Spalding Community Services District MSR & SOI - 10/18/21

LASSEN LOCAL AGENCY FORMATION COMMISSION (LAFCo) ADOPTED SPALDING COMMUNITY SERVICES DISTRICT (CSD) MUNICIPAL SERVICE REVIEW (MSR) AND SPHERE OF INFLUENCE (SOI) UPDATE Resolution 2021-0004 Spalding Service Review Resolution 2021-0005 Spalding Sphere of Influence October 18,2021 TABLE OF CONTENTS 1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Local Agency Formation Commission (LAFCo) History . . . . . . . . . . . . . . . . . . 1 1.2 Preparation of the MSR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.3 Role and Responsibility of LAFCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.4 Municipal Services Review Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.5 Municipal Services Review Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.6 Sphere Of Influence Update Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.7 Possible Approaches to the Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . . 6 1.8 Description of Public Participation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2 SPALDING COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.1 Community Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.2 Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.3 Land Use Planning and Zoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.4 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3 SPALDING COMMUNITY SERVICES DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1 District Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.1 Formation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.2 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.3 Board of Directors Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1.4 Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1.5 District Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1.6 District Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.2 Spalding Community Services District Facilities . . . . . . . . . . . . . . . . . . . . . . . 12 3.2.1 Wastewater Collection and Treatment . . . . . . . . . . . . . . . . . . . . . . . . 12 3.2.2 Spalding CSD Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3.2.3 Spalding CSD Recreation and Marina . . . . . . . . . . . . . . . . . . . . . . . . 14 3.2.4 Spalding CSD Mailbox Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.3 Spalding CSD Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3.1 Spalding Fire Department Funding . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3.2 Marina Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3.3.3 Spalding Sewer Service Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4 SPALDING CSD MUNICIPAL SERVICE REVIEW (MSR) . . . . . . . . . . . . . . . . . . . . . 18 4.1 Growth and Population Projections for the Spalding CSD . . . . . . . . . . . . . . . 18 4.1.1 Population Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4.1.2 MSR Determinations on Growth and Population Projections . . . . . . 18 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Spalding CSD . . . . . . . 18 4.2.1 Determination of Spalding CSD Area Disadvantaged Unincorporated Community (DUC) Status . . . . . . . . . . . . . . . 18 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Spalding CSD . . . . . . . . . . . . . . . . . . . . . 18 4.3 Spalding Community Services District Capacity and Infrastructure 19 4.3.1 Capacity and Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4.3.2 MSR Determinations on Capacity and Infrastructure for Spalding Community Services District . . . . . . . . . . . . . . . . . . . . . . . . 19 4.4 Financial Ability to Provide Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4.4.1 Financial Considerations for Spalding CSD . . . . . . . . . . . . . . . . . . . 20 4.4.2 MSR Determinations on Financing for Spalding CSD . . . . . . . . . . . 20 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 4.5 Status of and Opportunities for Shared Facilities . . . . . . . . . . . . . . . . . . . . . 21 4.5.1 Spalding CSD Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.5.2 MSR Determinations on Shared Facilities for Spalding CSD . . . . . . . 21 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.6.1 Government Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4.6.2 MSR Determinations on Local Accountability and Governance for Spalding Community Services District . . . . . . . . . . . . . . . . . 22 5 SPALDING COMMUNITY SERVICES DISTRICT SPHERE OF INFLUENCE UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.1 Recommendation for Spalding Community Services District Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.2 Present and Planned Land Uses in the Spalding Community Services District Area, Including Agricultural and Open Space Lands . . . . . . . 23 5.2.1 County General Plan and Zoning for Spalding Community Services District SOI Area . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.2.2 SOI Determinations on present and planned land uses in the Spalding CSD Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.3 Present and Probable Need for Public Facilities and Services in the Spalding Community Services District Area . . . . . . . . . . . . . . . . . . . 23 5.3.1 Municipal Service Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Spalding Community Services District . . . . . . . . . 24 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 5.4.1 Spalding Community Services District Capacity Background . . . . . . 25 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Spalding Community Services District . . . . . . . . 25 5.5 Social or Economic Communities of Interest for Spalding Community Services District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 5.5.1 Spalding Community Services District Community Background 26 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Spalding Community Services District . . . . . . . . 25 5.6 Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . 26 5.6.1 Disadvantaged Unincorporated Communities . . . . . . . . . . . . . . . . . . 26 5.6.2 Spalding Community Services District Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . . 26 APPENDIX A LOCAL GOVERNEMENT SPENDING ISSUES . . . . . . . . . . . . . . . . 27 APPENDIX B SPALDING WASTE DISCHARGE REQUIREMENTS . . . . . . . . . . . 31 APPENDIX C SPALDING CSD BUDGETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 APPENDIX D SPALDING CSD AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 PREPARERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 2 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 1 INTRODUCTION 1.1 Local Agency Formation Commission (LAFCo) History This report is prepared pursuant to State legislation enacted in 2000 that requires Lassen LAFCo to complete a comprehensive review of municipal service delivery and update the spheres of influence (SOIs) of all agencies under LAFCo’s jurisdiction. This chapter provides an overview of LAFCo’s history, powers and responsibilities. It discusses the origins and legal requirements for preparation of a Service Review commonly referred to as a Municipal Service Review (MSR). Finally, the chapter reviews the process for MSR review, MSR approval and SOI updates. After World War II, California experienced dramatic growth in population and economic development. With this boom came a demand for housing, jobs and public services. To accommodate this demand, many new local government agencies were formed, often with little forethought as to the ultimate governance structures within a given region. A lack of coordination and adequate planning led to a multitude of overlapping, inefficient jurisdictional and service area boundaries, many of which resulted in the premature conversion of California’s agricultural and open-space lands and duplication of services. Recognizing this problem, in 1959, Governor Edmund G. Brown, Sr. appointed the Commission on Metropolitan Area Problems. The Commission's charge was to study and make recommendations on the "misuse of land resources" and the growing complexity of local governmental jurisdictions. The Commission's recommendations on local governmental reorganization were introduced in the Legislature in 1963; resulting in the creation of a Local Agency Formation Commission, or "LAFCo," operating in every county. LAFCo was formed as a countywide agency to discourage urban sprawl and to encourage the orderly formation and development of local government agencies within its jurisdiction. LAFCo is responsible for coordinating logical and timely changes in local governmental boundaries; including annexations and detachments of territory, incorporations of cities, formations of special districts, and consolidations, mergers and dissolutions of districts, as well as reviewing ways to reorganize, simplify, and streamline governmental structure. The Commission's efforts are focused on ensuring services are provided efficiently and economically while agricultural and open-space lands are protected or conserved to the extent possible. To better inform itself and the in compliance with the State Law; LAFCo conducts MSR’s to evaluate the provision of municipal services for service providers within its jurisdiction. LAFCo regulates, through approval, denial, conditions and modification, boundary changes proposed by public agencies or individual voters and landowners. It also regulates the extension of public services by cities and special districts outside their boundaries. LAFCo is empowered to initiate updates to the SOIs and proposals involving the dissolution, consolidation or formation of special districts, establishment of subsidiary districts, and any reorganization including such actions. Where LAFCo is not given specific authority, LAFCo actions must originate as petitions from affected voters or landowners, or by resolutions by affected cities or special districts. 1 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 A Plan for Services is required in Government Code Section 56653. A Plan for Services must include the following information: An enumeration and description of services to be provided, the level and range of those services, an indication of how those services are to be extended into the territory, an indication of any improvements or upgrading of structures, Information on how the services are to be financed. 1.2 Preparation of the MSR Research for this Municipal Service Review (MSR) was conducted during the late fall of 2019. This MSR is intended to support preparation and update of Spheres of Influence, in accordance with the provisions of the Cortese-Knox-Hertzberg Act. The objectives of this Municipal Service Review (MSR) are as follows: ü To develop recommendations that will promote more efficient and higher quality service options and patterns ü To identify areas for service improvement ü To assess the adequacy of service provision as it relates to determination of appropriate sphere boundaries While LAFCo prepared the MSR document, given budgetary constraints, LAFCo did not engage the services of experts in engineering, hydrology, geology, water quality, fire protection, accounting or other specialists in related fields, but relied upon published reports and available information. Insofar there is conflicting or inconclusive information LAFCo staff may recommend the district retain a licensed professional or expert in a particular field for an opinion. Therefore, this MSR reflects LAFCo’s recommendations, based on available information during the research period and provided by District staff to assist in its determinations related to promoting more efficient and higher quality service patterns; identifying areas for service improvement; and assessing the adequacy of service provision by the Spalding CSD. Additional information on local government funding issues in found in Appendix A at the end of this report. 1.3 Role and Responsibility of LAFCo Local Agency Formation Commissions (LAFCos) in California are independent agencies created by the California Legislature in 1963 for the purpose of encouraging the orderly formation of local government agencies and conserving and preserving natural resources. 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 (SOI) of each local agency. LAFCos are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structure, preparing a review of services called a MSR, and preparing a SOI thereby determining the future “probable” boundary for each city and special district within each county. 2 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 The Commission's efforts are directed toward seeing that services are provided efficiently and economically while agricultural and open-space lands are protected. Often citizens are confused as to what LAFCo’s role is. LAFCos do not have enforcement authority nor do they have the authority to initiate a city or district annexation or detachment proceeding. LAFCos may initiate consolidation or dissolution proceedings; however, these proceedings are subject to the voter approval or denial. The Legislature has given LAFCos the authority to modify any proposal before it to ensure the protection of agricultural and open space resources, discourage urban sprawl and promote orderly boundaries and the provision of adequate services. The Governor’s Office of Planning and Research (OPR) has issued Guidelines for the preparation of a MSR. This MSR adheres to the procedures set forth in OPR’s MSR Guidelines. A SOI 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 SOI be updated not less than every five years, and §56430 provides that a MSR shall be conducted in advance of the SOI update. 