Madera Irrigation District Final MSR

FINAL MADERA LOCAL AGENCY FORMATION COMMISSION MADERA IRRIGATION DISTRICT MUNICIPAL SERVICE REVIEW SEPTEMBER 2020 ADMIN DRAFT M I D ADERA RRIGATION ISTRICT M S R S UNICIPAL ERVICE EVIEW FOR PHERE OF I A NFLUENCE MENDMENT AND R P EORGANIZATION OF ROPERTY IN THE G F W D RAVELLY ORD ATER ISTRICT Prepared for: Madera Local Agency Formation Commission 200 West Fourth Street Madera, CA 93637 Contact Person: David Braun, Executive Officer Phone: (559) 675-7821 Consultant: 601 Pollasky Avenue, Suite 301 Clovis, CA 93612 Contact: Jerome Keene, Project Manager Phone: (559 ) 449-2400 Fax: (559) 435-2902 September 2020 Cover Photo Credit: Madera Irrigation District Website © Copyright by Quad Knopf, Inc. Unauthorized use prohibited. 200145 MADERA LOCAL AGENCY FORMATION COMMISSION Commissioners Andrew Medellin, City of Madera (Chairman) Max Rodriguez, County of Madera (Chairman Pro-Tem) Waseem Ahmed, City of Chowchilla J. Carol Graham, Public Member Tom Wheeler, County of Madera Brett Frazier, County of Madera Alternate Steve Montes, City Alternate Laura Young, Alternate Public Member Staff David Braun, Executive Officer Legal Counsel Doug Nelson, LAFCo Counsel Final Draft TABLE OF CONTENTS Acronyms and Abbreviations .................................................................................................................... iii SECTION 1 - Introduction ........................................................................................................................ 1-1 1.1 - Municipal Service Review Purpose .................................................................................................. 1-1 1.2 - Summary of Issues .................................................................................................................................. 1-1 1.3 - Scope of this MSR .................................................................................................................................... 1-5 1.4 - MSR Preparation, Review and Adoption Process ....................................................................... 1-5 1.5 - Required Topic Areas of Analysis ..................................................................................................... 1-5 1.6 - Assumptions Regarding Local Agency Structure ........................................................................ 1-7 1.7 - LAFCo Powers .......................................................................................................................................... 1-8 1.8 - Key Considerations and Goals ............................................................................................................ 1-9 1.9 - Services Comparison ............................................................................................................................. 1-9 SECTION 2 - Growth and Population Projections ............................................................................ 2-1 2.1 - Introduction .............................................................................................................................................. 2-1 2.2 - History of Madera Irrigation District .............................................................................................. 2-1 2.2.1 - Madera-Chowchilla Water & Power Authority .......................................................... 2-2 2.3 - History of Gravelly Ford Water District ......................................................................................... 2-2 2.4 - Groundwater Sustainability Plan ...................................................................................................... 2-2 2.5 - Planning and Growth Projections ..................................................................................................... 2-3 2.6 - Determinations ........................................................................................................................................ 2-6 SECTION 3 - Disadvantaged Unincorporated Communities ......................................................... 3-1 3.1 - Overview .................................................................................................................................................... 3-1 3.2 - Determinations ........................................................................................................................................ 3-3 SECTION 4 - Madera Irrigation District Service Review ................................................................ 4-1 4.1 - Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies. ................................................................................... 4-1 4.1.1 - Summary of Prior MSR ........................................................................................................ 4-1 4.1.2 - Madera Irrigation District Capital Improvement Plan (CIP) ................................ 4-1 4.1.3 - Irrigation Water Service ..................................................................................................... 4-4 4.1.4 - Plans for Future Services ................................................................................................... 4-5 4.1.5 - Determinations ...................................................................................................................... 4-5 4.2 - Financial Ability to Provide Services ............................................................................................... 4-8 4.2.1 - Summary of Prior MSR ........................................................................................................ 4-8 4.2.2 - Budget ........................................................................................................................................ 4-8 4.2.3 - Opportunities for Rate Restructuring ........................................................................ 4-11 4.2.4 - Determination ..................................................................................................................... 4-11 4 .3 - Status of, and Opportunities for, Cost Avoidance, and Shared Facilities ........................ 4-11 Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page i Final Draft 4.3.1 - Summary of Prior MSR ..................................................................................................... 4-11 4.3.2 - Cost Avoidance Opportunities ...................................................................................... 4-12 4.3.3 - Opportunities for Shared Facilities ............................................................................. 4-12 4.3.4 - Determinations ................................................................................................................... 4-12 4.4 - Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies. .............................................................................................................................. 4-12 4.4.1 - Organizational Structure/Governance ...................................................................... 4-13 4.4.2 - Determinations ................................................................................................................... 4-14 SECTION 5 - Sphere of Influence Review ............................................................................................ 5-1 5.1 - Sphere of Influence Overview ............................................................................................................ 5-1 5.1.1 - Present and Planned Land Uses ...................................................................................... 5-1 5.1.2 - Present and Probable Need for Public Facilities and Services ............................ 5-1 5.1.3 - Present Capacity of Public Facilities and Adequacy of Public Services ............ 5-2 5.1.4 - Existence of Any Social or Economic Communities of Interest ........................... 5-2 5.1.5 - Sphere of Influence Recommendations ........................................................................ 5-2 SECTION 6 - Bibliography ....................................................................................................................... 6-1 LIST OF FIGURES Figure 1-1 Regional Location ....................................................................................................................... 1-3 Figure 1-2 District Map ................................................................................................................................... 1-4 Figure 2-1 Planned Land Use Designations (General Plan) ............................................................. 2-5 Figure 3-1 Median Household Income (2018) ...................................................................................... 3-2 Figure 4-1 Capital Improvement Plan Project List .............................................................................. 4-2 Figure 4-2 Capital Improvement Plan Cost Schedule ......................................................................... 4-3 Figure 4-3 Existing Facilities in the Vicinity of the Subject Parcel ................................................. 4-6 FLiIgSuT rOeF 5 T-1A BPLrEoSp osed Sphere of Influence Madera Irrigation District ........................................... 5-4 Table 1-1 Current, Authorized and Latent Powers Matrix ............................................................ 1-10 Table 2-1 Madera County Growth Estimates ......................................................................................... 2-4 Table 4-1 District Operating Revenues, Operating Expenses, and N onoperating Revenues ........ ......................................................................................................................... 