CSA No. 32

FRESNO LOCAL AGENCY FORMATION COMMISSION (LAFCO) EXECUTIVE OFFICER’S REPORT AGENDA ITEM NO. 17 DATE: September 28, 2011 TO: Fresno Local Agency Formation Commission FROM: Jeff Witte, Executive Officer SUBJECT: Consider Adoption – Municipal Service Review and Sphere of Influence Update Prepared for County Service Area No.’s 1, 7, 10, 14, 30, 31, 32, 33, 34, 43, 44, 47, 49, and 51. Recommendations: A. Acting as Lead Agency pursuant to California Environmental Quality Act (CEQA) Guidelines, find that prior to adopting the written determinations, the Municipal Service Reviews and Sphere of Influence determinations under consideration are Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15306, “Information Collection” and Section 15320, “Changes in Organization of Local Agencies”. B. Find that the Municipal Service Review and Sphere of Influence Update prepared for each of the Districts are complete and satisfactory. C. Find that the written determinations within the Municipal Service Reviews and Sphere of Influence Updates satisfy State Law. D. Pursuant to Government Code Sections 56425 and 56430 make the required determinations for the Municipal Service Reviews and District Spheres of Influence, adopt the Municipal Service Reviews prepared for each District, and update the Sphere of Influence for said Districts by reaffirming their current boundaries or approving the recommended changes. Summary / Background The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires LAFCo to review and update, as necessary, special district Spheres of Influence (SOIs) every five years. Prior to, or in conjunction with an agency’s SOI update, LAFCo is required to conduct a Municipal Service Review (MSR) for each agency. Municipal Service Reviews provide a comprehensive review of the services provided by a city or district and present recommendations with regard to the condition and adequacy of these services and whether or not modifications to a city or district’s SOI are necessary. MSRs can be used as informational tools by LAFCo and local agencies in evaluating the efficiencies of current district operations and may suggest changes in order to better serve the public. 1 Sphere of Influence updates may involve an affirmation of the existing SOI boundaries or recommend modifications to the SOI boundaries. LAFCo is not required to initiate changes to an SOI based on findings and recommendations of the service review, although it does have the power to do so. State law requires that the Commission adopt written MSR determinations for each of the following six criteria: 1. Growth and population projections for the affected area. 2. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies. 3. Financial ability of agencies to provide services. 4. Status of, and opportunities for, shared facilities. 5. Accountability for community service needs, including governmental structure and operational efficiencies. 6. Any other matter related to effective or efficient service delivery, as required by commission policy. As part of the SOI update, the Commission is required to consider the following four criteria and make appropriate determinations in relationship to each: 1. The present and planned land uses in the area, including agricultural and open-space lands. 2. The present and probable need for public facilities and services in the area. 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. 4. The existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency. Environmental Determination The California Environmental Quality Act ("CEQA") requires that the Commission undertake and review an environmental analysis before granting approval of a project, as defined by CEQA. The MSRs are categorically exempt from the preparation of environmental documentation under a classification related to information gathering (Class 6 - Regulation section 15306), which states: "Class 6 consists of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded." Indeed, these MSRs collect data for the purpose of evaluating municipal services provided by the agencies. There are no land use changes or environmental impacts created by such studies. Furthermore, the MSRs qualify for a general exemption from environmental review based upon CEQA Regulation section 15061(b)(3), which states: "The activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." Additionally, the SOI updates qualify for the same general exemption from environmental review based upon CEQA Regulation section 15061(b)(3). 2 There is no possibility that these MSRs or SOI updates may have a significant effect on the environment because there is no land use changes associated with the documents. If the Commission approves and adopts the MSRs and SOI updates and determines that the projects are exempt from CEQA, staff will prepare and file a notice of exemption with the County of Fresno, as required by CEQA Regulation section 15062. Discussion / Summary of Determinations County Service Area No. 1 encompasses approximately 24 acres generally located east of Tollhouse Road (SR 168) at Flintridge Drive, approximately nine miles south of Huntington Lake. The District boundaries and its sphere of influence are not coterminous. The District provides water, sewer, and snow removal services for the Tamarack Heights tract. County Service Area No. 7 provides storm drainage and street lighting to approximately 75 acres in three non-contiguous areas. One area contains approximately 56 acres including portions of Alluvial, Buena Vista, Charles and Laguna Vista Avenues in northwest Fresno. Another is approximately 13 acres east of and adjacent to Palm Avenue, south of Magill Avenue in north central Fresno. The final area is known as Zone “D” and encompasses approximately 6.5 acres located south of and adjacent to Clinton Avenue at Marty and Selland Avenues. County Service Area No. 10 encompasses approximately 211 acres in two non-contiguous portions. The Cumorah Knolls portion is about 134 acres and located north of and adjacent to Shaw Avenue, just west of Academy Avenue. The Mansionette Estates No. 3 was annexed to the district in 2001 and is about 77 acres and is located south of and adjacent to Herndon Avenue at Leonard