1.4 Municipal Services Review Requirements Effective January 1, 2001 and subsequently amended, LAFCo is required to conduct a review of municipal services provided in the county by region, sub-region or other designated geographic area, as appropriate, for the service or services to be reviewed, and prepare a written statement of determination with respect to each of the following six topics (Government Code §56430): 1. Growth and population projections for the affected area 2. The location and characteristics of any disadvantaged unincorporated communities (DUC) within or contiguous to the sphere of influence 3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies 4. Financial ability of agencies to provide services 5. Status of, and opportunities for shared facilities 6. Accountability for community service needs, including governmental structure and operational efficiencies 1.5 Municipal Services Review Process For local agencies, the MSR process involves the following steps: • Outreach: LAFCo outreach and explanation of the project • Data Discovery: provide documents and respond to LAFCo questions 3 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 • Map Review: review and comment on LAFCo draft map of the agency’s boundary and sphere of influence • Profile Review: internal review and comment on LAFCo draft profile of the agency • Public Review Draft MSR: review and comment on LAFCo draft MSR • LAFCo Hearing: attend and provide public comments on MSR MSRs are exempt from California Environmental Quality Act (CEQA) pursuant to §15262 (feasibility or planning studies) or §15306 (information collection) of the CEQA Guidelines. LAFCo’s actions to adopt MSR determinations are not considered “projects” subject to CEQA. The MSR process does not require LAFCo to initiate changes of organization based on service review findings, only that LAFCo identify potential government structure options. However, LAFCo, other local agencies, and the public may subsequently use the determinations to analyze prospective changes of organization or reorganization or to establish or amend SOIs. Within its legal authorization, LAFCo may act with respect to a recommended change of organization or reorganization on its own initiative (e.g., certain types of consolidations), or in response to a proposal (i.e., initiated by resolution or petition by landowners or registered voters). A MSR is not subject to any of the CEQA requirements in the Public Resources Code and should not be construed to be a CEQA document. Once LAFCo has adopted the MSR determinations, it must update the SOI for each jurisdiction. The LAFCo Commission determines and adopts the spheres of influence for each agency. A CEQA determination is made by LAFCo on a case-by-case basis for each sphere of influence action and each change of organization, once the proposed project characteristics are sufficiently identified to assess environmental impacts. 1.6 Sphere Of Influence Update Process The Commission is charged with developing and updating the Sphere of Influence (SOI) for each city and special district within the county.1 An SOI is a LAFCo-approved plan that designates an agency’s probable future boundary and service area. Spheres are planning tools used to provide guidance for individual boundary change proposals and are intended to encourage efficient provision of organized community services and prevent duplication of service delivery. Territory cannot be annexed by LAFCo to a city or district unless it is within that agency's sphere. The purposes of the SOI include the following: • to ensure the efficient provision of services • to discourage urban sprawl and premature conversion of agricultural and open space lands • to prevent overlapping jurisdictions and duplication of services 1 The initial statutory mandate, in 1971, imposed for no deadline for completing sphere designations. When most LAFCos failed to act, 1984 legislation required all LAFCos to establish spheres of influence by 1985. 4 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 LAFCo may not directly regulate land use, dictate internal operations or administration of any local agency, or set rates. LAFCo is empowered to enact policies that indirectly affect land use decisions. On a regional level, LAFCo promotes logical and orderly development of communities as it considers and decides individual proposals. LAFCo has a role in reconciling differences between agency plans so that the most efficient urban service arrangements are created for the benefit of current and future area residents and property owners. The Cortese-Knox-Hertzberg (CKH) Act requires LAFCos to develop and determine the SOI of each local governmental agency within its jurisdiction and to review and update the SOI every five years, as necessary. LAFCos are empowered to adopt, update and amend a SOI. They may do so with or without an application. Any interested person may submit an application proposing an SOI amendment. While SOIs are required to be updated every five years, as necessary, this does not necessarily define the planning horizon of the SOI. The term or horizon of the SOI is determined by each LAFCo. LAFCo may recommend government reorganizations to particular agencies in the county, using the SOIs as the basis for those recommendations. In determining the SOI, LAFCo is required to complete an MSR and adopt the six determinations previously discussed. In addition, in adopting or amending an SOI, LAFCo must make the following five determinations as required in Government Code section 56425(c): 1. Present and planned land uses in the area, including agricultural and open-space lands 2. Present and probable need for public facilities and services in the area 3. Present capacity of public facilities and adequacy of public service that the agency provides or is authorized to provide 4. Existence of any social or economic communities of interest in the area if the Commission determines these 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. 2 The CKH Act stipulates several procedural requirements in updating SOIs. It requires cities to file written statements on the class of services to be provided and LAFCo must clearly establish the location, nature and extent of services provided by special districts. 2 California Government Code Section 56425 (e)(5) 5 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 By statute, LAFCo must notify affected agencies 21 days before holding the public hearing to consider the SOI and may not update the SOI until after that hearing. The LAFCo Executive Officer must issue a report including recommendations on the SOI amendments and updates under consideration at least five days before the public hearing. 1.7 Possible Approaches to the Sphere of Influence 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 Lassen 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: A Coterminous Sphere means that the Sphere of Influence for a city or special district that is the same as its existing boundaries of the city or district. 2) Annexable Sphere: A sphere larger than the agency’s boundaries identifies areas the agency is expected to annex. The annexable area is outside the district boundaries and inside the sphere of influence. 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 of influence. 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. 6 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 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 d) Inclusion of the territory is in the best interests of local government organization and structure in the area 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. 1.8 Description of Public Participation Process The LAFCo proceedings are subject to the provisions of California’s open meeting law, the Ralph M. Brown Act (Government Code Sections 54950 et seq.). The Brown Act requires advance posting of meeting agendas and contains various other provisions designed to ensure that the public has adequate access to information regarding the proceedings of public boards and commissions. Lassen LAFCo complies with the requirements of the Brown Act. The State MSR Guidelines provide that all LAFCos should encourage and provide multiple public participation opportunities in the MSR process. 7 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 2 SPALDING COMMUNITY 2.1 Community Background Spalding (formerly Spalding Tract and Spalding Tract) is a census-designated place located on the west side of Eagle Lake, 2.1 miles east-northeast of Whaleback Mountain and 3 miles northeast of Eagle Lodge, at an elevation of 5138 feet. In 1914, John S. Spalding laid out the town. The place was subdivided in 1924. Spalding is now an unincorporated resort community located about 8 miles south of Stones Landing on the western shore of Eagle Lake and about 45 miles northwest of the City of Susanville. Spalding is a summer home tract of approximately 360 acres surrounded on three sides by the Lassen National Forest and on the east by Eagle Lake. The Community is made up of full time residents, seasonal residents, and vacationers. Housing consists of a broad spectrum of homes with current prices between $125,000 and $225,000 according to real estate listings for full-time residents to economy homes, vacations rentals, modular and mobile homes. Note: housing prices fluctuate almost daily and are constantly changing due to market conditions. The wastewater treatment plant has the capacity to serve 1,113 equivalent dwelling 1 units. Most homes in the community use well water. The Spalding Eagle Lake 2 Mutual Water Company serves 130 sites. The majority of residential development in Spalding is on relatively smaller lots of 1 acre or less. The community has a large number of vacant residential parcels; however, no R-3 zoned land is available. According to the Lassen County 2019-2024 Housing Element thre are a total of 358 vacant parcels in which maximum new units at typical general plan densities is 432. However potential units with in the Sewer Service area is 324. Therefore, The spalding CSD sewer system has wastewater capacity available Though small, the Community of Spalding is heavily influenced by the area’s recreational opportunities. During a high-use summer weekend, the population in the community and surrounding area can exceed 1500. There are no schools in the Spalding community and school buses are not provided. The school children must be transported 10 miles to Stones Landing to take a school bus. The 2010 Census reported that 178 people lived in 94 households, out of which 7 (7.4%) had children under the age of 18 living in them, 26 households (27.7%) were made up of individuals and 10 (10.6%) had someone living alone who was 65 years of age or older. The remaining households were two or more adults living together. The average household size was 1.89. There were 63 families (67.0% of all households); the average family size was 2.22. The population was spread out in age as follows: 8 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING AGE DISTRIBUTION 2010 Under the age of 18 10 people 5.6% Aged 18 to 24 2 people 1.1% Aged 25 to 44 12 people 6.7% Aged 45 to 64 75 people 42.1% 65 years of age or older 79 people 44.5% Total 178 people 100.0% The median age was 63.0 years. For every 100 females, there were 107.0 males. For every 100 females age 18 and over, there were 104.9 males. There were 665 housing units of which 81 (86.2%) were owner-occupied, and 13 (13.8%) were occupied by renters. The homeowner vacancy rate was 18.0%; the rental vacancy rate was 53.3%. There were 158 people (88.8% of the population) living in owner-occupied housing units and 20 people (11.2%) living in rental housing units. 2.2 Climate The Spalding Community Services District is located at 5,100 feet elevation above sea level with an arid mountain climate --generally dry, with warm days and cool nights. The area experiences four complete but mild seasons. The major portion of precipitation falls as snow from November through April.3 Average High and Low temperatures are shown below: Month Average Average High Low January 40.03 19.0 April 61.2 32.3 July 89.3 49.9 October 66.6 33.74 The low temperatures in Spalding can be lower than those in Susanville because Spalding is 900 feet higher in elevation. In 1987 the temperature was as low as minus 27 degrees and for a week the temperature never rose above zero.5 2.3 Land Use Planning and Zoning The Lassen County General Plan shows the Spalding area designated for housing within the CSD but the surrounding area is for various types of open space. 2.4 Income There is no income data specifically for the Spalding CSD. However, the area is most likely a Disadvantaged Unincorporated Community (DUC). The population is elderly with more than 44% over 65 in 2010. 3 Lassen County, “The Eagle Lake Area Plan, a part of the Lassen County General Plan 1990”. September 1982 p.17. 4http://www.lassencountychamber.org/stats.html October 13, 2007. 5Spalding Community Services District, Manager, eaglelakescse@citlink.net, September 17, 2007. 9 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 3 SPALDING COMMUNITY SERVICES DISTRICT 3.1 District Background 3.1.1 Formation The Eagle Lake Community Services District was formed by Lassen LAFCO on June 11, 1985 and included both the Stones-Bengard area and the Spalding Tract. The Sphere of Influence for the Eagle Lake CSD was adopted by Lassen LAFCO on November 16, 1989. The Stones-Bengard Reorganization was approved by Lassen LAFCO on January 10, 1990. The Spalding CSD is thus the successor district to the original Eagle Lake CSD. In 1991 the Spalding Tract was declared an “On-site Wastewater Zone” within the Eagle Lake Community Services District to allow the District to monitor and regulate the existing wastewater disposal systems. The name of the District was changed to the Spalding Community Services District on September 1, 1992. The Spalding Community Service District was formed according to California Government Code §61000- 61850. On July 20, 2000, Lassen LAFCO approved an annexation to the Spalding CSD by Resolution 2000-02 for land to be used for wastewater treatment facilities and land at the Spalding Airport. On January 3, 2006, the Spalding CSD requested to be excluded from the proposed Lassen County Recreation District, which was never formed. In 2007, there were 196 registered voters residing within the Spalding CSD. 3.1.2 Board of Directors The Spalding CSD provided the following information regarding the Board of Directors: Mike Arnold, Chair of the Board Term expires 12/5/2023 Ted Thomas, Vice Chair Term expires 12/5/2024 Larry Doss, Director Term expires 12/5/2024 Ed Lawson, Director Term expires 12/5/2023 Darren Read, Director Term expires 12/5/2023 The Spalding CSD Board meets the third Friday of each month, at 3pm in the Eagle Lake Community Center. The public is invited to attend. Recent meetings are held by teleconference due to Covid-19 regulations. All Board members have had ethics training either in 2015 or 2018.6 The Form 700 is required to be submitted annually by the Political Reform Act of 1974 (California Government Code sections 81000-81003) so it would be better for each 6 Spalding Community Services District, Board Information, August 2020. 10 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Board Member to submit a new Form 700 each year even if the economic interests have not changed. Board Members have complied with this requirement. The Ethics training is required once during each two year period which begins with an odd numbered year (AB 1234, Chapter 700, Statutes of 2005). Training is available on- line at the State of California Fair Political Practices Commission website. 3.1.3 Board of Directors Issues The Lassen County District Attorney recently investigated another special district with regard to problems as follows:7 1. Conflicts of interests amongst members of the Board 2. Confidentiality breaches 3. Brown Act violations in the form of: a) Improper agendizing and use of closed session b) Expenditure of public funds c) Purchase of a vehicle d) Employment practices Review of the Spalding CSD Board of Directors minutes posted on the District website show that the Spalding CSD is in compliance with State Laws and advertises the meetings correctly and reports Board Actions in the minutes correctly. The problems investigated by the District Attorney can easily occur in small special districts and the report is a good reminder to all districts to make every effort to maintain a full five-member board of directors, to advertise all meetings correctly, and to include all relevant information in the minutes of the meetings. 