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Fresno Slough Water

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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 1 RESOLUTION NO. MSR-13-7 FRESNO LOCAL AGENCY FORMATION COMMISSION FRESNO COUNTY, CALIFORNIA In the Matter of LAFCo Determination RESOLUTION MAKING DETERMINATIONS MADE DETERMINATIONS AND AND ADOPTING MUNICIPAL SERVICE ADOPTED MUNICIPAL SERVICE REVIEW; MAKING DETERMINATIONS REVIEW; MADE DETERMINATIONS AND UPDATING SPHERE OF INFLUENCE AND UPDATED SPHERE OF FOR THE FRESNO SLOUGH WATER INFLUENCE FOR THE FRESNO DISTRICT SLOUGH 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, a Municipal Service Review (MSR) for the Fresno Slough Water District was prepared by the Fresno Local Agency Formation Commission; 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 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 Fresno Slough 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 makes the required determinations for the Municipal Service Review and Sphere of Influence Update, adopts the Municipal Service Review prepared for the Fresno Slough Water District by LAFCo staff, and updates the Sphere of Influence for said District by reaffirming the District's current boundary. ADOPTED THIS 7th DAY OF AUGUST, 2013, BY THE FOLLOWING VOTE: AYES: COMMISSIONERS POOCHIGIAN, PEREA, SANTOYO, LOPEZ, SILVA NOES: NONE ABSENT: NONE 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 7th day of August, 2013. David E. Fey, AICP, Executive Officer Fresno Local Agency Formation Commission G:\LAFCO WORKING FILES\MSR 2nd Round\RESOLUTIONS\MSR-13-7 - Fresno Slough.doc 0 8 Farmers 7 Commissioners 1 David E. Fey 1 Candie Fleming Extra for Candie 1 1 Ken Price 7 Farmers Water . 2 Extra Total 09 Fresno Slough 7 Commissioners 1 David E. Fey 1 Candie Fleming 1 Extra for Candie 1 Ken Price Fresno-Slough 4 2 Extra Total * FRESNO LOCAL AGENCY FORMATION COMMISSION (LAFCO) EXECUTIVE OFFICER'S REPORT AGENDA ITEM No. 09 DATE: August 7, 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 Fresno Slough 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 15320, "Changes in Organization of Local Agencies." 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 Fresno Slough Water District encompasses 14,059 acres northwest of the City of San Joaquin and the Unincorporated Community of Tranquillity. The District provides irrigation water services to the Angiola Water District and the Tranquillity Irritation 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. 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. 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 seven criteria: 1. Growth and population projections for the affected area. 2. Location and characteristics of any disadvantaged unincorporated communities, 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 or 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\Fresno Slough Staff Report.doc TRI VALLEY ខ Miles ξ.5 20 INTERNATIONAL E . . . . . . . . . . . . . . . . . . . District Areas KINGS RIVER District SOIs <math>\sim</math> City Areas النائية 57 Legend 9 راس GARFIELD (<del>4</del>) 2 168 잗 0 3 Jeg. <math>\{\pm\}</math> 51- Water Districts STINSON (£) RAISIN 269 (E) FARMERS 3 ? MLLE Ω Σ WESTLANDS FIREBAUGH CANAL NO SLOUE WIDREN PLEASANT VALLEY E vo MERCY FRES 1 OADVI PANOCHE Ó SANTA RITA ORO LOMA P ш EAGLE FIELD PACHECO SAN LUIS V ≱ FRESNO SLOUGH 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 August 2013 • • FRESNO SLOUGH WATER DISTRICT Irrigation Services Contact Information Secretary: Elizabeth Reeves Address: P O Box 689 Tranquillity, CA 93668 Phone: (559) 698-7225 Management Information Governing Body: Board of Directors Board Members: Danny M. Wade Appointed 2011, Expires Dec 2015 Matthew H. Hurley Appointed 2011, Expires Dec 2015 Christopher R. McCarthey Appointed 2011, Expires Dec 2013 Nino Carvalho Appointed 2011, Expires Dec 2013 Casey J. Ritchie Appointed 2011, Expires Dec 2013 Board Meetings: Second Monday of the Second Month of Each Quarter at 9:30 am at the Tranquillity Irrigation District Office at 25390 W Silveira Street in Tranquillity, CA Staffing: One Manager and One Water Master Service Information Empowered Services: Irrigation Water Services Provided: Irrigation Water Area Served: Northwest of the City of San Joaquin and the Unincorporated Community of Tranquillity. Population Served: Two Landowners, the Angiola Water and the Tranquillity Irritation District Acres Served: 1,459 acres Infrastructure: 12 Miles of Canal Conveyance Facilities, 8 Miles of Drain Conveyance