Stones-Bengard Community Services District MSR & SOI - 10/18/21

LASSEN LOCAL AGENCY FORMATION COMMISSION (LAFCo) ADOPTED STONES-BENGARD COMMUNITY SERVICES DISTRICT (CSD) MUNICIPAL SERVICE REVIEW (MSR) AND SPHERE OF INFLUENCE (SOI) UPDATE Resolution 2021-0006 Service Review Resolution 2021-0007 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 STONES-BENGARD COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.1 Community Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.2 Population Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3 STONES-BENGARD COMMUNITY SERVICE DISTRICT . . . . . . . . . . . . . . . . . . . . . 10 3.1 Stones-Bengard CSD Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.1 District Formation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.2 Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.3 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.1.4 Board of Directors Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1.5 District Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.2 Stones Bengard CSD Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.2.1 Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 37.2.2 Stones-Bengard CSD Sewer System . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.3 Stones-Bengard CSD Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.3.1 Stones-Bengard CSD Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3.2 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3.3 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4 STONES-BENGARD CSD MUNICIPAL SERVICE REVIEW (MSR) . . . . . . . . . . . . . 16 4.1 Growth and Population Projections for the Stones-Bengard CSD . . . . . . . . . 16 4.1.1 Population Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 4.1.2 MSR Determinations on Growth and Population Projections . . . . . . . 34 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Stones-Bengard CSD . 16 4.2.1 Determination of Stones-Bengard CSD Area Disadvantaged Unincorporated Community (DUC) Status . . . . . . . . . . . . . . . 16 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Stones-Bengard CSD . . . . . . . . . . . . . . . 16 4.3 Stones-Bengard Community Services District Capacity and Infrastructure 16 4.3.1 Capacity and Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4.3.2 MSR Determinations on Capacity and Infrastructure for Stones-Bengard Community Services District . . . . . . . . . . . 17 4.4 Financial Ability to Provide Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4.4.1 Financial Considerations for Stones-Bengard CSD . . . . . . . . . . . . . 17 4.4.2 MSR Determinations on Financing for Stones-Bengard CSD . . . . . 17 4.5 Status of and Opportunities for Shared Facilities . . . . . . . . . . . . . . . . . . . . . 18 4.5.1 Stones-Bengard CSD Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4.5.2 MSR Determinations on Shared Facilities for Stones-Bengard CSD 18 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4.6.1 Government Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4.6.2 MSR Determinations on Local Accountability and Governance for Stones-Bengard Community Services District . . . . . . . . . . . 19 5 STONES-BENGARD COMMUNITY SERVICES DISTRICT SPHERE OF INFLUENCE UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 5.1 Recommendation for Stones-Bengard Community Services District Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 5.2 Present and Planned Land Uses in the Stones-Bengard Community Services District Area, Including Agricultural and Open Space Lands . . . . . . . 19 5.2.1 County General Plan and Zoning for Stones-Bengard Community Services District SOI Area . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 5.2.2 SOI Determinations on present and planned land uses in the Stones-Bengard CSD Area . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.3 Present and Probable Need for Public Facilities and Services in the Stones-Bengard Community Services District Area . . . . . . . . . . . . . . 20 5.3.1 Municipal Service Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Stones-Bengard Community Services District . . . 20 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.4.1 Stones-Bengard Community Services District Capacity Background 20 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Stones-Bengard Community Services District . . 20 5.5 Social or Economic Communities of Interest for Stones-Bengard Community Services District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 5.5.1 Stones-Bengard Community Services District Community Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Stones-Bengard Community Services District . . . 21 5.6 Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . 21 5.6.1 Disadvantaged Unincorporated Communities . . . . . . . . . . . . . . . . . . 21 5.6.2 Stones-Bengard Community Services District Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . . 21 APPENDIX A LOCAL GOVERNEMENT SPENDING ISSUES . . . . . . . . . . . . . . . . 22 APPENDIX B STONES-BENGARD CSD BUDGET . . . . . . . . . . . . . . . . . . . . . . . 26 APPENDIX C STONES-BENGARD CSD AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . 28 ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 PREPARERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 2 Lassen LAFCo Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard 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 Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 2 STONES-BENGARD COMMUNITY 2.1 Community Background Stones-Bengard CSD is located on the northwest shore of Eagle Lake in central Lassen County. There are no schools in the Stones-Bengard community. The City of Susanville, our County Seat, is located 32 miles south. The community of Stones-Bengard is a summer home/cabin community located along Stones Road between the Eagle Lake Road and the shores of Eagle Lake. There are approximately 75 buildings, ranging from mobile homes and small cabins to large multi- story residences. In all, there are approximately 300 parcels in the community of which approximately 200 are served with community sewer. The Stones Bengard area is served by a community sewer system with capacity to serve all existing and potential future buildout under the current zoning. Building potential within the Stones/Bengard community with well water and sewer service is 20 yew units although the number of vacant pacels is 63. Development is rural in nature with lots averaging 1 acre, although a number of vacant parcels are less than 1 acre. The R-1-B-20 zone has substantial undeveloped acreage, with the 20-acre minimum a function of individual septic systems and wells. These parcels are not included in the land inventory prepared for the 2019-2024 Lassen County Housing Element, as they are considered to provide minimal units per land area. The R-1-B-20 area is steep in some parts and may not be suited to sewer hookup. There is also significant undeveloped PUD land that could be served by the sewer system. This area has no multifamily development, but the PUD zoning allows for such development. 