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Lake County Vector Control District September 21, 2016

Local Agency Formation Commissions · lake-msr-2016-adopted-msr-soi-lake-county-vector-control-district-sept-9-2 · Msr · 2016-09-21

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LAKE LOCAL AGENCY FORMATION COMMISSION (LAFCo) ADOPTED September 21, 2016 LAKE COUNTY VECTOR CONTROL DISTRICT (LCVCD) MUNICIPAL SERVICE REVIEW (MSR) AND SPHERE OF INFLUENCE (SOI) LAFCo Resolution 2016-0010 – Service Review LAFCo Resolution 2016-0011 – Sphere of Influence LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI TABLE OF CONTENTS 1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Role and Responsibility of LAFCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Purpose of a Municipal Service Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.3 Purpose of a Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 LAKE COUNTY COMMUNITY BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1 Lake County History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Lake County Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 LAKE COUNTY VECTOR CONTROL DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.1 Lake County Vector Control District Background . . . . . . . . . . . . . . . . . . . . . . . 6 3.1.1 Services Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.1.2 Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.2 Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.3 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.3.1 Board Composition and Compensation . . . . . . . . . . . . . . . . . . . . . . . . 7 3.3.2 Board Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.4 Employees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.5 Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5.1 LCVCD Facilities Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5.2 LCVCD Esplanade Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5.3 LCVCD Todd Road Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.5.4 LCVCD Reclamation Road Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.5.5 LCVCD Capital Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.6 Finances and Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.6.1 LCVCD Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.6.2 LCVCD Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.7 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.7.1 Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.7.2 Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.7.3 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3.7.4 Cash on Hand in Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.7.5 Accrued Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.7.6 Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.7.7 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.7.8 Special Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.7.9 Joint Powers Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.7.10 Defined Benefit Pension Plan (Unaudited) . . . . . . . . . . . . . . . . . . . . 23 4 LAKE COUNTY VECTOR CONTROL DISTRICT MUNICIPAL SERVICE REVIEW 25 4.1 Growth and Population Projections for the Lake County Vector Control District Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4.1.1 Lake County Vector Control District Area Population Projections . . . 25 4.1.2 MSR Determinations on Growth and Population Projections for the Lake County Vector Control District Area . . . . . . . . . . . . . . . 26 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Lake County Vector Control District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 4.2.1 Determination of Lake County Vector Control District Area Disadvantaged Unincorporated Community Status . . . 26 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Lake County Vector Control District . . . . 26 1 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4.3 Capacity and Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4.3.1 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4.3.2 MSR Determinations on Infrastructure for Lake County Vector Control District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4.4 Financial Ability to Provide Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4.4.1 Financial Considerations for Lake County Vector Control District . . . 28 4.4.2 MSR Determinations on Financing for Lake County Vector Control District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4.5 Status of and Opportunities for Shared Facilities . . . . . . . . . . . . . . . . . . . . . . 28 4.5.1 District Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4.5.2 MSR Determinations on Shared Facilities for Lake County Vector Control District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4.6.1 Lake County Vector Control District Government Structure . . . . . . . 29 4.6.2 MSR Determinations on Local Accountability and Governance for Lake County Vector Control District . . . . . . . . . . . . . . . . . . . 29 5 SPHERE OF INFLUENCE UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 5.1 SOI Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 5.1.1 LAFCO's Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 5.1.2 SOI Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 5.1.3 Possible Approaches to the SOI . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 5.1.4 SOI Update Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 5.1.5 SOI Amendments and CEQA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 5.1.6 Recommendation for Sphere of Influence . . . . . . . . . . . . . . . . . . . . 33 5.2 Present and Planned Land Uses in the Area, Including Agricultural and Open Space Lands . . . . . . . . . . . . . . . . . . . . . . . . 33 5.2.1 General Plan and Zoning for Lake County Vector Control District SOI Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 5.2.2 SOI Determinations on Present and Planned Land Use for Lake County Vector Control District Area . . . . . . . . . . . . . 34 5.3 Present and Probable Need for Public Facilities and Services in the Lake County Vector Control District Area . . . . . . . . . . . . . . . . . . . . . 34 5.3.1 Municipal Service Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Lake County Vector Control District . . . . . . . . . . . 34 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5.4.1 Capacity Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Lake County Vector Control District . . . . . . . . 35 5.5 Social or Economic Communities of Interest for Lake County Vector Control District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5.5.1 Lake County Vector Control District Community Background . . . . . . 35 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Lake County Vector Control District . . . . . . . . . . 35 5.6 Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . 36 ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .38 .REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI PREPARERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 DISTRICT BOUNDARY AND SPHERE OF INFLUENCE MAP . . . . . . . . . . . . . . . . . . . . . . . .43 3 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 1 INTRODUCTION 1.1 Role and Responsibility of LAFCO The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, as amended (“CKH Act”) (California Government Code §§56000 et seq.), is LAFCo’s governing law and outlines the requirements for preparing Municipal Service Reviews (MSRs) for periodic Sphere of Influence (SOI) updates. MSRs and SOIs are tools created to empower LAFCo to satisfy its legislative charge of “discouraging urban sprawl, preserving open-space and prime agricultural lands, efficiently providing government services, and encouraging the formation and development of local agencies based upon local conditions and circumstances (§56301). CKH Act Section 56301 further establishes that “one of the objects of the commission is to make studies and to obtain and furnish information which will contribute to the logical and reasonable development of local agencies in each county and to shape the development of local agencies so as to advantageously provide for the present and future needs of each county and its communities.” Based on that legislative charge, LAFCo serves as an arm of the State; preparing and reviewing studies and analyzing independent data to make informed, quasi-legislative decisions that guide the physical and economic development of the state (including agricultural uses) and the efficient, cost-effective, and reliable delivery of services to residents, landowners, and businesses. While SOIs are required to be updated every five years, they are not time-bound as planning tools by the statute, but are meant to address the “probable physical boundaries and service area of a local agency” (§56076). SOIs therefore guide both the near-term and long-term physical and economic development of local agencies their broader county area, and MSRs provide the near-term and long- term time-relevant data to inform LAFCo’s SOI determinations. 1.2 Purpose of a Municipal Service Review As described above, MSRs are designed to equip LAFCo with relevant information and data necessary for the Commission to make informed decisions on SOIs. The CKH Act, however, gives LAFCo broad discretion in deciding how to conduct MSRs, including geographic focus, scope of study, and the identification of alternatives for improving the efficiency, cost-effectiveness, accountability, and reliability of public services. The purpose of a Municipal Services Review (MSR) in general is to provide a comprehensive inventory and analysis of the services provided by local municipalities, service areas, and special districts. A MSR evaluates the structure and operation of the local municipalities, service areas, and special districts and discusses possible areas for improvement. The MSR is intended to provide information and analysis to support a sphere of influence update. 1 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI A written statement of the study’s determinations must be made in the following areas: 1. Growth and population projections for the affected area; 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence; 3. Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence; 4. Financial ability of agencies to provide services; 5. Status of, and opportunities for, shared facilities; 6. Accountability for community service needs, including governmental structure and operational efficiencies The MSR is organized according to these determinations listed above. Information regarding each of the above issue areas is provided in this document. 