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Local Agency Formation Commissions · fresno-msr-unknown-msr-13-6combined · Msr

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2 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - Fleming, Candace Lynn From: King, David Sent: Thursday, October 16, 2014 8:20 AM To: Fleming, Candace Lynn Subject: FW: Farmers Water District Attachments: doc01063520141014155416.pdf; 013-04 Farmer's Sphere.pdf Mickey's ears in Green are in Madera County. See the blue area on my map page 013-04. I shaded the green in Fresno Co. David King Supervising Cadastral Technician Assessor's Office, Hall of Records, Room 201 60/w/14 2281 Tulare St. Fresno, CA 93721 davidking@co.fresno.ca.us 559-600-1592 From: Fleming, Candace Lynn Sent: Wednesday, October 15, 2014 7:37 AM To: King, David Cc: Fey, David Subject: Farmers Water District Good Morning Dave, There seems to be some question if Farmers Water District lies in both Fresno and Madera Counties. Please see the attached maps. The first map is the original sphere determination map. As you can see there are two parcels that look like upside down Mickey Mouse ears that are excluded from the District. The second map includes those two parcels. The District's boundaries contain approximately 2,225 acres and are described as three miles southeast of Mendota along the southerly shore of the San Joaquin River. I guess my question is, Are those two parcels shown on the second map in Fresno County or Madera County? It looks like those two parcels are on the southern side of the river and I don't know why two parcels across the river would be in Madera County. Can you help with this? Thanks, Candie @ LAFCo 3 , 4 7. - 3. - 3. · 013-04 Assessor's Map Bk 013 - Pg. 04 County of Fresno, Calif. 1 ÷ Z Tax Rate Area NE COR. SEC. 28 (3.程) Çir. Şirin çir 5.1 38 31 .00,05 PLILIPI HINE 36 31 57. OF CA (19)ST 48.50Ac 192.386 132.384c NOTE- Assessor's Black Numbers Shown in Ellipses. Assessor's Parcel Numbers Shown in Circles. Transition of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of JOHOUM .00. 2221 158 64 COUNTY 41.2.15 3 4 2500 540517 256.40 AP-386 (28)S 312.91Ac. AP-386 (27)S 320.00Ac. ે 2 (201,124c.) 10.71 3 ·bq POR. TWP. 13 S., R. 15 E., M.D.B.& M. 7 (32.404c) MADERA 10 58 (35) 14 (35) 14 (35) OFOR 2000 74.734 10 25.5 5 (50.67/e.) 159.08AC. Nes J (18.16Ac.) AP-5213 (B)S 159.70Aç. AP-386 (26) S 378.78Ac. PARCEL 1 (61.70kc.) 2 (11,728a.) (26.10Ac) (83) 15.23 RHOW 4P-581 1.51Ac AP-583 (78)S 284.23Ac. 16-582 16S 263.07Ac. 208 30 108 30 118 30 141 80. 27 28 PM 40-15 40, Pg. 15 T SOUR 83. HAVE. 10.00 10.70 10.70 F N3 35.00 î 1.3PA. SAN MATEO 1 37 28 信報的外 PARCEL: 3 2 3 Agricultural Preserve Parcel Map No. 6233, Bk. This map is for Assessment purposes only. It is not to be constructed as portraying to the logal ownership or divisions of land for law. 3.E. ··· AOLE ··· + ÷ .41 . : ٠, ,, Fresno Local Agency Formation Commission October 11, 2013 Jim Stilwell, General Manager Farmers Water District 4460 W. Shaw Avenue, #219 Fresno, CA 93722 Dear Mr. Stilwell: Subject: Fresno LAFCo Approved Municipal Service Review and Sphere of Influence Update Beginning in January of 2001, LAFCOs became responsible for undertaking municipal service reviews prior to or in conjunction with the establishment of an entity's SOI. Enclosed is the Municipal Service Review/Sphere of Influence Update for the Farmers Water District which was approved by the Fresno Local Agency Formation Commission on October 9, 2013. Also enclosed is the Commission's resolution of approval for the Municipal Service Review and Sphere of Influence Update. The Commission approved this document after making the determinations required by statute. A determination is one or more declaratory statements that make a conclusion, based on all the information and evidence presented to the Commission with respect to the nine factors enumerated in GC §56430. Based on the determinations, the Commission also adopted the following recommendations for District management to consider. These recommendations are not requirements but are suggestions by the Commission to enhance local agency efficiencies and transparency. Recommendations: That the District should develop a capital improvement plan to provide for the repair and replacement of District assets; That the District should conduct annual audits to ensure accountability; That the District board should establish a regular meeting schedule by resolution to comply with the Brown Act; and That the District board should be composed of three members. LAFCo Office: 2607 Fresno Street, Suite B, Fresno, CA 93721 /FFOX /OO O/O/ ۵ .2 Jim Stilwell, General Manager October 11, 2013 Page 2 I encourage you to explore the feasibility of these actions and offer assistance of this office to you should you decide to pursue these options. If you have any questions or comments about the enclosures, please don't hesitate to contact me. Sincerely, David E/Fey, AICP Executive Officer DEF:cf Enclosures . . . . G:\LAFCO WORKING FILES\MSR 2nd Round\Ltr re approved MSR 101013 (3).docx . RESOLUTION NO. MSR-13-6 FRESNO LOCAL AGENCY FORMATION COMMISSION FRESNO COUNTY, CALIFORNIA In the Matter of LAFCo Determination RESOLUTION MAKING FINDINGS AND MADE FINDINGS AND DETERMINATIONS; DETERMINATIONS; ADOPTING MUNICIPAL) ADOPTED MUNICIPAL SERVICE REVIEW; SERVICE REVIEW; AND UPDATING THE AND UPDATED SPHERE OF INFLUENCE SPHERE OF INFLUENCE FOR THE FOR THE FARMERS WATER DISTRICT FARMERS WATER DISTRICT WHEREAS, pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56425 et. seq.) the Fresno Local Agency Formation Commission is required to review and update, as necessary, Spheres of Influence of local agencies not less than once every five years; and WHEREAS, Government Code Section 56430 directs the Commission to conduct a review of municipal services not later than the time it considers an action to establish or update a Sphere of Influence (SOI); and WHEREAS, the Executive Officer prepared a Municipal Service Review (MSR) for the Farmers Water District; and WHEREAS, notice of this Commission's hearing of said request was duly given in a publication of general circulation as required by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and