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 $89,500 and $289,500 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. Eagle Lake is a lake at 5,098 feet elevation in Lassen County approximately 15 miles north of Susanville, California. An endorheic alkaline lake, it is the second largest natural lake entirely in the state of California, United States. Virtually all the area surrounding the inhabited communities of western Eagle Lake is federally owned. The USDA Forest Service Lassen National Forest (LNF) manages much of the area west and southwest of Spalding along with the Bureau of Land Management (BLM). Both agencies manage the land under the multiple-use concept. CALFIRE bears the primary responsibility for suppression of wildfires on State Responsibility Areas. CALFIRE maintains full responsibility for wildfire protection on SRA lands in the vicinity of Stones-Bengard. 8 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 2.2 Population Data There is no population data available specifically for the Stones-Bengard CSD. US Census Data from 2019 indicates that the population of Lassen County declined from 2010 to 2019 as follows: Lassen County Population Decline3 Year Lassen County Population 2010 34,895 2019 30,573 12.4% population decline The Median Household Income for Lassen County was $56,362 compared to $71,228 for the State of California. 4 The Median Household Income for Lassen County was 79% of the California Median Household Income. The definition of a “Disadvantaged” household is one with less than 80% of the State Median Household Income ($56,982). Therefore, residents in Lassen County may be considered “disadvantaged”. The poverty rate for Lassen County was 15.8 % compared to only 12.8% for the State. More than fifty percent of the population residing in Stones-Bengard is over 65 years of age. 3 US Census Bureau, https://www.census.gov/quickfacts/fact/table/lassencountycalifornia,US/PST045219, July 21, 2020. 4 US Census Bureau, https://www.census.gov/quickfacts/fact/table/lassencountycalifornia,US/PST045219, July 21, 2020. 9 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 3 STONES-BENGARD COMMUNITY SERVICE DISTRICT 3.1 Stones-Bengard CSD Background 3.1.1 District Formation The Stones Bengard Community Service District was formed according to California Government Code §61000- 61850 to answer the growing need for Fire Suppression, Emergency Medical Response and Waste Water Treatment in the communities of Bucks Bay and Stones Landing. 3.1.2 Contact Information Address: Stones Bengard Community Service District 509-695 Stone Road Susanville, CA 96130 Website: www.stonesbengardcsd.org Phone / Fax: 530-825-3350 Email: stonesb@frontiernet.net District Secretary: Donna Round General Manager and Wastewater Manager: Martin Balding, Consultant Balding Energy Enterprise 508-450 Stoney Lane, Susanville, CA 96130 Phone: 530-825-3841, Email: mbalding@citlink.net Fire Chief: Open 3.1.3 Board of Directors The Board of Directors are residents of the communities and serve on a volunteer basis, they are approved by the Lassen County Board of Supervisors. The State Law requires a Community Services District to have five board members. Board of Directors Chair: Cheryl McCormack (Stones Landing) Term ends December 6, 2024 Vice Chair: Robert Larivee (Stones Landing) Term ends December 6, 2024 Director: Linda Attaway (Stones Landing) Term ends December 6, 2024 Director: Tonya Peddicord (Bucks Bay) Term ends December 9, 2022 Vacant The Board meets on the 2nd Monday of each month at 4:00 p.m. at the Stones Landing Volunteer Fire Department building located at 509-695 Stone Road. It is a concern that there are only four Board members for the District. If the District cannot maintain a five-member Board of Directors the District may have to ask the Lassen County Board of Supervisors to serve as the Board of Directors or to become a County Service Area (CSA) where the Board of Supervisors serves as the Directors. 10 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 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 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). All members of the Stones-Bengard Board of Directors have received ethics training. Training is available on-line at the State of California Fair Political Practices Commission website. 3.1.4 Board of Directors Issues The Lassen County District Attorney recently investigated another special district with regard to problems as follows:5 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 Stones-Bengard CSD Board of Directors minutes posted on the District website show that the Stones-Bengard CSD is in compliance with State Laws and advertises the meetings correctly and reports Board Actions in the minutes correctly. The District had the Lassen County Counsel, Bob Burns, attend the meeting on January 13, 2020. 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. 3.1.5 District Website Every California independent special district is required to maintain a website by Jan. 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) 5 County of Lassen, Office of the District Attorney, Investigative Report: The Standish-Litchfield Fire Protection District, 2020. 11 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 The Stones-Bengard CSD is at: www.stonesbengardcsd.org. The District website contains contact information and the current agenda. The Financial Transaction Reports and the Compensation Reports are not available on the website. 