Water & Sewer Service Providers MSR

Final Report County of Merced Water and Sewer Service Providers Municipal Service Review Prepared for: Merced County Local Agency Formation Commission Prepared by: Economic & Planning Systems, Inc. In Association with: Berkson Associates As Approved by LAFCO September 17, 2020 Resolution No. 2020-1 EPS #171106 TABLE OF CONTENTS I. OVERVIEW OF THE MSR .............................................................................................. 2 METHODOLOGY .......................................................................................................... 2 II. SUMMARY OF FINDINGS ............................................................................................. 4 OVERVIEW OF SERVICE PROVIDERS ................................................................................... 4 MSR DETERMINATIONS ................................................................................................ 7 III. WATER AND WASTEWATER DISTRICTS ......................................................................... 15 BALLICO COMMUNITY SERVICES DISTRICT ......................................................................... 16 COUNTRY CLUB COUNTY WATER DISTRICT ......................................................................... 21 DELHI COUNTY WATER DISTRICT ................................................................................... 26 FRANKLIN COUNTY WATER DISTRICT ............................................................................... 32 HILMAR COUNTY WATER DISTRICT .................................................................................. 38 LE GRAND COMMUNITY SERVICES DISTRICT ....................................................................... 45 MIDWAY COMMUNITY SERVICES DISTRICT ......................................................................... 51 NORTH DOS PALOS WATER DISTRICT .............................................................................. 57 PLANADA COMMUNITY SERVICES DISTRICT ........................................................................ 62 SANTA NELLA COUNTY WATER DISTRICT ........................................................................... 66 SNELLING COMMUNITY SERVICES DISTRICT ........................................................................ 76 SOUTH DOS PALOS COUNTY WATER DISTRICT .................................................................... 81 VOLTA COMMUNITY SERVICES DISTRICT ........................................................................... 87 WINTON WATER AND SANITARY DISTRICT ......................................................................... 94 LIST OF TABLES AND FIGURES TABLE 1 SUMMARY OF WATER SERVICE PROVIDERS ................................................................. 11 TABLE 2 SUMMARY OF WASTEWATER SERVICE PROVIDERS ......................................................... 12 TABLE 3 AVERAGE MONTHLY WATER SERVICE RATES FOR TYPICAL SINGLE-FAMILY HOMES .................... 13 TABLE 4 AVERAGE MONTHLY WASTEWATER SERVICE RATES FOR TYPICAL SINGLE-FAMILY HOMES ............ 14 TABLE 5 BALLICO COMMUNITY SERVICES DISTRICT PROFILE ....................................................... 18 TABLE 6 COUNTRY CLUB COUNTY WATER DISTRICT PROFILE ....................................................... 23 TABLE 7 DELHI COUNTY WATER DISTRICT PROFILE ................................................................. 29 TABLE 8 FRANKLIN COUNTY WATER DISTRICT PROFILE ............................................................. 35 TABLE 9 HILMAR COUNTY WATER DISTRICT PROFILE ................................................................ 42 TABLE 10 LEGRAND COMMUNITY SERVICES DISTRICT PROFILE ...................................................... 48 TABLE 11 MIDWAY COMMUNITY SERVICES DISTRICT PROFILE ....................................................... 54 TABLE 12 NORTH DOS PALOS WATER DISTRICT PROFILE ............................................................ 59 TABLE 13 PLANADA COMMUNITY SERVICES DISTRICT PROFILE ....................................................... 63 TABLE 14 SANTA NELLA COUNTY WATER DISTRICT PROFILE ......................................................... 72 TABLE 15 SNELLING COMMUNITY SERVICES DISTRICT PROFILE ...................................................... 78 TABLE 16 SOUTH DOS PALOS COUNTY WATER DISTRICT PROFILE .................................................. 84 TABLE 17 VOLTA COMMUNITY SERVICES DISTRICT PROFILE ......................................................... 90 TABLE 18 WINTON WATER AND SANITARY DISTRICT PROFILE ....................................................... 97 FIGURE 1 BALLICO COMMUNITY SERVICES DISTRICT BOUNDARY AND SPHERE OF INFLUENCE .................... 19 FIGURE 2 SPHERE OF INFLUENCE OF COUNTRY CLUB COUNTY WATER DISTRICT ................................... 24 FIGURE 3 SPHERE OF INFLUENCE OF DELHI COUNTY WATER DISTRICT ............................................. 30 FIGURE 4 SPHERE OF INFLUENCE OF FRANKLIN COUNTY WATER DISTRICT ......................................... 36 FIGURE 5 SPHERE OF INFLUENCE OF HILMAR COUNTY WATER DISTRICT ............................................ 43 FIGURE 6 SPHERE OF INFLUENCE OF LE GRAND COMMUNITY SERVICES DISTRICT ................................. 49 FIGURE 7 SPHERE OF INFLUENCE OF MIDWAY COMMUNITY SERVICES DISTRICT ................................... 55 FIGURE 8 SPHERE OF INFLUENCE OF NORTH DOS PALOS WATER DISTRICT ........................................ 60 FIGURE 9 SPHERE OF INFLUENCE OF PLANADA COMMUNITY SERVICES DISTRICT .................................. 64 FIGURE 10 SPHERE OF INFLUENCE OF SANTA NELLA COUNTY WATER DISTRICT ..................................... 73 FIGURE 11 SPHERE OF INFLUENCE OF SNELLING COMMUNITY SERVICES DISTRICT ................................. 79 FIGURE 12 SPHERE OF INFLUENCE OF SOUTH DOS PALOS COUNTY WATER DISTRICT .............................. 85 FIGURE 13 SPHERE OF INFLUENCE OF VOLTA COMMUNITY SERVICES DISTRICT ..................................... 91 FIGURE 14 SPHERE OF INFLUENCE OF WINTON WATER AND SANITARY DISTRICT ................................... 98 ABBREVIATIONS AND ACRONYMS CIWQS .............................................. CALIFORNIA INTEGRATED WATER QUALITY SYSTEM PROJECT COUNTY ................................................................................................. MERCED COUNTY CSD ...................................................................................COMMUNITY SERVICES DISTRICT CU FT, CF ................................................................................................... CUBIC FEET CWD ......................................................................................... COUNTY WATER DISTRICT DAC ...................................................................................... DISADVANTAGED COMMUNITY DUC ................................................................ DISADVANTAGED UNINCORPORATED COMMUNITY DWR .............................................................. CALIFORNIA DEPARTMENT OF WATER RESOURCES EPS ........................................................................... ECONOMIC & PLANNING SYSTEMS, INC. GPD ................................................................................................... GALLONS PER DAY GPM ............................................................................................... GALLONS PER MINUTE GSA ......................................................................... GROUNDWATER SUSTAINABILITY AGENCY GSP ............................................................................ GROUNDWATER SUSTAINABILITY PLAN HCF ............................................................................................... HUNDRED CUBIC FEET MGD ........................................................................................ MILLION GALLONS PER DAY MSR ....................................................................................... MUNICIPAL SERVICE REVIEW SGMA ........................................................... SUSTAINABABLE GROUNDWATER MANAGEMENT ACT SOI ................................................................................................S PHERE OF INFLUENCE SWRCB .................................................. CALIFORNIA STATE WATER RESOURCES CONTROL BOARD NOTE A version of this report titled "Public Review Draft" was approved by LAFCO on September 17, 2020. The changes that have been made to this version are limited to updating the report's title to read "Final Report" and including information included in the Executive Officer's Report and discussed at the Commission hearing from the City of Dos Palos concerning the Midway Community Services District, the North Dos Palos Water District and the South Dos Palos County Water District. A technical correction was also made concerning the Santa Nella County Water District to correctly reference the items cited in a footnote at the bottom of Page 70 of the Draft version of the Report. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 I. Overview of the MSR Page 2 I. OVERVIEW OF THE MSR State law requires that LAFCOs conduct regional studies of municipal services (Municipal Service Reviews, or MSRs) every five years in conjunction with reviews of city and district spheres of influence (SOIs).1 The Commission may assess various alternatives for improving efficiency and affordability of infrastructure and service delivery within and contiguous to the agencies SOI, including, but not limited to, the consolidation or dissolution of governmental agencies, and modification to the SOI boundary. MSRs provide a tool for LAFCOs to evaluate the adequacy of public service providers, improve the organization and provision of services, and inform updates of agencies’ SOIs. MSRs support LAFCOs’ mission to plan and shape “the logical and orderly development and coordination of local governmental agencies.”2 METHODOLOGY Merced LAFCO retained Economic & Planning Systems, Inc. (EPS) to update the MSRs for water and sewer service providers in Merced County originally prepared in 2007.3 Each provider was contacted and requested to provide information and documents such as master plans, budgets, and maps. EPS, in coordination with LAFCO staff, prepared draft profiles for each agency. The profiles and determinations were submitted to each agency for review. The districts’ comments were incorporated into a Public Review Draft MSR. Chapter 2 provides an overview of water and wastewater services and issues in the County organized by required determinations, highlighting key findings of LAFCO concern. Chapter 3 provides an analysis of each agency, which includes a review of “Governance and Operations,” “Infrastructure, Facilities, and Services”, and “Demand and Capacity”, followed by conclusions about the individual agency, listed under the required determinations. In four cases, EPS was unable to contact a representative of the district or obtain information about the district. In order to complete the MSR for those entities, EPS relied on information from State Water Resources Control Board websites, monitoring reports, Groundwater Sustainability Agency websites, State Controller’s Office, as well as press reports of violations. Sphere Reports, when available, provided basic information the governing structure and history of the respective Districts in the absence of complete responses to MSR data requests. Environmental Impact Reports, completed in 2016 through 2019 for the Planada Community Plan and Le Grand Community Plan updates, informed the respective sections. Additionally, information regarding the Midway Community Service District and South Dos Palos County Water District was obtained from 1 Government Code Section 56425 directs LAFCOs to review and update agencies’ SOIs, as necessary, every five years, and Section 56430 requires MSRs to be conducted before or in conjunction with the sphere updates. 2 Government Code Section 56425. 3 County of Merced Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), as Approved by LAFCO May 24, 2007. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 I. Overview of the MSR Page 3 the City of Dos Palos, with whom the districts have a Joint Powers Authority for water and sewer services. In accordance with State law, entities that did not provide information sufficient to complete their MSR and determinations will not be allowed to obtain LAFCO approval for various actions, e.g., SOI amendments, unless and until their MSRs are completed. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx II. SUMMARY OF FINDINGS The following is an overview of water and wastewater issues and services in the County. Required determinations are defined, and key findings of LAFCO concern are highlighted. Beginning with Chapter 3, each agency is analyzed, profiled, and its determinations are listed. OVERVIEW OF SERVICE PROVIDERS Merced County has a total of fourteen active independent water and/or sewer districts, each of which is governed by its own Board of Directors. There is one “inactive” district, the Celeste County Water District, which LAFCO is in the process of dissolving and is not included in this current MSR update. Of the fourteen active districts, eight districts provide both water and wastewater services, two provides wastewater services only, and four provide water services only. District service areas and population, connections, and capacity are summarized in Tables 1 and 2. As shown, the districts vary widely in size and service population, with the total number of connections among responding districts ranging from 23 to nearly 3,000. Many districts receive the majority of their operations funding from water and/or wastewater service fees. As shown in Table 3, water rates are typically charged on a tiered basis, with a flat base rate charged for water usage up to a certain level and additional per-gallon fees for water usage above that level. In most cases, wastewater service customers pay only a monthly flat fee, however, some districts charge tiered fees based on usage (see Table 4). GOVERNMENTAL STRUCTURE All ten of the districts that returned an interview response to EPS are structured with a governing Board of Directors. The Santa Nella County Water District and Volta Community Service District have been investigating consolidation of their districts under the State Water Resources Control Board’s program to help struggling water systems in disadvantaged communities under SB 88. Recent changes in the analyte chromium water quality standards has postponed or potentially terminated this consolidation. The current improved governance of the Volta CSD and its ability to meet new State analyte chromium water quality standards has terminated the State’s participation in the consolidation. Without State funding for required infrastructure connections between the two districts, the consolidation is unlikely to move forward. The Celeste County Water District is currently considered an “inactive” district as all its services are provided by the City of Merced. LAFCO is in the process of dissolving the district and it is not included in this report. Accountability On September 14, 2018, the Governor signed SB 929 which added Government Code Section 6270.6 and 53087.8 which required that every independent special district in California maintain a website by January 1, 2020. Exceptions can be made by districts facing hardship, as adopted by Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 5 majority vote of those districts’ governing boards. The intent of the bill is to provide the public easily accessible and accurate information about the district.4 AB 2257, approved on September 9, 2016, requires district and governmental websites to include Board meeting agendas for all meetings occurring on or after January 1, 2019.5 Currently, only six districts maintain websites:  Franklin County Water District: www.fcwd.myruralwater.com  Hilmar County Water District: www.hilmarcwd.org  Santa Nella County Water District: www.sncwd.com  Volta Community Services District: www.voltawater.com  Winton Water and Sanitary District: www.wintonwsd.com  Delhi County Water District: www.delhicwd.org In an effort to encourage special districts to establish websites, Merced LAFCO co-hosted a training and demonstration with the California Special Districts Association (CSDA) on December 4, 2019. Groundwater Sustainability Issues Effective January 1, 2016, the Sustainable Groundwater Management Act (SGMA) established a new structure for managing California’s groundwater resources at the local level by local agencies. In the State’s high and medium priority basins and subbasins, SGMA required the formation of Groundwater Sustainability Agencies (GSAs) by June 30, 2017. Thereafter, the GSAs were tasked to develop local Groundwater Sustainability Plans (GSPs) that identify how groundwater resources will be sustained into the future and adopt the GSPs by January 31, 2020. Coordination of the GSA are typically executed through a Memorandum of Agreement (MOU) or a Joint Powers Agreement/Authority (JPA). The legislative intent of SGMA is to recognize and preserve the authority of cities and counties to manage groundwater according to their existing powers.6 Merced County falls within the San Joaquin Valley Basin, which has been identified as critically overdrafted. Overdraft occurs when the average annual amount of groundwater extraction exceeds the long-term average annual supply of water to the basin. Effects of overdraft that could affect the County include land subsidence, groundwater depletion, and/or chronic lower of groundwater levels. Districts within the County that rely on groundwater may have deficient water services in the future. 4 Senate Bill No. 929, filed September 14, 2018. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB929. 5 Assembly Bill No. 2257, filed September 9, 2016. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB2257. 6 Sustainable Groundwater Management Act. http://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=WAT&division=6 .&title=&part=2.74.&chapter=&article. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 6 The Merced County portion of the San Joaquin Valley Basin consists of four groundwater subbasins: the Merced, Delta-Mendota, Turlock, and Chowchilla subbasin.7 Although most districts rely on groundwater from one of these subbasins as their source of potable water, only six districts are members of their respective GSAs. In contrast to the groundwater-reliant districts, the Midway Community Service District, North Dos Palos Water District, South Dos Palos County Water District, and Santa Nella County Water District, are all located on the westside of the County and primarily rely on surface water from the California Aqueduct, as part of the Central Valley Project. INFRASTRUCTURE, FACILITIES, AND SERVICES As described above, most districts rely exclusively on groundwater wells for their water supply with the exception of four districts on the west side of the County. The Santa Nella County Water District purchases the majority of its raw water supply from the San Luis Water District, which diverts surface water from the Delta Mendota Canal and the San Luis Canal under a contract with the U.S. Bureau of Reclamation. The Midway Community Services District, North Dos Palos Water District, and South Dos Palos County Water District participate in a Joint Powers Authority (JPA) with the City of Dos Palos and receives water from the California Aqueduct which is treated and conveyed by facilities maintained and operated by the City of Dos Palos. Likewise, most wastewater districts maintain their own wastewater treatment plants with the exception of three districts. Midway Community Services District and South Dos Palos County Water District share facilities with the City of Dos Palos as part of a Joint Powers Authority. The Winton Water and Sanitary District (WWSD) collects wastewater and transports it to the City of Atwater Wastewater Treatment Plant. Due limited remaining capacity, the WWSD has investigated construction their own wastewater treatment plant. Service Violations Under each agency profile, this MSR will review service violations of water facilities as tracked by the California State Water Resources Control Board (SWRCB). The SWRCB enforces the Clean Water Act, permit conditions, and other requirements of wastewater providers. The Division of Drinking Water of the SWRCB details key information about each of the State’s water districts as well as the historical record of violations, if any. Users can search for any water district in the State at https://sdwis.waterboards.ca.gov/PDWW/index.jsp. Currently, five of the districts that provide water services have at least one open/current violation. In addition to water violations, the State also monitors wastewater facilities. The State’s California Integrated Water Quality System Project (CIWQS) details any current and historical violations against wastewater treatment plants and/or wastewater service providers. Users can search for any facility at the State’s website.8 Two of the districts that provide wastewater services, the Le Grand Community Services District and Planada Community Services District, have had several historical violations dating from 2014-2018. The Planada Community Services District obtained grant funds to upgrade their treatment to address the violations. 7 Merced County SGMA webpage. https://www.co.merced.ca.us/2798/Sustainable-Groundwater--- SGMA. 8https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?reportID=7987866&reportNa me=facilityAtAGlance&inCommand=reset. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 7 DEMAND AND CAPACITY Of the ten interview responses received by EPS, nine districts reported that current facilities are adequate to serve demand. However, most districts generally have limited water and wastewater capacity to serve future growth, and future development is contingent upon the construction of additional facilities, as outlined in the individual district profiles. The County has updated the Community Plans of Hilmar, Delhi, Planada, Le Grand. Updates to the Community Plans of Winton and Franklin-Beachwood are underway and may project significant growth at plan buildout. Additionally, the Delhi and Santa Nella Plans accommodate for significant growth, but progress has stalled due to lack of water and wastewater infrastructure. The Santa Nella County Water District is involved in a pending “reorganization” which would involve the detachment of the San Luis Water District from the territory located within the Santa Nella Community Plan. This reorganization is intended to improve the water supply for the Santa Nella County Water District by assuming a Bureau of Reclamation water contract. MSR DETERMINATIONS The following is a description of each required determination and applicability to Merced County service providers. (1) Growth and population projections for the affected area. This determination evaluates future growth and whether it can be adequately served by the agency. While rapid growth was reported occurring throughout Merced County in the 2007 Municipal Service Review report, limited growth has been observed as future development has been contingent upon the construction of additional facilities or the ability to secure water supply. It is anticipated that moderate growth will occur in the communities of Hilmar, Le Grand, and Planada as a result of recent Community Plan updates which will accommodate historic growth rates. The adopted Delhi and Santa Nella Community Plans accommodate significant development but have had limited growth since adoption of their Community Plan updates. The Community Plan updates for Winton and Franklin-Beachwood are currently underway and the remaining districts are not located in areas for which the County proposes Community Plans, so limited or no growth is anticipated. (2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence. This determination assesses the prospect of including neighboring “disadvantaged unincorporated communities”, or “DUCs”, when an agency’s SOI is updated or expanded. DUCs are inhabited communities, containing 12 or more registered voters, that constitutes all or a portion of a “disadvantaged community” as defined by Section 79505.5 of the Water Code. In 2011, SB 244 was passed to require cities and counties to address the infrastructure needs of unincorporated disadvantaged communities in city and county general plans and MSRs and annexation decisions. As a result, Merced County was required to identify “each legacy community within the boundary of the county but excluding any area within the SOI of any city” within its 2030 General Plan Land Use Element, and assess access to public services and the infrastructure used to support these services. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 8 In the 2030 Merced County General Plan SB 244 Analysis (County SB 244 Analysis), the County identified seven water and sewer service districts that contain a designated DUC and/or is adjacent to a DUC.9 These will be identified in Section III of this MSR for each individual district. SB 244 also requires cities to identify any DUCs within their SOIs, and include any contiguous DUCs in annexations of 10 acres or more. Since the Midway Community Services District and the South Dos Palos County Water District are located within the City of Dos Palos’ SOI, these areas are not included in the County SB 244 Analysis. The City of Dos Palos’ General Plan does not have a SB 244 component and any future update of the General Plan will require assessment of these districts. Several DUCs and/or communities are considered a “disadvantaged community”, or “DACs” by the Department of Water Resources (DWR). A DAC more broadly refers to a community with an annual median income of less than 80 percent of the statewide annual median household income (MHI), and a Severely DAC is a community with less than 60 percent of the State’s MHI.10 DACs are recognized through different census geographies including census designated places (CDPs), tracts, and block groups. Of the fourteen active districts, nine districts serve DACs and are eligible for grant and related funding programs.11 These will be identified in Section III of this MSR for each individual district. The Hilmar County Water District (HCWD) has also provided a special study12 to establish a MHI “level to optimize their funding alternatives for state and federal funding programs and sources.” The study concluded the MHI for the HCWD was $43,751 after a response rate of 13 percent, which qualifies Hilmar as disadvantaged. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. This determination refers to the adequacy of existing and planned public facilities in relation to how public services are, and will be, provided to residents. Infrastructure can be evaluated in terms of capacity, condition, availability and quality, and plans for future improvement and/or expansion. State agencies provide water quality and wastewater information for each agency, in addition to self-reported data, and document violations, if any, of State standards. Most of the districts responded that their infrastructure is sufficient for current demand, but most agencies will require upgrades to facilities to accommodate capacity associated with future growth. 9 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 10 See the California Water Code Cal. Water Code §79505.5. According to the U.S. Census, median household income, or MHI (in 2017 dollars) is $67,169 (see https://www.census.gov/quickfacts/ca). A Disadvantaged Unincorporated Community is 80% or less of MHI which equals $53,735 or less to qualify as a DUC. 11 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 12 Hilmar County Water District Median Household Income Survey, prepared March 2018 by Rural Community Assistance Corporation Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 9 (4) Financial ability of agencies to provide services. This determination evaluates whether the agency has the financial ability to provide adequate services now, and/or in the future, particularly when considering SOI changes and potential annexations to the agency. Most districts plan to pay for new facilities through development fees, connection fees, and/or service agreements under which developers are required to construct and dedicate wells, lift stations, and other needed facilities. Of the ten responses received, six districts stated that their revenues were adequate to maintain service operations and facilities replacement costs. One district, the Hilmar County Water District, stated that revenues were currently inadequate while three other districts did not provide a response to this question in their interview responses. In addition, several districts are currently in the process of updating their current rates. (5) Status of, and opportunities for, shared facilities. This determination reviews current sharing arrangements with other agencies, if any, and whether opportunities exist to improve the efficiency and effectiveness of services through sharing, collaboration or functional consolidation. While no formal effort is underway, the Hilmar County Water District Board has internally discussed potentially studying the consolidation of water facilities with the County Club Water District. No direct conversation has taken place. In addition, the North Dos Palos Water District (NDPWD) noted that NDPWD does have shared facilities. The City of Dos Palos 2015 MSR stated that “… the City has a long history of achieving efficiencies in service delivery through their shared Fire Station 76 with the County, and through the regional water and wastewater Joint Powers Authorities (JPAs) with the neighboring Midway Community Services District, the South Dos Palos County Water District, the North Dos Palos Water District and Merced County.”13 (6) Accountability for community service needs, including governmental structure and operational efficiencies. This determination reviews whether an agency follows "best practices" to a) facilitate cost effective and efficient delivery of services; and b) enable review and input by residents, LAFCO and other agencies and stakeholders, including adequate reporting documents and website access. This determination can also consider governance options (e.g., consolidation) to improve efficiencies and accountability. As noted above in the description of “Accountability” in the section on overview of “Governmental Structure”, only six of the ten districts have websites as required by SB 929, and some necessary information was lacking. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other matters have been identified in this report. 13 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO on December 13, 2017 by Resolution No. 2017-2, page 19. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 10 (8) Sphere of Influence review. This determination provide recommendation for the basis of modifying an agency’s SOI. The County has recently completed the updates to the Community Plans of Planada and Le Grand and has begun updates to the Winton and Franklin-Beachwood Community Plans. The Commission historically coordinates with the respective special districts to match the County’s adopted urban growth boundaries. The County also coordinates with districts during the community planning process to update their facility master plans and amend the districts’ SOI. Based on survey responses, some districts are exploring possible consolidation involving Santa Nella County Water District with the Volta Community Services and the Hilmar County Water District with the Country Club County Water District. Furthermore, the communities of South Dos Palos and Midway are within the City of Dos Palos Planning Area and are anticipated to eventually be annexed into the City. The City also anticipates annexing the portion of the North Dos Palos Water District located south of Carmellia Road which is in the City’s Sphere of Influence and Planning Area. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 11 Table 1 Summary of Water Service Providers Name Area Served Population Operating Operating Number of Production (in acres) Served Budget Expenses Connections Capacity Usage $23,669 $28,214 Ballico Community Services District 190 270 72 .86 mgd .20 mgd (peak) (FY 2018/2019) (FY 2018/2019) $18,420.66 $15,728.74 Country Club County Water District 10 50 23 Unknown .005 mgd (peak) (FY 2018/2019) (FY 2018/2019) $2,375,372 $1,889,026 Delhi County Water District 1,610 8,000 2,400 5.75 mgd 4.16 mgd (peak) (FY 2018/2019) (FY 2018/2019) $2,128,290 $1,251,177 Hilmar County Water District 750 5,500 1,576 2.3 mgd 1.9 mgd (peak) (FY 2016/2017) (FY 2016/2017) $732,819 $893,704 Le Grand Community Services District 370 1,659 492 1.7 mgd .41 mgd (peak) (FY 2018/2019) (FY 2018/2019) $142,874 $81,126 Midway Community Services District 684 Unknown 356 3.0 mgd1 Unknown (FY 2018/2019) (FY 2018/2019) $2,823 $1,656 North Dos Palos Water District 202 50 43 3.0 mgd1 Unknown (FY 2018/2019) (FY 2018/2019) $2,536,972 $1,816,446 Planada Community Services District 945 5,500 1,300 4.32 mgd .97 mgd (avg) (FY 2018/2019) (FY 2018/2019) $1,559,600 $1,489,704 Santa Nella County Water District 1,663 1,380 722 (peak) 1.8 mgd 1.2 mgd (peak) (FY 2018/2019) (FY 2018/2019) $73,155 $81,906 South Dos Palos County Water District 285 Unknown 247 3.0 mgd1 Unknown (FY 2018/2019) (FY 2018/2019) $25,337 $19,106 11 million gallons Volta Community Services District 52 150 51 Unknown (FY 2018/2019) (FY 2018/2019) (annual) $2,923,469 $2,831,637 Winton Water and Sanitary District 640 8,900 2,900 6.05 mgd 1.56 mgd (avg) (FY 2018/2019) (FY 2018/2019) "mgd" = million gallons per day "FY" = financial year 1 The Dos Palos Area JPA is currently seeking grant funds to expand the current 3.0 mgd water treatment plant to 4.0 mgd with an option for private development to purchase an additional module to provide 2.0 mgd of additional capacity (according to City of Dos Palos information). Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 12 Table 2 Summary of Wastewater Service Providers Name Area Served Population Operating Operating Wastewater (in acres) Served Budget Expenses Connections Flow Capacity $2,375,372 $1,889,026 Delhi County Water District 1,610 8,000 2,400 .67 mgd (peak) .80 mgd (FY 2018/2019) (FY 2018/2019) $1,257,188 $1,217,275 Franklin County Water District 540 4,500 2,000 .72 mgd (peak) .50 mgd (FY 2018/2019) (FY 2018/2019) $2,128,290 $1,251,177 Hilmar County Water District 750 5,500 1,558 .40 mgd (peak) .55 mgd (FY 2016/2017) (FY 2016/2017) $732,819 $893,704 Le Grand Community Services District 370 1,659 492 .10 mgd (avg) 0.35 mgd (FY 2018/2019) (FY 2018/2019) $142,874 $81,126 Midway Community Services District 684 Unknown 385 Unknown .09 mgd (FY 2018/2019) (FY 2018/2019) $2,536,972 $1,489,704 Planada Community Services District 945 5,500 1,181 .45 to .50 mgd (avg) .53 mgd (FY 2018/2019) (FY 2018/2019) $1,559,600 $1,489,704 Santa Nella County Water District 1,663 1,380 697 .21 mgd (avg) .34 mgd (FY 2018/2019) (FY 2018/2019) $91,432 $118,971 Snelling Community Services District 480 150 122 .019 mgd (avg) .06 mgd (FY 2018/2019) (FY 2018/2019) $73,155 $81,906 South Dos Palos County Water District 285 Unknown 204 .035 mgd (avg) 0.08 mgd (FY 2018/2019) (FY 2018/2019) $2,923,469 $2,831,637 Winton Water and Sanitary District 640 8,900 2,900 .66 mgd (avg) 1 mgd (FY 2018/2019) (FY 2018/2019) "mgd" = million gallons per day "FY" = financial year Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 13 Table 3 Average Monthly Water Service Rates for Typical Single-Family Homes Monthly Charges Water Service Provider Base Rate Commodity Charge Ballico Community Services District $27.50 per month flat charge N/A Country Club County Water District $200 per quarter N/A Delhi County Water District $25.00 per month N/A Hilmar County Water District Depending on meter size, base water service rates N/A range from $25.65 for a meter size of 3/4 inch, up to $161.25 for a meter size of 6 inch. Plus, there is a volume charge, which varies based on number of gallons and property type (e.g. residential, commercial/industrial, mobile home parks) Le Grand Community Services District Flat charge of $33.00 per month -- Midway Community Services District* No information available North Dos Palos Water District* $32.00 per month $0.85 per 100 cu.ft. after 2,941 cu. ft. Planada Community Services District $33.00 for 3/4 inch to 1 inch service $44 for 1.5 inch services, $70 for 2 inch service Santa Nella County Water District Mobile Home - $35.90 per month Residential - $1.78 ($/hcf) Residential - $19.00 per month Commercial - $1.25 ($/hcf) Commercial - depending on meter size, base water rate ranges from $46.84 for a meter size of 5/8" to 3/4", up to $517.46 for a 3" meter size or larger; or for unmetered commercial ($102.65 per month) South Dos Palos County Water District* No information available Volta Community Services District* Residential - $40 N/A Commercial - $60 School - $200 Winton Water and Sanitary District Meters of 3/4" -- N/A Multifamily dwelling units, up to 3,000 cf - $12.55 and $1.46 per 100cf for 3,001 cf and over Single family and duplexes ranges from $16.68 for 0 to 1,000 cf up to $3.03 per 100 cf for 30,000 cf and over Business/Churches/Halls/etc. ranges from $23.64 for 0-4,000 cf up to $3.03 per 100 cf for 30,000 cf and over * Current water service rates were not provided. Includes publicly-owned water providers only. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 II. Summary of Findings Page 14 Table 4 Average Monthly Wastewater Service Rates for Typical Single-Family Homes Typical Service Charges Sewer Service Provider Annual Monthly Delhi County Water District $468 $39.00 Franklin County Water District $228.00-$276.00 $19.00-$23.00 Hilmar County Water District Resi. - $27.25 Commercial - $2.40 per thousand gallon Le Grand Community Services District $408 $34.00 Midway Community Services District* No information available Planada Community Services District $624 $52.00 Santa Nella County Water District Mobile Home - Mobile Home - $31.46; $377.52; Metered Resi. - $37.77; Metered Residential Commercial - (fixed amount depending on strength - - $453.24; low/medium/medium-high/high, ranges from $393.67 for low up to $997.33 for high) plus (volume $/hcf depending on 8 levels of strength ranging from $1.78 for low up to $5.48 for high-irr); Unmetered commercial - $130.55 per month; Grease Trap Interceptor ($70.19 per quarter) Snelling Community Services District $300 $25 South Dos Palos County Water District* No information available Winton Water and Sanitary District $589.92 $49.16 * Current sewer service rates were not provided. Includes publicly-owned wastewater providers only. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx III. WATER AND WASTEWATER DISTRICTS BALLICO COMMUNITY SERVICES DISTRICT COUNTRY CLUB COUNTY WATER DISTRICT DELHI COUNTY WATER DISTRICT FRANKLIN COUNTY WATER DISTRICT HILMAR COUNTY WATER DISTRICT LE GRAND COMMUNITY SERVICES DISTRICT MIDWAY COMMUNITY SERVICES DISTRICT NORTH DOS PALOS WATER DISTRICT PLANADA COMMUNITY SERVICES DISTRICT SANTA NELLA COUNTY WATER DISTRICT SNELLING COMMUNITY SERVICES DISTRICT SOUTH DOS PALOS COUNTY WATER DISTRICT VOLTA COMMUNITY SERVICES DISTRICT WINTON WATER AND SANITARY DISTRICT Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Ballico Community Services District Page 16 BALLICO COMMUNITY SERVICES DISTRICT GOVERNANCE AND OPERATIONS The Ballico Community Services District (Ballico CSD) was formed in 1986 pursuant to the Community Services District Law (Government Code Section 61000). The District was formed because groundwater was found to be polluted with nitrates and Dibromochloropropane (DBCP).14 As of 2018, the District boundary encompasses approximately 143 acres15 and serves approximately 270 people, including the community of Ballico.16 Ballico is designated as a DUC by the County SB 244 Analysis and a DAC by the DWR.17 The Ballico CSD’s boundary and SOI are identified in Figure 1. The District is governed by a five-member Board of Directors who meet every month. In compliance with the Brown Act, the District posts its agenda 72 hours prior to each meeting.18 The District does not maintain a website and will need to establish a website by January 1, 2020 to be in compliance with SB 929. Additionally, once a website is established, agendas must be posted online to comply with the Brown Act. The Ballico CSD is within the Turlock Subbasin and is not a member of either the East and West Turlock Subbasin GSAs (Turlock Subbasin GSAs).19 The Turlock Subbasin GSAs are in the process of developing a single GSP to manage groundwater quantity and quality for the Turlock Subbasin through 2042. Information on the GSAs, meetings and agendas, public workshops, and progress on the GSP is available at https://turlockgroundwater.org/. Total operating revenue for FY2018-2019 was $23,669 and total expenses were $28,214. Revenues are largely attributed water sales; the District charges a monthly water fee at the flat rate of $27.50. The Ballico CSD anticipates increasing this rate for the maintenance of the backup well, if the District can secure State funding to construct the well. The District does not receive a share of the property tax, nor does the District collect any special assessments or other taxes. The District has not reported any outstanding debt and has indicated there is no need to incur debt in the near future. The Ballico CSD conducts audits annually and audit reports include information regarding the District’s financial position, activities, cash flows, and notes on financial statements.20 Audit reports are submitted to and reviewed by the County Auditor-Controller; however, the Auditor has indicated that no recent audits have been received.21 14 Local Agency Formation Commission Executive Officer’s Report: Ballico Community Services District Formation, June 1986. 15 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-60 to LU-61. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 16 Interview Response by Board President, Manuel Jimenez, 2018, page 2. 17 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 18 Interview Response by Board President, Manuel Jimenez, 2018, page 2. 19 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 20 Interview Response by Board President, Manuel Jimenez, 2018, pages 3-4. 21 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Ballico Community Services District Page 17 INFRASTRUCTURE, FACILITIES, AND SERVICES The Ballico CSD provides domestic water service to 72 connections. The District relies on one groundwater well which has the production capacity of 0.86 mgd. Water is stored in a storage tank of unknown size and delivered through approximately 2 miles of water main. The District estimates annual usage is 37 million gallons and peak demand is 0.20 mgd, or 23 percent of production capacity.22 While infrastructure is adequate to meet current demand, the water service may become deficient due to overdraft of the basin. Additionally, the District does not maintain a backup well as required by the California Department of Water Resources. The County SB 244 Analysis states that the “State Water Resources Control Board has been coordinating with the County Division of Environmental Health to look at options for installing a second well, and at opportunities for consolidation.” While the District has not specified opportunities for shared facilities or consolidation, the District has indicated efforts to obtain State funding to construct a backup well.23 In terms of water district violations, the State Water Resources Control Board (SWRCB) Drinking Water Branch lists the district as “out of compliance,” as of February 2019. In addition, the SWRCB website listed four instances (dated February through May of 2018) of the presence of Analyte 1,2,3 – Trichloropropane.24 In 2015, the Environmental Working Group (EWG) drinking water quality report reported the presence of three contaminants (Arsenic, Chromium, and Nitrate).25 DEMAND AND CAPACITY The community of Ballico is designated as a Rural Center in the 2030 Merced County General Plan. This designation is reserved for areas that “lack public sewer and/or water systems, have a stable or declining population, and have a limited level of public and commercial services.” The County does not target Rural Centers for growth, and density is limited to one dwelling unit per acre. New residential uses are generally discouraged or intended to be agricultural-supporting.26 The District has reported that facilities and staff are adequate, and water conservation policies have been adopted to address current drought conditions affecting the Central Valley. The District plans to construct a second well which is not intended to provide capacity for future growth but will instead serve as a backup well for emergencies. 22 Interview Response by Board President, Manuel Jimenez, 2018, page 2. 23 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-60 to LU-61. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 24 Individual Water District Violation Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=7199&tinwsys_st_co de=CA. 25 EWG Drinking Water Quality Report - https://www.ewg.org/tapwater/system.php?pws=CA2400167. 26 2030 Merced County General Plan, adopted December 10, 2013, pages LU-14. http://www.countyofmerced.com/100/General-Plan. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Ballico Community Services District Page 18 Table 5 Ballico Community Services District Profile Ballico Community Services District Agency Contact Manuel Jimenez Agency Contact Title Board President Address 11456 Santa Fe Drive Ballico, CA 95303 Phone 209-648-6366 Email manuelj1976@yahoo.com Website No Website District Engineer/Contact n/a Agency Area Acres 190 Population 270 Number of Water Connections 72 Number of Sewer Connections n/a Subbasin1 San Joaquin Valley - Turlock Groundwater Sustainability Agency1 Turlock Subbasin GSAs Member of GSA?1 No Historical/Political Data Year of Formation 1986 Type of Agency Community Services District Enabling Act Community Services District Law, Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided public domestic water system Authorized Services public domestic water system Fiscal Total Annual Operating Revenues2 $23,669 (FY 2018/2019) Total Annual Operating Expenses2 $28,214 (FY 2018/2019) Primary Revenue Sources water sales SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Ballico Community Services District Page 19 Figure 1 Ballico Community Services District Boundary and Sphere of Influence Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Ballico Community Services District Page 20 DETERMINATIONS (1) Growth and population projections for the affected area. No significant growth is anticipated as the community of Ballico is designated as a Rural Center in the General Plan and is not targeted for growth. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The Ballico CSD encompasses the community of Ballico which is a designated DUC and DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Facilities are adequate to maintain current and anticipated demand; however, the District lacks a backup well as required by the State and is working to secure State funding to construct the well. (4) Financial ability of agencies to provide services. The District has no outstanding debts and revenue is adequate to maintain current operations. Water service rates may increase if the District is able to obtain funding and construct a backup well. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The Ballico CSD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. There is no basis to modify the Ballico CSD SOI as there have been no changes since formation and the community is not targeted for growth. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Country Club County Water District Page 21 COUNTRY CLUB COUNTY WATER DISTRICT GOVERNANCE AND OPERATIONS The Country Club County Water District (Country Club CWD) was formed in 1982 pursuant to the County Water District Law (Section 30000 of the Water Code). The District was formed to provide domestic water service at reduced costs to a 23-lot residential subdivision within the boundaries of 10.4 acres.27 The District currently provides water to approximately 50 customers with 23 connections.28 The subdivision has not been designated as a DUC or DAC by the County or the DWR nor is the District within proximity to any designated DUCs29/DACs.30 The District’s boundary and SOI are identified in Figure 2. The District is governed by a five-member Board of Directors. Board meetings are held quarterly, but agendas are not publicly available 72 hours prior to each meeting as required by the Brown Act. Additionally, the District does not maintain a website and was required to establish a website by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. The Country Club CWD is within the Turlock Subbasin and is not a member of either the East and West Turlock Subbasin GSAs (Turlock Subbasin GSAs).31 The Turlock Subbasin GSAs are in the process of developing a single GSP to manage groundwater quantity and quality for the Turlock Subbasin through 2042. Information on the GSAs, meetings and agendas, public workshops, and progress on the GSP is available at https://turlockgroundwater.org/. Total revenue for FY2018-2019 was $18,420.66 and total expenses were $15,728.74. Revenues are largely attributed to water sales ($200 per quarter) with some interest income generated by a $10,000 Certificate of Deposit (CD). The District does not receive a share of the property tax, nor does the District collect any special assessments or other taxes. Currently, there is no outstanding debt nor does the District expected to incur debt in the near future. The County Club CWD conducts yearly audit report which include the District’s financial position, activities, cash flows, and notes on financial statements.32 Audit reports are submitted to and reviewed by the County Auditor- Controller; the audit report for 2016 is the most recent profile received by the County.33 27 Local Agency Formation Commission Executive Officer’s Report: Formation of Country Club Water District, August 1982. 28 Interview Response by District Secretary, Kate Garcia, 2018, page 2. 29 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 30 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 31 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 32 The CWD Audit Report accompanies the Interview Response by Board Secretary, Kate Garcia, 2018, page 6-14. 33 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Country Club County Water District Page 22 INFRASTRUCTURE, FACILITIES, AND SERVICES The Country Club CWD provides domestic water service to 23 connections. Water facilities include two groundwater wells which have unknown production capacity. The District estimated average usage is 3,011 gpd (0.003 mgd) and peak demand is 5,194 gpd (0.005 mgd). While the District has indicated facilities are adequate to meet current demand, water service may become deficient due to overdraft of the basin. The District currently employs water usage notices and monitoring to address drought concerns. Since growth is not anticipated due to buildout, it can be inferred that facilities are also adequate to meet future demand. However, an adjacent 22 lot subdivision on Lana Lane and Golf Link Road relies on individual wells for each home and connection with a community water system would be a desirable solution for the long term. The District has not identified any shared facilities or any opportunities for shared facilities; however, the Hilmar County Water District has stated that its Board of Directors is considering the possibility of sharing facilities with the Country Club CWD.34 Due to poor water quality in Hilmar, the Hilmar County Water District (CWD) has wells and water pipelines nearby Golf Link Road, transporting groundwater south to the community of Hilmar. With approximately 1,600 water connections and a $2 million annual budget, Hilmar CWD could maintain Country Club CWD’s water supply through a consolidation to achieve efficiencies and improve reliability. In terms of water district violations, the State Water Resources Control Board (SWRCB) Drinking Water Branch lists the district as “compliance achieved,” as of January 2019, after the 1996 water violation due to the presence of the Coliform (TCR) Analyte.35 DEMAND AND CAPACITY The Country Club CWD was formed to provide water service to a residential subdivision within a 10.4-acre boundary in the Hilmar area. The subdivision is built out with 23 single-family homes, the District’s well site, and a drainage basin.36 Consequently, significant growth is not anticipated, and it can be determined that facilities are adequate to meet current and future demand. 34 Interview Response by the District Manager, Curtis Jorritsma, The Hilmar County Water District (HCWD), 2018, page 2. 35 Individual Water Districts Violation Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violation.jsp?tinwsys_is_number=7172&tinwsys_st_cod e=CA&tmnviol_is_number=21768&tmnviol_st_code=CA. 36 Assessor’s Parcel Map, Book 45, Page 30. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Country Club County Water District Page 23 Table 6 Country Club County Water District Profile Country Club County Water District Agency Contact Kate Garcia Agency Contact Title Board Secretary Address 10437 Morro Bay Lane Turlock, CA 95380 Phone 209-678-3599 Email n8k8garcia@gmail.com Website No Website District Engineer/Contact n/a Agency Area Acres 10.4 Population 50 Number of Water Connections 23 Number of Sewer Connections n/a Subbasin1 San Joaquin Valley - Turlock Groundwater Sustainability Agency1 Turlock Subbasin GSAs MemberofGSA?1 No Historical/Political Data Year of Formation 1982 Type of Agency County Water District Enabling Act County Water District Law, Water Code §30000 et seq. Governing Body District Board Agency Services Currently Provided provide domestic water service at reduced costs Authorized Services domestic water Fiscal Total Annual Operating Revenues2 $18,420.66 (FY 2018/2019) Total Annual Operating Expenses2 $15,728.74 (FY 2018/2019) Primary Revenue Sources water sales, interest income SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] Provided in Audit Report (for year ended June 30, 2018) accompanying the Agency's Interview Reponse May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Country Club County Water District Page 24 Figure 2 Sphere of Influence of Country Club County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Country Club County Water District Page 25 DETERMINATIONS (1) Growth and population projections for the affected area. No significant growth is anticipated as the 10.4 acre subdivision has been built out. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The subdivision is not a designated DUC/DAC nor is the District within proximity of any designated DUCs/DACs. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Although the production capacity of the existing groundwater well is unknown, the District has indicated that facilities are sufficient to provide current and anticipated demand. (4) Financial ability of agencies to provide services. The District has no outstanding debts and indicates that revenue is adequate for current infrastructure to maintain current operations and facility replacement costs. No audit report more recent than 2016 was available for review. (5) Status of, and opportunities for, shared facilities. The Country Club CWD has not identified opportunities for shared facilities; however, the Hilmar County Water District has indicated interest in sharing facilities with Country Club CWD. The Commission should investigate and support efforts to pursue a consolidation of the County Club CWD with the Hilmar CWD to achieve operational efficiencies and improve reliability. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The Country Club CWD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. There is no current basis to modify the Country Club CWD SOI unless the District either expands to serve the neighboring home sites on individual well or pursues a consolidation the Hilmar County Water District. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 26 DELHI COUNTY WATER DISTRICT GOVERNANCE AND OPERATIONS The Delhi County Water District (DCWD) was formed in 1962 pursuant to the County Water District Law (Section 30000 of the Water Code) to provide water distribution and wastewater collection systems to the community of Delhi. As of 2018, the District provides services to 8,000 customers within an approximately 1,610-acre area, including the community of Delhi.37 Delhi is not designated a DUC by the County SB 244 Analysis but is considered a DAC by the DWR.38 The District’s boundary and SOI are identified in Figure 3. The District is governed by a five-member Board of Directors who meet every month. In compliance with the Brown Act, agendas are posted 72 hours prior to each meeting.39 DCWD recently created a website with links to required information, however, key information such as a current budget, financial audit report, minutes of past meetings, and staff reports are not available on the site (www.delhicwd.org). The DCWD is within the Turlock Subbasin and is a member of the West Turlock Subbasin GSA.40 In conjunction with the East Turlock Subbasin GSA, the West Turlock Subbasin GSA is in the process of developing a single GSP to manage groundwater quantity and quality for the Turlock Subbasin through 2042. Information on the GSAs, meetings and agendas, public workshops, and progress on the GSP is available at https://turlockgroundwater.org/. Total expenses for FY2018-2019 were $1,889,026 which includes $998,513 for water and $890,513 for sewer. Total revenue for FY2018-2019 was $2,375,372 which includes $1,021,858 for water services and $1,353,514 for sewer services.41 Revenue is attributed to water sales ($25/month), sewer service charges ($39/month), and property taxes. The District does not collect any additional taxes or special assessments. The District maintains an outstanding debt balance of $1,061,597 to Arizona Biz Bank to be paid by August 1, 2025. The District has an ongoing practice of conducting rate studies to project anticipated funding need, and the DCWD is currently conducting a study which will determine the need to modify fees and incur additional debt in the future.42 The DCWD conducts audit report annually and submits them to the County Auditor-Controller for review; the audit report for 2018 is the most recent profile received by the County.43 37 Executive Officer’s Report: Delhi North Annexation to the Delhi County Water District (0660), March 2012. 38 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 39 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 1. 40 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 41 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 42 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 3. 43 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 27 INFRASTRUCTURE, FACILITIES, AND SERVICES Water The DCWD provides water service to approximately 2,400 connections. In 2005, the Environmental Impact Report (EIR) for the Delhi Community Plan update indicated that the District maintained five groundwater wells, ranging from 150 to 500 feet in depth, and producing a capacity of 5,150 gpm (7.42 mgd). The Draft EIR states, “although current wells are adequate to meet annual demand for domestic water, the present well system could not serve the entire proposed Community Plan during peak periods.” A study prepared for the DCWD, summarized in the Draft EIR, concluded that four new wells and a grid of 12-inch pipe spaced approximately ½ mile apart would be needed to serve future development areas.44 In 2018, the District indicated it now only maintains four groundwater wells which have a production capacity of 3,990 gpm (5.75 mgd). The water supply is stored in three hydropneumatics tanks of unknown size and conveyed through roughly 27 miles of water line. The District estimates annual usage is 489 million gallons, average demand is 1.34 mgd, and peak demand is 4.16 mgd or 72 percent of production capacity.45 In addition to expanded conveyance infrastructure, the DCWD will need to construct five new wells to accommodate for the decrease in well facilities and the future growth. In terms of service violations, the State Water Resources Control Board (SWRCB) found a water violation for the presence of Analyte 1,2,3 – Trichloropropane, as of January 2019.46 In addition, there were historical violations of the presence of various Analytes dating from 1993 through 2015, all of which have been corrected and have since achieved compliance.47 Sewer The DCWD provides sewer service to approximately 2,400 connections with an Advanced Integrated Wastewater Pond System (AIWPS) which consists of a series of ponds and has a treatment capacity of 0.80 mgd.48 Sewage is conveyed to the wastewater treatment plant through a gravity collection/main-lift system. The District estimates average demand is 0.56 mgd and peak demand is 0.67 mgd or 83 percent of production capacity.49 Implementation of the Community Plan would increase demand by 1.2 mgd and bring the total wastewater demand to 2.0 mgd. To ensure the DCWD has capacity to 44 Draft Environmental Impact Report for the Delhi Community Plan (SCH#2004081181), prepared by Adrienne Graham and Associates, June 2005. 45 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 6. 46 Individual Water Districts Violation Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violation.jsp?tinwsys_is_number=3048&tinwsys_st_cod e=CA&tmnviol_is_number=64500&tmnviol_st_code=CA. 47 Individual Water Districts Violations Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=3048&tinwsys_st_co de=CA. 48 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 7. 49 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 7. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 28 serve future demand, the Draft EIR recommended either expansion of the existing system or construction of a new Extended Aeration system. Both recommendations would require acquisition and development of up to 50 acres of land. The Draft EIR also advised the District to construct new trunklines and upgrade or install new lift stations as the current system would not be sufficient to convey flows generated by the proposed Community Plan. In terms of service violations, there was a historical violation, dating to 2014 because the “total suspended solids (TSS) 12-month average limit” exceeded the limit of 40 mg/L (reported value was 44 mg/L) but there are no more recent listings of violations.50 DEMAND AND CAPACITY The District currently serves approximately 8,000 people and the Delhi Community Plan projects a buildout population of approximately 20,444 people and 5,592 housing units.51 Since the adoption of the Community Plan in 2006, the District has expanded its SOI by 802 acres and annexed 454 acres.52 Various upgrades to current water and wastewater facilities will be required to address future water and wastewater demand generated by buildout of the plan. In the short term, the DCWD has indicated that there has been some interest in developing parcels in the northeast portion of the District.53 50 Delhi Wastewater Treatment Facility Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=273168&reportID=4550350. 51 Delhi Community Plan, adopted June 13, 2006, page 3-3. http://web2.co.merced.ca.us/pdfs/planning/cplan/completed/delhi/delhi_final_community_plan.pdf 52 Executive Officer’s Report: Delhi County Water District – Sphere of Influence Revision No. 7 (1057G), January 2010. 53 Interview Response by the District’s General Manager, Leandro Maldonado, 2018, page 6. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 29 Table 7 Delhi County Water District Profile Delhi County Water District Agency Contact Leandro Maldonado Agency Contact Title General Manager Address 9738 Stephens Street Delhi, CA 95315 Phone 209-585-3003 Email lmaldonado@delhicwd.org Website www.delhicwd.org District Engineer/Contact Lee Fremming Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Lee.Fremming@qkinc.com Agency Area Acres 1,610 Population 8,000 Number of Water Connections 2,400 Number of Sewer Connections 2,400 Subbasin1 San Joaquin Valley - Turlock Groundwater Sustainability Agency1 West Turlock Subbasin GSA Member of GSA?1 Yes Historical/Political Data Year of Formation 1962 Type of Agency County Water District Enabling Act County Water District Law, Water Code §30000 et seq. Governing Body District Board Agency Services Currently Provided water and sewer Authorized Services water and sewer Fiscal Total Annual Operating Revenues2 $2,375,372 (FY 2018/2019) Total Annual Operating Expenses2 $1,889,026 (FY 2018/2019) Primary Revenue Sources water sales, sewer service charges, property taxes SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov June-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 30 Figure 3 Sphere of Influence of Delhi County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Delhi County Water District Page 31 DETERMINATIONS (1) Growth and population projections for the affected area Significant growth is anticipated in the Delhi area as the Delhi Community Plan accommodates a population of approximately 20,444 people and the current population is 8,000 people. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of Delhi is not a DUC but is identified as a DAC by the Department of Water Resources. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Facilities are adequate to meet current demand. The DCWD will need additional wells and piping to accommodate anticipated demand for water service, and a new/expanded wastewater treatment plant, new trunk lines, and new/upgraded lift stations to accommodate for anticipated wastewater demand. (4) Financial ability of agencies to provide services. The District is currently undergoing a rate study which would determine the need to raise rates and/or incur debt in addition to the outstanding debt balance of $1,061,597 to Arizona Biz Bank. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The DCWD recently created a website with links to required information, however, key information such as a current budget, financial audit report, minutes of past meetings, and staff reports are not available on the site.54 No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. There is no current basis to modify the SOI of the District as the SOI has been updated be consistent with the Delhi Community Plan boundary. 54 Web site reviewed 5/29/2020, https://www.delhicwd.org/ Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Franklin County Water District Page 32 FRANKLIN COUNTY WATER DISTRICT GOVERNANCE AND OPERATIONS The Franklin County Water District (FCWD) was formed in 1962 pursuant to the County Water District Law (Section 30000 of the Water Code). The FCWD is empowered to provide wastewater service and encompasses approximately 540 acres, including the community of Franklin- Beachwood. Potable water service in the community is provided by Cal American Water, a public utility regulated by the State Public Utilities Commission (PUC), not LAFCO. Franklin-Beachwood is not designated as a DUC by the County SB 44 Analysis but is considered a DAC by the DWR.55 The District is not within proximity of any DUCs or other DACs. A map of the District’s boundary and Sphere of Influence (“SOI”) is shown in Figure 4. The District is governed by a five-member Board of Directors who meet twice a month. There is currently one vacancy on the Board (with four active members) and the new vacancy will be filled by voters. The District has a link under the “myruralwater.com” website in an effort to comply with SB 929. However, the website is incomplete with no financial documents, rate information, or notices and the standard text provided leads the public to assume the district provides drinking water rather than being a wastewater district. The District is partially compliant with the Brown Act as it posts meeting agendas 72 hours prior to each meeting.56 The FCWD is within the Merced Groundwater Subbasin and is not a member of the Merced Irrigation-Urban GSA (MIUGSA).57 The MIUGSA collaborated with the Merced Subbasin GSA and the Turner Island Water District GSA to prepare a single GSP for the Merced Subbasin. Information on the MIUGSA and meetings and agendas are available at http://www.miugsa.org/. Information on the development of the Merced Subbasin GSP can be found at http://mercedsgma.org/. The total revenue for FY2018-2019 was $1,257,188 and total expenses were $1,217,275. Revenues are attributed to sewer service charges ($36.70/month), ad valorem of property taxes, and a special tax roll assessment.58 In 2007, the District discussed the possibility of instituting development fees to create a financing structure for upgrades to meet future capacity; however, there has been no indication if any development fees have been adopted since.59 The FCWD maintains a debt of an unknown amount to USDA and does not anticipate incurring any additional 55 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 56 Interview Response by Board General Manager, Brenda Wey, 2018, page 1. 57 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 58 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 59 County of Merced Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24, 2007, page 66. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Franklin County Water District Page 33 debt in the near future.60 The District conducts annual audits and the 2016 audit is the most recent report received by the County.61 INFRASTRUCTURE, FACILITIES, AND SERVICES The District provides sewer service to approximately 2,000 connections. The FCWD operates a wastewater treatment plant, three lift stations, and 12 ponds. In the 2007 MSR, the District reported that its total system capacity was 0.60 mgd and estimated average demand was 0.37 mgd. As of 2018, the District has indicated that production capacity has decreased to 0.50 mgd and estimates that average demand has decreased to 0.36 mgd. Peak demand is 0.72 mgd or 145 percent of production capacity.62 According to the Executive Officer’s Report for the Sphere of Influence Revision No. 4 and Annexation for the San Joaquin Valley Christian School, the FCWD usage was 0.47 mgd and the remaining capacity (0.03 mgd) had been allocated for the new school and a 86-unit subdivision south of Dan Ward Road called “Sierra View Meadows”.63 On June 28, 2019, LAFCO approved an out of boundary request from FCWD to allow an emergency 750 foot sewer connection for Joe Stephani Elementary School which had experienced a septic tank failure. Because the allocation for the 86-unit subdivision has been reallocated to the elementary school and the District has a commitment to provide services for the subdivision, current facilities will need to be upgraded to meet current and future demand.64 The CIWQS reports that there were 32 historical violations dating to 2014 and 2015 for late reports, deficient monitoring, and order conditions.65 DEMAND AND CAPACITY The lack of adequate sewer capacity has affected growth in the Franklin-Beachwood area. Currently, wastewater facilities are not adequate to meet existing demand and the FCWD must expand or upgrade facilities. The FCWD has existing commitments to an 86-unit subdivision known as “Sierra View Meadows” that obtained entitlements in 2017 and is expected to be built within 60 Interview Response by Board General Manager, Brenda Wey, 2018, page 3. 