LAFCO
Raisin City Water
Read the report at Local Agency Formation Commissions ↗
R C W D
AISIN ITY ATER ISTRICT
M S R
UNICIPAL ERVICE EVIEW AND
S I U
PHERE OF NFLUENCE PDATE
Report to the
Fresno Local Agency Formation Commission
David E. Fey, AICP
Candie Fleming
George W. Uc
2607 Fresno Street, Suite B
Fresno, CA 93721
MSR-15-3
October 14, 2015
AGENCY PROFILE: RAISIN CITY WATER DISTRICT
Irrigation Services
District Contacts: John P. Kinsey, Legal Counsel Stephen C Heintz, District Administrator
265 E. Riverpark Circle Suite 310 1100 W. Shaw Avenue, Suite 148
Fresno, California 93720 Fresno, CA 93711
Phone: (559) 233-4800 Phone: 559-229-4740
Office Address: 1100 West Shaw Avenue, Suite 148
Fresno, CA 93711
Management Information
District Formation: 1962
Principal Act: California Water Code Section 34000-38500
Special District Powers: Prescribed in Water Code Section 35400-35413
LAFCo
Authorized Services:1 Levy and collect assessments and standby charges; perform agreements, enter
contracts, and plan for the distribution of water for irrigation purposes
Governing Body: Five-member Board of Directors, landowner-voter, representation at-large
Board Members: Russel G. Gunlund, President Appointed in lieu of election 2013- Expires 2017
Gagandip Batth Appointed in lieu of election 2013- Expires 2017
Nindy Sandhu Appointed in lieu of election 2011- Expired 2015
Jusdip (Jerry) Rai Appointed in lieu of election 2011- Expires 2015
Donald Cameron Appointed to Vacancy 2015- Expires 2015
Board Meetings: Second Tuesday of each Month, at 3:00 p.m.
Meeting Location: Raisin City Elementary School: 6425 W. Bowles Avenue, Raisin City, CA 93652
Staffing: Contract District Administrator
Service Information
Area Served: 700 landowners, 880 parcels
District Service Area: 51,719 Acres
Sphere of Influence: 80,125 Acres
Infrastructure: No improved facilities
1 Pursuant to Government Code Section 56425(i)
MSR and Sphere Update Raisin City Water District
2
AGENCY PROFILE: RAISIN CITY WATER DISTRICT
Irrigation Services
Fiscal Information
Budget: $38,550 Amount in Bank Account: $668,205
Sources of Funding: Property Assessments and grant funding
Rate Structure: Tax base $.75 per acre or $2.00 for minimum parcel size
Administrative Policies
Master Plan: None Policies/Procedures: No By-laws: Yes
Boundary Formed: 1962 SOI Adopted: 1975 SOI Updated: 2015
MSR and Sphere Update Raisin City Water District
3
Table of Contents
1. MUNICIPAL SERVICE REVIEW ................................................................................................... 5
DESCRIPTION OF DISTRICT ......................................................................................................................... 5
Principal Act ......................................................................................................................................... 5
Service Area, Sphere of Influence, and District Background ................................................................ 6
Sustainable Ground Management Act Participation ............................................................................ 7
McMullin Recharge Group ................................................................................................................... 9
Mid-Valley Canal Project and the Mid-Valley Water Authority ..........................................................13
District Action Plan .............................................................................................................................14
Land use and the Fresno County General Plan ...................................................................................16
Disadvantaged Unincorporated Communities .....................................................................................17
Sustainable Groundwater Management Act - Present and Planned Capacity of Public Facilities .....18
District Administration ........................................................................................................................19
District Finances ..................................................................................................................................20
Infrastructure .......................................................................................................................................26
District Accountability .........................................................................................................................28
2. MSR DETERMINATIONS ..............................................................................................................32
1. Growth and Population Projections for the Affected Area. .............................................................32
2. The Location and Characteristics of any Disadvantaged Unincorporated Communities Within or
Contiguous to the Sphere of Influence. ................................................................................................32
3. Present and Planned Capacity of Public Facilities and Infrastructure Needs or Deficiencies. ......33
4. Financial Ability of Agency to Provide Services. .............................................................................33
5. Status of, and Opportunities for, Shared Facilities. .........................................................................34
6. Accountability for Community Service Needs, Including Government Structure and Operational
Efficiencies. ..........................................................................................................................................35
7. Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission
Policy. ..................................................................................................................................................36
3. SPHERE OF INFLUENCE REVIEW AND UPDATE ..................................................................37
1.Present and planned land uses, including agricultural and open-space lands. ................................38
2.Present and probable need for public facilities and services in the area. ........................................38
3.Present capacity of public facilities and adequacy of public services that the agency provides or is
authorized to provide. ..........................................................................................................................39
4.Existence of any social or economic communities of interest in the area if the commission
determines that they are relevant to the agency. ..................................................................................40
5.For an update of a sphere of influence of a city or special district that provides public facilities or
services related to sewers, municipal and industrial water, or structural fire protection, that occurs
pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for those public
facilities and services of any disadvantaged unincorporated communities within the existing sphere of
influence. ..............................................................................................................................................40
4. RECOMMENDATIONS ...................................................................................................................41
3. ACKNOWLEDGEMENTS & REFERENCES...............................................................................43
Appendix A– RCWD’s Financial Statements for Fiscal Year Ending June 30, 2013
Appendix B- RCWD’s Financial Statements for Fiscal Year Ending June 30, 2014
Appendix C- RCWD’s Descriptive Comments to DMSR
Appendix D- RCWD’s Progress Reports Submitted to Fresno LAFCO
Municipal Service Review Raisin City Water District
4
1. MUNICIPAL SERVICE REVIEW
DESCRIPTION OF DISTRICT
PRINCIPAL ACT
The Raisin City Water District (District) was formed in 1962 for the purpose of providing
irrigation water to lands within its boundaries. The District’s principal act is California
Water Code sections 34000-38500, which enable the formation of Water Districts to
acquire, plan, construct, maintain, improve, operate, and keep in repair the necessary
works for the production, storage, transmission, and distribution of water for irrigation,
domestic, industrial, and municipal purposes.2 However, the District has not provided
water services since its formation due to multiple reasons that will be discussed in this
report.
The District informed Fresno LAFCo staff that it currently provides its landowners with
representation, advocacy and information services regarding statewide water policy,
water rights, new state legislation, and other issues affecting local agricultural irrigation.
The District is participating in the implementation of the state’s Sustainable
Groundwater Management Act (signed into law September 16, 2014) as a member of
the Fresno County SGMA Working Group, which is in the planning efforts of the
Groundwater Sustainable Agency (GSA) on behalf of its landowners in the District. The
District states that it will represent, advocate on behalf of, and protect its landowners’
interests as the Groundwater Sustainable Plan (GSP) is prepared by the GSA.
The District is an independent special district, which has a five-member board of
directors not governed by another legislative body (either a city council or a county
board of supervisors). Candidates eligible to serve as the board of directors must be a
holder of title to land within the District boundaries or the legal representative of the
holder of title to land within the District boundaries. District board members are subject
to election of four-year staggered terms; in the event no candidates file election papers,
members are appointed in lieu of an election by the Fresno County Board of Supervisors
based on recommendation provided from the District’s board of directors.
Fresno LAFCo Policy designates the District as a “level three” special district that
provides “non-municipal” services to its constituency.3 Non-municipal special districts
typically do not request or experience modifications to their district service area or
request an update or revision to the Commission’s adopted SOI for the agency. A level
three non-municipal local agency means that, in Fresno LAFCo's judgment, services
provided by the agency do not facilitate or induce population growth.
2 California Water Code Section 35401
3 Fresno LAFCo Policies, Standards, and Procedures, Policy 107- Municipal Service Review Policy
Municipal Service Review Raisin City Water District
5
In accordance with Government Code section 56066, Fresno County is the principal
county. The Fresno Local Agency Formation Commission (“Fresno LAFCo”) is
responsible for updating the SOI for the District consistent with Government Code
section 56425(g). In order to update the agency’s SOI, Fresno LAFCo has prepared this
municipal service review in accordance with Government Code section 56430.
SERVICE AREA, SPHERE OF INFLUENCE, AND DISTRICT BACKGROUND
The District service area is located in the central part of Fresno County, approximately
nine miles southwest of the City of Fresno, 12 miles southeast of the City of Kerman,
and five miles northwest of the unincorporated community of Caruthers. The District is
six miles west of State Route (SR) 41, approximately nine miles south of SR 180, and
eight miles east of SR 145.
The District’s 51,719-acre service area is bounded by American Avenue to the north, S.
McMullin Grade to the west, Conejo Avenue to the South and Brawley Avenue to the
east. The Commission’s adopted Sphere of Influence (SOI) includes the entire service
area and extends northwest to Jensen Avenue and west to Lake Avenue. Total acreage
within the District’s SOI amounts to approximately 80,125-acres this includes the
District’s service area. Approximately 28,406 acres of land within the District’s SOI are
eligible for future District annexation; this area is west of the existing service area
bounded by S. McMullin Grade to the east, along W. Adams Avenue and Lake Avenue to
the west, and up to California Avenue on the north slightly along the southern
boundaries of City of Kerman and back down to American Avenue.