State law, and at the time and in the form and manner provided by law; and WHEREAS, the Commission has heard, discussed and considered all relevant evidence, including but not limited to the Executive Officer's Municipal Service Review, environmental documentation, applicable land use plans and all testimony, correspondence and exhibits received during the public hearing process, all of which are included herein by reference. NOW, THEREFORE, BE IT RESOLVED that the Local Agency Formation Commission of the County of Fresno does HEREBY STATE, FIND, RESOLVE, DETERMINE, AND ORDER as follows: Section #1. Acting as Lead Agency pursuant to California Environmental Quality Act (CEQA) Guidelines, this Commission finds that the written determinations and the Municipal Service Review 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". Section #2. This Commission finds that the Municipal Service Review prepared for the Farmers Water District is complete and satisfactory. Section #3. This Commission finds that the written determinations within the Municipal Service Review satisfies State Law. Section #4. Pursuant to Government Code Sections 56425 and 56430, this Commission made the required determinations for the Municipal Service Review and adopted the Municipal Service Review prepared for the Farmers Water District and updated the District's sphere of influence. Section #5. This Commission determined that the District Board should be comprised of three people due to the size of the District. Section #6. The Executive Officer is hereby authorized and directed to mail certified copies of this Resolution as provided in Government Code Section 56882 and to file, as appropriate, in the office of the Fresno County Clerk all environmental documents, if any. ADOPTED THIS 9th DAY OF OCTOBER, 2013, BY THE FOLLOWING VOTE: AYES: COMMISSIONERS LARSON. POOCHIGIAN, LOPEZ, SILVA NOES: NONE ABSENT: COMMISSIONER SANTOYO STATE OF CALIFORNIA) COUNTY OF FRESNO ) CERTIFICATION I, David E. Fey, Executive Officer, Fresno Local Agency Formation Commission, hereby certify that the foregoing resolution was adopted by the Commission on the 9th day of October, 2013. David E. Fey, AICP, Executive Officer Fresno Local Agency Formation Commission G:\LAFCO WORKING FILES\MSR 2nd Round\RESOLUTIONS\MSR-13-6 RESOLUTION.doc 4 . ٤ FARMERS WATER DISTRICT MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE Report to the Fresno Local Agency Formation Commission David E. Fey, AICP Candie Fleming Samantha Hendricks 2607 Fresno Street, Suite B Fresno, CA 93721 October 2013 .5 4 4 z ÷ FARMERS WATER DISTRICT Irrigation Services Contact Information Secretary: Jim Stilwell Address: 4460 W. Shaw Avenue, #219 Fresno, CA 93722 Phone: (559) 264-1097 Management Information Governing Body: Board of Directors Board Members: Jim Merrill, President Expires November 2015 Barry Baker Expires November 2013 Donald Peracchi Expires November 2013 Board Meetings: As Needed Staffing: Part-Time Bookkeeper-Secretary and Part-Time Meter Reader Service Information Empowered Services: Irrigation Water Services Provided: Irrigation Water Area Served: East of the City of Mendota in Fresno and Madera Counties Population Served: Four irrigators Acres Served: 2,123 acres are served but the District encompasses 2,222 acres Infrastructure: 10 wells and 4.75 miles of underground pipeline Fiscal Information Income for 2012: $534,120 Sources of Funding: Water sales and assessment if necessary Rate Structure: $60 per Acre-Foot Administrative Policies Master Plan: No Policies/Procedures: No By-laws: Yes Boundary Updated: 1961 SOI Updated: 2007 Other: No . بد 4 Any MSR for a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, shall identify any DUCs within and contiguous to the sphere of influence of that city or special district and describe the present and probable needs and deficiencies for the provision of those public facilities and services within such DUC. The Farmers Water District provides irrigation water not municipal or industrial water and the nearest disadvantaged community is the City of Mendota. Determination - There are no disadvantaged communities within or near the district according to the District and the County of Fresno GIS data. 3. Present and Planned Capacity of Public Facilities and Infrastructure Needs or Deficiencies The District's infrastructure includes 10 electric wells and 4.75 miles of concrete or PVC pipeline owned by the District on private land. The District manager indicated this amount of infrastructure, and its condition is sufficient for current District operations. The District states it has no contingency funding for upgrades budgeted at this time. The District undertakes periodic infrastructure improvements that are paid for by District member landowners, based on their percentage of land owned within the District or from water sales income from District irrigators. Determination - The District indicated that there are no planned facilities. Water use in the District may decline so additional facilities are not expected to be needed in the immediate future. It is recommended the District develop a capital improvement plan and start budgeting for upgrades and improvements. 4. Financial Ability of Agencies to Provide Services The District provided financial audits for the years ended December 31, 2007 and 2008. The auditors have stated that the District's financial statements represent fairly, in all material respects, the financial position of the Farmers Water District. Financial statements as of December 31, 2012, were reviewed to determine the fiscal status, assess financial practices, and review pertinent management findings. For 2007, the District had total current assets of $79,639. This consisted of cash in bank, accounts receivable and prepaid expenses. Additional assets in the form of land, facilities and equipment totaled $139,623. Actual property, plant and equipment assets were $969,150; depreciation of these assets by $879,554 brought the total down to $89,596. The District's liabilities in 2007 totaled $23,270. Total retained earnings were $195,992. Municipal Service Review Farmers Water District à. . А 4 ÷ The District indicates that due to the physical separation between Farmers and Westlands Water Districts and the limited term of the existing agreement, consolidation of infrastructure and/or services is not possible at this time, nor is it considered possible in the future. The District's facilities are autonomous from Westland Water District facilities but are connected by the San Joaquin River and regulated by the Mendota Dam at the Mendota Pool. Determination - There is no opportunity for sharing facilities because the District is too far from other districts to make sharing facilities feasible. 