61 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. 62 Interview Response by Board General Manager, Brenda Wey, 2018, page 3. 63 Executive Officer’s Report: Franklin County Water District – Sphere of Influence Revision No. 4 (1057D), May 17,2017. 64 LAFCo OOBS File No. 19-01: Out of Boundary Municipal Service Extension Request – Joe Stephanie Elementary School (APN 10-051-012) 65 Franklin Wastewater Treatment Facility Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=273170&reportID=9866674. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Franklin County Water District Page 34 the next five to ten years.66 Additionally, the County will begin initiating a community plan update in 2020 which could identify new areas or growth and infill opportunities.67 At the same time, the City of Merced, located adjacent to the east of the FCWD, has been in the process of updating their Sewer Master Plan to accommodate planned future growth in the City. Since most growth is planned to the north and the City’s sewer plant is located approximately one mile south of the City, construction of a new 54-inch force main is being proposed through the eastern portion of the FCWD and adjacent of the District’s current sewer ponds, east of El Capitan Canal. While the City is not proposing a connection or consolidation with the FCWD, there are opportunities for FCWD to have added capacity for the Franklin-Beachwood community growth if this proposed major trunk line is constructed in the proposed location. Additionally, the proposed trunk line provides for potential consolidation opportunities of the FCWD with the City sewer system in the future. The District should work closely with the City as the Sewer Master Plan is completed and funding mechanisms are identified. 66 Interview Response by the District’s General Manager, Brenda Wey, 2019, page 3. 67 Board of Supervisors April 16, 2019 Regular Meeting Minutes: http://web2.co.merced.ca.us/pdfs/bos/sam/2019/04162019.pdf Economic & Planning Systems, Inc. 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Franklin County Water District Page 35 Table 8 Franklin County Water District Profile Franklin County Water District Agency Contact Brenda Wey Agency Contact Title General Manager Address 2126 Drake Avenue Merced, CA 95348 Phone 209-723-1353 Email brenda@franklincountywd.com Website www.fcwd.myruralwater.com District Engineer/Contact Douglas Parson Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Doug.Parsons@qkinc.com Agency Area Acres 540 Population 4,500 Number of Water Connections n/a Number of Sewer Connections 2,000 Subbasin1 San Joaquin Valley - Merced Groundwater Sustainability Agency1 Merced Irrigation-Urban GSA Member of GSA?1 No Historical/Political Data Year of Formation 1962 Type of Agency County Water District County Water District Law, Water Enabling Act Code §30000 et seq. Governing Body District Board Agency Services Currently Provided sewer Authorized sewer Fiscal Total Annual Operating Revenues2 $1,257,188 (FY 2018/2019) Total Annual Operating Expenses2 $1,217,275 (FY 2018/2019) Primary Revenue Sources sewer services, property taxes, special tax roll assessment SOURCE: The District did not respond to LAFCO requests for information; all information, unless otherwise noted, is from prior MSR (2007) [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Franklin County Water District Page 36 Figure 4 Sphere of Influence of Franklin County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Franklin County Water District Page 37 DETERMINATIONS (1) Growth and population projections for the affected area. Growth is anticipated due in the Franklin-Beachwood community due to existing entitlements for an 86-lot subdivision and initiation of the Franklin-Beachwood Community Plan Update; however, growth will be limited until wastewater facilities are upgraded. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of Franklin-Beachwood is not a DUC but is a DAC, and no other DUCs/DACs are within proximity of the District. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Wastewater facilities have reached capacity and expanded/upgraded facilities are needed to accommodate existing need of 86 connections and future needs. (4) Financial ability of agencies to provide services. The District has no outstanding debts. Development fees have been discussed as an option to fund anticipated operations and facility replacement costs. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified by the District; however, the ongoing Sewer Master Plan update by the City of Merced, proposed a major 54-inch sewer trunk line extending adjacent to the current FCWD sewer ponds, creating an opportunity for shared treatment capacity or a possible consolidation with the City. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The District has a link under the “myruralwater.com” website in an effort to comply with SB 929. However, the website is incomplete with no financial documents, rate information, or notices and the standard text provided leads the public to assume the district provides drinking water rather than being a wastewater district. No additional changes to FCWD’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. The County is anticipating on updating the Franklin-Beachwood Community Plan in the near future, and the Commission may consider a modification if urban growth boundary changes. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 38 HILMAR COUNTY WATER DISTRICT GOVERNANCE AND OPERATIONS The Hilmar County Water District (HCWD) was formed in 1965 pursuant to the County Water District Law (Section 30000 of the Water Code). The District provides water, sewer, and stormwater disposal services to the unincorporated community of Hilmar which encompasses just under 1,000 acres and approximately 5,500 people. The District’s boundary and SOI are identified in Figure 5. The community of Hilmar is not a DUC or DAC as identified by either the County SB 244 Analysis68 or the DWR,69 nor is the District within proximity of any DUCs/DACs. In March 2018, the Rural Community Assistance Corporation (RCAC) prepared a Median Household Income (MHI) Survey report which indicated that the District’s MHI was $43,751, based on a response rate of 13 percent, which meets the criteria for classification as a DAC, or a community with an annual median income of less than 80 percent of the statewide annual MHI. The District is governed by a five-member Board of Directors who meet on the first Tuesday of each month at 7:00 PM. In compliance with both SB 929 and the Brown Act, the District maintains a website (http://www.hilmarcwd.org) and posts agendas 72 hours prior to the meeting at the meeting location and online.70 The District is within the Turlock Subbasin and is a member of the West Turlock Subbasin GSA. In conjunction with the East Turlock Subbasin GSA, the West Turlock Subbasin GSA is in the process of developing a single GSP to manage groundwater quantity and quality for the Turlock Subbasin through 2042. Information on the GSAs, meetings and agendas, public workshops, and progress on the GSP is available at https://turlockgroundwater.org/.71 Total expenses for FY 2016-2017 were $1,251,177 which includes $525,442 for water, $669,448 for sewer, and $56,287 for storm water. Total revenue was $2,128,290 which includes $870,222 in developer fees which are reserved for capital improvements instead of annual operations. Excluding these fees, revenue and expenses are roughly equal. The breakdown of total revenue was $970,355 for water, $931,695 for sewer, and $226,240 for storm water.72 Revenue is attributed to service charges and a share of property taxes; no additional taxes or special assessments are collected. The District currently has no reserves. The District has indicated that revenues are not sufficient to maintain current and anticipated operations and facility replacement 68 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 69 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 70 Interview Response by the District Manager, Curtis Jorritsma, 2018, pages 1 and 3. 71 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 72 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 39 costs and is performing a rate study assess rate increases as well as applying for grant funding and loans.73 The HCWD maintains a $1,000,932 balance after interest on a wastewater loan with the SWRCB. Additionally, the District provides matching funds to a deferred compensation plan for salaried employees. The HWCD conducts annual audits which are submitted to the County Audit-Controller for review; the 2018 audit report is the most recent profile received by the County.74 INFRASTRUCTURE, FACILITIES, AND SERVICES Water The HCWD provides water service to 1,576 connections. The HCWD operates two groundwater wells and one back-up well located two miles north of Hilmar and have a total production capacity of 2.3 mgd.75 The District estimates that average demand is 1 mgd and peak demand is 1.9 mgd or 83 percent of production capacity The District indicates that facilities are adequate to serve in- fill projects within the current District Boundary but would need system improvements to meet increased demand. Consequently, the District is actively seeking out potential well sites to solidify their system. Additionally, the Hilmar County Water District Board has internally discussed potentially studying the consolidation of water facilities with the County Club Water District. No formal efforts are currently underway and direct conversations have not taken place. According to the Hilmar MSR completed in 2012, the District will need to expand by two additional groundwater wells and a one-million-gallon storage tank to provide enough water supply for anticipated need. Additionally, the District will need to install four new pumps that will accommodate for a collective minimum flow of 9,700 gpm and for water conveyance and fire flow requirements.76 The District is currently conducting a rate study to ensure their rates and structure support operating expenses. This rate study will determine if rates need to increase. In addition, there were historical violations of the presence of Perchlorate dating from 2009, which has since achieved compliance.77 73 Interview Response by the District Manager, Curtis Jorritsma, The Hilmar County Water District (HCWD). Financial documents detailing the operating expenditures for 2018/2019. 74 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. 75 Water and Sewer Service Provides Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24,2007, page 3. 76 Executive Officer’s Report on Municipal Service Review for Hilmar County Water District dated August 23, 2012. 77 Individual Water Districts Violations Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violation.jsp?tinwsys_is_number=3054&tinwsys_st_cod e=CA&tmnviol_is_number=5536&tmnviol_st_code=CA. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 40 With regards to violations listed in California Integrated Water Quality System Project reports, none were listed.78 Sewer The HCWD provides wastewater service to approximately 1,558 connections. The District operates a wastewater treatment plant with five lift stations and five basins. The wastewater treatment system has a total capacity of 1 mgd but is currently permitted 0.55 mgd. The system’s average demand is 0.28 mgd and its peak demand is 0.40 mgd or 73 percent of treatment capacity. Although the District reports that existing facilities are adequate to meet current demand, the HCWD has explored a potential private public partnership with a local cheese processing plant, Hilmar Cheese Company.79 In 2012, the District conducted an MSR to provide basis for expanding its SOI to accommodate Hilmar Cheese Company’s office expansion. According to the MSR, the District’s wastewater facilities would need a new wastewater treatment plant with a capacity of 1.4 mgd, two new sewer trunk lines, and two new lift stations to meet capacity at buildout of the Hilmar Community Plan with an estimated population of 11,000.80 Stormwater The HCWD provides storm drainage services distributed between two planning areas separated by Highway 165. The 2012 Hilmar MSR describes, “Each planning area has a booster lift station, which are connected with storage basins by an underground pipe system. Irwin, the southern area of Hilmar, has no drainage system and the rest of the community disposes its storm water into the Turlock Irrigation District (TID) Lateral No. 7.” Existing facilities do not meet demand for storm water as the TID Lateral No. 7 no longer accepts new discharges into its facilities. As a temporary solution, the HCWD uses a non-operational golf course and smaller sites located throughout Hilmar to dispose of storm water during peak storm periods. The MSR states, “Before any new development may occur with the District, it is required to show there will be no increase in discharge to the drainage system. Currently, six potential basin sites are being proposed to meet future demand. In addition, the District will need to install a 30- inch pipe to a new Pumping Station 1 and a 24-inch trunk line at proposed Detention Basin 5 in order to meet future demand.”81 78 California Integrated Water Quality System Project reports for those related to the Hilmar Community Services District and the Hilmar Wastewater Treatment Facility (Place ID# 273141, 273171, 645098, 848982) can be found at https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet. 79 Interview Response by the District Manager, Curtis Jorritsma, The Hilmar County Water District (HCWD), 2018, page 2. 80 Executive Officer’s Report on Municipal Service Review for Hilmar County Water District dated August 23, 2012. 81 Executive Officer’s Report on Municipal Service Review for Hilmar County Water District dated August 23, 2012. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 41 DEMAND AND CAPACITY The District anticipates the addition of 300 equivalent dwelling units (EDUs) within 3-5 years based on existing entitlements within the District boundary.82 In addition, the Hilmar Community Plan, adopted in July 2008, projects the community’s population will increase to 11,079 persons based on the assumption of 3.0 persons per household per potential development (3,700 potential units). Since the population currently being served is approximately 5,500 people, the District can anticipate significant growth in the future.83 As of 2018, the District reports that infrastructure improvements are on track according to its Capital Improvement Plan.84 82 Interview Response by the District Manager, Curtis Jorritsma, 2018, page 3. 83 Table 3.1. Land Use Summary. Adapted from Hilmar Community Plan, by the County of Merced, June 2008. http://web2.co.merced.ca.us/pdfs/planning/cplan/completed/hilmar/hilmar_community_plan_final.pdf 84 Interview Response by the District Manager, Curtis Jorritsma, 2018, page 2. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 42 Table 9 Hilmar County Water District Profile Hilmar County Water District Agency Contact Curtis Jorritsma Agency Contact Title District Manager Address 8319 Lander Avenue Hilmar, CA 95324 Phone 209-634-0785 Email curtis@hilmarcwd.org Website www.hilmarcwd.org District Engineer/Contact Spencer Supinger QK, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Spencer.Supinger@qkinc.com Agency Area Acres 750 Population 5,500 Number of Water Connections 1,576 Number of Sewer Connections 1,558 Subbasin1 San Joaquin Valley - Turlock Groundwater Sustainability Agency1 West Turlock Subbasin GSA Member of GSA?1 Yes Historical/Political Data Year of Formation 1965 Type of Agency County Water District Enabling Act County Water District Law, Water Code §30000 et seq. Governing Body District Board Agency Services Currently Provided water, sewer, storm water collection/disposal Authorized Services water, sewer, storm water collection/disposal Fiscal Total Annual Operating Revenues2 $2,128,290 (FY 2016/2017) Total Annual Operating Expenses2 $1,251,177 (FY 2016/2017) Primary Revenue Sources enterprise services, property taxes SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] Provided in Operating Revenue 2016/2017 Statement accompanying the Agency's Interview Response (revenues include one-time developer fee of $870,222) Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 43 Figure 5 Sphere of Influence of Hilmar County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Hilmar County Water District Page 44 DETERMINATIONS (1) Growth and population projections for the affected area Growth is anticipated in the Hilmar area as the Hilmar Community Plan provides for a building population of 11,079 people and the current population is approximately 5,500 people. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The Hilmar community is not a DUC and the HCWD is not within proximity of any DUCs. A 2018 Median Household Income Survey prepared by the Rural Community Assistance Corporation determined that the MHI for the District was $43,751 and the District serves a DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Facilities are considered adequate to meet current demand; however, significant facilities and infrastructure improvements have been identified in the Wastewater Collection System and Water Distribution Study for the Hilmar County Water District, prepared by QK, Inc., for the Hilmar Community Plan in 2007. (4) Financial ability of agencies to provide services. The District has indicated that current revenue is not sufficient to meet future demand and is conducting a rate study to determine and allow for rate increases as well as applying for grant funding and loans. (5) Status of, and opportunities for, shared facilities. The District has indicated the possibility of sharing water facilities with the Country Club County Water District which is located west of the HCWD’s wells near the Turlock Country Club. No direct conversations have taken place. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The HCWD maintains a website (www.hilmarcwd.org) and is in compliance with the Brown Act. No changes to the HCWD’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues were identified. (8) Sphere of Influence review. There is no current basis to modify the District’s SOI which has already been modified to include the updated Hilmar Community Plan boundary and the Hilmar Cheese Plant administrative offices in 2012. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Le Grand Community Services District Page 45 LE GRAND COMMUNITY SERVICES DISTRICT The District did not respond to LAFCO’s request for information or to follow-up inquiries. As such, the information within this district summary is based upon the Draft Environmental Impact Report (EIR) for the Le Grand Community Plan circulated in April 2019. GOVERNANCE AND OPERATIONS The Le Grand Community Services District (LGCSD) was formed as a sanitary district in 1955 and was reorganized into a community service district (CSD) in 1980 pursuant to the Community Services District Law (Section 61000 of the Government Code). Shortly after 1984, the District took over ownership of the former private water company assets and full responsibility for water services. When the 2007 MSR was completed, the District encompassed approximately 370 acres, including the community of Le Grand, and served 1,659 people. A number of annexations were being contemplated that would expand LGCSD’s service area, but due to economic and infrastructure limitation, no annexations have been processed since the 2007 MSR. The community of Le Grand is designated as DUC by the County SB 244 Analysis and a DAC by the DWR.85 The District boundary and SOI are identified Figure 6. On September 10, 2019, the Board of Supervisors adopted Resolution No. 2019-78 to adopt the Le Grand Community Plan update to change the community’s urban growth boundary. The Community Plan accommodates moderate growth and projects a population of 3,679 people. The new urban boundary has been reduced in three locations with the areas being reclassified and designated as Agricultural land use.86 Consequently, the Commission may consider modification of the District boundary and SOI to match the new Community Plan. However, the LGCSD SOI did not reflect all of the growth areas identified in the previous Community Plan. The District is governed by a five-member Board of Directors who meet on the first Thursday of each month.87 It is unknown if the District is in compliance with the Brown Act. The District does not maintain a website and was required to establish a website by January 1, 2020 to be in compliance with SB 929. Additionally, once a website is established, agendas must be posted online to comply with the Brown Act. The District is within the Merced Subbasin and is a member of Merced Irrigation-Urban Groundwater Sustainability Agency (MIUGSA).88 The MIUGSA collaborated with the Merced Subbasin GSA and the Turner Island Water District GSA to prepare a single GSP to manage ground water quantity and quality for the Merced Subbasin. Information on the GSP collaborative efforts 85 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 86 Le Grand Community Plan Update, adopted September 10, 2019, page 3. 87 Water and Sewer Service Provides Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24,2007, page 26. 88 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/index.jsp?appid=gasmaster&rz=true. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Le Grand Community Services District Page 46 can be found at http://mercedsgma.org/ and specific information on MIUGSA is available at http://www.miugsa.org/. Total expenses for FY2018-2019 were $893,704 which includes $519,642 for water and $374,062 for sewer. The total annual revenue for FY2018-2019 was $732,819 which includes $414,990 for water and $317,829 for sewer. Revenue is attributed to water and sewer service charges and property taxes.89 According to the 2007 MSR, the LGCSD rates vary between unmetered customers who pay a flat rate and metered customers who pay on a two-tiered system based on usage. The current rates are unknown as the District has may have changed in January 2007. It is unknown if the LGCSD maintains any outstanding debt or the District intends to incur debt in the future. It is also unknown how often the District conducts audit reports; however, the County Audit-Controller has indicated that the most recent profile received was for the year 2018.90 Based on the 2007 MSR, the District’s revenues were adequate to meet operating expenses.91 INFRASTRUCTURE, FACILITIES, AND SERVICES Water The District provides serves approximately 1,760 people across 370 acres with 492 connections. The LGCSD water infrastructure includes two active groundwater wells, ranging from 400 to 630 feet in depth and capacities of 500 gpm, for a total well capacity of 1,000 gpm. The water distribution system includes 6” to 8” AC pipe with limited short runs of older 3” or 4” pipes. The District plans to install a third well in the near future. According to a Water Supply Assessment (WSA) was prepared by QK, Inc. in February 2017, the current well production capacity is 1.7 mgd, the estimated daily demand is 0.27 mgd, and the estimated peak demand is 0.41 mgd or 24 percent of production capacity. At the Community Plan buildout, 2035, water demand is estimated not to exceed 203 million gallons per year. Based on the WSA, the District’s has demonstrated adequacy of both water supply and water distribution during the recent five-year drought period and during the recent record single dry year in that period. However, a Water System Improvements Study was prepared in July 2018 concluded that while existing capacity is adequate to meet current maximum day and peak hour demands, the District does not meet fire water storage capacity. As such, the study recommended the installation of two additional wells or a combination of 150,000-gallon storage tank and one additional well to meet existing demand.92 With regards to water district violations listed on the State Water Control Board’s Drinking Water Branch website, there is no record of the Le Grand Community Services District. 