Since its formation, the District has not been able to secure a source of surface water
entitlement. Farmers within the District must therefore obtain water for irrigation
purposes by pumping groundwater. The 2007 District Municipal Service Review (MSR)
noted that one of the District’s purposes is to improve groundwater conditions
throughout the Raisin City area. The District informed Fresno LAFCo staff that it
provides its landowner with some direct services,4 and other services are provided
indirectly through joint partnership with other Districts. During the preparation of the
2015 MSR, the District provided information about its operation and plans for expanding
District services to its landowners.
4 See Appendix C – RCWD’s comments to Draft MSR- Response One
Municipal Service Review Raisin City Water District
6
Figure 1: Raisin City Water District Boundaries
Municipal Service Review Raisin City Water District
7
SUSTAINABLE GROUND MANAGEMENT ACT PARTICIPATION
In June, 2015, the District informed Fresno LAFCo that it is taking an active role in the
implementation of California’s Sustainable Groundwater Management Act (“SGMA”).
This groundbreaking legislation was signed into law by Governor Edmund G. Brown Jr.
on September 16, 2014. SGMA is comprised of three bills: Assembly Bill 1739
(Dickenson) and Senate Bills 1319 and 1168 (Pavley). This three-part legislation allows
local agencies to develop groundwater sustainability plans that are compatible with
their regional economic and environmental needs. SGMA creates a framework for
sustainable local groundwater management for the first time in California’s history.
SGMA requires local agencies to form a Groundwater Sustainability Agencies (“GSAs”) in
local groundwater basins by June 2017; and, also requires the adoption of Groundwater
Sustainability Plans (“GSPs”) for groundwater basins deemed high priority by year 2020.
The District resides in the Kings sub-basin, which has been designated by the California
Department of Water Resources (“DWR”) as a high-priority sub-basin and subject to a
condition of critical overdraft. The County is presumed to be the GSA for all unmanaged
basins and for unincorporated land with no local agency representation. The law
requires State intervention if local agencies do not form GSAs by June 30, 2017, and/or
fail to adopt and implement a GSP by 2020 or 2022 deadlines, depending on the basin’s
critical status issued by DWR.
The District informed Fresno LAFCo Staff that it is taking an active role in the
implementation of SGMA in order to maintain local control of groundwater
management decisions. The District joined the Kings River Conservation District, the
County of Fresno, and other public and private water agencies to form a working group
to coordinate the implementation of SGMA in the Lower Kings Groundwater Basin.
According to the District, this group will work with other groups in the greater Kings
basin to set groundwork for developing the GSAs within the Kings Basin. The
subsequent preparation and adoption of the GSPs is anticipated to be prepared
thereafter. A Memorandum of Understanding for the Lower Kings Groundwater Basin
working group was provided by the District in preparation of this report.
The first draft of the 2015 MSR recommended that, because the District appeared to be
inactive (meaning that it had no projects, provided no services, and held no surface
water rights), the District be dissolved. The District responded to this recommendation
with several actions: making substantive changes to its management to demonstrate
accountability to its principal act; performing needed outreach to improve
communication between the District and small property residents; and providing Fresno
LAFCo information about the District’s developing positions relative to SGMA.
Municipal Service Review Raisin City Water District
8
According to the District, areas within and surrounding the District’s service areas have
the worst potential groundwater overdraft problems on the Kings Basin. The District
has expressed that it is in place to advocate for the landowners within the District. The
District states that in the absence of a representing agency such as RCWD, no direct
representation for landowners in decisions making to implement SGMA would be
possible. Fresno LAFCo notes that under SGMA, the County would presume
responsibility for areas that are not within a district service area or city limit of a local
agency that manages water resources—though they may be within a local agency’s SOI.5
It is the District’s opinion that it can protect landowners’ farmland from becoming
fallowed and assist landowners to maintain land values by its participation as a member
of the SGA.
MCMULLIN RECHARGE GROUP
The District is a member of the McMullin Recharge Group (MRG), formed in 1999 to
address the long-term water supply imbalance in the Raisin City area caused by the lack
of surface water available for irrigation.6 Members of the McMullin Recharge Group
include James Irrigation District, Mid-Valley Water District, Raisin City Water District,
Kings River Conservation District (KRCD), and Terranova Ranch, Inc.7 The McMullin
Recharge Project (MRP) proposed by the MRG, uses private farm lands in Fresno County
and along the James Bypass to capture flood flows from the Kings River for groundwater
recharge and downstream flood risk reduction.
The MRP is being completed in various phases and implemented by the Kings River
Conservation District. Phase 1, funded under a Department of Water Resources
Proposition 84 grant, with matching funds from Terranova Ranch, will develop the
conveyance facility, on-farm infrastructure, and management practices to divert 150
cubic feet per second (CFS) at the James Bypass for recharge during periods when flood
flows occur. The proposed project includes diverting and capturing Kings River
floodwater flows onto agricultural lands adjacent to the Kings River, which would allow
for the recharge groundwater and increased soil moisture. A review of the California
Natural Resources Agency website indicates that construction of Phase 1 of the project
is on schedule (as of August 13, 2015) with the shown estimate completion date of June
1, 2017.8
5 See Appendix C – RCWD’s comments to Draft MSR- Response Two
6 Groundwater Management in the Kings River Region- A comprehensive and Coordinated Effort,
http://www.centralvalleywater.org/_pdf/groundwater_management_brochure_2004.pdf
7 Groundwater Management in the Kings River Region- A comprehensive and Coordinated Effort,
http://www.centralvalleywater.org/_pdf/groundwater_management_brochure_2004.pdf
8 California Natural Resources Agency, Bond Accountability. McMullin On-farm Flood Capture and Recharge Project,
reference number 3860-P1E-467,
http://bondaccountability.resources.ca.gov/Project.aspx?ProjectPK=8585&PropositionPK=5
Municipal Service Review Raisin City Water District
9
The Kings River Conservation District was the lead agency in developing the Master Plan
for the Project, however the District is the lead agency in sponsoring the funding for the
construction and management of the McMullin On-Farm Flood Capture Project Phase 2
Expansion.9 Phase 2 expands the recharge area to the east by 4,350 acres and increases
the diversion capacity to 300 CFS, doubling the recharge capacity of the project. The
cost of the Phase 2 expansion is expected to be funded through available State grants.10
A Groundwater Recharge Feasibility Study (Study) funded by California Department of
Water Resources through the Local Groundwater Assistance Grant Program (AB 303)
was completed by the District in August, 2012.11 The purpose of the Study was to
identify the available land, water, and conveyance structures, and to determine
methods to replenish the groundwater supply through recharge projects. The Study
consisted of eight major tasks ranging from data collection and analysis, field
investigation, simulation of potential recharge projects, and project management.
The Study evaluated four sites for recharge operations: one 80-acre site located within
the District’s service area, one within the Fresno Irrigation District (FID) boundaries, and
two locations within the Consolidated Irrigation District (CID) boundaries at the
boundary alignments with the District.
The 80-acre site is composed of four parcel lots located on the northeast corner of
Chateau Fresno Avenue and Manning Avenue, in Fresno County. The Study determined
that the 80-acre site presented three challenges. First, there were no existing canals
that can deliver water to the site and infrastructure would need to be constructed to
convey water to and from the site. Existing water conveyance system are remote for
the site. Second, the neighboring landowners were in favor of the project but did not
want to have canals running through their farmlands. The third challenge was that the
site is located outside of the Kings River Water Association (KRWA) service area and
would have to rely on short-term contracts for water from Kings River, or other sources
of water. The Study ultimately determined that though the 80-acre site was a suitable
recharge site, it was nonetheless infeasible due to its distant location from an existing
water conveyance network such as CID and/or FID water systems.
The Study then examined an FID recharge pond located between McMullin Grade and
Lincoln Avenue and between Highway 145 and Jameson Avenue. The pond is
approximately 60-acres in size and has flood easement rights to the surrounding 1,600
acres. The site has access from McMullin Grade along a canal connecting the pond and
James Irrigation District's McMullin Grade canal. The source of water comes from FID's
9 See Appendix C – RCWD’s comments to Draft MSR- Response Three
10 Ibid, Response Four
11 KBWA, Implementation Grant Attachments, 3g RCWD Groundwater Recharge Feasibility Study
http://www.water.ca.gov/irwm/grants/docs/Archives/Prop84/Submitted_Applications/P84_Round2_Implementation
/Upper%20Kings%20Basin%20IRWM%20Authority%20(201312340022)/Attachment%203.%20(cont)%20-
%20Att3_IG2_WorkPlan_2of3.pdf
Municipal Service Review Raisin City Water District
10
Lower Dry Creek Canal, with a capacity of approximately 100 CFS. The surrounding
lands are currently being farmed and are available for the spreading of flood water
under FID's flood easement. The existing pond could be expanded up to 80-acres for
surface water retention and groundwater recharge and banking.