6. Accountability for Community Service Needs, Including Government Structure and Operational Efficiencies California Water Code section 34000-38500 enables the formation of Water Districts to provide water services to a district. This District is an independent special district which has a separate board of directors not governed by other legislative bodies (either a city council or a county board of supervisors). The District does not require support from the County, but does report the results of District-run elections to the County. The District was formed under Statute 1913 PG. 815 of the California Water District Act. In 1957, the District traded its riparian water rights for sub-surface pumping rights (below 100 feet) with the US Bureau of Reclamation. Farmers Water District is managed by a board of three members. Board members are replaced with alternating election dates. Elections are posted in Fresno and Madera Counties. Meetings are held as needed. With only four properties within the District boundaries, the public purpose of the District is limited. The District employs one part-time secretary/book keeper who is assisted by a part-time District president. Additionally, the District has a part-time meter reader, who is a member of the District. The District manager indicated that the current levels of staffing are adequate to meet the District's current and future needs. The Board creates policy by adopting resolutions or ordinances through duly-noticed public hearings. District board meetings are held as needed; there is no adopted meeting schedule. These meetings are noticed and posted consistent with Brown Act requirements. Opportunities for public testimony are provided at the involvement and input at meetings. Determination - The District is accountable to the community service needs. LAFCo generally recommends Districts have five board members but with only four landowners that option is unfeasible. It is recommended that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. Municipal Service Review Farmers Water District 4 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. Determination - There are no communities of interest in the district. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review was prepared by Fresno LAFCo staff using information provided by the Farmers Water District. Responsibility for any errors or omissions rests with those who provided information for the report. 5. RECOMMENDATIONS 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 Municipal Service Review determinations, together with any changes deemed appropriate. 3. Approve the Sphere of Influence determinations and affirm the current Sphere of Influence. 4. Recommend that the District develop a capital improvement plan to provide for the repair and replacement of District assets. 5. Recommend that the District conduct annual audits to ensure accountability. 6. Recommend that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. . Municipal Service Review Farmers Water District RESOLUTION NO. MSR-13-6 FRESNO LOCAL AGENCY FORMATION COMMISSION FRESNO COUNTY, CALIFORNIA In the Matter of LAFCo Determination RESOLUTION MAKING FINDINGS AND MADE FINDINGS AND DETERMINATIONS; ) DETERMINATIONS; ADOPTING MUNICIPAL) ADOPTED MUNICIPAL SERVICE REVIEW; SERVICE REVIEW; AND UPDATING THE AND UPDATED SPHERE OF INFLUENCE SPHERE OF INFLUENCE FOR THE FOR THE FARMERS WATER DISTRICT FARMERS WATER DISTRICT WHEREAS, pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56425 et. seq.) the Fresno Local Agency Formation Commission is required to review and update, as necessary, Spheres of Influence of local agencies not less than once every five years; and WHEREAS, Government Code Section 56430 directs the Commission to conduct a review of municipal services not later than the time it considers an action to establish or update a Sphere of Influence (SOI); and WHEREAS, the Executive Officer prepared a Municipal Service Review (MSR) for the Farmers Water District; and WHEREAS, notice of this Commission's hearing of said request was duly given in a publication of general circulation as required by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 and State law, and at the time and in the form and manner provided by law; and WHEREAS, the Commission has heard, discussed and considered all relevant evidence, including but not limited to the Executive Officer's Municipal Service Review, environmental documentation, applicable land use plans and all testimony, correspondence and exhibits received during the public hearing process, all of which are included herein by reference. NOW, THEREFORE, BE IT RESOLVED that the Local Agency Formation Commission of the County of Fresno does HEREBY STATE, FIND, RESOLVE, DETERMINE, AND ORDER as follows: Section #1. Acting as Lead Agency pursuant to California Environmental Quality Act (CEQA) Guidelines, this Commission finds that the written determinations and the Municipal Service Review 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". Section #2. This Commission finds that the Municipal Service Review prepared for the Farmers Water District is complete and satisfactory. Section #3. This Commission finds that the written determinations within the Municipal Service Review satisfies State Law. Section #4. Pursuant to Government Code Sections 56425 and 56430, this Commission made the required determinations for the Municipal Service Review and adopted the Municipal Service Review prepared for the Farmers Water District and updated the District's sphere of influence. Section #5. This Commission determined that the District Board should be comprised of three people due to the size of