1.3 Purpose of a Sphere Of Influence In 1972, LAFCos were given the power to establish SOIs for all local agencies under their jurisdiction. As defined by the CKH Act, “’sphere of influence’ means a plan for the probable physical boundaries and service area of a local agency, as determined by the commission” (§56076). SOIs are designed to both proactively guide and respond to the need for the extension of infrastructure and delivery of municipal services to areas of emerging growth and development. Likewise, they are also designed to discourage urban sprawl and the premature conversion of agricultural and open space resources to urbanized uses. The role of SOIs in guiding the State’s growth and development was validated and strengthened in 2000 when the Legislature passed Assembly Bill (“AB”) 2838 (Chapter 761, Statutes of 2000), which was the result of two years of labor by the Commission on Local Governance for the 21st Century, which traveled up and down the State taking testimony from a variety of local government stakeholders and assembled an extensive set of recommendations to the Legislature to strengthen the powers and tools of LAFCos to promote logical and orderly growth and development, and the efficient, cost-effective, and reliable delivery of public services to California’s residents, businesses, landowners, and visitors. The requirement for LAFCos to conduct MSRs was established by AB 2838 as an acknowledgment of the importance of SOIs and recognition that regular periodic updates of SOIs should be conducted on a five-year basis (§56425(g)) with the benefit of better 2 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI information and data through MSRs (§56430(a)). A MSR is conducted prior to, or in conjunction with, the update of a SOI and provides the foundation for updating it. LAFCo is required to make five written determinations when establishing, amending, or updating an SOI for any local agency that address the following (§56425(c)): 1. The present and planned land uses in the area, including agricultural and open- space lands. 2. The present and probable need for public facilities and services in the area. 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. 5. For an update of an SOI of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. 3 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 2 LAKE COUNTY COMMUNITY BACKGROUND 2.1 Lake County History Lake County was formed in 1861 from parts of Napa and Mendocino counties, but the area had European-American settlers from at least the 1840s. Lake County has long been known as a farming community. The 1911 California Blue Book lists the major crops as Bartlett pears and beans. Other crops include grain, alfalfa, hay, prunes, peaches, apples, grapes and walnuts. Stock raising included goats, hogs, turkeys and dairying.1 Some vineyards were planted in the 1870s by European Americans but the first in the state were established in the 18th century by Spanish missionaries. By the early 20th century, the area was earning a reputation for producing some of the world's greatest wines. However, in 1920, national Prohibition essentially ended Lake County's wine production. With authorized cultivation limited to sacramental purposes, most of the vineyards were ripped out and replanted with walnut and pear farms. A re-emergence of the wine industry began in the 1960s when a few growers rediscovered the area's grape-growing potential and began planting vineyards. The area has increased vineyards from fewer than 100 acres of grapevines in 1965 to more than 8,800 acres of vineyards today. Since the late 20th century, several American Viticultural Areas, such as High Valley AVA and Red Hills Lake County AVA, have been recognized as having distinct character. Many of the vineyards in Lake County today support sustainable farming practices. 2.2 Lake County Communities Within Lake County are two incorporated cities, Clearlake, the largest city; and Lakeport, the county seat. Other communities include the following: Anderson Springs Blue Lakes Clearlake Oaks Clearlake Park Cobb Finley Glenhaven Hidden Valley Lake Kelseyville Loch Lomond Lower Lake Lucerne Middletown Nice Clear Lake Rivieras Soda Bay Spring Valley Upper Lake Witter Spring The cities of Lakeport and Clearlake each have their own General Plan and Zoning. The remainder of the County and all of the smaller communities listed above are included in the County General Plan and the County Zoning Ordinance. 1 California Secretary of State, California Blue Book, 1911. p. 655. 4 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Lake County is primarily a rural county, with an economy based on agriculture and tourism. The population is 64,1842 which increases seasonally due to tourism. The boundaries of Lake County are a logical description of a region, as the County boundaries are essentially the watershed boundaries for the headwaters of the Eel River, Cache Creek and Putah Creek.3 The Lake County General Plan predicts a County population of 101,557 by 2030.4 2 US Census Bureau, http://quickfacts.census.gov/qfd/states/06/06033.html, February 22, 2016. 3 http://www.co.lake.ca.us/Assets/CDD/Stormwater+Mgt/Clean+Water+PDFs/Stormwater+Management+Plan.pdf 4 Lake County General Plan, Page 2-15. 5 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 3 LAKE COUNTY VECTOR CONTROL DISTRICT 3.1 Lake County Vector Control District Background5 3.1.1 Services Provided The Lake County Vector Control District’s Principal Act is The Mosquito Abatement and Vector Control District Law (California Health and Safety Code §§ 2000-2093). The District was formed on February 16, 1948. The District conducts surveillance of mosquitoes, ticks, biting black gnats, and other vectors in Lake County to determine the threat of disease transmission and to direct control activities. The District controls mosquitoes and occasionally other vectors to protect public health. In addition to these activities, the District offers identification and information about insects and vectors submitted by residents, and tick identification and disease testing. Major activities include various methods of adult mosquito control (e.g., the use of truck-mounted mist blowers and ULV Fogging) and larval control (e.g., treating small backyard sources, aerial larvicide applications to local rice fields, and distribution of mosquitofish to Lake County residents). In addition, the District engages in public awareness and education by speaking to local business associations and organizations, schools and at major county functions. Cooperation with other state and local agencies is another vital part of the District's operations. The District also owns and operates a fleet of vehicles and several small watercrafts to support various operating activities.6 3.1.2 Mission Statement The mission of the Lake County Vector Control District is to provide the citizens of Lake County with the highest practical level of protection from vectors and vector-borne diseases. In achieving this mission, the Lake County Vector Control District shall: • Be proactive in response to current and future vector threats. • Respond effectively and courteously to the needs of the public. • Inform and educate the public about the shared responsibility of vector control. • Apply scientific principles to monitor, evaluate, and improve the District’s ability to fulfill its mission. • Utilize the most effective and safest methods available for the control of vectors. • Provide vector control services in the most cost-effective manner. 5 Lake LAFCO, Lake County Vector Control District Questionnaire, July 21, 2015. 6 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 4. 6 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 3.2 Contact Information Contact Information for the Lake County Vector Control District is as follows: Administrator: Jamesina J. Scott, Ph.D., District Manager and Research Director Administrator’s e-mail address: jjscott@lcvcd.org Mailing: PO Box 310, Lakeport, CA 95453 Physical: 410 Esplanade, Lakeport, CA 95453 Office Hours: 7:30 A.M. to 4:00 P.M. Monday to Friday Website: www.lcvcd.org Telephone: (707) 263-4770 3.3 Board of Trustees 3.3.1 Board Composition and Compensation The Lake County Vector Control District Board and its composition are defined in §§ 2020-2030 of the California Health and Safety Code (HSC). A Vector Control District board has a minimum size of five trustees. Each county and incorporated municipality within the District appoints one trustee; if those appointments result in a board of trustees with less than five trustees, the board of supervisors shall appoint enough additional persons to make a board of trustees of five members. In Lake County, the cities of Clearlake and Lakeport each appoint one trustee, and the County of Lake appoints the remaining three to meet the required minimum board size. The members of the Board of Directors are as follows: City of Clearlake Curt Giambruno (President) Lake County Chuck Leonard City of Lakeport George Spurr Lake County Ronald G. Nagy (Secretary) Lake County Rob Bostock Terms begin/expire at noon on the first Monday in January. Terms last for two or four years, at the discretion of the appointing body. Any person appointed to fill a vacant office shall fill the balance of the unexpired term (HSC § 2024). The members of the board of trustees may receive their actual and necessary traveling and incidental expenses incurred while on official business. In lieu of paying for actual expenses, the board of trustees may by resolution provide for the allowance and payment to each trustee a sum not to exceed one hundred dollars ($100) per month for expenses incurred while on official business. A trustee may waive the payments permitted by this subdivision. (HSC § 2030). Each LCVCD Board member receives $100 per month in lieu of expenses. This was set by Resolution 11-06 in July 2011. 7 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 3.3.2 Board Meetings Public notification of board meetings is done in compliance with the Brown Act. The Board meets at 1:30 PM on the second Wednesday of each month at the District Office (410 Esplanade, Lakeport, CA 95435). Time for citizens’ input is provided at the beginning of each Board meeting, and the Board President also calls for citizen comment on agenda items. The District’s outreach program includes participation in public events, and presentations to schools, community groups, and local agencies. The District issues media releases throughout the year about mosquito and West Nile Virus activity and steps that residents can take to reduce their risk of mosquito bites. The District Manager, Office Manager, and trustees are provided with a copy of the Brown Act and participate in AB1234 training every two years. The District Manager reviews the Brown Act with new trustees as part of their introduction to the District. The District Manager and Office Manager also participate in supplementary training and keep the trustees apprised of updates made by the legislature or court decision. The agendas for the District’s monthly board meetings are posted on the website and physical copies are posted in two publically accessible locations at the 410 Esplanade location (the window in the lab building facing Esplanade, and the window to the right of the main entrance of the Admin building) at least 72 hours in advance of each meeting. Agendas for special meetings are posted at least 24 in advance on the website, www.lcvcd.org, and at the same physical locations. Agendas and agenda packets are mailed to people or agencies that request them. Additional copies are available at each meeting. 