The Study also examined two locations within the CID boundaries. The first site is the
Goldie Pond which is owned and operated by CID and located on Marks Avenue, north
of Manning Avenue, in Fresno County. The pond is currently used for groundwater
recharge and is approximately 40 acres in size. It is connected to the CID’s Wristen Ditch
which has a head gate capacity of 100 CFS. The canal has a capacity of 45 CFS, and feeds
Goldie Pond through a pipeline. Canal and pipeline improvements are needed to
increase capacity to 50 CFS into the recharge pond and the pond would require
improvements as well. Goldie Pond has the potential to recharge surface water from
the Kings River and other sources. The site has street access along Marks Avenue for
site drilling and soil testing.
The second location within the CID boundaries is Marks Pond. The Marks Pond location
is owned and operated by CID and is located south of Flora Avenue and west of Marks
Avenue, in Fresno County. The pond is currently used for groundwater recharge and is
approximately 40-acres in size. Marks Pond receives surface water from the Kings River
via two canals during flood events: Wristen Ditch with a capacity of 45 CFS from the
north, and a second canal with approximately 40 – 50 CFS from the south. Marks pond
does not have direct street access, and drilling rigs approaching from Flora Avenue may
find access difficult. Access from Marks Avenue may be possible, but the canal bank is
steeper on the east. The existing pond would require additional improvements.
FID and CID operate extensive canal systems that carry water from Friant-Kern Canal
and Kings River to their respective service areas. The existing canals can be used to
convey water for the proposed recharge sites within the FID and CID service areas with
minimum canal improvements. The Study determined that enhancements to some of
the existing FID and CID canals would be needed in order to deliver higher volumes of
recharge water to the FID recharge site and the two CID recharge sites. A surface water
conveyance system to connect the RCWD’s 80-acre site to the existing water FID or CID
distribution systems were not considered economical and thus were not actively
pursued by the RCWD.
Municipal Service Review Raisin City Water District
11
Figure 2: Areas Studied in the 2012 Groundwater Recharge Feasibility Study.
Map obtained from RCWD Feasibility Study Report.
Municipal Service Review Raisin City Water District
12
According to Fresno County Assessor’s data, the District purchased the four parcels
between years 1961-76. Fresno LAFCo’s 1975 SOI report for the District boundaries
states that these lands were purchased by the District to be used as a percolation pond.
The Study evaluated the same site for a potential groundwater recharge basin. On
March 9, 2015, Fresno LAFCo staff verified that these parcels (APN: 03508003T, 04T,
58T, and 59T) are listed by the Fresno County Assessor as owned by the District with no
indication of any improvements. The District informed Fresno LAFCo that although a
water recharge Study was conducted for this site, the board is contemplating in selling
the 80 acre site.
The District’s 2007 MSR noted that “the District planned to construct underground
water storage basins and related infrastructure and pipelines to convey water to the
District. Construction of facilities depends on State grants and loans available to the
District. It is currently unknown when the State will have funds available to fund this
program.”12 Fresno LAFCo observes that the District will continue to rely on ongoing
grant funding; and, will need to secure additional state grant funding for the second and
third phases of the McMullin On-Farm Flood Capture Project.
The District’s 2007 MSR states – “The current [land] assessment is inadequate to finance
the construction of facilities. Actual construction of facilities and infrastructure is
anticipated to come from a combination of grants and loans from the State, with debt
service paid by the landowners.”13
MID-VALLEY CANAL PROJECT AND THE MID-VALLEY WATER
AUTHORITY
In 1975, Fresno LAFCo prepared a Sphere of Influence report for Regional Special
Districts – California Water and Irrigation Districts. The report observed that the District
was formed in 1962 for the purpose of submitting an application to the U.S. Bureau of
Reclamation for water entitlements to be delivered by the proposed East Side Division
of the Central Valley Project (CVP). Ultimately, the District was formed prior to the
completion of the Bureau’s plans to develop the East Side Division of the CVP, which by
that time was removed from the Bureau’s plans. The District then applied for surface
water entitlements from the proposed Mid-Valley Canal project. This project proposed
to deliver water via a canal system that would run laterally across Fresno County from
the vicinity of City of Mendota to a point on the Kings River near the City of Kingsburg.
It was planned that the proposed canal system would run through the central part of
the District.
12 Fresno LAFCo, August 2007. Raisin City Water District Municipal Service Review page 5.8-2.
13 Fresno LAFCo, August 2007. Raisin City Water District Municipal Service Review page 5.8-4.
Municipal Service Review Raisin City Water District
13
The 1975 Fresno LAFCo report recommended if construction of the Mid-Valley Canal did
not materialize for whatever reason, or if another source of irrigation water does not
become available enabling the District to provide irrigation water, that the Fresno LAFCo
should consider the dissolution of the District.
In 1983, the District joined the Mid-Valley Water Authority, whose purpose, among
other things, was to develop and maintain efforts on the Mid-Valley Canal (Project) and
to seek and secure water supplies. The project would have provided both a source of
surface water for the District and an opportunity for the District to utilize the Manning
Avenue property as a recharge basin. Unfortunately, sources of water and funding for
the project proposal never materialized. As a result in 2014, the Mid-Valley Water
Authority was dissolved. As such, the District informed Fresno LAFCO that it will not use
the 80-acre site for groundwater recharge. As of August 2015, the District believes that
the best use of this District resource is to sell the property and use the proceeds to fund
other District groundwater recharge projects.
DISTRICT ACTION PLAN
Landowner Assistance
According to the District, one of the most important services that it can provide to its
landowners is assistance in the development of conditions within the District’s
jurisdiction and relative to its position on the Lower Kings Basin that will enable local
farmers to continue farming operations under the proposed SGMA GSP.
During the preparation of the 2015 MSR, the District informed Fresno LAFCo that it is
investigating additional resources for groundwater recharge to benefit District
landowners. California is currently experiencing severe drought conditions with limited
water availability; however, the District states that opportunities to acquire surplus
water may occur in years with higher precipitation. The District will seek opportunities
to partner with other water districts in the Lower Kings Basin to acquire water for
recharge. The District has expressed that its geographic location is such that the more
water that the District is able to recharge within its service area, the easier it will be to
create a workable GSP under SGMA.
Landowner Representation
The District plans to represent its landowners by participating in partnerships with other
Kings Basin water agencies. The District states that it recently joined the Upper Kings
Basin Integrated Regional Water Management Authority (commonly known as the Kings
Basin Water Authority (KBWA)). The KBWA is an entity of nearly sixty public, private
and non-governmental organizations that have joined together to prepare an Integrated
Regional Water Management Plan to help protect and improve water resources within
the region. The District’s board of directors regularly meets with other Kings Basin
water agencies and water professionals to confer about local water policies. The
Municipal Service Review Raisin City Water District
14
District’s membership with KBWA provides opportunities to explore new developments
that benefit its landowners. According to the District, the KBWA working groups help
administer various state-mandated agricultural water programs.
It is imperative to the District that it fulfill its role in the implementation of SGMA by
being actively involved in the SGMA process, developing and constructing groundwater
recharge facilities, securing sources of water, and capturing floodwater to fill the
planned recharge facilities, activities that will take a long period of time. The District
states that it is focusing on continuous commitment to bring such benefits to the Raisin
City area. These activities are vital to the success of implementing a workable GSP in
the District and the Lower Kings Basin.
Local Landowner Programs
In preparation of this MSR, the District became aware that some of its residents,
landowners, and concerned citizens do not understand what the District’s purpose is, or
what it does. The District recently began a special outreach education program for the
benefit of these residents, landowners, and concerned citizens. The District informed
Fresno LAFCo that it has prepared an information pamphlet, available in English and
Spanish, which explains why the District was formed and its day-to-day operation. The
pamphlet provides the District’s background, states the services that District provides,
clarifies that the District does not provide general municipal services, and also provides
a lists of contact information for County departments that provide assistance with
services in the unincorporated community of Raisin City.
The District states that it will build a website to provide District information that will be
accessible to the public. The District plans to post District information, notices of board
meetings, board agendas, audited financial statements, and meeting minutes. The
District intends to provide additional SGMA related information and other agricultural
water legislation updates on the District’s website.
As of August 15, 2015, the District informed Fresno LAFCo that it launched an outreach
program within the District’s service area with local landowners and farmers. The first
landowner meeting was held on August 5, 2015, and it included an informative
presentation regarding the new state’s water legislation known as SGMA. The District
anticipates hosting a second community meeting outside of its current service area, but
within its SOI to engage landowner interest in District annexations. The District
informed Fresno LAFCo that it plans to pursue annexation of land west of its existing
service area in order to increase landowner representation at the GSA.
Annexation of territory
As of August 2015, the District informed Fresno LAFCo that it is evaluating potential
annexation opportunities for lands currently outside its service area. The District’s
service area consists of 51,719 acres; total acreage within the District’s SOI amounts to
approximately 80,125 acres. There are approximately 28,406 acres of land within the
Municipal Service Review Raisin City Water District
15
District’s SOI eligible for future annexation. Land available for annexation is generally
north and west of the existing service area.
It is Fresno LAFCo’s observation that areas located outside of any local agency’s service
area will be represented by the County as SGMA is implemented. The District intends to
annex land into its service area so that landowners could be represented by the District
once the implementation of SGMA occurs circa June 2017.14
During the preparation of this MSR, the District expressed interest in annexing land to
the District due to the potential groundwater overdraft issues occurring on properties
west of the District's service area boundaries. The District did not provide an
annexation timeline; however, an annexation program, in Fresno LAFCo’s opinion would
help the District develop policies and actions that will fulfill the District’s growth plans.