the District. Section #6. The Executive Officer is hereby authorized and directed to mail certified copies of this Resolution as provided in Government Code Section 56882 and to file, as appropriate, in the office of the Fresno County Clerk all environmental documents, if any. * * * * ADOPTED THIS 9th DAY OF OCTOBER, 2013, BY THE FOLLOWING VOTE: AYES: COMMISSIONERS LARSON. POOCHIGIAN, LOPEZ, SILVA NOES: NONE ABSENT: COMMISSIONER SANTOYO STATE OF CALIFORNIA) COUNTY OF FRESNO CERTIFICATION I, David E. Fey, Executive Officer, Fresno Local Agency Formation Commission, hereby certify that the foregoing resolution was adopted by the Commission on the 9th day of October, 2013. David E. Fey, AICP, Executive Officer Fresno Local Agency Formation Commission G:\LAFCO WORKING FILES\MSR 2nd Round\RESOLUTIONS\MSR-13-6 RESOLUTION.doc Fresno Local Agency Formation Commission October 11, 2013 Jim Stilwell, General Manager Farmers Water District 4460 W. Shaw Avenue, #219 Fresno, CA 93722 Dear Mr. Stilwell: Subject: Fresno LAFCo Approved Municipal Service Review and Sphere of Influence Update Beginning in January of 2001, LAFCOs became responsible for undertaking municipal service reviews prior to or in conjunction with the establishment of an entity's SOI. Enclosed is the Municipal Service Review/Sphere of Influence Update for the Farmers Water District which was approved by the Fresno Local Agency Formation Commission on October 9, 2013. Also enclosed is the Commission's resolution of approval for the Municipal Service Review and Sphere of Influence Update. The Commission approved this document after making the determinations required by statute. A determination is one or more declaratory statements that make a conclusion, based on all the information and evidence presented to the Commission with respect to the nine factors enumerated in GC §56430. Based on the determinations, the Commission also adopted the following recommendations for District management to consider. These recommendations are not requirements but are suggestions by the Commission to enhance local agency efficiencies and transparency. Recommendations: That the District should develop a capital improvement plan to provide for the repair and replacement of District assets; That the District should conduct annual audits to ensure accountability; That the District board should establish a regular meeting schedule by resolution ٠ to comply with the Brown Act; and That the District board should be composed of three members. • LAFCo Office: 2607 Fresno Street, Suite B, Fresno, CA 93721 Phone: (559) 600-0601 • Fav. (550) 105 0605 • E mail: offening@ac frame as us 4 Jim Stilwell, General Manager October 11, 2013 Page 2 I encourage you to explore the feasibility of these actions and offer assistance of this office to you should you decide to pursue these options. If you have any questions or comments about the enclosures, please don't hesitate to contact me. Sincerely, David E/Fey, AICP Executive Officer DEF:cf Enclosures . . . . G:\LAFCO WORKING FILES\MSR 2nd Round\Ltr re approved MSR 101013 (3).docx . . .2 4 4 4 FARMERS WATER DISTRICT MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE Report to the Fresno Local Agency Formation Commission . ٠. David E. Fey, AICP Candie Fleming Samantha Hendricks 2607 Fresno Street, Suite B Fresno, CA 93721 October 2013 4 4 ÷ Any MSR for a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, shall identify any DUCs within and contiguous to the sphere of influence of that city or special district and describe the present and probable needs and deficiencies for the provision of those public facilities and services within such DUC. The Farmers Water District provides irrigation water not municipal or industrial water and the nearest disadvantaged community is the City of Mendota. Determination - There are no disadvantaged communities within or near the district according to the District and the County of Fresno GIS data. 3. Present and Planned Capacity of Public Facilities and Infrastructure Needs or Deficiencies The District's infrastructure includes 10 electric wells and 4.75 miles of concrete or PVC pipeline owned by the District on private land. The District manager indicated this amount of infrastructure, and its condition is sufficient for current District operations. The District states it has no contingency funding for upgrades budgeted at this time. The District undertakes periodic infrastructure improvements that are paid for by District member landowners, based on their percentage of land owned within the District or from water sales income from District irrigators. Determination - The District indicated that there are no planned facilities. Water use in the District may decline so additional facilities are not expected to be needed in the immediate future. It is recommended the District develop a capital improvement plan and start budgeting for upgrades and improvements. 4. Financial Ability of Agencies to Provide Services The District provided financial audits for the years ended December 31, 2007 and 2008. The auditors have stated that the District's financial statements represent fairly, in all material respects, the financial position of the Farmers Water District. Financial statements as of December 31, 2012, were reviewed to determine the fiscal status, assess financial practices, and review pertinent management findings. For 2007, the District had total current assets of $79,639. This consisted of cash in bank, accounts receivable and prepaid expenses. Additional assets in the form of land, facilities and equipment totaled $139,623. Actual property, plant and equipment assets were $969,150; depreciation of these assets by $879,554 brought the total down to $89,596. The District's liabilities in 2007 totaled $23,270. Total retained earnings were $195,992. Municipal Service Review Farmers Water District .2 į. 4 i ÷ The District indicates that due to the physical separation between Farmers and Westlands Water Districts and the limited term of the existing agreement, consolidation of infrastructure and/or services is not possible at this time, nor is it considered possible in the future. The District's facilities are autonomous from Westland Water District facilities but are connected by the San Joaquin River and regulated by the Mendota Dam at the Mendota Pool. Determination - There is no opportunity for sharing facilities because the District is too far from other districts to make sharing facilities feasible. 