Santa Clara Final MSR Maps

FINAL MUNICIPAL SERVICE REVIEW Water Service – Santa Clara Region Prepared for: Local Agency Formation Commission for Los Angeles County 700 North Central Avenue, Suite 350 Glendale, CA 91203 Prepared by: Dudek and Associates, Inc. 605 Third Street Encinitas, CA 92024 November 23, 2005 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region TABLE OF CONTENTS Section 1.0 EXECUTIVE SUMMARY..................................................................................................................1 2.0 AGENCY PROFILES.....................................................................................................................10 3.0 ANALYSIS.....................................................................................................................................12 3.1 Growth and Population.................................................................................................................12 3.1.1 Growth/Population Projections.....................................................................................12 3.2 Infrastructure Needs and Deficiencies........................................................................................15 3.2.1 Water Supply/Demand....................................................................................................16 3.2.2 Water System Infrastructure..........................................................................................21 3.3 Financing Constraints and Opportunities...................................................................................30 3.3.1 Revenues and Expenses Comparison..........................................................................30 3.4 Cost Avoidance Opportunities.....................................................................................................32 3.5 Management Efficiencies..............................................................................................................34 3.6 Shared Facilities............................................................................................................................36 3.7 Rate Restructuring........................................................................................................................38 3.8 Government Structure Options....................................................................................................41 3.9 Local Accountability and Governance........................................................................................42 4.0 DETERMINATIONS.......................................................................................................................45 Castaic Lake Water Agency and Santa Clarita Water Division..................................................45 Newhall County Water District.....................................................................................................47 Waterworks District #36-Val Verde..............................................................................................49 Green Valley County Water District.............................................................................................51 Golden Valley Municipal Water District.......................................................................................53 APPENDIX A...............................................................................................................................................55 Fifth Appellate Court Opinion – Friends of the Santa Clarita River vs. Castaic Lake Water Agency...55 APPENDIX B...............................................................................................................................................56 Memorandum of Understanding – NCWD and CLWA (SCWD)................................................................56 November 23, 2005 – Final TOC-2 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 1.0 EXECUTIVE SUMMARY The Santa Clara Region Water Municipal Service Review (MSR) study area encompasses the northwest portion of Los Angeles County from the Santa Clarita Valley in the south to Kern County in the north. Within this region Los Angeles LAFCO has purview over the spheres of influence for six public water agencies: four within the Santa Clarita Valley, one in Gorman and one in the Angeles National Forest. For the Santa Clarita Valley, Castaic Lake Water Agency (CLWA) is the wholesale provider, delivering State Water Project (SWP) water to four retailers: the Santa Clarita Water Division (a division of CLWA), the Newhall County Water District (NCWD), Los Angeles County Waterworks District #36 (LACWWD), and the Valencia Water Company (VWC). Valencia is a private water company regulated by the PUC and is not under the purview of LAFCO. However, public information on the company that is readily available has been included in the report to provide a more complete understanding of water service in the Valley. The other two districts outside the Santa Clarita Valley, Golden Valley Municipal Water District and Green Valley County Water District, are geographically isolated from other service providers and rely on groundwater as their sole source of supply. Los Angeles County Waterworks District #37 – Acton, was included within the Santa Clara service review region because it is located within the same regional watershed. However, the agency is geographically related to the High Desert service review region and obtains its water supply from the Antelope Valley Groundwater Basin (designated as Basin 4-5 in the State of California’s Groundwater Bulletin 118) and imported surface water from the Antelope Valley-East Kern Water Agency. Therefore, the analysis for that agency has been included in the High Desert Region Water MSR. MSR DETERMINATIONS In approving a Municipal Service Review (MSR), LAFCO must adopt written determinations for the following nine factors specified in LAFCO’s governing statute. Determinations for each agency are located at the end of this report. The following is a summary, by determination, of the entire report for the Santa Clara Water MSR study area: 1. Infrastructure Needs and Deficiencies The primary water purveyors, including CLWA, SCWD, NCWD and VWC, prepared a regional Urban Water Management Plan (UWMP) in 2000 with population projections, water supply and demand for the overall service area. The UMWP indicated that supplies were adequate for future demands. This plan has been used as a guiding document by each of the districts as well as cities, counties, and other planning agencies. November 23, 2005 – Final 1 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region The Friends of the Santa Clara River and the Sierra Club filed a petition for writ of mandate in 2001 challenging the approval of the Urban Water Management Plan (UWMP) prepared by the Castaic Lake Water Agency (CLWA), Newhall County Water District, Santa Clarita Water Company and Valencia Water Company. The Fifth Appellate Court recently decided that the 2000 UWMP was inadequate due to the failure to address issues related to perchlorate contamination of groundwater in the Santa Clarita Valley. Groundwater in the MSR region is pumped from an underground aquifer with two basins – the upper basin, the Alluvial Aquifer, and a lower basin, the Saugus Formation. Perchlorate contamination has been found in the Saugus Formation and concerns have been raised regarding contamination of the upper basin, the Alluvial Aquifer. While the CLWA will have its perchlorate treatment plan completed in 2005 and final clean-up will be completed in 2010, the Court found that the current UWMP did not adequately address the timing of implementation of treatment and did not address the reliability of the water supply before and during treatment. For these reasons, the Court declared the UWMP inadequate. The actual amount of water affected by the perchlorate contamination in both the Saugus Formation and in the Alluvial Aquifer is still in dispute (as are other portions of the UWMP) and the court did not address those issues. A copy of Court's opinion can be found in Appendix A. It is expected that the lawsuits concerning water supply in the Santa Clara MSR region will continue. It is beyond the scope of this report to address all issues, continuing studies and legal challenges regarding water supply and quality in the region. However it should be noted that the inability of the agencies and organizations involved to settle disputes without resorting to the courts involves the use of public funds which could otherwise be used to address remediation of water supply and quality issues. There have been several studies which have shown that water supplies are adequate for expected future growth. The Santa Clarita Valley Water Report, prepared annually at the request of the Los Angeles County Board of Supervisors, provides current information on local groundwater resources, imported water supplies from the SWP, conservation programs and recycled water as well as reviewing water supplies as compared to existing and future demand. Castaic Lake Water Agency, Santa Clarita Water Division, Newhall County Water District, Waterworks District #36 and Valencia Water Company are all signatories to the report's findings. The 2003 Santa Clarita Valley Water Report noted that the water supplies are sufficient to adequately and reliably serve existing and planned increases in demand. In addition, impacts on water supply and demand projected from development of the Newhall Ranch have been addressed through an extended environmental review process. Water supply and demand was addressed in the “Revised Draft Additional Analysis to the Newhall Ranch Specific Plan and Water Reclamation Plant Final Environmental Impact Report”, dated November 2002. This document was November 23, 2005 – Final 2 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region prepared in response to a writ of mandate and judgment by the California Superior Court that ordered Los Angeles County to partially set aside certain project approvals and conduct additional analysis to demonstrate that adequate water sources will be available for build-out of the project, among other issues. According to the document, there is adequate water supply to meet the demand of the Newhall Ranch Specific Plan at build-out. In 2004, the Newhall County Water District commissioned an independent study on the regional water supply. The Water Supply Assessment prepared by Stetson Engineers was formally accepted by the District in December 2004. The report concluded that the projected available water supplies are adequate to meet and exceed future demands for the next twenty years, under all hydrologic conditions considered (normal, single dry and multiple dry years). The report further cautions that meeting water demands during single and multiple dry years, starting in approximately year 2010, and normal years starting in approximately 2020, will require that the proposed additional water supplies be actually available in order to provide sufficient reliability. There is an issue with overlapping service areas and service area gaps in the Santa Clarita Valley. To address retail service area issues, NCWD and CLWA (for SCWD) signed a Memorandum of Understanding (MOU) on September 19, 2005. The MOU, included in Appendix B, includes the revised and additional service areas agreed to by both parties. Service areas and service gaps are discussed in detail in the Santa Clarita Regional Comprehensive Water Study, completed in November 2005 for LAFCO. The Study is incorporated by reference into this MSR. The report includes recommendations on which retail agency should serve specific areas. The Study will allow LAFCO to consider a comprehensive sphere of influence update and annexation strategy. The Study and subsequent SOI updates provide the framework for agencies to plan appropriately for infrastructure and to respond to requests for new service in a timely manner. The following chart depicts the estimated supply/demand for the Santa Clara service review region. November 23, 2005 – Final 3 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year November 23, 2005 – Final 4 )rY/FA( dnameD/ylppuS launnA 440,000 390,000 340,000 290,000 240,000 190,000 140,000 90,000 noitalupoP Santa Clara Region – Supply/Demand Forecast Per Regional 2000 UWMP: Population = 330,000 - 350,000 2020 Supply = 130,000 AF/yr 2020 Demand = 102,500 AF/yr Supply Demand Estimated Population 2. Growth and Population Projections of growth for the Santa Clara Region exceed the county-wide rate. The districts currently serve an estimated population of 210,000 within the region with a projected population of 319,000 by 2020 which represents an increase of 52%. LAFCO and the County of Los Angeles Urban Research Division have developed population projections for all agencies which are critical in ensuring a consistent basis for determining future demand for water service. The methodology used to determine growth and population projections is based on SCAG’s Regional Transportation Plan 2001 with aggregation of data according to Census tracts to provide estimates by agency boundaries. Water agencies also sometimes use adopted land use plans, zoning and approved densities for parcels to determine population projections. Therefore both the aggregate numbers based on census tracts and the agency population estimates, where provided, are included. Generally the numbers are within an acceptable range. However, there are significant differences between the current population of the Newhall County Water District as supplied by the agency and the aggregate population numbers based on census tracts which were used in this report. Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3. Financing Constraints and Opportunities The agencies in the Santa Clarita Valley have policies and rate structures that address funding for capital improvements; infrastructure required to serve new development is funded by the developer. The Golden Valley Municipal Water District has taken effective steps to resolve past financial constraints, ending FY 2003-2004 with a positive cash flow. The District approved a 20% rate increase in February 2004. It has restricted some cash assets specifically for long-term debt. 4 and 5. Cost-Avoidance Opportunities and Opportunities for Shared Facilities Agencies in the service review area have participated in a joint Urban Water Management Plan (UWMP) for the Santa Clarita Valley. A majority of the agencies have in place internal processes and procedures to ensure that agency functions are implemented in a cost-effective manner and facilities are shared wherever practicable. Some agencies have delayed long-range plans until service areas are clarified; this should be significantly resolved with the MOU between NCWD and CLWA (SCWD). 