3.4 Employees and Services The District has eight full-time regular employees and from one to three seasonal employees as needed. Residents requesting service are notified by the assigned technician either by telephone or in person. For large operations, potentially affected property owners/managers and local agencies are notified before the operation. For example, when the District uses an airplane to apply mosquito larvicide to the wild rice, the District notifies the Lake County Sheriff’s dispatch and the rice farmer. If wider notification is needed, the District distributes news releases. For example, in March 2011, the District made an aerial application to control mosquito larvae in the wetlands that flooded when the lake reached 9.37 feet Rumsey. This was an unusual and highly noticeable application, so the District prepared a news release explaining the purpose of the flight, what people should expect, and the number to call if they had questions. The news releases were distributed to the local media and government 8 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI agencies. The flight date had to be rescheduled due to weather, and updated releases were distributed. 3.5 Facilities 3.5.1 LCVCD Facilities Overview7 The District has three facilities as follows: 1. 410 Esplanade: This consists of two parcels that house the District’s Administrative Building, Laboratory, and Garage/Workshop. This is the District’s main facility, where all employees report each day. 2. 610 Todd Road: This site is used for storage, mosquitofish production, and projects that cannot be completed at Esplanade. 3. Reclamation Road: This lies within the Reclamation District. The District maintains one of its sentinel chicken flocks and a mosquito light trap at this site. Planned improvements to the facilities are as follows: 610 Todd Road: The District is in the process of constructing a new storage building to replace the current pesticide storage building and a previously demolished storage building . This project is estimated to be completed by December 2016. 410 Esplanade: The District’s plan for the last 18 years has been to demolish the existing laboratory building and replace it with an addition to the Administration building, however because the City of Lakeport recently denied the District’s request to amend the General Plan and zoning designation of the Esplanade parcels, the District is now addressing maintenance of the Laboratory building that has been deferred. The District sets aside a portion of each year’s revenues to fund capital improvements, and once adequate funds are available the project is scheduled. Facilities are not shared with other agencies on a permanent basis. However, the District shares its facilities with other agencies for limited-term projects that do not conflict with the District’s operations. For example, Lake County Water Resources occasionally requires lab space for work with collaborating agencies, and the District has been able to arrange activities to allow them use of part of the laboratory. 3.5.2 LCVCD Esplanade Facility The LCVCD Esplanade Facility now consists of two parcels; three contiguous district- owned parcels were merged in April 2014 to create a single parcel. The present LCVCD Main Office property on Esplanade and corner parking lot were purchased in 7 Lake County Vector Control District, Agenda Item #9, Review and Discussion of District Capital Improvements Plan, March 2015. 9 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 1954. The waterfront location was selected because the District required a location that would allow the staff to work with Chaoborus astictopus (Clear Lake Gnat) in its natural habitat, maximize their time spent working on the Lake, and provide a location for tethering the barges used to treat the Lake. The original pier was extended by 100 feet in 1963, and was replaced by the present pier in the 1980s. The present pier was rebuilt in winter 2008-09 and the boat launch deck was rebuilt in 2011-12. The garage/shop property on Esplanade was purchased in 1961. The steel building that serves as the LCVCD’s garage and shop facility was erected in 1962. The shop extension and small garage on the east side were added later. Today this garage serves as secure parking for the operational vehicles and a workshop for building and repairing equipment and vehicles. In December 2011, the District purchased the property at 35 C Street. The acquisition of this property provided much-needed space for the anticipated replacement of the existing laboratory building, as well as providing room for off-street parking for District vehicles and for planned ADA-compliant parking. In compliance with the City of Lakeport’s abatement order, the existing dilapidated structure was demolished in early 2012. The property was graded and fenced, and is presently used as secure, off-street parking for District vehicles. The District completed a voluntary lot merger of parcels A, B, and C in April 2014, and applied to the City of Lakeport for amendments to the zoning and general plan that would correctly categorize all of these parcels as Public and Civil Use (PCU). The Lakeport City Council considered the amendments at its March 3 and April 7, 2015 meetings, and voted to reject the amendments. The general plan and zoning plan amendments must be adopted in order for the District to begin improvements to the property. If the amendments had been adopted, then the District would have been able to remove the existing antiquated laboratory/operations building, and replace it with a modern, compliant facility. The new facility would be built as an addition to the District’s existing Administrative building. This addition would allow the District to improve the universal accessibility of its laboratory/operations facility and provide space for off-street accessible parking in compliance with the Americans with Disabilities Act (ADA). The addition would follow the architectural style of the current administrative building and be compatible with the residential character of Esplanade Street. Once that project is completed, the District planned to replace the present steel garage/shop building with a secure, enclosed garage for parking District vehicles that would extend into the present parking area on the former 35 C Street lot. The main purpose of this replacement structure would be to park District vehicles in a secure, enclosed structure. The District’s workshop, which is located in the existing garage, will be relocated to the District’s Todd Road facility this winter. The appearance of the 10 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI replacement garage would also be compatible with the residential character of Esplanade Street and other nearby residences. The District is reviewing its options for improvements to the Esplanade Facility that will be allowed under its present zoning and general plan designations. 3.5.3 LCVCD Todd Road Facility The Todd Road property is located at 610 Todd Road, just outside the Lakeport city limits, northwest of the intersection of Parallel Drive and Todd Road. The District purchased this property in 1962 to provide a location for evaluating various control strategies for Chaoborus astictopus. The property is 2.89 acres, and is divided by a natural creek near the north end. The adjacent properties have been developed since the District purchased the property in 1962. The First Five Lake County Office abuts the property to the east and north, and small-acre residential properties are to the north, west, and across Todd Road. This property is outside the Lakeport city limits, has electrical and telephone service, but has no water or sewer service. Eleven ponds were constructed on this site for Chaoborus studies, and an agricultural well was dug to provide water for the ponds. The ponds were repurposed for rearing mosquito fish, a purpose for which the property is well suited. However, when the ponds were originally dug, the water table was high enough that the ponds naturally held water. Over the years, nearby development revealed that the ground is quite porous and required more pumping to maintain water levels required for mosquito fish rearing. Except during the wettest months, the well pump was run several days per week. A covered storage building originally served as an enclosure over one of the Chaoborus ponds. The pond was later filled in, the enclosure was reinforced and expanded, and provided limited covered storage for some vehicles and equipment until it was removed at the end of 2013. The District’s secure pesticide storage building is also located at this site. In 2013-14, the District began making improvements to the property. A septic system was installed, the property was graded, and the old ponds were replaced with three lined ponds. The District is in the process of building a steel garage/workshop and pesticide storage building along Todd Road at the south end of the property. That project is expected to be completed by December 2016. 3.5.4 LCVCD Reclamation Road Facility The District acquired the property at 8155 Reclamation Road in 1985. It is approximately 10 acres and has several small ponds that were used for a series of studies on mosquito control in wild rice. Presently the District uses this property as a 11 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI mosquito and tick surveillance and study site, and a secure location for one of the District’s sentinel chicken flocks. Because of its distance from residences, it is also used for calibrating equipment. It has a single electrical pole, but no water or sewer service. This property sits within the Reclamation District and is not suitable for development. 3.5.5 LCVCD Capital Improvement Plan For more than 30 years, this Board has intended to replace the aging laboratory building with an updated compliant structure that would allow its employees to function more efficiently and safely. This improvement would include laboratory space and technician space. A lack of funding limited progress toward replacing the present laboratory for most of this time. The District set aside enough funding to build the present Administrative Building in the mid-1990s, and the Board intended to complete the laboratory a few years later. However, in the 1990s, the State of California enacted legislation that shifted partial financial responsibility for funding education from the State to local government. This shift, known as Educational Revenue Augmentation Funds (ERAF), diverted funds from local agencies’ shares of the ad valorem property taxes to pay for the state’s obligation to education funding. The three local redevelopment agencies in Lake County further reduced the LCVCD’s annual revenues, and the District was not able to set aside funds to replace the laboratory building. In addition, vehicle replacements, facilities upkeep, and other necessary maintenance projects were deferred. In 2008, the District was at the point of either making long-overdue and necessary repairs, maintenance, and replacement of its aging facilities and equipment or cutting services. In 2009, Lake County property owners approved an annual benefit assessment for vector control. The benefit assessment funds offset the funds diverted to ERAF and RDA and allowed LCVCD to continue providing services to residents and to contribute to a building fund for the eventual replacement of the laboratory building. The funds from that benefit assessment are intended to restore and improve services that had been cut due to shifts of its ad valorem property tax dollars to ERAF and redevelopment agencies, and to fund the replacement of the district’s antiquated laboratory/operations building with a modern, compliant facility. Although denied by the City, the LCVCD staff is