4-8 Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page ii Final Draft ACRONYMS AND ABBREVIATIONS ACO Non-routine Operating Expenditures ADA Americans with Disabilities Act AF Acre-Feet CAL FIRE California Department of Forestry and Fire Protection CalPERS California Public Employees Retirement System CIP Capital Improvement Program CKH Act Cortese-Knox-Hertzberg Local Government Reorganization Act CPUC California Public Utilities Commission CSA County Service Area CWRCB California Water Resources Control Board DAR Dial-A-Ride DIF Development Impact Fee DUCs Disadvantaged Unincorporated Communities EMS Emergency Medical Services FTE Full-time Equivalent FY Fiscal Year GPM Gallons per Minute IS Information Systems ISO Insurance Services Organization LAFCo Local Agency Formation Commission LMZ Landscape Maintenance Zone LOS Level of Service LTF Local Transportation Fund MAX Madera Area Express MCC Madera County Connection MCCC Madera Community College Center MCTC Madera County Transportation Commission MD Maintenance District MFD Madera Fire Department MGD Million Gallons per Day MID Madera Irrigation District MPD Madera Police Department MSR Municipal Service Review MVWC Madera Valley Water Company PCS Parks and Community Services PVC Polyvinyl Chloride SMD Southeast Madera Development Project SOI Sphere of Influence WWTP Wastewater Treatment Plant Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page iii Final Draft Introduction SECTION 1 - INTRODUCTION 1.1 - Municipal Service Review Purpose California Government Code Section 56430 requires the Madera County Local Agency Formation Commission (LAFCO) to conduct comprehensive service review of the municipal services provided in the county or other appropriate area designated by the commission. A Municipal Service Review (MSR) is a comprehensive assessment of the ability of existing local government agencies to effectively and efficiently provide municipal services to residents and users. The form and content of an MSR is specified by requirements in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) and in the State of California’s LAFCO MSR Guidelines, published in August 2003. The CKH Act requires all LAFCOs, including Madera LAFCO, to prepare an MSR for each of its incorporated cities and its special districts. The fundamental role of LAFCO is to implement the CKH Act, which was adopted into State law to encourage the logical, efficient, and most appropriate formation of local municipalities, service areas, and special districts. MSRs are to be completed every five years, and must be completed prior to, or in conjunction with, an update of a city or special district Sphere of Influence (SOI) or before LAFCO initiates any reorganization of the boundaries of a special district. This MSR was initiated by Madera LAFCo in the Winter of 2020 and is intended to provide Madera LAFCo with the necessary and relevant information related to the operations and management of the municipal service providers within the Madera Irrigation District’s proposed updated SOI in western Madera County. Madera LAFCO intends to review the local governing landscape for service delivery and make recommendations for each agency that promote orderly growth and development while preserving surrounding agricultural and 1op.2e n- sSpuamcem laandrys aosf wIsesllu. e s The Madera Irrigation District (District) spans across a large portion of western Madera County and the majority of the City of Madera. Madera County is located within the San Joaquin valley adjacent to the north of Fresno County and south of Merced County. Major highways in the area consist of State Route (SR) 41, 99, 145, and 152 (See Figure 1-1 and Figure 1-2). The 2018 American Community Survey estimated approximately 155,013 1 residents in Madera County . Developed areas within the County includes the City of Chowchilla, City of Madera, and several Census-designated places and Unincorporated Communities (U.S. Census Bureau ACS, 2020). The District offers irrigation water services to supply farmers within its District boundary. 1 Table DP05, ACS Demographic and Housing Estimates Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-1 Final Draft Introduction This report focuses on to facilitate a reorganization of a property owned by the District that currently is within the legal boundaries of the Gravelly Ford Water District (GFWD). The subject parcel is a 411-acre parcel (APN: 044-192-009) is subject to a Proposition 218 assessment for implementation of the GFWD Groundwater Sustainability Plan (GSP). The assessment was approved and the subject property, due to the fact that while owned by the District it is not within the District’s boundary, would be subject to pay the assessment pursuant to State law. Since the property is maintained by the District and does not actually receive service from GFWD, the District has consulted with GFWD and concluded that a reorganization of the property would be appropriate. The reorganization will be subject to LAFCo approval, which would require an MSR and SOI. The reorganization would entail detaching the subject property from GFWD, amending the Spheres of Influence of both GFWD and the District and subsequently annexing the property to the District. The overall District operations or the existing Sphere of Influence beyond the boundaries of the subject property is not part of review. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-2 Final Draft Introduction Figure 1-1 Regional Location Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-3 Final Draft Introduction Figure 1-2 District Map Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-4 Final Draft Introduction 1.3 - Scope of this MSR Madera Irrigation District does not consider a comprehensive SOI as necessary and is satisfied with its current proposed service area as defined by the existing SOI. Therefore, the MSR and SOI recommendations will not be a comprehensive of the entirety of the District. The reorganization will only pertain to the review and discussion of the detachment from GFWD and annexation of the subject parcel to the District’s SOI, in accordance with CKH and Madera LAFCo policies. The subject parcel and associated District boundaries are shown in Figure 1-2. The objective of the MSR and SOI review would be to provide a summary of any past findings as well as conduct a new, independent review as it relates to the current state of operations 1an.4d s- eMrvSicRe Pderleivpearrya ttoi othne, sRuebvjeiectw p raonpde rAtyd. o ption Process The process of developing the MSR began with the collection of planning and budgetary documents and other records related to the provision of municipal services of each service provider. The Draft MSR was prepared utilizing the gathered data from the District and LAFCO sources. A public meeting was held at the Madera County Government Center on XXXXXXXXX, to receive feedback regarding the Draft MSR. No comment letters were received by staff prior to the workshop, therefore only verbal comments received at the meeting were incorporated in the Final MSR. A noticed hearing was scheduled at the Madera County Government Center on XXXXXXXXXX, where comments from the public and adoption of the Final MSR, including its Determinations and Recommendations, could be considered. After input and comment from 1th.5e p-u Rbeliqc,u thiree Cdo Tmompiicss Aiorne aapsp orofv Aedn athlyes Fiisn al MSR. This MSR contains analysis and conclusions, referred to as determinations, regarding six topic areas as set forth in the CKH Act. These areas of analysis focus on the essential operational and management aspects of each service provider, and together constitute a complete review of the ability of the providers to meet the service demands of the residents and businesses within the Madera area. The six topic areas used for analysis in this MSR are as foll ows: 1. Growth and Population Projections Service efficiency is linked to a service provider’s ability to plan for the future needs of an agency while also meeting existing service demands. This section reviews projected service demands and needs based upon existing and anticipated growth patterns and population projections. This is found in Section 2 - Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-5 Final Draft Introduction Growth and Population Projection s. 2. The Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence Unincorporated disadvantaged communities, as defined by Water Code Section 79505.5, may lack basic infrastructure, such as water, sewer, or fire protection, because they may have been overlooked during the comprehensive land use planning process due to their socioeconomic status. To promote equality and environmental justice in accordance with adopted local policy and Senate Bill 244, which was adopted in 2011, the proximity of any disadvantaged community to existing service providers is analyzed and discussed in order to determine if the community should be included in the SOI of the District. This is found in Section 3 - Disadvantaged Unincorporated Communitie s 3. Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies Infrastructure can be evaluated in terms of condition, capacity, availability, quality and relationship to operational, capital improvement and finance planning. This section assesses the adequacy and quality of the service providers’ physical infrastructure, and analyzes whether or not sufficient infrastructure and capital are in place (or planned for) to accommodate planned future growth and expansions. This information is found within each agency’s section of the report. 4. Financial Ability to Provide Services This section analyzes the financial structure and health of the district with respect to the provision of services. Included in this analysis is the consideration of rates, service operations, and the like, as well as other factors affecting the District’s financial health and stability, including factors affecting the financing of needed infrastructure improvements and services. Compliance with existing State requirements relative to financial reporting and management is also discussed. This information is found within each agency’s section of the report. 5. Status of, and Opportunities for, Shared Facilities Practices and opportunities that may help to reduce or eliminate unnecessary costs are examined in this section. Occurrences of facility sharing are listed and assessed for efficiency, and potential sharing opportunities that would serve to better deliver services are discussed. This information is found within each agency’s section of the report. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-6 Final Draft Introduction 6. Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies This section addresses the adequacy and appropriateness of the agency’s existing boundaries and sphere of influence, and evaluates the ability of the district to meet their service demands under their existing government structure. Also included in this section is an evaluation of compliance by the agency with public meeting and records laws. This information is found within each agency’s section of the report. Furthermore, according to Madera LAFCo policy 4.19, prior to annexation to a city or special dist•r ict, the petitioners shall demonstrate: • • That the need for governmental services exists; • That the annexing agency is capable of providing service; That a plan for service exists; and That the annexation is the best alternative to provide service. Growth and Population Projections are covered in Section 2 and Disadvantaged Unincorporated Communities are covered in Section 3. The other three topic areas are 1co.6ve -r eAds wsuitmhipn tSieocntsio nR 4e.g Fainrdali ndget Leromcainla Atigonesn acnyd S rtercuocmtumreen dations are made in Section 5. Every agency provides municipal services a little differently. There are different types of agencies that are each allowed to provide a different mix of services (See Table 1-1 for District provided services). Some communities have only one city or special district and others have many. Sometimes the areas may overlap or receive services from multiple agencies. Madera LAFCo begins this analysis with a number of assumptions that are based on the preamble of the CKH Act. The preamble of the CKH Act contains a number of legislative findings and declarations that serve as a general guide for LAFCos and their purpose for being. The first and main declaration is that: It is the policy of the state to encourage orderly growth and development, which are essential to the social and economic well- being of the state. The legislature goes on to make further declarations in CKH Section 56001 about how the determination of orderly local government boundaries is important to orderly growth and development. The legislature also makes the following declarations in Section 56001. This is an appropriate place to begin the discussion of service provision in the Madera area: The legislature finds and declares that a single multipurpose governmental agency is accountable for community service needs and Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-7 Final Draft Introduction financial resources and, therefore, may be the best mechanism for establishing community service priorities especially in urban areas. Nonetheless, the legislature recognizes the critical role of many limited purpose agencies, especially in rural communities. The legislature also finds that, whether governmental services are proposed to be provided by a single-purpose agency, several agencies, or a multipurpose agency, responsibility should be given to the agency or agencies that can best provide government services. The main issue to be addressed in this MSR is to determine what organization of local government structures and service providers can best provide adequate services as it relates to the subject parcel. Once that is determined by LAFCo, then questions of SOI and boundary 1ch.7an -g LeA reFcCoom Pmoewndeartsio ns can be answered. LAFCo has the power to determine the SOI for the Madera Irrigation District. An SOI is a plan for the probable physical boundaries and service area of a local agency. It is represented by a boundary line on a map. This boundary line shows the territory that is expected to eventually be within the agency’s boundary, as determined by LAFCo. It is by this method that LAFCo makes policy statements about its intent for the future probable boundaries of a District. If LAFCo chooses to not adopt an SOI for a city of district, meaning that it chooses to adopt a "zero" sphere, then it is making the policy statement that its plan is for that agency to eventually be consolidated into another district. The preparation of an MSR is required prior to the amendment of a city or district's SOI. After the MSR is complete, and any SOIs have been modified, Madera LAFCo has the power to initiate changes of organization to reorganize and/or consolidate the districts. However, final approval of any change to district boundaries rests with the registered voters within the affected area being reorganized. If 50 percent or more of the registered voters provide LAFCo with a written protest of the reorganization, then it fails to be adopted. If 25 percent to 50 percent of registered voters provide a written protest, then the question of the reorganization is placed on the ballot of the next regularly scheduled election for voter approval. If less than 25 percent of registered voters provide a written protest to LAFCo, then LAFCo’s approval of the reorganization would stand. Since the final determination of a reorganization of district boundaries rests with the people in the district being reorganized, LAFCo will likely want to see evidence that the people support the change before LAFCo approves it, and may want the citizens living within the districts to take the lead in proposing specific changes. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-8 Final Draft Introduction 1.8 - Key Considerations and Goals The MSR will use the following goals to evaluate the potential government structure options fo r the Madera area: 1. Efficient provision of municipal services. The ultimate goal of the preferred governance structure should be an efficient operating structure and stable fiscal basis required to effectively provide municipal services to the Madera area. 2. Adequate revenue sources. The ability to provide municipal services at adequate levels hinges upon stable revenue streams linked to the services for which the revenues are being collected. 3. Proactive approach to governance structure. Government agency reorganization proposals (e.g., municipal incorporations, major annexations, etc.) are necessarily complex procedures requiring substantial effort on the part of proponents, LAFCo and the affected agencies. These reorganizations are often more complex when contemplated on a reactive basis rather than a proactive basis. An understanding of a long-range approach to reorganization will assist in evaluating specific proposals to determine if they will bring the community closer to the desired end result. 4. Avoidance of intergovernmental conflicts, competition, or issues. Conflicts between local jurisdictions over control and other impacts across jurisdictions and competition for resources (e.g., fiscal revenue generators) often consume resources and weaken incentives to cooperate on important regional issues like transit service, water quantity and quality, air quality, and habitat conservation. 5. Local preference. There is often more than one feasible government structure that can potentially provide local municipal services. The residents and businesses of the community must have the opportunity to participate in choosing the method, especially since a governmental structure change will likely require some sort of election process for it to be implemented. Local preference also may include agreements made between local agencies regarding where and how growth and development may occur within a region. These agreements have been identified within CKH as important for consideration during the MSR and SOI update process. The Commission “shall give great weight to the agreement to the extent thaitt is consistent with [LAFCO} commission policies … (emphasis added)” (Government 1.9C -o Sdee r§v5i6c4e2s5 C(bo)m). parison The services that State law allow of a special district to provide vary. Some Districts are only allowed to provide a very narrow range of services, while others can provide a wide range o f services. Table 1-1 illustrates the services that the District can provide. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-9 Final Draft Introduction The matrix in Table 1-1 specifies whether the services that can be provided are being provided now, are authorized but not being provided, or are latent. Provides - means that the agency is authorized by LAFCo and State law to provide the service and that the service is currently being provided. These services may continue to be provided by the district at their discretion. Authorized - means that the agency is authorized by LAFCo and State law to provide the service, but this service is not currently being provided by the district. The district has the authorization it needs from the State and LAFCo to begin providing these services at their discretion. Latent - means that the agency is authorized by State law to provide the service, but districts are first required to gain LAFCo approval before it may begin providing the service. The process to gain LAFCo approval is described in CKH Section 56824.10 et seq. It is similar to an annexation process, requiring an initiating resolution from the district, followed by LAFCo approval after a public hearing. A blank box - this means that State law does not allow that agency to provide that service. These services, if needed, would have to be provided directly by Madera County or by another agency that is authorized to provide the service. Table 1-1 Current, Authorized and Latent Powers Matrix Municipal Service Provided Madera Irrigation District Gravelly Ford Water District Irrigation Water Supply Provides Provides Irrigation Water Distribution Provides Provides Groundwater Management Provides Provides Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 1-10 Final Draft Growth and Population Projections SECTION 2 - GROWTH AND POPULATION PROJECTIONS 2.1 - Introduction The purpose of this section is to evaluate service demand based on existing and anticipated growth patterns and population projections. Since the District does not provide service to the overall populace, the growth of the population would not directly impact the District. Therefore, statistics