6. Opportunities for Rate Restructuring No significant issues regarding rates were noted. The following chart compares water rates among the agencies. The Green Valley CWD did not respond to requests for information regarding its rate structure. Valencia Water Company is included as information only. The Newhall CWD adopted an incremental tiered rate structure for residential customers that went into effect on January 1, 2005 that includes both winter and summer rates. January 2005 Average Monthly Residential Water Bill Rate Comparison ( ¾” meter) Green Valley CWD Golden Valley MWD VWC SCWD NCWD - Summer Rates NCWD - Winter Rates LAWWD #36 $- $10.00 $20.00 $30.00 $40.00 $50.00 Typical Monthly Charge November 23, 2005 – Final 5 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 7. Government Structure Options Possible changes in boundaries and/or spheres of influence were noted during the service review. They are: • The Newhall County Water District provides service to areas outside its boundaries due to a lack of verification of location for applicants processing service requests to the agency. While this internal problem has been corrected, the District should submit an application for a comprehensive sphere of influence update and approval of out-of-agency service provision pursuant to Government Code Section 56133. • Three separate agencies provide retail water service to overlapping areas—the Newhall CWD, the Santa Clarita Water Division of the CLWA and the Valencia Water Company. While the overlapping service areas date back twenty years, there have been no boundary adjustments or sphere amendments processed through LAFCO. The Santa Clarita Regional Comprehensive Water Study completed in November 2005 for LAFCO details service area issues, including overlapping services areas and service gaps, and should be used as the basis for a comprehensive SOI update and annexation strategy. 8 and 9. Management Efficiencies and Local Accountability and Governance Generally, all of the districts within the MSR Study Area are managed efficiently. CLWA and NCWD have adopted strategic plans which provide a framework for policies and district management. The districts all provide public notice and their meetings are open and accessible to the public. November 23, 2005 – Final 6 Kern County LLAAFFCCOO Santa Clara MSR Area Legend October 25, 2004 Water Cities Golden Vallley MSR Areas ´ Municipal Water District Castaic Lake Water Agency County Waterworks District No. 36 Green Valley County Water District Sphere of Influence, Green Valley CWD GoldeCnO Valley M C u O nicipal Water District Newhall County Water District LANCASTER 0 1 2 4 Miles 1:300,000 CO CO CO Green Valley County CO Water District CO CO PALMDALE CO CO CO CO CO Newhall County Water District County Waterworks District No. 36 Castaic Lake Ventura County Water Agency SANTA CLARITA SANTA CLARITA LOS ANGELES Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region November 23, 2005 – Final 8 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region NOTE In the preceding Executive Summary and the following service review report, the abbreviations NP (Not Provided) and NA (Not Applicable) have been used in some charts and figures. During the service review process all agencies were contacted and all agencies were sent a Request for Information (RFI). In instances where complete data was not supplied in response to the RFI, agencies were called and were faxed or emailed a copy of the profile to complete. The lack of data in these instances does not materially detract from the cumulative conclusions of the report. In instances where NA has been used, the specific information was not applicable to the agency due to size, service area or services provided. November 23, 2005 – Final 9 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 2.0 AGENCY PROFILES The Santa Clara Region MSR study area includes both urban and rural service areas in the northwest portion of Los Angeles County. The six public water agencies providing water service in the region are shown in Table 2.1 – Santa Clara Water Agencies and are summarized below. Valencia Water Company is the fourth, and largest, retail purveyor in the Santa Clarita Valley. It is a private company regulated by the PUC and not subject to the purview of LAFCO. However, it is a significant component of the retail water service structure for the Santa Clarita Valley. Publicly available information on Valencia has been incorporated into this report to more accurately depict water service for the region. Table 2.1 – Santa Clara Water Agencies Los Angeles LAFCO Water District Service Review Agencies November 23, 2005 – Final 10 retaW elbatoP citsemoD liateR retaW elaselohW tnemtaerT retaW retaW delcyceR tnemeganaM retawdnuorG SANTA CLARA REGION Castaic Lake Water Agency ● ● ● Santa Clarita Water Division ● ● Newhall County Water District ● ● Waterworks District #36 – Val Verde ● Green Valley County Water District ● ● ● Golden Valley County Water District ● ● Water treatment consists of filtration and disinfection Castaic Lake Water Agency Castaic Lake Water Agency (CLWA) provides wholesale water service to over 195 square miles in the Santa Clarita Valley north of Los Angeles. The Agency was formed in 1962 for the purpose of contracting with the California Department of Water Resources to provide a supplemental supply of imported water to the water purveyors in the valley (West’s Water Code Appendix §103-1 et seq.; the “CLWA Act”). In 1999 CLWA purchased the Santa Clarita Water Company (SCWC), a private company regulated by the PUC, forming the Santa Clara Water Division. There was opposition to the purchase, including the issue of whether CLWA was authorized to provide retail service under its originating act. To address this, AB 134 was passed in 2001 which granted authority to CLWA to Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region provide retail water service, with some restrictions, within the former service area of SCWC (CLWA Act §15.1 (a)(2)(A)). Santa Clarita Water Division The Santa Clarita Water Division (SCWD) is operated as an enterprise activity by CLWA, with a clear separation between wholesale and retail operations. SCWD’s water supply is sourced from both groundwater and imported water. SCWD has 25,103 service connections; the service area includes portions of the City of Santa Clarita and unincorporated portions of Los Angeles County in the communities of Saugus, Canyon Country and Newhall. Newhall County Water District The Newhall County Water District (NCWD) is a county water district formed under Division 12 of the California Water Code (Sections 30000 et seq.) with authority to provide retail water service within its jurisdictional boundaries. NCWD’s service area covers 34 square miles serving approximately 8,500 active meters in four geographical areas of the Valley: Newhall, Pinetree, Castaic and Tesoro. The boundaries for these areas are not contiguous. Water sources include both groundwater and imported water supplied by CLWA. County Waterworks District #36 – Val Verde Los Angeles County Waterworks District #36 provides retail water service to approximately 12 square miles of unincorporated area in the western portion of the Santa Clarita Valley. Waterworks District #36 serves approximately 1,277 connections. It is a dependent district of the Board of Supervisors and is operated by the Los Angeles County Department of Public Works (LACDPW). The District relies on imported water from CLWA and groundwater through a connection with the Peter J. Pitchess Wayside Honor Rancho. Green Valley County Water District Green Valley County Water District (GVCWD) serves as the retail agency for an unincorporated area of just under one square mile. It is surrounded by the Angeles National Forest and geographically isolated from other agencies. It currently provides service to 463 connections; the District is limited by ordinance to a maximum of 500 water service meter connections. Water supply is strictly from groundwater wells, all of which are located inside the boundaries of the district. Golden Valley Municipal Water District Golden Valley Municipal Water District serves an area of 12.5 square miles in the Gorman area of the Tejon Pass. Due to a change in county boundaries several years ago, a portion of the District is now in Kern County. However, a majority of the District’s service area is in Los Angeles County, and Los Angeles County LAFCO is the principal LAFCO. The District provides water service to 24 meter November 23, 2005 – Final 11 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region connections in addition to sewer service. Water supply is from groundwater wells. The District was formed in 1971 at the request of a land developer planning a major land development project in the area. Formation of the district offered tax exempt financing for facilities necessary for development. In addition, the District became a member of the Antelope Valley –East Kern Water Agency, a State Water Project Contractor. This would provide a reliable source of water to the new development. The planned development did not occur. The District is the sole public provider of water services in the Gorman area. November 23, 2005 – Final 12 W61R W51R 5 T6N TT66NN T5N TT55NN D R S E H G U R18 W 1R 7 W L A K E H O N R D SIERRA HWY Y RANCHO TEMASCAL RR1166 WW RR1155 WW U E T C A N Y O N R D G U A D U L C E C A N Q A U O B T5N TT55NN T4N HENRY MAYO DR TH E O LD R D S E C O C A N Y O N R D SI E R R A H W Y TT44NN M S C A B N E D RANCHO SAN FRANCISCO A N P K W Y SANTA CLARITA C A N Y O N R D LYONS AVSAN FERNANDO RD TT TT 44 33 NN NN WW WW WW 5511RR WW 4411RR RR 4411 RR 3311 Castaic Lake Water Agency Legend Roads, Thomas Bros. Castaic Lake Water Agency LLAAFFCCOO 1:215,000 (SOI same as district boundary) Miles June 17, 2003 0 1.25 2.5 5 Castaic Lake Water Agency Agency Information Service Area Information Address: 27234 Bouquet Canyon Road Service Area 195 sq mil Santa Clarita, California 91350-2173 Population Served: 190,699 Contact: Valerie L. Pryor, Admin. Svcs. Mgr Projected Population: Phone: (661) 297-1600 2010 265,700 Email/Website: vpryor@clwa.org 2015 303,200 www.clwa.org 2020 340,000 Type: Wholesale Water System Information No. of Employees: 48 No. of Connections per Employee --- Average Daily Demand (MGD) 38 MGD Maximum Day Demand (MGD) 67 MGD No. of filed Complaints in past 12 Months 0 Miles of Pipe: 21.3 miles No. of Pump Stations: 3 No. of Pressure Zones: 1 Storage Capacity 40 MG Financial Information (FY 2002-2003) (in thousands) Revenues: $81,563 Expenses: $44,449 Reserves: $188,998 CIP: $22,307 Wholesale Rates Treated $181 / AF Connections to Within Outside Outside Retailers Boundary Boundary/Within Sphere Total Sphere Valencia Water Co. 6 + 1 reclaimed 0 0 7 NCWD 4 0 0 4 LACWWD #36 1 0 0 2 SCWD 6 0 0 6 Total 19 0 0 19 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 42,475 62,000 62,000 62,000 62,000 Groundwater 0 0 0 0 0 Surface 0 0 0 0 0 Recycled 1,000 5,000 9,000 14,000 17,000 Total 43,475 67,000 71,000 76,000 79,000 Average Annual Demand Information (AF/Yr)* Existing 2005 2010 2015 2020 Potable 44,000 35,700 44,100 54,700 67,100 Recycled 1,000 5,000 9,000 14,000 17,000 Total 45,000 40,700 53,100 68,700 84,100 Note: Santa Clarita Valley is currently in dry year conditions, so there is increased demand for SWP water. As normal weather conditions return, purveyors will return to using more groundwater and SWP demand is expected to decrease (2005). Imported supply is shown at current entitlement levels; CLWA is pursuing the purchase of additional SWP entitlements as well as conjunctive use projects. Shortage of potable supply in 2020 will be met through current water banking efforts and water transfers. November 23, 2005 – Final 14 Santa Clarita Water Division of CLWA Agency Information Service Area Information Address: 22722 W. Soledad Canyon Road Service Area 50 sq miles Santa Clarita, CA 91350 Population Served: 66,900 Contact: William Manetta, Retail Manager Projected Population: Phone: (661) 259-2737 2010 83,100 Email/Website: wmanetta@scwater.org 2015 94,100 www.scwater.org 2020 105,100 Type: Retail Water System Information No. of Employees: 42 No. of Connections per Employee 625 Average Daily Demand (MGD) 12.55 MGD Maximum Day Demand (MGD) 24.93 MGD No. of filed Complaints in past 12 Months 75 Miles of Pipe: 265 miles No. of Pump Stations: 20 No. of Pressure Zones: 12 Storage Capacity 67 MG Financial Information (FY 2002-2003) (in thousands) Revenues: $12,887 Expenses: $14,344 Reserves: $7,256 CIP: $774 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $10.24 Water Charge: $17.43 Monthly Bill: $27.67 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 22,645 0 0 22,645 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 2,458 0 0 2,458 Total 25,103 0 0 25,103 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 18,916 18,900 20,000 23,600 27,000 Groundwater* 9,513 9,500 10,000 10,000 10,000 Surface 0 0 0 0 0 Recycled 0 0 0 0 0 Total 28,429 28,400 30,000 33,600 37,000 * Groundwater Basin: Alluvial Basin and Saugus Formation Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 18,252 19,546 21,635 24,527 27,400 Comm/Ind. 4,246 4,566 5,053 5,662 6,270 Landscape/Irr 0 0 0 0 0 Other** 2,060 2,640 2,721 2,821 2,930 Total 24,558 26,752 29,408 33,009 36,600 ** Public Authority, Other Utilities and Construction November 23, 2005 – Final 15 PALMDALE LAKE HUGHES RD SIERRA HWY CO BOUQUET CANYON RD NO R D O AC NY HENRY MAYO DR THE OLD RD ES C 5 VALENCIA BLVD SANTA CLARITA S S O IE L R E R D A A HW D Y CANYON RD 14 SAND CANYON RD MCBEAN PKWY V C e o n u t n u t r y a LYONS AV SAN FERNANDO RD SANTA CLARITA LOS ANGELES Newhall County Water District Legend Roads, Thomas Bros. Newhall CWD LLAAFFCCOO 1:125,000 SOI, same as district boundary Miles October 1, 2003 0 1.5 3 6 Newhall County Water District Agency Information Service Area Information Address: 23780 North Pine Street Service Area 34 sq mil PO Box 220970 Population Served: 25,304 Santa Clarita, California 91322-0970 Projected Population: Contact: Karin Russell, Dir. of Finance/Admin 2010 46,000 Phone: (661) 259-3610 2015 55,000 Email/Website: krussell@ncwd.org 2020 63,000 www.ncwd.org Type: Retail Water System Information No. of Employees: 31 No. of Connections per Employee 272.5 Average Daily Demand (MGD) 8.5 MGD Maximum Day Demand (MGD) 25.4 MGD No. of filed Complaints in past 12 Months 514 Miles of Pipe: 146 No. of Pump Stations: 14 No. of Pressure Zones: 20 Storage Capacity 24.0 MG Financial Information (FY 2002-2003) (in thousands) Revenues: $6,759 Expenses: $6,563 Reserves: $5,099 CIP: $7,443* * Projected 2003-2004 Expenditures Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $13.15 Water Charge: $29.74 Monthly Bill: $42.89 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 8,449 0 0 8,449 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 8,449 0 0 8,449 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 5,986 9,700 14,500 15,500 19,000 Groundwater* 4,376 4,800 7,000 7,500 9,000 Surface 0 0 0 0 0 Recycled 0 0 0 0 0 Total 10,362 14,500 21,500 23,000 28,000 * Groundwater Basin: Alluvial Basin and Saugus Formation Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 7,059 9,800 14,200 15,200 18,800 Comm/Ind. 1,106 1,600 2,300 2,500 3,000 Landscape/Irr 1,362 1,900 2,700 2,900 3,500 Other** 0 0 0 0 0 Total 9,527 13,300 19,200 20,600 25,300 November 23, 2005 – Final 17 FRW Y RD HKA IL O LCT THE GOLDEN RIDGE TOP HI NL GHLAND SIE CTRRA BLACK OAK LN OAK O TR LD DR STATE RIDGE GIMO L UR RD ROMERO CANYON RD (CM LSOAN S (C L M OAN D OAK C V V 2 A A A 87 N L L V 0 L Y 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R N O D LD YON DR 00803 STATE RF YW R IV RANCHO TEMASCAL 15 14 13 16 21 22 23 24 20 29 28 27 26 25 29 5 30 29 28 27 26 25 31 CO 32 32 33 34 35 36 5 8 VAPLDIT S O A OR B N TO D N M E V ST ER L D A W A R L R E 8 D O T A OV I 5 P 1 N D I E N 7 Z EP 3 S W 0 DL T L 3 A A O 0 T L 0 E M E RM 02090 A A M N TWY 30900 S HIL A LS T P N A A R R AD L I R S D I V E N E G S R T BO T D RT O O E N N KNEIN R NOTSG D ELV CA IR N M Y A O A N 4 RTINE RD 3 Z M 9 0 T 5 W S 0 1 Y 0 T VNEE IN IS D G E A 6 MH E DR UC U LID AV RS E 3 T L 0 A T F L P 4 M I R I L G S 0 R E J O D U U D P 0 S R E A T L S L A R 3 M L W T E W O I K R 0 S E K A 3 D I R N 0 A PARKER S V T S E R D 0 W E L I D N K E CH E E 3 D S N X T W 0 B E W O R NI R2 O I T O A N 0 A D A V A D0 T A V L G P E L A V R T R V O V D M 3 S N E H A E 0 S RDI R N 1 AN D H E 0 A IRAR P C R 0 A A O D N R C R O R R R N S A E D V 91 D 2 00 RD D M O P 3 V S N O A 0 E R U N 1 R K IN A I T W 0 G S S C I 0 D H O K E E O L CO D TTAGE H ST S R