planning to meet with the neighbors this fall to further discuss the Esplanade facility in hopes of gaining support to revisit the general plan and zoning. Should the General Plan and rezoning be approved, the LCVCD can begin to develop specific plans for the Esplanade Facility including the following: • Replace antiquated laboratory building with a modern compliant laboratory/operations facility that is efficient, safe, complies with necessary safety 12 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI requirements for our work, and will allow this agency to meet our community’s vector control needs for decades to come. Ideally this building will: • Tie lab/operations building into the existing administrative building; • Provide Vector Control Technicians with desk space and telephones; • Provide adequate workspace for the laboratory; • Meet BSL-2 (Biosafety Level 2) and other applicable safety standards for working with vectors and pesticides in a laboratory setting; • Comply with the City’s parking requirements, including ADA-compliant parking. • Replace existing garage/shop building to provide secure off-street parking for all LCVCD vehicles (presently 4-6 vehicles remain parked outside in the gated yard on nights and weekends), and improve the width and visibility with wider vehicle entryways for increased safety. The District’s plans to improve the Todd Road Facility will largely be completed this year, and include the following: • Construction of steel building • Secure storage of District vehicles (boats, trailers, ATV, ARGO, and mist blower trucks) and equipment. • Workshop for maintenance, repair, and fabrication of equipment. • Construction of pesticide storage facility that includes covered mix/load area. • Improved mosquito fish rearing facility. No improvements are planned for the Reclamation Road site, since it sits within the Reclamation District. Review and Discussion of District Capital Improvements Plan March 2015: This District has a long history of paying for its capital improvements through careful financial planning to build up its reserve funds so that it can pay cash rather than financing and paying interest. This policy ensured that the District had adequate funds to purchase the C Street property when it became available, and cover the costs associated with its purchase. These improvements are intended to occur as the District saves enough in its reserves to pay for each capital improvement. The District’s budget for 2014-15 allocated $900,000 to Buildings and Improvements for the Todd Road project; 13 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI $392,477.04 has been expended this year, leaving $507,522.96. The Todd Road project is expected to be completed after July 1, 2015, which is the start of new Fiscal Year 2015-16. Unexpended funds may be carried over to the next fiscal year. The FY 2014-15 budget allocates $85,000 in Building Reserves. The District will begin building its reserves again at the rate of approximately $250,000 year, and should have the adequate reserves to begin improvements to the Esplanade facility in 4-5 years. The above projects were envisioned to occur in three phases: 1) Improvements to the Todd Road facility; 2) Replacement of the existing lab building; and 3) Replacement of the garage on Esplanade. We anticipate that the Todd Road project will be completed by December 2016. The District and the City of Lakeport completed the voluntary lot merger in April 2014, but the the zoning and general plan amendments were rejected by the Lakeport City Council in April 2015. The zoning and general plan amendments must be in place before any of the planned improvements to the Esplanade facility can begin. If the amendments are approved, we can begin the planning process, which will help to determine the cost of the project and the expected start date for construction. The District will begin building its reserves for improvement to the Esplanade Facility, and consider its options for improving this site under the present zoning and general plan designations. The improvements to Todd Road will provide a good site for locating a temporary trailer so that the laboratory can continue functioning during any improvements to the Esplanade facility. This sequence has allowed the District to make progress toward its overall facility improvement goals while completing the administrative procedures with the City of Lakeport. 3.6 Finances and Budget 3.6.1 LCVCD Financial Overview The District is funded by a portion of the ad valorem property taxes, a benefit assessment, and timber yield tax. For items that are included in the budget, District Policy 3080 Purchasing establishes the procedures as follows: 3080.1 To purchase small items - such as office supplies, auto parts, and other miscellaneous items costing less than $500 - vendors may be asked to submit pricing information by telephone or written quotation or comparative prices may be obtained online. District accounts or purchases are then awarded to those firms that provide the best overall prices, taking in to account discounts, delivery costs, etc. 3080.2 To purchase items costing more than $500 and up to $30,000, quotations will be solicited from vendors and received by fax, mail, or 14 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI email, preferably from two or more sources, prior to selecting a supplier and processing a purchase. The District Manager must approve purchases. 3080.3 For items over $30,000 or large quantity orders, the District will provide suppliers with a list of items to be purchased. Suppliers will provide written quotes for consideration by the District Manager. The District Manager shall determine the lowest responsible bidder, and will approve the purchase. 3080.3.1 “Lowest responsible bidder” as used in this section, shall mean that bidder which submits a timely, complete, and fully responsive bid and which best responds in price, quality, service, fitness and capacity to meet the particular requirements of the District. Price alone shall not be the determinative factor, but shall be considered along with the other factors including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience with the bidder, and any other factors relating to the particular needs of the District for the supplies and/or equipment to be purchased. 3080.4 Vehicles will be purchased by competitive quotation bids in accordance with section 3080.2. The District does not presently have an investment policy. The District Manager is preparing an investment policy for Board review. 3.6.2 LCVCD Budget The Lake County Vector Control District Budget is shown below in two sections, Revenue and Expenses. Property tax and the special assessment are the two primary sources of income. LAKE COUNTY VECTOR CONTROL DISTRICT BUDGET REVENUE 2015-2016 2013-14 2014-15 2015-16 Actual Actual Adopted 10-70 Timber Yield Tax 103 196 190 10-10 Current Secured Property Tax 1,137,333 1,122,260 1,127,358 10-20 Current Unsecured Property Tax 25,906 26,457 28,647 10-25 Supplemental 813-Current (5,801) 462 (3,200) 10-35 Supplemental 813-Prior 2,511 1,343 1,200 10-40 Prior Unsecured Property Tax 645 807 700 31-95 Penalties/Cost on Delinquencies 11 12 1,000 42-01 Interest 11,339 8,280 12,000 54-60 HOPTR 15,421 15,279 15,259 66-40 Assessment and Tax Collection 485,895 496,038 496,000 79-90 Miscellaneous 2,420 3,261 0 79-91 Cancelled Checks 1,526 0 0 79-60 Sale of Fixed Assets 0 1,051 0 15 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 90-01 Miscellaneous 170 674 0 TOTAL REVENUE 1,677,479 1,676,120 1,679,154 16 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI LAKE COUNTY VECTOR CONTROL DISTRICT BUDGET EXPENSES 2015-2016 2013-14 2014-15 2015-16 Actual Actual Adopted Salaries and Employee Benefits 01-11 Permanent 509,175 515,852 535,000 01-12 Extra Help 38,782 37,006 58,000 01-14 Other, Term 6,000 6,000 6,200 02-21 FICA 87,834 89,799 93,000 02-22 PERS 129,844 148,808 179,000 02-23 PERS-County Paid Employee Con. 41,810 40,248 47,000 03-30 Health/Life 126,119 129,181 145,000 03-31 Unemployment 4,550 4,319 6,500 04-00 Worker’s Compensation 27,169 25,674 27,100 Services and Supplies 11-00 Clothing, Personal Supplies 2,825 2,260 4,500 12-00 Communications 6,995 1,398 3,500 14-00 Household Expense 2,272 2,937 5,500 15-10 Other 23,338 18,871 21,000 17-00 Maintenance-Equipment 22,420 21,140 20,000 18-00 Maintenance-Buildings/Improvement 6,592 27,680 56,000 19-40 Medical Supplies 11,858 16,136 16,500 19-43 Encephalitis Treatment 0 0 0 20-00 Memberships 12,785 13,278 16,000 21-00 Miscellaneous Expense 0 0 0 22-70 Supplies 4,939 5,978 8,000 22-72 Books, Periodicals 505 759 1,200 23-80 Professional, Specialized Services 72,208 84,429 80,000 24-00 Publications, Legal Notices 416 90 500 25-00 Rents/Leases Equipment 4,920 5,306 6,500 27-00 Small Tools and Instruments 1,090 293 6,700 28-30 Supplies and Services 171,414 115,313 140,000 29-50 Transportation and Travel 10,094 9,176 13,000 30-00 Utilities 15,223 14,297 17,500 38-00 Inventory Items 2,627 10,206 25,000 Other Charges 48-00 Taxes and Assessments 1,195 1,284 1,400 Capital Assets 61-60 Current 38,779 418,738 900,000 62-72 Autos and Light Trucks 22,625 28,826 35,000 62-73 Shop 0 28,110 0 62-74 Other 0 0 53,000 Contingencies 90-91 Contingencies 0 0 50,000 Total Expenditures/Appropriations 1,406,403 1,823,392 2,577,600 Net Cost (271,076) 147,272 898,446 17 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI The revenue shown above in the first table is not sufficient to provide for the expenses shown in the second table. However, in Fiscal Year 2013-14, the carry over balance was $1,649,924.00.8 For 2015-16 the District reduced the reserve by $190,538 as follows: LAKE COUNTY VECTOR CONTROL DISTRICT RESERVES LCVCD Reserves Decreases Adopted Reserves for 2015-2016 June 30, 2015 Budget year General $1,562,010 $190,538 $1,371,472 Building $85,000 $85,000 Total $1,647,010 $1,456,472 The Valley Fire reduced the LCVCD’s revenues by an estimated $66,759.65 for FY 2015/16 ($47,628.59 in Property Tax revenue and $19,131.06 in Benefit Assessment revenue). It is likely that the LCVCD will continue to see reduced property tax and benefit assessment revenues from these parcels in FY 2016-17 and subsequent years, but it is too soon to know the actual fiscal impact on the LCVCD. Although many homes were destroyed, many new mosquito habitats were created (damaged septic systems, in-ground swimming pools and water features that lost their pump/filter systems, foundations, and other low areas that hold water), so the LCVCD continues to work in these areas, but with less revenue to support its activities there. 3.7 Audit9 3.7.1 Fund Balance A budget is a plan for spending. The Audit shows the funds actually spent. The following table shows the Balance for the Lake County Vector Control District as of June 30, 2014 and June 30, 2015. LAKE COUNTY VECTOR CONTROL DISTRICT BALANCE JUNE 30, 201410 June 30, 201511 ASSETS Cash on hand and in Banks $2,515,017 2,375,608 Accounts Receivable $5,837 552 TOTAL ASSETS $2,520,854 2,376,160 8 Lake County Vector Control District, Letter to Board of Directors from District Manager, JamesinaJ. Scott, Ph.D. August 7, 2014. 9 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014. 10 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 9. 11 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 9. 