3.1.4 Mission Statement The following Mission Statement is shown on the District Website: Our Mission Provide fire, emergency medical service, sewer, and recreational facilities to the community in an environmentally, ethically and fiscally responsible manner.8 3.1.5 District Staff The District Staff includes the following positions: General Manager – Ken Coffey Office manager Receptionist/Office Worker Wastewater System Operator Wastewater System Trainee/Maintenance Sewer Maintenance Recreation Maintenance 7 County of Lassen, Office of the District Attorney, Investigative Report: The Standish-Litchfield Fire Protection District, 2020. 8 Spalding CSD, https://www.spaldingcsd.org/our-mission, September 1, 2020. 11 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 All employees are hourly except for the Manager who is considered salaried. Spalding CSD Phone: 530-825-3258 Email: generalmanager@spaldingcsd.org Mailing Address: Spalding CSD, 502-907 Mahogany Way, Susanville, CA 96130 3.1.6 District Website Every California independent special district is required to maintain a website by January 1, 2020. Senate Bill 929 added Government Code sections 6270.6 and 53087.8 to provide the public easily accessible and accurate information about the districts. The requirements for the District website are as follows: 1) Contact Information 2) Current Agenda 3) Financial Transaction Reports (as sent to State Comptroller) 4) Compensation Reports (as sent to State Comptroller) The Spalding CSD has a website: www.spaldingcsd.org The website meets the requirements of the State of California except for the financial transaction reports and the compensation reports. 3.2 Spalding Community Services District Facilities 3.2.1 Wastewater Collection and Treatment The following description of the Spalding CSD Wastewater Treatment system is shown on the District website to explain the system to the customers:9 Our wastewater collection system is known as a STEP/STEG system. It starts with your septic tank, which gives the waste its primary treatment with scads of hungry little bugs (bacteria) that turn most of the "stuff" into gas. What's left is liquid and sludge. The nearly clear liquid moves by gravity or is pumped through a screen into a collection system. The rest is sludge that stays in the tank until it is necessary to have it pumped out. How often this needs to be done is dependent on how much and what you put down your drain and how healthy and efficient the "bugs" in your tank are. All of this liquid, called "effluent" is gravity fed and/or pumped through the system to many acres of evaporation ponds located across County Road A1 at Spalding Road. These ponds, nearly odor free, take oxygen from the air and use sunlight to keep millions of little green plants, algae, 9 Spalding CSD, https://www.spaldingcsd.org/spalding-wastewater-system, June 16, 2020. 12 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 growing like crazy. They remove carbon, nitrogen, phosphorous, and other nutrients from the water. At the same time there is enough evaporation to keep up with the inflow so that no water is discharged into the ground water. It’s a great system and we want to keep it working well at a low cost to all of us. We don’t want to mess it up! More detailed information on the Wastewater Collection and Treatment System can be found in Appendix B at the end of this report. The District wastewater collection and treatment system meets the requirements of the State of California and allows the use of the homes within the District. The fees and budget for the wastewater collection and treatment system are shown in a later section of this report. 3.2.2 Spalding CSD Fire Department Spalding VFD is responding to fire and medical calls. An agreement with SEMSA (Sierra Medical Services Alliance) has been made regarding emergency transport. The Spalding Volunteer Fire Department Fire Chief states that there are 9 local residents who are volunteer firefighters.10 The Spalding Community Services District (CSD) has the oversight of the local Spalding Volunteer Fire Department which has one small station adjacent to the CSD offices and provides fire suppression and emergency medical services. In addition, during the fire season, Spalding CSD rents an equipment bay at the fire department during the summer months to the Lassen National Forest, Eagle Lake District Office in order to house wildland fire units with staffing which assists in their wildland fire fighting capabilities. 11 Equipment for the Spalding CSD Fire Department is as follows: Spalding CSD Fire Department Equipment Vehicle Description Vehicle ID Make Year Pick-up, Fire Chief C1200 Ford F250 4x4 2019 Engine, ICS Type 2 E1221 International 4x4 2006 Engine, ICS Type 1 E1223 HME 1996 Water Tender, ICS Type 1 WT1234 Kenworth 3,000 Gallon 2018 Rescue R1253 Ford F 350 4x4 2017 Engine, ICS Type 3 E1222 International 4x4 1987 Through the California Fire Service and Rescue Emergency Mutual Aid System, the SVFD annually responds to multiple requests for mutual aid from seven different surrounding fire departments (Stones-Bengard VFD, Lake Forest FPD, CALFIRE, USFS Lassen NF, Adin VFD, Madeline VFD and Susanville FD). Due to how rural Lassen County is and the lack of dedicated volunteer firefighters in other communities, we frequently respond to assist other fire departments through Mutual Aid. 10 Lassen Fire Safe Council, Spalding Community Wildfire Assessment Report, May 14, 2014, Page 6. 11 Lassen Fire Safe Council, Spalding Community Wildfire Assessment Report, May 14, 2014, Page 6. 13 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 The Insurance Services Office (ISO) has rated the Spalding Community as a Class 8B. The Spalding Community is also designated as a “Firewise” Community. Dispatch is handled by the Susanville Interagency Fire Center. Spalding Community Services District Fire Service Calls 201912 Spalding Assist Total Wildland Fires 0 5 5 Structure Fires 0 1 1 Other Fires/False Alarms 1 1 2 Medicals 25 8 55 TCs 0 1 1 Hazards 1 0 1 Public Assistance/Other 6 0 6 LEO 0 0 0 TOTAL 33 16 49 The fees and Budget for the Fire Department are shown in Appendix C of this report. 3.2.3 Spalding CSD Recreation and Marina The Spalding CSD Recreation and Marina operations are described on the District Website as follows: We are very proud of our Marina and it shows! Two boat launching ramps Plenty of paved parking for boats and trailers Picnic tables & concrete walkways. Two full service heated bathrooms. Please be careful when launching and boating, this is a natural lake with many hazards close to the surface! Although the county attempts to mark hazards, launching and boating are at your own risk. There is an $8 fee for the use of our Marina facility. Multiple day use permits are available. The only revenue the District receives to maintain the Marina comes from these Day Use Fees! We encourage those who utilize our facility on a regular basis, during the fishing season, to purchase an Annual Permit.13 3.2.4 Spalding CSD Mailbox Services The Spalding CSD also offers mailbox services described on the Website as follows: In an attempt to beautify Spalding, the District, along with the US Postal Service, have installed neighborhood mailboxes along Spalding Road and the Strand. The District has also installed PO type boxes in the front lobby of the District Office for those who wish to receive their mail indoors. The neighborhood boxes and PO type box service are all in service. If you 12 Susanville Interagency Fire Center, June 2019. 13 Spalding CSD, https://www.spaldingcsd.org/welcome-fishermen, June 16, 2020. 14 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 have property in Spalding and wish to move your mail delivery to the District Office, please give Virginia a call at 530-825-3258. This is a free service for property owners in Spalding! Thanks to the Board of Directors for approving this beautification project! Beautification efforts will continue this spring with notices going out to owners regarding cleaning up weeds, grass, and brush from Spalding properties. The District will be enforcing the weed abatement ordinance this year in the Spring!14 3.3 Spalding CSD Financial Information The Budget for the Spalding CSD is shown in Appendix C and the Audit in Appendix D at the end of this report. The Fire Department Budget may vary due to the purchase of equipment which may not occur every year. The Spalding Fire Department has a fee of $0.01 per gallon for hydrant water. The Fire Department also has an agreement form for fire department apparatus rental. 3.3.1 Spalding Fire Department Funding The SVFD historically has struggled to meet the demand for fire services with existing revenues. Consequently, there has been insufficient funding (past and present) to purchase additional or replace/repair current much needed PPE, equipment and fire apparatus. Most of the funding for the SVFD comes from a parcel tax assessment (Fire Suppression Assessment Fee) that was established in 1998 and has not been increased or changed since 1998. In 2008, 2012 and 2014 a fire tax increase was put to the voter's with effort made to educate the community on the need to increase the amount paid per parcel for fire protection, but the increase failed each time. Fire Suppression Assessment Fee – The Fire Suppression Assessment Fee is collected by the Lassen County Tax Collector when residents pay their property taxes. The Fire Suppression Assessment Fee is considered restricted use funds for obtaining furnishing, operating, and maintaining fire suppression equipment or apparatus, or for paying the salaries and benefits of firefighting personnel, or both. The fee was approved by Spalding residents in February 1998 and the specific uses for the funds are covered in Government Code Section 50078 through 50078.20. The Fire Suppression Assessment Fee generates approximately $33,059 annually and is the only reliable funding source for the fire department. Fire Capital Impact Fee - The Fire Capital Impact Fee is collected by the Lassen County Building Department when residents pay for building construction or improvement permits within the Spalding District. The Fire Capital Impact Fee is considered restricted use funds for the acquisition of land, easements for fire facilities, design and construction of fire facilities, and/or fire capital expenditures identified in the Districts Fire Capital Facilities Improvement Plan. 14 Spalding CSD, https://www.spaldingcsd.org/mailbox-services, June 16, 2020. 15 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 The Fire Capital Impact Fee was approved by the Lassen County Board of Supervisors by resolution #09-005, on February 24, 2009 and the specific uses for the funds are covered in Lassen County Code Chapter 12.60, Fire Capital Impact Fees. Fire Capital Impact Fee generates minimal funds annually. The Fire Capital Impact Fee has generated approximately $20,000 since the fee was approved in 2009. General Purpose Revenue Funds – The Miscellaneous Funds account is considered non-restricted funds and consists of community donations, funds raised at pancake breakfast, fill the boot campaigns, BBQ’s, quilt raffle, bingo and other community organized activities that promote donations to the fire department. The District sometimes gets revenue generated by the rental of the fire departments fire apparatus to the State for use on wildland fires. The Miscellaneous Funds are used to purchase equipment, apparatus, and pay for miscellaneous items the above restricted use funds can’t be spent on. This account and grant funding have paid for most of the Fire Department’s mobile equipment upgrades and purchases over the last five years. General Purpose Revenue Funds generate minimal funding for the fire department annually. 3.3.2 Marina Funding The Marina is funded primarily by parking fees as shown in the Budget in Appendix C at the end of this report. The fees are shown below: Spalding CSD Recreation and Miscellaneous Fees Parking permit for Boat Launch, Annual Non-Resident* $75.00 Boat Launch, Day Use Parking Permit, 1 Day 8.00 Boat Launch, Day Use Parking Permit, 2 Day 15.00 Boat Launch, Day Use Parking Permit, 3 Day 22.00 Boat Launch, Day Use Parking Permit, 4 Days 29.00 Boat Launch, Day Use Parking Permit, 5 Days 36.00 Dock Application 10.00 Boat Dock Slip Daily Fee 25.00 Kiosk Advertising Annual Fee $30.00 Photo Copy per page 0.25 Fax per page 0.25 Chair Rental (requires $100 refundable cleaning deposit) per chair per day 4.00 Table Rental (requires $100 refundable cleaning deposit) per table per day 10.00 Kitchen Rental ($200 refundable cleaning deposit, 4 hour minimum rental) Per hour 35.00 Kitchen Rental, Daily Rate, 8 hours ($200 refundable cleaning deposit) $300.00 Community Center Rental (requires $200 refundable cleaning deposit) 4 hours minimum rental Per Hour 45.00 Community Center Rental (requires $200 refundable cleaning deposit) Daily Rate 8 hours $300.00 * Generates the most income for the Recreation Department 16 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 The Recreation Department spends less than the budgeted amounts most years. 3.3.3 Spalding Sewer Service Funding The Sewer Service Budget is shown in Appendix C at the end of this report. The Audit is shown in Appendix D. The Sewer service is funded by fees and is supposed to be run as an “enterprise” fund which means it should be solely supported by the fees and not from taxes. The Sewer Service Budget is over $200,000 which makes it larger than the Fire and Recreation budgets. The Sewer Service Fees are shown below: Spalding CSD Sewer Service Fees Sewer Connection/Disconnect per EDU $200.00 Sewer Operations and Maintenance Fee, Annual $300.00 Sewer Operations and Maintenance Fee, Quarterly $78.00 Wastewater Assistance Per Hour $35.00 17 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 4 SPALDING CSD MUNICIPAL SERVICE REVIEW (MSR) 4.1 Growth and Population Projections for the Spalding CSD15 Purpose: To evaluate service needs based on existing and anticipated growth patterns and population projections. 4.1.1 Spalding Area Population Projections The Spalding Community Services District is unlikely to grow in the near future. The area will continue to attract tourists but the permanent population is not expected to increase. 4.1.2 MSR Determinations on Growth and Population Projections MSR 1-1) The Spalding CSD currently has a population of approximately 800 residents in the summer and 200 residents in the winter. MSR 1-2) The Spalding Community Services District is unlikely to grow in the near future. The area will continue to attract tourists but the permanent population is not expected to increase. MSR 1-3) For a Community Services District formed under section 61000 et seq. of the Government Code, future annexations may include contiguous or non-contiguous territory thereby providing other noncontiguous areas with fire protection. 