Facilities, and Five Lift Pumps Fiscal Information FY 2012-13 Budget: Estimates $270,000 in Income and $150,210 in Expenses Sources of Funding: Irrigation Water Sales Rate Structure: $145 per Acre Foot Administrative Policies Master Plan: No Policies/Procedures: No By-laws: No Boundary Updated: 1955 SOI Updated: 2007 Other: No 1. MUNICIPAL SERVICE REVIEW Description of District Fresno Slough Water District (District) was formed in 1955 pursuant to California Water District Law, codified in Section 34000 et seq. of the Public Utilities Code. The current boundaries of the District are coterminous with the Sphere of Influence, represented by two distinct areas in northwestern Fresno County. The first area is owned by the Angiola Water District and is bounded by American Avenue to the north, San Mateo Avenue to the west, Adams and Clayton Avenues to the south, and a meandering border just west of Tuolumne Street to the east. This portion of the District is immediately adjacent to the Westlands Water District and in 2013 Angiola Water District sold its water to Westlands and used groundwater to irrigate the land they own in the Fresno Slough Water District. Angiola Water District intends to transfer the water it buys in the future to its facilities in Kings County. The second area is owned by Tranquillity Irrigation District and is located to the northeast of the first, adjacent to the southwestern boundary of the Mid Valley Water District's SOI. The two portions of the District are separated by approximately one-half mile of land not contained within a water district. The District works with the landholders and operators to secure sufficient and reliable water supplies and to operate and maintain the distribution system and facilities within District boundaries in an efficient and cost effective manner that provides for a reliable system. Fresno Slough Water District is located in northwest Fresno County northwest of the City of San Joaquin and the unincorporated Community of Tranquillity. The District's boundaries and sphere of influence are coterminous and encompass 1,459 acres. It does not provide services outside of its boundary. 2. MSR DETERMINATIONS This portion of the report addresses the factors specified in the governing statute for Municipal Service Reviews. Growth and Population Projections The District indicated that the land is expected to remain agricultural and no new development or population growth within the District is anticipated and service demands will not increase over current demands and historical use averages. However, the Angiola Water District has voiced a potential interest in petitioning for the US Bureau of Reclamation (USBR) service contract to be re-assigned to them. Should the USBR approve this potential request, the land will then be dry farmed, or operators will secure other sources of water, or the land will be left fallow. The District has indicated that between the settlement rights water and the well along with water supply support from Tranquillity Irrigation District it could continue operations. Municipal Service Review Fresno Slough Water District Location and Characteristics of any Disadvantaged Communities There are no disadvantaged communities within the district. The community of Tranquillity is south and east of the District and is considered disadvantaged. However, it would not benefit from irrigation water which is the only service the District is authorized to provide. Infrastructure Needs and Deficiencies The District currently owns and maintains 12 miles of canal conveyance facilities, eight miles of drain conveyance facilities, and five lift pumps. This infrastructure is sufficient for existing and anticipated future demands. The District has no plans for future infrastructure upgrades, as no additional growth is anticipated to occur within the District. Financial Ability to Provide Services Fiscal year (FY) 2011-2012 financial statement and an independent auditor's report were reviewed to determine the fiscal status, assess financial practices, and review pertinent management findings. The District receives income from fees for water, materials and services. The District's current water rates are $145.00 per acre foot of water supplied. According to the District, fee revenues are considered sufficient for District operations. Primary expenditures of the District are water purchases, maintenance and repairs, association dues, utilities, and salaries. The District has outstanding debt to Delta Habitat Conservation and Conveyance Program (DHCCP) and is currently making annual