G V OR U A VE I O N DR P T E L M N AW E O R R R E D O S N R N C C T E NAC T ONY O M A R N O B S R A T H V M A E V U EG C A A A D V A C A C D I MK I Y H D H N S N R IQ A R A U W 3 3 A E B O K A T W I V T Y 0 V O 0 L O A N M F N I 0 O Y N 0 A S S 0 W A 0 S R N T 0 285 N 0 0 E 0 R C D C OO A D A R LI N D Y V O G A L N R E WW R S I O MN CK Y NI 2 Y T LE 980 C Y 0 2980 C O 0 Y T H T T O O A E CT A N T M V V O M A Y F A T A LIN C L N TA C E O S O Y ST L D D N S C N N L 2 T D I R R S OS S C R I O OT T V T R WA E N V CE O H ER J L 2 H AN I I A A N W E U V 9 VA T C C C T GNDRI HA O N 8 D R K I R S A L L T V SK R S N S A 0 W O O SE T L Y I T E S G 0 V L O AV O M S O A A V R N OO L C S T NS E WK W V N R E L C E T E S N K T T R M A F L B T S R E I L I L U 2 E C W O L T C K SUW A ALE L R 3 A L E W L V L S N 7 R O D E K N K Q W OE D T AK 0 1 U N T B 0 O U H V SI O ELAKW TC I S A T E M P DOUGLAS I C W P R O W BB S L ELTSONE S E U K O S N W RNEY AEK WK T N S W K L O E A S W CA V N K T Y N R O I E N M DR P N L O C M A W E A K M O J 3 C A A 0 V C CT L N 1 M R 00 E A S E ( S E S GT C R E K W K L S M A G L S AVLLE O T L D ) CO I T U E S 2 TN N I 1 YR A W 3 B L C W D K O D K E M S I R B 1 A W T O A V R T J W D K L R V S E O R B O 5 P L L I N K I E A H D L O A W D V S LN K R R S I D SA H A U W NT OM V S K ID NS T S O O A 1 W S BAS C ET N VK K 0 GA 2 A LOLPING 9 V 40 D C 0 T R TORTTRES MA NL PD LRIDPL R SA D M N ADRID RE P M L OPL PL CT C RD APRI H AVEN 2 A U 8 E S 90 L 0 E L P I E Y V NN IN RAN G CH A S VE O N U S T E A O NVIEY N AR W D F IL R N LIA A W M N S C I IS T C L H O C U E 1 P A I R N 1 N S E STAR Y P CAN O Y O O S N N A O T VEN N UE P SH L ERMA T N T LI 2 V 4 E 5 RP N N OTCO G L E C U 2 L N E 8 E A N V 5 A D 0 M S O 0 W G P IL C A C I I E B N T N P R I E R L A D P B O D U O K J R U K RKAP S E W ST N A A T V Y E L R A T Y CLO A A VE L R R DCAIL I T L P Y O R C O PL T S N E L S CT N EB P RK D S P S B HI L R R O R E R L C A A M I N ELB NT T U V H X S R E Y AC G T R P A B E L T E O L A ERC M M H MO V N A S C C H Y N A R R C E A P E O N R F L W T T T L R E D T FLALS R Y E E M I BR W CA ID S A IP A CF S F G P O R E RD L O E D R AL P E R D A L N D PL C D N D R A H K R S B P P H A L L MREE R K I S N W I L P R D YB Y O E P K S N N F W Y W O L T A K WAF L O N RC U R O N R D E Y F W D C D R C O T S W A I R G A IL B U M TT D A A R Y N P N S W GA M V L R Y C O L B H S R V E P I E T O K B H T A L D E O S C O L N E B D O R G L R A N O P C C D T T O D R C I N E S S L P N D W P A W R K G T A L A C L K D C G N A L A E A N E K O F R N E M G R E Y N S O D I V H D T E I R Y B E T OE B L E G A D C B R L D O N GIH-H K I HI N T E C N M D R Z G M E P ST E CHEAB E W R T O I L G 2 NSAPLI D R U N A A O F E 9 YC E N O C W V 8 C K L CT N S E G R P 0 1 S K O S E D 2 E T P 0 L P TR E 7 P R P R L T L D D 8 YCN P L IUQS O 02920 0 C E R E T 0 A A E D N R S D R D LV O E DR U E OD WG O NE R T RA D S O D ON A R R S CI L P V MY R T L OL E H E B D O T I C R D W T N R U C D T C I E H DY D E C A T S OBL G N R DAI L T K T E N F P T A E S L S H N O R C O R R O L L K P S M A S A P T LP I B R TL I L N Y L OM O V N ON R 2 L C I D G D W T D L 7 OD D H GI MRA E B 7 T E 0 L PLYMOU S C T A D 2 H 0 CS D A E N 9 S C R T H R I G R E E R H A C 9 L A W S M D T SAE R C L D V B 0 I P T C A K Y O A R OO Y L 0 P A F T P L I R J I R E R N N F V W S E A O L E Y L C CVA P A O IN N M Y O E T CO H EN E T I S H C N O T E O 2 R 9 R G 6 D A D CT E K PL 00 T 29 H DA 5 IS 0 Y 0 E T S S AGU N AOR H OG LDE R N AN Y COC T K HE MIDDL M E P T A K L W O N Y Y N O T H HO E O R N L L N D N R U T D O P U Y MP N RD 270 18 SAN MAR 2 T 9 I 1 N 0 E 0 Z PENA GRANDE 17 CYN RD 28500 28500 S 1 A 7 N 16 28500 OTI QU CHI 15 PKWY MAYO DR R 1 R27500 1COMMERCE CENTER DR MARTINEZ 28100 CANYON WOLCOTT WY FRANKL H IN ENRY 28000 UP RANCH GRAN 27800 RD DR 28500 Los Angeles County Waterworks District #36, Val Verde Legend Roads, Thomas Bros. 1:34,000 Val Verde County Waterworks District # 37 (SOI same as district boundary) Miles LLAAFFCCOO August 29, 2003 0 0.25 0.5 1 Los Angeles County Waterworks District #36 – Val Verde Agency Information Service Area Information Address: 1000 South Fremont Avenue, Service Area 11.7 sq mil Suite A-9E Population Served: 3,742 Alhambra, California 91802 Projected Population: Contact: Greg Even 2010 NP Phone: (626) 300-3331 2015 NP Email/Website: geven@ladpw.org 2020 NP www.ladpw.org/services/water Type: Retail Water System Information No. of Employees: 2 No. of Connections per Employee 638 Average Daily Demand (MGD) 1.04 Maximum Day Demand (MGD) 2.08 No. of filed Complaints in past 12 Months 39 Miles of Pipe: 32 No. of Pump Stations: 2 No. of Pressure Zones: 3 Storage Capacity 2.8 MG Financial Information (FY 2002-2003) (in thousands) Revenues: $681.6 Expenses: $664.4 Reserves: $17.8 CIP: $277 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $10.94 Water Charge: $28.50 Monthly Bill: $39.44 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 1,277 0 0 1,277 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 1,277 0 0 1,277 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 1,164* NP NP NP NP Groundwater NA NA NA NA NA Surface NA NA NA NA NA Recycled NA NA NA NA NA Total 1,164 NP NP NP NP *Per LACWWD for 2003 Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 965* NP NP NP NP Comm/Ind. 0 NP NP NP NP Landscape/Irr 13 NP NP NP NP Other** 32 NP NP NP NP Total 1,010 NP NP NP NP * Per LACWWD for 2003, annualized NP – data not provided by agency; NA – not applicable November 23, 2005 – Final 19 Angeles National Forest 11 12 ***** CLAVEL C IT A O SITAS C R H O EV S A A L LITO SA M N O N F TA R N A A P N L C A I N S A Q M A U * N * I Z T * A * O N * IT C A ANYO R N O ***** SALITO 7 C LL H A IQ N U O ITO LOMITA ***** S IE M E R IO DAG G E B TT ERR P O AST P E A L R FU A E D N O TE C C A L S O L C I M F AD F A P A E AS D T G UR E A BA RA N C OCA S P P IT U A N N K H Y E A C R R A M R N O O Y S Y O A O N C A R O N A C A S C R A R N O ENSENADA O VE R DE P O R TA L OL S O I N V RI S E O RA E M S S E A N C L I A E L ZA SAN LU J I O S P R B P O O O A T Z S N O Q S D U I O E NA V H R ID E A L A G R O N S D J A O D EL JARDIN 14 13 U R T A B O 18 S S O N IT W W A 5 4 1 1 R R Green Valley County Water District Legend Roads, Thomas Bros. Green Valley County Water District LLAAFFCCOO Sphere of Influence, Green Valley CWD 1:13,000 Miles June 18, 2003 0 0.1 0.2 0.4 Green Valley County Water District Agency Information Service Area Information Address: 39520 Calle Cascada Service Area 0.73 sq mil Green Valley, California 91390 Population Served: 1,032 Contact: Laura Vernetti, Secty/Treasurer Projected Population: Phone: (661) 270-0836 2010 No growth Email/Website: gvcwd@qnet.com 2015 projected Type: Retail Water 2020 System Information No. of Employees: NP No. of Connections per Employee NP Average Daily Demand (MGD) NP Maximum Day Demand (MGD) 0.14 MGD No. of filed Complaints in past 12 Months NP Miles of Pipe: NP No. of Pump Stations: 2 No. of Pressure Zones: NP Storage Capacity NP Financial Information (FY 2002-2003) (in thousands) Revenues: $277 Expenses: $277 Reserves: $350 CIP: $20 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $NP Water Charge: $NP Monthly Bill: $NP Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 463 0 0 463 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 463 0 0 463 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 0 0 0 0 0 Groundwater* 113 NP NP NP NP Surface 0 0 0 0 0 Recycled 0 0 0 0 0 Total 113 NP NP NP NP * Groundwater Basin: Not Provided Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 113 The District’s Water Ordinance states that the District is limited to a total Comm/Ind. 0 of 500 water meter service connections so demand is not expected to Landscape/Irr 0 increase. Other** 0 Total 113 NP – data not provided by agency November 23, 2005 – Final 21 31 3251004002 3251004001 33 22 66 55 11 E D IS O ***** PEACE VALLEY RD ***** ***** ***** ***** N T E S O N M T N R D 44 EDISON TESON MTN RD ***** 1100 1111 ***** G O R M A N S C H O O L R D GOR 5 M 1122 AN POST RD PE AC E VA LLEY R 77 CO 88 ***** 99 *** E * D * ISON TESON MT 1111 N 0000 RD 11111111 D GOLD HIL 11 L 55 RD 11114444 11113333 * ** ** 11118888 ***** GOLDEN STATE FRWY 11117777 11116666 11115555 ***** ***** ***** ***** LANCASTER RD LANCASTER RD 22222222 22223333 22224444 11119999 22220000 22221111 ***** ***** Legend Golden Valley Municipal Water District Roads, Thomas Bros. County Boundary Golden Vallley MWD LLAAFFCCOO (SOI same as district boundary) 1:30,000 Miles Township / Range 0 0.375 0.75 1.5 March 4, 2004 Golden Valley Municipal Water District Agency Information Service Area Information Address: 49744 Gorman Post Road Service Area 12.5 sq mil Gorman, California 93243 Population Served: NP Contact: Urban J. Schreiner, Counsel Projected Population: Phone: (949) 223-1170 2010 190* Email/Website: uschreiner@awattorneys.com 2015 249* No district website 2020 348* Type: Retail Water System Information No. of Employees: 0 No. of Connections per Employee 0 Average Daily Demand (MGD) 0.04 Maximum Day Demand (MGD) 0.08 No. of filed Complaints in past 12 Months 0 Miles of Pipe: 2 No. of Pump Stations: 0 No. of Pressure Zones: 1 Storage Capacity 0.4 mgd Financial Information (FY 2002-2003) (in thousands) Revenues: $91 Expenses: $83 Reserves: $6 CIP: $276 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $30.00 Water Charge: Included Monthly Bill: $30.00 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 24 0 0 24 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 24 0 0 24 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 0 0 0 0 0 Groundwater** 100 105 110 115 120 Surface 0 0 0 0 0 Recycled 0 0 0 0 0 Total 100 105 110 115 120 * Groundwater Basin: Not Provided Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 5 5 5 5 5 Comm/Ind. 95 100 105 110 115 Landscape/Irr 0 0 0 0 0 Other** 0 0 0 0 0 Total 100 105 110 115 120 * Growth projections based on SCAG Regional Transportation Plan 2001 forecasts supplied by LAFCO and URD. Agency did not supply population projections NP – data not provided by agency November 23, 2005 – Final 23 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.0 ANALYSIS 3.1 GROWTH AND POPULATION 3.1.1 Growth/Population Projections The Santa Clarita Valley is a high growth area within Los Angeles County, with several large developments planned for implementation in the next 20 years, including Newhall Ranch. Los Angeles County experienced a 12% population increase from 1990 to 2000, with the Southern California Association of Governments (SCAG) projecting an overall 19% increase through 2020. The Santa Clarita Valley is expected to increase by 51% within that period. The growth projections shown below in Table 3-1 Growth and Population Projections are derived from two sources: data submitted by the districts and data based on SCAG forecasts. There are some discrepancies between the two forecasts. The SCAG figures are based on SCAG Regional Transportation Plan 2001 growth forecasts. To establish district- level projections, the population in 2000 was estimated based on geographic analysis conducted by the County of Los Angeles Urban Research Division (URD) and represents the sum of population in each Census block within the district's boundaries. The projected population is based on SCAG's growth forecasts for each Census tract and represents the SCAG projection of growth in the Census tracts within the District's boundaries. Appropriate adjustment was made for Census tracts that are partially within the district's boundaries. However, some of the discrepancies may be due to the overlapping service areas within the Valley. The service areas of the two districts outside the Santa Clarita Valley, Green Valley and Golden Valley, are projected to grow as well. However, the increased demand may be served by private wells or mutuals rather than the two districts. Typically population projections are provided by regional agencies for cities only. Los Angeles LAFCO is one of the few LAFCOs in California to provide population and growth projections for all agencies including special districts. This may help smaller special districts to coordinate the demand for future water service with other agencies. November 23, 2005 – Final 12 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Table 3-1: Growth and Population Projections Agency Data 2000 2005 2010 2015 2020 Annual Source Population Population Population Population Population Growth Estimates* Estimates* Estimates* Estimates* Estimates* Rate Wholesale Castaic Agency 190,700 228,200 265,700 303,200 340,000 3.9% Lake SCAG 208,644 216,754 246,185 274,501 315,130 2.6% Water Agency Retail Santa Agency 66,900 72,100 83,100 94,100 105,100 2.8% Clarita SCAG Not available Water Div. Newhall Agency 25,304 30,450 46,000 55,000 63,000 7.4% County SCAG 40,755 42,900 49,549 56,891 66,572 3.2% WD LACWWD Agency NP NP NP NP NP #36 SCAG 3,832 4,432 5,722 6,711 8,054 5.5% Green Agency 1,032 NP NP NP NP Valley SCAG 1,239 1,418 2,053 2,676 3,618 9.6% CWD Golden Agency 110 142 190 249 348 10.8% Valley SCAG 110 142 190 249 348 10.8% MWD (*) Data sources include data reported in the LAFCO Request for Information, Parts I, II and III. Additional information was obtained from Urban Water Management Plan provided for Castaic Lake Water Agency, Santa Clarita Water Division and Newhall CWD. NP – data not provided by agency Castaic Lake Water Agency The population within Castaic Lake Water Agency’s boundaries was estimated at 190,700 per the 2000 Census. Growth is projected to continue at a steady rate with the development of Newhall Ranch and other tracts that are nearing implementation. SCAG is projecting a 2.6% annual growth rate for CLWA’s service area. Santa Clarita Water Division The Santa Clarita Water Division serves a population of 66,900 per the agency. SCAG did not project population for this service area as it is a division of CLWA. However, SCWD projects an annual growth rate of 2.8% which is in keeping with SCAG’s projection for CLWA. SCWD provides service to areas that are within Newhall County Water District’s service area, which may skew the projections somewhat for each agency. Newhall County Water District Newhall County Water District serves a population of 25,304 per the District’s calculations in accordance with Title 22 of the California Code of Regulations. The District serves four distinct service areas: November 23, 2005 – Final 13 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Castaic, Newhall, Pinetree, and Tesoro, a new master plan development. The District used county and municipal plans effective in 1993 to generate population projections specific to their service area, responding in 2003 that they expect population to reach 63,000 by 2020. This is an annual growth rate of 7.4%, while SCAG projects 3.2%. The discrepancy is in the 2000 estimates; the two projections are fairly close for 2020. County Waterworks District #36 – Val Verde Population information specific to Waterworks District #36 was not provided. However, the District is included within the population projections for Castaic Lake Water Agency. SCAG is projecting a 5.5% annual growth rate for the District’s service area. Green Valley County Water District Green Valley County Water District serves a population of approximately 1,032 on 1,800 small residential lots. Significant population growth is not projected as the service area is surrounded by the Angeles National Forest. In contrast, SCAG is projecting an annual growth rate of 9.6%. Because the District is limited in the number of service connections it may have, this growth likely indicates an increase of private wells rather than service demands on the District. However, groundwater levels are an ongoing concern. Golden Valley Municipal Water District Golden Valley Municipal Water District currently provides service to 24 water connections. SCAG is projecting a 10.8% annual increase in population, to 348 people in 2020. This increase may indicate more private wells rather than service demands on the District. November 23, 2005 – Final 14 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year November 23, 2005 – Final 15 )rY/FA( dnameD/ylppuS launnA 440,000 390,000 340,000 290,000 240,000 190,000 140,000 90,000 noitalupoP 3.