Avenue. The District is just to the east of the City of Clovis and provides water, street lighting, landscape and road maintenance, and wetlands monitoring services. County Service Area No. 14 encompasses approximately 19 acres and provides water, street lighting, and storm drainage services in the Belmont Manor subdivision (Tract 2031). The District is located at Belmont and Leonard Avenues. County Service Area No. 30 encompasses approximately 29 acres and provides water, sewer, street lighting, and garbage removal services in the El Porvenier subdivision. The District is located west of Derrick Avenue near Clarkson Avenue. County Service Area No. 31 provides fire protection and recreation to approximately 8,518 acres. Zone “B” provides sewer service to approximately 600 acres which include the Shaver Lake Village area and Camp Edison. Zone “C” provides open space maintenance to 1,160 acres off Highway 168 in South Shaver Lake. Zone “D” provides open space maintenance to the 348 acres of the Bretz Mountain Village subdivision. Zone “E” provides open space and out lot maintenance to the 40 acres of the Timber Ridge subdivision. Zone “F” provides open space and out lot maintenance to 99 acres generally located near Bretz Road and Blue Canyon Road. Zone “G” provides open space and out lot maintenance to the 72 acres known as the Shaver Lake Bretz Mountain Village area. County Service Area No. 32 encompasses approximately 21 acres and provides water, sewer, street lighting, and garbage removal services to the Cantua Creek farm labor housing development. The District is located on the north side of Clarkson Avenue west of San Mateo Avenue. 3 County Service Area No. 33 encompasses approximately 170 acres and provides street lighting to the Malaga area. The District is located north of Central Avenue and both east and west of Willow Avenue. County Service Area No. 34 provides a full range of extended governmental services for the Millerton New Town community. The District is located north of the City of Clovis’ wastewater treatment plant near the intersection of Auberry and Millerton Roads. County Service Area No. 43 provides water, street lighting, and park maintenance services to approximately 214 acres in the unincorporated community of Raisin City. The District is located north and south of Manning Avenue at Henderson Road. County Service Area No. 44 encompasses approximately 381 acres in the Friant area. The original area provides street lighting to 228 acres, Zone “A” provides sewer to 24 acres, Zone “C” provides retail water to 30 acres, and Zone “D” provides both water and sewer service to 24 acres. County Service Area No. 47 provides community water and sewer services to the Quail Lake Estates subdivision. The District consists of 375 acres generally located between Ashlan and Shaw Avenues, east of McCall Avenue. County Service Area No. 49 provides water for the farming community of O’Neill. It includes about 81 acres in five non-contiguous areas adjacent to the Fresno-Coalinga Road (SR 145), approximately three miles southwest of the community of Five Points. County Service Area No. 51 was formed in 2007 to provide water service for the Dry Creek Rural Community. It is north of the City of Clovis and outside of the City’s sphere of influence. The District contains 1,782 acres. The District has completed the design of the water system infrastructure and is in the process of completing the Assessment Engineer’s Report. Once completed, a Proposition 218 hearing will be scheduled. Provided an assessment is approved by the property owners, construction of the necessary water infrastructure would be expected to begin in the 2012-13 fiscal year. G:\LAFCO WORKING FILES\MSR 2nd Round\Sept 2011 CSAs\CSA MSR Staff Report.doc 4 C S A N . 32 OUNTY ERVICE REA O M S R UNICIPAL ERVICE EVIEW AND S I U PHERE OF NFLUENCE PDATE Report to the Fresno Local Agency Formation Commission Jeff Witte Candie Fleming Samantha Hendricks 2115 Kern Street, Suite 310 Fresno, CA 93721 September 2011 COUNTY SERVICE AREA NO. 32 Water, sewer, street lighting, and garbage collection services Contact Information Manager: Joe Prado Address: 2220 Tulare Street 6th Floor Fresno, CA 93721 Phone: (559) 600 4259 ‐ Management Information Governing Body: Board of Directors Board Members: Susan Anderson Elected 2009 Expires 2013 Phil Larson Elected 2011 Expires 2015 ‐ Henry Perea Elected 2009 Expires 2013 ‐ Judy Case Elected 2011 Expires 2015 ‐ Debbie Poochigian Elected 2009 Expires 2013 ‐ Board Meetings: On scheduled Tuesdays, the dates which have been approved at a regularly ‐ scheduled board meeting in the Board of Supervisors Chambers Staffing: Special District Administrator, four Staff Analysts, one Office Assistant, one Supervising Water/Wastewater Specialist, seven Water/Wastewater Specialists, and four Craft Maintenance Trainees. Service Information Empowered Services: Water, sewer, street lighting, and garbage collection services Services Provided: Water, sewer, street lighting, and garbage collection services Area Served: Cantua Creek farm labor housing development Population Served: 72 residential parcels Acres Served: 21 Acres Infrastructure: Community water and sewer systems Fiscal Information Budget: $171,977 Sources of Funding: Service Charges and Tax Revenues. Rate Structure: $607.80 per year for residential water, $432.24 for residential sewer, $322.92 per year for garbage collection, and $7.44 per year for lighting Administrative Policies Master Plan: No Policies/Procedures: Yes By-laws: No Boundary Updated: 1981 SOI Updated: 2007 Other: No 1 . MUNI CI PAL SERVI CE REVI EW Description of District County Service Area No. 32 was formed in 1981 to provide water, sewer, street lighting, and garbage removal services to the Cantua Creek farm labor housing development. The District is located at Clarkson Avenue west of San Mateo Avenue. The District boundary contains 21 acres and the Sphere of Influence contains 61 acres as shown on the attached map. District Services and Background The District provides water, sewer, refuse collection, and street lighting services. There are 79 parcels within the District including 43 single-family residences and 30 mobile home