3.2 Stones Bengard CSD Facilities 3.2.1 Fire Department The Stones Bengard Volunteer Fire Department provides limited emergency medical assistance and full structural fire protection. CALFIRE and/or the Spalding Volunteer Fire Department provide emergency medical services and/or fire prevention when available (per Mutual Aid Agreement). Ambulance service is provided by SEMSA, a commercial ambulance services based in Susanville. Mountain Air flight transportation provides services for extreme emergencies. In 2013, the District had the ISO rate the fire protection service and the District received a Public Protection Classification of 6/9.6 This is an improvement from the previous rating of 9/9 (nine is the lowest and one is the highest). The Stones-Bengard Fire Department had eight calls for 2018. The District has a response time of approximately 10 minutes from the time the call is dispatched to arrival on the scene. This is a fairly long time for the size of the District’s Service Area with some of the calls in Bucks Bay. The Fire Department reports that this is mainly due to the fact that the District’s station is 100% volunteer and unmanned. Response time from the time the first engine leaves the station to the farthest area of the District’s Service Area is approximately 4 minutes. If the District’s station were manned, response time would be cut by at least 5-6 minutes.7 The District’s volunteer Fire Chief position is vacant. District staff also includes a paid Secretary, an Assistant Chief (volunteer) and six Firefighters (volunteer). The previous Fire Chief has communicated that it has become increasingly difficult to find community members willing to volunteer. 8 Interim General Manager – Jack Thomas Wastewater Manager – Martin Balding District Secretary and Bookkeeper – Sara Barney Fire Chief – Ryan Barney Recently, EMS and Fire response into the Stones CSD area has been provided by the Spalding CSD without compensation which is likely due to lack of funding and volunteers. An agreement for said services needs to be considered between the Spalding CSD and the Stones Bengard CSD. In the past year Stones has given $500.00 to Spalding CSD. Stones CSD staff indicates there were less than 4 calls during the winter months. During the months when Calfire is manning Grasshopper, Calfire responds to most of the calls for Stones. 6 Stones Bengard Community Services District, Letter from ISO, 4 B Eves Drive, Suite 200, PO Box 961, Marlton NJ 08053-3112 to Mr. Sam Shapiro, Board Chairman, Stones Bengard Community Services District, 509-695 Stones Road , Susanville, CA 96130, May 27, 2013. 7 Stones-Bengard CSD, Sandy Jansen, Secretary, (530-218-6503, Office Phone: 530-835-3350) Response to Lassen LAFCo, February 28, 2019. 8 Stones-Bengard CSD, Sandy Jansen, Secretary, (530-218-6503, Office Phone: 530-835-3350) Response to Lassen LAFCo, February 28, 2019. 12 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 The Susanville Interagency Fire Center reports the following equipment is used by the Stones-Bengard CSD to perform fire protection services: Equipment Type Gallons GPM Drive Other Engine 1,000 1,000 2x4 Engine 600 300 6x6 Pickup 4x4 Utility Vehicle Stones-Bengard Community Services District Water Supply The District has its own water well. 9 The District is also able to use three 12,000-gallon storage tanks within the Castle Rock development for a total storage capacity of 36,000 gallons. The District can also use hydrants at the Resort/RV Park that draw from a 100,000-gallon storage tank. This 5-hydrant system has 67 mains for approximately 80 psi. The District can draw water from Eagle Lake as a last resort (Stones-Bengard-Spalding Community Fire Safe Plan, January 2004/ Fire Chief Jim McCormack, October 6, 2005). Stones-Bengard Community Services District Mutual Aid Agreements The Stones-Bengard Fire Department has a mutual aid agreement with CALFIRE. There is a CALFIRE station near Stones-Bengard (Grasshopper Fire Station at State Route 139). This station is staffed seasonally (has two Type-III fire engines). CALFIRE also has a fire station equipped with one engine at South Eagle Lake, located 12 miles south of Spalding. Stones-Bengard Community Services District Service Calls Stones-Bengard Community Services District Service Calls 201810 Stones-Bengard Assist Total Wildland Fires 0 1 1 Structure Fires 1 1 2 Other Fires/False Alarms 0 1 1 Medicals 5 30 35 TCs 0 3 3 Hazards 0 1 1 Public Assistance/Other 2 1 3 LEO 0 0 0 TOTAL 8 38 46 Stones-Bengard CSD Fire Department is unusual because they provide more assistance to other districts than they have calls within their District. 9 Stones-Bengard CSD, Sandy Jansen, Secretary, (530-218-6503, Office Phone: 530-835-3350) Response to Lassen LAFCo, February 28, 2019. 10 Susanville Interagency Fire Center, June 2019. 13 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 3.2.2 Stones-Bengard CSD Sewer System The Sewer System for the Stones-Bengard CSD is described by the General Manager and Operator, Martin Balding, as follows:11 The wastewater discharge requirements for Stones-Bengard CSD are the same as for most of Eagle Lake, normally referred to as “Zero Discharge”. The primary method for meeting the ruling is achieved by using evaporation ponds for end treatment of all wastewater. The Community of Stones-Bengard has a STEP (Septic Tank Effluent Pump) collection system whereby the homeowner has a conventional septic tank for primary treatment, with a screened water pump sending filtered water to the main collection system. The liquid then goes to a Lift Station then pumped to evaporation ponds a mile from the community. In the past year 2,499,910 gallons of water were sent to the ponds for an average of 6,849 gallons per day. Our two acres of lined ponds evaporated all the water. We serve 200 residences plus an RV park. However, the RV Park is no longer out of operation. The Store, Gas Station, and Restaurant have not completely reopened. The Sewer System is regulated by the California Regional Water Quality Control Board Lahontan Region under Board Order No. R6T-2014-0048, WDID No. 6A188812008 Revised Waste Discharge Requirements for Stone-Bengard Community Service District Sewage Treatment Ponds. In September 1984, the California Water Board amended the Water Quality Control Plan for the Lahontan Region (Basin Plan) to incorporate the following waste discharge prohibition: “The discharge of waste from the Spaulding (sic) or Stone-Bengard subdivisions with other than a zero discharge of nutrients to any surface waters or ground waters in the Eagle Lake basin is prohibited after September 14, 1989.” (Basin Plan, chapter 4, Implementation, Unit/Area- Specific Prohibitions for the Eagle Drainage Hydrologic Ares at p. 4.1-4) The Stones-Bengard CSD is fortunate to have a sewer system that is relatively low-cost and meets the requirements of the California Regional Water Quality Control Board. 