89 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 90 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. 91 Water and Sewer Service Provides Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24,2007, page 26. 92 QK Inc., Le Grand Water Assessment, February 2017, page 19. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Le Grand Community Services District Page 47 With regards to violations listed in California Integrated Water Quality System Project reports, none were listed.93 Sewer The LGCSD also provides wastewater services through 492 connections. The District owns and operates the wastewater treatment and disposal facilities located approximately 1.25 miles south of the community of Le Grand. The waste water treatment plant (WWTP) consists of aerated lagoons and discharges to 52 acres of agricultural cropland that supports fiber, fodder, and seed crops. Wastewater conveyance occurs through a sewer system of 6-inch sewer lines located through the community and a lift station located at McKee Street near the southern district boundary. The WWTP has an existing capacity of 0.35 mgd and treats on average 0.10 mgd. The WWTP operates under a Waste Discharge Requirement Order 97-053, issued by the Central Valley Regional Quality Control Board, which allows for expansion of the WWTP to 0.50 mgd with the addition of additional aerators to Pond 3.94 At buildout of the Le Grand Community Plan Update, future demand would increase to 0.23 mgd which existing facility could accommodate. However, the disposal volume will increase by 280 acre- feet and would require an additional 30 to 35 acres of disposal area. Additionally, the main lift station which pumps to the wastewater treatment plant would need to be either replaced or upgraded.95 DEMAND AND CAPACITY According to the 2010 U.S Census, the community of Le Grand was reported to have a population of 1,659 people. The updated Le Grand Community Plan, adopted September 2019, accommodates 628 potential units96 and a population of 3,679 people.97 Significant growth is anticipated, and current facilities are not adequate to meet future demand. Water infrastructure should be expanded to include two additional wells or a combination of a well and storage tank, and wastewater infrastructure should include additional disposal area and a new or upgraded lift station. 93 California Integrated Water Quality System Project reports for those related to the Le Grand Community Services District can be found at https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=748027&reportID=6825832. 94 Adrienne Graham and Associates , Draft EIR Le Grand Community Plan Update, April 2019, page 4.9-14. 95 Adrienne Graham and Associates , Draft EIR Le Grand Community Plan Update, April 2019, page 4.9-18. 96 Le Grand Community Plan, adopted September 10, 2019, page 24. 97 Le Grand Community Plan, adopted September 10, 2019, page 16. Economic & Planning Systems, Inc. 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Le Grand Community Services District Page 48 Table 10 LeGrand Community Services District Profile LeGrand Community Services District Agency Contact None/Unknown Agency Contact Title None/Unknown Address 13038 East Jefferson Street Le Grand, CA 95333 Phone 209-389-4173 Email None Website No Website District Engineer/Contact Garth Pecchenino Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Garth.Pecchenino@qkinc.com Agency Area Acres 370 Population 1,659 Number of Water Connections 492 Number of Sewer Connections 492 Subbasin1 San Joaquin Valley - Merced Groundwater Sustainability Agency1 Merced Irrigation-Urban GSA Member of GSA?1 Yes Historical/Political Data Year of Formation 1955; Reorganized as a CSD in 1980 Type of Agency Community Services District Community Services District Law, Enabling Act Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided sewer, potable water Authorized sewer, potable water Fiscal Total Annual Operating Revenues2 $732,819 (FY 2018/2019) Total Annual Operating Expenses2 $893,704 (FY 2018/2019) Primary Revenue Sources enterprise services, property taxes SOURCE: The District did not respond to LAFCO requests for information; all information, unless otherwise noted, is from prior MSR (2007) [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Le Grand Community Services District Page 49 Figure 6 Sphere of Influence of Le Grand Community Services District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Le Grand Community Services District Page 50 DETERMINATIONS (1) Growth and population projections for the affected area Significant growth is anticipated as the Le Grand Community Plan Update accommodates a population of approximately 3,679 people and the current population is 1,659 people. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The LGCSD encompasses the Le Grand community which is a designated DUC and DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Water and sewer facilities are considered adequate to meet current demand, but not all demand associated with anticipated future growth. Water infrastructure should be expanded by two wells or a combination of a well and storage tank to meet current fire water storage needs and future water demand, and wastewater infrastructure should acquire additional disposal area and upgrade or replace existing lift stations to meet sewer demand. (4) Financial ability of agencies to provide services. It is unknown if the District has any outstanding debts or if revenues are adequate to maintain current and anticipated operation. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The LGCSD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. The 2019 Le Grand Community Plan urban boundary has been reduced in several areas and includes two areas designated “Urban Reserve” (which are not anticipated to be developed over the life of the Community Plan). The Commission should consider modification of the LGCSD’s SOI for the areas removed from the Community Plan and possible expansion in areas in the Community Plan that were previously not located within the SOI, including portions of the Le Grand High School property. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Midway Community Services District Page 51 MIDWAY COMMUNITY SERVICES DISTRICT The District did not respond to LAFCO’s request for information or to follow-up inquiries. The information contained within this district summary is informed by information from the 2007 MSR, the City of Dos Palos EIR, and the City of Dos Palos Department of Utilities, the agency that manages both water and wastewater infrastructure for the Midway Community Services District. GOVERNANCE AND OPERATIONS The Midway Community Services District (MCSD) was established in 1967 pursuant to the Community Services District Law (Section 61000 of the Government Code). The District provides domestic water and sewage disposal services to the Midway community which encompasses approximately 684 acres located in the southwestern portion of Merced County between the City of Dos Palos and the unincorporated community of South Dos Palos. The boundary and SOI of the MCSD are identified in Figure 7. The community of Midway is not a County designated DUC; however, the methodology in the County SB 244 Analysis excludes DUCs located within City Limits and the SOI of a City. In 1991, the City of Dos Palos adopted a General Plan which encompasses the City and the unincorporated communities of Midway and South Dos Palos, with anticipation of annexation in the future. The unincorporated communities of Midway and South Dos Palos are identified as DUCS within the City of Dos Palos’ planning area.98 In addition, Midway is designated a DAC by the DWR.99 The District is governed by a five-member Board of Directors elected by voters residing within the District.100 The District does not maintain a website and was required to establish a website by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. The District is within the Delta Mendota Subbasin and is not a member of the Central Delta- Mendota Multi-Agency Groundwater Sustainability Agency (GSA). Additional information on the Central Delta-Mendota Multi-Agency GSA and progress on the GSP can be found at http://sldmwa.org/.101 The total expenses for FY2018-2019 was $81,126 which includes $48,950 for wastewater and $32,176 for water. The total revenue for FY2017-2018 was $142,874 which includes $71,437 for water and $71,437 for sewer. Revenue is attributed to water and sewer service fees, connection fees ($2,970.40 for water connections and $2,030.91 for sewer connections), and property taxes.102 Monthly billings are paid directly to the City of Dos Palos, which in turn reimburses the 98 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 18. 99 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 100 County of Merced Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24, 2007, page 29. 101 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 102 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Midway Community Services District Page 52 firm operating and maintaining the water treatment plant, water distribution system, and wastewater treatment plant. Any funds remaining are returned to the MCSD.103 It is unknown if the District receives any special assessments or other taxes, but the District does have $90,000 of existing debts from a 1990 USDA loan as the District’s share of the Wastewater Joint Powers Authority (JPA) with the City of Dos Palos and South Dos Palos County Water District. While the City of Dos Palos recently refinanced the City’s portion of the 40-year Wastewater JPA bond debt from a 6 percent rate down to a 3 percent rate, saving the City 15 percent in its remaining total debt, the Midway Community Services District declined to accept the City of Dos Palos’ offer to pay off its share of the debt as part of the City’s refinancing effort. It is also unknown how often the District conducts audit reports; however, the County Audit-Controller has indicated that the most recent profile received was for the year 2018.104 INFRASTRUCTURE, FACILITIES, AND SERVICES Water The MCSD does not maintain its own water infrastructure and is instead a participant in a Joint Powers Authority (JPA) involving the City of Dos Palos, the North Dos Palos Water District, the South Dos Palos County Water District, and Merced County for the provision of water. The MCSD provides water service to approximately 356 connections. Due to groundwater limitations, the JPA obtains surface water from the California Aqueduct through a surface delivery system using Central California Irrigation District canals. The water is delivered to the City by a 20-inch, 17.5-mile pipeline, and is treated at a plant operated by the City’s Utilities Department. The District has an allotment of capacity from the system as part of the JPA agreement, but the landowners within the district boundary must receive approval directly from the District for water connections. Due to the recent drought, the quality of water provided from the California Aqueduct varied as the quantity of water from the California Aqueduct was reduced. Water was supplied instead from the San Luis Reservoir which was low at the time and very high in organics. At one point, algae clogged both the City’s intake screens and the plant’s filtration system. This was resolved by when Congressman Jim Costa arranged to have the Aqueduct’s intake screens cleaned and the City of Dos Palos obtained a $300,000 State grant to replace the entire filtration system. Facilities are adequate to meet current demand; however, once all remaining vacant lots within the City are built, the City’s allotment of the treatment plant will reach peak capacity.105 The City of Dos Palos, on behalf of the JPA, is currently working towards obtaining $10 million to upgrade its water treatment plant. Improvement plans involve establishing two treatment plants which 103 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 15. 104 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. 105 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 15. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Midway Community Services District Page 53 would produce 2 million gallons each for a total capacity of 4 million gallons. Any additional future growth would need to fund a third treatment plant to increase capacity to 6 million gallons.106 In terms of service violations, there is no information regarding the MCSD on the State Water Resources Control Board’s Drinking Water Branch website or the California Integrated Water Quality System Project. Sewer The MCSD does not maintain its own wastewater infrastructure and is instead a participant in a JPA involving the City of Dos Palos and South Dos Palos County Water District for the provision of sewer service. The MCSD provides sewer service to 385 connections and is allotted 387 connections through the JPA Agreement.107 Sewage is handled through the City of Dos Palos’ sewage treatment plants and delivered through City maintained and operated sewer lines which span diameters between 4 and 15 inches. There are seven lift stations which convey the wastewater to a wastewater treatment facility located on the west side of Swift Road. The average daily flow to the facility is about 500,000 gpd, or 0.50 mgd, and the maximum capacity of the facility is 0.77 mgd. Expansion capacity can be doubled with the addition of two new large- berm post treatment basins.108 Although there is no current information regarding the MCSD’s allotment as part of the JPA, the MCSD 1984 Sphere Report indicated that the allotment was estimated based on the District’s population and the assumption that 150 gallons of wastewater are generated per person per day109 and the capacity listed in the 2007 MSR is 0.09 mgd.110 The City’s Wastewater Collection System Study reports that the existing sewer lines and lift stations are adequate given currently flow levels.111 DEMAND AND CAPACITY As of 2017, the City of Dos Palos has a population of approximately 5,400 people. According to the City of Dos Palos General Plan, the City was projected to have a population of 12,476 which included the anticipated annexation of the Midway and South Dos Palos communities.112 Growth has not been observed due to the lack of water treatment capacity and supply storage. Additional upgrades to both water and wastewater treatment facilities will be required to allow for growth. 106 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 107 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 108 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 17. 109 Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24, 2007, page 31. 110 Water and Sewer Service Provides Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24,2007, page 4. 111 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 17. 112 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 6. Economic & Planning Systems, Inc. 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Midway Community Services District Page 54 Table 11 Midway Community Services District Profile Midway Community Services District Agency Contact Annie Murchinson Agency Contact Title General Manager Address 21476 Reynolds Avenue South Dos Palos, CA 93665 Phone 209-392-3651 Email None/Unknown Website No Website District Engineer/Contact Garth Pecchenino Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Garth.Pecchenino@qkinc.com Agency Area Acres 684 Population Unknown Number of Water Connections 356 Number of Sewer Connections 385 Subbasin1 San Joaquin Valley - Delta-Mendota Groundwater Sustainability Agency1 Central Delta-Mendota Multi-Agency GSA Member of GSA?1 No Historical/Political Data Year of Formation 1967 Type of Agency Community Services District Enabling Act Community Services District Law, Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided sewer and potable water Authorized sewer and potable water Fiscal Total Annual Operating Revenues2 $142,874 (FY 2018/2019) Total Annual Operating Expenses2 $81,126 (FY 2018/2019) Primary Revenue Sources Enterprise services, connection fees,property taxes SOURCE: The District did not respond to LAFCO requests for information; all information, unless otherwise noted, is from prior MSR (2007) [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Midway Community Services District Page 55 Figure 7 Sphere of Influence of Midway Community Services District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Midway Community Services District Page 56 DETERMINATIONS (1) Growth and population projections for the affected area Significant growth is not anticipated due to lack of water and wastewater capacity. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of Midway is both a DAC and a designated DUC; however, it has not been identified in the County SB 244 Analysis as it is within the City of Dos Palos planning area. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Water and sewer facilities are considered adequate to meet current demand; however, the City of Dos Palos is planning on upgrading its water treatment plant and constructing two wastewater ponds to meet the City’s own anticipated growth and associated demand. (4) Financial ability of agencies to provide services. There is no known information on outstanding debts and insufficient information to determine if the District’s revenues are adequate to maintain current and anticipated operations and facility replacement costs. (5) Status of, and opportunities for, shared facilities. The District is involved with a JPA for water and sewer services; facilities are maintained and operated by the City of Dos Palos. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The MCSD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. According to the City of Dos Palos General Plan, the City anticipates annexing the community of Midway. At such a time, the Commission will consider dissolution of the MCSD. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. North Dos Palos Water District Page 57 NORTH DOS PALOS WATER DISTRICT GOVERNANCE AND OPERATIONS The North Dos Palos Water District (NDPWD) was established in 1976 pursuant to the County Water District Law (Section 30000 of the Water Code). The District provides domestic water service to residences, businesses, and industries to the approximately 143 acres surrounding the intersection of Elgin (Highway 33) and Carmellia Avenue, immediately north of the City of Dos Palos, including the community of North Dos Palos. Land use within the District is mainly agricultural, and residents are scattered along the two roads which traverse the District.113 The community of North Dos Palos is designated as DUC by the County SB 244 Analysis and a DAC by the DWR.114 The boundaries of the North Palos Water District are identified in Figure 8. The District is governed by a five-member Board of Directors, and there are currently two vacancies. The District indicates that the Board has never met. Additionally, the District does not maintain a website and will need to establish a website by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. The District is within the Delta Mendota Subbasin and is not a member of the Central Delta- Mendota Multi-Agency Groundwater Sustainability Agency (GSA). Additional information on the Central Delta-Mendota Multi-Agency GSA and progress on the GSP can be found at http://sldmwa.org/.115 The total expenses for FY2018-2019 was $1,656 and the total revenue for FY2018-2019 was $2,823.116 Revenue is attributed to water sales and $500 connection fees; the District does not collect a share of property taxes. Monthly billings are paid directly to the City of Dos Palos, which in turn reimburses the firm operating and maintaining the water treatment plant and water distribution system. Any funds remaining are returned to the NDPWD.117 It is unknown if the District has any outstanding debts. It is also unknown how often the District conducts audit reports; however, the County Audit-Controller has indicated that no audits have been submitted.118 INFRASTRUCTURE, FACILITIES, AND SERVICES The NDPWD does not maintain its own water infrastructure and obtains its water from the City of Dos Palos as a participant in a Joint Powers Authority (JPA) involving the City of Dos Palos, the Midway Community Services District, the South Dos Palos County Water District, and Merced County for the provision of water. 113 North Dos Palos Water District Sphere Report, October 1984. 114 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 115 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 116 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 117 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 15. 118 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. North Dos Palos Water District Page 58 Of the 2,260 connections currently served by the Dos Palos Water Treatment Plant, the NDPWD accounts for approximately 43 connections.119 Due to groundwater limitations, the JPA obtains surface water from the California Aqueduct through a surface delivery system using Central California Irrigation District canals. The water is delivered to the City by a 20-inch, 17.5-mile pipeline, and is treated at a plant operated by the City’s Utilities Department. The District has an allotment of capacity from the system as part of the JPA agreement, but the landowners within the district boundary must receive approval directly from the District for water connections. Due to the recent drought, the quality of water provided from the California Aqueduct varied as the quantity of water from the California Aqueduct was reduced. Water was supplied instead from the San Luis Reservoir which was low at the time and very high in organics. At one point, algae clogged both the City’s intake screens and the plant’s filtration system. This was resolved by when Congressman Jim Costa arranged to have the Aqueduct’s intake screens cleaned and the City of Dos Palos obtained a $300,000 State grant to replace the entire filtration system. Facilities are adequate to meet current demand; however, once all remaining vacant lots within the City are built, the City’s allotment of the treatment plant will reach peak capacity.120 The City of Dos Palos, on behalf of the JPA, is currently working towards obtaining $10 million to upgrade its water treatment plant. Improvement plans involve establishing two treatment plants which would produce 2 million gallons each for a total capacity of 4 million gallons. Any additional future growth would need to fund a third treatment plant to increase capacity to 6 million gallons.121 On the State Water Resources Control Board’s Drinking Water Branch website, there is no information about the NDPWD. On the website of the California Integrated Water Quality System Project reports, there is no information about the NDPWD. DEMAND AND CAPACITY The community of North Dos Palos situated on the northern city SOI boundary of the City of Dos Palos, adjacent to Highway 33. Limited growth has been observed because of the lack of water capacity and the area north of Carmellia Avenue is not planned for development in the County General Plan. The southern part of the District is located within the City of Dos Palos Planning area. It was anticipated in the 1984 Sphere Report for the NDPWD that the area would eventually be annexed into the City. 119 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 120 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 15. 