and projections from the County of Madera will be used in order to derive the population that could be within the District. The MSR Guidelines call for LAFCo to determine historic and projected growth and absorption patterns in relationship to a service provider’s boundaries and SOI. In addition, LAFCo is tasked with evaluating the impact and compatibility of such growth on and with land use plans, services, local government 2st.r2u c-t Huriesst oarnyd ogfr oMwathd epraatt eIrrrnisg. ation District The Madera Irrigation District (District) is a public agency, established by the State legislature as a Special Act District. District was formed in 1920 and originally consisted of approximately 350,000 acres. The formation was the effort of a 40-member committee organized to bring water to the Madera area. It is governed by a five-member Board of Directors who are elected at large but who must reside within the division they serve. The District purchased a site for Friant Dam and filed for water rights with the State Water Authority. This effort was not successful and the District contracted with the United States Bureau of Reclamation (USBR). This contract granted the District a guaranteed water supply of a maximum of 270,000-acre feet per year, for an area of 172,000 acres (Madera Irrigation District, 2020). Since the formation of the District, the boundaries have been changed a number of times. In 1950, approximately 46,000 acres were detached from the District to permit the formation of the Chowchilla Water District reducing the gross area to 112,500 acres, of which 94,500 acres was irrigable area. In 1975, the District added 15,000 acres as required by a contract with the Bureau that provided 24,800-acre feet on average from Hidden Dam. In 1983, the District joined the Mid Valley Water Authority in an effort to obtain additional water supplies for the District. Currently, the District distributes water in a 140,000 acres District boundary of prime agricultural lands. The District primarily operates a gravity irrigation distribution system with approximately 300 miles of open flow canal systems as well as 150 miles of large diameter pipelines (Madera Irrigation District, 2019). The District has a Central Valley Project repayment contract with the United States Bureau of Reclamation (USBR) providing up to 85,000 acres fee of Class 1- and 186,000-acres feet (AF) of Class 2 water per year from the Friant Division (Millerton Lake). Under the Hidden Unit contract, the average annual supply available to the District is approximately 24,000 AF per year (Madera Irrigation District, 2020). Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-1 Final Draft Growth and Population Projections The District’s water supply derives from multiple sources including water rights on the Fresno River and water service contracts for water from the Friant Division and the Hidden U2n.2it. 1of -t hMeA CDeEnRtrAa-Cl VHaOlWleyC HPIrLoLjAe cWt. A TER & POWER AUTHORITY The District entered into a joint powers agreement with the Chowchilla Water District to form the Madera-Chowchilla Water & Power Authority (MCWPA). The Authority is administered by the Board of Directors of each District. The Authority handles electrical generation projects that are to be shared between the two districts equally and the 2op.3e r-a Htioisntso arnyd o mf aGinratevnealnlyc eF oofr dth eW Maatdeer rDa iCsatnriaclt ( Madera Irrigation District, 2017-2019). The Gravelly Ford Water District (GFWD) was formed in 1962 pursuant to the California Water Code (Section 20000 et. seq.). The District serves approximately 8,400 acres (26 farms) of unincorporated Madera County territory generally situated between Avenue 4 and Road 20. Of the 8,400 acres, 7,500 acres are irrigated agriculture. In 1981 a Class II water contract was executed with the United States Bureau of Reclamation. This contract provides the District with an allotment of 14,000 ac. ft per year. Water is also purchased from the Madera Irrigation District in certain years. In 1982, GFWD purchased bonds issued for the construction of a distribution system and the first water deliveries were made. A water delivery system was constructed in 1984, allowing surface water to supplement its use of groundwater and water from Cottonwood Creek. Land was purchased and a percolation pond was constructed in 2004. GFWD also contracts for surface water for agricultural uses with MID in certain years and distributes it to customers throughout its territory. GFWD’s distribution system consists primarily of the Gravelly Ford Canal, which extends from the San Joaquin River to Cottonwood Creek. The District receives only Class 2 water. Small connecting pipelines are used to deliver water to metered turnouts. The unlined canal allows for groundwater recharge by percolation of water into the underlying sandy soils. GFWD operates under Bureau of Reclamation requirements, which provides management parameters including policies, directives and standards, and delegations of authority. Collectively, these management parameters assign program responsibility and authority, and document Reclamation-wide methods of doing business. The Bureau of Reclamation has changed billing practices over the past few years and now charges for the actual amount of 2w.a4t e-r G ursoedu nradtwheart tehra Sn uthseta tointaalb wilaittyer P allalontm ent (Gravelly Ford Water District, 2008). In September 2014, the California legislature passed the Sustainable Groundwater M anagement Act (SGMA), establishing new measures for groundwater management and Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-2 Final Draft Growth and Population Projections regulation statewide. SGMA provides for local control of groundwater resources while requiring sustainable management of the state’s groundwater basins. Under the provisions of SGMA, local agencies must establish governance of their subbasins by forming Groundwater Sustainability Agencies (GSAs) with the authority to develop, adopt, and implement a Groundwater Sustainability Plan (GSP, or Plan) for the subbasin. Under the GSP, GSAs must adequately define and monitor groundwater conditions in the subbasin and establish criteria to maintain or achieve sustainable groundwater management within 20 years of GSP adoption. The Madera Subbasin is identified by California Department of Water Resources (DWR) as a critically overdrafted basin. Therefore, the Madera Subbasin GSAs must develop, adopt, and submit a GSP (or GSPs) to DWR for the entire Madera Subbasin by January 31, 2020. The Madera Subbasin is managed by seven GSAs, of which four have developed a joint GSP and three have developed individual GSPs. This Madera Subbasin Joint GSP, together with the three individual GSPs, satisfies the requirements established by SGMA and DWR, and outlines the strategy by which the Madera Subbasin GSAs will achieve sustainable groundwater management by 2040. The District’s GSA was formed on March 31, 2016 and manages approximately 133,850 acres of the Madera Subbasin. As of 2015, the majority of this area is comprised of agricultural land (80 percent). Much of the remaining area consists of native vegetation (12 percent) or developed land (7 percent), including urban, semi-agricultural, and industrial land. A small 2po.5rt -io Pnl aofn tnhien GgS aAn isd a Glsroo cwotvher Pedro bjye cwtaiotenrs s urfaces (1 percent) (Madera Subbasin, 2020). The Madera County General Plan was adopted in 1995 by the Madera County Board of Supervisors to provide land use development decision-making guidance and to provide a planning framework for the development of more detailed implementation plans and measures. A map depicting these planned land use patterns is shown in Figure 2-1. Furthermore, the area outside of the incorporated Cities of Madera and Chowchilla is governed by the County of Madera. The vast majority of the area within the boundary of the District falls within the County’s jurisdiction. Thus, the majority of land and their respective land uses are governed by the County of Madera and the General Plan which was adopted in 1994. Since the District does not provide municipal services such as potable water or wastewater collection/disposal, then it is not abnormal that the District has not determined the estimated current or projected populations. For the purpose of the MSR, Madera County was used in order to determine a population estimate. The Demographic Research Unit is an arm of the Department of Financing and its purposes is to serve as the single official source of demographic data for state planning and budgeting. The data produced is integral due to it being used to establish appropriation limitations; distribute subvention funds, various federal program funds, wastewater treatment funds, and other state funds; allocate capital outlay funds; and aid in the planning and evaluation of Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-3 Final Draft Growth and Population Projections programs. State agencies and departments, local governments, the federal government, school districts, public utilities, the private sector, and the public use the Unit‘s demographic data (Department of Financing , 2018). In Table 2-1, the population estimates have been updated to account for the most recent population information available. However, anomalies or unforeseen events may occur over time that may spike growth in the County. Table 2-1 Madera County Growth Estimates Forecast Population Growth Population Growth Population Population Year Estimate % Estimate % Estimate Estimate (Madera (California) (Madera County (California) County) Housing Element) 2010 150,175 --- 37,367,579 --- 151,328 -- 2015 154,54 8 2.91% 39,055,383 4.52% 161,556 6.76% 2020 160,089 3.59% 40,129,160 2.75% 185,056 14.54% 2025 165,308 3.26% 41,176,614 2.61% 208,914 12.89% 2030 169,756 2.69% 42,263,654 2.64% 229,277 9.74% 2035 173,670 2.31% 43,195,083 2.20% 254,408 10.96% 2040 176,604 1.69% 43,946,643 1.74% 278,011 9.28% 2045 178,340 0.98% 44,497,568 1.25% 299,681 7.78% 2050 179,367 0.58% 44,856,461 0.81% 323,469 7.94% Notes: The Population estimate for the Housing Element uses the same source data Source: 2010-2060 Department of Finance County Population Projections The Department of Finance (DOF) has extrapolated population projects for Madera County from 2010-2060. For the purpose of the MSR population for the next 30 years were utilized. The DOF estimates that the current population for Madera County is 160,089. The DOF has calculated the population to be Countywide, meaning that it includes both municipalities (Chowchilla and Madera). The population estimates for Madera County approximate an average growth rate of 2.25 percent every five years. Furthermore, the growth of Madera County has a similar growth rate compared to the State of California, which was also estimated by the DOF (2.32 percent). The DOF estimates that the population would be 179,367 residents by the year 2050. The average Madera County growth rate is lower than what it has been historically. From 1930 to 1990, the annual average growth rate was 2.76 percent (Madera County, 1995). Madera County’s Housing Element includes a similar population projection, which provides a much more aggressive rate of growth and likely take into account development occurring in Eastern Madera county, which the state may have not been aware of when doing their population modeling The population data is sourced from the Department of Finance, however it far exceeds these population projections, as shown in Table 2-1 (Madera County, 2015). Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-4 Final Draft Growth and Population Projections Figure 2-1 Planned Land Use Designations (General Plan) Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-5 Final Draft Growth and Population Projections Alluded to previously, District’s primary function is to provide irrigation water services to agricultural land uses and does not directly or indirectly effect population growth. However, population growth can indirectly affect the District. As population increases, then agricultural land will be converted in order to sustain the new populace. Thus, the demand 2fo.r6 i r-r Digeattieornm winataetri oannds s upply will diminish as agricultural land conversions increase. Determination 2-1 – The primary land use authority for the Madera Irrigation District is Madera County. Determination 2-2 – The District should coordinate with local/regional agencies that have land use authority in order to best preserve prime farmland and the current services they receive. Determination 2-3 – Department of Finance data indicates that the County/District had an approximate 2010 population of 150,175, a 2020 population of 160,089, the current population is estimated at 160,089 and a population projection of 179,367 by 2050. The population projections depicted in the Housing Element far exceed the estimates projected by the Department of Finance, so determinations regarding population estimates should take into account multiple sources. Determination 2-4 –Present needs for public facilities and services are currently being met. Probable needs for public facilities and services are not currently anticipated to vary from present needs, as future demands are expected to remain relatively the same. Population increases are not currently anticipated to affect the District’s ability to provide services. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 2-6 Final Draft Disadvantaged Unincorporated Communities SECTION 3 - DISADVANTAGED UNINCORPORATED COMMUNITIES 3.1 - Overview Disadvantaged Unincorporated Communities (DUCs) are defined as inhabited territory (12 or more registered voters) that constitutes all or a portion of a community with an annual median household income of $60,181 which is less than 80 percent of the statewide annual median household income of $75,277 in 2018 (Department of Finance , 2018). These communities were identified as an area of concern by Senate Bill 244 that was adopted into State law in 2011. As defined by Water Code Section 79505.5, DUCs, may lack basic infrastructure, such as water or sewer as they may have been developed prior to infrastructure being installed in proximity to them. Fire protection is another service which needs to be reviewed in order to determine if these areas have adequate protection from the local service providers (California Legislative Information , 2002). Pursuant to State law, LAFCo is required to identify any adjacent DUCs and determine if they should be included within any SOI amendment of an existing city or special district or potentially included during the consideration of any special district formation in the future. Lastly, Madera LAFCo has not adopted a policy or more specific definition of DUCs, therefore, the criteria within State law will be utilized. As mentioned previously, the only service the District provides is irrigation water supply and distribution. Therefore, the District has no bearing on the services that play a role in the determination of a DUC. Thus, the alteration of the District’s boundary does not need to include any identified DUCs due to the fact that they will remain a DUC once incorporated. For reference, Figure 3-1, shows the approximate median household income per block group within Madera County. As illustrated in the map, the majority of households identified in within the District’s boundary are below the 80 percent of the state median household income. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 3-1 Final Draft Disadvantaged Unincorporated Communities Figure 3-1 Median Household Income (2018) Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 3-2 Final Draft Disadvantaged Unincorporated Communities 3.2 - Determinations Determination 3-1 - There are Census Block Groups within the Madera Irrigation District area that have a median household income below $60,181 (80 percent of the statewide median household income). Determination 3-2 – Madera Irrigation District does not provide domestic water, wastewater, or fire protection. Determination 3-3 – The majority of land within the District’s boundary falls below the 80 percentile of the State’s median household income. Determination 3-4 – The District does not provide any service that a DUC may be lacking, so therefore, although there are DUCs present within the district as well as within and adjacent to the SOI, no action is needed as the District does not provide domestic water, wastewater or fire protection services. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 3-3 Final Draft Madera Irrigation District Service Review SECTION 4 - MADERA IRRIGATION DISTRICT SERVICE REVIEW 4.1 - Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies. 4.1.1 - SUMMARY OF PRIOR MSR The District’s had determined that the water infrastructure appeared to provide efficient service. The infrastructure was appropriately sized for current, seasonal, and emergency water needs. The District has determined that the overall planning for future infrastructure appears adequate. The District also had been engaging in strategic planning for five-year h4o.1ri.z2o n- sM thArDoEuRgAh IcRaRpIiGtaAlT iImONp rDoIvSeTmRIeCnT tC pAlaPnITsA. L IMPROVEMENT PLAN (CIP) The District’s CIP includes projects that target the high and medium-high risk pipelines that have been identified by the risk model and projects that were included in the District’s capital plan prior to the asset risk assessment. The process used to develop to the CIP plan incl•u ded the following: • Prioritize projects using risk model results and existing District capital projects; • Develop construction costs for different types of projects, depending on delivery • method; • Quantify high and medium-high risk pipelines length and structure replacement; Develop cost estimates and construction duration for each project; and Schedule CIP projects by prioritization. Project prioritization depicts a list of projects that were developed and prioritized by District staff prior to development of the risk model. Construction costs were developed for two different types of projects, depending on location and delivery method. These types are: gravity pipe projects outside the city limits will be designed and constructed in-house by District staff and Projects within the City of Madera limits or that require specialty construction and engineering design were assumed to be delivered using a design-bid-build (DBB) delivery method with construction documents stamped by a registered Civil Engineer and approved by the City of Madera (Madera Irrigation District, 2019). Addressing the high and medium-high risk pipelines is anticipated to take approximately 10 years to complete. Figure 4-1 which illustrates Table 31 of the District’s CIP is the overall capital plan. Figure 4-2, that depicts Table 32 of the District CIP is showing the annual budget required to complete said projects. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-1 Final Draft Madera Irrigation District Service Review Figure 4-1 Capital Improvement Plan Project List Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-2 Final Draft Madera Irrigation District Service Review Figure 4-2 Capital Improvement Plan Cost Schedule Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-3 Final Draft Madera Irrigation District Service Review Types of Projects Since the CIP primarily categorizes projects with a risk assessment model, the majority of the projects identified within the District’s CIP are one of two types of projects, which are, pipeline removal or replacement of infrastructure. The District has been making pipeline repairs on an as needed basis using in-house crews and any rehabilitation and replacement Ppirpoejelicntse aRree mpaoidva fol r by the annual operations and maintenance (O&M) budget. Existing native material removed from the trench will be stockpiled on site and reused to the greatest extent possible. Existing non-reinforced concrete pipe will either by recycled or used as canal rip-rap. Techite pipe will be hauled offsite and disposed of (Madera Irrigation PDiipsterliicnte, 2 R0e1p9l)a. c ement At-risk pipes are typically replaced with high density polyethylene (HDPE) or reinforced concrete pipe. HDPE pipe is flexible, so it requires the overall trench section for strength, and it is important that the backfill is compacted properly to minimize the risk of pipeline structural failure. Per manufacturing recommendations, well-graded sand, gravels and gravel san mixtures with little or no fines are to be used as imported bedding material for installed HDPE pipe. Backfill material above the pipe bedding zone is assumed to be native s4o.i1l .