the
United States, under the Federal Reclamation Act of June 17, 1902,
(43 U.S.C. Sec.  372   371  et seq.) and
all acts amendatory thereof or supplementary thereto or any other act
of Congress heretofore or hereafter enacted permitting cooperation.
Any such contract with the United States of America or any department
or agency thereof, or with any private corporation organized under
the laws of the United States of America, by which the agency, or an
improvement district thereof, incurs an indebtedness or liability
exceeding in any year the income and revenue for that year, shall not
be executed without the assent of two-thirds of the qualified
electors of the agency, or an improvement district thereof, voting at
a special election to be held for that purpose, the election to be
called and held, so far as practicable, in the same manner as bond
elections for the agency. The exact form of the contract need not be
available at the time of the special election, but the (1) purpose of
the contract; (2) maximum amount of the indebtedness created
thereby; (3) maximum term of  repayment,  
repayment;  and (4) maximum interest rate on the indebtedness
shall be known and included in the proposition or measure submitted
to the qualified electors of the agency, or an improvement district
thereof, at the special election.
   (p) To issue bonds under Section 28 for the purpose of providing
money required to be paid by this agency to the State of California
or any agency thereof under any contract which shall be made with it,
or as all or part of the terms and conditions under which the
corporate area of the agency may be annexed to and become a part of
any metropolitan water district organized under the Metropolitan
Water District Act. The amount of the bonds may include expenses of
all proceedings for the authorization, issuance, and sale of the
bonds.
   (q) To disseminate information concerning the rights, properties,
and activities of the agency.
   (r) To construct, operate, and maintain works to develop energy
projects, for use by the agency in the operation of its works or as a
means of assisting in financing the construction, operation, and
maintenance of its projects for the control, conservation, diversion,
and transmission of water and to enter into contracts for the sale
of the energy for a term not to exceed 100 years. The energy may be
marketed only at wholesale to any public agency or private entity, or
both, or the federal or state government.
   (s) To contract, in connection with the construction and operation
of the works of the agency, for the sale of the right to use
facilities or real property for electric energy purposes with any
public agency or private entity engaged in the retail distribution of
electric energy, for a term not to exceed 100 years.
   (t) To develop, treat, distribute, and reclaim water, and to store
and recover water from groundwater basins located  both
within and  outside the boundaries of the agency and, in
exercising that power, to make and enter into contracts allowing that
storage and recovery.
  SEC. 4.  Section 26.1 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 1 of Chapter 562 of the Statutes of 1991, is
amended to read:
  Sec. 26.1.  (a) (1) In addition to the other powers provided in
this act, the agency may establish and impose a facility capacity fee
on any person who makes a new retail connection or has an existing
retail connection to the water distribution system of any retail
water distributor within the agency that obtains all, or any portion,
of its water supplies from the agency. The necessity for the fee,
and the amounts thereof, shall be determined, established, imposed,
collected, and used in the manner provided in this section.
   (2) As used in this act, a "facility capacity fee" means a fee for
public facilities in existence at the time a fee is imposed and for
new public facilities to be acquired or constructed in the future
that are of proportional benefit to the person or property being
charged, including supply or capacity contracts for rights or
entitlements, real property interests, and entitlements and other
rights of the agency involving capital expense relating to its use of
existing or new public facilities. A "facility capacity fee" does
not include a commodity charge.
   (b) If the board of directors determines that its existing water
importation, transportation, and delivery facilities and other
related works, property, and improvements are not adequate for the
purpose of receiving, importing, transporting, and delivering
additional needed quantities of water available from the State Water
Resources Development System or from other sources, the board of
directors may adopt and carry out a plan for any of the following
purposes:
   (1) To obtain additional facilities, works, property,
improvements, and supplies of water.
   (2) To increase or enlarge, as may be appropriate, its existing
capacity and facilities for obtaining, importing, transporting, and
delivering additional quantities of water to retail water
distributors within the agency which are in need of additional water
supplies.
   (3) To finance or reimburse the agency for advancing the cost of
acquiring facilities, works, property, improvements, and supplies of
water and to allocate that cost among lands within water service
areas of the agency which, by reason of new development or new
construction thereon, will need a new or expanded retail connection,
or will result in expanded use of water at the retail connection, and
will be benefited by making the additional supplies of agency water
available for purchase by the retail water distributors that will
supply those lands with water.
   (4) To finance or reimburse the agency for advancing net costs for
capital facilities for remediating groundwater contamination, which
originated solely from the land within a given water service area.
   (c) (1) Prior to adopting any plans pursuant to subdivision (b),
the board of directors shall hold at least one public hearing, at
which oral or written presentations may be made, as part of a
regularly scheduled meeting to establish water service areas within
the agency.
