Water/Wastewater MSR Public Hearing Powerpoint

Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review & Sphere of Influence Study (2nd Round) Contra Costa LAFCO April 9, 2014 What We’ll Cover:  Municipal Service Review (MSR) requirements  Agencies Reviewed  Opportunities for Public Comment  What We Found  Other Issues: DUC’s, Mutual Water Companies  Comments Received  Next Steps  Questions/Comments Municipal Service Reviews:  Required (Gov’t. Code §56430) for all cities and special districts  Purpose: evaluate current services and potential impacts on those services from projected future growth  Identify opportunities to improve services  Must be completed prior to, or concurrent with, Sphere of Influence updates Agencies Reviewed:  29 Water and Wastewater Agencies  8 Cities  20 Special Districts  1 Private Water Company Agencies Reviewed: SERVICES SERVICES WATER AND WASTEWATER AGENCIES WATER AND WASTEWATER AGENCIES PROVIDED PROVIDED Cities Special Districts City of Antioch Water/Wastewater Crockett Community Services District Wastewater City of Brentwood Water/Wastewater Delta Diablo Wastewater City of Concord Wastewater Diablo Water District Water City of Hercules Wastewater Dublin San Ramon Services District Water/Wastewater City of Martinez Water East Bay Municipal Utility District Water/Wastewater City of Pinole Wastewater East Contra Costa Irrigation District Water City of Pittsburg Water/Wastewater Ironhouse Sanitary District Wastewater City of Richmond Wastewater Knightsen Town Community Services District Water Special Districts Mt. View Sanitary District Wastewater Bryon Bethany Irrigation District Water Rodeo Sanitary District Wastewater Bryon Sanitary District Wastewater Stege Sanitary District Wastewater Castle Rock County Water District Water Town of Discovery Bay Community Services District Water/Wastewater Central Contra Costa Sanitary District Wastewater West County Wastewater District Wastewater Contra Costa Water District Water Private Water Company County Sanitation District No. 6 Wastewater Golden State Water Company Water County Service Area M-28 Water Multi-County Agencies Reviewed:  Byron Bethany Irrigation District  Serves Alameda, Contra Costa and San Joaquin Counties  “Principal LAFCO: San Joaquin  Dublin San Ramon Sanitary District  Serves Contra Costa and Alameda Counties  “Principal” LAFCO: Alameda  East Bay Municipal Utilities District  Serves Contra Costa and Alameda Counties  “Principal” LAFCO: Alameda  Golden State Water Company  Private, investor-owned water company  Operates 38 systems throughout California  PUC regulated; not under the purview of LAFCO MSR Organization: One MSR with “stand alone” chapters for each agency, including:  Background/history  Statistical profile of agency services, infrastructure and budget  Boundary map with SOI overlay  Detailed discussion of agency operations/finances  Recommended MSR determinations  Recommended SOI determinations (special districts) Opportunities for Agency Comment:  Nov/Dec 2013 – Draft agency profiles released  February 2014 – Draft agency MSR chapters released  March 2014 – Public Review Draft of MSR released  April 2014 – LAFCO public hearing What We Found: Cities Adequate Alternative Agency Adequate Plans for Stable Structure Comments Infrastructure Future Budget Options Needs Identified City of Antioch     Prioritize annexation of small islands; City should undertake a study evaluating potential consolidation with DD. City of Brentwood     City has an aggressive CIP program for water and wastewater system upgrades; annexation of two parcels served extraterritorially should be a priority. City of Concord    $10.1 million in CIP upgrades budgeted through 2023 for system upgrades; annexation of properties served extraterritorially (e.g., Ayers Ranch).should be high priority. City of Hercules     Hercules is projected to be one of the fastest growing cities within Contra Costa County over the next 20 years; plans are in place for WWTP upgrades between 2015-2017 to meet State Resources Water Quality Control Board requirements to meet expected growth. City of Martinez    Annexation of parcels served outside the City should be high priority; City has developed a long-term strategy to address outside properties; consolidation with CCWD should be evaluated. Recommend annual progress reports. City of Pinole     City has implemented a phased increase in wastewater user fees to finance capital improvements; replacement of problem sewer mains and laterals to reduce infiltration is a major priority of the City’s CIP. City of Pittsburg     City’s 5-year CIP reflects $46 million in water/wastewater improvements; evaluation of consolidation with DD should be pursued. City of Richmond    City has aging sewer collection system; 2 studies have identified system replacements which City is pursuing. What We Found: Special Districts with Minor Issues Adequate Alternative Agency Adequate Plans for Stable Structure Recommended Comments Infrastructure Future Budget Options SOI Change Needs Identified Byron Sanitary      SOI should be expanded to include Orrin District Allen Youth Detention Facility; agency lacks website. Central Contra Costa     District has aging sewer collection system; Sanitary District $15 million per year allocated to sewer main replacement program; CCCSD has established successful program to clean up boundary issues and expedite annexation backlog. Contra