18 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI LIABILITIES Accounts Payable $61,937 24,981 TOTAL LIABILITIES $61,937 24,981 FUND BALANCE Unassigned $881,150 753,049 Restricted-Special Assessment $1,492,767 1,513,130 Assigned $85,000 85,000 TOTAL FUND BALANCE $2,458,917 2,351,179 These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the District's assets and liabilities, including capital assets as well as infrastructure assets and long-term liabilities, are included in the Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the District are reported in three categories as follows: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.12 The following table shows the Revenues and Expenditures for the Year ending June 30, 2014 and the Total Fund Balance at the end of the fiscal year. LAKE COUNTY VECTOR CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE JUNE 30, 201413 June 30, 201514 REVENUES Special Assessment 489,509 490,753 Other Revenue 4,116 3,886 Taxes and Intergovernmental 1,176,128 1,166,817 Use of Money and Property 11,339 8,280 TOTAL REVENUES 1,681,091 1,669,735 EXPENDITURES Fixed Assets 61,404 475,675 12 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 14. 13 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 10. 14 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 10. 19 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Insurance 23,338 18,871 Maintenance 29,012 48,820 Professional Fees 72,208 75,805 Salaries and Employee Benefits 964,603 990,781 Services and Supplies 256,859 153,225 Utilities 15,223 14,297 TOTAL EXPENDITURES 1,422,647 1,777,474 NET CHANGE IN FUND BALANCE 258,444 (107,738) FUND BALANCE BEGINNING OF YEAR 2,200,473 2,458,917 FUND BALANCE, END OF YEAR $2,458,917 $2,351,179 Although the fund balance decreased from the previous year, the Lake County Vector Control District is not in the business of acquiring wealth but in providing vector control so fund availability may vary from year to year. 3.7.2 Net Position LAKE COUNTY VECTOR CONTROL DISTRICT STATEMENT OF NET POSITION June 30, 201415 June 30, 201516 6- 30-2013 6-30- 2014 6-30-2015 ASSETS Current Assets: Cash on Hand and in Banks 2,242,483 2,515,017 2,375,608 Accounts Receivable 2,223 5,837 552 TOTAL CURRENT ASSETS 2,244,705 2,520,854 2,376,160 Fixed Assets: Land 105,295 105,295 105,295 CIP 14,543 53,321 472,058 Buildings and Improvements 565,418 565,418 565,418 Equipment 588,245 610,870 650,714 Less: Accumulated Depreciation (594,768) (622,270) (619,981) TOTAL FIXED ASSETS 678,733 712,634 1,173,504 TOTAL ASSETS 2,923,438 3,233,488 3,549,664 Total Deferred Outflow 8,824 Total Assets and Deferred Outflows 3,558,488 LIABILITIES Current Liabilities Accrued Payroll 61,758 81,600 84,291 Accounts Payable 44,233 61,937 24,981 Net Pension Liability 1,315,131 Total Current Liabilities 105,991 143,537 1,424,403 15 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 11. 16 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 11. 20 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Total Deferred Inflows* 335,770 Total Liabilities and Deferred Inflows 1,760,173 NET POSITION Net Investment in Fixed Assets 678,733 712,634 1,173,504 Unrestricted 2,138,715 2,377,316 624,811 TOTAL NET POSITION 2,817,448 3,089,950 1,798,315 *Difference between actual and expected investments. The difference between governmental assets and liabilities is reported as net assets.17The District’s net position as shown above represents the difference between its assets and liabilities in the statement of net position. Net position is reported as restricted when there are legal limitations imposed on their use by their source. Portions of the unreserved net assets or fund balance may be designated to indicate tentative plans for financial resources utilization in a future period, such as for general contingencies, purchase of capital assets or debt service, Such plans or intent are subject to change and may never be legally authorized or result in expenditures.18 7.3.3 Statement of Activities The following table shows the expenditures compared to the revenues. The largest expense is salaries and employee benefits. This is the case for most service-oriented agencies. LAKE COUNTY VECTOR CONTROL DISTRICT STATEMENT OF ACTIVITIES JUNE 30, 201419 June 30, 201520 General 6-30-2013 6-30-2014 6-30-2015 EXPENSES Depreciation 23,215 27,502 13,435 Insurance 21,165 23,338 18,871 Maintenance 29,820 29,012 48,820 Professional Fees 71,197 72,208 75,805 Salaries and Employee Benefits 935,214 984,445 955,484 Services and Supplies 221,512 256,861 153,225 Utilities 15,052 15,223 14,297 TOTAL EXPENSES 1,317,174 1,408,589 1,279,937 REVENUES Program Revenues 17 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 15. 18 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 17. 19 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling &Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 12. 20 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 12. 21 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Special Assessment 485,827 489,509 490,753 Other Revenue 11,744 4,116 3,886 Total Program Revenues 497,571 493,625 494,639 General Revenues Taxes and Intergovernmental 1,195,967 1,176,128 1,166,817 Use of Money and Property 12,958 11,339 8,280 Total General revenues 1,208,925 1,187,466 1,175,096 TOTAL REVENUES 1,706,496 1,681,091 1,669,735 Net Change in Net Position 389,322 272,502 389,799 Net Position, Beginning of Year 2,428,126 2,817,448 3,089,950 Prior-Period Adjustment (1,681,434) Net Position, End of Year 2,817,448 3,089,950 1,798,315 The above table shows clearly that taxes provide the most important and largest part of the revenue for the Lake County Vector Control District. 3.7.4 Cash on Hand in Banks21 The District's deposits are entirely covered by federal depository insurance (FDIC). The FDIC currently insures the first $250,000 of the District's deposits at each financial institution. In addition the District maintains its cash in a pool managed by the County of Lake Treasury. The County Treasury, in turn, invests its cash with the State of California in the Local Agency Investment Fund as well as other banking institutions. The District does not own any specific identifiable investments in the pool. The risk of loss is minimal. The District has no adopted policy regarding interest rate risk. At year end, the District had the following investments and maturities: LAKE COUNTY VECTOR CONTROL DISTRICT INVESTMENT MATURITIES June 30, 2014 June 30, 201522 Investment Type Fair Value Cash-petty $250 $250 Cash-County $2,502,197 $2,354,918 Cash-Wells Fargo Bank $12,750 $20,441 Total $2,515,017 $2,375,608 3.7.5 Accrued Payroll Upon termination of employment or retirement the District pays to the employee any unused vacation time, which has been accrued and a maximum of $2,500 for any unused sick leave upon retirement or $2,000 upon termination. 21 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 16. 22 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 16. 22 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 3.7.6 Fixed Assets Capital assets, which include property, plant, and equipment, infrastructure assets (e.g. roads, bridges, sidewalks and similar items), and intangible assets (i.e., water rights) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 (not rounded) and an estimated useful life in excess of one year. Property, plant and equipment purchased or acquired is carried at historical cost or estimated historical cost. Donated or contributed capital assets are recorded at their estimated fair value on the date received. The assets are depreciated over their estimated useful life ranging from 5 to 30 years. The costs of normal maintenance and repairs are charged to operations as incurred. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. 3.7.7 Risk Management The District is exposed to various risks of loss related to torts; damage to, and theft or destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 2014, the District contracted with private insurance agencies through the Vector Control Joint Powers Agency (VCJPA) for liability, property, crime damage, and employee and director insurances. 3.7.8 Special Assessment23 In 2011 the voters passed a special benefit assessment to be used for mosquito abatement. The following is a statement of revenues and expenditures for the special assessment fund. It is anticipated that the fund balance will be used for capital improvements at the District. Receipts: June 30, 2014 June 30, 201524 Special Assessment $489,509 $496,308 Total Receipts $489,105 $496,308 Disbursements Fixed Assets $61,404 $475,675 Total Disbursements $61,404 $475,675 23 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling &Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 19. 24 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 12667 Granite Drive, Truckee, CA 96161, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2015, Page 19. 23 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Excess (Deficit) of Receipts Over Disbursements $428,105 $20,363 Beginning Balance $1,064,662 $1,492,767 Ending Balance $1,492,767 $1,513,130 3.7.9 Joint Powers Agreement The District participates in a joint venture under a joint powers agreement (JPA) with the Vector Control Joint Powers Agency (VCJPA). The relationship between the District and the JPA is such that is not a component unit of the District and the JPA is not a component unit of the District for financial reporting purposes. The JPA's purpose is to jointly fund and develop programs to provide comprehensive and economical funding of property, general liability, workers compensation, auto physical damage, property, employment practices, and business travel accident coverage. This program is provided through collective self-insurance; the purchase of insurance coverages; or a combination thereof. Copies of VCJPA annual financial reports may be obtained from their executive office at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. 3.7.10 Defined Benefit Pension Plan (Unaudited) 25 The District entered into the Public Employees Retirement System (PERS). Qualified employees are covered under a multiple-employer defined benefit pension plan maintained by an agency of the State of California. Employees are members of the Public Employees' Retirement System. Plan Description: The District contributes to the PERS, an agent multiple- employer public employee defined benefit plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and district ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office, 400 P Street, Sacramento, CA 95814. The District has both Classic and PEPRA members. Funding Policy: In compliance with the Public Employee Pension Reform Act (PEPRA) that took effect in 2013, “New” members are required to contribute 6.25% of their annual covered salary and the District contributes 6.25% for the Employer-required portion. For Classic CalPERS members, The District makes the contributions required of District employees on their behalf and 25 Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling &Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014, Page 20. 