The District’s long-range concept of developing groundwater recharge facilities could be
expanded to benefit of the areas west of Raisin City to abut Fresno Slough Water District
and Mid Valley Water District. As envisioned by the District, this plan would direct
access to the Fresno Slough and provide additional opportunities for the District to
capture Kings River flood water releases for the purposes of groundwater recharge and
downstream flood control.
LAND USE AND THE FRESNO COUNTY GENERAL PLAN
The County of Fresno is the land use authority for territory within the District’s SOI and
service area and the Fresno County General Plan Land Use Element designates these
territories for agricultural uses. The District’s service area consists of a combination of
large and small farming operations that generally host permanent row crops and annual
row crops. Farm operations within the District generally include vineyards, almonds,
alfalfa, dairy farms, poultry farms and various row crops.
The unincorporated community of Raisin City is located within the District’s service area
boundaries. The community is located near the intersection of W. Bowles Avenue and
S. Ormus Avenue and contains the majority of the rural residential homes and small
commercial establishments located within the District service area. The U.S. Census
Bureau recognizes the unincorporated community of Raisin City as a census-designated
place (CDP) located within central Fresno County. The community has a population of
approximately 380, a housing stock of 85 housing units, and a vacancy of 13 units. Of
the 72 occupied housing units, 24 housing units were owner-occupied and the
remaining 48 housing units were renter occupied as of February 2015.15
14 See Appendix C – RCWD’s comments to Draft MSR- Response Five
15 U.S. Census- Profile of General Population and Housing Characteristics: 2010, Raisin City CDP California Web:
http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml#none Accessed: February 25, 2015
Municipal Service Review Raisin City Water District
16
The unincorporated community of Raisin City is served with street lighting, recreation
park maintenance, and domestic water services by County Service Area No. 43 (Raisin
City). The CSA is a dependent local agency governed by the Fresno County Board of
Supervisors. The Fresno County Department of Public Works maintains the community
water system and contracts with PG&E to provide street lighting services. The service
area for CSA No. 43 is largely built out and population growth is limited. Because the
unincorporated community of Raisin City has historically experienced slow growth, it’s
anticipated that CSA No. 43 (Raisin City) would continue to provide municipal services to
residents in the community.
DISADVANTAGED UNINCORPORATED COMMUNITIES
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH)
requires Fresno LAFCo to make determinations regarding "disadvantaged
unincorporated communities" ("DUCs") when considering a change of organization,
reorganization, SOI expansion, and when conducting municipal service reviews.
For any updates to a SOI of a local agency (city or special district) that provides public
facilities or services related to sewer, municipal and industrial water, or structural fire
protection, the Commission shall consider and prepare written determinations
regarding the present and planned capacity of public facilities and adequacy of public
services, and infrastructure needs or deficiencies for any disadvantaged unincorporated
community within of contiguous to the SOI of a city or special district.16
Government Code sec. 56033.5 defines a DUC as: i) all or a portion of a “disadvantaged
community” as defined by sec. 79505.5 of the Water Code (territory with an annual
median household income (MHI) that is less than 80 percent of the statewide annual
median household income17 and as defined in Government Code sec. 56046 and Water
Code sec. 79505.5); and as ii) “inhabited territory (12 or more registered voters), as
defined by sec. 56046, or as determined by commission policy. Fresno LAFCo policy
further refines a DUC as having at least 15 dwelling units at a density not less than one
unit per acre.
This MSR uses U.S. Census information to quantify the economic composition of all the
census block groups within and the vicinity of the District’s boundaries. Geographic
Information System (GIS) files were derived from the U.S. Census Bureau's American
Community Survey (ACS) compiled for the five-year period 2006-2010 to identify the
demographic composition for the geographies within the agency’s boundaries.
Although the ACS provides annual and three-year estimates, the five-year reports
between years 2006-2010 provide more precise data and mapping information for
16 Government Codes section 56425(e) 5, Present and Probable need; disadvantaged unincorporated communities
17 The statewide MHI reported for years 2006 through 2010 was $60,883, the DUC MHI threshold is therefore a
reported MHI that is less than $48,706.
Municipal Service Review Raisin City Water District
17
analyzing small populations. The five-year reports are the most reliable form of
information generated by the U.S. Census.18
The census block group is a geographical unit used by the U.S. Census Bureau to sample
data which is only collected from a fraction of all households within the census
geographic unit. On average, census block groups have a population of 600 to 3,000
people, and provide the number of households, population, and MHI data for those
residents residing within the geographic unit.
A review of the ACS five-year estimated for years 2006 through 2010 ACS was
conducted by Fresno LAFCo to provide a description of the demographic composition
within the District boundaries. The District is located in the unincorporated portions of
Fresno County generally within- US census tracts 39, 75, and 76. California’s statewide
MHI reported for years 2006 through 2010 was $60,883. The DUC threshold for any
geographic area is a MHI that is less than $48,706.19
The five-year estimates indicate that census tract 39 had a MHI of $37,877, census tract
75 had a MHI of $44,398, and census tract 76 had a MHI of $38,281. Based on these
census datasets, the MHI for the census tracts within the District boundaries are
consistent with the standard definition established for Disadvantaged Communities.
The District informed Fresno LAFCo staff that it does not own public facilities that would
present a direct benefit to a potential DUC. Fresno LAFCo designates the District as a
non-municipal local agency that does not provide municipal services that facilitate,
support, or induce population growth. The District does not provide services related to
public sewer, municipal and industrial water, or structural fire protection that would
present opportunity to extend services to a DUC.
SUSTAINABLE GROUNDWATER MANAGEMENT ACT - PRESENT AND
PLANNED CAPACITY OF PUBLIC FACILITIES
As mentioned above, the District informed Fresno LAFCo staff that it is taking an active
role in the implementation of SGMA in order to maintain local control of groundwater
management decisions. The District expressed to Fresno LAFCo that it is in place to
represent landowners within the District. The District primary interest is to assist
landowners to continue farming operations at successful and economical levels
throughout the implementation of SGMA.20 The District expressed interest in annexing
land within its current SOI due to the potential groundwater overdraft issues occurring
in properties west of the District service area.
18 US Census Bureau, http://www.census.gov/acs/www/guidance_for_data_users/estimates/
19 California Water Code 79505.5.
20 See Appendix C – RCWD’s comments to Draft MSR- Response Six and Seven
Municipal Service Review Raisin City Water District
18
Through the MSR preparation Fresno LAFCo made several observations of the District
services. Under state statute, this District has power to acquire, plan, construct,
maintain, improve, operate, and keep in repair the necessary works for the production,
storage, transmission, and distribution of water for irrigation, domestic, industrial, and
municipal purposes, and any drainage or reclamation works connected with any such
projects. The District appears to historically have been engaged in planning efforts to
capture and identify groundwater recharge opportunities with limited success in
developing infrastructure. Fresno LAFCo could not evaluate tangible services to District
landowners in the preparation of this 2015 MSR. However, the District provided Fresno
LAFCo descriptions of intangible services it provides its landowners as described in the
District’s Action Plan earlier in this report.
The District also intends to develop infrastructure to help bring the areas into balance.
As indicated in the Description of the District of this MSR, the District plans to serve as a
median to protect farmers and landowners from being affected by SGMA. It is the
District’s opinion that the agency is positioned to protect and assist landowners to
maintain land values at profitable levels through the implementation of SGMA. The
District informed Fresno LAFCo that it serves approximately 700 landowners,
approximately 880 parcels of land, of which out of the 880 parcels approximately 450
parcels are engage in farming operation.
It appears that over the past 52 years the District has been challenged to fulfill its initial
formation purpose to secure a source of surface water. Nevertheless, the District has
focused its services to represent landowners, advocate water rights, and study and
conduct plan studies in pursuit of groundwater recharge projects that will fulfill the
SGMA goal of balancing the groundwater. The District informed Fresno LAFCo that it
focuses its services by the following criteria: 1) Ongoing active participation of the
District in the implementation of SGMA and the administration of water policy in the
Lower Kings Basin; 2) The success of the District in achieving its goal of developing
multiple groundwater recharge facilities within the District; and 3) The District achieving
a reduction in the amount of groundwater overdraft within the District.
DISTRICT ADMINISTRATION
During the preparation of the 2015 MSR, the District reorganized its administrative
management. As of August, 2015, the District informed Fresno LAFCo that Heintz
Business Management, Inc. has been contracted to manage the District’s administrative
and financial functions.
Municipal Service Review Raisin City Water District
19
DISTRICT FINANCES
The District is primarily financed by annual property assessments charged to all
landowners within the District. The 2007 MSR for the District indicates that agency
collects an annual land assessment of $0.75 per acre for over the past 25 years.
According to Board of Directors’ agenda records provided to Fresno LAFCo by the
District, during its October 3, 2014, the Board took action to set land assessments at
$2.00 minimum for properties under an acre. According to the District, annual land
assessments are collected by the District and are used to provide some direct services,21
and other services through cooperative agreements with other local agencies. The
District uses funding from land assessments to administer District operations, fund the
development of future District recharge projects, conduct groundwater studies, and
advocate and represent landowners within the District. The District does not presently
charge fees for any of these services.