6. Accountability for Community Service Needs, Including Government Structure and Operational Efficiencies California Water Code section 34000-38500 enables the formation of Water Districts to provide water services to a district. This District is an independent special district which has a separate board of directors not governed by other legislative bodies (either a city council or a county board of supervisors). The District does not require support from the County, but does report the results of District-run elections to the County. The District was formed under Statute 1913 PG. 815 of the California Water District Act. In 1957, the District traded its riparian water rights for sub-surface pumping rights (below 100 feet) with the US Bureau of Reclamation. Farmers Water District is managed by a board of three members. Board members are replaced with alternating election dates. Elections are posted in Fresno and Madera Counties. Meetings are held as needed. With only four properties within the District boundaries, the public purpose of the District is limited. The District employs one part-time secretary/book keeper who is assisted by a part-time District president. Additionally, the District has a part-time meter reader, who is a member of the District. The District manager indicated that the current levels of staffing are adequate to meet the District's current and future needs. The Board creates policy by adopting resolutions or ordinances through duly-noticed public hearings. District board meetings are held as needed; there is no adopted meeting schedule. These meetings are noticed and posted consistent with Brown Act requirements. Opportunities for public testimony are provided at the involvement and input at meetings. Determination – The District is accountable to the community service needs. LAFCo generally recommends Districts have five board members but with only four landowners that option is unfeasible. It is recommended that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. Municipal Service Review Farmers Water District 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. Determination - There are no communities of interest in the district. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review was prepared by Fresno LAFCo staff using information provided by the Farmers Water District. Responsibility for any errors or omissions rests with those who provided information for the report. 5. RECOMMENDATIONS 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 Municipal Service Review determinations, together with any changes deemed appropriate. 3. Approve the Sphere of Influence determinations and affirm the current Sphere of Influence. 4. Recommend that the District develop a capital improvement plan to provide for the repair and replacement of District assets. 5. Recommend that the District conduct annual audits to ensure accountability. 6. Recommend that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. Municipal Service Review Farmers Water District THIS IS A LEGAL NOTICE NOTICE OF PUBLIC HEARING FRESNO LOCAL AGENCY FORMATION COMMISSION NOTICE IS HEREBY GIVEN that the Fresno Local Agency Formation Commission (LAFCo) will consider Municipal Service Reviews and Sphere of Influence Updates for the following on August 7, 2013: Farmers Water District and Fresno Slough Water District LAFCo is responsible for reviewing the adopted spheres of influence (SOI) for special districts in Fresno County (Government Code section 56425). Municipal Service Reviews (MSRs) involve analyzing an agency's services and making determinations. The Commission is required to adopt written determinations regarding six specific topics. LAFCo has reviewed the SOIs and has prepared MSRs for the Farmers Water District and Fresno Slough Water District. The Commission will consider the information, recommendations, and determinations in these studies at its August 7, 2013 hearing. At this hearing the Commission will also consider adopting the MSRs, with or without amendments, and make determinations pursuant to the California Government Code Section 56430(a). The Commission will also determine whether Farmers Water District's or the Fresno Slough Water District's current Sphere of Influence are sufficient or whether such Sphere should be revised. PLEASE BE ADVISED that the public hearing will be held at 1:30 p.m., or soon thereafter, on August 7, 2013, in Room 301, Hall of Records, Tulare and "M" Streets, Fresno. All interested parties are invited to attend this hearing and present testimony on this matter. For additional information contact the Commission Office at 2607 Fresno Street, Suite B, Fresno, CA 93721. Please direct questions to David Fey, LAFCo Executive Officer at (559) 600-0604 or e- mail Mr. Fey at dfey@co.fresno.ca.us. Dated: July 15, 2013 DAVID E. FEY, AICP, EXECUTIVE OFFICER LOCAL AGENCY FORMATION COMMISSION FRESNO LOCAL AGENCY FORMATION COMMISSION (LAFCO) EXECUTIVE OFFICER'S REPORT AGENDA ITEM No. 12 DATE: October 9, 2013 TO: Fresno Local Agency Formation Commission FROM: David E. Fey, AICP, Executive Officer SUBJECT: Consider Adoption - Municipal Service Review and Sphere of Influence Update Prepared for the Farmers Water District. 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 Review and Sphere of Influence determination under consideration are Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15306, "Information Collection" and Section 15061(b)(3), "General Rule Exemption." B) Find that the Municipal Service Review and Sphere of Influence Update prepared for the District are complete and satisfactory. C) Find that the written determinations within the Municipal Service Review and Sphere of Influence Update satisfy State Law. D) Pursuant to Government Code Sections 56425 and 56430 make the required determinations for the Municipal Service Review and District Sphere of Influence, adopt the Municipal Service Review prepared for the District, and update the Sphere of Influence for said District by reaffirming the current boundaries. Description: The Farmers Water District encompasses 2,222 acres east of the City of Mendota in both Fresno and Madera Counties. The District provides irrigation water to the landowners in the District. 