24 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI for their account. The District is required to contribute at an actuarially determined rate ; the current rate is 23.807% for misc. employees of annual covered payroll. The contribution requirements of plan members and the District are established and may be amended by PERS. Annual Pension Cost: For June 30, 2014, the District's annual pension cost of 24,108% $171,654 for PERS was equal to the District's required and actual contributions. For June 30, 2013, the District's annual pension cost of 23.307% of payroll for PERS was equal to the District's required and actual contributions. For June 30, 2012, the District's annual pension cost of 21.794% of payroll for PERS was equal to the District's required and actual contributions. 25 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4 LAKE COUNTY VECTOR CONTROL DISTRICT MUNICIPAL SERVICE REVIEW 4.1 Growth and Population Projections for the Lake County Vector Control District Area26 Purpose: To evaluate service needs based on existing and anticipated growth patterns and population projections. 4.1.1 Lake County Vector Control District Area Population Projections The following table shows that the Lake County population declined slightly from 2015 to 2016. Although slow population growth is expected in the future, the number of tourists is expected to increase. LAKE COUNTY POPULATION CHANGE 2015 TO 201627 Percent 1/1/2015 1/1/2016 Change Lake County 64,669 64,306 -0.6 City of Clearlake 15,404 15,468 0.4 City of Lakeport 4,762 4,765 0.1 Balance of County 44,503 44,073 -1.0 The table below shows that the percentage of population over 65 years of age is substantially higher in Lake County than in the State of California. This means that the population is more vulnerable to mosquito borne diseases such as West Nile Virus than in the State as a whole. AGE DISTRIBUTION IN LAKE COUNTY COMPARED TO CALIFORNIA28 Lake County California Population, 2010 64,665 37,253,956 Persons under 5 years, percent, 2014 5.8% 6.5% Persons under 18 years, percent, 2014 20.4% 23.6% Persons 65 years and over, percent, 2014 20.6% 12.9% 26 California Government Code Section 56430. (a) (1) 27 State of California, Department of Finance, http://www.dof.ca.gov/research/demographic/reports/estimates/e- 1/view.php, May 18, 2016 28 US Census Bureau http://quickfacts.census.gov/qfd/states/06/06033.html, February 22, 2016 26 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4.1.2 MSR Determinations on Growth and Population Projections for the Lake County Vector Control District Area 1-1) The population of Lake County is expected to increase slowly in the future. The tourist population may increase at a faster rate. 1-2) The LCVCD should maintain contact with Lake County and the two cities to stay informed of land use decisions which can affect population growth. 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Lake County Vector Control District 29 Purpose: To comply with the State Law to examine any unincorporated areas which could be provided with better services by annexing to an adjacent city. 4.2.1 Determination of Lake County Vector Control District Area Disadvantaged Unincorporated Community (DUC) Status For an update of a sphere of influence of a city or special district which provides public facilities or services related to sewers, municipal or industrial water, or structural fire protection the present and probable need for those public facilities and services of any disadvantaged unincorporated communities (DUCs) within the existing sphere of influence. A DUC is an area where the Median Household Income is less than 80% of the State of California Median Household Income. In Lake County the Median Household Income (2009-2013) is $36,58430 which is well below 80% of the State of California Median Household Income level of $48,875. 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Lake County Vector Control District 2-1) Since the Lake County Vector Control District does not provide sewer, water or fire protection, determinations with respect to DUCs are not required. 29 California Government Code Section 56430. (a) (2) 30 US Census Bureau http://quickfacts.census.gov/qfd/states/06/06033.html, February 22, 2016 27 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4.3 Capacity and Infrastructure Purpose: To evaluate the present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence.31 4.3.1 Infrastructure The facilities of the Lake County Vector Control District are described above in this report. The capacity of the LCVCD depends not only on the facilities and equipment but also on the staff, the board and the taxpayers to maintain an adequate program of vector control and disease prevention. 4.3.2 MSR Determinations on Infrastructure for Lake County Vector Control District 3-1) The infrastructure and facilities for the Lake County Vector Control District are adequate for the District to provide a comprehensive program of vector and disease control for Lake County. 3-2) The District has three facilities as follows: 1. 410 Esplanade: This consists of two parcels that house the District’s Administrative Building, Laboratory, and Garage/Workshop. This is the District’s main facility, where all employees report each day. 2. 610 Todd Road: This site is used for storage, mosquitofish production, and projects that cannot be completed at Esplanade. 3. Reclamation Road: This lies within the Reclamation District. The District maintains one of its sentinel chicken flocks and a mosquito light trap at this site. 31 California Government Code Section 56430. (a) (3). 28 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4.4 Financial Ability to Provide Services32 Purpose: To evaluate factors that affect the financing of needed improvements and to identify practices or opportunities that may help eliminate unnecessary costs without decreasing service levels. 4.4.1 Financial Considerations for Lake County Vector Control District The budget and audit information for the Lake County Vector Control District are shown above in this report. 4.4.2 MSR Determinations on Financing for Lake County Vector Control District 4-1) The LCVCD complies with the State Law regarding audits and has an annual audit prepared by an outside accounting firm. 4-2) The LCVCD prepares a budget which is approved by the board of Trustees for each fiscal year. 4-3) The LCVCD maintains a website and the budget and audit information are available to the public on the website. 4.5 Status of and Opportunities for Shared Facilities33 Purpose: To evaluate the opportunities for a jurisdiction to share facilities and resources to develop more efficient service delivery systems. 4.5.1 District Facilities LCVCD facilities are not shared with other agencies on a permanent basis. However, the District shares its facilities with other agencies for limited-term projects that do not conflict with the District’s operations. For example, Lake County Water Resources occasionally requires laboratory space for work with collaborating agencies, and the District has been able to arrange activities to allow them use of part of the laboratory. 32 California Government Code Section 56430. (a)(4) 33 California Government Code Section 56430. (a)(5) 29 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 4.5.2 MSR Determinations on Shared Facilities for Lake County Vector Control District 5-1) The Lake County Vector Control District cooperates with the County for management of finances. 5-2) The Lake County Vector Control District allows Lake County Water Resources Department and other agencies to use laboratory facilities when necessary. 5-3) The Lake County Vector Control District cooperates with other counties on vector control issues. 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies34 Purpose: To consider the advantages and disadvantages of various government structures that could provide public services, to evaluate the management capabilities of the organization and to evaluate the accessibility and levels of public participation associated with the agency’s decision-making and management processes. 4.6.1 Lake County Vector Control District Government Structure The Lake County Vector Control District government structure is described above in this report. The District has a five member board of directors and complies with various government regulations including the Brown Act and the requirement to have an independent audit. 4.6.2 MSR Determinations on Local Accountability and Governance for Lake County Vector Control District 6-1) The Lake County Vector Control District has a five member board of trustees and the Board meets regularly at the District Office. 6-2) The Lake County Vector Control District has a website and meets the requirements of the Brown Act. 6-3) The Lake County Vector Control District provided ample information to Lake LAFCO for the purpose of preparing this report. 34 California Government Code Section 56430. (a)(6). 30 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 5 SPHERE OF INFLUENCE UPDATE 5.1 SOI Requirements 5.1.1 LAFCO's Responsibilities This Sphere of Influence (SOI) has been prepared for the Lake Local Agency Formation Commission (Lake LAFCo). Local Agency Formation Commissions are quasi-legislative local agencies created in 1963 to assist the State in encouraging the orderly development and formation of local agencies. This SOI consists of a review of vector control service as provided by the Lake County Vector Control District and the District Boundary. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code §56000 et seq.) is the statutory authority for the preparation of an MSR, and periodic updates of the Sphere of Influence of each local agency. A Sphere of Influence is a plan for the probable physical boundaries and service area of a local agency, as determined by the affected Local Agency Formation Commission (Government Code §56076). Government Code §56425(f) requires that each Sphere of Influence be updated not less than every five years, and §56430 provides that a Municipal Service Review shall be conducted in advance of the Sphere of Influence update. 5.1.2 SOI Determinations In determining the Sphere of Influence for each local agency, LAFCo must consider and prepare a written statement of determinations with respect to each of the following: 1. The present and planned land uses in the area, including agricultural and open space lands; 2. The present and probable need for public facilities and services in the area; 3. The present capacity of public facilities and adequacy of public services which the agency provides, or is authorized to provide; and 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. 5. For an update of an SOI of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. 31 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 5.1.3 Possible Approaches to the SOI LAFCo may recommend government reorganizations to particular agencies in the county, using the SOIs as the basis for those recommendations. Based on review of the guidelines of Lake LAFCo as well as other LAFCos in the State, various conceptual approaches have been identified from which to choose in designating an SOI. These seven approaches are explained below: 1) Coterminous Sphere: The Sphere of Influence for a city or special district that is the same as its existing boundaries. 2) Annexable Sphere: A sphere larger than the agency’s boundaries identifies areas the agency is expected to annex. The annexable area is outside its boundaries and inside the sphere. 