Based on information gathered by Fresno LAFCo staff, the current land assessments
collected by the District appear to be inadequate to finance the planned construction
and operation of canals necessary to convey water delivery services as presented by the
2012 feasibility study. This statement is supported by Fresno LAFCo’s 2007 MSR
evaluation of the District financial abilities.22 Actual construction of planned future
infrastructure is anticipated to come from a combination of state grants and loans, with
debt service primarily paid by landowners within the District. State funding, if available,
would be on a competitive basis with many other agencies applying for the same
available grant resources.23
The District board adopts an annual budget each year that projects the cost for District
operations for the coming year. The District adopted budget for FY 2014-15 shows a
total of $38,550. The District estimates its largest expenses to be allocated towards the
following services: $8,750 for district administration, $5,300 for legal counsel, $5,000 for
insurance expenses, $4,250 for District audits, $3,200 for repairs and maintenance, and
$2,600 for engineering services.
21 See Appendix C – RCWD’s comments to Draft MSR- Response Eight
22 Fresno Local Agency Formation Commission, RCWD MSR. August 22, 2007. page 5.8-4
23 See Appendix C – RCWD’s comments to Draft MSR- Response Nine
Municipal Service Review Raisin City Water District
20
Table 1- Raisin City Water District Budget 2014-2015
Advertising $1,500
Association Fees $1,100
Director’s Fees $2,000
Dues $2,500
Engineering $2,600
Insurance $5,000
Office Supplies $1,500
Administration $8,750
Legal $5,300
Audit $4,250
Telephone $850
$3,200
Repairs & Maintenance
Total Budget $38,550
The District informed Fresno LAFCo that services provided to landowners includes:
1. Advocacy for, and information to, landowners within the District regarding
statewide water policy, new legislation, and other issues affecting agricultural
irrigation;
2. Participation in the implementation of the State Sustainable Groundwater
Management Act on behalf of landowners within the District;
3. The District, is seeking funding for the McMullin On-Farm Flood Capture & Recharge
Project Phase 2 Expansion. This project may rely, in part, on the District securing
available grant funding;24
4. Exploration of opportunities to develop other District based groundwater recharge
facilities;
5. Exploration of opportunities to develop additional sources of water to use in the
District’s planned groundwater recharge facilities;25
6. The District provides representation of its landowners in the administration of water
policy within the greater Kings Basin;
7. The District provides outreach to District landowners about agricultural irrigation
issues
24 See Appendix C – RCWD’s comments to Draft MSR- Response 10
25 Ibid. Response 11
Municipal Service Review Raisin City Water District
21
The budget information shared with Fresno LAFCo provides assistance to generate a
description of the District’s expenditures, although the District appears to focus its
existing resources to represent landowners, advocate water rights, and study and
conduct plan studies for groundwater recharge projects.
Through the MSR process, Fresno LAFCo observes that the District primarily provides
intangible services; these are services that are not physically measurable. The District
provides landowner representation among other local agencies involved with the
organization and implementation of SGMA in the Lower Kings Groundwater Basin. The
District informed Fresno LAFCo that its existing land assessments and revenues
generated by the District up to date have been sufficient to cover the District’s
operating costs for these services. The District states that it may need to impose fees,
increase assessments, or receive some other source of revenue at such time as the
District expands its services. Land assessments would be adjusted to the District costs
of such services. District informed Fresno LAFCo that it does not have any outstanding
debt.
Two auditor reports were provided by the District to present the District’s basic financial
statements for fiscal years ending June 30, 2013, and June 30, 2014. These two auditor
reports are included in their entirety as Appendix A and B of this MSR.
The financial statements observe that the District is using accounting methods similar to
those used by the private sector companies. These statements offer short- and long-
term information about the District’s activities. The Statement of Net Position includes
all of the District’s assets and liabilities and provides information on the nature and
amounts of investments in resources (assets) and the obligations to the District’s
creditors (liabilities). It also provides the basis for evaluating the capital structures of
the District and assessing the liquidity and financial flexibility of the District.
All of the year’s revenues and expenses are accounted for in the Statement of Revenues,
Expenses and Changes in Net Position. This statement can be used to determine if the
District has successfully recovered all of its costs through its user fees and other charges,
its profitability, and its credit worthiness.
The final financial statement is the Statement of Cash Flow, reporting cash receipts,
payments, and net charges in cash resulting in operations, financing, and investing
activities and responds to such questions as where did the cash come from, what was
the cash used for, and what was the change in the cash balance during the reporting
period.
Net Position
A comparison of the Statement of Net Position can determine the change in the
components of financial position (the assets and liabilities) of the District from year-end
Municipal Service Review Raisin City Water District
22
to year-end. These comparisons are presented in tables one for 2013-12 and table two
for 2014-13 below.
Table 2 – Condensed Statement of Net Position – June 30, 2013 and 2012
2013 2012 Dollar Percent
Change Change
Current Assets $693,193 $711,019 $(17,826) -2.51%
Capital Assets $39,700 $39,700 - 0.00%
Total Assets $732,893 $750,719 $(17,826) -2.37%
Current Liabilities
Total Liabilities $32,989 $69,530 ($36,541) -52.55%
Unrestrictive Assets $660,204 $641,489 $18,715 2.92%
Investment Capital
$39,700 $39,700 - 0.00%
Assets
Total Net Position $699,904 $681,189 $18,715 2.75%
Table 3 – Condensed Statement of Net Position – June 30, 2014 and 2013
2014 2013 Dollar Percent
Change Change
Current Assets $677,315 $693,193 $(15,878) -2.29%
Capital Assets $39,700 $39,700 - 0.00%
Total Assets $717,015 $732,893 $(158,878) -2.17%
Current Liabilities
Total Liabilities $65 $32,989 ($32,924) -99.80%
Unrestrictive Assets $677,250 $660,204 $17,046 2.58%
Investment Capital
$39,700 $39,700 - 0.00%
Assets
Total Net Position $716,950 $699,904 $17,046 2.44%
Revenues, Expenses and Changes in Net Position
A comparison of the statement of Revenues, Expenses and Changes in Net Position each
year will explain the changes in financial position that resulted from the operating
activities during the year. This comparison is presented in the table below.
Municipal Service Review Raisin City Water District
23
Table 4- Condensed Statement of Revenues, Expenses, and Changes in Net Position for
the Year June 30, 2013 and 2012
2013 2012 Dollar Percent
Change Change
Operating Revenues
$37,225 $40,549 $(3,324) -8.20%
Operating Expenses $32,415 $217,191 (184,776) -85.08%
Operating Income
$4,810 $(176,642) $181,452 -102.72%
(Loss)
Non-Operating
$13,905 $196,388 $(182,483) -92.92%
Revenues
Change in Net
$18,715 $19,746 $(1,031) -5.22%
Position
Net Position-
$681,189 $661,443 $19,746 2.99%
Beginning of Year
Net Position – End of
$699,904 $681,189 $18,715 2.75%
Year
Table 5- Condensed Statement of Revenues, Expenses, and Changes in Net Position for
the Year June 30, 2014 and 2013
Percent
Dollar
2014 2013 Change
Change
Operating Revenues
$38,624 $37,225 $1,399 3.76%
Operating Expenses $49,446 $32,415 $17,031 52.54%
Operating Income
$(10,822) $4,810 $(15,632) -324.99%
(Loss)
Non-Operating
$27,868 $13,905 $13,693 100.42%
Revenues
Change in Net
$17,046 $18,715 $(1,669) -8.92%
Position
Net Position-
$699,904 $681,189 18,715 2.75%
Beginning of Year
Net Position – End of
$716,950 $699,904 $17,046 2.44%
Year
Municipal Service Review Raisin City Water District
24
For auditor report ending on June 30, 2013, it’s noted that – as of June 30, 2013, the
carrying amount of the District’s cash deposits in noninterest bearing accounts was
$209,324 and the bank balance was $210,056. The difference between the bank
balance and the carrying amount represents outstanding checks and deposit transit. The
June 2013 carrying amount and bank balance of the District’s cash deposits in the bank
certificate of deposit accounts was $434,151.
For auditor report ending on June 30, 2014, it’s noted that – as of June 30, 2014, the
carrying amount of the District’s cash deposits in noninterest bearing accounts was
$230,903 and the bank balance was $232,657. The difference between the bank
balance and the carrying amount represents outstanding checks and deposit transit. The
June 2014 carrying amount and bank balance of the District’s cash deposits in the bank
certificate of deposit accounts was $437,302.
Fresno LAFCo notes that in both audit reports provided for year ending on June 30, 2013
and year ending on June 30, 2014, concluding notes under the District related party
transactions states:
During the year [ending on June 30, 2013], the District paid $10,048 for clerical
service to a family member of a District Board of Directors.
During the year [ending on June 30, 2014], the District paid $7,860 for clerical
services to a family member of a District Board of Directors.