sites. The District also provides “out of District” water service. The Fresno County Department of Public Works assumed operational responsibilities of the community water and sewer systems in April 2010. California Water Services out of Coalinga had previously been under contract with the County to operate and maintain the water and sewer systems. The District contracts with PG&E to provide street lighting services and with a private hauler to provide garbage removal. The existing surface water treatment plant does not provide optimal Total Organic Carbon (TOC) reduction to help control Total Trihalomethanes (TTHM), which are a byproduct of the Contact Time (CT) of idinfectant chemicals with the raw surface water. The system was issued a Compliance Order from the California Department of Public Health (CDPH) due to TTHM and Haloacetic violations on November 3, 2008. Staff has requested grant funding from the CDPH for planning and construction of a new treatment facility to meet the orders of the Compliance Order. 2 . MSR DETERMI NATI ONS This portion of the report addresses the factors specified in the governing statute for Municipal Service Reviews. Growth and Population Projections The area within the district is subdivided and largely built out. Present and planned capacity The District treats and distributes surface water received from Westlands Water District to parcels within the District and to out-of-agency customers; collects, treats and disposes of wastewater using an on-site District package treatment plant; provides refuse collection via a contract with a private trash hauler, and funds street lighting. MSR and Sphere Update County Service Area No. 32 2 District facilities include a surface water treatment plant, distribution lines, storage facility and backup well and a wastewater collection system, treatment plant and disposal ponds. Financial Ability of Agencies to Provide Services The County of Fresno has provided its approved 2011-2012 budget for the district. All budget information provided by the District was reviewed to determine fiscal status, assess financial practices, and review pertinent management findings. The FY 2011-12 operating budget states that major revenues are expected to come from service charges ($163,911). The total budgeted income is $171,977. Major expenditures are expected to go professional and specialized services ($95,281), maintenance ($16,069) household expense ($21,364), agriculture (purchase of surface water) ($37,125), and utilities ($25,820). The total budgeted expense is $212,129. The budget is expected to be balanced, with a net use of the reserve funds of $40,152. The District is financed for services through annual fees and tax revenues. Existing services fees and District reserve funds finance Capital Improvement projects as well as operations and maintenance costs. A Proposition 218 hearing was conducted December 10, 2010 to increase water and sewer service rates. The proposed fee increase was successfully protested, resulting in no increase in these service rates. It is anticipated that another Proposition 218 hearing will be conducted during FY 2011-12 to increase water and sewer service rates and to levy an assessment for repayment of anticipated loan funds from the state for planning and designing a new surface water treatment plant. Status of, and Opportunities for, Shared Facilities There do not appear to be opportunities to share facilities with other agencies. Governmental Structure and Operational Efficiencies The County Public Works and Planning staff administers all CSAs. They exhibit the characteristics of agencies operating efficiently utilizing a common staff. The Board of Supervisors governs the District. It meets on Tuesdays and Board agendas are posted on the County website. MSR and Sphere Update County Service Area No. 32 3 3 . SPHERE OF I NFLUENCE R EVI E W AND UPDATE Government Code Section 56076 defines Sphere of Influence as “A plan for the probable physical boundaries and service area of a local agency, as determined by the commission.” Description of Current Sphere of Influence Its boundaries and Sphere of Influence are not coterminous. The District’s Sphere includes approximately 40 acres of land most of which is adjacent to the east of the District. A small portion of land located with the District’s Sphere is discontiguous, located further to the east. Proposed Sphere Changes The District proposes no changes in its Sphere of Influence or boundaries. Sphere of Influence Recommendation and Determinations It is recommended the Commission approve the following determinations and re-affirm the Sphere of Influence. 1. Present and planned land uses in the area, including agriculture and open-space. Present and planned land uses within the District are primarily residential. 2. Present and probable need for public facilities and services in the area. The probable need for public services and facilities reflect existing land uses within the District, which are predominantly residential. 3. Present capacity of public facilities and adequacy of public service that the agency provides or is authorized to provide. District facilities are sufficient for the services provided. 4. Existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency. Territory within the District is a residential community. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review was prepared by Fresno LAFCo staff using budgetary and District operational information provided by the County of Fresno Department of Public Works and Planning. Responsibility for any errors related to the District’s budget or scope of operations rests with those who provided information for the report. MSR and Sphere Update County Service Area No. 32 4 5 . RECOMMENDATI ONS In consideration of information gathered and evaluated during the Municipal Service Review it is recommended the Commission: 1. Accept public testimony regarding the proposed Municipal Service Review. 2. Approve the recommended Municipal Service Review determinations, together with any changes deemed appropriate. 3. Affirm the current Sphere of Influence and that it not be revised at this time. MSR and Sphere Update County Service Area No. 32 5