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Gateway Of The Americas Service Area Plan

Local Agency Formation Commissions · imperial-msr-2018-gateway-of-the-americas-service-area-plan · Msr · 2018-01-01

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TABLE OF CONTENTS SECTION PAGE SECTION 1 - EXECUTIVE SUMMARY ..................................................................................... 1 1.1 Introduction ...................................................................................................................... 1 1.2 Public Services & Facilities ............................................................................................. 1 1.3 Financing Summary ......................................................................................................... 3 SECTION 2 – INTRODUCTION .................................................................................................. 7 2.1 Background on the Gateway of the Americas County Service Area ............................... 7 2.2 Purpose of the Service Area Plan..................................................................................... 7 2.3 Organization and Use of the Service Area Plan ............................................................... 8 SECTION 3 – GROWTH AND PHASING PROJECTIONS ...................................................... 11 3.1 Existing Land Use .......................................................................................................... 11 3.2 Planned Land Use .......................................................................................................... 11 3.3 Projected Growth Increase ............................................................................................. 12 3.4 Theoretical Buildout Projections ................................................................................... 12 SECTION 4 – PUBLIC FACILITIES AND SERVICES............................................................. 17 4.1 Drainage Facilities ......................................................................................................... 19 4.2 Wastewater Facilities ..................................................................................................... 27 4.3 Water Facilities .............................................................................................................. 33 4.4 Landscaping Facilities ................................................................................................... 39 4.5 Streetlight Facilities ....................................................................................................... 47 SECTION 5 – FINANCING ......................................................................................................... 51 5.1 Introduction .................................................................................................................... 51 5.2 Existing Revenue Sources.............................................................................................. 51 5.3 Future Revenue Sources ................................................................................................ 51 5.4 Existing Financing Mechanisms .................................................................................... 52 5.5 Future Financing Mechanisms ....................................................................................... 53 5.6 Facility Financing .......................................................................................................... 53 Gateway of the Americas Service Area Plan Table of Contents October 2018 Page i LIST OF TABLES TABLES PAGE Table 3-1, Development and Projected Growth ........................................................................... 12 Table 4.2-1, Estimated Wastewater Generation ........................................................................... 28 Table 4.2-2, Wastewater Usage Charge ........................................................................................ 29 Table 4.3-1, Estimated Water Demand ......................................................................................... 34 Table 4.3-2, Water Usage Charge ................................................................................................. 35 Appendix A ................................................................................................................................... 57 Appendix B ................................................................................................................................... 58 LIST OF FIGURES FIGURES PAGE Figure 3-1, Land Use Designation Map ........................................................................................ 15 Figure 4.1-1, Drainage Facility Photo........................................................................................... 20 Figure 4.1-2, Drainage Facility Photo........................................................................................... 21 Figure 4.1-3, Drainage Facillities Map ......................................................................................... 25 Figure 4.2-1, Sewer Faciliites Map ............................................................................................... 31 Figure 4.3-1, Water Facilities Map ............................................................................................... 37 Figure 4.4-1, Landscape Facility Photo ........................................................................................ 40 Figure 4.4-2, Landscape Facilities Map ........................................................................................ 43 Figure 4.4-3, Streetlight Facilities Map ........................................................................................ 49 Gateway of the Americas Service Area Plan Table of Contents October 2018 Page ii LIST OF ACRONYMS AND ABBREVIATIONS CEQA California Environmental Quality Act CFD Community Facilities District CIP Capital Improvement Program County County of Imperial CSD Community Services Department EIFD Enhanced Infrastructure Finance Districts FY Fiscal Year GC Gateway Commercial GI Gateway Industrial gpd Gallons per day gpm Gallons per minute GSA General Services Administration GSP Government / Special Public IID Imperial Irrigation District LAFCO Local Agency Formation Commission LCFF Local Control Funding Formula LLMD Landscape and Lighting Maintenance Districts mg Million gallons mgd Million gallons per day NPDES National Pollution Discharge Elimination System RWQCB Regional Water Quality Control Board (Colorado River Basin) SAP Service Area Plan SB Senate Bill SCAG Southern California Association of Governments sf Square feet SPA Specific Plan Area SOI Sphere Of Influence SWPPP Storm water Pollution Prevention Plan WDF Water Demand Factors WTP Water Treatment Plant WWTP Wastewater Treatment Plant Gateway of the Americas Service Area Plan Table of Contents October 2018 Page iv This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Table of Contents October 2018 Page v SECTION 1 – EXECUTIVE SUMMARY 1.1 Introduction This Service Area Plan (SAP) outlines the County Service Area (CSA) known as Gateway of the Americas (Gateway) which is designated a Specific Plan Area (SPA) in the County of Imperial General Plan. The SAP estimates the current and future demand for public services and facilities and describes how they will be developed, extended, and financed to meet the projected demand. The following is a brief summary of the existing resources, demands, financing mechanisms, and mitigation measures related to the five public services and facilities examined in this SAP. These include Drainage, Wastewater Treatment & Collection System, Water Treatment and Distribution, Landscaping, and Streetlights. 1.2 Public Services & Facilities Drainage Facilities The storm water drainage system in place (phase I) contains curbs and gutters along the above-ground system in all permanent streets, storm drain inlets to the underground system, underground lines ranging in size from 18 to 27 inches and temporary retention basins. Mitigation a. Continue implementation of the 2008 Engineering Design Guidelines Manual for Gateway. b. Continue to require new roadways within the Gateway boundaries to meet local requirements for provision of gutter features and slopes to properly convey storm flow c. Continue to require that new development projects address potential drainage issues and provide adequate facilities to convey storm water flows. If developments drain into facilities of the County’s system, require that the developer consult with the Department of Public Works to assure that improvements are engineered and constructed to County standards, including a detailed erosion/siltation control plan. In addition, the developer shall also be required to submit a drainage study, plans for improvements of drainage facilities, and hydraulic calculations to the Department of Public Works. d. Require compliance with MS4 permits for storm water quality and implementation of Best Management Practices (BMPs) to reduce storm water quality impacts downstream or along adjacent properties. Funding Current Funding – The primary sources of revenue for public storm drain and retention facilities1 are the benefit impact fees, Community Facilities District (CFD) 98-1 fees, and CFD 02-1 fees. Future Funding – The CSA will continue to utilize the existing funding sources for public drainage facilities. Wastewater Treatment and Collection System Facilities The current wastewater system includes two lined lagoons, four unlined evaporation/percolation ponds, and three lift stations, all connected with 12 inch pipes. Current facilities (phase I) have a design capacity of 200,000 gpd. Mitigation 1 Several retention basins are private. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 1 All wastewater system improvements shall be designed and constructed in accordance with Federal, State, and local regulations. Funding Current Funding – The primary sources of revenue for wastewater treatment and distribution facilities are the benefit impact fees, sewer capacity fees, sewer connection charges, sewer usage charges, and CFD 98- 1 fees. Future Funding – The CSA will continue to utilize the existing funding sources for wastewater facilities. Water Treatment and Distribution Facilities The Gateways package water treatment facility consists of modular units that can be expanded up to the ultimate plant capacity of 1.0 million gallons per day (MGD). The treated water is stored in two tanks; a 500,000-gallon bolted steel tank and a 1,000,000-gallon welded tank. From these tanks the water is then pumped into the distribution system by a 1,800-gallon per minute four-pump station. The operating pressure for the system is 80-85 pounds per square inch (psi). Mitigation a. Maintain a 10-day storage supply of treated water. b. Maintain the potable water supply at a minimum of 20 psi during maximum daily demand plus fire flow of 2,500 gallons per minute. c. A potable water supply shall be provided for all developing areas. d. All water system improvements shall be designed and constructed in accordance with Federal, State, and local regulations. Funding Current Funding – The primary sources of revenue for water treatment and distribution facilities are the benefit impact fees, water capacity fees, water meter fees, water usage charges, and CFD 98-1 fees. Future Funding – The CSA will continue to utilize the existing funding sources for water facilities. Landscaping Facilities Landscaping in the street right-of-way plays a critical role in the aesthetics of the Gateway Specific Plan area. The specific plan provides landscape design guidelines for the highways, major arterials, and the industrial and commercial streets, in particular, Menvielle Road and Maggio Road will have landscape medians. The state highways (Highway 98 and SR-7) are the responsibility of Caltrans and are therefore not included in the analysis of the service area plan for the Gateway County Service Area (CSA). The analysis of landscaping facilities provided in this Service Area Plan is based on landscape medians only, and does not include frontage landscape along either side of the street. Mitigation Mitigation will be the actual construction and planting of the median islands within the right-of-way of Menvielle and Maggio Roads at the time adjacent development occurs. Funding Current Funding – Since there are no existing landscape medians within the CSA, there is no current assessment for maintenance purposes. However, a funding mechanism is available for the maintenance of landscape medians through the CSA. After installation of median landscaping, the appropriate maintenance assessment will be levied on the benefiting properties. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 2 Future Funding – The County shall maintain all landscape medians through the operations and maintenance assessment. Other future funding sources may include CFD fees and/or the creation of Street lighting and Landscape Annexation Districts. Streetlight Facilities Streetlights located along industrial and commercial streets within the specific plan area will be maintained by the CSA. Mitigation Mitigation will be the actual construction and maintenance of the streetlights at the time adjacent development occurs. Funding Current Funding – All current funding for street light maintenance is set up through the CSA operations and maintenance assessment. Future Funding – The County shall maintain all streetlights through the CSA operations and maintenance assessment. Other future funding sources may include CFD fees and/or the creation of Street lighting and Landscape Annexation Districts. 1.3 Financing Summary Existing Revenue Sources The Gateway CSA relies on several funding sources for capital improvements and maintenance and operation activities. Water and Wastewater Service Charges The water (treatment and distribution) and wastewater (collection, treatment, and disposal) systems operate as enterprise funds with water and sewer usage rates based on the cost of providing water and sewer services, and are proportional to water use in accordance with Proposition 218. The water and sewer rates have not been updated since they were established in 2002 . However, a water and sewer rates update study is currently underway. When completed and adopted by the County Board of Supervisors, the water and sewer rates study will be submitted under separate cover as an Exhibit to this SAP. Special Assessment The Gateway CSA assessment for maintenance and operations (Special Assessment) was established by the Board of Supervisors in 2001 in conformance with Proposition 218.2 The initial benefit area of the Special Assessment (sub-phase I) was 198 assessed acres in 2001. The benefit area expands as parcels develop. In FY 2018–2019, the Special Assessment was levied on a total of 136 parcels which consist of approximately 389.27 taxable acres. Each parcel has been assigned a benefit factor by the County. The benefit rate per unit varies from year to year which is determined by annual budget divided by total taxable acres.3 The current total number of benefit units is 346.87. Dividing the total levy in FY 2018–2019 of $253,209 by the number of benefit units results in a rate per benefit unit of $729.98.4 The Gateway CSA Special Assessment funds water, wastewater, common area landscaping, street lighting improvements, and 2 Resolution 2001-114 Approving an Assessment for Maintenance and Operations for the Gateway CSA, November 20, 2001. 3 Engineer’s Report for Subphase I Initial Benefit Area Gateway County Service Area, Dick Jacobs Associates, and October 2001. 4 Gateway CSA Special Assessment Levy Memorandum, David Taussig & Associates, July 5, 2018. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 3 administration. The purpose of the Special Assessment is to supplement the water and wastewater services charges and fund the common area landscaping and street lighting, which have no funding source other than the Special Assessment. The Special Assessment normally appears on the property tax bill. Please note that the levy has decreased by approximately 31% from $364,903 in FY 2017-2018 to $253,209 for FY 2018-2019. This is mainly due to an overall decrease in water treatment costs attributed to a settlement agreement between the County and the property owners under which a credit was applied and certain expenses were reduced. The administrative services costs decreased since last year. Much of the increase in sewer treatment costs is due to more frequent mandatory testing for sewer treatment. As a result of the overall decrease in costs, the total rate per benefit unit decreased from $1,051.98 last year to $729.98 for FY 2018-2019 as described above. Community Facilities Districts Two Community Facilities Districts have been established in Gateway. CFD 98-1 provides capital funding for water and wastewater system improvements and storm drains. CFD 02-1 provides funding for the relocation and undergrounding of portions of the South Alamo Canal (drainage).5 Benefit Impact Fees Benefit impact fees (AB 1600 fees) are collected for the expansion of water and sewer treatment facilities (capital improvements only) and are charged by the acre to new development depending on land use and phase of development (explained further in Sections 4.2 and 4.3). A benefit impact fee is also charged for improvements to State Route 98.6 Water and Sewer Capacity Fees In addition, water and sewer capacity and connection fees are charged to all new development. The capacity charge is calculated per each gallon of projected daily water usage by the proposed development project. Charges are collected for water connections based on the water meter size and for sewer connections based on the size of the sewer lateral. The capacity and connection fees are further explained in Sections 4.2 and 4.3. In the event that an operating deficit occurs in the CSA in any given year that would exceed the maximum Special Assessment levy, the CSA reserves would be drawn upon to cover the deficit. If the reserves are insufficient to cover the remaining deficit, it is possible that the County General Fund would need to subsidize the deficit. Under these circumstances the General Fund, in essence, becomes a de facto funding source. Future Revenue Sources The CSA will continue to use the current funding sources described above and in Section 5 for capital improvements and operations. The County General Fund subsidy of the CSA (derived from various sources, including property tax, sales tax, Motor Vehicle In-lieu Fees, and others) will likely continue without revenue enhancements within the CSA. Other potential revenue sources:  State and federal grants, including Community Development Block Grants  Updated user fees, impact fees (next update in July 2019), and capacity and connection fees (next update in 2019).  Tax increment from Enhanced Infrastructure Financing District (EIFD) 5 Gateway of the Americas Service Area Plan, Hoffman Planning Associates, February 2005. 6 Gateway of the Americas Service Benefit Analysis Report Update, Boyle Engineering, February 2007; adopted by Board of Supervisors Resolution 2007-065 on July 10, 2007. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 4  New assessment districts (Lighting and Landscape Maintenance Districts) to cover areas of benefit and improvements not within the CSA. Existing Financing Mechanisms Special tax bonds have been issued by CFD 98-1 and CFD 02-1 to finance the Gateway water and wastewater treatment plant expansions and storm drain improvements. Future Financing Mechanisms  With the formation of an EIFD, infrastructure improvement bonds may be issued subject to an approved Infrastructure Financing Plan and approval by 55% of the Gateway voters or property owners.  Formation of new CFDs. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 5 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 1 – Executive Summary October 2018 Page 6 SECTION 2 – INTRODUCTION 2.1 Background The County of Imperial encompasses 4,284 square miles and is home to over 180,000 residents and over 62,000 jobs. The Gateway of the Americas (Gateway) County Service Area (CSA) is located on the southern boundary of the County and is comprised of 16 separate private property ownerships, as well as those controlled by General Services Administration (GSA), California Highway Patrol (CHP) , and local agencies. Specifically, it is located adjacent to the US-Mexico International Border approximately 6 miles east of the City of Calexico. The planning area includes approximately 1,775 gross acres which are bounded on the west by the Ash Canal, on the north by a line parallel to and approximately one-quarter mile north of the centerline of State Route (SR) 98, on the east by the west bank of the Alamo River, and on the south by the northern right-of-way of the All American Canal. Gateway surrounds the 87-acre Calexico East International Port of Entry (POE) on the U.S. side of the border. The POE opened on December 2, 1996 in response to increased vehicle and commercial traffic along the region’s border crossings since the passage of the North American Free Trade Agreement (NAFTA). In addition to housing Customs & Border Patrol (CBP), the facility also contains the Immigration & the US Department of Agriculture. The facility is the primary commercial vehicle crossing in Imperial County and processes the agricultural, commercial, and industrial imports/exports for both the Baja California and Imperial Valley regions. Gateway is designed to support and maximize the economic benefits associated with the POE and the international commerce that it encourages. Gateway is a unique area because of its location adjacent to the international border and the POE, its direct access to Mexico, and its abundance of large tracts of readily developable land. Gateway has the potential of becoming a major industrial/commercial center for Imperial County and the southwestern United States. 