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES The evaluation of infrastructure needs and deficiencies includes an analysis of both water supply and water system capacity. The following figure, Figure 3.1 Supply/Demand Forecast - Based on Population Projections, shows the estimated supply and demand based on data reported by the water agencies in the Santa Clara MSR study area as well as SCAG population projections. The questionnaire submitted to the agencies by LA LAFCO did not request projections for supply and demand; therefore the data has been obtained from the following sources: 2000 Urban Water Management Plan prepared for CLWA, NCWD, SCWD and Valencia Water Company; the 2002 Santa Clarita Valley Water Report; master plans; and follow up communications with agency staff. It is recommended that the agency profiles in Section 2.0 be updated when the regional 2005 UWMP is adopted in order to maintain accurate agency projections on future supply and demand. Figure 3.1 – Santa Clara Region Supply/Demand Forecast Based on Population Projections Per Regional 2000 UWMP: Population = 330,000 - 350,000 2020 Supply = 130,000 AF/yr 2020 Demand = 102,500 AF/yr Supply Demand Estimated Population Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.2.1 Water Supply/Demand The primary water sources of the Santa Clara MSR study area include imported and groundwater with a small increment of recycled water. The agencies within the Santa Clarita Valley all obtain water supply from the same sources. The 2002 Santa Clarita Valley Water Report was prepared at the request of the Los Angeles County Board of Supervisors as an update to the regional 2000 UWMP. This report provides updated information on local groundwater resources, imported water supplies from the SWP, conservation programs and recycled water. The report also reviews water supplies in the context of existing water demand as well as an overall outlook of water supply for the following year. Castaic Lake Water Agency, Santa Clarita Water Division, Newhall County Water District, Waterworks District #36 and Valencia Water Company are all signatories to the report's findings. Per the report dated April 17, 2003 water supplies are sufficient to adequately and reliably serve existing and planned near term increases in demand. In December 2004 NCWD formally accepted the Water Supply Assessment prepared by Stetson Engineers on behalf of the District; the report concludes that the projected available water supplies are adequate to meet and exceed future demands for the next twenty years, under all hydrologic conditions considered (normal, single dry and multiple dry years). The report cautions that meeting water demands during single and multiple dry years (starting in approximately year 2010), and normal years (starting in approximately 2020), will require that the proposed additional water supplies be actually available in order to provide sufficient reliability. State Water Project Supply CLWA is the State Water Project contractor responsible for delivering imported water to the Santa Clarita Valley. The Agency’s annual contract amount is 95,200 AF per year. The Department of Water Resources State Water Project Delivery Reliability Report (May 2003) indicates that 76% of this amount is available on a long term average annual basis. The full contract amount includes 41,000 AF of supply provided through a water transfer; this is available on an interim basis pending final environmental reviews. Deliveries for 2003 were 44,419 AF. SWP reliability issues have been considered in the UWMP; the UWMP states, “If projected imported and local supplies are developed as indicated, no shortages are anticipated within the Agency’s service area for the dry-year scenarios analyzed.”1 CLWA has planned for the potential variance in supply volume and capitalizes on opportunities that will maximize the SWP resource. Future plans include options to purchase additional SWP water supply if needed. CLWA also engages in water transfers and water banking/conjunctive use in dry years to ensure reliability of supply. In 2002-2003, the Agency banked 1 CLWA, NCWD, SCWC, VWC. 2000 Urban Water Management Plan. Page 4-3 November 23, 2005 – Final 16 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 24,000 AF of excess 2002 SWP water. This proactive approach is providing significant benefit to the residents of the Santa Clarita Valley through a more stable future water supply. CLWA maintains a parcel database for long range planning. Since 1987 CLWA has used the assessor’s use code as a means of identifying potential water demand should the property be developed based on current land use zoning. CLWA does not attempt to anticipate future land use decisions by planning authorities. Instead CLWA has planned for an adequate water supply to meet demand at build-out based on current land use zoning, but does not reserve capacity for any particular area. Groundwater Supply Groundwater is pumped from a two-aquifer system, the Alluvial Basin (shallow) and Saugus Formation (deeper), which occupy an area of 84 square miles in the center of the valley. The historic annual production of the Alluvial Basin is estimated between 30-40,000 AF per year and for the Saugus Formation 7,500-15,000 AF per year. Recharge for the Alluvial Basin occurs primarily from the percolation of stream flow in the Santa Clara River and its tributaries. Recharge for the Saugus Formation occurs through precipitation on exposed outcrops and direct infiltration from the Santa Clara River channel. Groundwater quality is a concern; total dissolved solids (TDS) and perchlorate are the primary contaminants. In 2002, two wells within SCWD’s service area exceeded the state and federal drinking water quality maximum contaminant levels for nitrate. SCWD has closed three wells due to perchlorate and two due to nitrates, and now has ten active wells. NCWD has one closed well due to perchlorate contamination; two additional wells are inactive due to low water levels; and eight wells are active. The Friends of the Santa Clara River and the Sierra Club filed a petition for writ of mandate in 2001 challenging the approval of the Urban Water Management Plan (UWMP) prepared by the Castaic Lake Water Agency, Newhall County Water District, Santa Clarita Water Company and Valencia Water Company. The Fifth Appellate Court recently decided that the 2000 UWMP was inadequate due to the failure to address issues related to perchlorate contamination of groundwater in the Santa Clara region. Perchlorate contamination has been found in the Saugus Formation and concerns have been raised regarding contamination of the upper basin, the Alluvial Aquifer. While the CLWA will have its perchlorate treatment plan completed in 2005 and final clean-up will be completed in 2010, the Court found that the 2000 UWMP did not adequately address the timing of implementation of treatment and did not address the reliability of the water supply before and during treatment. For these reasons, the Court declared the UWMP inadequate. The actual amount of water affected by the perchlorate contamination in both the Saugus Formation and in the Alluvial Aquifer is still in dispute (as are other portions of the November 23, 2005 – Final 17 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region UWMP) and the court did not address those issues. A copy of Court's opinion can be found in Appendix A. It is expected that the lawsuits concerning water supply in the Santa Clara MSR region will continue. It is beyond the scope of this report to address all issues, continuing studies and legal challenges regarding water supply and quality in the region. However it should be noted that the inability of the agencies and organizations involved to settle disputes without resorting to the courts involves the use of public funds which could otherwise be used to address remediation of water supply and quality issues. Per the requirements of AB 3030, the purveyors in the Santa Clarita Valley prepared a groundwater management plan (December 2003) which addresses the condition of the aquifers, yield, recharge and water quality. As SCWD, NCWD and Valencia Water Company share the same groundwater source, it is assumed that all agencies will conform to the guidelines of the plan. It is recommended that LAFCO evaluate the agencies’ participation in the development and conformance with the groundwater plan guidelines when reviewing spheres of influence or future annexation requests. Green Valley CWD relies solely on groundwater for supply. Other persons residing within the Green Valley area, but outside the boundaries of the District, derive a substantial portion of their water supply from wells that pump from the same aquifer that serves the District. Since the formation of the District, dramatic fluctuations in well levels created some uncertainty as to whether increased demand could be sustained in succeeding years. During periods of drought, the water level declined significantly. The increased precipitation from March 1991 to 1998 increased the static well levels. However, the recent dry years are expected to cause well levels to decline again. Golden Valley MWD relies solely on groundwater as well. The District did not indicate any concern over groundwater levels or water quality. Recycled Water Supply Recycled water is available through two water reclamation plants operated by the Los Angeles County Sanitation Districts. This source is an integral component of the water supply included in the Newhall Ranch Specific Plan, as it directly offsets future demand for potable water for outdoor use. In addition, there is an interest in recycled water by existing water users in CLWA’s service area. CLWA prepared a draft Reclaimed Water System Master Plan in 1993 that outlined a multiphase program to deliver recycled water in the Valley. Phase I was implemented in 2003; it is expected that up to 17,000 AF per year of treated wastewater will be available by 2020, suitable for use on golf courses, landscaping and other non-potable uses. November 23, 2005 – Final 18 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Demand The proposed Newhall Ranch Specific Plan is the primary component of the region’s future growth. It covers 11,963 acres west of I-5 to the Ventura County line in the vicinity of SR 126. Build-out is expected to occur over 25 to 30 years and will ultimately include 21,615 dwelling units with an on-site population of 60,000 persons. Water supply and demand is addressed in the “Revised Draft Additional Analysis to the Newhall Ranch Specific Plan and Water Reclamation Plant Final Environmental Impact Report”, dated November 2002. This document was prepared in response to a writ of mandate and judgment by the California Superior Court that ordered Los Angeles County to partially set aside certain project approvals and conduct additional analysis to demonstrate that adequate water sources will be available for build-out of the project, among other issues. According to the document, there is adequate water supply to meet the demand of the Newhall Ranch Specific Plan at build-out. The build-out is assumed to occur from 2005 to 2030 at a rate of 864 dwelling units per year, with average water demands of 707 AF/Yr. The methodology used for determining demand proposes a dual water system: potable for indoor and outdoor uses and a parallel system for reclaimed water for outdoor irrigation uses. Water demands have been disaggregated to accurately estimate usage based on land use type. The projected water demand at build-out is 8,645 AF/Yr of potable water and 9,035 AF/Yr of non-potable water. As shown in the Revised Draft Additional Analysis, The Newhall Ranch Specific Plan water demand in five-year increments is shown below in Table 3.2 – Newhall Ranch Specific Plan Water Demand. Table 3.2 – Newhall Ranch Specific Plan Water Demand Five-Year Increment Demand (AF/Yr) Potable Non-Potable 2006 – 2010 1,729 1,807 2011 – 2015 3,458 3,614 2016 – 2020 5,187 5,421 2021 – 2025 6,916 7,228 2026 – 2030 8,645 9,035 Specific Plan build-out is projected to occur by 2030. The first units are assumed to be occupied by the end of 2005. Source: Newhall Ranch Specific Plan and Water Reclamation Plant Revised Draft Additional Analysis – November 2002. Page 2.5-124 Water supply to meet the Specific Plan demand is projected to come from several sources. Potable supply will be provided by Newhall Ranch Agriculture Water, Nickel Water, and the Semitropic Groundwater Banking Project. Non-potable water will be supplied by Newhall Ranch Reclaimed Water and CLWA Reclaimed Water. Supplemental supplies are also identified. According to the analysis, the projected surplus (supply over demand) will be 11,609 AF/Yr for average years and 11,229 AF/Yr for dry years. November 23, 2005 – Final 19 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Increasing emphasis is being placed on conservation; the districts have implemented 14 Demand Management Measures and 7 BMPs. Each of the districts has an active conservation program that is a critical component of demand side management. CLWA, in conjunction with the other districts, is considering the development and implementation of a comprehensive water conservation program that would expand on existing water conservation activities. The California Water Code Division 6, Sections 10610 et seq., Urban Water Management Planning Act, as amended January 1, 2002 requires all UWMPs be updated in 2005. The four agencies – CLWA, SCWD, NCWD and VWC – are collaborating on the updated UWMP. This will provide an opportunity for the agencies to re-evaluate projected population, water supply and demand within the Santa Clarita Valley. Full build-out for the Santa Clarita Valley is expected to occur near 2045, with projected water demand of 153,500 AF/Yr in average years and 163,900 AF/Yr in dry years. Water supply and demand for each of the six public water districts in the Santa Clara MSR study area is summarized below in Table 3.3 – Supply and Demand Summary. Valencia Water Company is included as information only. November 23, 2005 – Final 20 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Table 3.3 – Supply and Demand Summary (Acre Feet/Year unless otherwise noted) Castaic Santa Valencia Newhall District Green Golden Lake Water Clarita Water CWD #36 Valley Valley Water System Supply/Demand Summary Agency Water Company CWD MWD Division Population Data Annual Growth Rate 2.6% 2.8% 3.2% 5.5% 9.6% 10.8% Current 190,700 66,900 89,000 25,300 3,742 1,032 110 Projected – 2010 265,700 83,100 46,000 5,722 2,053 190 2015 303,200 94,100 55,000 6,711 2,676 249 2020 340,000 105,100 63,000 8,054 3,618 348 Supply Data % Increase (annualized) 4.7% 1.5% 8.5% 0% 1.0% Current 43,475 28,429 28,360 10,362 1,071 113 100 Imported 42,475 18,916 15,792 5,986 1,071 0 0 Groundwater 0 9,513 12,568 4,376 0 113 100 Recycled 1,000 0 0 0 0 0 Other 0 0 0 0 0 0 Projected – 2020 84,000 37,000 28,000 NP 113 120 Demand Data % Increase (annualized) 4.7% 2.5% 8.3% 0% 1.0% Current 45,000 24,558 9,527 1,015 113 100 Projected – 2020 84,100 36,600 25,300 NP 113 120 NP – data not provided by agency 3.2.2 Water System Infrastructure Beyond supply and demand, infrastructure must be evaluated for its