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Spalding CSD16 4.2.1 Determination of Spalding CSD Area Disadvantaged Unincorporated Community (DUC) Status There is no income data specifically for the Spalding CSD. However, the area is most likely a Disadvantaged Unincorporated Community. The population is elderly with 44% over 65 in 2010. 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Spalding CSD MSR 2-1) There is no income data specifically for the Spalding CSD. However, the area is most likely a Disadvantaged Unincorporated Community. The population is elderly with over 44% over 65 in 2010. MSR 2-2) The Spalding CSD is most likely a DUC. An income survey will be needed to definitely determine as to whether or not this is a DUC. 15 California Government Code Section 56430. (a) (1) 16 California Government Code Section 56430. (a) (2) 18 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 4.3 Spalding Community Services District 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.17 4.3.1 Capacity and Infrastructure The fire department, the marina and the sewer service are described above in this report. These facilities are adequate to serve the community at this time. The challenge for the Spalding CSD is to serve the second homes within the District and to make the owners of the second homes feel included in the District and willing to pay the required taxes and fees. The website is helpful to the District and the remote access to the Board meetings may also allow second home owners to participate. 4.3.2 MSR Determinations on Capacity and Infrastructure for Spalding Community Services District Spalding Fire Department MSR 3-1) The SVFD’s existing firefighting equipment and storage is in good condition and has the capacity to adequately serve current emergency services demands, but would need a facility addition and modification to support future growth. MSR 3-2) The SVFD has a 5-year Capital Improvement Plan that was approved by the Spalding CSD Board in 2018. MSR 3-3) The SVFD currently has adequate response times and an ISO rating comparable or better than other fire protection providers in Lassen County. MSR 3-4) The SVFD currently has adequate fire-fighting equipment. The majority of the District calls are for medical aid, which is not surprising since there are a substantial number of people over 65 within the District. Without an additional revenue stream, the Fire Suppression Assessment Fee will not be adequate to fund future department fire station expansions, fire apparatus purchases, or hire personnel. MSR 3-5 The Spalding CSD should enter into a shared services agreement or an Auto Aid agreement with the Stones Bengard CSD for EMS and fire prevention and suppression services. Costs incurred by the Spalding CSD for response into the Stones-Bengard CSD should be fully reimbursable. 17 California Government Code Section 56430. (a) (3) 19 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Spalding Marina MSR 3-5) The Spalding Marina and Parking lot are in adequate condition. Spalding Wastewater Collection and Treatment System MSR 3-6) The Spalding Wastewater Collection and Treatment System meets the requirements of the California Regional Water Quality Control Board Lohantan Region. MSR 3-7) The Spalding Wastewater Collection and Treatment System requires qualified personnel to operate and maintain the System. 4.4 Financial Ability to Provide Services 18 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 Spalding CSD The Budgets for the Spalding CSD and the Audit are shown at the end of this report in Appendix C and Appendix D. 4.4.2 MSR Determinations on Financing for Spalding CSD Spalding Fire Department MSR 4-1) The SVFD’s current finance levels are inadequate to deliver the level of services required for the community; however, voters have refused to increase the amount of the fire tax in several elections. MSR 4-2) The fire Suppression Assessment Fee needs to be increased to cover the rising cost of providing emergency services, to fund the future expansion of the fire station, to fund future fire apparatus purchases, and to hire personnel. MSR 4-3) With the recruitment and retention of quality and dedicated volunteer firefighters becoming an issue, the SVFD may need to hire paid firefighters at some point in the future to continue to provide emergency services to the community. MSR 4-4) The SVFD should consider annexation to the south end of Eagle Lake. The SVFD already provides emergency services to residents at the south end of Eagle Lake and those residents should be paying the SVFD Parcel assessment fees for fire protection. 18 California Government Code Section 56430. (a) (4) 20 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Spalding Marina MSR 4-5) The Spalding Marina is supported by the parking fees. The parking fees are paid by people using the Marina at the time of use. This makes it easier for people to recognize the value they are receiving for their money. Spalding Wastewater Collection and Treatment MSR 4-6) The Sewer Fees need to be increased and every effort made to collect all fees owed. 4.5 Status of and Opportunities for Shared Facilities19 Purpose: To evaluate the opportunities for a jurisdiction to share facilities and resources to develop more efficient service delivery systems. 4.5.1 Spalding CSD Facilities The Spalding CSD facilities are described above in this report. The Spalding CSD is isolated from other districts and facilities cannot be easily shared. 4.5.2 MSR Determinations on Shared Facilities for Spalding CSD MSR 5-1) Due to limited facility space, there are no opportunities for the SVFD to share its fire station with other fire departments. MSR 5-2) An agreement with the Spalding CSD needs to be executed whereby Spalding CSD is compensated for fire and EMS response into the Stones Bengard CSD as had been the case in the past. MSR 5-3) The Spalding Marina is an isolated facility. MSR 5-4) The Spalding wastewater collection and treatment system cannot be shared with other areas since no other areas are close by. MSR 5-5) The Spalding CSD does cooperate with the County of Lassen to collect taxes and fees and to maintain reserve funds and accounts. MSR 5-6) Rather than shared facilities, the Spalding CSD could examine opportunities for shared administration if savings or efficiency could be increased. 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies20 Purpose: To consider the advantages and disadvantages of various government structures that could provide public services, to evaluate the management capabilities of 19 California Government Code Section 56430. (a)(5) 20 California Government Code Section 56430. (a)(6). 21 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 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 Government Structure The Spalding CSD has a full five-member Board of Directors, a Manager, administrative staff and sewer service operational staff. 4. 6.2 MSR Determinations on Local Accountability and Governance for the Spalding Community Services District In California special districts are bound by laws applicable to special districts. If followed, good governance and improved service delivery will result. While each special district in California is unique in the specific manner in which it is governed and operates. All special districts are required to follow certain state and federal statutes and constitutional provisions. Accordingly, it is essential governance powers, revenues and operations, transparency, elections, and specific operational requirements be followed. For Example, the Brown Act, Public Records Act, Political Reform Act, California Environmental Quality Act, Proposition 218 and the California Voting Rights Act, among others. Special Districts are formed via Special Legislation or Special Acts prescribing special operational requirements for each type of special district. 6.1) The Spalding Community Services District is encouraged to be current with requirements under which it is governed. This may be accomplished by attending annual ethics training, joining local and state organizations for special districts and participating in classes specific to district operations. Spalding Fire Department MSR 6-2) The SVFD should work with the Lassen County Board of Supervisors, the Lassen County Local Agency Formation Commission and other districts in the County to see if a County-wide CSA, or County-wide fire protection district, or at a minimum consolidation with the Stones– Bengard Fire Protection District would be a benefit. MSR 6-3) The SVFD utilizes the Spalding CSD website for public outreach and educational efforts. MSR 6-4) The Spalding Community Services District has a five-member Board of Directors and a General Manager that oversees the SVFD. Spalding Marina MSR 6-5) The Spalding Marina and community facilities have the lowest budget of the three functions for the District. It is a benefit for the Marina to be part of the CSD because it would be difficult to have a self-supporting recreation district. 22 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Spalding Sewer Department MSR 6-7) The Spalding sewer department is the most expensive operation of the District and requires the most paid staff. MSR 6-8) The Spalding CSD benefits from having a five-member Board of Directors as required by law. Every effort should be made to provide the Board members with the training and information needed to comply with the State laws and to govern the District well. MSR 6-9) The District maintains an office, website, billing service for the sewer service and operation of the wastewater collection and treatment system. The District should maintain an educated and dedicated staff to provide the best service to the public. Turnover and vacancies can be costly. Cooperation with other districts could be a benefit.5 SPALDING COMMUNITY SERVICES DISTRICT SPHERE OF INFLUENCE UPDATE 5.1 Recommendation for Spalding Community Services District Sphere of Influence The SVFD should consider annexation to the south end of Eagle Lake. The SVFD already provides emergency services to residents at the south end of Eagle Lake and those residents should be paying the SVFD Parcel assessment fees for fire protection 5.2 Present and Planned Land Uses in the Spalding Community Services District Area, Including Agricultural and Open Space Lands21 5.2.1 County General Plan and Zoning for Spalding Community Services District SOI Area The Community of Spalding is a summer home tract consisting of approximately 764 acres surrounded on three sides by the Lassen National Forest and by Eagle Lake to the east. The community includes approximately 150 structures, mostly of which are residential with a few being commercial. Though small, the Community of Spalding is heavily influenced by the area’s recreational opportunities. During a summer weekend, the population in the community and surrounding area can exceed 1,500. 5.2.2 SOI Determinations on present and planned land uses in the Spalding CSD Area SOI 1-1) The Spalding CSD area is designated for housing but is not expected to expand beyond the present boundary of the CSD. SOI 1-2) The Lassen County General Plan shows the Spalding area designated for housing within the CSD but the surrounding area is for various types of open space. 21 California Government Code Section 56425 (e)(1) 23 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 5.3 Present and Probable Need for Public Facilities and Services in the Spalding Community Services District Area22 5.3.1 Municipal Service Background Fire Department The SVFD is an all-risk volunteer fire department responsible for emergency responses within the Spalding CSD and surrounding areas. The emergency responses include structure fires, wildland fires, vehicles fires, medical emergencies, hazardous material incidents and technical rescue responses. Annually, the SVFD responds to approximately 50 requests for service. Through the California Fire Service and Rescue Emergency Mutual Aid System, the SVFD annually responds to multiple requests for mutual aid from seven different surrounding fire departments (Stones-Bengard VFD, Lake Forest FPD, CALFIRE, USFS Lassen NF, Adin VFD, Madeline VFD and Susanville FD). Due to how rural Lassen County is and the lack of dedicated volunteer firefighters in other communities, we frequently respond to assist other fire departments through Mutual Aid. The SVFD historically has struggled to meet the demand for fire services with existing revenues. Consequently, there has been insufficient funding (past and present) to purchase additional or replace/repair current much needed PPE, equipment and fire apparatus. The SVFD’s current finance levels are inadequate to deliver the level of services required for the community. Fees need to be increased to cover the rising cost of providing emergency services. With the recruitment and retention of quality and dedicated volunteer firefighters becoming an issue, the SVFD may need to hire paid firefighters at some point in the future to continue to provide emergency services to the community. This would require a fire station addition and some upgrades to be adequate for future growth. Recreation The recreation services provided include the marina and the community center. The main source of income is from Annual marina parking fees. The budget for recreation services is smaller than the Fire Department and Sewer Service budgets. Wastewater Collection and Treatment The sewer service is necessary to allow the residential use of the development in compliance the California Regional Water Quality Control Board regulations. The sewer service requires qualified personnel to operate the system and billing the landowners to pay for the service. The budget for the sewer service is the largest of the three budgets for the Spalding CSD. 22 California Government Code Section 56425 (e)(2) 24 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Spalding Community Services District SOI 2-1) There is a need for the Spalding CSD (Volunteer) Fire Department and this need will continue as long as the houses are occupied. SOI 2-2) There is a need for the Spalding CSD to operate the Marina. The Marina does not generate sufficient revenue to have a separate district but can be maintained in combination with other public services. SOI 2-3) There is a need for the Spalding CSD Sewer Service to comply with State laws for wastewater disposal and water quality. This need will continue into the future. 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services23 5.4.1 Spalding Community Services District Capacity Background The Spalding CSD has adequate capacity to serve the community. The District does not have a great deal of reserve capacity. The District could make extra efforts to maintain connections and participation from seasonal residents. 