Costa Water      District has 10-year $300.1 million CIP; $370 District million in infrastructure projects completed in last 5 years; removal of the Veale Tract from the District’s SOI should be pursued. Crockett Community      CCSD serves two distinct communities: Services District Crockett and Port Costa; expansion of the District’s SOI to include property served through out-of-agency agreement should be pursued. Delta Diablo     DD is a dependent special district; agency has implemented an aggressive hazardous materials collection program; consolidation of operations with Cities of Antioch and Pittsburg should be studied. What We Found: Special Districts with Minor Issues Agency Adequate Adequate Stable Alternative Recommended Comments Infrastructure Plans for Budget Structure SOI Change Future Options Needs Identified Dublin San Ramon     DSRSD is a multi-county district serving Services District both Contra Costa and Alameda counties; Alameda LAFCO is the “principal” county; agency’s boundary overlaps with EBMUD & CCCSD; further study by DSRSD, EBMUD and CCCSD to simplify water and wastewater delivery in overlap area is warranted. East Bay Municipal     EBMUD is a multi-county district serving Utility District both Contra Costa and Alameda counties; Alameda LAFCO is the “principal” county; overlap with DSRSD and CCCSD should be resolved. East Contra Costa     District primarily provides irrigation water Irrigation District for agricultural and landscaping uses; consolidation with BBID should be studied; agency has no website. Golden State Water     Private water company; serves the Company unincorporated Bay Point community within Contra Costa County; not under LAFCO’s purview. Ironhouse Sanitary      District recently completed construction of District Phase I of a $55 million WRF; expansion of agency’s SOI to include Liberty Union High School site should be pursued. What We Found: Special Districts with Minor Issues Agency Adequate Adequate Stable Alternative Recommended Comments Infrastructure Plans for Budget Structure SOI Change Future Options Needs Identified Mt. View Sanitary     The five-year CIP was revised in 2011 to reflect District lower flows and improved preventive maintenance following an update of the MVSD’s SSMP. In May 2013, MVSD entered into a contract with a media and website consultant to update its website. Rodeo Sanitary     RSD is a small operating agency with 7 District employees; recent SOI amendments and annexations will resolve outstanding district boundary issues. Stege Sanitary     SSD has an aged sewer collection system; an District aggressive sewer main replacement program has been implemented. West County    WCWD is planning a major upgrade of its Wastewater District WWTP ($18.6 million) in 2014; district is encouraged to annex properties served extraterritorially. What We Found: Special Districts with Significant Issues Agency Adequate Adequate Stable Alternative Recommended Comments Infrastructure Plans for Budget Structure SOI Change Future Options Needs Identified Byron Bethany     Multi-county district serving Alameda, Contra Irrigation District Costa, and San Joaquin counties; San Joaquin LAFCO is the “principal”; District shares administrative operations with BSD; District boundary overlaps with TODBCSD; potential consolidation with BSD should be explored. Castle Rock County    LAFCO recently learned District is under Water District LAFCO’s purview; District purchases untreated water from CCWD for landscaping, agricultural and residential use; 55 connections; approximately 20% of District’s customers use water in homes and are responsible for self treatment; District has no water testing program; CCWD provides treated, potable water service to some residents of Castle Rock; consolidation with CCWD should be explored; recommend establishment of a coterminous SOI. County Sanitation  SD No. 6 is a dependent district governed by District No. 6 the Contra Costa Board of Supervisors; the District serves 47 parcels in the Stonehurst subdivision through a septic tank/community disposal system; SD No. 6 is under order from the RWQCB to connect to an adjacent agency for sanitary sewer service when available; recommend reaffirming zero SOI; annual progress reports recommended. What We Found: Special Districts with Significant Issues Agency Adequate Adequate Stable Alternative Recommended Comments Infrastructure Plans for Budget Structure SOI Change Future Options Needs Identified County Service  Dependent special district providing water Area M-28 service to a 172-unit mobile home park; infrastructure requires significant upgrades; funding problematic; County in process of transferring responsibility to mobile home park owner; recommend reaffirming zero SOI; annual progress reports recommended. Diablo Water      Recommend SOI expansion to include the District Liberty Union High School site; for long-term planning purposes, consideration should be given to expanding DWD’s SOI to include all of Bethel Island. Knightsen Town   Lack of funding impedes District from moving Community forward with any notable accomplishments; no progress has been made toward District’s Services District original purpose; recommend adopting zero SOI and requiring 6-month updates to the Commission on District progress. Town of Discovery     Significant progress achieved in addressing Bay Community major sewer issues since 2006 MSR; TODBCSD boundary overlaps with BBID; recommend Services District further review of overlap and potential boundary adjustment. What We Found: Agency Finances  Review Criteria  Three Year Revenue/Expenditure Budget Trend  Ratios of Revenue Sources  Ratio of Reserve/Fund Balance to Annual Expenditures  Ratio of Annual Debt Service Expenditure to Total Expenditures  Capital Improvement Program Budget  Rate Structure  Redevelopment Agency Dissolution Impact (Cities Only) What We Found: Agency Finances  Generally Stable Position  Enterprise activities less susceptible to economic downturn.  