121 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. North Dos Palos Water District Page 59 Table 12 North Dos Palos Water District Profile North Dos Palos Water District Agency Contact Allan Clark Agency Contact Title Board President 19772 S. Elgin Address Dos Palos, CA 93620 Phone 559-352-1472 Email None Website No Website District Engineer/Contact None Agency Area Acres 202 Population 50 Number of Water Connections 43 Number of Sewer Connections n/a Subbasin1 San Joaquin Valley - Delta-Mendota Groundwater Sustainability Agency1 the Central Delta-Mendota Multi- Agency GSA Member of GSA?1 No Historical/Political Data Year of Formation 1976 Type of Agency Water District County Water District Law, Water Enabling Act Code §30000 et seq. Governing Body District Board Agency Services Currently Provided domestic water service Authorized Services domestic water service Fiscal Total Annual Operating Revenues2 $2,823 (FY 2018/2019) Total Annual Operating Expenses2 $1,656 (FY 2018/2019) Primary Revenue Sources enterprise services, connection fees SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. North Dos Palos Water District Page 60 Figure 8 Sphere of Influence of North Dos Palos Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. North Dos Palos Water District Page 61 DETERMINATIONS (1) Growth and population projections for the affected area Growth is not anticipated due to a lack of water capacity and no sewer facilities. The portion of the District located north of Carmellia Avenue is designated Agricultural by the County General Plan. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of North Dos Palos is a designated DUC and a DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Water facilities are operated by the Joint Powers Authority (JPA) and are considered adequate to meet current demand; however, the City of Dos Palos is planning on upgrading its water treatment plant and constructing two wastewater ponds to meet the City’s own anticipated growth and associated demand. There are no other urban services provided within the District. (4) Financial ability of agencies to provide services. There is no known information on outstanding debts and insufficient information to determine if the District’s revenues are adequate to maintain current and anticipated operations and facility replacement costs; the District’s interview response stated that while the District does not have a reserve policy, there is a current reserve of $2,433.43. (5) Status of, and opportunities for, shared facilities. The District is involved with a JPA with the City of Dos Palos, the Midway Community Services District, the South Dos Palos County Water District, and Merced County for the provision of water; facilities are maintained and operated by the City of Dos Palos. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The NDPWD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. The portion of the NPWD located south of Carmellia Avenue is within the City of Dos Palos Planning Area and it can be expected that the City will eventually annex this portion of the District. The Commission may consider consolidation of the NPDWD with the City’s JPA operations for water supply. The portion of the District north of Carmellia Avenue is designated Agricultural in the County General Plan and is outside of the City’s growth area. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Planada Community Services District Page 62 PLANADA COMMUNITY SERVICES DISTRICT In 2015, an MSR was completed for the Planada Community Services District (PCSD). Since the MSR was completed five years ago and almost little to no development has occurred, PCSD was not included in this current round of MSR updates.122 Additionally, there is no need to amend the 2015 MSR or change the SOI boundary (which is based on the 2017 Planada Community Plan) For informational purposes, data from the 2015 MSR is shown below in Table 13 The Planada Community Services District (Planada CSD) was formed by the Merced County Board of Supervisors in 1967 pursuant to Section 61000 of the Government Code (Community Service District Law). In 1981, the District acquired the Planada Sanitary District and now currently provides both water and sewage services to community of Planada and few outlying areas, covering a total area of 945 acres serving 5,500 people. and mapped in Figure 9. The District does not maintain a website and was required to establish a website by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. The State Water Resources Control Board’s Drinking Water Branch website lists historical violations for the presence of various Analytes dating from 1993 through 2015, all of which have been corrected and have since achieved compliance.123 There were 164 historical violations for the wastewater treatment facility dating from 2014 through 2018 for deficient monitoring, order conditions, the presence of Category 1 and Category 2 pollutants, as well as the presence of other effluent violations.124 For additional details, see the adopted MSR dated April 15, 2015 (bound separately). 122 Planada Community Services District Municipal Service Review Final Report (EPS #141037), As Approved by LAFCO April 15, 2015. 123 Individual Water Districts Violations Detail: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=3049&tinwsys_st_co de=CA. 124 California Integrated Water Quality System Project reports for those related to the Planada Community Services District can be found at https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=273182&reportID=9286899. Some of these violations have also been included in news reports (https://abc30.com/news/turning-planadas-waste-into-farmers- water/677536/). EPS also reported on violations in the 2010 Municipal Service Review (http://www.lafcomerced.org/pdfs/MunicipalServiceReviews/PCSD_Final_MSR.pdf). Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Planada Community Services District Page 63 Table 13 Planada Community Services District Profile Planada Community Services District Agency Contact Daniel Chavez Agency Contact Title District Manager Address 103 Live Oak Street Planada, CA 95365 Phone 209-382-0213 Email danl.chavez@sbcglobal.net Website No website District Engineer/Contact Lee Fremming Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Lee.Fremming@qkinc.com Agency Area Acres 945 Population 5,500 Number of Water Connections 1,300 Number of Sewer Connections 1,181 Subbasin1 San Joaquin Valley - Merced Groundwater Sustainability Agency1 Merced Irrigation-Urban GSA Member of GSA?1 Yes Historical/Political Data Year of Formation 1967 Type of Agency Community Services District Enabling Act Community Services District Law, Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided water and sewer Authorized water and sewer Fiscal Total Annual Operating Revenues2 $2,536,972 (FY 2018/2019) Total Annual Operating Expenses2 $1,816,446 (FY 2018/2019) Primary Revenue Sources sales; rents, lease, franchises SOURCE: The District did not respond to LAFCO requests for information; all information, unless otherwise noted, is from prior MSR (2007) [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Planada Community Services District Page 64 Figure 9 Sphere of Influence of Planada Community Services District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Planada Community Services District Page 65 DETERMINATIONS (1) Growth and population projections for the affected area Little growth had occurred due to sewer plant capacity limitations. The 2017 Planada Community Plan now projects a population of 6,255 people and growth is occurring again with an approved 72 unit subdivision under construction in 2020. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The PCSD encompasses the Planada community which is a designated DUC and DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. The 2015 MSR stated that facilities were considered adequate to meet current demand, but upgrades would be required to meet anticipated demand associated with growth. (4) Financial ability of agencies to provide services. The 2015 MSR stated that the District maintains debt; however, revenues are adequate to maintain current operations and pay off debt accrued. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified due to the District’s remote location. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The PCSD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. The 2015 MSR was based on the 2003 Planada Community Plan which has since been updated in 2017. The 2017 Planada Community Plan includes a minor expansion of the urban boundary. Based on current District capacity and limited growth, there is no need to modify the Sphere of Influence at this time. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 66 SANTA NELLA COUNTY WATER DISTRICT GOVERNANCE AND OPERATIONS The Santa Nella County Water District (SNCWD) was formed in 1965 pursuant to the County Water District Law (Section 30000 of the Water Code). The District currently provides commercial and residential water and wastewater service to 1,663 acres of the Santa Nella Community Specific Plan area (which is comprised of 2,560 acres). In order for the Plan areas outside the District boundary to receive District services, annexation is required. In October 2007, LAFCO approved an expansion of the District’s Sphere of Influence (SOI) so that the entirety of the Community Plan area is included within the District’s SOI. The District boundary and SOI are identified in Figure 10. According to the County’s SB 244 Analysis, the community of Santa Nella is not a designated DUC. The District is governed by a five-member Board of Directors who meet on the second Thursday of each month. The District maintains a website (https://www.sncwd.com) in compliance with SB 929. The District is compliant with the Brown Act and meeting agendas are posted 72 hours prior to each meeting. The District also posts meeting agendas online and agendas remain on the website for 30 days.125 The District is within the Delta Mendota Subbasin and is a member of the Central Delta-Mendota Multi-Agency Groundwater Sustainability Agency (GSA). Additional information on the Central Delta-Mendota Multi-Agency GSA and progress on the GSP can be found at http://sldmwa.org/.126 The total expenses for FY2018-2019 was $1,489,704, including $610,819 for water and $878,885 for sewer. The total revenue for FY2018-2019 was $1,559,600, including $679,093 for water and $880,507 for sewer.127 Revenue is attributed to a share of property taxes and service fees which vary between metered and flat rate residential and commercial uses. The District maintains a debt to the State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (CWSRF) for the upgrade of its Wastewater Treatment Plant (balance of $1,644,276) and the SWRCB Safe Drinking Water State Revolving Fund (SDSRF) for water planning (balance $24,900), and no additional debt is anticipated. The District has indicated that revenues are adequate to maintain current operating costs and anticipated operating costs will be paid for by developer connection fees. The District conducts annual audit reports and the 2018 is the most recent profile received by the County Audit-Controller.128 125 Interview Response by District General Manager, Amy Montgomery, 2018, page 1. 126 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 127 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 128 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 67 DISTRICT BOUNDARY OVERLAP129 A majority of the Community Plan area is also within the boundaries of the San Luis Water District, a California Water District (San Luis). There is a significant overlap of approximately 1,800 acres between the boundaries of the two districts. San Luis was formed in 1951 and is legally authorized to provide service to an area of 66,449 acres, though not all of this land is actually served by San Luis facilities. The majority of San Luis’ current population is also within the SNCWD’s service area; San Luis estimates that it has fewer than 600 current residents who do not live within the Santa Nella District. San Luis has several hundred agricultural connections. Excluding connections served through the District, San Luis has fewer than 100 municipal water connections. San Luis has one water treatment facility serving the San Luis Hills subdivision and adjacent commercial development, located south of Santa Nella at Highway 152 and Highway 33. San Luis obtains its water supply through a contract with the United States Bureau of Reclamation. The water is diverted by San Luis from the Delta Mendota Canal and the San Luis Canal. San Luis sells a portion of its raw water supply to SNCWD for use within the portion of the District that is also within San Luis’ boundary. The District operates a water treatment and distribution system which turns this raw water into the potable water serving residents and businesses in Santa Nella. San Luis and the District recognize that the overlap in the boundaries and service areas of the two districts is unnecessary and creates administrative difficulties and additional expenses that will be exacerbated as the Community Plan area urbanizes. Therefore, San Luis and the District have agreed to carry out a reorganization of the two public districts so that all land within the Community Plan area will be within the boundaries of the District and no land within the Community Plan area will be within San Luis. In addition, the two districts have an application with the U.S. Bureau of Reclamation to get a partial assignment for that portion of the San Luis water supply contract transferred to the District that is related to the lands being detached from San Luis. The District, thereafter, will directly purchase water from the Bureau of Reclamation rather than through San Luis and San Luis will no longer have any role or obligation in the provision of water to lands within the District. The reorganization removing San Luis territory from Santa Nella and annexing 910 acres into SNCWD was approved by LAFCO in October 2007. However, due to delays in obtaining Bureau of Reclamation approval, 10 extensions have been approved by the Commission and the proposal is still pending as of 2020. In addition to the lands within San Luis’ boundary, the Santa Nella Community Plan area also includes territory within the New Del Puerto Water District (Del Puerto) and the Central California Irrigation District (CCID). Del Puerto was formed in 1994 through the consolidation of 11 water districts. It encompasses an unincorporated area of around 45,000 acres, located primarily in western Stanislaus County, with some additional territory in Merced and San Joaquin Counties. Under a contract with the U.S. Bureau of Reclamation, Del Puerto provides over 140,000 acre-feet of water annually to 175 customers who purchase irrigation water for agricultural purposes. Del Puerto is governed by a seven-member Board of Directors and has four full-time employees. Portions of Del Puerto are 129 County of Merced Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), as Approved by LAFCO May 24, 2007, pages 38-41. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 68 also located within the City of Patterson’s SOI, resulting in ongoing detachments as territory is annexed to the City.130 The SNCWD currently serves some development within Del Puerto at the northwest corner of the Santa Nella Community Plan area but relies on its own well water as the raw water supply. The portion of Del Puerto that falls within the Santa Nella Community Plan area has been in the SNCWD SOI since 1984. At some point in the future, a reorganization proposal is expected to be submitted to Merced County LAFCO to detach approximately 43 acres within the Community Plan area from Del Puerto. It is anticipated that this future reorganization will not have any impact on the water supply currently available to water users in Del Puerto as the subject land does not have any Del Puerto Water allotment. The CCID provides agricultural irrigation water within a service area of 47,949 acres. When the CCID has excess water available, it also provides water to approximately 14,584 acres of “Class II ground” located outside its boundaries. Ongoing annexations by surrounding cities such as Los Banos, Mendota, Dos Palos, Gustine, and Newman have resulted in detachments from the CCID.131 The SNCWD does not presently serve any land within the CCID boundary, which are located in the northeast and east portion of the Community Plan area, north of I-5. At some time in the future, a reorganization proposal is expected to be submitted to Merced County LAFCO to detach all lands within the Community Plan area that are also within CCID and to annex these lands to the District. The owners of the land detached from CCID will not seek to have their allocated share of CCID water transferred to the District. That water supply will stay with CCID and, therefore, will, in a very small way, enhance the water supply available to the lands remaining in CCID. However, the owners of the CCID land to be annexed to the SNCWD will need to demonstrate that additional water supply can be provided to the SNCWD to support the development proposed. INFRASTRUCTURE, FACILITIES, AND SERVICES Water The District currently provides water service to approximately 722 connections.132 The District’s water and production and distribution facilities include the San Luis Canal Water Treatment Plant (WTO). The plant began operation in 1987 and is designed to accommodate 1.2 mgd maximum flow rate, with a peak capacity of 1.8 mgd. Current demand is estimated to be 0.27 mgd.133 The major components of the water system include a raw water pump station, two treatment units, a filtered water pump station and storage tank, two backwash water reclamation basins, and two sludge dying lagoons. Water is treated using a variety of processes, including chemical flocculation, sedimentation, filtration, and chlorination. The community’s existing water distribution system is a loop system with 4-inch to 12-inch laterals serving a mobile home park, the highway commercial 130 Stanislaus County Local Agency Formation Commission, Resolution No. 2003-22, LAFCO Service Review – New Del Puerto Water District. 131 Interviews with Maria Segueira and Chris White, CCID, 15 Aug. 2005. 132 Interview Response by District General Manager, Amy Montgomery, 2018, page 2. 133 Interview Response by District General Manager, Amy Montgomery, 2018, page 2. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 69 area north of Henry Miller Road, and the single-family subdivisions west of Highway 33. A low pressure water transmission pipeline carries water north from the WTP to a blending/distribution site located south of Bayview Road, west of State Highway 33. Additional facilities include a 330,000-gallon surface water storage tank, a 10,000-gallon groundwater storage tank, and seven booster pumps. The District has one groundwater well that provides additional water blended with its treated water to service some of its commercial customers located along Highway 33, northeast of Interstate 5. The well provides water to supplement the District’s surface water supplies and serves property outside the permitted place of use for the San Luis Water District surface water supplies controlled by Santa Nella, including lands within the Del Puerto Water District. With the exception of this one well, the District’s surface water supply is provided by San Luis from San Luis’ Central Valley Project supply. As a parallel action with the proposed reorganization, the District will obtain a contract with the Bureau of Reclamation by assignment of a portion of the San Luis Water District’s Central Valley Project water service contract or a portion of a new “replacement contract” which may replace the water service contract. That contract will also provide the District with all the pro rata contract water supply that San Luis currently provides to lands within the Plan area that are being detached from San Luis. The District’s maximum surface water supply upon completion of the reorganization and water service contract assignment or repayment contract assignment will be approximately 4,456 acre- feet. This is a maximum allowance subject to annual reduction by the Bureau of Reclamation. As mentioned above, additional well water is pumped as necessary to meet the needs of the Del Puerto area, outside of the San Luis District, and for community-wide supplies when surface water allocations are reduced. Historically, the District has received, on average, around 80 percent of municipal water supply that is allocated by San Luis to lands within the District. But in the 2014-2016 drought years, supplies were averaging only 65 percent of the maximum rate. The percentage available is dependent on drought conditions and varies from year to year. In the recent Water Master Plan prepared by Black Water Consultant Engineers, Inc. (adopted by the District Board on February 14, 2019), the average daily demand was identified as 0.78 mgd.134 The District has been in negotiations with the Volta Community Services District to achieve a consolidation of their districts under the State Water Resources Control Board’s program to help struggling water systems in disadvantaged communities under SB 88 (Sections 116680-116684 of the California Health and Safety Code). The SNCWD, acting as Lead Agency, adopted a Mitigated Negative Declaration in compliance with CEQA in April 2017, for the construction of a five-mile pipeline connecting the communities’ water systems, installing a new well in Volta, and installing increased storage and pumping facilities. The consolidation efforts were still underway in 2019, with the ultimate success dependent on securing grant funds from the SB 88 program.135 The current improved governance of the Volta CSD and its ability to meet new State analyte chromium 134 Santa Nella Water Master Plan prepared by Black Water Consulting Engineers, Inc. Adopted by the District Board on February 14, 2019. 135 Interview with District General Manager, Amy Montgomery, May 28, 2019, Executive Officer, Bill Nicholson. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 70 water quality standards has kept the consolidation off the State’s mandatory consolidation list. However, as indicated above, the District’s water system has been out of compliance with State standards and a second well in the Volta Community has been identified as the solution for the SNCWD. The 4.8 mile connection between the two districts has a price tag of over $10,000,000. The State Water Resources Control Board’s Drinking Water Branch website lists historical violations dating from 2002 through 2014, which have since been corrected, the District is seeking State Revolving Loan Funds to help finance the addition of a new groundwater well in Volta for both water supply and quality improvements.136 Sewer The SNCWD’s Wastewater Treatment Plant (WWTP) is situated on a 100-acre parcel, of which, approximately 40 acres comprise the treatment and storage area and 60 acres is pasture land for effluent discharge/disposal.137 The plant is located on Bayview Road, on the north side of the San Luis Wasteway, opposite the mobile home park. The WWTP facilities include a headworks, six ponds – two lined treatment ponds and four unlined storage ponds, an effluent/recirculation pump station, and a tailwater pump station. The WWTP process produces disinfected secondary treatment (Title 23) water through an aerated pond system. The WWTP has a permitted treatment capacity of 0.4 mgd. The current design capacity is 0.34 mgd. The WWTP storage volume can store a total of 147.5 acre-feet, with 46.4 acre-feet in treatment ponds and 101.1 acre-feet in storage ponds. The District’s existing sewer collection system consists of approximately 8.8 miles of 6-inch to 12- inch diameter gravity sewer pipelines and 1.7 miles of 6-inch to 10-inch diameter force mains. There are five active lift stations, located around the community, which pump the wastewater directly into the wastewater treatment plant headworks. In terms of service violations, the California Integrated Water Quality System Project reports there were four violations in 2010 and 2012 at the Santa Nella Wastewater Treatment Facility.138 However, the treatment plant was upgraded in 2013 and these issues have been resolved with no recent violations reported. 