3.3 Stones-Bengard CSD Finances 3.3.1 Stones-Bengard CSD Budget The Budgets for the Stones-Bengard Fire Department and Sewer System are shown in Appendix E at the end of this report. The Budget for the Fire Department is kept separate from the budget for the sewer system. The Budget for the Fire Department may 11 Balding Energy Enterprise, Martin Balding, General Manager and Operator SBCSD, Correspondence, July 5, 2020. 14 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 vary from year to year depending upon the purchase of additional fire-fighting equipment. If paid fire-fighters were to be required in the future the cost of fire protection would increase substantially. The Fire Department Budget proposed for 2020-2021 is $159,603. The Sewer Department Budget is supposed to be run as an Enterprise Fund, where the fees pay the entire expense of the Department. It appears that the budget depends on carry-over from past years and that the sewer fees should be increased gradually so that the cost of operation will be covered. The Sewer Department Budget proposed for 2020- 2021 is $130,137. 3.3.2 Fees The fee for the Fire Department is $65.00 per parcel some properties are charged higher and lower.12 The sewer fees are $48.00 per quarter or a customer can save $5.00 by paying $187.00 for the year.13 The district is currently in the process of increasing wastewater fees. 3.3.3 Audit The Audit information for the Stones-Bengard CSD can be found in Appendix C at the end of this report. The Audit was performed by a certified public accountant. The Audit explains that the District maintains the sewer service funds as an Enterprise Fund similar to a private business enterprise. The Fire Department is shown as a Government Fund. The Audit also prepared a private memo to the District to recommend procedures to eliminate accounting discrepancies. The Net Position for the Fire Department on June 30, 2019 included $130,044 in undesignated funds and $59,755 in capital assets for $189,799. The Net Position for the Sewer Department on June 30, 2019 included $110,463 in undesignated funds, $529,178 in capital assets and $289,316 reserved for capital improvements for $928,957. The District should continue to use the services of an outside auditor each year as required by the State Law. 12 Balding, Martin, General Manager and Operator, Stones-Bengard CSD, July 5, 2020 13 Stones-Bengard CSD, June 1, 2020. 15 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 4 STONES-BENGARD CSD MUNICIPAL SERVICE REVIEW (MSR) 4.1 Growth and Population Projections for the Stones-Bengard CSD14 Purpose: To evaluate service needs based on existing and anticipated growth patterns and population projections. 4.1.1 Population Projections From 2010 to 2019, Lassen County decreased in population. The Stones-Bengard CSD area is not expected in increase in population. The summer population will continue to remain larger than the year-round population. 4.1.2 MSR Determinations on Growth and Population Projections MSR 1-1) The population of the Stones-Bengard CSD is not expected in increase. MSR 1-2) For a Community Services District formed under section 61000 et seq. of the Government Code, future annexations may include contiguous or non-contiguous territory. MSR 1-3) The district’s wastewater system is designed for increases in connections with the property it currently has. If all of the properties were connected, there would be no additional capacity for annexations. The district is unable to annex more property. . MSR 1-4) The District collects fees equaly among full and part-time residents. 4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Stones-Bengard CSD15 4.2.1 Determination of Stones-Bengard CSD Area Disadvantaged Unincorporated Community (DUC) Status There is no income data available specifically for the Stones-Bengard Community Services District. However, Lassen County as a whole qualifies for DUC status because the Median Household Income is slightly under 80% of the State Median Household Income. 4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Stones-Bengard CSD MSR 2-1) An income survey will be needed to definitely determine as to whether or not Stones-Bengard CSD is a DUC. 4.3 Stones-Bengard 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 14 California Government Code Section 56430. (a) (1) 15 California Government Code Section 56430. (a) (2) 16 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 disadvantaged, unincorporated communities within or contiguous to the sphere of influence.16 4.3.1 Capacity and Infrastructure The fire-fighting equipment, water supply and wastewater treatment system are described above in this report. 4.3.2 MSR Determinations on Capacity and Infrastructure for Stones-Bengard Community Services District MSR 3-1) The Stones-Bengard Community Services District is providing fire protection services with a very limited group of volunteers and a small amount of equipment. MSR 3-2) The District needs to work with other fire protection districts as much as possible to assure good working relationships and coordinated efforts for mutual aid and the District is doing this to the extent possible. MSR 3-3) The Stones-Bengard CSD provides a wastewater treatment system using septic tanks, a collection system and evaporation ponds that meets the requirements of the Regional Water Quality Control Board. MSR 3-5 The Stones Bengard and Spalding CSDs should enter into a shared services agreement or an Auto Aid agreement for EMS and fire prevention and suppression services. Costs incurred by the Spalding CSD for response into the Stones-Bengard CSD should be fully reimbursed by the Stones-Bengard CSD. 4.4 Financial Ability to Provide Services17 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 Stones-Bengard CSD The District is small and has a limited ability to increase taxes and fees. The District should maintain the cooperation with the County of Lassen to maintain the budget and claim payment process. 