3) Detachable Sphere: A sphere that is smaller than the agency’s boundaries identifies areas the agency is expected to detach. The detachable area is the area within the agency bounds but not within its sphere. 4) Zero Sphere: A zero sphere indicates the affected agency’s public service functions should be reassigned to another agency and the agency should be dissolved or combined with one or more other agencies. 5) Consolidated Sphere: A consolidated sphere includes two or more local agencies and indicates the agencies should be consolidated into one agency. 6) Limited Service Sphere: A limited service sphere is the territory included within the SOI of a multi-service provider agency that is also within the boundary of a limited purpose district which provides the same service (e.g., fire protection), but not all needed services. Territory designated as a limited service SOI may be considered for annexation to the limited purpose agency without detachment from the multi- service provider. This type of SOI is generally adopted when the following conditions exist: a) the limited service provider is providing adequate, cost effective and efficient services, b) the multi-service agency is the most logical provider of the other services, c) there is no feasible or logical SOI alternative, and d) inclusion of the territory is in the best interests of local government organization and structure in the area. 32 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Government Code §56001 specifically recognizes that in rural areas it may be appropriate to establish limited purpose agencies to serve an area rather than a single service provider, if multiple limited purpose agencies are better able to provide efficient services to an area rather than one service district. Moreover, Government Code Section §56425(i), governing sphere determinations, also authorizes a sphere for less than all of the services provided by a district by requiring a district affected by a sphere action to “establish the nature, location, and extent of any functions of classes of services provided by existing districts” recognizing that more than one district may serve an area and that a given district may provide less than its full range of services in an area. 7) Sphere Planning Area: LAFCo may choose to designate a sphere planning area to signal that it anticipates expanding an agency’s SOI in the future to include territory not yet within its official SOI. 5.1.4 SOI Update Process LAFCo is required to establish SOIs for all local agencies and enact policies to promote the logical and orderly development of areas within the SOIs. Furthermore, LAFCo must update those SOIs every five years, as necessary. In updating the SOI, LAFCo is required to conduct a Municipal Service Review (MSR) and adopt related determinations. LAFCo must notify affected agencies 21 days before holding a public hearing to consider the SOI and may not update the SOI until that hearing is closed. The LAFCo Executive Officer must issue a report including recommendations on the SOI amendment and update under consideration at least five days before the public hearing. 5.1.5 SOI Amendments and CEQA LAFCo has the discretion to limit SOI updates to those that it may process without unnecessarily delaying the SOI update process or without requiring its funding agencies to bear the costs of environmental studies associated with SOI expansions. Any local agency or individual may file a request for an SOI amendment. The request must state the nature of and reasons for the proposed amendment, and provide a map depicting the proposal. LAFCo may require the requester to pay a fee to cover LAFCo costs, including the costs of appropriate environmental review under CEQA. LAFCo may elect to serve as lead agency for such a review, may designate the proposing agency as lead agency, or both the local agency and LAFCo may serve as co-lead agencies for purposes of an SOI amendment. Local agencies are encouraged to consult with LAFCo staff early in the process regarding the most appropriate approach for the particular SOI amendment under consideration. 33 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Certain types of SOI amendments are likely exempt from CEQA review. Examples are SOI expansions that include territory already within the bounds or service area of an agency, SOI reductions, zero SOIs and coterminous SOI’s. SOI expansions for limited purpose agencies that provide services (e.g., fire protection, levee protection, cemetery, and resource conservation) needed by both rural and urban areas are typically not considered growth-inducing and are likely exempt from CEQA. Similarly, SOI expansions for districts serving rural areas (e.g., irrigation water) are typically not considered growth inducing. Remy et al. write: “In City of Agoura Hills v. Local Agency Formation Commission (2d Dist.1988) 198 Cal.App.3d480, 493-496 [243 Cal.Rptr.740] (City of Agoura Hills), the court held that a LAFCO’s decision to approve a city’s sphere of influence that in most respects was coterminous with the city’s existing municipal boundaries was not a “project” because such action did not entail any potential effects on the physical environment.”35 5.1.6 Recommendation for Sphere of Influence The recommendation for the Sphere of Influence for the Lake County Vector Control District is that the SOI be the same as the boundary of the District which is the same as the boundary of Lake County. The District is working well as a county-wide District and there is no need to recommend any changes at this time. 5.2 Present and Planned Land Uses in the Area, Including Agricultural and Open Space Lands36 5.2.1 General Plan and Zoning for Lake County Vector Control District SOI Area The Lake County General Plan37 describes the Agriculture Land Use Designation as follows: This land use category includes areas with prime farmland, vineyard soils and grazing lands, along with area characterized by steep slopes and limited services. One purpose of this land use category is to protect the County’s valuable agricultural resources and to prevent development that would preclude its future use in agriculture. These lands are actively or potentially engaged in crop production, including horticulture, tree crops, row and field crops, and related activities, Wineries and the processing of local agricultural products such as pears and walnuts are encouraged within this designation. These lands also provide important groundwater recharge functions. As watershed lands, these lands function to collect 35 Remy, Michael H., Tina A. Thomas, James G. Moose, Whitman F. Manley, Guide to CEQA, Solano Press Books, Point Arena, CA, February 2007, page 111. 36 California Government Code Section 56425 (e)(1) 37 Lake County General Plan, September 2008, page 3-9, http://www.co.lake.ca.us/Assets/CDD/2008+General+Plan+Final+Version/2008+General+Plan+Docs/Chapter+3+- +Land+Use.pdf. 34 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI precipitation and provide for important filtering of water to improve water quality. They are generally supportive to the management of the natural infrastructure of the watersheds. Density/intensity: 1 DU/40 Acres. The Lake County 2014 Crop Report showed that 8,070 acres were used for wine grapes, 2,073 acres used for pears, 3,700 acres used for walnuts, and 13,927 acres were used for fruit and nut crops such as apples, peaches strawberries and melons. There are also 93,200 acres used for cattle grazing and other livestock production.38 5.2.2 SOI Determinations on Present and Planned Land Use for Lake County Vector Control District Area 1-1] The Lake County General Plan designates large areas of land within the County for Agricultural uses. 5.3 Present and Probable Need for Public Facilities and Services in the Lake County Vector Control District Area39 5.3.1 Municipal Service Background In 2013, there were 62 WNV-positive mosquito samples from locations all over Lake County.40 While less than one percent of individuals (about 1 in 150 people) infected with West Nile virus will develop severe illness from West Nile virus infection, the disease can cause symptoms that can last for several weeks, and neurologic effects can be permanent. In some individuals, the infection can be fatal. People over age 50 and diabetics are at risk for the more severe forms of the disease. The mosquitoes that transmit WNV develop in out-of-service swimming pools and spas, animal watering troughs, ornamental ponds, and other sources of standing water. The District has free mosquito-eating fish to control mosquitoes in these sources. Residents are encouraged to contact the District to report neglected pools, request service for mosquito problems, or to get mosquito fish at 263-4770 or to fill out a service request online at www.lcvcd.org. The number of cases of West Nile Virus is also shown on the District’s website. 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Lake County Vector Control District 38 Lake County Department of Agriculture, 2014 Crop Report, http://www.co.lake.ca.us/Assets/Agriculture/docs/2014report.pdf, Steven Hajik, Agricultural Commissioner, 883 Lakeport Blvd. Lakeport CA 95453, Phone: 707-263-0217, October 20, 2015. 39 California Government Code Section 56425 (e)(2) 40 Lake County Vector Control District, Joint New Release, June 6, 2014. 35 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 2-1] The need for the Lake County Vector Control District will continue into the future and increase if the mosquitoes (Aedes aegypti and Aedes albopicitus) which transmit Zika, dengue, chikungyana, and other viruses that affect human health appear in Lake County. 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services41 5.4.1 Capacity Background The Lake County Vector Control District has adequate financial capacity, staff and facilities to provide for vector control in Lake County. The Board of Trustees and the staff will have to continue to educate the public on the need for vector control and the funding to implement it. 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Lake County Vector Control District 3-1] The Lake County Vector Control District is needed now and in the future for Lake County. 3-2] The LCVCD will have to work on maintaining financial and staffing capacity and also to educate the public on the need for vector control. 5.5 Social or Economic Communities of Interest for Lake County Vector Control District42 5.5.1 Lake County Vector Control District Community Background Lake County is a community and people identify with Lake County as well as with the various communities within the County. Therefore, the County is a suitable boundary for the LCVCD. The many smaller communities need to be recognized and public information developed to target certain communities as the need arises. 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Lake County Vector Control District 4-1] Lake County includes many smaller communities which may need public education regarding vector control issues and programs to be aimed at a specific community. 41 California Government Code Section 56425 (e)(3) 42 California Government Code Section 56425 (e)(4) 36 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI 5.6 Disadvantaged Unincorporated Community Status43 As noted above in this report, this determination is only required for districts providing sewer, water and fire protection service. Thus, no determination is necessary for the Lake County Vector Control District. 