capacity to serve. Infrastructure for each of the six public water agencies in the Santa Clara MSR study area is summarized in Table 3.4 – Infrastructure Summary below. Valencia Water Company is included as information only. November 23, 2005 – Final 21 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Table 3.4 - Infrastructure Summary Castaic Santa Valencia Newhall District #36 Green Golden Water System Infrastructure Lake Water Clarita Water CWD Valley CWDValley MWD Summary Agency Water Company Division Number of Service Connections 1 25,103 26,800 8,440 1,277 463 24 Length of Pipe (miles) 21.3 265 310 146 32 NP 2 Pump Stations 3 20 14 2 2 0 Tanks* 0 39 21 3 NP 1 Reservoirs** 2 0 0 0 NP 0 Total Available Storage 40 mg 67 mg 24 mg 2.8 mg NP 0.4 mg Treatment Plant Capacity 63.6 mgd NA NA NA NA NA CLWA Connections 6 7 4 1 NA NA Inter-ties with Neighboring Districts NP 2 NP NA NA * Tanks are defined as above ground storage facilities ** Reservoirs are defined as in-ground water storage facilities NP – data not provided by agency; NA – not applicable The leading issues related to water system infrastructure in the Santa Clarita Valley stem from overlapping service areas and service area gaps. To resolve the retail issue that arose when CLWA purchased the Santa Clarita Water Company, AB 134 was adopted in 2001. The legislation established a boundary within which CLWA, through SCWD, could provide retail service. For areas that overlap with NCWD, NCWD must grant approval for SCWD to provide service if the area was not served by SCWC prior to September 2, 1999. Existing overlapping service areas were created by agreement between NCWD and SCWC (the private company). Over time, NCWD had annexed areas, including hilltops, where it did not have infrastructure or present capacity to serve. Through an arrangement with SCWC, NCWD agreed that SCWC would serve those areas where SCWC’s infrastructure was in place and it could serve. These agreements between NCWD and SCWC were approved by the PUC and were handled appropriately for a private water purveyor; however they have not been reviewed by LAFCO. This has led to the current situation where SCWD is now providing service to approximately 1,000 connections within NCWD’s service area. Similarly, Valencia Water is providing service to approximately 300 connections within NCWD’s service area. The following Exhibit 1 – Purveyor Water Service Areas and Parcels depicts the current service areas in the Valley. Exhibit 2 – Northern Service Area highlights the overlapping service areas and proposed new developments. November 23, 2005 – Final 22 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Exhibit 1 –Purveyor Water Service Areas and Parcels November 23, 2005 – Final 23 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Exhibit 2 –Northern Service Area Green = Proposed New Development Green Dots = SCWD Storage Facilities Yellow = SCWD within NCWD Service Area Blue = Valencia within NCWD Service Area November 23, 2005 – Final 24 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Because of the overlap and lack of determination on which agency will serve which areas, the ability of any agency to develop a Valley-wide comprehensive master plan was seriously hindered. Per public comments at the June 14, 2004 special meeting of the CLWA Board of Directors, one developer had Will-Serve letters from both SCWD and NCWD, but was not able to obtain a Water Service Agreement from either one. SCWD was unwilling to commit to service until it had an understanding of whether NCWD was willing to serve the new development or will have infrastructure in the area. This caused property owners to request detachment from their existing agency in order to seek service from the other. Some properties served by private wells have been waiting for four years for water service, with no indication on when it might be provided. The degree of public concern over this situation was evidenced in a number of communications provided for the review by interested parties. First, Vasquez Pacific LLC and Sierra Way Estates LLC are seeking water service for two tentative tracts (Nos. 52990 and 47573), neither of which is currently annexed to NCWD or SCWD. The Lower Mint Canyon Property Owners Association, located in the area of the proposed development, circulated a petition to the Board of the NCWD dated April 21, 2004 and signed by 23 property owners, strongly urging the District to approve water service for the developments as it will complete construction of the pipeline and allow the existing owners to receive service through the Vasquez Water Main project. This petition was preceded by a request made at the February 12, 2004 NCWD Board meeting from the Association for a written response regarding future water service. Regarding the two developments, Tract No. 52990 was approved by the County of Los Angeles in August 2001, showing SCWD as the water service provider. The approval has been extended and the project is currently in final plan check for the grading permit, having satisfied all the environmental permits required in the final Mitigated Negative Declaration (MND). Tract No. 47573 was scheduled for a County Subdivision Committee meeting on September 9, 2004, and the County is requesting a Will-Serve letter prior to moving the approval process forward. The developer was seeking service from NCWD (presumably due to the proximity of NCWD infrastructure and the partially constructed Vasquez Canyon transmission line), but has become frustrated with the process including an August 10, 2004 requirement from NCWD for an EIR that will address construction of the necessary infrastructure in the Vasquez Canyon area. NCWD noted that the District’s facilities were excluded from the MND, and because of potential environmental impacts of those facilities, it was determined that an EIR was required. The developer has since requested service from SCWD and is seeking annexation to its service area. As a further example, The Barbot Group, the developer of the Meadow Peak Project (TTM 47760), requested offsite construction estimates for its project located in an unincorporated area of Los Angeles County. The development is primarily within NCWD’s service area and partially within SCWD’s service area. It lies 3.6 miles east of NCWD’s Tesoro Service Area. It lies north and adjacent to SCWD’s November 23, 2005 – Final 25 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region existing water system north of Copper Hill Drive in Saugus. NCWD provided the developer with an estimate of $5,774,000 to provide service, including two reservoirs, two booster stations, transmission pipeline and cost sharing for existing facilities. SCWD provided an estimate of $2 million. The difference in cost is significant. This service area situation also created system inefficiencies to the detriment of the rate payers, including: duplicate infrastructure in some areas; the construction of infrastructure that has later been found to be undersized; and infrastructure that has been partially constructed and has not been put into service. Partially in response to this issue, LAFCO commissioned the Santa Clarita Regional Comprehensive Water Study as an independent study of water issues in the Santa Clarita Valley. The study was completed in November 2005 and is incorporated by reference into this MSR. The study finds that “the most significant cases of redundant infrastructure are parallel pipelines resulting from the construction of water transmission pipelines by one water agency in the service area of another agency to transport water from a CLWA connection or a well.”2 NCWD has a partially constructed transmission line in the Vasquez Canyon area (discussed above) but there is no clear understanding of when it will be completed and brought into service due to legal and environmental issues. In an area that is expecting significant planned growth, the agencies have been unable to develop comprehensive master plans for their service areas, which could be increasing costs and decreasing service efficiency as a result. The recommendations for service area changes in the Regional Comprehensive Study are intended to reduce future duplication of infrastructure. Service area issues between NCWD and SCWD are expected to be addressed through the Memorandum of Understanding (MOU) signed by the two agencies on September 19, 2005. The MOU, included in Appendix B, includes the revised and additional service areas agreed to by both parties. Service areas and service gaps are discussed in detail in the Santa Clarita Regional Comprehensive Water Study. The report includes recommendations for which retail agency should serve specific areas. This will allow LAFCO to consider a comprehensive sphere of influence update and annexation strategy. This study and subsequent SOI updates provide the framework for agencies to plan appropriately for infrastructure and to respond to requests for new service in a timely manner. For the wholesale system, CLWA receives SWP water through the Foothill Feeder, a shared transmission line with Metropolitan Water District of Southern California. Water is stored in two reservoirs, Castaic Lake and Castaic Lagoon. CLWA has produced a report entitled “Data Document Providing Economic Justification for Proposed Capacity Fees” dated April 2003 which serves as the guiding document for capital improvements to the wholesale system and the proposed method and basis for allocating the costs among those lands on which new development occurs. 2 Stetson Engineers, Inc. Santa Clarita Regional Comprehensive Water Study. November 2005. page 87 November 23, 2005 – Final 26 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region The two districts to the north, Green Valley and Golden Valley, have separate systems designed to provide groundwater from wells to local residents; the systems are not adjacent to or tied into any other systems. As mentioned previously, recycled water use is in the early stages of development and the supply is currently acquired from the Los Angeles County Sanitation District, however demand is expected to increase and infrastructure for delivery of recycled water is a significant component of CLWA’s capital improvement program. Regulatory agencies with which the districts must comply include: (cid:131) Los Angeles Regional Quality Control Board – permit to operate wastewater treatment and disposal facilities and to discharge effluent when necessary (cid:131) South Coast Air Quality Management Board for permits to operate and discharge exhaust emissions from stationary emergency generators, diesel engines used to operate pumps, and emissions resulting from biosolid disposal facilities (cid:131) California Dept. of Health Services for permits to operate and maintain potable water storage, treatment, and distribution facilities (cid:131) California Dept. of Water Resources (cid:131) California Dept. of Transportation (cid:131) California EPA – Dept. of Toxic Substances Control (cid:131) Los Angeles County Fire Dept. (cid:131) California Dept. of Fish and Game (cid:131) US Army Corps of Engineers Compliance with these regulatory agencies does not limit capacity of the water supply system. With the exception of groundwater quality concerns mentioned earlier, there is no indication of issues related to environmental constraints, such as wetlands, protected habitat or hazardous waste sites that would limit public facilities within the region. Castaic Lake Water Agency Castaic Lake Water Agency uses a 50-year horizon for infrastructure planning, as build-out is expected to occur in approximately 2045. The District also has adopted a policy that they will only build or acquire what is needed in such a manner as to insure that the water supply and facility needs are continuously met subject to an adequate margin of safety. As part of their methodology, the District has divided their service area into 8 water service cost areas. This allows for focused planning and cost allocations to the benefiting area rather than district-wide. November 23, 2005 – Final 27 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region There are multiple projects underway to improve or augment water supply, water banking, treatment, collection and distribution facilities. The FY 2003-2004 Capital Improvement Program identifies projects totaling $455 million to be implemented through 2050, with $344 million of that attributable to growth. The following has been proposed through FY 2008-2009 to improve delivery reliability, capacity/supply, facilities improvements, safety and regulatory compliance. • Water Supply Projects (100% for recycled water) - $28.7 million • Water Supply Banking Projects (all in 2004, including 4 wells) - $14.6 million • Pipeline/Pump Station/Storage Projects (completed in 2005) - $37.1 million • Water Treatment Projects - $38.5 million Santa Clarita Water Division Santa Clarita Water Division has budgeted $744,000 for its 2003-04 capital replacement projects, including well, pump, booster pump and tank upgrades, relocation of an 8” main, and meter purchases and installations. This budgetary figure also includes technology upgrades, improvements to structures, and cyclical vehicle replacement. Property owners requesting new connections are required to pay for the cost to hook up as well as a capacity charge for SCWD production and storage facilities benefiting the property. In addition, owners must also pay a capacity charge to CLWA for CLWA facilities benefiting the property. Developers are required to pay for any facilities necessary solely to serve their development. Meters are replaced on a regular schedule for planned maintenance. Growth and development is a significant issue for the Castaic Lake Water Agency and Santa Clarita Water Division but the Agency has planned facilities to meet future demands through its planning process. SCWD is in the process of preparing a Master Plan now that service area issues have been addressed through the MOU with NCWD discussed above. Newhall County Water District Newhall County Water District has addressed infrastructure needs through the development of master plans specific to each of its four service areas. The master plans include an estimate of growth and future infrastructure requirements. New collection and distribution facilities are funded by new development. Existing customers do not subsidize new capacity, but partially fund replacement of existing infrastructure that is nearing the end of its useful life. Some system capacity issues were identified in the master plans; these are being addressed through the CIP. The District’s CIP plan includes $13.6 million in improvements through 2005-2006, including wells, reservoirs (tanks), pumps, pipelines and technology. Major new storage, collection and distribution facilities funded by development include: Wes Thompson (1.15 mgd), Vasquez Canyon (2.13 mgd), November 23, 2005 – Final 28 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Tesoro (4.45 mgd), and North Lake (1.63 mgd). As mentioned earlier, Vasquez Canyon is the location of the 18-inch pipeline that has not been put into service due to legal issues and an environmental review that has not been completed. County Waterworks District #36 – Val Verde Waterworks District #36 receives imported water from the Castaic Lake Water Agency as well as groundwater through a connection with the Peter J. Pitchess Wayside Honor Rancho. The area is served through three local storage tanks with a capacity of 2.75 million gallons. The County does not have a master plan for Waterworks District #36, but has developed a computer model of the system which is used for planning. Areas of potential growth in Waterworks District #36 are at