2.2 Purpose of the Service Area Plan This SAP has been prepared for the County of Imperial in accordance with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which requires that a plan identifying the existing and projected demand for public facilities and services be prepared by all incorporated cities and special districts within the State. This 2000 legislation is implemented by Imperial County Local Agency Formation Commission (LAFCO), whose policy states that a city or county within the jurisdiction of Imperial County LAFCO must update an SAP in order to demonstrate a county’s ability and intent to provide adequate services within its jurisdictional boundaries. The Gateway of the Americas Service Area Plan is part of a Special District known as a County Service Area (CSA). California Government Code 56036 (a) defines a Special District or CSA as “an agency of the state, formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries. ‘District’ or ‘special district’ includes a county service area”. This CSA was formed to enable the County to localize the provision and financing of expanded services, in an area which needed a higher level of public service. By establishing CSAs, the County of Imperial can identify which areas require a higher level of specific service than those already uniformly provided within the entire County. These extended services are financed by the taxpayers of the CSA. By isolating the extra services provided within the CSA, the County can insure that the additional services are paid for by those who will receive them. Gateway of the Americas Service Area Plan Section 2 – Introduction October 2018 Page 7 2.3 Organization and Use of the Service Area Plan This SAP outlines Gateway’s existing public services and facilities, estimates the current and future anticipated demand for such facilities and services, and describes how necessary facilities and services will or may be developed and extended to meet demands. The SAP is intended to demonstrate the County’s intent and ability to provide adequate services within the CSA boundaries. An approximately 10-year planning horizon is used to forecast growth, and the estimated demands and provision to meet demands are based on growth projections to 2025. The growth projections used in this document were provided by the Southern California Association of Governments (SCAG) and the Gateway of the Americas Specific Plan. Since Gateway does not permit residential land use designations or dwelling units, population growth projections have been replaced by the projected commercial and industrial growth and placed into the structure and policies of the land use plan presented in the General Plan. The document is organized into the following six chapters that satisfy the requirements set forth in the LAFCO guidelines: Chapter 1.0 EXECUTIVE SUMMARY: Provides a brief summary of the SAP, highlighting key information regarding demand and financing. Chapter 2.0 INTRODUCTION: Outlines the purpose and intent of the SAP and presents its layout to help the reader use the document. This chapter also provides background information on the CSA and on the planning documents that enabled the preparation of the SAP. Chapter 3.0 GROWTH PROJECTIONS: Provides general information about projected population, current and future land use trends in the Gateway CSA, and the implications of these trends for the development of needed services and facilities. Chapter 4.0 FACILITIES AND SERVICES: Details the current and planned facilities and services, their current and projected adequacy, measures to ensure adequacy, and how such measures will be achieved and financed. An analysis of the following facilities and services are provided: • Drainage • Wastewater Treatment and Collection System • Water Treatment and Distribution • Landscaping • Streetlights Analysis for each public service and facilities area in the SAP is based on the standards developed by LAFCO. Although LAFCO Guidelines typically require evaluation of administration, fire, law enforcement, library, parks and recreation, and circulation, the Gateway of the Americas is a CSA and does not propose annexation into an adjacent municipality that provides these services or facilities. The SAP will analyze only the specific public services that are provided by the County in the CSA (drainage, wastewater, water, landscaping, and streetlights). Each subchapter of Chapter 4 contains the following four sections:  Performance Standard: A description of any standards or goals that have been adopted by the County to the review of the adequacy of service within the existing and future timeframes.  Facility Planning and Adequacy Analysis: An inventory of the existing facilities, the adequacy of the facilities when compared to existing demands, the anticipated demand for Gateway of the Americas Service Area Plan Section 2 – Introduction October 2018 Page 8 facilities pursuant to growth of the County Service Area, and the phasing of the demand for facilities.  Financing: An explanation and identification of how services and facilities are currently being funded, including a per capita cost where available and applicable, and how future services and facilities may be funded.  Mitigation: A series of recommendations to ensure that adequate facilities will be provided and proper levels of service will be maintained. Figures are often provided within the various sections of Chapter 4 that show CSA maps and the relationship of existing and planned facilities to anticipated growth within CSA boundaries. Figures for each service and facilities area are presented at the end of each section. Chapter 5.0 FINANCING: Identifies all of the potential funding mechanisms for public services and facilities provision that are available to the County. This section presents potential funding sources and then identifies how each service or facility sector is currently funded and appropriate future funding opportunities, as well as cost saving opportunities. Gateway of the Americas Service Area Plan Section 2 – Introduction October 2018 Page 9 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 2 – Introduction October 2018 Page 10 SECTION 3 – GROWTH AND PHASING PROJECTIONS 3.1 Existing Land Use Gateway of the Americas is designed as a master-planned industrial and commercial complex consisting of 1,775 gross acres bounded on the west by the Ash Canal, on the north by a line parallel to and approximately one-quarter mile north of the centerline of State Route 98, on the east by the west bank of the Alamo River, and on the south by the northern right-of-way of the All-American Canal. The County General Plan specifies that the SPA includes land use designations and associated zoning for Gateway Industrial (GI), Gateway Commercial (GC), Government/Special Public (GSP), and Gateway Central Commercial Overlay. These zoning designations allow for a full range of industrial uses related to the Port of Entry, emphasizing manufacturing, wholesale/distribution, assembly operations, transportation infrastructure, and related support services, including retail and commercial. Specific plans are “planning tools” used to implement the General Plan for large development projects (such as Gateway with the uses and development associated with the Port of Entry). Specific plans are utilized where existing conventional zoning regulations do not provide adequate controls over land use and development. The specific plan must be consistent with all aspects of the Plan. The Gateway Specific Plan is intended to be developed primarily with industrial, office, and warehouse space for manufacturers, customs brokers, freight forwarders, and corporate or administrative offices. Secondary land uses would include retail, restaurant, service commercial outlets, truck service center, government facilities, and motel accommodations. 3.2 Planned Land Use Planning and development within Gateway is guided by the goals and policies of the Gateway of the Americas Specific Plan. The proposed land uses and organizational pattern are shown on Figure 3-1. The land uses directly respond to the General Plan’s requirement that no less than 65% of the project’s net developable area be for industrial-type uses. The balance of the planning area is devoted to retail/commercial uses, rights-of-way and easements, the State of California inspection facilities, and the International Port of Entry. The uses are distributed over the SPA in a system designed to ensure compatible and efficient use of the land, while responding to the unique market conditions and the complex ownership patterns associated with the property. The Gateway Industrial (GI) land use category makes up approximately 1,086 acres and is intended to provide suitable locations for industrial, manufacturing, and certain heavy commercial uses related to serving the International Port of Entry and its projected cross-border truck commerce. The industrial standards and regulations are designed to encourage the development and use of property in a manner consistent with efficient industrial and manufacturing operations. Regulations concerning permitted use, property development, off-street parking, and application of industrial performance standards are intended to ensure high-quality development which accommodates the special needs of both national and international users. The Gateway Commercial (GC) land use makes up approximately 277 acres and is intended to provide development areas for a mix of auto- and pedestrian-oriented commercial and retail activities specifically reflective of and supportive of the industrial office and warehousing users at this Port of Entry location. The Commercial category is applied to areas adjacent to the internal roadway network where high levels of activity are anticipated. Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 11 The Government/Special Public (GSP) land use category makes up approximately 170 acres is intended for those areas of the plan devoted strictly to Governmental purposes, including the Port of Entry, State of California Highway Patrol Station, and the Imperial Regional Detention Facility. 3.3 Projected Growth Increase According to the Southern California Association of Governments (SCAG), the County of Imperial has a total population of 180,672 residents (2014). The Gateway Specific Plan Area surrounds the 87-acre International Port of Entry (POE) and is designed to support and maximize the regional economic benefits associated with the POE and the international commerce it encourages. Due to the commercial and industrial focus of the Specific Plan, residential land use designation and zoning are not permitted. Analysis of satellite imagery dated March 2016 and a site visit on October 10, 2016 shows 11 dwelling units remain within the Gateway boundary. Based on SCAG’s 2014 average household side of 3.5, Gateway has a total estimated population of 39 residents. As stated in the Plan, with continued development, the remaining homes will be replaced with industrial or commercial uses. Therefore, in order to effectively estimate the growth potential and impact to services, this analysis will focus on the square footage of commercial and industrial development instead of population. In the absence of localized data for Gateway from SCAG, the projected growth for the next 9 years is determined based on the historical growth trends from the previous 20 years. Analysis of available satellite imagery from June 1996 indicates an estimated total of 167,100 square feet (sf) of development in Gateway, all within the designated Gateway Special Public use associated with the POE. Analysis of satellite imagery dated August 2005 (the closest available imagery to 10 years from the 1996 baseline) indicates an estimated total of 931,300 sf, an increase of 764,200 sf, all coming from commercial and industrial growth (14,500 sf and 749,700 sf respectively). Finally, analysis of satellite imagery dated March 2016 (the closest available imagery from 20 years from the 1996 baseline) indicates an estimated total of 1,454,200 sf, an increase of 522,900 sf which includes growth in commercial, industrial, and government/institutional use. Based on the 20-year growth trend from 1996 to 2016, the year-to-year projected growth for the 2025 horizon year is 2,940 sf for commercial development and 52,815 sf for industrial development (Special Public lands are built out and no future growth or expansion is expected). Therefore, the projected growth for the 2025 horizon year is an estimated increase of 501,795 sf, approximately 26%. Table 3-1 shows the breakdowns below. Table 3-1, Development and Projected Growth Year Commercial Industrial Special Public Cumulative Total 1996 0 0 167,100 sf 167,100 sf 2005 14,500 sf 749,700 sf 0 931,300 sf 2016 44,300 sf 306,600 sf 172,000 sf 1,454,200 sf 2025 26,460 sf 475,335 sf 0 sf 1,955,995 sf 3.4 Theoretical Buildout Projections Unlike a forecast, the theoretical build-out scenario does not have a time horizon, nor does it include transportation, demographic, existing land use, or economic assumptions typically used by a forecasted model to provide more realistic land use planning data. Therefore, due to regulatory constraints, physical constraints, and foreseeable market conditions, realization of this scenario for the foreseeable future is unlikely. The SAP includes an analysis of this scenario because the Specific Plan land use categories do provide the theoretical capacity for non-residential building square feet to allow the build-out estimates. Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 12 The Specific Plan allows a total of 277 acres of commercial and approximately 1,086 acres of industrial development (12,066,120 sf and 47,306,160 sf respectively). Given that existing zoning laws allow a maximum building lot coverage of 50%, those totals have to be multiplied by 0.5 (50%) in order to get the total build out of facility/building space for commercial and industrial development. Therefore, the theoretical build-out for Gateway is 6,033,060 sf of commercial development, 23,653,080 sf of industrial development, and 339,100 sf of existing Special Public development (not projected to increase) for a total of 30,025,240 sf. Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 13 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 14 Figure 3-1 Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 15 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 3 – Growth and Phasing Projections October 2018 Page 16 SECTION 4 – PUBLIC FACILITIES AND SERVICES FACILITY ANALYSIS The facility analysis consists of a review of the public facilities specifically identified in the Resolution of Intention to form the CSA and as revised by the Imperial County Public Works Department. These facilities include storm drainage and retention, wastewater conveyance and treatment, potable water conveyance and treatment, landscaping, and street lighting. The facility analysis will address each of these facilities to demonstrate the adequacy of these facilities as development occurs within the CSA. Gateway of the Americas Service Area Plan Section 4 – Public Facilities and Service October 2018 Page 17 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4 – Public Facilities and Service October 2018 Page 18 4.1 Drainage Facilities The County of Imperial Department of Public Works owns, operates, and maintains a system of drains that convey storm water and urban runoff that make up the Salton Sea Transboundary Watershed. The majority of the drainage system is constructed in “piecemeal” fashion. As areas within Gateway are developed and streets improved, the drainage system is extended or upgraded to ensure runoff generated by development can be properly conveyed to meet the local and statewide performance standards. I. Performance Standard The County adopted drainage performance standards for all new development in 2008 with the Engineering Design Guidelines Manual for Gateway (Manual). The Manual establishes uniform engineering design guidelines for the preparation and plan checking of drainage plans and standards. These guidelines are developed to be as a basis for Gateway assuming full development of the upstream tributary basins within which Gateway is located. Per the Manual, all drainage facilities shall be designed to carry the 10-year, six-hour storm underground, the 25-year storm between the top of curbs provided two 12 feet minimum width dry lanes exist, and the 100-year frequency storm between the right of way lines with at least one 12 feet minimum dry lane open to traffic. All culverts shall be designed to accommodate a 100-year frequency storm. Storm water is conveyed to detention basins either on-site or at locations throughout the Gateway plan. The drainage system must also conform to the specific standards set forth by National Pollutant Discharge Elimination System permit requirements, Municipal Separate Storm Sewer System (MS4) Permit, Federal Emergency Management Agency requirements, and Imperial Irrigation District requirements. II. Facility Planning and Adequacy Analysis Inventory of Existing and Approved Facilities The storm water drainage system (shown in Figure 4.1-3) (Phase 1) contains curbs and gutters along all permanent streets, storm drain inlets to the underground system, underground lines ranging in size from 18 inches to 27 inches and temporary retention basins. Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 19 Figure 4.1-1 Existing drainage facility at the southwest corner of State Route 7 and Menvielle Rd, facing southwest Adequacy of Existing Facilities All existing drainage facilities are adequate to serve the existing development, as they meet the existing performance standards for the drainage system, including the specific standards for the 10, 25, and 100-year storm events. Such storm events have yet to occur. Future Demand for Facilities As Gateway continues to grow, additional impervious surfaces will be constructed over existing agricultural or otherwise undeveloped land, disenabling storm water and urban runoff from seeping into the ground in its natural drainage pattern. This will require consideration for additional drainage facilities to prevent flood conditions. The County will continue to require the construction of onsite drainage facilities in each development that contains the flows from the development. Such facilities would be constructed by the developer, which would prevent the County from needing to construct further major improvements in most parts of the Gateway CSA boundaries. Opportunities for Shared Facilities Several of the existing retention basins are landscaped and include pedestrian pathways, and can be shared as landscaping (see Figure 4.1-2). Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 20 Figure 4.1-2 Existing drainage facility that also serves as landscaping, immediately north of the UETA Duty Free store, facing west Phasing Improvements to the storm water drainage system including proposed storm drains and detention basins will be provided as development occurs (Figure 4.1-3). III. Mitigation In order for the County to assure the adequate provision of storm water and urban runoff drainage within the Gateway boundaries, the County will continue to implement the following measures:  Continue implementation of the 2008 Engineering Design Guidelines Manual for Gateway.  Continue to require new roadways within the Gateway boundaries to meet local requirements for provision of gutter features and slopes to properly convey storm flow  Continue to require that new development projects address potential drainage issues and provide adequate facilities to convey storm water flows. If developments drain into facilities of the County’s system, require that the developer consult with the Department of Public Works to assure that improvements are engineered and constructed to County standards, including a detailed erosion/siltation control plan. In addition, the developer shall also be Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 21 required to submit a drainage study, plans for improvements of drainage facilities, and hydraulic calculations to the Department of Public Works.  Require compliance with MS4 permits for storm water quality and implementation of Best Management Practices (BMPs) to reduce storm water quality impacts downstream or along adjacent properties. IV. Financing Current Funding Special Assessment The Gateway Special Assessment collects funds for maintenance of storm drains and storm water detention basins as part of common area landscape maintenance. Community Facilities District – CFD 98-1 On August 4, 1998, the Imperial County Board of Supervisors approved Resolutions 98-079 and 98-080 to establish CFD 98-1 and authorize the levy of special taxes and to incur bonded debt for public facility improvements required for the development of the initial phases of the Gateway Specific Plan area. The formal name of the district is “County of Imperial Community Facilities District No. 98-1 (Los Alamos International Center).” Special tax bonds were sold in 1999 for the construction of the CFD improvements in the amount of $8,360,000. CFD 98-1 is authorized to issue up to $40,000,000 in special tax bonds.7 The CFD boundaries include approximately 807 acres (850 gross acres) of developed and undeveloped property. A listing of the assessor’s parcel numbers of the property in CFD 98-1 is in the Appendix A. In addition to water, sanitary sewer, and roadway improvements, CFD 98-1 is authorized to finance storm drain capital improvements; specifically, the undergrounding and relocation of a portion of the South Alamo Canal. Community Facilities District – CFD 02-1 On July 16, 2002, the Board of Supervisors approved Resolutions 2002-073 through 2002-81 to establish CFD 02-1 and authorize the levy of special taxes and to incur bonded debt. Special tax bonds were sold in 2002 in the amount of $2,486,600 for the relocation and further undergrounding of the South Alamo Canal improvements. CFD 02-1 is authorized to issue up to $2,500,000 in special tax bonds.8 The CFD boundaries include approximately 139 acres of developed and undeveloped property in Zone 1 (Rice Property) and approximately 250 acres in Zone 2 (Menvielle Property). A listing of the assessor’s parcel numbers of the property in CFD 02-1 is in the Appendix B. In 2014 the County received a payment in the amount of $1,768,915 from the Imperial Irrigation District pursuant to a Joint Community Facilities Agreement. Based on this agreement, $1,615,104 in the CFD 02-1 bonds were called on July 1, 2014. Of this amount, $794,800 was used to call bonds for Zone 1 and $820,304 was used to call bonds for Zone 2, resulting in an outstanding principal amount of $173,675 for Zone 1 and 7 Fiscal Year 2015–2016 Administrative Report for CFD 98-1, David Taussig & Associates, July 10, 2015. 8 Fiscal Year 2015–2016 Administrative Report for CFD 02-01, David Taussig & Associates, August 17, 2015. Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 22 $0 for Zone 2. Since there is no principal outstanding for Zone 2, property in Zone 2 is no longer required to pay a special tax, beginning in fiscal year 2014–2015. Both CFDs cover incidental expenses including planning, environmental, and design of the facilities, costs for the creation of the CFD, and other incidental expenses for the construction, completion, and inspection of the facilities. Cost Avoidance Opportunities Options for reducing costs include requiring on-site retention of storm water for all private development projects. Alternatively, best management practices could be required to ensure storm water compliance and improve the quality of runoff to public drainage facilities. Recommended Funding A benefit impact fee should be adopted to help offset the costs of future storm drain capital improvements. State and federal grant and loan programs may be available to assist in the funding of future facilities. It would be prudent for the CSA management team to continue to discuss alternative means by which to fund future facilities. Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 23 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 24 Figure 4.1-3 Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 25 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.1 – Drainage Facilities October 2018 Page 26 4.2 Wastewater Facilities The County owns, operates, and maintains a system of wastewater facilities that consist primarily of a wastewater treatment plant, lift stations and sewage conveyance lines. This section of the Service Area Plan provides a description of the existing facilities, the adequacy of those facilities, the demand for future facilities and costs associated with wastewater treatment. I. Performance Standard The goal in the operation and maintenance of the County’s wastewater facilities is to provide adequate service to every customer (largely employers in industrial and commercial developments). The County utilizes several engineering criteria to determine the adequacy of existing wastewater facilities and the needs for improvements to the system. These criteria are located in the Gateway Specific Plan and the 2008 Engineering Design Guidelines Manual for Gateway. The criterion considers the accommodation of flow volume and velocity, lift station capacity, and technical engineering specifications that assure a properly designed system. II. Facility Planning and Adequacy Analysis The wastewater treatment facility is located on 17.8 acres at the east end of Zinetta Road adjacent to the Alamo River. Operation of the wastewater treatment facility is contracted with Perc Water. The facility utilizes an Advanced Integrated Pond System (AIPS) for wastewater treatment. Treatment is currently limited to evaporation and percolation rates. The system is designed to minimize sludge production, energy demands, and personnel demands. Inventory of Existing and Approved Facilities The current wastewater system includes two lined lagoons (Lagoon 1 and Lagoon 2), four unlined evaporation/percolation ponds, and three lift stations all connected through the backbone sewage conveyance system consisting of 12 inch pipes. Adequacy of Existing Facilities Based on the existing building square footage of 58,800 sf of commercial space with an assumed generation of 81.6 gpd, 1,056,300 sf of industrial space with an assumed generation of 40.8 gpd, and 27,671 sf of Special Public space with an assumed generation of 81.6 gpd (based on the commercial rate), the total existing sewage generation rate for Gateway is an estimated 75,566 gpd (Phase 2 facility). The estimated sewage generation rate for Gateway of 75,566 gpd is well-below the current plant’s capacity of 200,000 gpd. Future Demand for Facilities Table 4.2-1 provides the anticipated demand for wastewater treatment facilities up to the year 2025. With the commercial building square footage estimated to increase from 58,800 sf in 2016 to 85,260 sf in 2025 with an assumed generation of 81.6 gpd, and the industrial building square footage estimated to increase from 1,056,300 sf to 1,531,635 sf with an assumed generation of 40.8 gpd, the estimated total maximum daily wastewater treatment demand for 2025 is 97,119 gpd, well-below the wastewater plant’s capacity of 200,000 gpd. Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 27 Table 4.2-1, Estimated Wastewater Demand Maximum Commercial Industrial Special Daily Special Building Commercial Building Industrial Public Wastewater Year Public Square GPD Square GPD Square Treatment GDP* Footage Footage Footage Demand GPD 2016 58,800 4,798 1,056,300 43,097 339,100 27,671 75,566 2017 61,740 5,038 1,109,115 45,252 339,100 27,671 77,961 2018 64,680 5,278 1,161,930 47,407 339,100 27,671 80,356 2019 67,620 5,518 1,214,745 49,561 339,100 27,671 82,750 2020 70,560 5,758 1,267,560 51,716 339,100 27,671 85,145 2021 73,500 5,998 1,320,375 53,871 339,100 27,671 87,540 2022 76,440 6,237 1,373,190 56,026 339,100 27,671 89,934 2023 79,380 6,477 1,426,005 58,181 339,100 27,671 92,329 2024 82,320 6,717 1,478,820 60,336 339,100 27,671 94,724 2025 85,260 6,957 1,531,635 62,491 339,100 27,671 97,119 Assumes 81.6 GPD/1,000 Sq. Ft. for Commercial Land Assumes 40.8 GPD/1,000 Sq. Ft. for Industrial Land *The ratio from Commercial Land was used to obtain the GDP for Government/Special Public Opportunities for Shared Facilities Due to the financial structure and the isolated location of the County Service Area, there are no opportunities for shared wastewater facilities. According to Imperial County Public Works Department staff, in the future, the Regional Water Quality Control Board may require the County to consolidate and share certain water and wastewater facilities. Phasing The wastewater treatment facility has been designed to expand the facility in subsequent phases as development occurs and wastewater demand increases. Phase 2 has been completed and accommodates a total of 200,000 GPD of wastewater. A Phase 3 expansion would allow treatment of 1.1 million gallons per day. Based on the anticipated demand for wastewater facilities as shown on Table 4.2-1, additional treatment facilities will likely not be needed before the horizon year of 2025. Wastewater transmission lines will be installed as development occurs. III. Mitigation In order for the County to assure adequate service to its wastewater customers, the County will implement the following measures:  Implement proposed improvement projects identified by the County as funds become available. Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 28  Continue to periodically review the wastewater rate and financing structure to assure adequate funding for the implementation of new projects and the maintenance of existing facilities. IV. Financing Funding for the backbone wastewater improvements and wastewater collection and treatment operations in the CSA is through capacity fees, user fees, benefit impact fees, and special assessments to the developed properties. Wastewater usage charges are paid by the developed properties based on the amount of water used. Current Funding Wastewater Usage Charge The wastewater usage charge is based on the type of occupancy (land use) and water usage as follows:9 Table 4.2-2 Charge per Each 1,000 Type of Use Gallon of Water Usage Restaurant $5.35 Professional Office $1.65 Hotel $2.25 Service Station $2.30 Retail Establishment $1.90 Warehouse $0.80 Special Assessment The Gateway CSA Special Assessment for wastewater treatment maintenance and operations is addressed in Section 1.3, Financing Summary. Benefit Impact Fee The Gateway wastewater treatment plant will benefit all properties within the CSA; therefore, a benefit impact fee was originally established in 1998 to pay for the plant’s expansion. The current Gateway CSA benefit impact fees (effective July 1, 2018) apply to all backbone improvement: water, wastewater and transportation. For Gateway phases 1-4, the current fees per acre are: Commercial: $37,965; Industrial: $15,860. According to the 2007 Benefit Analysis Report, the total cost of the planned wastewater treatment plant expansion to serve all phases of Gateway development is $5,648,000 in 2007 dollars. The 2007 report set the portion of the fee allocated to wastewater infrastructure at $5,031 per acre of commercial land and $2,516 per acre of industrial land. The benefit impact fee is a one-time fee payable at issuance of a building permit. 9 Gateway Specific Plan CSA Fee Schedule, effective date July 1, 2018. Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 29 Sewer Capacity Fee The sewer capacity fee is currently $2.38 per gallon of water usage as estimated by the County for projects requesting a water meter. The sewer capacity fee is also a one-time fee payable at issuance of a building permit. Sewer Connection Charge The sewer connection charge amount is the actual cost of material and installation. The following amounts are required as a deposit prior to making the connection: 4-inch Sewer Connection = $750.00 6-inch Sewer Connection = $775.00 Community Facilities District – CFD 98-1 CFD 98-1 is authorized to finance capital improvements including sanitary sewers and wastewater treatment facilities. The CFD also covers incidental expenses including planning, environmental, and design of the facilities, costs for the creation of the CFD, and other incidental expenses for the construction, completion, and inspection of the facilities. See subsection IV in Section 4.1, Drainage Facilities, for details on CFD 98-1. Cost Avoidance Opportunities In order to reduce maintenance and operation costs for sewer facilities, the CSA has outsourced these services. This outsourcing allows the CSA to closely monitor the cost for services and creates the opportunity for competitive bidding during contract renewals, which occur every 5 years. Due to the formation of the CSA, all services provided only benefit those within the CSA, thereby providing for greater efficiency. Recommended Funding The current financing and fee structures must be monitored annually to ensure that sufficient funding is available for the continued maintenance and operation of the sewer facilities. The benefit impact fee should be reviewed and updated annually by application of a construction cost index factor and comprehensively reviewed at five-year intervals to help offset the costs of the capital improvements that have been installed and are to be installed in the future. State and federal grant and loan programs may be available to assist in the funding of future facilities. It would be prudent for the CSA management team to continue to discuss alternative means by which to fund future facilities. Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 30 Figure 4.2-1 Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 31 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.2 – Wastewater Facilities October 2018 Page 32 4.3 Water Facilities The Imperial Irrigation District (IID) supplies water to the Gateways development area from the Colorado River via the All-American Canal which imports water by gravity flow at an annual rate of approximately 3.0 million acre-feet. All facilities within the service area, including the Port Facility, and the treatment plant serving the California Highway Patrol facility, have potable water systems. I. Performance Standard The County’s performance goal in the operation and maintenance of its water facilities is to provide adequate potable water service to every customer. Potable water must meet or exceed water quality standards from the State Water Board. The County utilizes several engineering evaluation criteria for determining the adequacy of water facilities to provide adequate quantity and quality of water service within the County and the need for improvements to the system. These criteria consider water system pressure, pipeline velocities, storage capacity, supply requirements, and booster station requirements. II. Facility Planning and Adequacy Analysis Inventory of Existing and Approved Facilities The water treatment facility is located 0.28 miles south of Gateway Road between Highway 98 and Carr Road. The Gateway package water treatment facility consists of modular units that can be expanded up to the ultimate plant capacity of 1.0 million gallons per day (mgd). The treated water is stored in two tanks; a 500,000-gallon bolted steel tank and a 1,000,000-gallon welded tank. From these tanks the water is then pumped into the distribution system by a 1,800-gallon per minute four-pump station. The operating pressure for the system is 80-85 pounds per square inch (psi). The water distribution lines included as a part of the backbone infrastructure are sized at 18 inches, and are currently being utilized by the developed properties. The 12-inch or smaller lines are not included as a part of the backbone water transmission infrastructure. Adequacy of Existing Facilities Based on the existing building square footage of 58,800 sf of commercial space with an assumed generation of 140 gpd, 1,056,300 sf of industrial space with an assumed generation of 128 gpd, and 27,671 sf of Special Public10 space with an assumed generation of 140 gpd (based on the commercial rate), the total existing water generation rate for Gateway is an estimated 190,912 gpd. The estimated water generation rate for Gateway of 190,912 gpd is well-below the current plant’s capacity of 1.0 mgd. Future Demand for Facilities Table 4.3-1 provides the anticipated demand for water treatment facilities up to the year 2025. With the commercial building square footage estimated to increase from 58,800 sf in 2016 to 85,260 sf in 2025 with an assumed generation of 140 gpd per 1,000 square feet, and the industrial building square footage estimated to increase from 1,056,300 sf to 1,531,635 sf with an assumed generation of 128 gpd per 1,000 square feet, 10 Although the California Highway Patrol (CHP) station has its own water treatment plant to serve its facility, according to CHP staff, the CHP is developing plans to connect to the water system. Therefore, their potential impact is included in the calculations. Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October 2018 Page 33 the estimated total maximum daily water treatment demand for 2025 is 255,459 gpd, well-below the water plant’s capacity of 1.0 mgd. Based on the need to meet the requirements of the County Office of Emergency Services and the National Fire Protection Code, a total of 10 days of water storage holding capacity will be needed. This will be accomplished through the construction of additional reservoirs and by the water contained in the All American Canal and South Alamo Canal. Table 4.3-1, Estimated Water Demand Maximum Commercial Industrial Special Special Daily Building Commercial Building Industrial Public Year Public Water Square GPD Square GPD square GPD Demand Footage Footage footage GPD 2016 58,800 8,232 1,056,300 135,206 339,100 47,474 190,912 2017 61,740 8,643 1,109,115 141,967 339,100 47,474 198,084 2018 64,680 9,055 1,161,930 148,727 339,100 47,474 205,256 2019 67,620 9,467 1,214,745 155,487 339,100 47,474 212,428 2020 70,560 9,878 1,267,560 162,248 339,100 47,474 219,600 2021 73,500 10,290 1,320,375 169,008 339,100 47,474 226,772 2022 76,440 10,702 1,373,190 175,768 339,100 47,474 233,944 2023 79,380 11,113 1,426,005 182,529 339,100 47,474 241,116 2024 82,320 11,525 1,478,820 189,289 339,100 47,474 248,288 2025 85,260 11,936 1,531,635 196,049 339,100 47,474 255,459 Assumes 140 GPD/1,000 sf for commercial land Assumes 128 GPD/1,000 sf for industrial land *Ratio for commercial land was used to obtain the GPD for Special Public Opportunities for Shared Facilities Due to the financial structure and the isolated location of the County Service Area, there are no opportunities for shared facilities. Phasing The water treatment facility has been designed to expand as development occurs and water demand increases, up to its capacity of 1.0 mgd. Based on the anticipated demand for water facilities as shown on Table 4.3-1, an expansion of the water facilities will likely not be needed before the horizon year of 2025. Water transmission lines beyond the backbone infrastructure will be installed as development occurs. Proposed facilities are shown on Figure 4.3-1. III. Mitigation Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October 2018 Page 34 In order for the County to assure adequate service to its water customers, the County will implement the following measures:  Maintain a 10-day storage supply of potable water  Maintain a minimum of 20 psi during maximum daily demand plus fire flow of 2,500 gallons per minute  A potable water supply shall be provided for all developing areas  All water system improvements shall be designed and constructed in accordance with Federal, State, and local regulations IV. Financing Funding for the backbone water improvements and water treatment and distribution operations in the CSA is through capacity fees, user fees, benefit impact fees, and special assessments to the developed properties. Water usage charges are paid by the developed properties based on the amount of water used. Current Funding Water Usage Charge The water usage charge is $3.61 per 1,000 gallons. A monthly maximum allowance is offered as an option according to the following schedule: Table 4.3-2 Maximum Charge per Each 1,000 Monthly Use Gallons over (gallons) Monthly Charge Maximum Usage 30,000 $108.30 $3.61 50,000 $180.50 $3.61 100,000 $361.00 $3.61 Special Assessment The Gateway CSA Special Assessment for water treatment maintenance and operations is addressed in Section 1.3, Financing Summary. Benefit Impact Fee The backbone water infrastructure will benefit all properties within the CSA; therefore, a benefit impact fee was originally established in 1998 to pay for water system improvements. The current Gateway CSA benefit impact fees (effective July 1, 2018) apply to all backbone improvements: water, wastewater and transportation. The benefit impact fee is a one-time fee payable at issuance of a building permit. For Gateway phases 1–4, the current fees per acre are: Commercial - $37,965; Industrial - $15,860. The total cost for the Gateway CSA backbone water system improvements and the fees allocated to water infrastructure only (in 2007 dollars) are as follows11: 11 Benefit Analysis Report Gateway CSA, Boyle Engineering, February 2007. The benefit impact fee includes backbone water, wastewater and transportation improvements. Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October 2018 Page 35 Water Treatment Plant Expansion Cost: $11,565,937 Benefit Impact Fees Commercial: $6,058 per acre Industrial: $5,507 per acre Water Capacity Fee The water capacity fee is currently $1.89 per gallon.12 The fee is based on the estimated amount of daily waste use as calculated by the County for projects requesting a water meter. This is a one-time fee payable at issuance of a building permit. Water Meter Connection The water meter connection amount is the actual cost of material and installation. A deposit is required and is based on the size of the meter. The following are the deposit amounts: 1-inch meter = $1,200.00 2-inch meter = $1,600.00 3-inch meter = $2,500.00 Community Facilities District 98-1 CFD 98-1 is authorized to finance capital improvements to Gateway water treatment facilities. See subsection IV in Section 4.1, Drainage Facilities, for details on CFD 98-1. Cost Avoidance Opportunities In order to reduce maintenance and operation costs for water facilities, the CSA has outsourced these services. This outsourcing allows the CSA to closely monitor the cost for services and creates the opportunity for competitive bidding during contract renewals. Due to the formation of the CSA, all services provided only benefit those within the CSA, thereby providing for greater efficiency. Recommended Funding The current financing and fee structures must be monitored annually to ensure that sufficient funding is available for the continued maintenance and operation of the water facilities. The benefit impact fee, which is updated annually, should be reviewed and updated annually by application of a construction cost index factor and comprehensively reviewed at five-year intervals to ensure that funding is available for future water capital improvements required to serve growth. State and federal grant and loan programs may be available to assist in the funding of future facilities. It would be prudent for the CSA management team to continue to discuss alternative means by which to fund future facilities. 12 Gateway Specific Plan CSA Fee Schedule, effective date July 1, 2016. Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October 2018 Page 36 Figure 4.3-1 Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October2018 Page 37 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.3 – Water Facilities October2018 Page 38 4.4 Landscaping Facilities Landscaping in the street right-of-way plays a critical role in the aesthetics of the Gateway Specific Plan area. The specific plan provides landscape design guidelines for the highways, major arterials, and the industrial and commercial streets. The state highways (Highway 98 and SR-7) are the responsibility of Caltrans and are therefore not included in the analysis of the service area plan for the Gateway County Service Area (CSA). The analysis of landscaping facilities provided in this Service Area Plan is based on landscape medians only, and does not include frontage landscape along either side of the street. Two streets within the CSA will contain landscape medians; Menvielle Road and Maggio Road. I. Performance Standard The landscaping performance standards can be found in the Landscape Master Plan section of the Specific Plan, which detail the general criteria for design and plant material selection, plant material list, and design techniques for specific landscaping conditions. The design conditions for median construction are as follows: 1. The planting area of medians shall be a minimum of 6 feet wide. 2. Planting areas must be graded to drain excess surface water through a system of inlets and drainage pipes, and carried away to the street’s storm drain system. 