Service Fee revenues versus Tax revenues.  Some planned deficit spending for some agencies- generally to support capital improvement projects.  Reserve/Fund Balances are Adequate  10-20% of annual expenditures considered minimal.  Most agencies exceed these levels, some considerably.  Capital Improvement Programs  Most agencies have strong programs, some are pay as you go based on annual revenue.  Significant infrastructure upgrade expenditures completed, in progress and planned. What We Found: Agency Finances  Debt/Debt Service  Total debt and debt service requirements generally reasonable and supported.  Several agencies have no debt.  Rate Structures  Rates reflect cost recovery; 10-20% of annual expenditures considered minimal.  Most agencies exceed these levels, some considerably.  Annual rate reviews and planned future rate increases.  Minimal use of tiered rates- should be a consideration for future rate restructuring.  Sustainability of annual rate increases- agencies should monitor closely.  Redevelopment Dissolution Impacts (Cities)  Minimal to no impact. Other Issues: Disadvantaged Unincorporated Communities  DUCs are inhabited (12 or more registered voters) unincorporated areas with an annual median household income (MHI) of less than 80 percent of the statewide MHI.  Gov’t Code Section 56375(a)(8)(A) prohibits LAFCOs from approving a city annexation of more than 10 acres if a DUC is contiguous to annexation territory unless an application to annex the DUC has been filed with LAFCO.  Legislative intent: avoid “cherry picking” of agencies’ tax generating land uses while leaving out under-served, inhabited areas with infrastructure deficiencies (e.g., water, sewer and fire protection).  Agencies impacted by DUCs: City of Concord, Contra Costa Water District, County Service Area M-28, Crockett Community Services District, Diablo Water District, Mt. View Sanitary District, Rodeo Sanitary District, and West County Wastewater District. Other Issues: Mutual Water Companies  Mutual Water Companies (MWCs) – privately owned (or shared) wells that provide water service in lieu of a public agency or PUC-regulated utility.  AB 54 imposes new reporting requirements for MWCs.  28 MWCs meet the AB 54 reporting threshold (Table V-1 in Report).  Not all MWCs are in compliance with reporting requirements. Comments Received: Agency Public Review Draft Comments City of Antioch Update boundary map to reflect recent annexations; remove recommendation to annex islands within City boundary; clarify that East Bay Regional Park District’s purchase of Roddy Ranch is incomplete. City of Concord Indicate in MSR that the City’s Sewer System Management Plan will be updated in April 2014. City of Martinez Correct phone number on Page 68. Contra Costa County Public Works Does not support option to transfer Knightsen CSD to County; supports status quo for Department Knightsen CSD. Contra Costa Resource Conservation Change references in MSR from “Contra Costa Conservation District” to “Contra Costa District Resource Conservation District;” District does not support dissolution of Knightsen CSD. Delta Diablo Change name references in MSR to “Delta Diablo;” update boundary and SOI maps to reflect Northeast Antioch annexations; areas designated as permanent open space and outside the ULL should be removed from the District’s SOI; clarify DUC discussion and DUC map. Make other minor corrections. Comments Received: Agency Public Review Draft Comments Diablo Water District Include Liberty Union High School site within District’s SOI; various technical corrections/clarifications throughout chapter. Ironhouse Sanitary District Minor corrections identified and District notes that there are 3 DUCs within the service area that should be included in the MSR. Knightsen Community Services Updates actions taken as an agency including coordination and collaboration with other District agencies/organizations. Mt. View Sanitary District Technical corrections to agency profile and infrastructure description. Town of Discovery Bay Community Use the acronym "TODBCSD" instead of "DSCSD"; Discovery Bay CSD was legally changed in Services District 1999 to Town of Discovery Bay (TODB); TODBCSD and TODB can be used interchangeably. Change flow from 2.1 to 2.35 MGD. Clarifications to NPDES Permit renewal and RWQCB fines/orders Contra Costa LAFCO (Staff) Diablo Water District - SOI needs to be expanded for the Liberty Union High School site; reference Tri-Valley Utilities Coordination and Integration Study (six agencies including DSRSD) in the MSR. BBID/TODBCSD overlap needs to be added for brief discussion with maps. Next Steps:  Incorporate Commission/public/agency comments into Draft MSR document  Schedule Final MSR for LAFCO public hearing on May 14, 2014  Consider MSR and SOI adoptions on May 14, 2014