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Spalding Community Services District SOI 3-1) The SVFD’s existing facility is in good condition and has the capacity to adequately serve current emergency services demands, but would require an addition and some upgrades to be adequate for future growth. SOI 3-2) The SVFD does have a 5-year Capital Improvement Plan that was approved by the Spalding CSD Board in 2018. SOI 3-3) The Marina is adequate and the administration of the Marina and Community Center is well integrated with the other services. SOI 3-4) The Sewer Service is adequate. Every effort should be made to collect all bills owed to the District. SOI 3-5 Since the Spalding CSD is responding to calls in the Stones Bengard CSD area the districts should enter into a shared services agreement or an Auto Aid agreement with compensation given to the responding agency. 5.5 Social or Economic Communities of Interest for Spalding Community Services District24 23 California Government Code Section 56425 (e)(3) 24 California Government Code Section 56425 (e)(4) 25 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 5.5.1 Spalding Community Services District Community Background 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Spalding Community Services District SOI 4-1) The SVFD helps to provide a community identity by sponsoring three pancake breakfasts annually, which are unique to the Spalding community. These events had to be cancelled due to the Corona Virus Pandemic but may be resumed in the future. SOI 4-2) Spalding is a small community but has a church, community center and a store. However, it is not a full-service community and is dependent on the City of Susanville, 35 miles away for many services. 5.6 Disadvantaged Unincorporated Community Status25 5.6.1 Disadvantaged Unincorporated Communities There is no income data specifically for the Spalding CSD. However, the area is most likely a Disadvantaged Unincorporated Community. The population is elderly with over 44% over 65 in 2010. An income survey will be needed to definitely determine as to whether or not this is a DUC. 5.6.2 Spalding Community Services District Disadvantaged Unincorporated Community Status SOI 5.1) The Spalding CSD is most likely a DUC. An income survey will be needed to definitely determine as to whether or not this is a DUC. 25 California Government Code Section 56425 (e)(5) 26 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 APPENDIX A LOCAL GOVERNEMENT SPENDING ISSUES 1 Municipal Financial Constraints Municipal service providers are constrained in their capacity to finance services by the inability to increase property taxes, requirements for voter approval for new or increased taxes, and requirements of voter approval for parcel taxes and assessments used to finance services. Municipalities must obtain majority voter approval to increase or impose new general taxes and two-thirds voter approval for special taxes. Limitations on property tax rates and increases in taxable property values are financing constraints. Property tax revenues are subject to a formulaic allocation and are vulnerable to State budget needs. Agencies formed since the adoption of Proposition 13 in 1978 often lack adequate financing. 1.1 California Local Government Finance Background The financial ability of the cities and special districts to provide services is affected by financial constraints. City service providers rely on a variety of revenue sources to fund city operating costs as follows: Property Taxes Benefit Assessments Special Taxes Proposition 172 Funds Other contributions from city or district general funds. As a funding source, property taxes are constrained by statewide initiatives that have been passed by voters over the years and special legislation. Seven of these measures are explained below: A. Proposition 13 Proposition 13 (which California voters approved in 1978) has the following three impacts: • Limits the ad valorem property tax rate • Limits growth of the assessed value of property • Requires voter approval of certain local taxes. Generally, this measure fixes the ad valorem tax at one percent of value; except for taxes to repay certain voter approved bonded indebtedness. In response to the adoption of Proposition 13, the Legislature enacted Assembly Bill 8 (AB 8) in 1979 to establish property tax allocation formulas. B. AB 8 Generally, AB 8 allocates property tax revenue to the local agencies within each tax rate area based on the proportion each agency received during the three fiscal years preceding adoption of Proposition 13. This allocation formula benefits local agencies, which had relatively high tax rates at the time Proposition 13 was enacted. C. Proposition 98 Proposition 98, which California voters approved in 1988, requires the State to maintain a minimum level of school funding. In 1992 and 1993, the Legislature began shifting billions of local property taxes to schools in response to State budget deficits. Local property taxes were diverted from local governments into the Educational Revenue Augmentation Fund (ERAF) and transferred to school districts and community college districts to reduce the amount paid by the State general fund. 27 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Local agencies throughout the State lost significant property tax revenue due to this shift. Proposition 172 was enacted to help offset property tax revenue losses of cities and counties that were shifted to the ERAF for schools in 1992. D. Proposition 172 Proposition 172, enacted in 1993, provides the revenue of a half-cent sales tax to counties and cities for public safety purposes, including police, fire, district attorneys, corrections and lifeguards. Proposition 172 also requires cities and counties to continue providing public safety funding at or above the amount provided in FY 92-93. E. Proposition 218 Proposition 218, which California voters approved in 1996, requires voter- or property owner-approval of increased local taxes, assessments, and property-related fees. A two- thirds affirmative vote is required to impose a Special Tax, for example, a tax for a specific purpose such as a fire district special tax. However, majority voter approval is required for imposing or increasing general taxes such as business license or utility taxes, which can be used for any governmental purpose. These requirements do not apply to user fees, development impact fees and Mello-Roos districts. F. Mello-Roos Community Facilities Act The Mello-Roos Community Facilities Act of 1982 allows any county, city, special district, school district or joint powers authority to establish a Mello-Roos Community Facilities District (a “CFD”) which allows for financing of public improvements and services. The services and improvements that Mello-Roos CFDs can finance include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and administer the annual special taxes and bonded debt. A CFD is created by a sponsoring local government agency. The proposed district will include all properties that will benefit from the improvements to be constructed or the services to be provided. A CFD cannot be formed without a two-thirds majority vote of residents living within the proposed boundaries. Or, if there are fewer than 12 residents, the vote is instead conducted of current landowners. In many cases, that may be a single owner or developer. Once approved, a Special Tax Lien is placed against each property in the CFD. Property owners then pay a Special Tax each year. If the project cost is high, municipal bonds will be sold by the CFD to provide the large amount of money initially needed to build the improvements or fund the services. The Special Tax cannot be directly based on the value of the property. Special Taxes instead are based on mathematical formulas that take into account property characteristics such as use of the property, square footage of the structure and lot size. The formula is defined at the time of formation, and will include a maximum special tax amount and a percentage maximum annual increase. 28 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 If bonds were issued by the CFD, special taxes will be charged annually until the bonds are paid off in full. Often, after bonds are paid off, a CFD will continue to charge a reduced fee to maintain the improvements. G. Development Impact Fees A county, cities, special districts, school districts, and private utilities may impose development impact fees on new construction for purposes of defraying the cost of putting in place public infrastructure and services to support new development. To impose development impact fees, a jurisdiction must justify the fees as an offset to the impact of future development on facilities. This usually requires a special financial study. The fees must be committed within five years to the projects for which they were collected, and the district, city or county must keep separate funds for each development impact fee. 1.2 Financing Opportunities that Require Voter Approval Financing opportunities that require voter approval include the following five taxes: 1. Special taxes such as parcel taxes 2. Increases in general taxes such as utility taxes 3. Sales and use taxes 4. Business license taxes 5. Transient occupancy taxes Communities may elect to form business improvement districts to finance supplemental services, or Mello-Roos districts to finance development-related infrastructure extension. Agencies may finance facilities with voter-approved (general obligation) bonded indebtedness. 1.3 Financing Opportunities that Do Not Require Voter Approval Financing opportunities that do not require voter approval include imposition of or increases in fees to more fully recover the costs of providing services, including user fees and Development Impact Fees to recover the actual cost of services provided and infrastructure. Development Impact Fees and user fees must be based on reasonable costs, and may be imposed and increased without voter approval. Development Impact Fees may not be used to subsidize operating costs. Agencies may also finance many types of facility improvements through bond instruments that do not require voter approval. Water rates and rate structures are not subject to regulation by other agencies. Utility providers may increase rates annually, and often do so. Generally, there is no voter approval requirement for rate increases, although notification of utility users is required. Water providers must maintain an enterprise fund for the respective utility separate from other funds, and may not use revenues to finance unrelated governmental activities. 2 Public Management Standards While public sector management standards do vary depending on the size and scope of an organization, there are minimum standards. Well-managed organizations do the following eight activities: 1. Evaluate employees annually. 29 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 2. Prepare a budget before the beginning of the fiscal year. 3. Conduct periodic financial audits to safeguard the public trust. 4. Maintain current financial records. 5. Periodically evaluate rates and fees. 6. Plan and budget for capital replacement needs. 7. Conduct advance planning for future growth. 8. Make best efforts to meet regulatory requirements. Most of the professionally managed and staffed agencies implement many of these best management practices. LAFCo encourages all local agencies to conduct timely financial record-keeping for each city function and make financial information available to the public. 3 Public Participation in Government The Brown Act (California Government Code Section 54950 et seq.) is intended to insure that public boards shall take their actions openly and that deliberations shall be conducted openly. The Brown Act establishes requirements for the following: • Open meetings • Agendas that describe the business to be conducted at the meeting • Notice for meetings • Meaningful opportunity for the public to comment Few exceptions for meeting in closed sessions and reports of items discussed in closed sessions. According to California Government Section 54959: Each member of a legislative body who attends a meeting of that legislative body where action is taken in violation of any provision of this chapter, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under this chapter, is guilty of a misdemeanor. Section 54960 states the following: (a) The district attorney or any interested person may commence an action by mandamus, injunction or declaratory relief for the purpose of stopping or preventing violations or threatened violations of this chapter by members of the legislative body of a local agency or to determine the applicability of this chapter to actions or threatened future action of the legislative body. 30 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 APPENDIX B SPALDING CSD WASTE DISCHARGE REQUIREMENTS CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD LAHONTAN REGION BOARD ORDER No. R6T-2006-0020 WDID NO 6A180506011 WASTE DISCHARGE REQUIREMENTS FOR SPALDING COMMUNITY SERVICES DISTRICT SEWAGE EVAPORATION PONDS Lassen County The California Regional Water Quality Control Board, Lahontan Region (Water Board) finds: 1. Discharger For the purposes of this Order, Spalding Community Services District (CSD) is referred to as the “Discharger.” 2. Facility For the purposes of this Order, the Discharger’s sewage evaporation ponds are referred to as the “Facility.” The Facility has not yet been constructed. Domestic sewage from approximately 800 septic tanks will be collected and disposed of at the Facility. 3. History of Previous Regulation by the Water Board This is a new item before the water Board. However, pertinent history for the Order includes the following. The Water Quality Control Plan for the North Lahontan Basin was amended in September 14, 1984 and the Water Board adopted the following waste discharge prohibition: “The discharge of waste from the Spalding Tract of Stones-Bengard subdivision with other than zero discharge of nutrients to any surface water or ground waters in the Eagle Lake Basin is prohibited after September 14, 1989.” In May 0f 1991 the Water Board issued over 600 Cease and Desis Orders to individual property owners for violating the above-cited prohibitions. The Discharger has been in various planning stages for a collection and disposal system for the community since before the issuance of the Cease and Desist Orders. The construction and operation of the disposal system will eliminate subsurface discharges of domestic wastewater in the area served by this Facility, and thereby eliminate discharges of nutrients to comply with the prohibition. 