On August 18, 2015, Fresno LAFCo staff contacted the independent auditor that
authored the audit reports to clarify the ending notes listed in the District’s related
party transactions statement. The auditor stated that for several years District clerical
services were provided by the spouse of a former board of director of the District. It is
understood that this party was compensated for the work. In the process of preparing
this MSR the District secretary resigned for unknown reasons. The District informed
Fresno LAFCo that the former Director left the Board in 2013, while the Secretary
continued to work for the District until April of 2015. It is unknown how long the District
was engaged in this practice of employing immediate family members.26
The auditor stated that throughout the preparation of both the 2013 and 2014 audit
reports, the auditor did not notice a potential conflict of interest as it relates to the
spouse of a former board of director serving the as the District’s secretary.27 During
Fresno LAFCo’s review of the District’s 1995 bylaws, the District office was operated
from a residential property located at 10465 South Westlawn Avenue, Fresno, Ca 93706.
A verification of the property ownership for the District office location indicates that this
26 See Appendix C – RCWD’s comments to Draft MSR- Response 12
27 Fresno LAFCo Staff Telephone Conversation with Auditor- August 18, 2015
Municipal Service Review Raisin City Water District
25
location has a Joint Tenancy Grant Deed granted for the two individual in subject dating
from April 21, 1967.
The auditor stated that it was his experience that remote special districts similar to
RCWD have a limited pool of potential employees available to operate the District’s
operations and frequently rely on family members to fulfill District responsibilities. In
this case, the auditor believed that the marital status of the District employee to a Board
member appeared to be common knowledge given that the entire District board signed
off the pay checks made to the former Secretary. However, it is not known if this
relationship was known by the general population within the District service area.28
As of June 2015, the District entered into contract for its administrative management
and new office location with a Heintz Business Management located at 1100 W. Shaw
Avenue, Suite 148, Fresno, Ca 93711. Since the potential conflict of interest was
discovered, several members of the Board of Directors have changed. The District has
since demonstrated efforts to become much more transparent to the landowners and
residents of the District.29
INFRASTRUCTURE
Figure three, RCWD Vicinity map illustrates local agencies within the vicinity of the
District that could present opportunities for shared facilities in the form of mutual
agreement for shared infrastructure. These agencies could include:
Fresno Irrigation District to the north;
Consolidated Irrigation District to the east;
Liberty Water District to the southeast;
Stinson Water District to the southwest;
James Irrigation District to the west; and
Mid-Valley Water District to the northwest.
28 Public Comments made at Fresno LAFCo June 3, 2015 hearing
29 See Appendix C – RCWD’s comments to Draft MSR- Response 12
Municipal Service Review Raisin City Water District
26
Figure 3: RCWD Vicinity Map
Municipal Service Review Raisin City Water District
27
At the time of preparing this MSR, the District did not indicate that it owns physical
infrastructure, it had no full-time employees, and had been previously operated from a
residential location. The District office was relocated by the board of directors
amending the District’s 1995 bylaws on August 11, 2015. The District appears to be
limited in opportunities for shared facilities at the present time, however the District
expressed to Fresno LAFCo that numerous opportunities for shared facilities could come
to fruition with neighboring districts.30 It is Fresno LAFCo’s observation that any
potential future opportunities for shared facilities are limited to the 80-acre site if the
land is not ultimately sold by the District.
It appears that California’s implementation of the SGMA legislation may present future
opportunities for shared facilities. It is noted in the Memorandum of Understanding for
the Lower Kings Groundwater Basin that the purposes of the agreement are for 1) to
facilitate a cooperative and ongoing working relationship between agencies that will
allow them to explore, study, evaluate and develop and implement mutually beneficial
approaches and strategies for implementing SGMA, and 2) to facilitate contracts with
other agencies within the Kings Basin. Opportunities for shared facilities are limited for
the District; No other opportunities are identified by Fresno LAFCo at this time.
DISTRICT ACCOUNTABILITY
Accountability for community service needs, including governmental structure options
and operational efficiencies are evaluated as part of the MSR Program to encourage the
current and future orderly formation of local government agencies, create logical
boundaries, and promote the efficiency delivery of services. This MSR is an
informational document that will be used by Fresno LAFCo, other local agencies, and the
general public to discuss future government structures for the District.
The District is clearly influenced by SGMA to revitalize its responsibilities and
operational activities. One of the indicators that Fresno LAFCo utilized to determine
accountability for community service needs, governmental structure, and operational
efficiencies is the agency’s level of transparency and its participation with the
Commission’s MSR program.
As mentioned above, California Water Code section 34000-38500 authorizes the
formation of Water Districts to acquire, plan, construct, maintain, improve, operate, and
keep in repair the necessary works for the production, storage, transmission, and
distribution of water for irrigation, domestic, industrial, and municipal purposes.31 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
30 See Appendix C – RCWD’s comments to Draft MSR- Response 13
31 California Water Code Section 35401
Municipal Service Review Raisin City Water District
28
supervisors). The District is a landowner-voter District which conducts its own elections
typically on odd years. Currently one board member is fulfilling a recent vacancy set to
expire in 2015; the interim term is scheduled for reelection for the fall 2015. Two
members of the board have terms that are set to expire in 2015, and the remaining two
are set to expire in 2017. Candidates for the District board must either hold title to land
within the District or be the legal representative of a title holder of land within the
District.
A body of five elected officials serves as the Board of Directors governing the District’s
operations. The District board has the ability to elect a president from its members and
appoint the agency’s secretary. During early stages of the MSR preparation, the District
appeared to experience deficiencies in record keeping which reflected the secretary’s
responsiveness to Fresno LAFCO’s requests for public information. The District informed
Fresno LAFCo it was undergoing an internal reorganization of its office administration.
The District informed Fresno LAFCo that it was in the process of transferring its general
administrative services to an independent business management company.
As of June 3, 2015, the District has demonstrated the following administrative activities:
The board took action to relocate the District office;
The board took action to relocate board meetings and frequency;
The board unanimously amendment its 1995 bylaws;
The District conducts public outreach and education meetings;
The District plans to conduct District elections;
The District will investigate its property lien policy;
The District plans to increase its interaction with other local agencies; and,
The District established a more professional structure for the administration of the
District. The District’s new administration management consultant has been tasked
with the organization of the District’s administrative record which includes updating
financial reports, organize District records, and assist the board of directors comply with
agency regulations, and assisting the District comply with its principal act and bylaws.
The District board took action to amend its 1995 bylaws to relocate its previous office
location from a residential property located at 10465 South Westlawn Avenue, Fresno,
Ca 93706 to a new publicly accessible location at 1100 W. Shaw Avenue, Fresno, Ca
93711. The office location is located at the administration consult’s office and is open to
the public during weekly regular business hours. District board meetings were also
amended. The board previously held one regular meeting on the third Tuesday in the
month of June at the previous district office. The District now holds its board meetings
at Raisin City Elementary School, located at 6425 West Bowles, Raisin City, Ca 93652 on
the second Tuesday of each month at 3:00 p.m. The District posts agendas and meeting
information at least 72 hours before a regular meeting. Opportunities for the public to
Municipal Service Review Raisin City Water District
29
address the board of directors are provided during the allotted time for public
comments in each meeting agenda.
As previously noted, the District board of directors amended its 1995 bylaws by
adopting a resolution at its August 11, 2015 meeting. The District’s bylaw amendment
came to light as a result of early inefficiencies observed through the early stages of
Fresno LAFCo Draft MSR. The District has improved its staffing and administration its
operation and has also amended its bylaws to address Fresno LAFCo’s concerns.
The District plans to conduct its biennial elections fall of 2015. The Board decided to
delay the planned elections date of October 27, 2015, to provide additional time for
public notice and community participation in the election process. The District plans to
mail bilingual notices to all landowners that reside within the District.
The District is planning to embark a full review of its practice to file liens on properties
with delinquent assessments. During the 2015 MSR preparation it became apparent
that community residents were unaware of how the District used funds collected from
annual land assessments. The District informed Fresno LAFCo that it plans to review its
practice and investigate whether liens were properly released after the unpaid
assessments were subsequently paid. The District informed Fresno LAFCo that the
board is currently evaluating its policies and processes for assessment charges for
parcels within the District where the assessments amount is minimal,32 for example
parcels whose assessment charge fall below a certain threshold level, such as $10.00
annually.
These smaller parcels are presumed to be primarily located in the community of Raisin
City, a Disadvantaged Unincorporated Community per Fresno LAFCo policy. The District
will evaluate its options, and if it’s legally possible it will consider exempting these
parcels from the District’s annual land assessment. The District expressed that
administrative costs to collect delinquent assessments or past fees for small parcels
often exceeds the actual revenue generated by the District.33
Through the MSR program, it appears that the District is attempting to improve its
interaction with its community and other local agencies. Fresno LAFCo observes that
the District plans to be a major stakeholder in the implementation of the SGMA. The
District has entered into an MOU with 18 agencies: Burrel Ditch Company, Clark’s Fork
Reclamation District, Crescent Canal Company, County of Fresno, Fresno Slough Water
District, James Irrigation District, Kings River Conservation District, Laguna Irrigation
District, Liberty Canal Company, Liberty Mill Race Company, Liberty Water District,
Raisin City Water District, Reclamation District #1606, Reed Ditch Company, Riverdale
32 See Appendix C – RCWD’s comments to Draft MSR- Response 14
33 Ibid.
Municipal Service Review Raisin City Water District
30
Irrigation District, Stinson Canal & Irrigation Company, Stinson Water District, and Upper
San Jose Water Company, to implement SGMA in the lower Kings Groundwater Basin.