   (2) Notwithstanding any other notice requirements of this act,
notice of the time and place of the hearing and meeting, including a
general explanation of the matters to be considered, and a statement
that the data required by this subdivision is available, shall be
mailed at least 14 days prior to the hearing to any interested party
who files a written request with the agency for mailed notice of the
hearing on those plans and on allocation of the costs thereof. Any
written request for that mailed notice shall be valid only for one
year from the date on which it is filed with the agency unless a
renewal request is filed. Renewal requests for the mailed notices
shall be filed on or before April 1 of each year. The board of
directors may establish a reasonable annual charge for sending the
notices based on the agency's estimated cost of providing the
service.
   (3) At least 10 days prior to the hearing, the agency shall make
available to the public data indicating the cost, or estimated cost,
to acquire, construct, and provide the water importation,
transportation, and delivery facilities and other works, property,
and improvements necessary to obtain and provide the additional water
to those retail water distributors who will serve water to the lands
on which the new developments and new construction will be located,
and the proposed method and basis for allocating the costs as among
those lands. The agency may transmit this data electronically to
interested parties upon written request.
   (d) (1) Following the public hearing or hearings, the board of
directors shall make both of the following determinations:
   (A) The extent of the need for the additional property and
supplies of water to be supplied by the agency.
   (B) Whether existing facilities and other works and improvements
of the agency are adequate to import, receive, transport, and deliver
those additional quantities of water.
   (2) If the board of directors determines that there is a need or
that the agency's existing facilities, works, property, and
improvements are inadequate to serve that water, or both, the board
of directors shall adopt the plan or plans specified in subdivision
(b).
   (e) In making its determinations as to how to allocate the costs
of the plan or plans within water service areas of the agency, the
board of directors shall determine the amount of the facility
capacity fee to be imposed for the delivery facilities of the retail
water distributors that will supply those lands with imported or
local water. The facility capacity fee shall be fixed and determined
pursuant to a method and basis whereby the fee is as nearly as
reasonably practicable an amount proportionate to the benefit to the
land, including consideration of the volume of water to be delivered.

   (f) The board of directors may contract with the counties, or
cities on or after January 1, 1992, in which the agency is located
for the collection of the facility capacity fee along with building
permit fees or other fees related to the improvement of property, or
may contract for collection of the facility capacity fee by the
retail water distributor.
   (g) The proceeds of the facility capacity fee imposed and
collected pursuant to this section shall be used exclusively by the
board of directors for the annual facility capacity fee capital
budget of the agency, as described in Section 29.1, for purposes
authorized by this section as specified in the plans adopted pursuant
to subdivisions (b), (d), and (e).
   (h) Any action taken by the board of directors pursuant to this
section shall be taken only by resolution.
   (i) Any judicial action or proceeding to attack, review, set
aside, void, or annul any resolution imposing a facility capacity
charge of the agency, or a resolution modifying or amending an
existing charge imposed by the agency, shall be commenced within 120
days of the effective date of the resolution. Any action or
proceeding shall be brought pursuant to Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
  SEC. 5.  Section 29.1 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 3 of Chapter 1119 of the Statutes of 1987, is
amended to read:
  Sec. 29.1.  (a) For any agency fiscal year commencing on or after
July 1, 1987, the board of directors shall divide all lands within
the agency into separate, nonoverlapping water service areas. The
water service areas shall be fixed, formed, and established following
a public hearing and notice pursuant to Section 29.3. The purpose
for the formation of water service areas is to provide a source of
and to apportion moneys, not to exceed the amount permitted annually
by law, for, and only for, the annual facility capacity fee capital
budget of the agency. The funding and apportioning of the facility
capacity fee capital budget shall be on the principle of benefit
received by the lands and people within each water service area.
Projected use of water in any way to be made available by the agency
within a water service area during any agency fiscal year, as well as
the agency's existing property, plant, and distribution facilities,
shall be deemed by the board of directors to be the principal
benefits to be considered in determining the proportion of the annual
facility capacity fee capital budget of the agency to be collected
from sources within each water service area. Different schedules of
rates, charges, fees, assessments, and taxes to fund the facility
capacity fee capital budget of the agency, or a portion thereof, may
be fixed and established in each water service area, except that tax
rates within any individual water service area shall be uniform. The
lands within each water service area need not be contiguous.
    (b) Any ad valorem tax or tax rate set or determined by the board
of directors, though part of the benefit determination process
within water service areas, is valid so long as the tax proceeds are
applied in accordance with constitutional restrictions. Allocations
by the board of directors of the burden of ad valorem taxes between
or among water service areas may, at the option of the board of
directors, be conducted outside the hearing process set forth and
described in Sections 29.2 to 29.4, inclusive.