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. MSRs 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. SOI 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 determinations 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 seven criteria: 1. Growth and population projections for the affected area. 2. Location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence. 3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies. 4. Financial ability of agencies to provide services. 5. Status of, and opportunities for, shared facilities. 6. Accountability for community service needs, including governmental structure and operational efficiencies. 7. 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. This MSR is 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, 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, this MSR qualifies 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 update qualifies for the same general exemption from environmental review based upon CEQA Regulation section 15061(b)(3). There is no possibility that this MSR and SOI update 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 MSR and SOI update and determines that the project is exempt from CEQA, staff will prepare a notice of exemption as required by CEQA Regulation section 15062. G:\LAFCO WORKING FILES\MSR 2nd Round\Water Districts\Farmers Staff Report.doc S • . FARMERS WATER DISTRICT MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE Report to the Fresno Local Agency Formation Commission David E. Fey, AICP Candie Fleming Samantha Hendricks 2607 Fresno Street, Suite B Fresno, CA 93721 October 2013 . 2 FARMERS WATER DISTRICT Irrigation Services Contact Information Secretary: Jim Stilwell Address: 4460 W. Shaw Avenue, #219 Fresno, CA 93722 Phone: (559) 264-1097 Management Information Governing Body: Board of Directors Board Members: Jim Merrill, President Expires November 2015 Barry Baker Expires November 2013 Donald Peracchi Expires November 2013 Board Meetings: As Needed Staffing: Part-Time Bookkeeper-Secretary and Part-Time Meter Reader Service Information Empowered Services: Irrigation Water Services Provided: Irrigation Water Area Served: East of the City of Mendota in Fresno and Madera Counties Population Served: Four irrigators Acres Served: 2,123 acres are served but the District encompasses 2,222 acres Infrastructure: 10 wells and 4.75 miles of underground pipeline Fiscal Information Income for 2012: $534,120 Sources of Funding: Water sales and assessment if necessary Rate Structure: $60 per Acre-Foot Administrative Policies Master Plan: No Policies/Procedures: No By-laws: Yes Boundary Updated: 1961 SOI Updated: 2007 Other: No 1. MUNICIPAL SERVICE REVIEW Description of District Farmers Water District (District) was formed in 1949 and became operational in 1952 as a riparian water provider. The District was formed under Statute 1913 PG. 815 of the California Water District Act. In 1957, the District traded its riparian water rights for sub- surface pumping rights (below 100 feet) with the US Bureau of Reclamation. The primary purpose of the District is to supply irrigation water to land within its boundaries. District irrigators have the option to transfer this water to supplement their supplies on their own land in Westlands Water District. The District is located in Fresno County and Madera County, serving 2,123 acres of land north of Highway 180 on the south side of the San Joaquin River. The District includes area on both sides of San Mateo Avenue. The portion of the District in Madera County contains nearly 00 acres and is District owned fallow land that contains the District's infrastructure. The portion of the District in Fresno County is privately owned irrigable lands. There are four land owners within the District, covering four properties. One property is absentee-owned and leased. 2. MSR DETERMINATIONS This portion of the report addresses the factors specified in the governing statute for Municipal Service Reviews. 1. Growth and Population Projections for the Affected Area Current land uses within the District boundaries are agricultural, and are expected to remain agricultural. Demand for water is static and may decrease as members convert from flood irrigation of field crops to drip or micro-sprinkler irrigation for permanent plantings. Determination - No growth or population increases are anticipated by the Farmers Water District. Future land uses are anticipated to remain the same. The Location and Characteristics of any Disadvantaged Unincorporated Communities Within or Contiguous to the Sphere of Influence SB 244 and Fresno LAFCo policies define a "disadvantaged unincorporated community" to mean inhabited territory with 12 or more registered voters with an annual median household income that is less than 80 percent of the statewide annual median household income and that includes at least 15 dwelling units at a density not less than one unit per acre. Municipal Service Review Farmers Water District Ą. Any MSR for a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, shall identify any DUCs within and contiguous to the sphere of influence of that city or special district and describe the present and probable needs and deficiencies for the provision of those public facilities and services within such DUC. The Farmers Water District provides irrigation water not municipal or industrial water and the nearest disadvantaged community is the City of Mendota. Determination - There are no disadvantaged communities within or near the district according to the District and the County of Fresno GIS data. 3. Present and Planned Capacity of Public Facilities and Infrastructure Needs or Deficiencies The District's infrastructure includes 10 electric wells and 4.75 miles of concrete or PVC pipeline owned by the District on private land. The District manager indicated this amount of infrastructure and its condition is sufficient for current District operations. The District states it has no contingency funding for upgrades budgeted at this time. The District undertakes periodic infrastructure improvements that are paid for by District member landowners, based on their percentage of land owned within the District or from water sales income from District irrigators. Determination - The District indicated that there are no planned facilities. Water use in the District may decline so additional facilities are not expected to be needed in the immediate future. It is recommended the District develop a capital improvement plan and start budgeting for upgrades and improvements. 