Other Districts that overlay or are adjacent to the Raisin City Water District include:
The West Fresno County Red Scale Protection District that provides pest control;
The Consolidated, Fresno and Fresno Westside Mosquito Abatement Districts
provide mosquito control and abatement services;
The Riverdale Memorial District formed to recognize and serve the veterans of
the area;
The Fresno County Library District provides library services;
The Fresno County and North Central Fire Protection District that provide
emergency medical and fire suppression services;
County Service Area No. 43 (Raisin City) that provides lighting, recreation and
water service to the Community of Raisin City;
The Kings River Conservation District for flood prevention and hydrological
power; and
The Washington Colony Cemetery District that provides for the internment of
human remains.
Municipal Service Review Raisin City Water District
31
2. MSR DETERMINATIONS
This portion of the report addresses the factors specified in the governing statute for
Municipal Service Reviews and provides analysis in conformance with Government Code
§56425 and Fresno LAFCo policy. Pursuant to Government Code §56430, the
Commission prepares the following written determinations.
1. GROWTH AND POPULATION PROJECTIONS FOR THE AFFECTED
AREA.
The District is designated as a non-municipal local agency, which means that the
District provides non-municipal services. Services provided by the District do not
facilitate, support, or induce population growth.
The District does not provide direct water services; however, the District has
been taking an active role in the implementation of California’s Sustainable
Groundwater Management Act (“SGMA”) in order to assist landowners in
continuing their farming operations at successful and economical levels
The District is evaluating potential annexation opportunities for lands currently
outside its service area.
The District is adequate in size considering that District growth has been
historically conservative.
The County of Fresno is the land use authority for territory within the District’s
boundaries. The Fresno County General Plan Land Use Elements designates
territories as agricultural use within the District’s boundaries. No significant
changes to population are anticipated.
2. THE LOCATION AND CHARACTERISTICS OF ANY DISADVANTAGED
UNINCORPORATED COMMUNITIES WITHIN OR CONTIGUOUS TO THE
SPHERE OF INFLUENCE.
A review of the American Communities Survey five-year estimates indicate that
the MHI for the census tracts and block groups within the District boundaries are
considered Disadvantaged Communities.
The District is designated by LAFCo policy as a level three non-municipal local
agency, meaning that the District is authorized to provide non-municipal
services.
The District has no public facilities or provides services related to sewer,
municipal and industrial water, or structural fire protection that would present
opportunity to extend services to a disadvantaged unincorporated community.
Municipal Service Review Raisin City Water District
32
3. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES AND
INFRASTRUCTURE NEEDS OR DEFICIENCIES.
The District entered into a Memorandum of Understanding for coordinating the
implementation of the SGMA in the Lower Kings Groundwater Basin.
The District expressed interest in annexing land to the District due to the
potential groundwater overdraft issues occurring in properties west of the
District service area.
Since the District’s formation in 1962, Fresno LAFCo records indicate that the
District owns no public facilities or physical infrastructure. No direct water
services to landowners are currently provided by the District.
The District has no existing surface water entitlements so farmers within the
District service area irrigate land by pumping groundwater.
District owns approximately 80-acres of undeveloped land located at the
northeast corner of Chateau Fresno Avenue and Manning Avenue, in Fresno
County. As of August 2015, the District informed Fresno LAFCo that it believes
that the best use of this District’s resource may be to sell the 80 acre property.
The District states that it is in place to be a vocal advocate and representative
agency on behalf of its landowners as this new legislation begins to be
implemented. The District informed Fresno LAFCo that it serves approximately
880 parcels of land, of which approximately 450 parcels are engaged in farming
operation.
4. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES.
The District is primarily financed by annual property assessments charged to all
landowners within the District.
Annual land assessments are collected by the District and are utilized to provide
some direct services. Other services are provided through cooperative
agreements with other local agencies. The District uses land assessment to
maintain the operation of the District, help fund the development of future
District recharge projects, conduct groundwater studies, represent and advocate
for landowners within the District.
The District does not presently charge fees for any of its provided services;
however, it historically has relied on the collection of land assessments and state
grant opportunities to fund its ongoing operation.
Municipal Service Review Raisin City Water District
33
Fresno LAFCo notes that the current land assessments collected by the District
appear to be inadequate to finance the planned construction and operation of
canals necessary to convey water delivery services as presented by the 2012
feasibility study. This statement is supported by LAFCo’s 2007 MSR evaluation of
the District financial abilities.
Fresno LAFCo observes that the District primarily provides intangible services;
these are services that are not physically measurable. The District provides
landowner representation among other local agencies involved with the
organization and implementation of SGMA in the Lower Kings Groundwater
Basin.
The District informed Fresno LAFCo that its existing land assessments and
revenues generated by the District up to date have been sufficient to cover the
District’s operating costs for these services.
The District states that it may need to impose fees, increase assessments, or
receive some other source of revenue at such time as the District expands its
services. Land assessments would be adjusted to the District costs of such
services. District informed LAFCo that it does not have any outstanding debt.
The District informed LAFCo that the board of directors currently is considering
establishing a policy to waive assessment charges for parcels within the District
whose charge falls below a certain threshold level, such as $10.00 annually.
These smaller parcels are presumed to be primarily located in the community of
Raising City. The District plans to evaluate its options, and if it’s legally possible it
will consider exempting these parcels from the billing of the District’s land
assessment.
5. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES.
The District appears to be limited in opportunities for shared facilities at the
present time. Any potential future opportunities for shared facilities are limited
to the 80-acre site if the land is not ultimately sold.
It is Fresno LAFCo observation that local agencies within the vicinity of RCWD
that could present opportunities for shared facilities in the form of mutual
agreement for shared infrastructure could include:
Fresno Irrigation District to the north;
Consolidated Irrigation District to the east;
Liberty Water District to the southeast;
Stinson Water District to the southwest;
James Irrigation District to the west,
Mid-Valley Water District to the northwest,
Municipal Service Review Raisin City Water District
34
Fresno LAFCo notes that the Memorandum of Understanding for the Lower Kings
Groundwater Basin that the purposes of the agreement are for 1) facilitate a
cooperative and ongoing working relationship between agencies that will allow
them to explore, study, evaluate and develop and implement mutually beneficial
approaches and strategies for implementing SGMA, 2) Facilitate contracts with
other agencies within the Kings Basin.
6. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING
GOVERNMENT STRUCTURE AND OPERATIONAL EFFICIENCIES.
California Water Code section 34000-38500 authorizes the formation of
Water Districts to acquire, plan, construct, maintain, improve, operate, and
keep in repair the necessary works for the production, storage, transmission,
and distribution of water for irrigation, domestic, industrial, and municipal
purposes.
The District informed Fresno LAFCo that it was in the process of transferring
its general administrative services to an independent business management
company. As of June 3, 2015, the District has demonstrated great progress in
its district administration. Recent District improvements are described
earlier in this MSR.
The District’s new administration management consultant has been tasked
with the organization of the District’s administrative record which includes
updating financial reports, organize District records, and assist the board of
directors comply with agency regulations, and assisting the District comply
with its principal act and bylaws.
On August 11, 2015, the District board took action to amend its 1995 bylaws.
The District moved its previous office location from a residential property
located at 10465 South Westlawn Avenue, Fresno, Ca 93706 to a new
publicly accessible location at 1100 W. Shaw Avenue, Fresno, Ca 93711.
District board meetings to be held at Raisin City Elementary School, located
at 6425 West Bowles, Raisin City, Ca 93652 on the second Tuesday of each
month at 3:00 p.m. Opportunities for the public to address the board of
directors are provided during the allotted time for public comments in each
meeting agenda.
The District’s bylaw amendment came to light as a result of early
inefficiencies identified by Fresno LAFCo Draft MSR. Being that the District
has made fast strides to improve its operation and has also amended its
Municipal Service Review Raisin City Water District
35
bylaws to address Fresno LAFCo’s concerns; Fresno LAFCo notes that District
has demonstrated great effort since the initiation of the MSR update.
Since April 2015, the District has made drastic communication
improvements. Since Fresno LAFCo’s June 3, 2015 hearing, the District
prepared educational information pamphlets and hosted community
meetings to educate the community on California Water District and SGMA.
Through the MSR program, it appears that the District is improving its
interaction with its community and other local agencies. Fresno LAFCo
observes that the District plans to be a major stakeholder in the
implementation of the SGMA.
7. ANY OTHER MATTER RELATED TO EFFECTIVE OR EFFICIENT
SERVICE DELIVERY, AS REQUIRED BY COMMISSION POLICY.
The District has been in existence since 1962 with no tangible form of
services provided by the agency.
The agency currently does not hold any surface water entitlement; however
the District strides to improve groundwater management within the Raisin
City area though developing mutual partnerships with neighboring Districts
within the Lower Kings Groundwater Basin.