4.4.2 MSR Determinations on Financing for Stones-Bengard CSD MSR 4-1) The District may have to pay for paid fire fighters in the future. MSR 4-2) The District should continue to explore the possibilities for any grants which could help the District. The district recently obtained a California 16 California Government Code Section 56430. (a) (3) 17 California Government Code Section 56430. (a) (4) 17 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Fire Foundation Grant for brush removal and purchase boots, PPE, and an air tank. The district also secured a Jenny Jones Heroes grant used to purchase new structure turnouts. MSR 4-3) The District should prepare a Capital Improvement Plan to be prepared for future capital expenditures. MSR 4-4) The District is considering raising fees gradually so that large increases will not be needed in the future. 4.5 Status of and Opportunities for Shared Facilities18 Purpose: To evaluate the opportunities for a jurisdiction to share facilities and resources to develop more efficient service delivery systems. 4.5.1 Stones-Bengard CSD Facilities The fire protection facilities for the Stones-Bengard Fire Department are limited due to the small size of the District. The number of volunteers is also limited. The Stones-Bengard wastewater treatment system is not close to any other system. 4.5.2 MSR Determinations on Shared Facilities for Stones-Bengard CSD MSR 5-1) Fire protection services will require extensive cooperation with other agencies if not shared facilities. 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 Stones-Bengard CSD wastewater treatment facilities are not located adjacent to other districts to share additional capacity. 4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies19 Purpose: To consider the advantages and disadvantages of various government structures that could provide public services, to evaluate the management capabilities of the organization and to evaluate the accessibility and levels of public participation associated with the agency’s decision-making and management processes. 4.6.1 Government Structure The Stones Bengard Community Service District (SBCSD) is unique by how the government structure allows for checks and balances. We believe the checks and balances offer more public accessibility and participation. SBCSD has two services: wastewater and fire. The volunteer Fire Chief is responsible for the volunteer fire department. The General Manager is responsible for the paid district employees: secretary, bookkeeper, wastewater operator, wastewater 18 California Government Code Section 56430. (a)(5) 19 California Government Code Section 56430. (a)(6). 18 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 manager, and maintenance. There is a small overlap to the fire department and board with the secretary and maintenance positions. The General Manager and Fire Chief make most decisions and report to the board. It is pertinent that fluid communication exists between the General Manager, Fire Chief and President of the SBCSD board. In lieu of a vacancy with the volunteer Fire Chief position, a fire committee will be appointed to administer operations. The secretary is also the secretary to the board. 4.6.2 MSR Determinations on Local Accountability and Governance for Stones- Bengard Community Services District MSR 6-1) The Stones-Bengard CSD is working on increasing its board of directors to five. Efforts should be made to maintain a five-member board as required by State Law. MSR 6-2) The Stones-Bengard CSD maintains a website and includes information about the Fire Department and the Sewer System on the website. The District website should include the additional financial information required by the State Law. MSR 6-3) Efforts to promote coordination and cooperation with other fire departments and fire protection services in Lassen County and adjacent counties should be maintained. 5 STONES-BENGARD COMMUNITY SERVICES DISTRICT SPHERE OF INFLUENCE UPDATE 5.1 Recommendation for Stones-Bengard Community Services District Sphere of Influence The recommendation for the Stones-Bengard CSD is that the Sphere of Influence be the same as the District Boundary. The Sphere of Influence would have to be amended for an annexation to occur. However, most of the land surrounding the District is government- owned so an annexation is unlikely. 5.2 Present and Planned Land Uses in the Stones-Bengard Community Services District Area, Including Agricultural and Open Space Lands20 5.2.1 County General Plan and Zoning for Stones-Bengard Community Services District SOI Area The Housing Element for the Lassen County General Plan shows that 143 housing units with services could be built in the Stones-Bengard area.21 However, it seems that the demand for housing in this area may not be that great in the near future. 20 California Government Code Section 56425 (e)(1) 21 Lassen County, 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. 19 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 5.2.2 SOI Determinations on present and planned land uses in the Stones- Bengard CSD Area SOI 1-1] There is adequate land zoned for housing in the Stones-Bengard area including zoning for one dwelling unit per acre and four dwelling units per acre. 22 SOI 1-2] The District population may grow if more of the homes are used as permanent or semi-permanent residences rather than as vacation homes. 5.3 Present and Probable Need for Public Facilities and Services in the Stones- Bengard Community Services District Area23 5.3.1 Municipal Service Background The need for fire protection service is present and is not likely to go away because there are numerous homes served by the sewer and water service of the Stones-Bengard CSD. 5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Stones-Bengard Community Services District SOI 2-1] As long as the sewer and water service are provided the need for fire protection will be a part of the Stones-Bengard community. 