elevations that are higher than can be served by the existing system. Developers are required to finance the necessary infrastructure to serve new development, including any necessary improvements to existing infrastructure. As part of a large development in the District, a new well and related facilities will be constructed. The facilities will be oversized with capacity to serve existing District customers. The developer’s share of the cost will be based on the projected water demands of the development. The remaining portion of the cost will be paid by the District. Green Valley County Water District Green Valley County Water District has 8 active wells, 2 booster stations and 4 storage tanks. $20,000 was spent for installation of new meters in 2003-2003, offset by $20,000 in meter revenues. This district serves a limited area, less than one square mile, and is restricted by ordinance from having more than 500- meter connections. Only 6 new water meters are issued each year. With these limitations, the infrastructure system is adequate to serve the needs of the customers for the next 10 years. Golden Valley Municipal Water District Golden Valley Municipal Water District is a member agency of the Antelope Valley – East Kern Water Agency, and as such, has the potential to receive water from the State Water Project. Property tax is still collected within the service area to ensure that this availability continues. In 1992, the District borrowed approximately $90,000 from the State of California for water and sewer system improvements. In 2002, the District obtained loan and grant funds from the US Department of Agriculture for water system improvements. Of this amount, $151,800 was a loan scheduled to be paid in full by 2043. The District noted that the State of California owns 2,200 acres of land within its service area for the Hungry Valley Off-Road Vehicle Park. The District is available to provide water and sewer service to the park, although it does not provide these services at this time. In addition, the District has been approached by two developers, one of whom desires to annex approximately 500 acres to the district. If these developments occur, the demand for water service will increase significantly. November 23, 2005 – Final 29 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.3 FINANCING CONSTRAINTS AND OPPORTUNITIES 3.3.1 Revenues and Expenses Comparison The following, Figure 3.2 – Santa Clara Region 2002-2003 Financial Information, compares the revenues, expenses, reserves and capital improvement program costs of each public water agency in the Santa Clara MSR study area. The data received for County Waterworks District #36 includes all of the waterworks agencies for Los Angles County; data specific to District #36 was not provided. Figure 3.2 – Santa Clara Region 2002-2003 Financial Information (in thousands) $200,000 $188,998 $175,000 $150,000 $125,000 $100,000 $81,563 $75,000 $50,000 $44,449 $25,000 $22,307 $14,344 $12,887 $6,563 $7,25 $ 6 774 $6,759 $5,099 $7,443 $682 $664 $18$277 $277 $277 $350 $20 $91$83 $6$276 $0 Castaic Lake Water Santa Clarita Water Newhall CWD District #36 - Val Green Valley CWD Golden Valley MWD Agency Division Verde Revenue Expenses Reserves CIP None of the agencies indicated a need for new facilities or facility upgrades that have not been planned due to financing or other constraints. Each of the agencies in the Santa Clarita Valley has a financial structure that requires new development to pay for the infrastructure necessary to serve new connections. Furthermore, NCWD has an infrastructure cost charge to fund its Capital Improvement Program. In 2005, NCWD adopted Resolution 2005-26 establishing a Reserve Policy with Unrestricted Reserves for November 23, 2005 – Final 30 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Operations and Maintenance and Rate Stabilization; and Restricted Reserves for Capital Improvements, Debt Service and Emergency/Disaster. Waterworks District #36 imposes a Water Well Surcharge to cover the District’s share of the new well. SCWD finances water facility replacements and improvements through its fixed meter and usage charges. The Golden Valley Municipal Water District has faced financial constraints in the past; however the District has taken effective steps to resolve these issues. The District approved a 20% rate increase in February 2004 and ended FY 2003-2004 with a positive cash flow.3 It has $309,374 in long term debt that includes loans from the State in 1992 for rehabilitation of the sewer and water systems payable in full by 2013; USDA Rural Development in 2002 for rehabilitation of the water system payable in full in 2043; and two promissory notes at 10% per annum with principal of $100,000 due in full on January 8, 2005. (No information was provided on the status of the two promissory notes.) The District has restricted some cash assets specifically for long-term debt. 3 Independent Auditor’s Report. Randy Nickel, Certified Public Accountant. September 3, 2004. November 23, 2005 – Final 31 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.4 COST AVOIDANCE OPPORTUNITIES Castaic Lake Water Agency Castaic Lake Water Agency has an UWMP as well as a Capital Improvement Program which identifies opportunities for cost savings, introduction of recycled water resources, and improved demand management. The planning tools are in place to allow the Agency to forecast capital expenditures based on growth and existing system maintenance. This ensures that implementation and construction are carried out in a cost-effective manner. The Agency is not currently using its authority to generate electricity for its own use or to sell at wholesale. It does provide contract laboratory services to the Department of Water Resources for analysis of SWP water quality parameters. No additional cost avoidance opportunities were noted. Santa Clarita Water Division Santa Clarita Water Division is included in the regional UWMP and has developed a capital improvement plan based on projected demand. In the past SCWD avoided unnecessary cost by delaying approval on Water Service Agreements for service to areas that might be served by NCWD until service area issues had been addressed. With a formal MOU regarding service areas now in place, SCWD is moving forward with a comprehensive master plan for facilities and requests for service. Newhall County Water District Newhall County Water District is included in the UWMP for the Santa Clarita Valley. The Water Supply Assessment prepared for and accepted by the District in December 2004 serves as the principal basis for District planning. The District has master plans for its service areas which identify opportunities for cost savings and improved demand management. The District is currently providing all the services it is authorized to provide. It does provide service to areas outside its boundaries due to earlier application processing procedures. Previously, the application review process did not include verification that the property was within the District’s service area boundaries. This has been rectified and is now a standard procedure. These areas are identified in the Santa Clarita Regional Comprehensive Water Study prepared for LAFCO. In addition, Santa Clarita Water Division and Valencia Water Company provide service to areas within NCWD’s boundaries, as developers sought service from the water purveyor with facilities closest to the proposed development. These actions date back twenty years; no boundary adjustments or sphere amendments were processed through LAFCO. Specific cost avoidance measures that increase reliability and efficiency were noted by the District. It has contracted for data backup and preservation of valuable documents to be stored in another location. It has November 23, 2005 – Final 32 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region completely computerized its operation, increasing efficiency and reliability. The water system uses SCADA (a data monitoring system) and radio-linked communications to assure reliability of the system. The District is partially through the process of converting meters to “radio read”, which will increase efficiency. All heavy use vehicles are changed out every five years per District policy to avoid costly repairs. County Waterworks District #36 – Val Verde Waterworks District #36 is managed by LACDPW which allows overhead cost savings and shared management. The District receives services from the LA County Agricultural Commission for water testing and weed abatement. There are areas of potential growth within the district that cannot be served by the existing system due to elevation. Some of these areas will require construction of new facilities to bring water to the necessary location an elevation. However, per District policy, the infrastructure cost to serve new areas will be borne by the developer. Green Valley County Water District Green Valley County Water District is fully serving the properties within its service area and did not identify any additional cost avoidance opportunities. Golden Valley Municipal Water District Golden Valley Municipal Water District is currently not providing refuse collection or water oriented recreation, both of which the District is authorized to do. No cost avoidance opportunities were identified. November 23, 2005 – Final 33 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.5 MANAGEMENT EFFICIENCIES Castaic Lake Water Agency and Santa Clarita Water Division As part of its management framework, CLWA has a strategic plan including goals and objectives specific to communication, environment, finance, leadership, operations, organization, and water management. The budget process includes monitoring and reporting of progress and achievement of goals. The Agency has received multiple awards in the past ten years, including twice receiving the ACWA Theodore Roosevelt Environmental Award for Excellence in Natural Resource Management. CLWA has also received recognition for community service from the City, County and other community organizations. To monitor productivity, CLWA tracks a number of workload statistics, and reports these to the Board of Directors on a monthly basis. These include wholesale water deliveries, water quality information, retail water sales, groundwater production and public outreach activities. Newhall County Water District NCWD adopted a Strategic Plan in June 2005 that includes the following elements: External Relationships, Resource Management, Infrastructure Management, Personnel Management, Administrative Management, and Financial Management. The Plan, based on the District’s mission statement and core values, provides a framework for District policies, actions, and projects that improves management efficiency. NCWD operations are evaluated utilizing several methods: monthly water loss survey, annual Edison pump efficiency tests, daily facility inspections, monthly production summary reports, monthly budget reports, and water system security evaluations including vulnerability analysis. Productivity monitoring is achieved through maintenance management software and a time card database with specific job codes. A weekly project status report is reviewed in staff meetings to evaluate productivity of each department and performance of duties. Electronic meter reading equipment monitors customer service representatives’ productivity in reading meters. County Waterworks District #36 – Val Verde Waterworks District #36 is operated under the LACDPW which allows shared management and administrative efficiencies. Customer complaints are directed to one person; customers may also visit headquarters in Alhambra or the field office in Lancaster. Performance is evaluated by the State Auditor- Controller for financial operations and the State Department of Health for water quality. Productivity is monitored through a Maintenance Management System (MMS) and a Financial Accounting System November 23, 2005 – Final 34 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region (FAS). In addition, the District has developed a performance monitoring system. Through these evaluation tools, LACWWD was able to modify the scope of work for its contract for emergency contracting services. No opportunities for improvement were identified by the District. Green Valley County Water District Green Valley County Water District does not have any adopted policy objectives. Performance is evaluated through a Consumer Confidence Report and Source Water Assessment and Protection Program, as well as annual audits performed by an independent auditor. No opportunities to improve management efficiency were noted by the District. Golden Valley Municipal Water District Golden Valley Municipal Water District does not have any adopted policy objectives. It does not have any employees, but uses contractors and its directors for some services instead. The directors were paid a total of $28,750 for various services performed on behalf of the district in FY 2002-2003, including office management, system supervision, and secretarial services. The District did not identify any opportunities to improve management efficiency. November 23, 2005 – Final 35 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.6 SHARED FACILITIES Castaic Lake Water Agency Castaic Lake Water Agency shares the Foothill Feeder with the Metropolitan Water District of Southern California as its major conveyance facility from the California Aqueduct. CLWA and MWD negotiated a wheeling agreement in 1992 that states the terms of facilities sharing. There are no additional opportunities for mutually beneficial reciprocal wholesale water service. CLWA meets regularly and collaborates with the retail purveyors in order to enhance service and identify potential opportunities for facilities sharing and cost avoidance. Santa Clarita Water Division Santa Clarita Water Division has emergency inter-ties with Newhall County Water District and Valencia Water Company. Joint decision-making efforts include the MOU between the Santa Clara River Valley Upper Basin Purveyors and United Water Conservation District (a neighboring district in Ventura County) and CLWA’s AB 3030 Groundwater Management Plan. Both the MOU and the Plan seek to further local understanding and management of the groundwater basins associated with the Santa Clara River. Newhall County Water District NCWD makes its Saugus groundwater production available to the other Santa Clarita Valley water purveyors for use during times of drought. The wells are centrally located near CLWA’s transmission facilities that can be used to serve the other districts. NCWD participates in a Joint Powers Insurance Authority through ACWA which provides more favorable insurance rates. The District also participates in an ACWA-USA joint powers agreement; the purpose or benefits were not identified. Emergency inter-ties between retail agencies provides for greater water service reliability in the region. NCWD identified an opportunity to develop wells designed to pump from the Saugus Groundwater Aquifer (the deeper aquifer), as this will provide for greater service reliability. Waterworks District #36 – Val Verde Waterworks District #36 does not participate in any joint powers authorities or joint decision-making efforts to provide services. They do not currently share facilities with any other districts, other than office space with LACDPW. No potable water inter-ties for emergency service or normal service interruptions were indicated. No opportunities to share facilities were identified by the District. November 23, 2005 – Final 36 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Green Valley County Water District With its remote location, Green Valley County