3. Tree selections and spacing should allow for vehicle visual clearance at maturity. Groundcover and shrubs should not exceed a height of 36 inches. Planting concepts shall utilize drought-tolerant shrubs or turf substitutes. II. Facility Planning and Adequacy Analysis Inventory of Existing and Approved Facilities The existing landscape medians along Highway 98 and SR-78 are currently maintained by Caltrans and are not a part of this analysis. Currently, there are no other existing landscape medians constructed within the CSA Adequacy of Existing Facilities Currently, there is no development located near these future landscape medians and there is not a current demand; therefore, there is no existing deficiency for these facilities. Future Demand for Facilities As development occurs, there will be a demand for 57,800 square feet of landscaping medians within the Gateway CSA and will be located as follows: • Menvielle Road (41,000 square feet) – from Hwy 98 to State Route 7. • Maggio Road (16,800 square feet) – from Menvielle Road to State Route 7. Gateway of the Americas Service Area Plan Section 4.4 – Landscaping Facilities October 2018 Page 39 Opportunities for Shared Facilities Several of the drainage facilities and existing retention basins are landscaped and include pedestrian pathways, and can be shared as landscaping, as shown in Figure 4.4-1 below. Figure 4.4-1 Landscaped drainage facility/detention basin, immediately north of the UETA Duty Free store, facing southeast Phasing The actual construction and planting of the landscape medians will be completed by adjacent developers and will be installed at the time this development occurs. All development within the CSA will be required to pay annually into the CSA for maintenance of these medians. III. Mitigation Mitigation will be the actual construction and planting of the median islands at the time adjacent development occurs. Gateway of the Americas Service Area Plan Section 4.4 – Landscaping Facilities October 2018 Page 40 IV. Financing Current Funding Common area landscaping of primary, secondary, industrial, and commercial streets, currently within the outer street right-of-way (parkway areas), is installed by the developers of properties located adjacent to the right-of-way. The Gateway CSA Special Assessment fee is collected for maintenance of common area landscaping. The levy for common area landscaping in FY 2018–2019, at $1,548,13 is a fraction of the estimated annual cost of $7,855 for landscape maintenance of the initial benefit area,14 indicating, perhaps, that much of the planned common area landscaping of the initial area has not been installed, even though the initial area (Subphase I total assessed area 198 acres) has expanded to nearly 375 acres. Special Assessment funds for common area maintenance include maintenance of storm drains and storm water detention basins. The Gateway Specific Plan calls for the landscaping of medians at the intersections along SR-7 and SR-98 and at “special intersections” (Menvielle Road intersections with Nassif Road and Maggie Road). The Specific Plan indicated the Special Assessment would cover the cost of median/special intersection maintenance. Cost Avoidance Opportunities Cost avoidance opportunities include low-maintenance, low-water use landscape design within the medians and the parkways. Installation of the landscaping will be required of adjacent development as a condition of approval. Recommended Funding The CSA Special Assessment should be sufficient to cover the maintenance of future parkway landscaping if the future landscaping improvements are installed concurrently with new development. The Gateway CSA Special Assessment maximum levy will increase as more of the Gateway Specific Plan develops, which will make possible additional funding for landscape maintenance.15 However, the Special Assessment may not be sufficient to maintain median landscaping if implemented. The County should consider preparing a comprehensive landscape master plan for Gateway that includes a financing plan for buildout conditions that would evaluate the maximum potential for Special Assessment funding and the cost of maintaining all landscaping improvements and the storm water detention basins. Financing for the construction of landscape is provided by the developers of properties located adjacent to these medians within the CSA. The CSA is currently set up to collect monies for landscape maintenance. It is recommended that this vehicle be expanded to include the maintenance of landscape medians. 13 Gateway CSA assessment levy memorandum for FY 2018–2019, David Taussig & Associates, July 5, 2018. 14 For year 3 as reported in the Engineer’s Report for the Gateway CSA Special Assessment. 15 The Special Assessment is applied to additional parcels as developers request the services as they apply for development permits. A majority protest process is then conducted for each subsequent expanded benefit area (Subphases II, III, etc.). Gateway of the Americas Service Area Plan Section 4.4 – Landscaping Facilities October 2018 Page 41 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.4 – Landscaping Facilities October 2018 Page 42 Figure 4.4-216 16 Categories have been summarized for visual purposes. For their detailed descriptions based on the Landscape Master Plan section of the Gateway of the Americas Specific Plan, see page 45. This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.4 – Landscaping Facilities October 2018 Page 44 Landscape Plan Legend Detailed Descriptions The Gateway Specific Plan contains specific design criteria that has been summarized for visual purposes in order to highlight the areas that need future landscape improvements. The specific categories for the landscape as stated in the Specific Plan are as follows: 1. Gateway Entry Areas and Special Intersections (Gateway Entry and Gateway Special Intersection) Gateway Entry Areas and Special Intersections define the primary entry points to the “Gateway” and individual land use districts. The design intent of Gateway Entry Areas and Special Intersections is to identify visual nodes along Gateway Major and Gateway Collector streets. Gateway Entry Areas and Special Intersections should reflect the quality and image of adjacent developments. 2. Gateway Highways – SR-7 and Highway 98 (Highway Streetscape) Although the design, improvement and maintenance of these rights-of-way are obligation and responsibility of CalTrans, SR-7 and Highway 98 represent the first impression of the “Gateway” for visitors, and thus their design should have a prominent visual impact. 3. Gateway Primary and Gateway Secondary Medians (Gateway Primary and Gateway Secondary) Gateway Primary and Gateway Secondary streets bisect or front the majority of development parcels of the “Gateway”. 4. Gateway Industrial Collector and Local Streets (Industrial Streetscape) The majority of streets within the “Gateway” will be localized in character, meaning they will be oriented to and servicing individual industrial and commercial parcels. 5. Gateway Commercial (Commercial Streetscape) The Gateway Commercial Street is viewed as the primary vehicular and pedestrian street within the “Gateway”. Several prominent gateway entries and special intersections are located along the Gateway Commercial Street and along the District Main Street. Gateway of the Americas Service Area Plan Section 4.4 – Landscape Facilities October 2018 Page 45 P This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.4 – Landscape Facilities October 2018 Page 46 P 4.5 Streetlight Facilities Streetlights located along industrial and commercial streets within the specific plan area will be maintained by the CSA. Design guidance for streetlights is included in the Engineer Design Guidelines. This analysis is based on information provided by the Department of Public Works. I. Performance Standard In general, the County’s performance standard for streetlight facilities in Gateway is based on the adequacy and functionality of the streetlights to provide safety and night visibility. II. Facility Planning and Adequacy Analysis Inventory of Existing and Approved Facilities Streetlights along Highway 98 and SR-78 are maintained by Caltrans and outside the maintenance and control of the County. Streetlights are currently in place and are unevenly spaced on the following streets: • Rood Road • Maggio Road • Zinetta Road • Stergios Road • Carr Road • Clara Nofal • Menvielle Road • Mary Morino Road • Gateway Road • Nina Lee Road • Lach Road Adequacy of Existing Facilities The existing street light facilities are adequate for the existing commercial and industrial developments in the area. Future Demand for Facilities As development occurs, there will be a demand for more streetlights within the Gateway Service Area. Project developers shall be responsible for installation, including securing approval from IID. Opportunities for Shared Facilities Since streetlight facilities are localized, there is no opportunity for shared facilities with other entities. Phasing Streetlights will be constructed as developer-provided frontage improvements along all streets as adjacent land development occurs. Gateway of the Americas Service Area Plan Section 4.5 – Streetlight Facilities October 2018 Page 47 III. Mitigation Mitigation will be the actual construction and maintenance of the streetlights at the time adjacent development occurs. IV. Financing Current Funding The Gateway CSA currently funds the maintenance of streetlights from the Special Assessment. The FY 2018–2019 levy for streetlights is $12,569.17 Assuming the unit cost of maintaining a streetlight is approximately $18 per month,18 the area currently encompasses approximately 105-110 streetlights (the 2005 Service Area Plan indicated there were 41 existing streetlights, but much more development has occurred since then). Cost Avoidance Opportunities There are no cost avoidance opportunities within the CSA for streetlight maintenance. Recommended Funding The current maximum assessment allocated to streetlights is $12,569. At the current cost per unit of $18 per month, the CSA Special Assessment should be sufficient to cover the maintenance of an estimated 60 additional streetlights in the current benefit area. Furthermore, the Gateway CSA Special Assessment total levy will increase as more of the Gateway Specific Plan develops, which will make possible additional funding for streetlight maintenance and operations. 17 Gateway CSA assessment levy memorandum for Fiscal Year 2018–2019, David Tasssig & Associates, July 5, 2018. 18 Gateway Specific Plan Service Area Plan 2005. Gateway of the Americas Service Area Plan Section 4.5 – Streetlight Facilities October 2018 Page 48 Figure 4.4-3 Gateway of the Americas Service Area Plan Section 4.5 – Streetlight Facilities October 2018 Page 49 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 4.5 – Streetlight Facilities October 2018 Page 50 SECTION 5 – FINANCING 5.1 Introduction This section of the Service Area Plan discusses various financing mechanisms available to the Gateway CSA, how each existing facility is currently financed, and how future financial demands for these facilities can be ensured. The Gateway CSA is limited to specifically adopted revenue sources, including the Gateway CSA Special Assessment, the benefit impact fee, and the usage charges for water and sewer. Since the CSA was formed after Proposition 13, when the 1% property tax rate was allocated among the County General Fund, special districts, school districts, and other governmental entities existing at the time, there is no property tax allocation for Gateway. 5.2 Existing Revenue Sources County General Fund The County General Fund does not contribute any operating revenues for the services provided by the Gateway CSA described in this Service Area Plan. The County of Imperial provides general government services to the CSA, such as administration, police and fire protection, land use planning, building inspection, and street maintenance (through the County Public Works Road Fund). These County general government services are funded by sales taxes, property taxes, the Motor Vehicle In-lieu Fee, gas taxes, permit fees, licenses, user fees, fines, and penalties. Future growth in Gateway will lead to an increase in many of these revenue sources, along with a corresponding increase in general government service costs. The CSA operations appear to be on sound fiscal footing and there doesn’t appear to be an immediate need for County General Fund revenues. However, if, in the future, a string of operating deficits causing a drawdown of the CSA financial reserves were to occur, the County General Fund would need to subsidize the CSA’s operations. Special Revenue Development Impact Fees Also called mitigation impact fees, benefit impact fees, capacity fees, and system development charges, these fees are all collected for the purpose of constructing capital improvements to mitigate the impacts of new development. As discussed above, Gateway’s water and wastewater systems benefit from a development impact fee program. Special Assessment The Gateway CSA Special Assessment was approved by Board of Supervisors in 2001 for the purpose of funding water, sewer, street lighting, and common area landscape maintenance operations. The Special Assessment has also funded capital improvements. 