5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services24 5.4.1 Stones-Bengard Community Services District Capacity Background The Stones-Bengard Fire Department has limited capacity and depends on mutual aid agreements with other districts for medical emergencies. The best way to insure continued fire protection services is to maintain working relationships with other districts in the area. 5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Stones-Bengard Community Services District SOI 3-1] The Stones-Bengard Fire Department is small but maintains mutual aid agreements with other fire departments. SOI 3-2] The Stones-Bengard Fire Department works with other fire protection agencies to maintain training. SOI 3-3) Since the Spalding CSD is responding to calls in the Stones Bengard CSD area the districts should enter into a shared services agreement 22 Lassen County, 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. 23 California Government Code Section 56425 (e)(2) 24 California Government Code Section 56425 (e)(3) 20 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 or an Auto Aid agreement with compensation given to the responding agency. 5.5 Social or Economic Communities of Interest for Stones-Bengard Community Services District 25 5.5.1 Stones-Bengard Community Services District Community Background Stones-Bengard is recognized as a separate community within the Lassen County Housing Element of the General Plan. Domestic water is provided by individual wells. The sewer system and Fire and EMS services are provided by the Community Services District and are important services for both the summer and year-round residents and landowners. 5.5.2 SOI Determinations on Social or Economic Communities of Interest for Stones-Bengard Community Services District SOI 4-1] The Stones-Bengard community is not a full-service community but the residents depend on the sewer and Fire and EMS services to maintain the function and value of the housing in the area. In addition, the fire department provides a focus for community involvement. 5.6 Disadvantaged Unincorporated Community Status26 5.6.1 Disadvantaged Unincorporated Communities The County of Lassen is not disadvantaged because the Median Household Income is slightly higher that nth 80% of the State of California median household income. 5.6.2 Stones-Bengard Community Services District Disadvantaged Unincorporated Community (DUC) Status SOI 5-1] The Stones-Bengard Community Services District provides important services for the residents including sewer and fire protection. 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)(4) 26 California Government Code Section 56425 (e)(5) 21 Lassen LAFCo Stones-Bengard 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 22 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Augmentation Fund (ERAF) and transferred to school districts and community college districts to reduce the amount paid by the State general fund. 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. 23 Lassen LAFCo Stones-Bengard 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: 24 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 1. Evaluate employees annually. 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. 25 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 APPENDIX B STONES-BENGARD CSD BUDGETS Stones-Bengard Community Service District Fire Department Proposed Budget for Fiscal Year 2020-2021 Balance Brought Forward $134,103 Assessments 24,000 Interest 1,500 Total Budget for 2020-2021 $159,603 The income of $24,000 is about $75.00 per parcel.27 The Fire Department Budget for expenditures is shown on the following page. 27 Balding, Martin, General Manager and Operator, Stones-Bengard CSD, July 5, 2020. 26 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 STONES-BENGARD CSD FIRE BUDGET APPROPRIATION Account Account Name Adopted Adopted Proposed Appropriation Appropriation Appropriation 2018-201928 2019-202029 2020-202130 3010 Salaries and Employee Benefits 3000100 Salaries and Wages $4,400.00 4,000.00 4,600.00 3000211 Special Districts Benefits 500.00 500.00 500.00 (payroll tax) Major Object Total 4,900.00 4,500.00 3020 Services and Supplies 3001100 Clothing and personal 2,500.00 2,500.00 2,500.00 3001200 Communications telephone 1,000.00 1,000.00 1,000.00 3001500 Insurance property/liability 10,000.00 10,000.00 10,000.00 3001700 Maintenance-Equip.- 500.00 500.00 500.00 non vehicle 3001701 Maintenance-County 6,000.00 6,000.00 6,000.00 Vehicles, dyed diesel 3001800 Maintenance-Buildings 2,000.00 1,000.00 500.00 and Improvements 3002000 Memberships 200.00 500.00 600.00 3002200 Office Expense 700.00 1,000.00 750.00 3002300 Professional/ Specialized 5,000.00 4,000.00 4,000.00 Services, legal, audit, firenet 3002400 Publications and Legal 100.00 100.00 100.00 Notices 3002700 Small Tools and 1,000.00 500.00 500.00 Instruments 3002800 Special Depart. Expense, 1,000.00 2,000.00 2,000.00 training/education 3002900 Transportation/Travel 500.00 600.00 500.00 meetings 3003000 Utilities, electricity 100.00 50.00 75.00 Major Object Total 30,600.00 29,750.00 Subtotal 34,125.00 3040 Fixed Assets 3006100 Building and 20,000.00 22,000.00 25,000.00 Improvements 3006200 Equipment 78,800.00 90,000.00 92,478.00 Major Object Total 98,800.00 112,000.00 3010000 Appropriation for 5,000.00 8,000.00 8,000.00 contingencies Fund Total $139,300.00 $154,250.00 159,603.00 28 County of Lassen, Fiscal Year 2019, Stones/Bengard Community Services District, Budget and Appropriation, Page 22 of 38. 29 County of Lassen, Fiscal Year 2020, Stones/Bengard Community Services District, Budget and Appropriation, Budget Unit 2160, Page 20 of 34. 30 Stones-Bengard Community Services District, 6/24/2020. 