Municipal Service Review Raisin City Water District
36
3. SPHERE OF INFLUENCE REVIEW AND UPDATE
In order to carry out the Commission’s purposes and responsibilities for planning and
shaping the logical and orderly development and coordination of local governmental
agencies subject to its jurisdiction, the Commission shall develop and determine the
sphere of influence of each city and each special district within the County and enact
policies designed to promote the logical and orderly development of areas within the
sphere. A sphere of Influence is defined as “a plan for the probable physical boundaries
and service area of a local agency, as determined by the commission.”
In determining the sphere of influence of each local agency, the commission shall
consider and prepare a written statement of its determinations with respect to each of
the following:
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;
5. For an update of a sphere of influence of a city or special district that provides
public facilities or services related to sewers, municipal and industrial water, or
structural fire protection, that occurs pursuant to subdivision (g) on or after July
1, 2012, the present and probable need for those public facilities and services of
any disadvantaged unincorporated communities within the existing sphere of
influence.
In determining a sphere of influence, the Commission may assess the feasibility of
governmental reorganization of particular agencies and recommend reorganization of
those agencies when reorganization is found to be feasible and if reorganization will
further the goals of orderly development and efficient and affordable service delivery.
The Commission shall make all reasonable efforts to ensure wide public dissemination of
the recommendations.
When adopting, amending, or updating a sphere of influence for a special district, the
Commission shall establish the nature, location, and extent of any functions or classes of
services provided by existing districts. The Commission may require existing districts to
Municipal Service Review Raisin City Water District
37
file written statements with the commission specifying the functions or classes of
services provided by those districts.
Chapter one of this MSR provides the foundation for the SOI determinations. As
previously indicated, the District’s boundaries and sphere of influence are not generally
coterminous; the SOI encompasses 80,125 acres and the service area encompasses
approximately 51,719 acres. The District reports its sphere and boundary is correct at
this time and no changes are requested. County of Fresno is the land use authority for
land located within the District’s service area. The Fresno County General Plan
designates the land within the District for Agricultural uses. In accordance with
Government Code Section 56066, Fresno is the principal county and Fresno LAFCO is
responsible for preparing the following determinations for the Sphere of Influence
include in this Municipal Service Review.
When Fresno LAFCO updates 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.
The District does not provide direct water services to its customers.
The District has been taking an active role in the implementation of California’s
Sustainable Groundwater Management Act (“SGMA”) and intends to participate
in the planning efforts of the Groundwater Sustainable Agency (GSA) on behalf
of its landowners in the District. The District intends to advocate and protect its
landowners’ interests as the Groundwater Sustainable Plan (GSP) is prepared by
the GSA.
The County of Fresno is the land use authority for territory within the District’s
boundaries. The Fresno County General Plan Land Use Elements designates
territories as agricultural use within the District’s boundaries. No significant
changes to population are anticipated.
2.PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND
SERVICES IN THE AREA.
The District states that it is in place to advocate and represent its landowners as
this new SGMA legislation is implemented.
The District informed Fresno LAFCo that it serves approximately 880 parcels of
land, of which approximately 450 parcels are engaged in farming operation.
Municipal Service Review Raisin City Water District
38
Since the District’s formation in 1962, Fresno LAFCo records indicate that the
District owns no public facilities or physical infrastructure. No direct water
services to landowners are currently being provided by the District.
The District has no existing surface water entitlements so farmers within the
District service area irrigate land by pumping groundwater. Fresno LAFCo
observes that the District currently provides intangible services; these are
services that are not physically measurable.
District owns approximately 80-acres of undeveloped land located at the
northeast corner of Chateau Fresno Avenue and Manning Avenue, in Fresno
County. As of August 2015, the District informed Fresno LAFCo that it believes
that the best use of this District’s resource may be to sell the 80 acre property.
District informed Fresno LAFCo that its existing land assessments and revenues
generated by the District up to date have been sufficient to cover the District’s
operating costs. In contrast, the District informed Fresno LAFCo that the board is
currently evaluating its policies and processes for assessment charges for parcels
within the District where the assessments amount is minimal,34 for example
parcels whose assessment charge fall below a certain threshold level, such as
$10.00 annually.
The District states that it may need to impose fees, increase assessments, or
receive some other source of revenue at such time as it expands its services.
District informed LAFCo that it does not have any outstanding debt.
3.PRESENT CAPACITY OF PUBLIC FACILITIES AND ADEQUACY OF
PUBLIC SERVICES THAT THE AGENCY PROVIDES OR IS AUTHORIZED TO
PROVIDE.
Fresno LAFCo observes that the District primarily provides intangible services;
these are services that are not physically measurable. The District provides
landowner representation among other local agencies involved with the
organization and implementation of SGMA in the Lower Kings Groundwater
Basin.
The District informed Fresno LAFCo staff that it provides its landowner with
some services directly, and other services are provided indirectly through joint
partnership with other Districts.
34 See Appendix C – RCWD’s comments to Draft MSR- Response 14
Municipal Service Review Raisin City Water District
39
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 District informed Fresno LAFCo that it is evaluating potential annexation
opportunities for lands currently outside its service area. Land available for
annexation is generally north and west of the existing service area. This area is
within the Lower Kings Basin, but at this time is not technically represented by a
local agency to protect its interests as it relates to farming operation and
irrigation water. It is Fresno LAFCo’s observation that areas located outside of
any local agency’s service area would be represented by the County as SGMA is
implemented. The District intends to annex land into its service area so that
landowners could be represented by the District once the implementation of
SGMA begins to occur circa June 2017. The District did not provide an
annexation timeline; however, Fresno LAFCo encourages the District develop an
annexation program. Such a program would assist the District develop policy
that will ultimately guide the District’s annexation program.
5.FOR AN UPDATE OF A SPHERE OF INFLUENCE OF A CITY OR SPECIAL
DISTRICT THAT PROVIDES PUBLIC FACILITIES OR SERVICES RELATED
TO SEWERS, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL
FIRE PROTECTION, THAT OCCURS PURSUANT TO SUBDIVISION (G) ON
OR AFTER JULY 1, 2012, THE PRESENT AND PROBABLE NEED FOR
THOSE PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED
UNINCORPORATED COMMUNITIES WITHIN THE EXISTING SPHERE OF
INFLUENCE.
The District is designated by LAFCo policy as a non-municipal local agency,
meaning that the District is authorized to provide non-municipal services. The
District has no public facilities or provides services related to sewer, municipal
and industrial water, or structural fire protection that would present opportunity
to extend services to a disadvantaged unincorporated community.
Municipal Service Review Raisin City Water District
40
4. RECOMMENDATIONS
In consideration of information gathered and evaluated during the 2015 Municipal
Service Review, it is recommended the Commission:
1. Receive this report and any public testimony regarding the proposed Municipal
Service Review and proposed Sphere of Influence Update.
2. Find that the Municipal Service Review is exempt from the California Environmental
Quality Act pursuant to section 15306 (Information Collection).
3. Approve the recommended Municipal Service Review determinations, together with
any changes deemed appropriate.
4. In consideration of the potential beneficial effect to the general public of the
District’s active participation in the SGMA, it is recommended that the Commission
update the District’s SOI with no modification, maintaining the District’s SOI in its
existing configuration.
5. Based on information provided to the Commission on June 3, 2015 hearing, the
Commission advises the District to take the following fundamental actions:
a) Immediately and continuously hereafter, the District will adhere to state
statutes that ensure that its affairs are conducted in an accountable,
transparent, and accessible manner.
b) Within the next six months, the District will offer a publically accessible District
website that includes District information relating to, but not limited to,
notices of District board meetings, board meeting agendas, board meeting
minutes, and any information deemed appropriate to share publically.
c) Within the next six months, the District will evaluate its property assessment
practices and resolve whether adjustments to these practices are necessary or
desirable.
d) Within one year, the District will prepare and periodically maintain a master
plan to identify District goals, describe activities and projects that fulfill these
goals, estimate expenses and revenue sources, and provide a schedule of
anticipated milestone dates; that this master plan will be a condition of a
complete application for any subsequent annexation or sphere of influence
amendment.
Municipal Service Review Raisin City Water District
41
6. The District is advised that failure to perform these tasks, or to provide Fresno
LAFCo with a record of their timely completion is may result in the Commission
initiating proceedings leading to the dissolution of the District.
Municipal Service Review Raisin City Water District
42
3. ACKNOWLEDGEMENTS & REFERENCES
This Municipal Service Review was prepared by Fresno LAFCO staff. The Raisin City
Water District provided substantial information included in this evaluation of the
agency’s services. Fresno LAFCo staff extends its appreciation to the District Consulting
Manager Stephen Heintz, District Legal Counsel John P. Kinsey, and the District Board of
Directors for their assistance in the completion of this Municipal Service Review Update.
This document and supportive information is available in the Fresno LAFCo office
located at:
Fresno Local Agency Formation Commission
2607 Fresno Street, Suite B
Fresno, California 93721
The Draft Municipal Service Review is available on Fresno LAFCo’s website,
http://www.fresnolafco.org/default.asp
G:\LAFCo Projects\Districts\CalWD\Raisin City WD\Post June Hearing\RCWD_101415_DMSR.doc
Municipal Service Review Raisin City Water District
43