interest payments of $4,800. In FY 2011-2012, the District's total revenues were $120,050 and total expenditures were $69,372 resulting in a surplus of $50,678. Total revenues and expenditures for FY 2012- 2013 were projected to be $270,030 and $150,210, respectively. This budget anticipates a surplus of $119,820 for FY 2012-2013. The independent auditors' report for FY 2011-2012, prepared by John M. Murao, CPA, concluded that the District's financial statements fairly present the financial position of the District as of June 30, 2012. Based on review of financial data and budgetary information, the District appears to have sufficient financing mechanisms in place to support the continued provision of services to its residents. Revenues generated from user fees are sufficient to cover operational costs. Municipal Service Review Fresno Slough Water District Status of, and Opportunities for, Shared Facilities The District utilizes the offices of the Tranquility Irrigation District for regular board meetings and for posting meeting announcements and agendas. The District and the Tranquility Irrigation District entered into a joint use agreement in February 2005 to work on joint distribution facilities to maximize the beneficial water use between the two districts. Additionally, the District utilizes County staff for recording of legal documents, filing of 'Oaths of Office," and emergency services. Government Structure and Operational Efficiencies The Fresno Slough Water District Board of Directors is made up of five members who are elected by voters of the District. Board members serve four year, staggered terms and are not compensated. Elections are held in odd years and in accordance with the Uniform District Election Law. Two member's terms will expire in December 2015 and the remaining three will expire in December 2013. The District employs a manager/secretary and compensates this position at $13,200 per year and a water master which is compensated at $10,560 per year. The District's Board meetings are held the second Monday of the second month of each quarter at 9:30 a.m. in the offices of the Tranquility Irrigation District at 25390 W. Silveira Street, Tranquility, California. Meeting locations, times, and agendas are also posted at this location. The District does not maintain a website; however, information regarding the District can be found on the Fresno County website. 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 1,459 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 the following factors: 1. Present and planned land uses, including agricultural and open-space lands. Current land uses within the District boundaries are agricultural, and are expected to remain agricultural. Users purchase water for irrigation. Municipal Service Review Fresno Slough Water District 2. Present and probable need for public facilities and services in the area. There is no new development expected within the District in the near- or long- term. No additional need for public facilities or services is anticipated in the area. The District is working with the Tranquility Irrigation District to develop joint use distribution facilities to better serve existing residents. 3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. District facilities are adequate to provide irrigation water service to all of its customers. 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. The local agricultural community of Tranquility is of interest as the primary recipient of services from the District. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review was prepared by Fresno LAFCo staff using information provided by the Fresno Slough 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 recommended Municipal Service Review determinations, together with any changes deemed appropriate; and 3. Approve the recommended Sphere of Influence determinations and affirm the current Sphere of Influence. Municipal Service Review Fresno Slough Water District . . . RIVERSIDE DR ¢ENTRAL AVE MALAGA AVE SAMES RO AMERICAN AVE JEFFERSON AVE DENVER RD SAN MATEO AVE CALAVERAS AVE LINCOLN AVE ST TUOLUMNÉ CLAYTON AVE ADAMS AVE CQI ORADO RO SUMNER AVE MARIN AVE COWTRACOSTANE SOUTH AVE LEVEERD 20100000 PARLIER AVE DORADO AVE MANNING AVE NAPA AVE Щ Ĭ..... N 0 0.35 0.7 1.4 2.1 SAN JOAQUIN Miles Fresno Local Agency Formation Commission Fresno Slough Water District Legend District Area and SOI District Formed: 1955 Map Date: November 2007 SOI Adopted: 11/26/1975 City SOI District Area: 1,459 Acres SOI Updated: 11/07/2007 Sphere Area: 1,459 Acres City Area