4. Financial Ability of Agencies to Provide Services The District provided financial audits for the years ended December 31, 2007 and 2008. The auditors have stated that the District's financial statements represent fairly, in all material respects, the financial position of the Farmers Water District. Financial statements as of December 31, 2012, were reviewed to determine the fiscal status, assess financial practices, and review pertinent management findings. For 2007, the District had total current assets of $79,639. This consisted of cash in bank, accounts receivable and prepaid expenses. Additional assets in the form of land, facilities and equipment totaled $139,623. Actual property, plant and equipment assets were $969,150; depreciation of these assets by $879,554 brought the total down to $89,596. The District's liabilities in 2007 totaled $23,270. Total retained earnings were $195,992. Municipal Service Review Farmers Water District For 2008, the District had total current assets of $60,128. This consisted of cash in bank, accounts receivable and prepaid expenses. Additional assets in the form of land, facilities and equipment totaled $120,706. After depreciation, actual property, plant and equipment assets were valued at $70,679. The District's liabilities in 2008 totaled $18,017. Total retained earnings were $162,817. This is a decrease of $33,175 from the District's total retained earnings in 2007. The District's financial statements for 2012 show that the District had total income of $534,120. This was an increase of $240,360 from 2011 ($293,760) due to increased water rates. The District's income is derived from water sales and assessments. In 2012, the District's expenses included electricity ($404,169), repairs and maintenance ($53,992), fuel and oil ($40,461), professional fees ($11,738), and legal and accounting ($9,000). With total operational expenses of $535,177 and a total operational income of $534,120, the District had a net income of -$1,057 in 2012. In addition to the net income the District had $97,163 in the bank and had accounts receivable of $15,900. The total assets were $139,042 and the total liabilities and equity came to $139,042, making the budget balanced. Based on the information provided, the District appears to be operating efficiently. The District is financed through payment for water sales to customers. This can result in revenue fluctuations, however; as needed, the District may conduct assessments. Additionally, the District indicated that it does not have any outstanding debt. The District stated that its financial statements have not been audited since 2009 but that it intends to obtain the services of an auditor to audit the financial statements for 2009- 2012 in the near future. The District reviews and/or revises user fees on an annual basis. The current fees are $60 per acre foot. The District's fees were last updated in 2011. Determination - The District is financially able to provide services. The District reviews the fees annually and can conduct assessments as needed. It is recommended that the District conduct annual audits to ensure accountability. 5. Status of, and Opportunities for, Shared Facilities Three of the four irrigators within the District are members of the Mendota Pool Group and have an arrangement with Westlands Water District and the Bureau of Reclamation that allows for the transfer of water. The fourth irrigator is not a member of the Mendota Pool Group but does have a similar arrangement with both Westlands Water District and the Bureau of Reclamation. These agreements allow a portion of water pumped from the District's area to be transferred to the members' accounts in Westlands Water District. Municipal Service Review Farmers Water District The District indicates that due to the physical separation between Farmers and Westlands Water Districts and the limited term of the existing agreement, consolidation of infrastructure and/or services is not possible at this time, nor is it considered possible in the future. The District's facilities are autonomous from Westland Water District facilities but are connected by the San Joaquin River and regulated by the Mendota Dam at the Mendota Pool. Determination - There is no opportunity for sharing facilities because the District is too far from other districts to make sharing facilities feasible. 6. Accountability for Community Service Needs, Including Government Structure and Operational Efficiencies California Water Code section 34000-38500 enables the formation of Water Districts to provide water services to a district. This District is an independent special district which has a separate board of directors not governed by other legislative bodies (either a city council or a county board of supervisors). The District does not require support from the County, but does report the results of District-run elections to the County. The District was formed under Statute 1913 PG. 815 of the California Water District Act. In 1957, the District traded its riparian water rights for sub-surface pumping rights (below 100 feet) with the US Bureau of Reclamation. Farmers Water District is managed by a board of three members. Board members are replaced with alternating election dates. Elections are posted in Fresno and Madera Counties. Meetings are held as needed. With only four properties within the District boundaries, the public purpose of the District is limited. The District employs one part-time secretary/book keeper who is assisted by a part-time District president. Additionally, the District has a part-time meter reader, who is a member of the District. The District manager indicated that the current levels of staffing are adequate to meet the District's current and future needs. The Board creates policy by adopting resolutions or ordinances through duly-noticed public hearings. District board meetings are held as needed; there is no adopted meeting schedule. These meetings are noticed and posted consistent with Brown Act requirements. Opportunities for public testimony are provided at the involvement and input at meetings. Determination - The District is accountable to the community service needs. LAFCo generally recommends Districts have five board members but with only four landowners that option is unfeasible. It is recommended that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. Municipal Service Review Farmers Water District 7. Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy Farmers Water District is one of the only water districts that is not surrounded by other water districts making sharing of services impossible. Board meetings are noticed and open to the public although most of the meetings are not attended by other than the landowners. Determination - There are no other matters related to effective or efficient service delivery. 3. SPHERE OF INFLUENCE REVIEW 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 The District's boundaries and sphere of influence are coterminous and encompass 2,222 acres. No Proposed Sphere Changes The District reports its sphere and boundary is correct at this time and no changes are anticipated. Sphere of Influence Determinations When LAFCO amends a sphere of influence it must adopt specific determinations with respect to certain factors. Based on information in the record, the following determinations are recommended for each factor: 1. Present and planned land uses, including agricultural and open-space lands. Determination - Current land uses within the District boundaries are agricultural, and are expected to remain agricultural. Users purchase water for irrigation. 2. Present and probable need for public facilities and services in the area. Determination - The need for District services is expected to remain static and is sufficient to serve the District's members. 3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. Determination - The District is currently able to providing and adequate level of service utilizing the current facilities. Municipal Service Review Farmers Water District 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. Determination – There are no communities of interest in the district. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review was prepared by Fresno LAFCo staff using information provided by the Farmers Water District. Responsibility for any errors or omissions rests with those who provided information for the report. 5. RECOMMENDATIONS 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 Municipal Service Review determinations, together with any changes deemed appropriate. 3. Approve the Sphere of Influence determinations and affirm the current Sphere of Influence. 4. Recommend that the District develop a capital improvement plan to provide for the repair and replacement of District assets. 5. Recommend that the District conduct annual audits to ensure accountability. 6. Recommend that the District board establish a regular meeting schedule by resolution to comply with the Brown Act. Municipal Service Review Farmers Water District Madera County Fresno County Madera County ###################################### anamananananananananananananananananana MENDOTA 41 180 [33] SAN MATEO AVE 2121121121121121121211 SAN BENITO AVE 7. 41 n, 180 PANOCHERD SAN BENITO AVE - E 0 0.5 2 1 Miles Fresno Local Agency Formation Commission Farmers Water District Legend City SOI Map Date: September 2013 District Formed: 1949 District Area: 2,222 Acres SOI Adopted: City Area 11/26/1975 Sphere Area: 2,222 Acres SOI Updated: 12/05/2007 District Area and SOI 2,123 In Fresno county FRESNO LOCAL AGENCY FORMATION COMMISSION (LAFCO) EXECUTIVE OFFICER'S REPORT 8 0 AGENDA ITEM NO. DATE: August 7, 2013 TO: Fresno Local Agency Formation Commission FROM: David E. Fey, AICP, Executive Officer SUBJECT: Consider Continuing - Municipal Service Review and Sphere of Influence Update Prepared for the Farmers Water District. Recommendation: Continue to a date uncertain to allow staff time to work with the District to prepare an accurate and complete MSR for Commission consideration. Description: The Farmers Water District provides irrigation water services to four landowners and encompasses 2,287 acres east of the City of Mendota in Fresno and Madera Counties. 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. MSRs 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. This item was notice for public hearing with the assumption that additional information requested by staff would be provided by the District in a timely manner. This is a common practice that is facilitated by responsive district staff. However, the requested financial information has not been delivered in time to finalize the MSR. Staff is therefore requesting the continuation to a date and time uncertain to incorporate the information into the record to be able to bring an accurate and complete MSR to the Commission for its consideration. In the meantime, staff is revising its practice of noticing MSR hearings in anticipation of having complete documents and will now only notice such hearings after the document is complete. G:\LAFCO WORKING FILES\AUGUST 7, 2013\STAFF REPORT - Continue Farmers.doc Madera County Fresno County Madera County and in a light and in a light 8488 1 MENDOTA 180 ે 33 ડે SAN MATEO AVE and the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the latest of the late ###################################### ! SAN BENITO AVE 180 PANOCHERD Janey & SAN BENITO AVE N W٠ 0 0.5 1 2 Miles Fresno Local Agency Formation Commission Farmers Water District Legend Note: Portion of District in Madera County not shown Map Date: December 2007 District Area and SOI District Formed: 1949 District Area: 2,287 Acres SOI Adopted: City SOI 11/26/1975 Sphere Area: 2,287 Acres SOI Updated: 12/05/2007 City Area In Fresno county