Bill Text: CA AB2167 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Bay Area Water Supply and Conservation Agency: financial

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-07 - Chaptered by Secretary of State - Chapter 251, Statutes of 2012. [AB2167 Detail]

Download: California-2011-AB2167-Amended.html

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BILL NUMBER: AB 2167	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 6, 2012
	AMENDED IN SENATE  JUNE 18, 2012
	AMENDED IN SENATE  JUNE 6, 2012
	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 23, 2012

   An act to add Article 2.5 (commencing with Section 81436) to
Chapter 4 of Division 31 of the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2167, as amended, Hill. Bay Area Water Supply and Conservation
Agency: financial matters.
   Under existing law, the City and County of San Francisco operates
the Hetch Hetchy Project as a regional water delivery system,
supplying water to persons and entities in San Francisco and the
Counties of Alameda, San Mateo, and Santa Clara. Existing law, the
Bay Area Water Supply and Conservation Agency Act, governs the
formation and operation of the Bay Area Water Supply and Conservation
Agency (BAWSCA) by 24 public entities that purchase water from San
Francisco. The act authorizes the agency to borrow money, incur
indebtedness, and issue notes and bonds, including revenue bonds, as
specified. The act authorizes the agency to make proceeds of bonds
authorized by the act available to other local public agencies on
mutually satisfactory terms and conditions to assist in the
construction, reconstruction, or improvement of works designed and
intended in whole or in part to furnish water to the members of the
agency, whether those works are carried out jointly by the agency and
other local public agencies, or solely by those other public
agencies. The act further authorizes the agency to impose reasonable
rates, fees, and charges on specified entities that are sufficient to
generate revenue to pay the principal and interest on any bonds
issued by the agency.
   This bill would authorize the agency to prepay the unpaid
principal balance relating to existing capital assets as of June 30,
2009, on behalf of BAWSCA members, as defined, as provided in a
prescribed water supply agreement. This bill would authorize the
agency to acquire from the City and County of San Francisco the right
to receive all or a portion of the amounts payable by BAWSCA members
under that water supply agreement and authorize the City and County
of San Francisco to sell to the agency its right to receive these
amounts. This bill would authorize the agency to request that the
City and County of San Francisco continue to collect amounts in
accordance with the water supply agreement and to transfer these
amounts to the agency on a periodic basis. This bill would require
the agency to use these amounts to pay debt service on prescribed
bonds issued by the agency for specified uses authorized by this bill
and to satisfy all other obligations of the agency related to those
bonds.  This bill would also authorize the agency to impose
rates, fees, and charges as prescribed to pay debt service or bonds
issued for the specified uses authorized by this bill and to satisfy
all other obligations of the agency related to those bonds. 
This bill would also authorize the agency to impose rates, fees, and
charges as prescribed to pay debt service  or  
on  bonds issued for the specified uses authorized by this bill
and to satisfy all other obligations of the agency related to those
bonds and would require that the City and County of San Francisco
collect any of those rates, fees, and charges, as specified  , if
requested by the agency  . This bill would also permit the
agency to distribute any of these amounts not needed for the purposes
of those bonds to BAWSCA members, as prescribed.
   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.  Article 2.5 (commencing with Section 81436) is added to
Chapter 4 of Division 31 of the Water Code, to read:

      Article 2.5.  Additional Financing Authority


   81436.  For the purposes of this article, the following
definitions shall apply:
   (a) "BAWSCA members" means Stanford University, the California
Water Service Company, and eligible public entities as defined by
Section 81305.
   (b) "July 2009 Water Supply Agreement" means the water supply
agreement by and between the City and County of San Francisco and the
BAWSCA members, as amended or supplemented.
   81436.5.  The agency may prepay all or a portion of any unpaid
principal balance relating to the existing capital assets as of June
30, 2009, on behalf of BAWSCA members, as provided in the July 2009
Water Supply Agreement.
   81437.  (a) (1) The agency may acquire from the City and County of
San Francisco the right to receive all or a portion of the amounts
payable by BAWSCA members under the July 2009 Water Supply Agreement.

   (2) The City and County of San Francisco may sell to the agency
its right to receive amounts payable by BAWSCA members under the July
2009 Water Supply Agreement.
   (b) (1) If the agency acquires, and the City and County of San
Francisco sells, the right to receive amounts payable pursuant to
subdivision (a), if requested by the agency, the City and County of
San Francisco shall continue to collect amounts payable by BAWSCA
members under the July 2009 Water Supply Agreement in accordance with
the terms of that agreement and the City and County of San Francisco
shall transfer amounts so collected to the agency on a monthly basis
or on a periodic basis agreed to by the agency and the City and
County of San Francisco.
   (2) The agency shall apply amounts received pursuant to this
subdivision to pay debt service on any bonds issued by the agency for
a use authorized by Section 81437.5 and to satisfy all other
obligations of the agency related to these bonds.
   (3) The agency may distribute any amounts received pursuant to
this subdivision not needed for the purposes of this subdivision to
BAWSCA members. The agency may condition any distribution pursuant to
this paragraph upon BAWSCA members' agreement to waive any right of
prepayment respecting any amounts purchased that the member may have
under the July 2009 Water Supply Agreement.
   81437.5.  In addition to the uses authorized in Section 81434, the
agency may use proceeds of bonds issued pursuant to this division as
follows:
   (a) For the construction, reconstruction, or improvement of any
works carried out by the agency on behalf of a BAWSCA member.
   (b) For the purpose of assisting in the repayment of any existing
capital assets, if those assets were designed and intended in whole
or in part to furnish water to BAWSCA members, whether those assets
were carried out jointly by the agency and other local public
agencies, or solely by those other public agencies.
   (c) To make a prepayment, as described in Section 81436.5, or an
acquisition, as described in Section 81437.
   (d) To pay the costs of issuance of the bonds and to fund reserve
funds securing the bonds.
   81438.  (a) In addition to the authority granted in Section 81435,
the agency may do all of the following:
   (1) Impose reasonable rates, fees, and charges on BAWSCA members
for any program or service provided or work performed by the agency.
   (2) Impose rates, fees, and charges on BAWSCA members and any
entity that subsequently serves a BAWSCA member's service area in an
amount as shall be necessary, together with other available sources
of funds, to pay debt service on any bonds issued by the agency for a
use authorized by Section 81437.5 and to satisfy all other
obligations of the agency related to these bonds, including, but not
limited to, funding and maintaining reserve funds and complying with
financial covenants.
   (3) Distribute any amounts collected that are not needed for the
purposes of this article to BAWSCA members.
   (b)  The   If requested by the agency, the
 City and County of San Francisco shall collect any rates, fees,
and charges imposed by the agency pursuant to this section as a
surcharge under the July 2009 Water Supply Agreement.  These
amounts shall be collected in a manner, and with remedies for
nonpayment, specified in an agreement between the agency and the City
and   County of San Francisco.