43 California Government Code Section 56425 (e)(5) 37 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI ABBREVIATIONS AB Assembly Bill ADA Americans with Disabilities Act AVA American Viticultural Area CKH Act Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 County Lake County District Lake County Vector Control District DHS Department of Health Services ERAF Educational Revenue Augmentation Funds FY Fiscal Year HOPTR Home Owner Property Tax Relief HSC California Health and Safety Code JPA Joint Powers Authority LAFCO Local Agency Formation Commission LCVCD Lake County Vector Control District MSR Municipal Service Review RDA Redevelopment Authority SOI Sphere of Influence ULV ultra-low volume (spray) VCJPA Vector Control Joint Powers Agency WNV West Nile Virus http://moradadecriaturas.blogia.com/upload/mosquito.jpg 38 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI DEFINITIONS Agriculture: Use of land for the production of food and fiber, including the growing of crops and/or the grazing of animals on natural prime or improved pasture land. Biological Control: The introduction, conservation or encouragement of natural predators, pathogens or parasites for the purpose of preventing, reducing or eliminating mosquito populations. Biosafety Level 2 Biosafety Level 2 builds upon BSL-1. BSL-2 is suitable for work involving agents that pose moderate hazards to personnel and the environment. It differs from BSL-1 in that: 1) laboratory personnel have specific training in handling pathogenic agents and are supervised by scientists competent in handling infectious agents and associated procedures; 2) access to the laboratory is restricted when work is being conducted; and 3) all procedures in which infectious aerosols or splashes may be created are conducted in BSCs or other physical containment equipment.44 Bond: An interest-bearing promise to pay a stipulated sum of money, with the principal amount due on a specific date. Funds raised through the sale of bonds can be used for various public purposes. Breeding Source: Any water-holding site or container which supports a population of aquatic (immature) mosquitoes. California Environmental Quality Act (CEQA): A State Law requiring State and local agencies to regulate activities with consideration for environmental protection. If a proposed activity has the potential for a significant adverse environmental impact, an environmental impact report (EIR) must be prepared and certified as to its adequacy before taking action on the proposed project. Chemical Control: The application of pesticides, include microbial pesticides such as Bacillus thuringensis var. israelensis or growth regulators such as methoprene, to the environment for the purpose of preventing, reducing or eliminating aquatic (immature) or adult mosquito populations. Community Facilities District: Under the Mello-Roos Community Facilities Act of 1982 (Section 53311, et seq.) a legislative body may create within its jurisdiction a special tax district that can finance tax-exempt bonds for the planning, design, acquisition, construction, and/or operation of public facilities, as well as public services for district residents. Special taxes levied solely within the district are used to repay the bonds. Environmental Impact Report (EIR): A report required pursuant to the California Environmental Quality Act that assesses all the environmental characteristics of an area, determines what effects or impact will result if the area is altered or disturbed by a proposed action, and identifies alternatives or other measures to avoid or reduce those impacts. (See California Environmental Quality Act.) Impact Fee: A fee, also called a development fee, levied on the developer of a project by a county, or other public agency as compensation for otherwise-unmitigated impacts the project will produce. California Government Code Section 66000, et seq., specifies that development fees shall not exceed the estimated reasonable cost of providing the service for which the fee is charged. To lawfully impose a development fee, the public agency must verify its method of calculation and document proper restrictions on use of the fund. 44 Center for Disease Control, http://www.cdc.gov/biosafety/publications/bmbl5/BMBL5_sect_IV.pdf, May 30, 2016. 39 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI Local Agency Formation Commission (LAFCO): A five-or seven-member commission within each county that reviews and evaluates all proposals for formation of special districts, incorporation of cities, annexation to special districts or cities, consolidation of districts, and merger of districts with cities. Each county’s LAFCO is empowered to approve, disapprove, or conditionally approve such proposals. The LAFCO members generally include two county supervisors, two city council members, and one member representing the general public. Some LAFCOs include two representatives of special districts. Mello-Roos Bonds: Locally issued bonds that are repaid by a special tax imposed on property owners within a community facilities district established by a governmental entity. The bond proceeds can be used for public improvements and for a limited number of services. Named after the program’s legislative authors. Minimal Disruption of Natural Environment: Maintenance to the fullest extent possible the full range of plant and animal life characteristic of adult or immature mosquito habitats while still reducing, preventing or eliminating mosquito populations. Minimization of Pesticide Use: The application of physical or biological control measures, or the application of chemical control when physical or biological control is impractical or undesirable, where and when needed as indicated by standard mosquito sampling methods. Mosquito Abatement: The prevention, reduction or elimination of mosquito populations, synonymous with the term "mosquito control". Mosquito Abatement (Control) Program: An approved schedule of planned and continuing work activities utilizing a variety of preventive and long-term control measures and having the objective or reducing mosquito biting. Work activities are carried out only when and where necessary as determined by standard mosquito sampling methods. Nuisance Area: A recreational or population area infested by the adults of one or more nuisance species as documented by standard data collection methods. Nuisance Species: Mosquito species which feed preferentially on humans. Physical Control: The physical alteration of a breeding site through management of wet-dry cycles, regrading, draining, filling, flushing, or removal or alternation of plant growth so as to render it unsatisfactory for the production of the aquatic (immature) life stages of mosquitoes. Preventive Control: Application of any biological, physical or chemical mosquito control measure to a breeding source for the purpose of preventing, reducing or eliminating production of the aquatic (immature) life stages of mosquitoes, or application of any legal or administrative action for the purpose of preventing, reducing or eliminating the creation of mosquito breeding sources. Sanitation: The elimination of breeding sources on personal property such as by flushing, covering or removing water-holding containers or filling or regrading poorly drained areas. Self-Protection: Individual action to reduce exposure to mosquitoes such as through application of repellents, installation of window and door screens, or avoidance of outdoor activities during the early morning and evening hours when mosquitoes are most active. 40 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI West Nile Virus (WNV): West Nile Virus (WNV) is a mosquito-borne disease that has been found in parts of Asia, Eastern Europe, Africa and the Middle East. The virus was first detected in the United States in 1999 in New York City and has since spread through most of the country. Most people and animals who become infected with the virus have only a mild illness or no symptoms, but in rare cases can become seriously ill. 41 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI PREPARERS Lake LAFCO, John Benoit, Executive Officer PO Box 2694, Granite Bay CA 95746 Phone: 916-797-6003 johnbenoit@surewest.net Christy Leighton, Planning Consultant 555 East Willow Street, Willows CA 95988 Phone: 530-934-4597 christyleighton@sbcglobal.net 42 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI REFERENCES California Secretary of State, California Blue Book, 1911. p. 655. Center for Disease Control, http://www.cdc.gov/biosafety/publications/bmbl5/BMBL5_sect_IV.pdf, May 30, 2016. http://www.co.lake.ca.us/Assets/CDD/Stormwater+Mgt/Clean+Water+PDFs/Stormwater+Manage ment+Plan.pdf Lake County Department of Agriculture, 2014 Crop Report, http://www.co.lake.ca.us/Assets/Agriculture/docs/2014report.pdf, Steven Hajik, Agricultural Commissioner, 883 Lakeport Blvd. Lakeport CA 95453, Phone: 707-263- 0217, October 20, 2015. Lake County General Plan, Page 2-15. Lake County General Plan, September 2008, page 3-9, http://www.co.lake.ca.us/Assets/CDD/2008+General+Plan+Final+Version/2008+General +Plan+Docs/Chapter+3+-+Land+Use.pdf. Lake County Vector Control District, Agenda Item #9, Review and Discussion of District Capital Improvements Plan, March 2015. Lake County Vector Control District, Financial Statements, Audit Report, Prepared by Pehling & Pehling CPAs, Certified Public Accountant Zachary Pehling, 2888 Marina View Drive, Kelseyville, CA, Phone: 707-279-4259, www.PehlingCPA.com, June 30, 2014. Lake County Vector Control District, Joint New Release, June 6, 2014. Lake County Vector Control District, Letter to Board of Directors from District Manager, JamesinaJ. Scott, Ph.D. August 7, 2014. Lake LAFCO, Lake County Vector Control District Questionnaire, July 21, 2015. Remy, Michael H., Tina A. Thomas, James G. Moose, Whitman F. Manley, Guide to CEQA, Solano Press Books, Point Arena, CA, February 2007, page 111. State of California, Department of Finance, http://www.dof.ca.gov/research/demographic/reports/estimates/e-1/view.php, May 18, 2016 US Census Bureau http://quickfacts.census.gov/qfd/states/06/06033.html, February 22, 2016 43 LAKE LAFCO LAKE COUNTY VECTOR CONTROL DISTRICT MSR-SOI Adopted September 21, 2016 Reso 2016-0010 MSR and Reso 2016-0011 SOI MAP LAKE COUNTY VECTOR CONTROL DISTRICT R 11 E R 10 E R 9 E R 8 E R 7 E R 6 E R 5 E R 4 E 4 T 20 N T 19 N Lake Pillsbkjury Ranch T 18 N T 17 N T 16 N UV 20 Bachelor Valley kj Upper Lake kj T 15 N kjNice kjLucerne T 14 N Redwood Highway UV 29 kjLakeport Clear La K ke ono Tayee kjkj Pa kj r G ad le is n e h a V v a e ll n ey kjClearlake Oak kj s Spring Valley UV 20 Finle kj y Soda Baykjkj kjBuckingham UV 20 Rkjiviera Heights UV kj Riviera West 175 UV T 13 N Kelseyville kj kjClearlake 16 Clearlake Riviera UV 175 UV 29 kjLower Lake UV T 12 N 128 Loch Lomondkj kjHobergs kjCobb kjHidden Valley T 11 N kj Anderson Springs kj Middletown T 10 N UV UV 128 29 Lake County L kj Communities Vector Control District Lake County Vector Control District g e Highways and County Boundary R Ad e o so p l t u e t d io : n : e Parcels Sphere of Influence Boundary Lake County Vector Control District SOI n Resolution: d Water Bodies Adopted: 0 1.5 3 6Miles Source: Lake County LAFCo Map Created 7/10/2016 44