(a) (1) To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A) (i) Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(ii) To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(iii) An administrator may provide administrative and managerial services to more than one designated public water system.
(B) Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2) In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b) Before the state board determines that a public water system is a designated public water system, the state board shall do both of the following:
(1) Provide the public water system with notice and an opportunity to show either of the following:
(A) That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(B) That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2) (A) Conduct a public meeting in a location as close as feasible to the affected community.
(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C) Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D) The meeting shall provide an opportunity for public comment.
(c) The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d) An administrator may do any of the following:
(1) Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2) Set and collect user water rates and fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIII D of the California Constitution.
(3) Expend available moneys for operation and maintenance costs of the designated public water system.
(e) The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(f) A designated public water system shall not be responsible for any costs associated with an administrator.
(g) Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(h) For purposes of this section, a local government, as defined in Article XIII C of the California Constitution, that sets water rates in accordance with Article XIII D of the California Constitution shall be deemed to be providing affordable water.
(i) This section does not apply to a charter city, charter county, or charter city and county.
(j) For purposes of this section, the following terms have the following meanings:
(1) “Administrator” means a person whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2) “Designated public water system” means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
(Added by Stats. 2016, Ch. 773, Sec. 3. (SB 552) Effective January 1, 2017.)
Last modified: October 25, 2018