Water District does not have the ability to share facilities with other districts. No opportunities were identified. Golden Valley Municipal Water District Golden Valley Municipal Water District did not provide information regarding shared facilities. Shared facilities are likely not feasible due to the District’s isolated location. The District did not indicate any opportunities to share facilities with other agencies. November 23, 2005 – Final 37 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.7 RATE RESTRUCTURING The following figure, Figure 3.3 – January 2005 Average Monthly Residential Water Bill Rate Comparison, compares reported rates from agencies in the Santa Clara MSR study area. Green Valley CWD did not report rate information and no estimate for an average bill has been included. Valencia Water Company is included as information only. Figure 3.3 – Santa Clara Region January 2005 Average Monthly Residential Water Bill Rate Comparison (¾” meter) Green Valley CWD Golden Valley MWD VWC SCWD NCWD - Summer Rates NCWD - Winter Rates LAWWD #36 $- $10.00 $20.00 $30.00 $40.00 $50.00 Typical Monthly Charge It should be noted that there are many factors that affect water rates. These include the geography of the system, condition of the system, customer demands, agency design criteria, public vs. private ownership of the system, etc. Castaic Lake Water Agency Castaic Lake Water Agency wholesale rates are structured to recover operating costs. The rates were not increased from 1986 to 2003, as constant organizational improvements contained costs. Subsequently, the Board of Directors has adjusted the wholesale water rate effective January 1, 2004 to $181 per acre- foot, a 25% increase that also eliminated a variable rate that had been in effect since 2001. At the time November 23, 2005 – Final 38 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region the rate increase was adopted, it was discussed that revenues and expenditures would be monitored closely and any additional revenues would be applied to future costs to maintain rate stability. CLWA has a policy stating that the benefiting user must pay according to the actual cost of service. The cost of facilities is therefore allocated between existing and future users according to the proportion of benefit. Connection fees recover the costs for future users, and existing users do not subsidize new capacity. Santa Clarita Water Division SCWD charges applicants for the actual cost of connecting to the water system. In addition, they are required to pay a capacity charge, which represents the proportional cost (based on meter size) of production, treatment, storage and transmission facilities benefiting their property. This “backbone” system must be constructed prior to actual hookup, so SCWD uses existing reserves for construction, which are repaid through capacity charges. All customer types are charged the same rate. SCWD is consistently pursuing opportunities to reduce service costs without impairing service to its customers. There is a rate issue created by overlapping service areas. The approximately 1,000 customers of SCWD and 300 customers of Valencia Water Company that reside within the NCWD service are paying NCWD property tax assessments but not benefiting from the infrastructure. Newhall County Water District Connection fees consist of two components, Master Plan Facilities and Backup Facilities fees. Master Plan Facilities fees are established from an approved engineered Master Plan based on anticipated growth for each service area. Backup facilities fees are established from the capital assets of the service area minus depreciation of ultimate build out. The Board of Directors reviews the fees on a yearly basis and adjustments are made as more facilities are constructed and dedicated to the District. Existing customers do not subsidize new capacity, but do subsidize capital replacement of old facilities. Rates vary by service area. As mentioned above, NCWD is receiving assessments on properties within its service area that are actually served by SCWD or Valencia Water Company. It is recommended that these parcels be identified and factored in to any future LAFCO sphere reviews. On July 24, 2003 the NCWD Board of Directors adopted a Capital Program Surcharge for the purposes of funding the Capital Program of the District for Fiscal years 2003-04 through 2005-06. The surcharge is $0.089 per CCF for debt service on $4 million. The Castaic service area also includes a surcharge for retirement of a DWR loan used for improvements in that area. November 23, 2005 – Final 39 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region The NCWD adopted a new Incremental Tiered Rate Structure for residential customers and a flat moderate increase to non-residential and master metered residential customers that went into effect on January 1, 2005. Tiered rate systems are a common methodology used by water agencies to relate customer water charges with water use. County Waterworks District #36 – Val Verde Waterworks District #36 does not charge connection fees, but does impose some or all of the following water supply fees: (cid:131) Acreage Charges based on property usage and fire-flow protection requirements – computed on gross acreage (cid:131) Tank Capacity Unit Charges based on meter demands and fire-flow protection requirements (cid:131) Frontage Charges based on benefited front footage, fire-flow protection requirements, and size of water main to supply fire-flow protection (cid:131) Water System Engineering Charges including costs to review developments, establish water system construction requirements, check plans and other documents (easements), inspect construction work, process water service applications, and inspect installation of service connections and meters. The District does not charge different water rates to particular customer classes or retailers; the rate was increased in 2003 by $4.90/month/meter for seven years to supplement the funding of a new well for the District. In 1983, the Rules and Regulations were amended to include a surcharge of $0.10 per 100 cf of water per month on all water sold for facilities construction. Green Valley County Water District Green Valley County Water District conducts public hearings for any rate changes. The Notice of Public Hearing is published in the Antelope Valley Press. Connection fees are $5,000 and have not changed since the District’s formation. They did not identify any further opportunities to reduce service costs. Golden Valley Municipal Water District Golden Valley Municipal Water District charges a flat rate to residential customers and a metered rate to non-residential customers. The Board approved a 20% rate increase in February 2004. November 23, 2005 – Final 40 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 3.8 GOVERNMENT STRUCTURE OPTIONS The Santa Clarita Regional Comprehensive Water Study completed for LAFCO in November 2005 contains a number of recommendations on service area changes to address overlapping service areas and service gaps. Figure 23 in the report summarizes the recommended service area revisions. The recommendations should serve as a foundation for a comprehensive Sphere of Influence update for the retail water purveyors in the Santa Clarita Valley as well as a strategy for future annexations. Castaic Lake Water Agency and Santa Clarita Water Division Castaic Lake Water Agency responds to growth as described in the UWMP and does not direct growth to particular areas. The Agency is currently considering annexation requests in accordance with their annexation policy. CLWA is a special act agency formed for the specific purposes set forth in its act. There are no other agencies formed under the same act with which CLWA could be consolidated. CLWA/SCWD’s retail water authority is restricted to a specific geographic area in the Santa Clarita Valley, and any revision to SCWD’s service area may require amending AB 134. CLWA has not considered any sphere of influence changes, consolidations or reorganizations under the Cortese-Knox-Hertzberg Act. CLWA acquired the Santa Clarita Water Company, an investor owned utility, in 1999 and the entities have since been combined. Newhall County Water District NCWD has not evaluated consolidating with other agencies. The District provided the following list of annexation requests expected to be submitted to LAFCO within the next two years. Castaic Area (cid:131) Castaic Shopping Center (cid:131) Castaic Lake Retirement Village (cid:131) Newhall Land and Farming Residential Parcels (cid:131) Paradise Ranch (I-5 and Templin Highway) (cid:131) Miscellaneous single parcels Tesoro Area (cid:131) Remaining master plan development Newhall Service Area (cid:131) Lyons development adjacent to Old Road and Calgrove (cid:131) Miscellaneous single parcels Pinetree Area (cid:131) Parcels within Upper Bouquet Service Area November 23, 2005 – Final 41 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region With the adoption of the MOU in September 2005, it is expected that NCWD and SCWD will work cooperatively on resolving service area issues and that proposed boundary changes will be brought to LAFCO to ensure the continued provision of efficient, cost-effective water service. County Waterworks District #36 – Val Verde The information provided indicated that County Waterworks Districts are currently processing 19 proposed annexations, with 12 of those a result of anticipated or active development. There was no indication which of the Waterworks districts this applies to. Green Valley County Water District Green Valley County Water District does not anticipate any SOI changes or reorganizations within their service area. The boundaries are coterminous and there is no potential for expansion. Golden Valley Municipal Water District Golden Valley Municipal Water District does not anticipate any SOI changes or reorganizations within their service area. The District did not identify any opportunities to improve the provision of service through a reorganization of service providers. 3.9 LOCAL ACCOUNTABILITY AND GOVERNANCE Castaic Lake Water Agency and Santa Clarita Water Division Castaic Lake Water Agency is an independent special district organized under AB 26, Chapter 28 of the California Statutes of 1962 and operates under the CLWA Act (West’s Water Code Appendix §103-1 et seq.) CLWA is governed by an 11 member Board of Directors consisting of 7 elected members and 4 appointed members representing the retail water purveyors. Six of the elected directors are by division, two from each of the three divisions. The other elected director is elected at-large from the whole agency. Regular meetings of the Board of Directors are held on the second and fourth Wednesdays of each month at 6:15 pm. CLWA Board and Committee meetings are conducted in accordance with the Brown Act. Meeting notices are posted in accordance with the Brown Act as well. CLWA distributes meeting notices, meeting agendas and meeting minutes to requesting parties. District meetings are well attended by the public. CLWA maintains an active public outreach program to inform Santa Clarita Valley residents of its ongoing activities, as well as specific board action items of interest to the public. Outreach methods include: press releases and periodic media briefings; website and quarterly newsletter; print media paid advertising and flyer distribution; school and landscape education program; and participation in a wide variety of community events. November 23, 2005 – Final 42 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Customer complaints related to retail service are addressed by the Customer Service Department. Each complaint is thoroughly reviewed by staff and a prompt response provided to the customer. If not satisfied, the customer can appeal the decision successively to the General Manager, Finance and Administrative committee, and ultimately the Board of Directors. Newhall County Water District NCWD is an independent special district formed under California Water Code Section 30000. The agency was established in 1953. A five-member board is elected at-large by general election. Regular Board meetings are held the second Thursday of every month. Meeting notices are posted at the front door of the District office and Board meeting room; they are also provided to local newspapers. Pertinent information relating to the District, including agendas, minutes and activities are posted on the website. Also, a quarterly newsletter is published and distributed in the monthly bills to customers and posted on the website. An annual report is published providing a financial overview of the District including water produced from the groundwater basin and purchased from CLWA. Local accountability, representation and service can potentially be compromised due to overlapping service areas. A person who resides within the NCWD service area but does not receive service from the District could be elected to the NCWD Board with full voting rights on actions regarding service and rates. For existing service, five staff members are dedicated to customer service. Customers can file a complaint or concern by mail, phone or in person. At the time of the complaint an investigation report is completed, and customer service staff investigates the issue. The customer is notified in person or by phone of the findings. If the customer is still not satisfied, they can speak with the Customer Service Manager, send a letter to the General Manager, or request to be heard at the monthly public board meeting. The District had 514 customer service requests last year, predominantly related to private plumbing and meter leaks, pressure variations, and other service-related issues. All were resolved by the District. County Waterworks District #36 – Val Verde Waterworks District #36 is a dependent special district, formed under Division 16 of the California Water Code (County Waterworks District Law). The County Board of Supervisors acts as the governing body, and Supervisors are elected within each district every four years. There is a broad range of means to communicate with constituents including live broadcasts over cable television, minutes posted on the County website, public hearings, and information sent directly to potentially impacted constituents. Board meetings are held every Tuesday in Alhambra. The Board conducts the business of the County, of which the waterworks district is a small component. November 23, 2005 – Final 43 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Customer complaints are handled by telephone, in the field office in Lancaster, or in the headquarters in Alhambra. Management level review is performed if the customer is not satisfied with the resolution. There were 39 customer complaints filed in the last 12 months for District #36. All of these complaints were handled by District staff members. Green Valley County Water District Green Valley County Water District is an independent special district formed under Section 30000 et seq. of the County Water Code. It was formed in 1979. The governing body is elected at large; meetings are held the second Thursday of the month. Public outreach includes posting of the agendas, annual mailing of the Consumer Confidence Report and publications in the local newspaper. Customer complaints are handled by district staff; if it is not satisfactorily resolved, they may address the Board on the matter. Most complaints are regarding billing errors or problems with leaks. Golden Valley Municipal Water District Golden Valley Municipal Water District is an independent special district organized under the Municipal Water District Act of 1911. The agency was formed in 1971. Directors are elected. Regular board meetings are held the third Wednesday of each month at 3:30 PM. Customer complaints are made in person at the meeting or submitted in writing. November 23, 2005 – Final 44 Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 4.0 DETERMINATIONS In approving a Municipal Service Review, LAFCO must adopt written determinations for the following nine factors specified in LAFCO’s governing statute. Determinations for each agency are provided below: Castaic Lake Water Agency and Santa Clarita Water Division 1) Infrastructure Needs and Deficiencies The Castaic Lake Water Agency provides wholesale water service to the Santa Clarita Valley and retail water service to approximately 25,000 connections through CLWA’s Santa Clarita Water Division. CLWA uses a fifty-year planning horizon to ensure that water supply is available concurrent with demand. CLWA also proactively manages its SWP allotment through water transfers, groundwater banking and conjunctive use. Perchlorate contamination of the groundwater, and its related treatment, is potentially a significant infrastructure issue for the Agency. There are significant infrastructure issues related to retail service due to overlapping service areas with NCWD, including delayed service, duplicate infrastructure, and undersized and under utilized facilities. Service area issues between SCWD and NCWD have been addressed in the Memorandum of Understanding signed by the two agencies in September 2005. Overlapping service areas and service gaps are detailed in the November 2005 Santa Clarita Regional Comprehensive Water Study prepared for LAFCO. The Study contains recommendations to address service area issues and infrastructure needs. 