27 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Stones-Bengard CSD Proposed Sewer Budget 2020-2021 Balance Brought Forward for 2021 93,637 Fees 35,000 Interest 1,500 Budget for 2021 $130,137 STONES-BENGARD CSD SEWER BUDGET APPROPRIATION Account Account Name Adopted Proposed Appropriation Appropriation 2019-202031 2020-202132 3010 Salaries and Employee Benefits 3000100 Salaries and Wages 12,000 25,000 3000211 Special Districts Benefits 2,000 2,000 Major Object Total 14,000 3020 Services and Supplies 3001100 Clothing PPE 100 3001200 Communications (telephone) 1,600 1,600 3001500 Insurance (Property and liability) 2,500 2,500 3001800 Maintenance Buildings/Improvements 500 400 3002000 Memberships 1,100 1,100 3002200 Office Expense 1,500 1,400 3002300 Professional Specialized Services, 20,000 20,000 Manager 3002400 Publications and Legal Notices 150 200 3002700 Small Tools and Instruments 100 100 3002800 Special Departmental Expense, 2,200 2,000 training, education 3002898 Sewer Expenditures, repairs, 12,000 12,000 government fees 3002900 Transportation and Travel 1,200 1,000 3003000 Utilities 2,000 2,000 Major Object Total 44,850 Sub Total 71,400 3040 Fixed Assets 3006100 Building and Improvements 39,650 27,737 3006200 Equipment 38,000 26,000 Major Object total 77,650 3010000 Appropriation for Contingencies 5,000 5,000 Fund Total 141,500 130,137 31 County of Lassen, Fiscal Year 2020, Stones/Bengard Community Services District, Budget and Appropriation, Budget Unit 2200, Page 23 of 34. 32 Stones-Bengard CSD, 6-24-2020. 28 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 APPENDIX C STONES-BENGARD CSD AUDIT Stones-Bengard CSD Statement of Net Position and Governmental Fund Balance Sheet June 30, 201933 Governmental Fund Fire Enterprise Fund Sewer General Adjust- Statement Total Fund ments of Net Position Assets Current assets Cash - - - 2,157 2,157 Cash with County 129,644 - 129,644 140,290 269,934 Accounts receivable - - - 2,916 2,916 Interfund 400 - 400 (400) - receivable/payable Total current assets 130,044 - 130,044 144,963 275,007 Investment-FHLMC* - - - 254,816 254,816 Capital assets, at cost - 156,835 156,835 1,269,179 1,426,014 Less accumulated - 97,080 97,080 740,001 837,081 depreciation - 59,755 59,755 529,178 588,933 130,044 59,755 189,799 928,957 1,118,756 Liabilities Customer - - - - - prepayments Fund Balances/Net Assets Fund balances: Unassigned 130,044 (130,044) - Total liabilities and 130,044 fund balance Net Position Net investment in 59,755 59,755 529,178 588,933 capital assets Restricted - - 289,316 289,316 Unrestricted 130,044 130,044 110,463 240,507 Total net position 189,799 189,799 928,957 1,118,756 189,799 189,799 928,957 1,118,756 *FHLMC: “Freddie Mac” Federal Home Loan Mortgage Corporation 33 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 3. 29 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Stones-Bengard CSD Statement of Activities and Changes in Net Position June 30, 201934 Program Net (Expense) Revenue and Revenues Changes in Net Position Primary Government Functions/ Expense Charges Grants and Government Business- Total Programs for Contri- Activities type Primary Services butions Activities Government Governmental 34,898 28,691 10,450 4,243 4,243 activities: Fire Total 34,898 28,691 10,450 4,243 4,243 governmental activities Business-type 75,180 36,439 - - (38,741) (38,741) activities: sewer Total business- 75,180 36,439 - - (38,741) (38,741) type activities Total primary 110,078 65,130 10,450 4,243 (38,741) (34,498) government General revenues: Interest income 2,169 7,131 9,300 Donations/other income 2,683 - 2,683 Capital contributions - - - Total general revenues 4,852 7,131 11,983 Changes in net position 9,095 (31,610) (22,515) Net position-beginning 180,704 960,567 1,141,271 Net position-ending $189,799 $928,957 $1,118,756 34 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 4. 30 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Stones-Bengard CSD Statement of Activities and Changes in Net Position Sewer Department June 30, 201935 Operating revenues: Sewer fees 36,439 Other income - Total operating revenues 36,439 Operating expenses: Salaries and benefits 7,371 Communications 1,456 Insurance 1,991 Maintenance-buildings - Office expense 1,458 Professional and specialized services 16,665 Publications and legal notices 100 Special department expense - Supplies - Transportation and travel 800 Miscellaneous - Community events 1,118 Utilities 1,792 Depreciation 30,890 Memberships 911 Maintenance & repairs 10,628 Total operating expenses 75,180 Operating income (loss) (38,741) Non-operating revenues (expenses) Interest income 7,131 Income (loss) before contributions (Carried forward) (31,610) Income (loss) before contributions (31,610) (brought forward) Capital contributions - Change in net position (31,610) Total net position: Beginning 960,567 Ending $928,957 35 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, pages 5-6. 31 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 STONES-BENGARD CSD STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FIRE DEPARTMENT JUNE 30, 201936 General Fund Adjustments Statement of Net Position Program expenditures/expenses: Public protection 24,287 - 24,287 Administrative 3,662 - 3,662 Capital outlay - - Depreciation - 6,949 6,949 Total program expenditures (expenses) 27,949 6,949 34,898 Program revenues-fire assessment 28,691 - General revenues: Interest income 2,169 - 2,169 Donations 602 - 602 Grants 10,450 - 10,450 Other 2,081 - 2,081 Total general revenues 15,302 - 15,302 Excess of revenues over (expenditures)/change in net position 16,044 (6,949) 15,302 Fund balances: Beginning 114,000 66,704 180,704 Ending $130,044 $59,755 $189,799 36 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 7. 32 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 STONES-BENGARD CSD STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FIRE DEPARTMENT JUNE 30, 201937 Budget Actual Favorable/ (Unfavorable) Variance Revenues: Fire Assessment 25,000 28,691 3,691 Interest income 800 2,169 1,369 Donations - 602 602 Grants - 10,450 10,450 Strike team - 1,233 1,233 Other income - 848 848 Total revenues 25,800 43,993 18,193 Expenditures: Salaries and benefits 4,900 3,662 1,238 Clothing and personal 2,500 - 2,500 Communications 1,000 728 272 Insurance 10,000 6,920 3,080 Maintenance-other equipment 500 112 388 -vehicles 6,000 1,060 4,940 -buildings 2,000 256 1,744 Memberships 200 363 (163) Office expense 700 911 (211) Professional services 5,000 2,013 2,987 Dispatch fee - - - Publications and legal notices 100 64 36 Small tools 1,000 - 1,000 Special departmental expense 1,000 500 500 Transportation 500 400 100 Utilities 100 - 100 Building and improvements 20,000 10,450 9,550 Equipment 78,800 - 78,800 Contingencies 5,000 - 5,000 Strike team expense - 510 (510) 139,300 27,949 111,351 Excess of revenues (expenditures) (113,500) 16,044 129,544 37 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 8. 