(3M -a dIReRraIG IArrTiIgOaNt iWonA DTEisRt rSicEtR, V2I0C1E9 ). The District’s water and distribution system is a combination of open flow primary and secondary canals, enclosed conduit, and natural streams. There are approximately 300 miles of open flow canals and laterals, 150 miles of large diameter pipelines, and 102 miles of natural streams used for District conveyance and distribution. The District has a Central Valley Project (CVP) repayment contract with United State Bureau of Reclamation providing up to 85,000 AF of Class 1 and 186,000 AF of Class 2 water per year from the Friant Division (Millerton Lake). The CVP water is released from Millerton Lake through the Friant Dam and then conveyed through the Madera Canal for delivery into the District’s service area. The District also entered into a CVP repayment contract with the USBR for the yield from the Hidden Unit (Hensley Lake). From this contract, the average annual supply available to the District is approximately 24,000 AF per year. Furthermore, the District has Pre-1914 rights to divert from Big Creek (Big Creek Diversion) and the North Fork of Willow Creek (Soquel Diversion). The District also has Pre-1914 water rights on the Fresno River (Madera Irrigation District , 2020). The pipeline sizes range from 12 inches to 84 inches. The open flow laterals range in capacity from 5 cfs to 340 cfs. Many of the non-piped laterals have been in use for over 100 years. The m ajority of the distribution system is a gravity system. However, there are approximately Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-4 Final Draft Madera Irrigation District Service Review 1,600 turnouts, and about one-third are equipped with grower lift pumps in order to obtain adequate flow. There are no reservoirs or regulating reservoirs located within the District S(Meravdiceera A Svuabiblaabsiilnit, y2 020). Currently, there are no water conveyance facilities adjacent to the subject parcel. There is a GFWD owned structure onsite on the southwestern corner of the parcel and several GFWD canals along the perimeter of the parcel according to District GIS data. Also, Madera Irrigation District utilizes Cottonwood Creek Canal, which runs approximately 1,160 feet s4o.u1t.h4 o-f PthLeA NpSar FcOeRl, sFhUoTwURnE i nS EFRigVuICreE S4 -3. The majority of the District’s conveyance infrastructure was constructed over 50 years ago and is likely reaching the end of it design life. The District has been making pipeline repairs on an as-needed basis using in-house crews and any rehabilitation and replacements projects are paid for by the annual operations and maintenance budget (Madera Irrigation District, 2019). As mentioned in Section 4.1.2, with the use of a risk assessment model, the CIP has determined the facilities with the highest risk of failing and has scheduled allocated the necessary funds to construct these projects over the next 10 years (Figure 4-2). Furthermore, as depicted in Figure 4-3, none of the identified CIP projects are within the 4vi.c1in.5it y- oDf EtThEeR sMuIbNjAecTtIO pNaSr cel. The parcel is already owned by the District. Determination 4.1-1 - The District annually reviews its CIP during the budget preparation Determination 4.1-2 - The District’s water infrastructure appears adequate to provide efficient service. The infrastructure is appropriately sized for current, seasonal, and emergency water needs. Overall planning for future infrastructure appears adequate. The District engages in strategic planning through capital improvement plans. Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-5 Final Draft Madera Irrigation District Service Review Figure 4-3 Existing Facilities in the Vicinity of the Subject Parcel Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-6 Final Draft Madera Irrigation District Service Review Figure 4-4 CIP Planned Projects Madera Irrigation District MSR and SOI Amendment September 2020 Madera LAFCo Page 4-7 Final Draft Madera Irrigation District Service Review 4.2 - Financial Ability to Provide Services The District Board adopts an annual budget and oversees expenditures throughout the fiscal year. The District has annual audits conducted by a certified public accountant. Much of the City of Madera is within the boundaries of the District and provides approximately two percent of the District’s revenues through the assessment collections. The budget is adopted by the Board of Directors in December with assessment rate setting completed annually at the Board Meeting in June. The District has two main sources of income which consists of the sale of crop water delivered to its growers and benefit assessments on any property within the District boundaries. These assessments are levied upon the land within the District to provide funds necessary for the District to meet its financial obligations. The most recent audits provide an overview of the financial activities and transactions for the fiscal year 240.21.71-2 -0 S1U9M. MARY OF PRIOR MSR The District’s prior budget information indicated that the District implements appropriate financing and funding practices. The District has been considered solvent and is able to obtain necessary financing. The District also has the ability to generate additional revenue streams, separate from the sale of water, such as the Soquel electric generation revenues. I4m.2p.r2o v-e BmUeDnGtsE Tc an be financed by the District as needed. The District’s financial audits summary include analyzes the revenues, expenses, and how they ultimately affect the District’s Net Position fund at the beginning and end of each fiscal year. The statement of revenues, expenses and changes in net assets provide information regarding the District's operations and maintenance during the 2019-2017 fiscal year. The following tables provide a financial summary of the District’s total expenses for fiscal Oyepaerr a20ti1n7g –R 2e0v1e9n.u es Operating revenues consist of the annual assessments for both rural and city parcels (that are within the District boundaries). Revenues also consist of subordinate lands, water sales, refunds, PG&E/Soquel generation revenue and penalties and costs. Subordinate lands are lands that were annexed in the District at a later time. These lands are only assessed, the general assessment, the year following the year surface water is used. Total operating revenues for 2019 was $26,273,063, an increase of $4,076,743 over 2018 and an increase of $3,136,534 over 2017. The increase is primarily due to increased water sales and the increase rural property assessments. Table 4-1 depicts the change in operating revenue for the three fiscal years. Table 4-1 District Operating Revenues, Operating Expenses, and Nonoperating Revenues Madera Municipal Service Review September 2020 Madera LAFCo Page 4-8 Final Draft Madera Irrigation District Service Review Operating Revenues 2019 2018 (Restated) 2017 (Restated) Assessments: Rural $5,011,591 $4,923,742 $4,839,999 City $518,483 $512,106 $499,190 Subordinate Lands $701,679 $730,243 $695,393 Penalties and costs $21,248 $38,188 $34,199 Water sales $19,816,331 $15,686,902 $16,626,301 Refunds - $161,927 $172,964 Soquel electric $203,731 $143,212 $268,483 generation revenues Subtotal $26,273,063 $22,196,320 $23,136,529 Operating Expenses 2019 2018 (Restated) 2017 (Restated) (-) Water purchases -$7,342,676 -$9,522,746 -$9,121,754 Transmission and -$4,470,757 -$4,954,028 -$4,369,899 distribution General and -$2,600,501 -$2,735,318 -$2,632,671 administrative Depreciation and -$607,950 -$625,710 -$659,670 amortization Subtotal -$15,021,884 -$17,837,802 -$16,783,994 Non-operating 2019 2018 (Restated) 2017 (Restated) Revenues and Expenses (-) Madera-Chowchilla Water & Power Authority: Electric Generation $439,877 $336,738 $654,309 Revenue Power Projects -$292,336 -$226,923 -$291,147 Lease Payments Loss from Power -$116,587 -$68,698 -$52,765 Authority Gain from Friant $1,381,963 $991,740 $1,397,161 Power Authority Grant Revenue $758,048 $477,277 $28,484 Investment Income $525,021 $378,215 $138,140 Interest Expense -$2,359,762 -$2,457,964 -$2,523,186 Gain on Disposition $14,195 - $10,600 of Capital Assets Non-operating 2019 2018 (Restated) 2017 (Restated) Revenues and Expenses (-) Cont… Madera Municipal Service Review September 2020 Madera LAFCo Page 4-9 Final Draft Madera Irrigation District Service Review Miscellaneous -$375,485 -$368,133 $238,213 Income (expense) Rental of District - $10,268 $13,926 Equipment Long-Term $855,715 $664,857 $711,026 Agreements Land Lease Revenue $382,528 $397,080 $250,531 Subtotal $1,213,177 $134,457 $575,292 Net Position, $36,910,628 $32,417,653 $25,498,826 Beginning of Year Net Position, End of $49,374,984 $40,314,428 $32,426,653 1 Year Source: 2019 and 2018 Madera Irrigation District Financial Reports Operating Expenses Operating expenses consist of water purchases, transmission and distribution, general and administration, and depreciation and amortization expenses. The components of District water purchase expenses include payments to the USBR for Friant water for the capital repayments for the CVP, operations and maintenance of the CVP, delivery of Exchange Contractor water supplies and other incidentals involved with the transportation of water through CVP facilities to the District. Pursuant to the Water Supply Contracts, the District is entitled to receive Friant Class 1 water and Friant Class 2 water. The annual availability of this supply has historically from 1990 through 2010 been approximately 95 percent for the Class 1 water, and 20 percent for the Class 2 water (Madera Irrigation District, 2011). The District has a contract with the USBR requiring annual payment for Hidden Dam water. Transmission and distribution expenses decreased from 2018 to 2019 by $483,271. The Notohne-rO epxepreantsinegs dRied vneontu seig nificantly differ from previous years. The District also has non-operating revenues/expenses, which change year to year and include the sales of assets, interest expense, miscellaneous income (expense), long term agreements and equipment rentals. The largest values that fluctuate the most are the interest Rexapteens saens da nFde egasi n from Friant Power Authority. The District in keeping with its mission of obtaining and managing surface water and groundwater supplies to ensure the long-term viability of irrigated agriculture, works to keep the crop water rates to its growers affordable. By keeping the crop water rates affordable, the District hopes to encourage use of surface water to help preserve groundwater levels within the District. Madera Municipal Service Review September 2020 Madera LAFCo Page 4-10 Final Draft Madera Irrigation District Service Review The District had not increased its original, general assessment rates since the passage of Proposition 218 in 1996 which states that before a district can increase its rates, the request for increase must be voted on and passed by a majority of the landowners in the District. In 2011, the District had a Proposition 218 engineering report completed by a certified engineering firm to assess the need for increases in the assessments to assist with the financing of the contract with the USBR. The election passed March 2011, increasing the assessments. This approved increase in assessments is referred to as the 2011 assessment. Also included in the action was a provision which allows an increase of the 2011 assessment by 3 percent annually for a ten-year period. Thus, the annual 3 percent increase will take place until the year 2022. This increase is covenanted by the Water Revenue Refunding Bond, Series 2015. The 2011 assessment result in an additional $3.5 million in 2019 (Madera I4r.r2ig.a3t i-o On PDPisOtRriTcUt,N 2IT0I1ES7 -F2O0R1 R9)A. T E RESTRUCTURING Fees for water service within the District are directly related to the cost of producing and delivering water services. The District’s rates for services are based on an annual evaluation of water supply costs, the operation of the District and the cost of delivering water to the customers. This information is used to review and set service charges (Madera Irrigation District, 2017-2019). Operating revenue consists of agricultural water sales, annual assessments for both rural and city parcels in the District. Accordingly, the District imposes fees or rates for services that are directly related to the cost of producing and delivering such services, so as the D4i.s2t.r4ic t- gDrEoTwEsR, MthINeAnT sIOo Nw ill the cost for services. Determination 4-4 - The District should incorporate an inflation factor in all future rate or fees studies. Determination 4-5 – The District should consider coordinating a public outreach campaign to educate customers of the benefits received from the, assessments referred to as the, 2011 assessment in the event that the District plans to alter the assessment rates. Determination 4-6 - There are few opportunities for rate restructuring since the rates are primarily tied to the wholesale cost of water plus the District’s overhead and other costs. Since the District strives to keep rates at a reasonable price, the District should continue to 4lo.o3k - a St tparticues r oedf,u actniodn O mpepaosurtruesn tithiaets w fiollr n, oCto ismtp Aacvto tihdea fnincaen, caianl dst Sabhialitrye dof Fthaec Diliitsiterisc t. 4.3.1 - SUMMARY OF PRIOR MSR The majority of the District’s maintenance has been accomplished by District employees. Only when needed, the District has used outside consultants for engineering, legal, and Madera Municipal Service Review September 2020 Madera LAFCo Page 4-11 Final Draft Madera Irrigation District Service Review financial services and has contracts for outside labor and other services. A maintenance program for equipment and infrastructure has been put in place. No additional cost- a4v.3oi.d2a n- cCeO oSpTp AoVrtOuIDnAitNieCsE h OavPeP ObeReTnU NidITeInESti fied. The District appears to be well managed. As mentioned in the previous MSR, District maintenance is still accomplished by employees on a case-by-case basis. The District has a normal complement of 59 full-time employees. The District’s equipment and infrastructure is repaired or replaced as needed. Since the District cannot manage every project or task, the District will consult with outside consultants for a variety of services. A regular maintenance program for equipment and infrastructure is carried out by the District. Personnel training is ongoing, and safety training keeps the cost of Workman's Compensation Insurance at an affordable and consistent rate (4M.3a.d3e r-a O IrPrPigOaRtTioUnN IDTIiEsStr FicOtR, 2 S0H1A7R-2E0D1 F9A)C. ILITIES No new opportunities for shared facilities, shared staffing or equipment has been identified. Historically, the District has provided water to other Districts (for a fee) on an as-available b4a.3si.s4. A - lsDoE, TtEhReM DIiNsAtrTiIcOtN aSll ows other districts to utilize its canals and other delivery systems. Determination 4.3-1- MID participates in sharing facilities through system interconnections with the Gravely Ford Water District, Chowchilla Water District, and Madera Water District. MID has interconnected distribution systems with other water districts to create infrastructure redundancies and allow water supplies to be moved among agencies in an emergency. Determination 4.3-2 – The District may consider acquiring more technical staff or enter into a contract with a consulting firm in order to offset the cost of acquiring a technical consultant on an as-needed basis. Determination 4.3-3 – The District should continue the regular maintenance program for 4eq.4u i-p mAcecnot aunndt ainbfirlaitsytr ufcotru rCe oism camrruiendi toyu tS beyr tvhice eD isNtreiectd. s, Including Governmental Structure and Operational Efficiencies. As illustrated in Figure 1-2, the District’s boundary does not appear to overlap with the Gravelly Ford Water District boundary. Further research confirms that both District boundaries are adjacent to each other within the vicinity of the subject parcel. Therefore, the reorganization of the boundary will not include other property that may increase the size of th e proposed reorganization. The District’s sphere of influence does not cover the subject Madera Municipal Service Review September 2020 Madera LAFCo Page 4-12 Final Draft Madera Irrigation District Service Review parcel. It is currently within the GFWD’s boundary (see Figure 1-2). As the purpose of the MSR is to analyze the possible reorganization of the subject parcel, other Districts that MID may overlap with will not be analyzed. However, where overlapping, may occur, whether it includes a city or other urbanized area, the District still collects fees. No duplication of services occurs because of this overlapping. This section addresses the adequacy and appropriateness of the District’s existing boundary and sphere of influence, assesses the management structure and overall managerial practices of the District, and evaluates the ability of the District to meet its service demands under its existing government structure. Also included in this section is an evaluation of compliance by the District with public meeting and records laws. An examination of government structure should consider the advantages and disadvantages of various government structures that could provide public services. In reviewing potential government structure options, consideration may be given to service delivery quality and cost, regulatory or government frameworks, financial feasibility, operational practicality, a4n.4d .p1u -b lOicR pGrAeNfeIZrAenTIcOeN. AL STRUCTURE/GOVERNANCE Operating under the rules and regulations as laid out in the Irrigation Districts Act, the daily activities of MID are under the direction of a five-member Board of Directors (Board). Day- to-day operation of the District are the responsibility of the General Manager and the Assistant General Manager acting through the following described four departments (Ma•d era Irrigation District, 2017-2019): • • Administration Department, headed by the General Manager; Finance Department, headed by the Controller; • Operations, Maintenance and Engineering, headed by the Operations and Maintenance Manager; and Human Resources, headed by the Human Resources Administrator/Risk Manager. The five Directors of the Board are elected by the landowners in the District and they serve at their discretion. The Board’s role is to establish the District’s policies and goals; make major decisions on behalf of the District; employ, prescribe the duties of, and fix the salaries of the District’s agents, officers and employees pursuant to Section 21185; and oversee District management and organizational performance (Madera Irrigation District, 2020). The Board of Directors meet the third Tuesday of each month at the District office located at 12152 Road 28 1/4, Madera, CA 93637. The office location may be changed from time to time by the adoption of a resolution. The Board Secretary shall be responsible for preparing the regular meeting and special meeting notice/agenda for Board meetings, and posting it at the District office in a location freely accessible to the public at least 72 hours before each regular meeting and at least 24 hours before each special meeting. Each agenda must specify the time and location of the meeting and contain a brief general description of each item of Madera Municipal Service Review September 2020 Madera LAFCo Page 4-13 Final Draft Madera Irrigation District Service Review business to be transacted or discussed at the meeting. The District is in compliance the B4r.4ow.2n -A DctE. T(EMRaMdIeNrAaT IIOrrNiSg ation District, 2020). Determination 4.4-1 -The District should continue conducting open meetings in compliance with the Brown Act that allows for complaints and comments regarding services and potential conflicts or inefficiencies to be identified to the Board of Directors by