4. Reason for Action The Discharger proposes to construct and operate a community sewage collection, treatment and disposal system that will collect the sewage liquids from individual septic tanks serving a mixture of homes and commercial businesses in the Spalding Track development. The Discharger submitted a complete report of waste discharge on December 27, 2005 and revised the report on April 4, 2006. This Order specifies applicable requirements for the construction and operation of the proposed Facility. 31 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 5. Facility Location The Facility is to be sited approximately two and one-half miles north of the Spalding Tract. Sections 24 and 25 of T33N, R4W, MDB&M, as shown on Attachments “A”. (Note: Not attached to this report.) 6. Description of Facility and Discharge The Facility will be the disposal location for the sewage from both the residential and commercial development in the Spalding Tract subdivision at Eagle Lake. Each residential or commercial connection will maintain and operate an individual septic tank that will provide partially-treated wastewater to the collection system. The individual septic tanks are not under the ownership or control of the Discharger and are not regulated under the provisions of this Order. The Discharger will ensure that each septic tank connected to the sewage collection system has a filter installed to prevent solids above a certain size from entering the collection system. Most of the connection will operate by gravity. Sewage from over 50 sites will be pumped into the gravity main collection system using individually-owned pumping systems, as required by the Discharger. The collection system will convey the sewage to three evaporation ponds that are located approximately two miles north of the Spalding Tract. Pond 1 will be 9.2 acres and Ponds 2 and 3 will be 5.5 acres each as shown in Attachment “B.” (Note: Not attached to this report.) All ponds will be constructed to a minimum depth of seven feet (five feet of storage) and will have a 60-mil high-density polyethylene liner. All of the ponds will both store and evaporate liquids. Total storage with two feet of freeboard is estimated to be between 32 and 33 million gallons. The net pan evaporation rate is approximately 41 inches per year. The disposal system is designed for an annual average daily flow rate of 37,500 gallons per day, which translates to 13.7 million gallons annually. The design flow rates are based on assumed rates for occupancy (year-round/seasonal), wastewater generation, and growth (to buildout). Of the estimated 1000 connections at build out approximately 590 are currently developed. A past survey indicated current patterns are approximately: 1 of 4 homes-permanent, year-round 2 of 4 homes-greater than six months a year; and 1 of 4 homes-less than six months a year. These patterns may change following the construction of the Facility. 7. Sludge Treatment and Disposal The Discharger maintains that each septic tank owner will be responsible for the storage and proper disposal of the accumulated solids in their respective septic tank. Because filters will be required for each septic tank, solid accumulation at the Facility is anticipated to be minimal, mainly solids and salts precipitated by evaporation. The estimated solids build-up from evaporation only in the ponds over a thirty-year period is less and one-half inch. 32 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 8. Authorized Disposal Site The authorized disposal site for the discharge of partially treated sewage from the individual septic systems is at Ponds 1, 2, and 3. No other discharge location is authorized. 9. Site Geology The Eagle Lake region has outcrops of basalt, older lake deposits and recent lake deposits. A composite soil sample collected at the proposed site for the evaporation ponds was characterized as clayey sand. 10. Site Hydrology The Facility will be located at an elevation of 5135 feet above mean sea level. Water Board Resolution No. 82-6 defines the high water line of Eagle Lake to be 5117.5 feet. There are no surface waters at the proposed location of the Facility. 11. Site Hydrogeology Depth to ground water at the proposed disposal location is estimated to be 15 feet below grade (5120 feet mean sea level). Ground water in the area is general good in quality. No water samples have been collected to date in the groundwater beneath the Facility. This Order requires that ground water monitoring wells be constructed and sampled twice, at a minimum, prior to discharging to the evaporation ponds. For the purposes of this Order the pre-discharge sample results will be considered representative of background and/or pre-project water quality unless the Discharger collects additional samples to characterize natural variability prior to discharging and provides the results to the Water Board. After the discharge to the Facility begins, ground water monitoring shall be conducted quarterly. 12. Basin Plan The Water Board adopted the Water Quality Control Plan for the Lahontan Region (Basin Plan, which became effective in 1995. This Order implements the requirements of the Basin Plan. 13. Receiving Water The potential receiving water for the discharge is the Eagle Lake Valley Basin (Department of Water Resources Basin No. 6-96). The beneficial uses for the ground waters in the Eagle Lake Valley Basin, as specified and defined in the Basin Plan are: a. Municipal and Domestic Supply (MUN) b. Agricultural (AGR) c. Fresh Water Replenishment (FRSH) 14. California Environmental Quality Act Compliance The Discharger, acting as the California Environmental Quality Act (CEQA), Public Resources Code section 21000, et seq.) Lead Agency, prepared a Draft Environmental Impact Report (EIR) for the Spalding Community Services District Wastewater Collection and Treatment Facilities (Project) and circulated the Draft EIR for a public review and comment. The Final EIR for the Project was completed and certified by the Discharger on May 2, 2000. When an EIR has been prepared for a project, a Responsible Agency shall not approve the project as proposed, pursuant to California Code of Regulations, title 14, section 15096, subdivision (g)(2), if the agency finds any feasible alternative or feasible 33 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 mitigation measures within its powers that would substantially lessen or avoid any significant effect the project would have on the environment. The Water Board, acting as a CEQA Responsible Agency, has evaluated the Final EIR for significant and potentially significant impacts to water quality, and the adequacy of proposed mitigation measures to lessen or avoid any such effects on water quality. As a result of this evaluation, the Water Board finds that changes or alterations have occurred in the Project description and proposed mitigation measures that deviate in some respects from the specific alternatives evaluated by the Lead Agency. Potentially significant water quality impacts and mitigation measures due to the changes are avoided or reduced to insignificant levels by actions proposed by the Discharger to implement feasible impact avoidance, minimization and mitigation measures, as verified by monitoring and reporting requirements of this Water Board Order. Attachment D provides detailed CEQA discussion and findings supporting the Water Board’s action to approve the project and to issue waste discharge requirements for the Facility based on the Final EIR and/or other information in the record. (Attachment D not included in this report.) This Responsible Agency statement is supported by substantial evidence in the record. The Water Board will file a CEQA Notice of Determination with the State Clearinghouse following adoption of waste discharge requirements. 15. Notification of Interested Parties The Water Board has notified the Discharger and interested parties of its intent to issue waste discharge requirements for the proposed discharge. 16. Consideration of Public Comments The Water Board, in a public meeting, heard and considered all comments pertaining to the discharge. IT IS HEREBY ORDERED that, pursuant to California Water Code section 13263, the Discharger shall comply with the following: I. DISCHARGE SPECIFICATIONS A. Flow Limitation The total flow of wastewater to the authorized disposal site between October 1 and September 30 of consecutive years shall not exceed 13.7 million gallons. B. Receiving Water Limitations The discharge of waste shall not cause the presence of the following substances or conditions in the ground waters of the Eagle Lake Valley Basin: 1. Any perceptible color, odor, taste or foaming. 2. Coliform organisms attributable to human wastes. 3. Toxic substances in concentrations that individually, collectively, or cumulatively cause detrimental physiological responses in human, plants, animals, or aquatic life. 4. Identifiable chlorinated hydrocarbons, organophosphates, carbamates, and other pesticide and herbicide groups, in summations, in excess of the lowest detectable levels. 5. Concentrations of chemical constituents in excess of the maximum contaminant levels or secondary maximum contaminant levels based upon drinking water standards 34 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 specified by the more restrictive of the California Code of Regulations, title 22, Division 4, Chapter 15, or 40 Code of Federal Regulations part 141. C. General Requirements and Prohibitions 1. The discharge of waste from the Spalding Tract subdivision with other than a zero-discharge of nutrients to any surface waters or ground waters in the Eagle Lake basin is prohibited. 2. The discharge of wastewater except to the authorized disposal site is prohibited. 3. The discharge, bypass, or diversion of raw or partially treated sewage, sewage sludge, grease, or oils from the collection, transport, treatment, or disposal facilities to adjacent land areas or surface waters is prohibited. 4. The integrity of any pond liners shall be maintained throughout the life of the ponds and shall not be diminished as the result of any maintenance or cleaning operation. 5. In the event of an odor or nuisance problem, corrective measures shall be implemented immediately to eliminate the problem. 6. Fencing shall be placed and maintained on the perimeter of the evaporation ponds to prevent public access. 7. The discharge shall not cause a pollution as defined in Water Code section 13050, or a threatened pollution. 8. Neither the treatment nor the discharge of waste shall cause a nuisance as defined in Water Code section 13050. 9. The use of evaporation ponds to store a hazardous waste, as defined in the California Code of Regulations, title 26, is prohibited. This includes any waste concentrated to hazardous waste levels by the evaporation of liquids in the ponds. 10. The vertical distance between the liquid surface elevation and lowest point in an evaporation pond dike or invert of an overflow structure shall not be less than two (2) feet. 11. If the total flow to the Facility between October 1 and September 30 of consecutive years exceeds 80% of the designed capacity (13.7 million gallons), the Discharger shall file a revised report of waste discharge signed by a registered California Civil Engineer documenting available capacity relative to anticipated flow increases due to potential new development of parcels in the Spalding Tract or other causes. 12. The Discharger operating under this permit shall be subject to an annual fee pursuant to the California Code of Regulations, title 23, section 2200 et seq. as amended. 35 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 II. PROVISIONS A. Special Provisions for Pond Construction 1. A Construction Quality Assurance Plan (CQA plan) was submitted to the Water Board with the report of waste discharge. The CQA plan includes specifications for sub- grade preparation, inspection frequency for liner construction, testing frequency for both destructive testing and non-destructive liner testing, and qualifications for the CQA Officer and the CQA inspector. The evaporation ponds shall be constructed in accordance with the construction specifications and the CQA plan. 2. No discharge to the Facility is authorized until the Discharger, through the CQA officer, certifies that the Facility is constructed in accordance with the CQA plan, the certification is accepted in writing by the Water Board Executive Officer and two ground water monitoring sampling events have been conducted with the results submitted to the Water Board. B. Cease and Desist Orders for Spalding Tract Subdivision The Water Board will consider rescinding existing Cease and Desist Orders on the Spalding Tract property owners after the Facility is operational, and the Discharger confirms that properties with septic systems are connected to the collection and disposal system in accordance with the Discharger’s requirements. C. Standard Provisions The Discharger shall comply with the “Standard Provisions for Waste Discharge Requirements” dated September 1, 1994, in Attachment “C”, which is made part of this Order. (Attachment C is not included in this report.) D. Monitoring and Reporting 1. Pursuant to Water Code section 13267, subdivision (b), the Discharger shall comply with Monitoring and Reporting Program No. R6T-2006-(Proposed) as specified by the Water Board Executive Officer. 2. The Discharger shall comply with the “General Provisions for Monitoring and Reporting” dated September 1, 1994, which is attached to and made part of the Monitoring and Reporting Program. (Not included in this report.) E. Operator Certification The Facility shall be supervised by personnel possessing a wastewater treatment plant operator certificate of appropriate grade pursuant to Classification of Wastewater Treatment Plants and Operator Certification, California Code of Regulation, title 23, section 3670, et. Seq. I, Harold J. Singer, Executive Officer, do hereby certify that the foregoing is a full, true, and correct copy of an Order adopted by the California Regional Water Quality Control Board, Lahontan Region, on May 11, 2006. 