   (c) As used in this act, the "annual facility capacity fee capital
budget of the agency" means that sum annually projected by the board
of directors to be reasonably necessary (1) for payments for
acquisition of other water imported into the agency or for local
water for new and expanded uses, (2) for payments in any way
concerning agency bonded indebtedness or for lands and facilities,
within or outside the agency, useful or necessary to bank, store,
transport, treat, and distribute water currently or eventually to be
made available by the agency within water service areas thereof for
new and expanded uses, and (3) for payment to agency budget reserve
accounts for the above uses or purposes in future agency fiscal
years. Moneys collected by the agency for the "annual facility
capacity fee capital budget of the agency" shall only be utilized for
"capital," as that term is utilized under general accounting
principles. The board of directors in its budgetary processes during
any fiscal year may shift "capital" moneys between or among "capital"
accounts, including reserve accounts. Notwithstanding the foregoing,
the annual facility capacity fee capital budget of the agency as
derived from all water service areas of the agency shall be funded in
strict accordance with constitutional and statutory restrictions, as
existing from time to time, on legally permissible rates, charges,
fees, assessments, and taxes.
  SEC. 6.  Section 29.2 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 4 of Chapter 1119 of the Statutes of 1987, is
amended to read:
  Sec. 29.2.  (a) Except as provided in subdivision (b), the board of
directors shall annually adopt a resolution of intention to form new
water service areas, or to amend or modify water service areas
previously established. The resolution shall contain all of the
following:
            (1) The proposed boundary description of each proposed
water service area.
   (2) The additional capacity that will be provided to the lands and
people within each proposed water service area during a specific,
identified agency fiscal year.
   (3) The proposed annual facility capacity fee capital budget of
the agency for that fiscal year, and the portion thereof proposed to
be obtained from facility capacity fees within each proposed water
service area.
   (4) The proposed charges, fees, assessments, and tax rates
proposed to be fixed, levied, or collected within or from each
proposed water service area for the proposed annual facility capacity
fee capital budget of the agency.
   (5) The date, time, and location for a public hearing concerning
the formation, amendments, or modification of the water service
areas.
   (b) The board of directors shall not be required to adopt a
resolution pursuant to this section if there is not a change from the
previous year to the water service areas or the existing facility
capacity fees.
  SEC. 7.  Section 29.4 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
amended by Section 6 of Chapter 1119 of the Statutes of 1987, is
amended to read:
  Sec. 29.4.  (a) The board of directors shall at the public hearing
concerning water service areas, which hearing may be adjourned and
continued from time to time, hear and consider any objections or
comments concerning the proposed water service areas as described in
the agency's resolution of intention concerning the areas. At or
following the hearing, the board of directors may make any changes in
the proposals set forth in the resolution of intention that are
deemed by the board of directors to be proper; provided, except that
if additional land is to be included within or described land is to
be excluded from a proposed water service area, or if any proposed
described benefit within a proposed water service area is to be
materially changed, or if any proposed charge, fee, assessment, or
tax rate within a proposed water service area is to be increased by
15 percent or more, the hearing shall be continued for at least 30
days and mailed notice of that continuance shall be given to the
affected property owners not waiving that notice by mailing the
notice not less than 21 days in advance of the continued hearing.
   (b) Absent any need to continue the public hearing, the board of
directors shall thereafter find and determine whether it is in the
best interest of the agency and each proposed water service area that
the water service area be either fixed, formed, established,
modified, or amended. When all those findings and determinations are
made, the board of directors shall by resolution do the following:
   (1) Determine each water service area and describe the land in
that area.
   (2) Fix the annual facility capacity fee capital budget of the
agency.
   (3) Describe additional capacity that will be provided to the
lands and people within each water service area.
   (4) Fix, levy, and apportion within each water service area the
charges, fees, assessments, and tax rates to be collected therefrom
for the purpose of equitably matching those charges, fees,
assessments, and tax rates with projected benefits within each water
service area.
  SEC. 8.  Section 29.5 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
added by Section 12 of Chapter 832 of the Statutes of 1986, is
repealed.
  SEC. 9.  Section 29.6 of the Castaic Lake Water Agency Law (Chapter
28 of the First Extraordinary Session of the Statutes of 1962), as
added by Section 2 of Chapter 170 of the Statutes of 1998, is
repealed.
  SEC. 10.  Section 29.7 of the Castaic Lake Water Agency Law
(Chapter 28 of the First Extraordinary Session of the Statutes of
1962), as added by Section 3 of Chapter 170 of the Statutes of 1998,
is amended to read:
  Sec. 29.7.  Notwithstanding any other law, the board of directors
may adopt a facility capacity fee as part of its annual facility
capacity fee capital budget and may allow the facility capacity fee
for any water service area to remain in effect until the board,
subject to applicable notice and hearing requirements, changes or
repeals the fee by resolution.