5.3 Future Revenue Sources The possible use of the County General Fund under certain fiscal circumstances is discussed above. Other future revenue sources are discussed below. Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 51 Updated Water and Sewer Usage Fees Water and sewer usage rates may be increased subject to a majority protest procedure in accordance with Proposition 218. The CSA is currently undergoing a water and wastewater rate study to pursue a rate increase, if possible. Updated Development Impact Fees Development impact fees may be increased by a majority vote of the Board of Supervisors pursuant to the following findings, usually contained in an impact fee nexus report: 1. Identify the purpose of the fee. 2. Identify the use of fee revenues. 3. Determine a reasonable relationship between the fee’s use and the type of development paying the fee. 4. Determine a reasonable relationship between the need for the fee and the type of development paying the fee. 5. Determine a reasonable relationship between the amount of the fee and the cost of the facility attributable to development paying the fee. The last impact fee study for Gateway was adopted in July 2007. The resolution adopting the study provides that the fee will be increased on July 1 of each year based on the increase in the Engineering News Record Building Cost Index–Los Angeles Metropolitan Area. The impact fees might be due for a comprehensive update within the next 2 years. 5.4 Existing Financing Mechanisms Financing in the context of public facilities refers to the means of paying for facility improvements concurrent with the need. Facilities financing usually implies a stream of revenue that may be saved for future improvement projects (pay-as-you-go) or be used as debt service for loans or bonds. Gateway currently has bonded debt payments for the expansion of the water and sewer treatment plants and for the South Alamo Canal undergrounding project. These projects are financed by the Community Facilities District described above in the Sections 4.1, 4.2, and 4.3. Other potential financing sources are described below. County General Fund The Imperial County General Fund may provide loans to the CSA for capital improvements to be repaid from enterprise funds, special assessments, or property tax increments (see Enhanced Infrastructure Financing District below). Enterprise Funds The water and sewer usage rates provide limited annual surpluses that may be accumulated into a capital improvement fund for needed repairs and replacements. The portion of the usage rates that account for system depreciation may go into a capital replacement fund, which could be used to serve additional debt. Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 52 Developer/Builder Contributions Contributions from developers in the form of oversizing of facilities would occur on a case-by-case basis where system extension or expansion is required for project development. The developer fronting the cost of facilities in excess of the direct need for the project will typically enter into a reimbursement agreement in order to claim future benefit impact fee revenues. 5.5 Future Financing Mechanisms Community Facility Districts Future Gateway development may either form new CFDs or annex into existing CFD 98-1 and/or CFD 02-1. Approximately 300 acres remain of developable acreage not within one of the two CFDs. Formation of or annexation to a CFD and levy of a special tax will require the approval of the landowners. State and Federal Financing Sources State Revolving Fund (SRF) loans, the State Water Resources Control Board’s Small Communities Wastewater grant program, and loans from the US Department of Agriculture are potential sources of funding for Gateway capital improvements. Loans may be repaid from the Special Assessment and/or from the water and sewer usage charges. Enhanced Infrastructure Financing District By creating an Enhanced Infrastructure Financing District (EIFD), the property tax increment generated in Gateway may be diverted from the County General Fund and used to finance infrastructure projects. Senate Bill 628 (Government Code Section 53395, et seq.) was signed by the governor on September 29, 2014, and authorizes the legislative body of a city or county to establish an EIFD, adopt an infrastructure financing plan, and, if approved by a district’s voters, issue bonds to finance public capital projects and other specific projects of community-wide significance. Unlike the previous infrastructure financing districts, a popular vote is not required to form an EIFD. The legislative body is required to hold a public hearing before passing a resolution that adopts the infrastructure financing plan, and in turn, a resolution of formation creating the EIFD. Bonds may be issued upon approval of 55% of the qualified electors of the proposed EIFD. Enhanced Infrastructure Financing District financing may be considered a form of General Fund financing since the tax increment would otherwise go into the General Fund for general government purposes. EIFDs are able to divert property tax from any participating taxing entity, with the exception of school districts. 5.6 Facility Financing Drainage Facilities Current Funding Currently the Gateway CSA Common Area Maintenance Special Assessment is the only established source for drainage facility financing and as such, it provides very limited opportunity for capital improvements. Developers will continue to be required to construct drainage improvements that directly serve their projects. However, without a development impact fee to mitigate cumulative drainage impacts, required backbone drainage infrastructure will not be funded. Cost Avoidance Opportunities Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 53 Requiring future development projects to retain all or most of the increased runoff generated by the project on-site will reduce the impact on the backbone drainage system. Recommended Funding The County should consider studying and reinstating a drainage impact fee to provide funds for further backbone drainage improvements. Wastewater Facilities Current Funding The combination of the Gateway CSA Special Assessment for wastewater, the sewer usage charge, the development impact fee, the sewer capacity charge, and the bond proceeds of CFD 98-1 appear to provide the capability to fund needed backbone wastewater improvements for existing and future development in the short term. The construction of new sewer main extensions to serve new development will continue to be the responsibility of the new development that will connect to the new sewer mains. Cost Avoidance Opportunities The County requires developers to install sewer mains needed to serve their projects. This requirement helps the County to avoid substantial costs associated with the construction of wastewater infrastructure. Recommended Funding The County should consider an update of the sewer Benefit Impact Fees and sewer capacity fees to ensure funds will be available for backbone wastewater improvements including future wastewater treatment plant expansions, if necessary. Creation of new CFDs may be explored, although there may be limited potential, or need, for the formation of a new CFD rather than annexations to the existing CFDs. Water Facilities Current Funding As is the case for wastewater, the Special Assessment for water, the water usage charge, the development impact fee, the water capacity charge, and the bond proceeds of CFD 98-1 combine to provide the funding needed for backbone water improvements for existing and future development in the short term. The extension of the water distribution system to serve new development will continue to be the responsibility of the new development that will connect to the new water system. Cost Avoidance Opportunities Installation of low water use landscaping and other water conservation measures might reduce the need for future water treatment plant expansions. The County also requires developers to install water distribution systems needed to serve their projects. This requirement helps the County to avoid substantial costs associated with the construction of water infrastructure. The County currently allows the use of untreated canal water (“raw water”) to irrigate landscaping. Recommended Funding The County should consider an update of the water development impact fees and water capacity fees to ensure funds will be available for backbone water improvements including future water treatment plant expansions. Creation of new CFDs may be explored, although, as for wastewater, there may be limited potential, or need, for the formation of a new CFD. Landscaping Facilities Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 54 Current Funding The Common Area Maintenance Special Assessment appears to provide sufficient funds for the maintenance and operation of current landscaping and, as more property develops, the installation of new landscaping if it is of similar extent as the existing. Cost Avoidance Opportunities Installation of low water use planting and streetscape designs will reduce the water bills. Recommended Funding The Special Assessment allocation to common area maintenance is proportional to the annual budget for common area divided by the total levy. Currently, the common area expense averages about $129 per month.19 However, it is not certain whether this includes any maintenance of storm water detention basins, which is included in common area maintenance. It is evident that adding the installation and maintenance of median landscaping and special intersection treatments, as called for in the Gateway Specific Plan, would not be feasible under the current allocation. As an alternative, forming a new Lighting and Landscape Maintenance District could be considered for the median and special intersection landscaping. The cost of median maintenance has been estimated at approximately $2,900 per month.20 Street Lighting Current Funding The Special Assessment allocation for street lighting appears to provide sufficient funds for the maintenance and operation of current improvements and installation of new streetlights as future property develops. Cost Avoidance Opportunities Use of LED lighting in future installations, if not already implemented, may reduce costs. Recommended Funding Additional funding for street lighting, beyond the current allocation of the Special Assessment, does not appear to be necessary. 19 FY 2018–2019 detailed transaction report for Gateway CSA common area maintenance. 20 2005 Gateway Service Area Plan. Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 55 This Page Intentionally Left Blank. Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 56 APPENDIX A County of Imperial Special Tax Levy Community Facilities District No. 98-1 Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 57 APPENDIX B County of Imperial Special Tax Levy Community Facilities District No. 02-1 Gateway of the Americas Service Area Plan Section 5 – Financing October 2018 Page 58