36 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 APPENDIX C SPALDING CSD BUDGETS SPALDING CSD BUDGET 2020-2021 DRAFT-225 FIRE FUND 2019-2020 2020-2021 Account # FIRE-BALANCES AND INCOME Actual Budget 2011200 Misc. Income (Donations, Equip. Sales, etc.) 18,136 - 2000903 Fire Parcel Assessment Fee (225 Fund) 32,724 32,724 2000903 Fire Parcel Assessment Fee Prior Year 2,110 2,110 2003000 Interest 1,439 1,439 2007200 Federal Grants 77,535 - Revenue Only 131,944 36,273 Revenue, Transfers In and Cash $131,944 $36,273 FIRE-MATERIALS AND SERVICES 3000100 Salaries and Wages 340 2,000 3000100 Volunteer Firefighter Stipend 5,000 - 3000211 Special District Benefits - 240 3001100 Clothing and personal 1,245 - 3001200 Communications 5,018 4,500 3001300 Food 376 245 3001500 Insurance (workers Comp. auto/Liability) 14,426 14,450 3001700 Maintenance Equipment 2,372 - 3001701 Maintenance Vehicles and Fuel 12,542 10,000 3001800 Maintenance Building/Improvements 11,920 1,000 3001900 Medical Supplies 192 192 3002000 Memberships 15 15 3002200 Office Expenses 462 124 3002205 Grant Expenditures 113,053 - 3002300 Professional and Specialized Services 85 85 3002400 Publications and Legal Notices 35 35 3002700 Small Tools and Minor Equipment 9,706 706 3002800 Special Department Expense 427 427 3002900 Transportation and Travel 300 300 3002901 Conferences and Training 154 154 3003000 Utilities 601 601 3006100 Buildings/Improvements-Capital Improvement 1,800 - Total Expenses and Input to Reserve Accounts 180,069 35,074 Budget Balance (Revenue Minus Total Expenses) (48,125) 1,199 FIRE-TRUST ACCOUNTS Balance New Balance 7603383 Capital Improvement Fees (Fire) 17,879 225 Fire Parcel Assessment Fees (Fire) 44,569 GPR General Purpose Revenue Fund (Fire) 7,028 The Fire Department Budget exceeded the revenue in 2019-2020 so expenses had to be reduced for 2020-2021. Also, the District spent grant funds in 2019-2020 so that budget was larger than the 2020-2021 proposal. 37 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING CSD BUDGET 2020-2021 DRAFT-231 RECREATION FUND 2019-2020 2020-2021 Account RECREATION BALANCES AND INCOME Actual Budget # 2003000 Interest 138 138 2000600 Other Charges Current Services 85 85 2001300 Annual Parking Permits 8,375 8,375 2001300 Day Use Fees 669 669 Revenue Only 8,598 8,598 Revenue, Transfers In and Cash 9,267 9,267 RECREATION MATERIALS AND SERVICES 3000100 Salaries and Wages 250 6,220 3000211 Special District Benefits 85 746 3001700 Maintenance Equipment 240 240 3001800 Maintenance Building/Improvements 624 624 3002700 Small Tools and Minor Equipment 75 75 3002800 Special Department Expense 714 714 3003000 Utilities 539 539 Capital Reserves % 25% Total Expenses and Input to Reserve Accounts $2,527 $9,158 Budget Balance (Revenue Minus Total Expenses) 6,740 109 RECREATION TRUST ACCOUNTS 7603302 Recreation Trust $8,372 The Recreation Fund gets most of the money from the annual parking permits. The proposed budget for 2020-2021 shows that the Recreation Fund will share a portion of the salaries for the office staff. 38 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING CSD BUDGET 2020-2021 DRAFT-227 SEWER FUND Account SEWER BALANCES AND INCOME 2019-2020 2020-2021 # Actual Budget 2003000 Interest 45 0 2010600 Sewer Operations/Maintenance 202,238 202,238 Assessments 2000600 Other Charges Current Services 592 592 Revenue Only 202,875 202,830 Revenue, Transfers In and Cash 202,875 202,830 SEWER MATERIALS AND SERVICES 3000100 Salaries and Wages 56,831 97,728 3000211 Special District Benefits 18,2602 11,727 3001200 Communications 18,442 8,442 3001300 Food 65 65 3001400 Household Expenses 558 558 3001500 Insurance (workers Comp. auto/Liability) 11,298 11,298 3001700 Maintenance Equipment 20,812 5,000 3001701 Maintenance Vehicles and Fuel 3,207 3,207 3001800 Maintenance Building/Improvements 26,084 4,000 3002000 Memberships 2,364 2,379 3002200 Office Expenses 10,408 5,000 3002201 Postage 302 302 3002205 Grant Expenditures 12,995 - 3002300 Professional and Specialized Services 117,182 40,000 3002400 Publications and Legal Notices 290 290 3002500 Rents and Leased Equipment 2,061 - 3002700 Small Tools and Minor Equipment 872 872 3002800 Special Department Expense 17 17 3002900 Transportation and Travel 2,000 2,000 3002901 Conferences and Training 1,500 1,500 3003000 Utilities 12,921 12,921 3006100 Buildings/Improvements-Capital 1,800 800 Improvement Bond/Solar 4,800 4,800 Total Expenses and Input to Reserve Accounts 325,069 212,891 Budget Balance (Revenue Minus Total Expenses) (122,194) (10,061) SEWER TRUST ACCOUNTS 7603405 Capital Replacement Fund (Sewer) 382,863 7603374 Bond Redemption Fund (Sewer) 442,667 7603376 Bond Debt Service Reserve (Sewer) (US Bank) 493,932 The Sewer Fund Budget is shown as over $10,000 more in expenses than income. Most likely savings will be made during the year to end the year with a balanced budget. 39 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 APPENDIX D SPALDING CSD AUDIT SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET JUNE 30, 201926 Governmental Fund Enterprise Fire and Marina Fund Sewer General Adjustments Statement Total Fund of Net Position ASSETS Current assets: Cash and 97,946 - 97,946 19,131 117,077 investments Accounts 111 - 111 24,112 24,223 receivable Prepaid - - - 5,397 5,397 expense Total current 98,057 - 98,057 48,640 146,697 assets Capital assets, - 6,539,880 6,539,880 13,461,982 20,001,862 at cost Less, - 1,503,682 1,503,682 4,832,658 6,336,340 accumulated depreciation - 5,036,198 5,036,198 8,629,324 13,665,522 Restricted cash 18,209 - 18,209 392,547 410,756 $116,266 $5,036,198 $5,152,464 $9,070,511 $14,222,975 LIABILITIES AND NET POSITION Current Liabilities: Accounts - - - - - payable Payroll liabilities - - - 3,371 3,371 Total current liabilities Fund balances: Restricted - - - Committed 18,209 (18,209) - Unassigned 98,057 (98,057) - Total fund 116,266 (116,266) balances Total liabilities $116,266 and fund balances Net position: Net investment 5,036,198 5,036,198 8,629,324 13,665,522 in capital assets Restricted - - - - Unrestricted 116,266 116,266 437,816 554,082 5,152,464 5,152,464 9,067,140 14,219,604 $5,036,198 $5,152,464 $9,070,511 $14,222,975 The sewer fund (an enterprise fund) is larger than the fire and marina funds (government funds). 26 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 4. 40 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION JUNE 30, 201927 Functions/ Program Revenues Net (Expense) Revenue and Changes Programs in Net Position Primary Government Primary Expenses Charges Grants Governmental Business- Total Government for and Activities Type Services Contributions Activities Governmental activities: Fire 238,717 32,819 171,282 (34,616) (34,616) Marina 100,827 6,222 - (94,605) (94,605) Total 339,544 39,041 171,282 (129,221) (129,221) Business-type activities: Sewer 703,468 200,736 - - (502,732) (502,732) Total 703,468 200,736 - - (502,732) (502,732) Total Primary 1,043,012 239,777 171,282 (129,221) (502,732) (631,953) Government General revenues: Property taxes 607 7,810 8,417 Interest income 3,551 9,498 13,049 Other 56,276 18,514 74,790 Total general revenues 60,434 35,822 96,256 Changes in net position (68,787) (466,910) (535,697) Net position-beginning 5,221,251 9,543,050 14,755,301 Net position-ending 5,152,464 9,067,140 14,219,604 27 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 5. 41 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ENTERPRISE FUND-SEWER JUNE 30, 201928 Operating revenues: Sewer Service fees $200,025 Finance charges 711 Total operating revenues 200,436 Operating expenses: Salaries and benefits $77,911 Communications 15,181 Insurance 13,002 Maintenance 38,386 Special Department Expense 2,564 Utilities 16,859 Office 4,662 Depreciation 432,613 Memberships 2,020 Professional service 93,536 Household 1,140 Rent-equipment 2,322 Other 3,272 Total operating expenses 703,468 Operating income (loss) (502,732) Non-operating revenues (expenses): Property taxes 7,810 Interest Income 9,498 Other income 18,514 35,822 Income (loss) before contributions (466,910) Capital contributions - Changes in net position (466,910) Total net Position: Beginning as restated (includes prior year correction) 9,534,050 Ending $9,067,140 28 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 6. 42 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF CASH FLOWS-ENTERPRISE FUND-SEWER JUNE 30, 201929 Cash flows from operating activities: Receipts from customers $196,272 Payments to suppliers (191,185) Payment to employees (77,911) *Net cash provided to operating activities (72,824) Cash flows from noncapital financing activities: Receipts from property taxes and other nonoperating income 26,324 Cash flows from capital and related financing activities: Purchase of capital assets $(29,051) Other 30,429 1,378 Cash flows from investing activities: Interest Income 9,498 Net decrease in cash and cash equivalents (35,624) Cash at beginning of year 447,302 Cash at end of year $411,678 Reconciliation of operating income (loss) to net cash provided to operating activities: Loss $(502,732) Adjustments to reconcile operating income to net cash provided to operating activities: Depreciation expense $432,613 Changes in operating assets and liabilities: Receivables (4,464) Prepaids 986 Accrued liabilities 773 429,908 *Net cash provided to operating activities $(72,824) *Net cash for operating activities comes from reserve funds to make up for money not received from sewer fees. 29 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Pages 7-8. 43 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES AND EXPENDITURES-FIRE DEPARTMENT JUNE 30, 201930 General Adjustments Statement Fund of Activities Program expenditures/expenses: Public protection 187,768 - 187,768 Support services - - - Capital outlay 219,225 (219,225) - Depreciation - 50,949 50,949 Total program 406,993 (168,276) 238,717 expenditures/expenses Program revenues: Charges for services and rent 32,819 - 32,819 General revenues: Property taxes 607 - 607 Fees 35,260 - 35,260 Interest income 3,522 - 3,522 Grant income 127,205 - 127,205 Miscellaneous 2,606 1,378 3,984 Donations 44,077 - 44,077 Sale of equipment 15,340 (4,174) 11,166 Total General Revenues 228,617 (2,796) 225,821 Excess of revenues over $(145,557) $165,480 $19,923 (expenditures)/change in net position 30 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 9. 44 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FIRE DEPARTMENT JUNE 30, 201931 Budget Actual Favorable/ (Unfavorable) Variance Revenues: Property taxes - 607 607 Fees 50,013 35,260 (14,753) Interest income 872 3,522 2,650 Grant income - 127,205 127,205 Miscellaneous - 2,726 2,726 Charges for services/rent 35,891 32,819 (3,072) Donations - 44,077 44,077 Sale of equipment - 15,340 15,340 Total revenues 86,776 261,556 174,780 Expenditures: Salaries and benefits 25,000 252 24,748 Clothing and personal 200 626 (426) Communications 2,100 3,806 (1,706) Food 2,000 1,452 548 Household 280 - 280 Insurance 10,528 10,895 (367) Maintenance-equipment 1,100 11,721 (10,621) Maintenance-vehicles 13,000 13,522 (522) Maintenance-buildings 14,000 6,040 7,960 Medical supplies 500 280 220 Memberships 100 15 85 Office 900 659 241 Postage 100 - 100 Grant expense 120,000 114,452 5,548 Professional services 900 668 232 Publications 100 - 100 Small tools 9,000 4,723 4,277 Special Department exp. 100 32 68 Travel 300 - 300 Conferences/training 200 50 150 Utilities 500 - 500 Capital outlay 220,000 219,225 775 Admin. Transfer (in)/out 10,000 10,000 - Miscellaneous - 8,695 8,695 Total expenditures 430,908 407,113 23,795 Excess of revenues over $(344,132) $(145,557) $198,575 (expenditures) 31 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Pages 10-11. 45 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES AND EXPENDITURES-MARINA JUNE 30, 201932 General Adjustments Statement of Fund Activities Program expenditures/expenses: Recreation 4,725 - 4,725 Support services - - - Capital outlay - - - Depreciation - 96,102 96,102 Total program 4,725 96,102 100,827 expenditures/expenses Program Revenues: Charge for services 6,222 - 6,222 General revenues: Interest income 29 - 29 Miscellaneous 5,866 - 5,866 Total general revenues 5,895 - 5,895 Excess of revenues over $7,392 $(96,102) $(88,710) (expenditures)/change in net position SPALDING COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL MARINA JUNE 30, 201933 Budget Actual Favorable/(Unfavorable) Variance Revenues: Interest income 182 29 (153) Miscellaneous 30 5,866 5,836 Charges for services 9,895 6,222 (3,673) Total Revenues 10,107 12,117 2,010 Expenditures: Salaries and benefits 4,058 2,355 1,703 Communications 500 215 285 Special Depart. Expense 1,000 600 400 Operating transfers 2,000 (5,866) 7,866 Household 500 74 426 Maintenance 2,100 780 1,320 Professional services 200 90 110 Other 850 6,183 (5,333) Utilities 800 294 506 Capital Outlay 2,000 - 2,000 14,008 4,725 9,283 Excess of revenues over (expenditures) $(3,901) $7,392 $11,293 32 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 12. 33 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 13. 46 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT CASH AND CASH EQUIVALENTS JUNE 30, 201934 Fire and Marina Sewer Unrestricted cash Petty cash 21 - Cash with County-fire 91,783 - Cash with County-recreation 4,666 - Cash with County-recreation trust 1,476 - Cash with County-sewer - 19,131 TOTAL $97,946 $19,131 Restricted Cash Cash with County Fire Capital Improvement trust 18,209 - Sewer capital replacement fund - 392,547 TOTAL $18,209 $392,547 SPALDING COMMUNITY SERVICES DISTRICT CAPITAL ASSETS JUNE 30, 201935 Balance Additions Disposals Balance 6/30/2018 6/30/2019 Governmental Capital Assets (Fire and Marina) Land and $1,350,000 - - $1,350,000 Improvements Buildings and 3,854,413 - 29,051 3,825,362 Infrastructure Vehicles and 804,657 219,225 9,450 1,014,432 other Marina 350,086 - - 350,086 dredging TOTAL $6,359,156 $219,225 $38,501 $6,539,880 Enterprise (Sewer) Capital Assets Land and $119,211 - - $119,211 Improvements Utility plant 12,440,552 - - 12,440,552 and infrastructure Buildings 698,895 29,051 - 727,946 Vehicles and 174,273 - - 174,273 other TOTAL $13,432,931 $29,051 - $13,461,982 The investment in the sewer system is greater than the investment in the fire department and the marina. 34 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 19. 35 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 20. 47 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SPALDING COMMUNITY SERVICES DISTRICT NET POSITION JUNE 30, 201936 Governmental Enterprise Total Fund Fund (Fire and (Sewer) Marina) Net investment in capital assets $5,036,198 $8,629,324 $13,665,522 Restricted - - - Unrestricted: Designated by Board *18,209 392,547 410,756 Undesignated 98,057 45,269 143,326 Total Net Position $5,152,464 $9,067,140 $14,219,604 *Committed to Fire Capital Improvement 36 Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723-2555, November 15, 2019, Page 21. 