BILL NUMBER: AB 727	INTRODUCED
	BILL TEXT


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 introduced, 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 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  five   seventy-five  thousand
dollars  ($5,000),   ($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 
five   seventy-five  thousand dollars 
($5,000),   ($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),  may  
shall  not be purchased if the cost exceeds  five
  seventy-five  thousand dollars  ($5,000),
  ($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 
president   presidents  and may define the duties
of  the   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 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 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, 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 
hydroelectric  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
 falling water   facilities or rea   l
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 charge referred to as  a facility capacity
 fee, and which is in the nature of a connection fee, for the
right to make   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  quantity   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  new water service 
 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 1st 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  and upon each new connection
to  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 to the new retail connection   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
contract interests pursuant to the State Water Resources Development
System and  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. 
   Any 
    (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. 
   As 
    (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 of capital costs to
the State of California, including its agencies or departments, in
any way for purposes of the State Water Resources Development System
as from time to time amended, (2)  for payments for
acquisition of other water imported into the agency or for local
 water, (3)   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,  
thereof for new and expanded uses,  and  (4) 
 (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.   The   (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  continue, amend,   amend
 or modify water service areas previously established. The
resolution shall contain all of the following: 
   (a) 
    (1)  The proposed boundary description of each proposed
water service area. 
   (b) 
    (2)  The  projected benefits to be received by
  additional capacity that will be provided to  the
lands and people within each proposed water service area during a
specific, identified agency fiscal year. 
   (c) 
    (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  sources
  facility capacity fees  within each proposed
water service area. 
   (d) 
    (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. 
   (e) 
    (5)  The date, time, and location for a public hearing
concerning the formation,  continuation, 
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.

   Absent 
    (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,  and established or continued,  
established,  modified, or amended. When all those findings and
determinations are made, the board of directors shall by resolution
do the following: 
   (a) 
    (   1)  Determine each water service area and
describe the land in that area. 
   (b) 
    (2)  Fix the annual  facility capacity fee 
capital budget of the agency. 
   (c) 
    (   3)  Describe  generally the
benefits proposed to be received by   additional
capacity that will be provided to  the lands and people within
each water service area. 
   (d) 
    (   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. 29.5.    Until the later of (1) the date the
board of directors finds and declares by resolution based on
substantial evidence that there is on a reliable basis more than
25,000 acre-feet of potable water available each year from the
agency, or (2) July 1, 1991, the agency shall allocate water of the
agency to each purveyor on a percentage basis as follows:
   (a) Los Angeles County Waterworks District No. 36 2.5%
   (b) Newhall County Water District 1.8%
   (c) Santa Clarita Water Company 59.8%
   (d) Valencia Water Company 35.9%
   The allocation of agency water thereafter shall be with respect to
agency water service areas. Retail water distributors operating
within each water service area shall have a preferential right to
purchase for beneficial use within a water service area a portion of
the water available for sale by the agency which shall, from year to
year, thereafter bear the same ratio to all agency water available as
the total of amounts received by the agency since January 1, 1987,
from the water service area from taxes and from the nontax portion of
the annual capital budget of the agency, as described in Section
29.1, bears to the total of amounts received by the agency since
January 1, 1987, from taxes and from the nontax portion of that
annual capital budget of the agency. The board of directors may adopt
reasonable rules and regulations in furtherance of the allocation
provided for in this section. 
  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. 29.6.    (a) Notwithstanding any other
provision of law, the board of directors may adopt a multiyear
capital budget for the agency. The multiyear capital budget may not
encompass more than three agency fiscal years. Except for the length
of time, the multiyear capital budget shall meet the requirements
pertaining to an annual capital budget.
   (b)(1) Prior to the adoption of a multiyear capital budget, the
board shall hold a public hearing noticed using the means set forth
in Section 29.3.
   (2) The board of directors may adopt, by resolution, reasonable
procedures to facilitate the adoption and funding of a multiyear
capital budget. Any procedures adopted by the board shall facilitate
the making of findings and determinations otherwise required or
authorized for the adoption and funding of an annual capital budget
pursuant to Sections 29.1 to 29.4, inclusive.
   (3) Subject to the notice and public hearing requirements imposed
by paragraph (1), any multiyear capital budget may be amended by the
board of directors during the term of the budget. Schedules of rates,
charges, fees, and assessments may not be increased without a prior
public hearing noticed as required by any applicable statute or
provision of the California Constitution. 
  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  provision of
 law, the board of directors may adopt a facility capacity
fee as part of its annual  facility capacity fee  capital
budget  or multiyear 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.