2) Growth and Population Castaic Lake Water Agency uses a parcel database to forecast future growth and demand. The population projections provided by CLWA and those based on SCAG data are relatively similar. Population growth is expected to increase by 2.6% annually. 3) Financing Constraints and Opportunities No significant issues regarding financing constraints or opportunities in relation to the provision of water service were noted for the Castaic Lake Water Agency. SCWD is operated as an enterprise fund, including all financial reporting, which accurately depicts the financial condition of the division. Concerns regarding the financial impacts to property owners who are trying to obtain retail water service should be resolved with the Memorandum of Understanding signed by NCWD and CLWA (SCWD) in September 2005. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 4) Cost-Avoidance Opportunities The Castaic Lake Water Agency uses both the Urban Water Management Plan and its Capital Improvement Program to identify cost avoidance opportunities. SCWD avoided costs associated with unnecessary infrastructure by delaying approval of new water service agreements in areas that might be served by NCWD. With the NCWD/CLWA Memorandum of Understanding in place, SCWD is developing a comprehensive master plan that will allow for cost-effective planning and the avoidance of costly, duplicate infrastructure. 5) Opportunities for Rate Restructuring Retail rates for SCWD customers were increased in 2004 by 12.2%; CLWA wholesale rates were increased 25% in 2004 which included the elimination of a variable rate. Revenues and expenditures are monitored and additional revenues are applied to future costs to maintain rate stability. 6) Opportunities for Shared Facilities The Castaic Lake Water Agency shares various facilities, equipment and staff with other entities to ensure more efficient service to customers. SCWD has emergency inter-ties with the Newhall County Water District and the Valencia Water Company. CLWA is also a member of the Santa Clara River Valley Upper Basin Purveyors which includes agencies in the service review region as well as in Ventura County. 7) Government Structure Options SCWD anticipates changes to its service area and sphere of influence as the result of requested annexations and detachments. CLWA/SCWD’s retail water authority is restricted to a specific geographic area in the Santa Clarita Valley per its authorizing legislation, and any revision to SCWD’s service area may require amending AB 134. The November 2005 Santa Clarita Regional Comprehensive Water Study prepared for LAFCO should serve as the foundation for a comprehensive SOI update and annexation strategy in the Santa Clarita Valley. 8) Management Efficiencies The Castaic Lake Water Agency has adopted a strategic plan and monitors its implementation of the goals of that plan annually. The District monitors its operations to increase management efficiencies. 9) Local Accountability and Governance CLWA’s Board of Directors has established processes for ensuring local accountability and governance. The District meetings are open and accessible to the public. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Newhall County Water District 1) Infrastructure Needs and Deficiencies The Newhall County Water District provides retail water service to approximately 8,500 connections located in four non-contiguous service areas. The District has addressed infrastructure needs and deficiencies through its master plans which have been prepared for each service area. There are significant infrastructure issues due to overlapping service areas with SCWD, including delayed service, duplicate infrastructure, and undersized and under utilized facilities. The Memorandum of Understanding with CLWA (SCWD) is expected to resolve these service area issues. The District commissioned an independent Water Supply Assessment which was formally accepted in December 2004. The report concludes that the projected available water supplies are adequate to meet and exceed future demands for the next twenty years, under all hydrologic conditions considered (normal, single dry and multiple dry years). Per District Resolution No. 2005-13, the District is aware that meeting water demands during single and multiple dry years, starting in approximately year 2010, and normal years starting in approximately 2020, will require that the proposed additional water supplies be actually available to provide sufficient reliability. The Water Supply Assessment now serves as the principal basis for District planning. 2) Growth and Population The population projections provided by the Newhall County Water District differ from those provided by SCAG, particularly in the 2000 base year. The 2005 UWMP will include updated population projections for the region. 3) Financing Constraints and Opportunities The Newhall County Water District funds its Capital Improvement Program through infrastructure cost charges. In 2005, the District adopted a resolution establishing a reserve policy for both restricted and unrestricted reserves. 4) Cost-Avoidance Opportunities The Newhall County Water District uses the regional Urban Water Management Plan, master plans and its capital improvement program to identify cost avoidance opportunities. NCWD has agreements with SCWD and Valencia Water Company to provide service in areas where it does not have infrastructure or adequate capacity. The Water Supply Assessment prepared for and accepted by the District serves as the principal basis for District planning. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 5) Opportunities for Rate Restructuring The Newhall County Water District reviews rate annually and makes adjustments in relation to identified needs. Rates vary by service area. NCWD adopted an incremental tiered rate structure for residential customers that went into effect January 1, 2005. Within NCWD’s service area there are approximately 1,300 customers of SCWD and the Valencia Water Company which are paying property tax assessments for NCWD infrastructure. The number of affected properties may be reduced with SOI and boundary updates as recommended in the Santa Clarita Regional Comprehensive Water Study. 6) Opportunities for Shared Facilities The Newhall CWD shares the groundwater in the Saugus aquifer with other agencies in the Santa Clarita Valley during times of drought. No other opportunities to share facilities were noted by the District. 7) Government Structure Options The Newhall CWD anticipates changes to its service area and sphere of influence. Several specific annexations were noted and in prior years service was provided to developments without verification of the location of the property. In addition, NCWD, SCWD and Valencia Water Company have overlapping service boundaries. The November 2005 Santa Clarita Regional Comprehensive Water Study prepared for LAFCO should serve as the foundation for a comprehensive SOI update and annexation strategy in the Santa Clarita Valley. 8) Management Efficiencies The Newhall County Water District adopted a Strategic Plan in June 2005 that provides a framework for District policies, actions and projects which improves district management efficiencies. 9) Local Accountability and Governance The Board of Directors for the agency has established processes for ensuring local accountability and governance. District meetings are open and accessible to the public. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Waterworks District #36-Val Verde 1) Infrastructure Needs and Deficiencies Waterworks District #36 provides water service to an 11.7 square mile service area. Infrastructure needs are addressed through planning. The existing system provides service only for existing customers. Areas of potential growth within the District are at elevations that are higher than can be served by the existing system. The cost of infrastructure to serve new areas is funded by the developer. 2) Growth and Population No population growth projections were provided by the agency. Based on SCAG data population is expected to increase at a 5.5% annual growth rate, reaching an estimated population of 8,054 by 2020. 3) Financing Constraints and Opportunities The District is supplementing the funding of a new well with a rate increase that is effective for seven years. No financing constraints were noted. 4) Cost-Avoidance Opportunities Waterworks District #36 is managed by LACDPW which allows overhead cost savings and shared management with other County Waterworks Districts. 5) Opportunities for Rate Restructuring Waterworks District #36 increased rates in 2003 to supplement the District’s share in the cost of a new well. The District reviews rates as necessary to ensure that revenues and expenditures are balanced. 6) Opportunities for Shared Facilities Waterworks District #36 shares various facilities, equipment and staff with other entities managed by the LACDPW. 7) Government Structure Options There are areas within the District which may require future water service that cannot currently be served by Waterworks District #36. Cost avoidance opportunities might be realized through a change in service boundaries or in governmental structure. The November 2005 Santa Clarita Regional Comprehensive Water Study prepared for LAFCO should serve as the foundation for a comprehensive SOI update and annexation strategy in the Santa Clarita Valley. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 8) Management Efficiencies Waterworks District #36 is operated by the LACDPW which increases shared management and administrative efficiencies. 9) Local Accountability and Governance The Los Angeles County Board of Supervisors, as the governing body for LAWWD #36, has an extensive process for ensuring local accountability and governance. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Green Valley County Water District 1) Infrastructure Needs and Deficiencies The Green Valley CWD serves a limited area; it is restricted by ordinance to less than 500 meters. No issues were identified that would limit their ability to provide service over the next ten years. However, development in the areas outside their boundaries will continue to impact the apparent over-drafting of groundwater. 2) Growth and Population The Green Valley CWD has a current population of approximately 1,032; SCAG is projecting an annual growth rate of 9.6%. 3) Financing Constraints and Opportunities Financing appears to be adequate for current and future service provision. 4) Cost-Avoidance Opportunities The Green Valley CWD is providing efficient service and no cost avoidance opportunities were identified. 5) Opportunities for Rate Restructuring The Green Valley County Water District reviews rate annually. Connection fees have not changed since the District was formed. No opportunities for rate restructuring were noted. 6) Opportunities for Shared Facilities The Green Valley County Water district is geographically isolated and there are no opportunities to share facilities with other agencies. 7) Government Structure Options Green Valley County Water District is the only public water agency in the area; no government structure options were noted. 8) Management Efficiencies Green Valley County Water District monitors efficiency through its Consumer Confidence Reports, Source Water Assessment and annual audits. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 9) Local Accountability and Governance Green Valley County Water District is directed by a Board comprised of local residents. It maintains open communication with rate payers. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region Golden Valley Municipal Water District 1) Infrastructure Needs and Deficiencies The Golden Valley MWD serves 24 connections in the Gorman area. No information was provided regarding the District’s infrastructure needs, deficiencies or projected water demands, other than its one storage facility was built in 1965 and is in poor condition. Two proposed developments are being considered within the District’s service area, one including an annexation of 500 acres to the District. If these developments are approved, demand for water service will increase significantly. 2) Growth and Population Population is expected to increase at an annual growth rate of 10.8% with population reaching 348 in 2020. 3) Financing Constraints and Opportunities The Golden Valley MWD has responded effectively to past financial constraints and ended FY 2003- 2004 with a positive cash flow. The District has several outstanding loans related to infrastructure improvements and has restricted some cash assets specifically for long-term debt. 4) Cost-Avoidance Opportunities None were noted. 5) Opportunities for Rate Restructuring The Golden Valley MWD charges a flat rate to customers. The District raised rates in February 2004 to bring revenues into line with expenses and debt service requirements. 6) Opportunities for Shared Facilities The Golden Valley MWD is geographically isolated and there are no opportunities to share facilities with other agencies. 7) Government Structure Options Golden Valley MWD is the only public water agency in the area; no government structure options were noted. 8) Management Efficiencies The Golden Valley MWD has no employees but uses contractors and directors for the provision of service. The directors received a total of $28,750 for various services in FY 2002-2003. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region 9) Local Accountability and Governance The District is locally accountable through its elected board members and maintains open communications with rate payers. November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region APPENDIX A FIFTH APPELLATE COURT OPINION – FRIENDS OF THE SANTA CLARITA RIVER VS. CASTAIC LAKE WATER AGENCY November 23, 2005 – Final Los Angeles LAFCO Municipal Service Review Report Water Service – Santa Clara Region APPENDIX B MEMORANDUM OF UNDERSTANDING – NCWD AND CLWA (SCWD) November 23, 2005 – Final