33 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 STONES-BENGARD CSD STATEMENT OF CASH FLOWS SEWER JUNE 30, 201938 Cash flows from operating activities: Receipts from customers 38,391 Payment to suppliers (36 518) Payment to employees (7,371) Net cash provided to operating activities (5,498) Cash flows from capital and related financing activities: Capital expenditures - Donations - Contribution - Capital Improvement Fund - Cash flows from investing activities: Interest income 7,131 Net increase (decrease) in cash and cash equivalents 1,633 Cash and cash equivalents: Beginning of year 140,814 End of year $142,447 Reconciliation of operating income (loss) to net cash provided to operating activities: Operating income (loss) (38,741) Adjustment to reconcile operating income (loss) to net cash provided to operating activities: Depreciation 30,890 Changes in operating assets and liabilities: Receivables 1,953 Payables 400 33,243 Net cash provided to operating activities ($5,498) 38 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, pages 9-10. 34 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 STONES-BENGARD CSD CASH ANS CASH EQUIVALENTS JUNE 30, 201939 UNRESTRICTED RESTRICTED SEWER Petty cash 20 Checking-petty cash* 2,137 Cash with County-operations 105,790 Cash with County-capital improvements - 34,500 Lassen County –investment with FHLMC** 254,816 $107,947 $289,316 FIRE Cash with County $129,644 *Bank Deposits: At year-end the carrying amount of the District’s deposits was $2,127 and the bank balance was $2,137. All deposits were covered by Federal depository insurance. **FHLMC: Federal Home Loan Mortgage Corporation STONES-BENGARD CSD CHANGES IN CAPITAL ASSETS JUNE 30, 201940 Balance Additions/ Disposals Balance 7-1-18 Transfers 6-30-19 SEWER Fixtures 30,000 - - 30,000 Improvements 1,207,747 - - 1,207,747 Land 14,000 - - 14,000 Equipment 17,432 - - 17,432 $1,269,179 - - $1,269,179 FIRE Equipment $156,835 - - $156,835 39 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 16. 40 Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019, page 16. 35 Lassen LAFCo Stones-Bengard 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 GPM gallons per minute ICS Incident Command System 36 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 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 SB Senate Bill SCADA Supervisory Control and Data Acquisition 37 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 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 38 Lassen LAFCo Stones-Bengard 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. 39 Lassen LAFCo Stones-Bengard 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."41 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.42 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.43 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). 41 California Government Code Section 56046 42 State of California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Integrated%20Regional%20Water% 20Management&PropositionPK=4, May 30, 2018. 43 http://ga.water.usgs.gov/edu/dictionary.html 40 Lassen LAFCo Stones-Bengard 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.44 Potable Water: Water of a quality suitable for drinking.45 pound-force per square inch gauge (Psig): a unit of pressure relative to the surrounding atmosphere.46 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.47 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.48 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. 44 http://ga.water.usgs.gov/edu/dictionary.html#P, November 29, 2011. 45 http://ga.water.usgs.gov/edu/dictionary.html 46 http://www.convertunits.com/info/psig, March 27, 2012 47 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08 48 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08 41 Lassen LAFCo Stones-Bengard 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. 42 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 REFERENCES Balding Energy Enterprise, Martin Balding, General Manager and Operator SBCSD, Correspondence, July 5, 2020. Balding, Martin, General Manager and Operator, Stones-Bengard CSD, July 5, 2020. 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, Fiscal Year 2019, Stones/Bengard Community Services District, Budget and Appropriation, Page 22 of 38. County of Lassen, Fiscal Year 2020, Stones/Bengard Community Services District, Budget and Appropriation, Budget Unit 2160, Page 20 of 34. County of Lassen, Fiscal Year 2020, Stones/Bengard Community Services District, Budget and Appropriation, Budget Unit 2200, Page 23 of 34. 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. State of California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Inte grated%20Regional%20Water%20Management&PropositionPK=4, May 30, 2018. Stones-Bengard CSD, 6-24-2020. Stones-Bengard Community Services District Financial Statements and Independent Auditor’s Report for the year ended June 30, 2019, Robert W. Johnson, CPA, 6234 Birdcage Street, Citrus Heights, CA 95610, 916.723.255, robertwjohnsoncpagroup@gmail.com, November 13, 2019. Stones Bengard Community Services District, Letter from ISO, 4 B Eves Drive, Suite 200, PO Box 961, Marlton NJ 08053-3112 to Mr. Sam Shapiro, Board Chairman, Stones Bengard Community Services District, 509-695 Stones Road , Susanville, CA 96130, May 27, 2013. Stones-Bengard CSD, Sandy Jansen, Secretary, (530-218-6503, Office Phone: 530-835-3350) Response to Lassen LAFCo, February 28, 2019. 43 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 Susanville Interagency Fire Center, June 2019. US Census Bureau, https://www.census.gov/quickfacts/fact/table/lassencountycalifornia,US/PST045219, July 21, 2020. 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 44 Lassen LAFCo Stones-Bengard CSD: Adopted MSR and SOI October 18, 2021 LASSEN LOCAL FORMATION COMMISSION Stone Bengard Community Services District R 11 E dR enotS Eagle Lake Rd Stones Landing kj Eagle Lake Rd dR ettuB langiS Co L v a e k D e r side Dr Buck Point Rd d 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 Spauldingkj ·|}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 S C t o o m ne m B un en ity g a S r e d rvices District Stone Bengard CSD Hallelujah Junction ·|}þ 39 kj 5 S (M e D ct B io & n M al ) Grid P 0 arc 4 e 40 ls 880 1,760 2,640Feet Source: Modoc LAFCo Map Created 2/20/2018 45 N 33 T Roads