48 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 ABBREVIATIONS AB Assembly Bill ACH Aluminum Chloride Hydroxide AC pipe Asbestos-cement pipe ACWA Association of California Water Agencies AF Acre-feet AFA Acre-feet per annum AWWA American Water Works Association BLM Bureau of Land Management (US) CEQA California Environmental Quality Act CFD Community Facilities District CIF Capital Improvement Fee CIP Capital Improvement Program CKH Act Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 County Lassen County CQA Plan Construction Quality Assurance Plan CSA County Service Area CSD Community Services District DUC Disadvantaged Unincorporated Community EDU Equivalent Dwelling Unit EIR Environmental Impact Report ERAF Educational revenue Augmentation Fund FD Fire Department FY Fiscal Year GAC Granular Activated Carbon GASB Government Accounting Standards Board 49 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 GPM gallons per minute ICS Incident Command System ISO International Organization for Standardization IRWM Integrated Regional Water Management Grant Program LAFCo Local Agency Formation Commission LAIF Local Agency Investment Fund (State of California) LAMP Local Agency Management Program (water quality) LNF Lassen National Forest MCL Maximum Contaminant Level MCLG Maximum Contaminant Level Goal MG Million Gallons MGD million gallons per day MRDL Maximum Residual Disinfectant Level MRDLG Maximum Residual Disinfectant Level Goal MSR Municipal Service Review (LAFCo) ND not detectable at testing limit NF National Forest O&M Operations and Maintenance OPR Office of Planning and Research (California) OWTS Onsite Wastewater Treatment System (septic tank) PDWS Primary Drinking Water Standards PG&E Pacific Gas and Electric Company PHG Public Health Goal ppb parts per billion ppm parts per million PVC poly-vinyl-chloride (pipe material) RCAC Rural Community Assistance Corporation RV Recreational Vehicle 50 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 SB Senate Bill SCADA Supervisory Control and Data Acquisition SDWS Secondary Drinking Water Standards SEMSA Sierra Medical Services Alliance SFD Single Family Dwelling SIFC Susanville Interagency Fire Center SOI Sphere of Influence (LAFCo) SR State Route SRA State Responsibility Area (fire protection) STEP Septic Tank Effluent Pump SVFD Spalding Volunteer Fire Department SWRCB State Water Resources Control Board T&D Treatment and Distribution TT Treatment Technique USDA United States Department of Agriculture WTP Water Treatment Plant 51 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 DEFINITIONS Acre Foot (AF): The volume of water that will cover one acre to a depth of one foot, 325,850 U.S. Gallons or 1,233,342 liters (approximately). 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 pastureland. Aquifer: An underground, water-bearing layer of earth, porous rock, sand, or gravel, through which water can seep or be held in natural storage. Aquifers generally hold sufficient water to be used as a water supply. Available Supply: the quantity of groundwater, which can be withdrawn annually from a groundwater basin without exceeding safe yield of the basin. Board of Directors: the legislative body or governing board of a district. Board of Supervisors: the legislative body or governing board of a county. 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. Capital Improvement Plan (CIP): is a short-range plan, usually four to ten years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan. Essentially, the plan provides a link between a municipality, school district, parks and recreation department and/or other local government entity and a comprehensive and strategic plans and the entity's annual budget. Census-Designated Place (CDP): a concentration of population identified by the United States Census Bureau for statistical purposes. CDPs are delineated for each decennial census as the statistical counterparts of incorporated places such as cities, towns, and villages. CDPs are populated areas that lack separate municipal government, but which otherwise physically resemble incorporated places. CDPs are delineated solely to provide data for settled concentrations of population that are identifiable by name but are not legally incorporated under the laws of the state in which they are located. They include small rural communities, colonias located along the U.S. border with Mexico, and unincorporated resort and retirement communities. The boundaries of a CDP have no legal status. Thus, they may not always correspond with the local understanding of the area or community with the same name. However, criteria established for the 2010 Census require that a CDP name "be one that is recognized and used in daily communication by the residents of the community" (not "a name developed solely for planning or other purposes") and recommend that a CDP's boundaries be mapped based on the geographic extent associated with residents' use of the place name. Certified Public Accountant (CPA): the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. 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. 52 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 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.) Infrastructure: Public services and facilities such as sewage-disposal systems, water-supply systems, and other utility systems, schools and roads. Inhabited territory: Inhabited territory means territory within which there reside 12 or more registered voters. The number of registered voters as determined by the elections officer, shall be established as of the date a certificate of filing is issued by the executive officer. All other territory shall be deemed "uninhabited."37 IRWM: The Integrated Regional Water Management (IRWM) Grant Program is a competitive grant program first created under the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Proposition 50) with continuing funding provided by the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coast Protection Bond Act of 2006 (Proposition 84). Complementary funding was also provided by the Disaster Preparedness and Flood Prevention Bond Act or 2006 (Proposition 1E) for Storm water Flood Management Grant Program. The program is administered by the Department of Water Resources to award funds to local public agencies and non-profit organizations, for projects and programs to improve water supply reliability and improve and protect water quality. Such projects and programs must be consistent with an adopted IRWM Plan.38 Land Use Classification: A system for classifying and designating the appropriate use of properties. Leapfrog Development: New development separated from existing development by substantial vacant land. 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. Maximum Contaminant Level (MCL): The designation given by the U.S. Environmental Protection Agency (USEPA) to water-quality standards promulgated under the Safe Drinking Water Act. The MCL is the greatest amount of a contaminant that can be present in drinking water without causing a risk to human health.39 Maximum Contaminant Level Goal (MCLG): the level of a contaminant in drinking water below which there is no known or expected risk to health. MCLGs are set by the U.S. Environmental Protection Agency (USEPA). 37 California Government Code Section 56046 38 State of California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Integrated%20Regional%20Water% 20Management&PropositionPK=4, May 30, 2018. 39 http://ga.water.usgs.gov/edu/dictionary.html 53 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Maximum Residual Disinfectant Level (MRDL): The highest level of a disinfectant allowed in drinking water. There is convincing evidence that addition of a disinfectant is necessary for control of microbial contaminants. Maximum Residential Disinfectant Level Goal (MRDLG): The level of a drinking water disinfectant below which there is no known or expected risk to health. MRDLGs do not reflect the benefits of the use of disinfectants to control microbial contaminants. Per Capita Water Use: The water produced by or introduced into the system of a water supplier divided by the total residential population; normally expressed in gallons per capita per day (gpcd). Percolation: The downward movement of water through the soil or alluvium to a ground water table. pH: a measure of the relative acidity or alkalinity of water. Water with a pH of 7 is neutral; lower pH levels indicate increasing acidity, while pH levels higher than 7 indicate increasingly basic solutions.40 Potable Water: Water of a quality suitable for drinking.41 pound-force per square inch gauge (Psig): a unit of pressure relative to the surrounding atmosphere.42 Proposition 13: (Article XIIIA of the California Constitution) Passed in 1978, this proposition enacted sweeping changes to the California property tax system. Under Prop. 13, property taxes cannot exceed 1% of the value of the property and assessed valuations cannot increase by more than 2% per year. Property is subject to reassessment when there is a transfer of ownership or improvements are made.43 Proposition 218: (Article XIIID of the California Constitution) This proposition, named "The Right to Vote on Taxes Act", filled some of the perceived loopholes of Proposition 13. Under Proposition 218, assessments may only increase with a two-thirds majority vote of the qualified voters within the District. In addition to the two-thirds voter approval requirement, Proposition 218 states that effective July 1, 1997, any assessments levied may not be more than the costs necessary to provide the service, proceeds may not be used for any other purpose other than providing the services intended, and assessments may only be levied for services that are immediately available to property owners.44 Public Health Goal (PHG): The level of a contaminant in drinking water below which there is no known or expected risk to health. PHGs are set by the California Environmental Protection Agency. Ranchette: A single dwelling unit occupied by a non-farming household on a parcel of 2.5 to 20 acres that has been subdivided from agricultural land. Recharge: flow to groundwater storage from precipitation, infiltration from streams, irrigation, spreading basins and other sources of water. Regulatory Action Level (AL): The concentration of a contaminant which, if exceeded, triggers treatment or other requirements that a water system must follow. 40 http://ga.water.usgs.gov/edu/dictionary.html#P, November 29, 2011. 41 http://ga.water.usgs.gov/edu/dictionary.html 42 http://www.convertunits.com/info/psig, March 27, 2012 43 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08 44 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08 54 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 Sanitary Sewer: A system of subterranean conduits that carries refuse liquids or waste matter to a plant where the sewage is treated, as contrasted with storm drainage systems (that carry surface water) and septic tanks or leech fields (that hold refuse liquids and waste matter on-site). Secondary Drinking Water Standards (SDWS): MCLs for contaminants that affect taste, odor, or appearance of the drinking water. Contaminants with SDWSs do not affect the health at the MCL levels. Sphere of Influence (SOI): The probable physical boundaries and service area of a local agency, as determined by the Local Agency Formation Commission (LAFCo) of the county. Treatment Technique (TT): A required process intended to reduce the level of a contaminant in drinking water. Urban: Of, relating to, characteristic of, or constituting a city. Urban areas are generally characterized by moderate and higher density residential development (i.e., three or more dwelling units per acre), commercial development, and industrial development, and the availability of public services required for that development, specifically central water and sewer service, an extensive road network, public transit, and other such services (e.g., safety and emergency response). Development not providing such services may be “non-urban” or “rural”. CEQA defines “urbanized area” as an area that has a population density of at least 1,000 persons per square mile (Public Resources Code Section 21080.14(b)). Urban Services: Utilities (such as water, gas, electricity, and sewer) and public services (such as police, fire protection, schools, parks, and recreation) provided to an urbanized or urbanizing area. Variances and Exemptions: Department permission to exceed an MCL or not comply with a treatment technique under certain conditions. Zoning: The division of a city by legislative regulations into areas, or zones, that specify allowable uses for real property and size restrictions for buildings within these areas; a program that implements policies of the general plan. 55 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 REFERENCES County of Lassen, 2019-2024 Housing Element Public Review Draft, March 2019, prepared by PLACEWORKS, 101 Parkshore Drive, Suite 215, Folsom Ca 95630, 916.245.7500, www.placeworks.com, page 57. County of Lassen, Office of the District Attorney, Investigative Report: The Standish-Litchfield Fire Protection District, 2020. County of Lassen, “The Eagle Lake Area Plan, a part of the Lassen County General Plan 1990”. September 1982 p.17. http://ga.water.usgs.gov/edu/dictionary.html#P, November 29, 2011. http://ga.water.usgs.gov/edu/dictionary.html http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08 http://www.convertunits.com/info/psig, March 27, 2012 http://www.lassencountychamber.org/stats.html October 13, 2007. Lassen Fire Safe Council, Spalding Community Wildfire Assessment Report, May 14, 2014, Page 6. Spalding Community Services District, Merle Lay, Manager, eaglelakescse@citlink.net, September 17, 2007. Spalding Community Services District, Board Information, August 2020. Spalding CSD, Financial Statements and Independent Auditor’s report for the year ended June 30, 2019, Robert W. Johnson, CPA, robertwjohnsoncpagroup@gmail.com, 916-723- 2555, November 15, 2019. Spalding CSD, https://www.spaldingcsd.org/mailbox-services, June 16, 2020. Spalding CSD, https://www.spaldingcsd.org/our-mission, September 1, 2020. Spalding CSD, https://www.spaldingcsd.org/welcome-fishermen, June 16, 2020. State of California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Inte grated%20Regional%20Water%20Management&PropositionPK=4, May 30, 2018. Susanville Interagency Fire Center, June 2019. US Census Bureau, https://www.census.gov/quickfacts/fact/table/lassencountycalifornia,US/PST045219, July 21, 2020. 56 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 PREPARERS LASSEN LAFCo, John Benoit, Executive Officer PO Box 2694, Granite Bay CA 95746 916-797-6003 j.benoit4@icloud.com Christy Leighton, Planning Consultant 555 E. Willow Street, Willows CA 95988 530-934-4597christyleighton@sbcglobal.net 57 Lassen LAFCo Spalding CSD Adopted MSR and SOI October 18, 2021 R 10 E Eagle Lake Rd Spalding Rd Eagle Lake Rd The Strand Spalding Rd kj Spalding Palmetto Wy M ahogany W y 58 N 23 T LASSEN LOCAL FORMATION COMMISSION Spalding Community Services District R 11 E kj Canby ·|}þ 395 Eaglevillekj Lookoutkj·|}þkjAdin kjLikely kj Pittvi kj Nllue kj bBi 2 eie 9 b 9 beerr kjMadeline kjLittle Valley ·|}þ 139 kjTe kj rm Ra o vendale A L Stones Landingkj S Modoc County 4 Spaldingkj ·|}þ 395 S E Lassen County Legend Clear Creek kj L kjW ak e e sJ F tow o ho r n e os s dt t o kj nvil kj l H e e kj r S lo u kj s n a g J n a S J v n kj t u a i e lkj n l n s e kj c d M v L t i i i i i s l o t l l c f h e o n h kj r kjf d ie W l H d e ekj n D r d kjo lo e y n l le g O C U N N Y T kj H C C o o ig u m h n w m ty a u y B n s i o ti u e n s dary Spalding Community Services District Spalding CSD Hallelujah Junction ·|}þ 39 kj 5 S (M e D ct B io & n M al ) Grid P 0 ar 4 c 3 e 7.5 ls 875 1,750 2,625Feet Source: Modoc LAFCo Map Created 7/22/2020 N 33 T Roads