residents. Determination 4.4-2 - The District should continue to utilize an organizational structure that obtains efficiency through Department Heads who oversee their respective divisions. Determination 4.4-3 - The District makes reports, documents, meeting agendas and other information available to the public that details operations and services provided by the District at the District Office as well as on its website. Determination 4.4-3 – The current District’s structure is efficient, transparent and meets expectation of the needs of the agricultural community with the resources available. Madera Municipal Service Review September 2020 Madera LAFCo Page 4-14 Final Draft Sphere of Influence Review SECTION 5 - SPHERE OF INFLUENCE REVIEW 5.1 - Sphere of Influence Overview The primary purpose in reviewing the District’s SOI was to evaluate if this boundary change is appropriate and necessary, determine if the District can feasibly provide well planned efficient services in this territory, and if the current location of the SOI will be a benefit to those that receive services and property owners in the area. As part of any Sphere of Influence review, LAFCo is required to consider all of the information presented in the Municipal Service Review conducted for that agency. Additionally, LAFCo must also make written statement of its determinations for that agency regarding the follow ing: 1. Present and planned land uses in the area; 2. The present and probable need for public facilities and services in the area; 3. The present capacity of public facilities and adequacy of public services that the agency is authorized to provide; and 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. After a written determination has been made with respect to the aforementioned areas of review, LAFCo may adopt a Sphere of Influence (SOI) that is appropriate for the agency’s provision of service. This section of the report fulfills the requirements of Government Code Section 56425 and allows LAFCo to adopt an SOI that is consistent with the written determinations for the M5.a1d.e1r a- aPrReEaS. ENT AND PLANNED LAND USES The proposed SOI amendment would not change the present agricultural land use currently operating within the subject parcel. Furthermore, the Madera County General Plan land use designation and zoning for the subject parcel will not change. The proposed SOI amendment will not convert prime farmland, unique farmland, or farmland of statewide importance to non-agricultural use. Thus, no significant adverse effects will occur on continuing agricultural operations on adjacent properties. The subject parcel and proposed SOI amendment are not within proximity to the City of Madera, therefore, any land uses changes will not affect the subject parcel or any parcels w5.i1th.2in -p ProRxEimSEiNtyT tAoN tDh eP sRuObBjeAcBtL pEa NrcEeElD l aFnOdR u PsUesB LoIrC e FxAisCtIiLnIgTI EuSse AsN. D SERVICES The District intends to amend its SOI to include the 411-acre subject parcel. Currently the District provides adequate services to its customers. The subject parcel will remain Madera Municipal Service Review September 2020 Madera LAFCo Page 5-1 Final Draft Sphere of Influence Review unirrigated land , so no infrastructure construction will be required as a part of this Dreisoargdavnainzatatigoend. . U nincorporated Communities The entire District covers a large expanse of Madera County and the City of Madera. The District also, only provides irrigation water supply and distribution services to agricultural properties. Therefore, the District has no bearing on the services that play a role in the determination of a DUC, since as depicted by the Water Code, a DUC may lack water, sewer, or fire protection services along with an annual median household income which is less than 80 percent of the statewide annual median household income. Thus, the alteration of the District’s boundary does not need to include any identified DUCs due to the fact that they will remain a DUC once incorporated. There may be DUCs within the SOI, however, given the fact that the District does not provide the appropriate services within those areas, DUCs should not be considered to be annexed i5n.t1o. t3h e- PDiRsEtrSiEcNt To rC aAdPdAeCdIT tYo O thF eP SUOBIL. IC FACILITIES AND ADEQUACY OF PUBLIC SERVICES Currently, the parcel is not being cultivated for agricultural uses, it is grazing land. The purpose of the proposed annexation is to incorporate the parcel, which is owned by the District, and to ultimately annex the property into its boundary. The likelihood that the parcel will need irrigation water services will be low. Accordingly, the District will not be r5e.s1p.o4n -s iEbXleIS fToErN pCrEo vOiFd AinNgY a Sn O“aCuIAthL oOrRiz EedC OpNuObMlicIC s eCrOviMceMsU” NoItThIEeSr tOhFa InN mTEaRnEaSgTi n g this territory. There are no communities of social and/or economic of interest within the vicinity of the proposed SOI amendment. The proposed amendment to the District SOI would require the District to amend its SOI boundary to include the subject parcel and GFWD to deduct the parcel from its boundary. These districts will not be negatively affected by the r5e.o1r.g5a n- iSzaPtHioEnR.E OF INFLUENCE RECOMMENDATIONS As shown in the MSR and throughout the determinations of this document, the District is currently providing services at an acceptable level to the property owners receiving its services. The District is accountable to the residents through the Board of Directors, which are elected at-large. It has conducted appropriate reviews of the infrastructure systems both through the CIP process as well as the risk assessment model that supplements data for the CIP. However, further review of the infrastructure, illustrates the aging of the majority of the District infrastructure network. Furthermore, the District continues on delivering budgets th at provide levels of service in various areas for its residential population. The District does Madera Municipal Service Review September 2020 Madera LAFCo Page 5-2 Final Draft Sphere of Influence Review not anticipate significant growth in the near future as also reflected by the CIP. The growth of the District can be extrapolated using County statistics, however, it must be noted that the District does not induce land use changes or provide municipal services to residents. Furthermore, It is imperative that infrastructure needs are forecasted, identified, and financed, prior to the need of said infrastructure. Due to the District utilizing a risk assessment model to forecast infrastructure needs, it will lower the probability of gaps in the level of service provided. The District is currently not at its capacity and therefore request to annex the subject parcel into its SOI. As mentioned previously, the subject parcel will be detached from GFWD and incorporated into the District’s service boundary. As a result of this reorganization, GFWD will not be negatively affected due to no services provided by GFWD are present at the subject parcel. Recommendation 5-1 – It is recommended that the Madera Irrigation District’s Sphere of Influence be amended as shown in Figure 5-1 to include the subject property. Recommendation 5-2 – It is recommended that the Gravelly Ford Water District’s Sphere of Influence be amended as shown in Figure 5-1 to remove the subject property. Madera Municipal Service Review September 2020 Madera LAFCo Page 5-3 Final Draft Sphere of Influence Review Figure 5-1 Proposed Sphere of Influence Madera Irrigation District Madera Municipal Service Review September 2020 Madera LAFCo Page 5-4 Final Draft Bibliography SECTION 6 - BIBLIOGRAPHY California Legislative Information . (2002, November 5)W. ater Code . Retrieved from http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=26.5.&cha pter=1.&lawCode=WAT Department of Finance . (2018, January 1)C. ensus Bureau's measure of money income . Retrieved from http://www.dof.ca.gov/Forecasting/Economics/Indicators/Income/ Department of Financing . (2018, December). Demographics. Retrieved from http://www.dof.ca.gov/forecasting/demographics/documents/DRU-Brochure.pdf Gravelly Ford Water District. (2008, January ). History. Retrieved from http://gravellyfordwaterdistrict.com/downloads/GFWD-History.pdf Madera County. (1995, October 24)P. lanning Forms and Documents. Retrieved from https://www.maderacounty.com/government/community-economic-development- department/divisions/planning-division/planning-forms-and-documents/-folder- 269 Madera County. (2015, December 2).H ousing Element 2016-2024. Retrieved from https://www.cityofmadera.ca.gov/wp- content/uploads/2015/11/MadHE_Adopted_12-02-15_Highlighted.pdf Madera Irrigation District . (2020)H. istory of MID . Retrieved from https://www.madera- id.org/about-us/history-of-mid/ Madera Irrigation District. (2011)E.n gineer's Report. Provost and Pritchard. Madera Irrigation District. (2017-2019)A. nnual Financial Statements. Retrieved from Finance Department: https://www.madera-id.org/departments/finance- department/ Madera Irrigation District. (2019)P.i peline Risk Assement and CIP Development. Carollo. Madera Irrigation District. (2019)P.i peline Risk Assessment and CIP Development. MID. Madera Irrigation District. (2020).D istrict By-Laws. Retrieved from Administration: https://www.madera-id.org/departments/administration/ Madera Irrigation District. (2020H). istory of MID . Retrieved from Madera Irrigation District: https://www.madera-id.org/about-us/history-of-mid/ Madera Subbasin. (2020, April).M adera Subbasin SGMA Joint GSP. Retrieved from https://www.maderacountywater.com/wp-content/uploads/2020/04/Madera- GSP-Annual-Report-FinalWFig-1.pdf Madera Municipal Service Review September 2020 Madera LAFCo Page 6-1 Final Draft Bibliography U.S. Census Bureau ACS. (2020, May 13)D. emographic and Housing Estimates - 2018 American Community Survey 5-Year Estimates . Retrieved from U.S. Census Bureau : https://data.census.gov/cedsci/table?q=madera%20county%20population&g=05 00000US06039&hidePreview=false&tid=ACSDP5Y2018.DP05&vintage=2018&lay er=VT_2018_050_00_PY_D1&cid=DP05_0001E Madera Municipal Service Review September 2020 Madera LAFCo Page 6-2