136 Individual Water District Violations: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=3055&tinwsys_st_co de=CA. 137 Santa Nella Sewer Master Plan prepared by Black Water Consulting Engineers, Inc. Adopted by the District Board on February 14, 2019. 138 Santa Nella Wastewater Treatment Facility Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=273186&reportID=5756790. Santa Nella County Water District Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=645102&reportID=5756790. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 71 DEMAND AND CAPACITY The Santa Nella Specific Plan accommodates significant growth, with 6,483 housing units, 18,940 residents, and 5.6 million square feet of nonresidential uses at plan buildout. This represents a major increase from the 2010 Santa Nella population, estimated at 1,380 residents living in 600 dwelling units (estimated from County 2016 Housing Element). At plan buildout, average day water demand is projected to be 4.45 mgd; projected maximum day demand is 5.17 mgd, and projected peak hour demand is 7.76 gpm. Minimum storage recommended at buildout is approximately 5.3 million gallons. The District requires that future groundwater or surface water sources be secured by proponents of future development. In addition, the existing water system has no available storage capacity without completion of the Blending/Distribution site and new well No. 2 (Volta) improvements.139 The 2019 Sewer Master Plan prepared by Black Water Consulting Engineers, Inc., identified future improvements over 10- and 25-year planning horizons. The 25-year horizon would correspond with the development planned in the Santa Nella Community Specific Plan approved by Merced County in March 2001. In the more immediate 10-year planning horizon, the Waste Water Treatment Plant (WWTP) will require an expansion of capacity of 0.52 mgd. Future development through the 25-year horizon will require facility upgrades at the WWTP to meet projected average dry weather flows (ADWF), estimated to be 1.61 mgd. Additional treatment capacity of approximately 0.75 mgd is required to accommodate the 25-year planning horizon ADWF, or a total of 1.27 mgd expansion above the current 2020 capacity. Previous engineering reports considered additional treatment and storage ponds to accommodate the required ADWF to meet future growth using the same treatment process at the current WWTP. However, this option takes land from the existing disposal area, and the 2019 Sewer Master Plan considers other upgrade options that provide higher quality effluent with a smaller treatment footprint. Potential improvements to the WWTP include use of an activated sludge and clarifier system, or membrane bioreactor (MBR) process. The first option would significantly reduce the pond volume needed for treatment and allow more space for effluent storage and disposal because existing lagoons can be converted to an aeration basin. Additionally, both options have the ability to produce tertiary treated water, further increasing the disposal options. The District has obtained grant planning funds through the State Water Resources Control Board Clean Water State Revolving Fund (CWSRF) program to complete a Recycled Water Feasibility Study to evaluate the existing wastewater treatment system and identify improvements and related costs to produce, store, and distribute disinfected tertiary recycled water. The intent is to supplement irrigation demands and meet the anticipated reduction in availability of potable water as a result of drought intensity in California. The Santa Nella Community Specific Plan had estimated approximately 17% of the projected water demand would come from recycled water. In order to meet Title 22 requirements for tertiary wastewater, recommended improvements will require disinfection of the effluent. The District’s available disposal options for disinfected tertiary treated wastewater include irrigation at the golf course and public landscaped areas. 139 Santa Nella Water Master Plan prepared by Black Water Consulting Engineers, Inc. Adopted by the District Board on February 14, 2019. Page 8-6. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 72 Table 14 Santa Nella County Water District Profile Santa Nella County Water District Agency Contact Amy Montgomery Agency Contact Title General Manager Address 12931 S. Hwy 33 Santa Nella, CA 95322 Phone 209-826-0920 Email amontgomery@sncwd.com Website www.sncwd.com District Engineer/Contact Jeff Black (Aja Verburg) Black Water Consulting Engineers, Inc. 605 Standiford Avenue Suite N Modesto, CA 95340 209-753-0078 aja@blackwater-eng.com Agency Area Acres 1,663 Population 1,380 Number of Water Connections 722 Number of Sewer Connections 697 Subbasin1 San Joaquin Valley - Delta-Mendota Groundwater Sustainability Agency1 Central Delta-Mendota Member of GSA?1 Yes Historical/Political Data Year of Formation 1965 Type of Agency County Water District Enabling Act County Water District Law, Water Code §30000 et seq. Governing Body District Board Agency Services Currently Provided water and sewer Authorized Services water and sewer Fiscal Total Annual Operating Revenues2 $1,559,600 (FY 2018/2019) Total Annual Operating Expenses2 $1,489,704 (FY 2018/2019) Primary Revenue Sources enterprise services, property taxes SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 73 Figure 10 Sphere of Influence of Santa Nella County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 74 DETERMINATIONS (1) Growth and population projections for the affected area The District has seen limited growth since adoption of the 2000 Specific Plan (current population around 1,300) due to lack of water supply; however, the District does anticipate major growth as the Santa Nella Community Specific Plan accommodates a population of 18,940 at plan buildout. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of Santa Nella is not a DUC but is a DAC, and no other DUCs/DACs are within proximity of the District. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. The existing facilities and resources are adequate to meet current demand although an additional water supply is needed. The District has updated its water and sewer infrastructure master plans as well as exploring plans for special development fees/developer dedications/other mechanisms to accommodate growth. (4) Financial ability of agencies to provide services. The District indicated that current revenues are adequate to maintain current and anticipated operations and facility replacement costs, but it is also exploring developer connection fees to accommodate future growth and future facility expansion. (5) Status of, and opportunities for, shared facilities. The District has explored the possibility of consolidating facilities with the Volta CSD, including performing CEQA to connect the communities and install a new well and pump stations. However, the effort has been delayed while the District explores funding sources options in consultation with the State Water Resources Control Board under SB 88. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The SNCWD maintains a website (www.sncwd.com) to provide information for the public. The District and the San Luis Water District have received LAFCO approval to “reorganize the two public districts so that all land within the Santa Nella Community Plan area will be within the boundaries of Santa Nella and no land within the Plan area will be within San Luis.” In addition, Del Puerto and CCID lands that are within the Specific Plan area will be detached from Del Puerto as future development takes place. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. The reorganization approved by LAFCO in 2007 involved the annexation of 910 acres into the SNCWD and the detachment of 5,864 acres from the San Luis Water District. While the two districts Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Santa Nella County Water District Page 75 have been negotiating with the U.S. Bureau of Reclamation to obtain a partial assignment of the San Luis Water District federal water contract to the SNCWD, LAFCO has approved 10 extensions ranging from 6 months to two years, extending the period to record the reorganization to October 2020. (8) Sphere of Influence review. Merced LAFCO has approved a SOI amendment and reorganization in 2007 so that all land within the Santa Nella Community Plan area are within the boundaries of the District. However, all lands within the SOI have not been annexed into the District, pending finalization of the aforementioned reorganization involving the San Luis Water District. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Snelling Community Services District Page 76 SNELLING COMMUNITY SERVICES DISTRICT GOVERNANCE AND OPERATIONS The Snelling Community Services District (SCSD) was formed in 1974 pursuant to the Community Services District Law (Section 61000 of the Government Code). The SCSD provides wastewater service to approximately 0.75 square miles (480 acres) centered on the community of Snelling, with a service population is over 150 people.140 Snelling is designated as DUC by the County SB 244 Analysis and a DAC by the DWR.141 The District boundary and SOI are identified in Figure 11. The District is governed by a five-member Board of Directors who meet every month. In compliance with the Brown Act, the District posts its agenda 72 hours prior to each meeting.142 The District does not maintain a website and as required to establish a website by January 1, 2020 to be in compliance with SB 929. Additionally, once a website is established, agendas must be posted online to comply the Brown Act. The District is within the Turlock Subbasin and is not a member of either the East and West Turlock Subbasin GSAs (Turlock Subbasin GSAs).143 The Turlock Subbasin GSAs are in the process of developing a single GSP to manage groundwater quantity and quality for the Turlock Subbasin through 2042. Information on the GSAs, meetings and agendas, public workshops, and progress on the GSP is available at https://turlockgroundwater.org/. The total expenses for FY2018-2019 was $118,971 and total revenue for FY2018-2019 was about $91,432. Revenue is largely attributed to $25 monthly sewer service charge.144 The District collects a share of the property tax, rents, leases, interest income.145 The District also maintains a $129,766.50 annual reserve. The District does not currently have any outstanding debt or need to incur debt in the near future.146 Audit reports are conducted yearly and submitted to the County Audit-Controller for review; the most recent profile received was for 2018.147 140 Interview Response by District Secretary, Sherry Richards, 2018, page 1. 141 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 142 Interview Response by District Secretary, Sherry Richards, 2018, page 1. 143 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 144 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 145 County of Merced Water and Sewer Service Providers Municipal Service Review, Prepared by EPS (#15029), as Approved by LAFCO May 24, 2007. 146 Interview Response by District Secretary, Sherry Richards, 2018, page 3. 147 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Snelling Community Services District Page 77 INFRASTRUCTURE, FACILITIES, AND SERVICES The SCSD provides wastewater services to approximately 122 connections. The District’s wastewater infrastructure includes a wastewater treatment plant, piping, and a 15-acre distribution pond for effluent discharge, of which seven acres is considered usable. In 2007, the District’s treatment plant was reported to have a maximum capacity of 60,000 gpd (0.06 mgd) and has established a policy that it will not exceed 75 percent of this maximum capacity (45,000 gpd / 0.045 mgd) to ensure that the plant can continue to function during high spike periods of emergencies.148 This maximum wastewater flow rate policy has since decreased to a rate of 43,000 gpd (0.043 mgd). The District estimates the average demand is 18,500 gpd (0.019 mgd). As such, current infrastructure can be deemed sufficient for current and anticipated operations.149 With regards to water district violations listed on the State Water Resources Control Board’s Drinking Water Branch website, there are no records for the SCSD. With regards to violations listed in California Integrated Water Quality System Project reports, there were no violations at the Snelling Wastewater Treatment Facility nor at the SCSD.150 DEMAND AND CAPACITY The community of Snelling is designated as a Rural Center in the 2030 Merced County General Plan. This designation is reserved for areas that “lack public sewer and/or water systems, have a stable or declining population, and have a limited level of public and commercial services.” The County does not target Rural Centers for growth, and density is limited to one dwelling unit per acre. New residential uses are generally discouraged or intended to be agricultural-supporting.151 Significant growth is not anticipated within the SCSD boundary or SOI. If growth were to occur, upgrades to current facilities will be required.152 148 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-74 to LU-75. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 149 Interview Response by District Secretary, Sherry Richards, 2018, page 3. 150 Snelling Wastewater Treatment Facility Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=273189&reportID=5214764. Snelling Community Services District Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=645349&reportID=5214764. 151 2030 Merced County General Plan, adopted December 10, 2013, pages LU-14. http://www.countyofmerced.com/100/General-Plan. 152 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-73 to LU-74. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Snelling Community Services District Page 78 Table 15 Snelling Community Services District Profile Snelling Community Services District Agency Contact Sherry Richards Agency Contact Title District Secretary Address P.O. Box 323 Snelling, CA 95369 Phone 209-761-1655 Email snellingcsd@yahoo.com Website none District Engineer/Contact Bill Latronica P.O. Box 323 Snelling, CA 95369 209-563-6525 snellingcsd@yahoo.com Agency Area Acres 480 Population 150 Number of Water Connections n/a Number of Sewer Connections 122 Subbasin1 San Joaquin Valley - Turlock Groundwater Sustainability Agency1 Turlock Subbasin GSAs Member of GSA?1 No Historical/Political Data Year of Formation 1974 Type of Agency Community Services District Enabling Act Community Services District Law, Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided wastewater service Authorized Services wastewater service Fiscal Total Annual Operating Revenues2 $91,432 (FY 2018/2019) Total Annual Operating Expenses2 $118,971 (FY 2018/2019) Primary Revenue Sources enterprise services, property taxes SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Snelling Community Services District Page 79 Figure 11 Sphere of Influence of Snelling Community Services District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Snelling Community Services District Page 80 DETERMINATIONS (1) Growth and population projections for the affected area No significant growth is anticipated as the community of Snelling is designated as a Rural Center in the General Plan and is not targeted for growth. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The SCSD encompasses the community of Snelling which is a designated DUC and DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Wastewater facilities are considered adequate to meet current and future demand. The District policy which sets 75 percent maximum capacity threshold and major growth is not anticipated. (4) Financial ability of agencies to provide services. The District’s has stated that revenues are adequate to maintain current and anticipated operations and facility replacement costs and that there are no outstanding debts. (5) Status of, and opportunities for, shared facilities. No opportunities for shared facilities have been identified. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The SCSD does not maintain a website and was required to create one by January 1, 2020. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. There is no current basis to modify the SOI of the District as the community is not targeted for growth. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 81 SOUTH DOS PALOS COUNTY WATER DISTRICT The District did not respond to LAFCO’s request for information or to follow-up inquiries. The information contained within this district summary is informed by information from the 2007 MSR, the City of Dos Palos EIR, and the City of Dos Palos Department of Utilities, the agency that manages both water and wastewater infrastructure for the South Dos Palos County Water District. GOVERNANCE AND OPERATIONS The South Dos Palos County Water District (South Dos Palos CWD) was established in 1957 pursuant to the County Water District Law (Section 30000 of the Water Code) to provide domestic water and sewage disposal services to the South Dos Palos community. The community is located at the southern edge of Merced County and encompasses approximately 285 acres. The South Dos Palos CWD boundary and SOI are identified in Figure 12. The community of South Dos Palos is not a County designated DUC; however, the methodology in the County SB 244 Analysis excludes DUCs located within City Limits and the SOI of a City. In 1991, the City of Dos Palos adopted a General Plan which encompasses the City and the unincorporated communities of Midway and South Dos Palos, with anticipation of annexation in the future. As such, the unincorporated communities of Midway and South Dos Palos are identified as DUCS within the City of Dos Palos’ planning area.153 Additionally, South Dos Palos is designated a DAC by the DWR.154 The District is governed by a five-member Board of Directors elected by voters residing within the District.155 Information on the Board meetings or the District is limited, and the District does not maintain a website. The District was required to establish a website by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. The District is within the Delta Mendota Subbasin and is not a member of the Central Delta- Mendota Multi-Agency Groundwater Sustainability Agency (GSA). Additional information on the Central Delta-Mendota Multi-Agency GSA and progress on the GSP can be found at http://sldmwa.org/.156 Total expenses for FY 2018-2019 was $81,906 which includes $52,207 for water and $29,699 for sewer. The total revenue for FY2018-2019 was $73,155 which includes $46,518 for water and $26,637 for sewer. Revenue is attributed to water and sewer service fees, connection fees, and property taxes.157 Monthly billings are paid directly to the City of Dos Palos, which in turn reimburses the firm operating and maintaining the water treatment plant, water distribution system, and sewer treatment plant and collection system. Any funds remaining are returned to the South Dos Palos CWD. The District owes approximately $100,000 to the USDA for its share of 153 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 18. 154 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 155 Interview Response by Board President, Michelle Allison, 2018, page 1. 156 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 157 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 82 a 1990 loan to the Wastewater Joint Powers Authority (JPA) with the City of Dos Palos and the Midway Community Services District. While the City of Dos Palos recently refinanced the City’s portion of the 40-year Wastewater JPA bond debt from a 6% rate down to a 3% rate, saving the City 15% in its remaining total debt, the South Dos Palos Water District declined to accept the City of Dos Palos’ offer to pay off its share of the debt as part of the City’s refinancing effort. It is unknown how often the District conducts audit reports; however, the County Audit-Controller has indicated that the most recent audit profile received was for 2017.158 INFRASTRUCTURE, FACILITIES, AND SERVICES Water In 1984, South Dos Palos had its own water delivery system, but the system was closed due to poor water quality and maintenance. The water system had been designed to accommodate 600 connections, but the distribution system did not provide enough pressure. The District negotiated for a Community Development Block Grant to improve its water system and had plans to upgrade its water system by looping its water lines and installing larger diameter water pipes.159 In 1988, the District entered into a JPA involving the City of Dos Palos, the Midway Community Services District, the North Dos Palos Water District, and Merced County for water provisions. Through the JPA, the South Dos Palos CWD provides service to 247 connections.160 Due to groundwater limitations, the JPA obtains surface water from the California Aqueduct through a surface delivery system using Central California Irrigation District canals. The water is delivered to the City by a 20-inch, 17.5-mile pipeline, and is treated at a plant operated by the City’s Utilities Department. The District has an allotment of capacity from the system as part of the JPA agreement, but the landowners within the district boundary must receive approval directly from the District for water connections. Due to the recent drought, the quality of water provided from the California Aqueduct varied as the quantity of water from the California Aqueduct was reduced. Water was supplied instead from the San Luis Reservoir which was low at the time and very high in organics. At one point, algae clogged both the City’s intake screens and the plant’s filtration system. This was resolved by when Congressman Jim Costa arranged to have the Aqueduct’s intake screens cleaned and the City of Dos Palos obtained a $300,000 State grant to replace the entire filtration system. Facilities are adequate to meet current demand; however, once all remaining vacant lots within the City are built, the City’s allotment of the treatment plant will reach peak capacity.161 The City of Dos Palos is currently working towards obtaining $10 million to upgrade its water treatment plant. Improvement plans involve establishing two treatment plants which would produce 2 million 158 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. 159 South Dos Palos County Sphere Report, October 1984. 160 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 161 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 15. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 83 gallons each for a total capacity of 4 million gallons. Any additional future growth would need to fund a third treatment plant to increase capacity to 6 million gallons.162 Sewer The South Dos Palos CWD does not maintain its own wastewater treatment plant and is part of a JPA involving the City of Dos Palos and Midway Community Service District for the provision of sewer service. As part of the JPA agreement, the District was allotted 334 connections and it currently provides sewer service to 204 connections.163 Sewage is handled through the City of Dos Palos’ sewage treatment plants and delivered through City maintained and operated sewer lines which span diameters between 4 and 15 inches. There are seven lift stations which convey the wastewater to a wastewater treatment facility located on the west side of Swift Road. The average daily flow to the facility is about 500,000 gpd, or 0.5 mgd, and the maximum capacity of the facility is 0.77 mgd. Expansion capacity can be doubled with the addition of two new large- berm post treatment basins.164 Although there is no current information regarding the South Dos Palos CWD’s allotment as part of the JPA, the capacity listed in the 2007 MSR is 0.08 mgd and the average demand was 0.035 mgd.165 The City’s Wastewater Collection System Study reports that the existing sewer lines and lift stations are adequate given current flow levels.166 However, Dwayne Jones, formerly with the City of Dos Palos, has stated that the sewer main is too flat to transport effluent properly. DEMAND AND CAPACITY According the City of Dos Palos General Plan, the City was projected to have a population of 12,476, including the anticipated annexation of the Midway and South Dos Palos communities.167 Growth has not been observed due to the lack of water treatment capacity and supply storage. As of 2017, the City of Dos Palos has a population of approximately 5,400 people and additional upgrades to both water and wastewater treatment facilities will be required to allow for growth. 162 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 163 Email Communication with Rickey Marshall, Director of Utilities, dated June 13, 2019. 164 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 17. 165 Water and Sewer Service Provides Municipal Service Review, Prepared by EPS (#15029), As Approved by LAFCO May 24,2007, page 4. 166 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 17. 167 City of Dos Palos Municipal Service Review, Prepared by EPS (#151046), As Approved by LAFCO December 13, 2017, page 6. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 84 Table 16 South Dos Palos County Water District Profile South Dos Palos County Water District Agency Contact Jeannine Montez Agency Contact Title None/Unknown Address PO Box 278 South Dos Palos, CA 93665 Phone 209-392-6307 Email None/Unknown Website No Website District Engineer/Contact Garth Pecchenino Quad Knoph, Inc. 2816 Park Avenue Merced, CA 95348 209-723-2066 Garth.Pecchenino@qkinc.com Agency Area Acres 285 Population Unknown Number of Water Connections 247 Number of Sewer Connections 204 Subbasin1 San Joaquin Valley - Delta-Mendota Groundwater Sustainability Agency1 the Central Delta-Mendota Multi- Agency GSA Member of GSA?1 No Historical/Political Data Year of Formation 1957 Type of Agency County Water District County Water District Law, Water Enabling Act Code §30000 et seq. Governing Body District Board Agency Services Currently Provided water and sewer Authorized water and sewer Fiscal Total Annual Operating Revenues2 $73,155 (FY 2018/2019) Total Annual Operating Expenses2 $81,906 (FY 2018/2019) Primary Revenue Sources enterprise services, connection fees, property taxes SOURCE: The District did not respond to LAFCO requests for information; all information, unless otherwise noted, is from independent research or [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 85 Figure 12 Sphere of Influence of South Dos Palos County Water District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. South Dos Palos County Water District Page 86 DETERMINATIONS (1) Growth and population projections for the affected area Significant growth is not anticipated due to lack of water and wastewater capacity. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of South Dos Palos is both a DAC and a designated DUC; however, it has not been identified in the County SB 244 Analysis as it is within the City of Dos Palos planning area. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Water and sewer facilities are considered adequate to meet current demand; however, the City of Dos Palos is planning on upgrading its water treatment plant and constructing two wastewater ponds to meet the City’s own anticipated growth and associated demand. Additionally, staff has stated that the sewer main is too flat to transport effluent efficiently. (4) Financial ability of agencies to provide services. There is no known information on outstanding debts and insufficient information to determine if the District’s revenues are adequate to maintain current and anticipated operations and facility replacement costs. (5) Status of, and opportunities for, shared facilities. The District is involved with a JPA for water and sewer services; facilities are maintained and operated by the City of Dos Palos. (6) Accountability for community service needs, including governmental structure and operational efficiencies. The South Dos Palos CWD does not maintain a website and was required to create one by January 1, 2020 and post meeting agendas online as required by SB 929 and the Brown Act. No additional changes to the District’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. According to the City of Dos Palos General Plan, the City anticipates annexing the community of Midway. At such a time, the Commission may consider dissolution of the South Dos Palos CWD. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 87 VOLTA COMMUNITY SERVICES DISTRICT GOVERNANCE AND OPERATIONS The Volta Community Services District (Volta CSD) was formed in 1989 pursuant to the Community Service District Law (Government Code Section 61000). The purpose of the District’s formation was to acquire a grant for a community water system and to provide a more predictable water supply. Prior to formation, ground water problems and a highwater table in this vicinity limited the type of industrial and commercial development which was permitted.168 The District provides water services to approximately 52 acres, including the community of Volta, and serves about 150 people. Volta is designated as DUC by the County SB 244 Analysis, but is not a designated a DAC by the DWR.169 A map of the boundaries of the District and its Sphere of Influence (SOI) is shown in Figure 13. The District is governed by a five-member Board of Directors who meet on the first Thursday in February, May, August, and November. There is currently one vacancy on the Board (with four active members) and the new vacancy will be filled by voters. Meeting agendas are posted 72 hours prior to each meeting. While the District maintains a website at www.voltawater.com, meeting agendas are not posted online as required by the Brown Act.170 The District is within the Delta Mendota Subbasin and is not a member of the Central Delta- Mendota Multi-Agency Groundwater Sustainability Agency (GSA). Additional information on the Central Delta-Mendota Multi-Agency GSA and progress on the GSP can be found at http://sldmwa.org/.171 In FY 2018-2019, the total District expenses were $19,106 and the total revenue was $25,337.172 The District maintains an annual reserve of $44,086.57. Most of the revenue is attributed to water service charges which include a flat rate of $40/month for residential uses, $60/month for commercial uses, and $200/month for schools. The District does not receive a share of the property tax, nor does the District collect any special assessments or other taxes. The District conducts a biennial audit and thus far, there are no outstanding debts; nor is it expected that the District will incur debt in the near future. Audit reports are conducted every two years and will start to submit to the County Audit-Controller for review every five years as of 2018.173 168 Executive Officer’s Report: Formation of the Volta Community Services District, November 1988. 169 Disadvantaged Communities Mapping Tool: https://gis.water.ca.gov/app/dacs/. 170 Interview Response by Board General Manager, Johnny Leonard, 2018, pages 1. 171 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 172 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov/. 173 Interview with the County Audit-Controller, Lisa Cardella-Presto, August 21, 2019. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 88 INFRASTRUCTURE, FACILITIES, AND SERVICES The District provides domestic water to approximately 52 acres and 150 people through 51 connections. Currently, Volta CSD facilities maintain one community well which pumps groundwater from the Delta Mendota Groundwater Basin. Production capacity of the well is unknown; however, the District has indicated that average annual usage is approximately 11 million gallons. According to the California Department of Water Resources (DWR), “the Delta Mendota Groundwater [Sub]basin is considered a high priority groundwater [sub]basin, due to severe overdraft from both urban and agricultural uses.[…]the Delta Mendota Groundwater Basin is being depleted at a rate of 17,000 acre-feet per year (afy) for urban uses and 491,000 afy for agricultural uses, In conjunction with recent years of drought, pumping groundwater has caused ground subsidence in the basin vicinity.” In the 2030 Merced County’s SB 244 Analysis, the County stated that the area had been placed under Stage 4 Drought Alert, which “has placed mandatory conservation measures into place to conserve and limit the use of water.” The Analysis goes on to state that, “Even with the mandatory conservation measures in place, the existing service is adequate for the current population, but it has been noted that any future connections to the system will require an upgrade of facilities.” 174 Additionally, the Analysis highlights the need for a back-up well as required by DWR. At this time, the District maintains a temporary agreement with an industrial tomato processing plant (Morning Star) to access one of their wells in an emergency. The tomato processing plant is located within the community of Volta but is neither within the District’s boundary or SOI.175 The District and the Santa Nella County Water District (SNCWD) have been investigating consolidation of their district under the State Water Resources Control Board’s program to help struggling water systems in disadvantaged communities under SB 88 (Sections 116680-116684 of the California Health and Safety Code). The SNCWD, acting as Lead Agency, adopted a Mitigated Negative Declaration in compliance with CEQA in April 2017, for the construction of a five mile pipeline connecting the communities’ water systems, installing a new well in Volta, and installing increased storage and pumping facilities.176 The consolidation efforts have been postponed or potentially terminated. The current improved governance of the Volta CSD and its ability to meet new State analyte chromium water quality standards has terminated the State’s participation in the consolidation. Without State funding for required infrastructure connections between the two districts, the consolidation is unlikely to move forward. 174 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-73 to LU-74. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 175 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-73 to LU-74. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 176 Interview with District General Manager, Amy Montgomery, May 28, 2019, Executive Officer, Bill Nicholson. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 89 While the backup well arrangement between the Volta CSD and Morning Star is a satisfactory interim measure, the consolidation with the existing water system of the SNCWD is the perfect solution. If the consolidation does not occur, the District SOI should be modified to include the Morning Star property (which is currently a “doughnut hole” in the SOI, located on the east side of Volta Road). With regards to water district violations listed on the State Water Resources Control Board’s Drinking Water Branch website, there was a historical violation for the presence of Analyte Chromium, Hex between 2015 through 2017; however, there has been no action taken. In addition, there was a violation for the presence of Analyte Coliform in 1996 and 1997, but this has since achieved compliance.177 With regards to violations listed in California Integrated Water Quality System Project reports, there is no record of the Volta CSD. DEMAND AND CAPACITY Volta CSD boundary and SOI consists of approximately 52 acres which includes the community of Volta, a designated Rural Center. In the 2030 Merced County General Plan , the “Rural Center” designation is given to “areas to lack public sewer and/or water systems, have a stable or declining population, and have a limited level of public and commercial services.” Additionally, “While new residential uses are discouraged in Rural Center, these areas do include some existing very low- density, large-lot rural residential neighborhoods. The County may allow some limited new housing in these areas that support agricultural-based employment and services; however, the housing will not exceed a density of one dwelling unit per acre.”178 As such, significant growth is not anticipated within the Volta CSD boundary or SOI. If growth were to occur, upgrades to current facilities will be required.179 177 Individual Water District violations: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=7213&tinwsys_st_co de=CA. 178 2030 Merced County General Plan, adopted December 10, 2013, pages LU-14. http://www.countyofmerced.com/100/General-Plan. 179 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-73 to LU-74. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 90 Table 17 Volta Community Services District Profile Volta Community Service District Agency Contact Johnny Leonard Agency Contact Title General Manager P.O. Box 2406 Address Los Banos, CA 93635 Phone 209-829-3406 Email info@voltawater.com Website www.voltawater.com District Engineer/Contact n/a Agency Area Acres 52 Population 150 Number of Water Connections 51 Number of Sewer Connections n/a Subbasin1 San Joaquin Valley - Delta-Mendota Groundwater Sustainability Agency1 Central Delta-Mendota MemberofGSA?1 No Historical/Political Data Year of Formation 1989 Type of Agency Community Service District Enabling Act Community Services District Law, Government Code §61000 et seq. Governing Body District Board Agency Services Currently Provided water Authorized Services water Fiscal Total Annual Operating Revenues2 $25,337 (FY 2018/2019) Total Annual Operating Expenses2 $19,106 (FY 2018/2019) Primary Revenue Sources water sales SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 91 Figure 13 Sphere of Influence of Volta Community Services District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 92 DETERMINATIONS (1) Growth and population projections for the affected area No significant growth is anticipated as the community of Volta is designated as a Rural Center in the General Plan and is not targeted for growth. (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The Volta CSD encompasses the community of Volta which is a designated DUC, but is not a designated DAC. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Current facilities are sufficient despite drought conditions, mandatory conservation measures, and lack of a backup well for emergencies; however, any additional connections will require an upgrade to facilities. (4) Financial ability of agencies to provide services. The District has no outstanding debts and the District’s revenues are adequate to maintain current and anticipated operations and facility replacement costs. (5) Status of, and opportunities for, shared facilities. The District maintains a temporary agreement with a tomato processing plant (Morning Star) to access one of the plant’s wells in an emergency; however, the plans to consolidate with Santa Nella County Water District (SNCWD) would solve the District’s lack of a backup well. However, as of 2020, consolidation efforts have been postponed or potentially terminated. The current improved governance of the Volta CSD and its ability to meet new State analyte chromium water quality standards has terminated the State’s participation in the consolidation. Without State funding for required infrastructure connections between the two districts, the consolidation is unlikely to move forward. (6) Accountability for community service needs, including governmental structure and operational efficiencies. Information on governmental structures and operations is available via the District’s website (www.voltawater.com) and Board agendas posted on the District’s bulletin board. Plans to consolidate with the SNCWD will provide operational efficiencies and opportunities for facility upgrades; however, as of 2020, the consolidation efforts have been postponed or potentially terminated as described above in (5). (7) Any other matter related to effective or efficient service delivery, as required by commission policy. Consolidation with the SNCWD will provide a permanent, viable solution to Volta CSD’s lack of a backup well. The consolidation efforts have been postponed or potentially terminated as described Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Volta Community Services District Page 93 above in (5). If the consolidation does not occur, the District SOI should be modified to include the Morning Star property with whom the District maintains a temporary agreement for emergency access to their property’s well. (8) Sphere of Influence Review. No change to the SOI is warranted at this time. At the time of further consolidation or abandonment of consolidation efforts, the SOI boundary should be revisited. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 94 WINTON WATER AND SANITARY DISTRICT GOVERNANCE AND OPERATIONS The Winton Water and Sanitary District (WWSD) was formed in 1952 pursuant to the California Sanitary District Act of 1923 to provide sanitary sewer services to the community of Winton. In 1985, the District purchased the Winton Water Company, a private water company, at a cost of slightly over $1 million dollars. Special legislation was passed in 1982 to allow the Winton Sanitary District to furnish water for any present or future beneficial use and exercise any powers authorized under County Water District Law (Division 12, Section 30000 of the Water Code). However, the District was allowed to be governed in all respects as a sanitary district under Water Code Section 6400 (Section 6512.5 of the Health and Safety Code). This did not require approval of Merced LAFCO.180 Today, the District continues to provide both sanitary sewer and water services to Winton, which includes approximately 640 acres and 8,900 people. The Urban Community of Winton and the WWSD are in the northern part of Merced County, approximately seven miles northwest of the City of Merced and one-mile north of the City of Atwater. The District’s boundary and SOI are identified in Figure 14. According to the County’s SB 244 Analysis, the community of Winton is a designated DUC which includes the entire SOI of the WWSD.181 The District is governed by a five-member Board of Directors who meet on the first and third Thursday of each month. In compliance with both SB 929 and the Brown Act, the District maintains a website (https://wintonwsd.com) and posts agendas 72 hours prior to the meeting at the meeting location and online.182 The District is within the Merced Subbasin and is a member of Merced Irrigation-Urban Groundwater Sustainability Agency (MIUGSA).183 The MIUGSA, in collaboration with the Merced Subbasin GSA and the Turner Island Water District GSA, has adopted a GSP to manage ground water quantity and quality for the Merced Subbasin. Information on the GSP collaborative efforts can be found at http://mercedsgma.org/ and specific information on MIUGSA is available at http://www.miugsa.org/. For the FY2018-2019, total expenses were $2,831,637 which includes $1,096,631 for water and $1,735,006 for sewer. The total revenue for $2,923,469 which includes $956,987 for water and $1,966,482 for sewer.184 Revenue is attributed to water and sewer service charges and a share of property taxes. The District does not collect any other special assessments or other taxes. Monthly water rates differ depending on customer. For a typical ¾” meter, multifamily dwelling 180 Interview Response by Board President, Michelle Allison, 2018, page entitled “History”. 181 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-58 to LU-60. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 182 Interview Response by Board President, Michelle Allison, 2018, page 1. 183 Department of Water Resources GSA Map Viewer: https://sgma.water.ca.gov/webgis/. 184 Special Districts Financial Data, California State Controller’s Office: https://districts.bythenumbers.sco.ca.gov. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 95 units, up to 3,000 cubic feet - $12.55 and $1.46 per 100 cubic feet for 3,001 cubic feet and over. Single family and duplexes range from $16.68 for 0 to 1,000 cubic feet up to $3.03 per 100 cubic feet for 30,000 cubic feet and over. Business/Churches/Halls/etc. range from $23.64 for 0-4,000 cubic feet up to $3.03 per 100 cubic feet for 30,000 cubic feet and over. Sewer charges also depend on the customer. For a typical ¾” meter, the monthly rate is $49.16 for 0-4,000 cubic feet; $65.84 for 4,001-10,000 cubic feet; $68.51 for 10,001-30,000 cubic feet; and $70.08 for 30,000 cubic feet and over.185 The District conducts an annual audit and currently, there is no outstanding debt. A Capital Improvement Plan is currently under development and may dictate a need to incur debt for future improvements.186 INFRASTRUCTURE, FACILITIES, AND SERVICES Water The District provides water service to approximately 640 acres and 8,900 people through 2,900 connections. Currently, the District’s water facilities include three wells, with depths ranging from 285 to 935 feet, and 33 miles of water main.187 The production capacity is 1,400 gallons per minute from each of its three wells or a total of 6.05 mgd. The daily average usage is approximately 1.56 mgd, with an annual usage is approximately 569.3 million gallons.188 According to the County’s SB 244 Analysis, “the three wells that pump water to Winton customers is extracted from the Merced Groundwater Basin.” Facilities are considered adequate to meet current demand; however, there is a moratorium on new connections.189 With regard to water district violations, the State Water Resources Control Board’s Drinking Water Branch website lists a current violation for the presence of Analyte 1,2,3 – Trichloropropane since 2018. In addition, there was a violation for the presence of Analyte Coliform between 1989 and 1996, but this has since achieved compliance. There was also a historical violation for the presence of Analyte Nitrate in 2002, which has also since achieved compliance.190 185 Interview Response by Board President, Michelle Allison, 2018, Appendix Exhibit Tables A, B, and C. 186 Interview Response by Board President, Michelle Allison, 2018, page 3. 187 Interview Response by Board President, Michelle Allison, 2018, page 2. 188 Merced County SB244 Analysis: Disadvantaged Unincorporated Communities, adopted July 12, 2016, pages LU-58 to LU-60. http://www.lafcomerced.org/pdfs/DUC_Analysis.pdf. 189 Interview Response by Board President, Michelle Allison, 2018, page 2. 190 Individual Water District violations: https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=3052&tinwsys_st_co de=CA. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 96 Sewer The WWSD does not own or operate its own wastewater treatment facility; instead, the District maintains three lift stations which assist with the collection and transportation of wastewater from approximately 2,900 connections to the City of Atwater Wastewater Treatment Plant for treatment. The City of Atwater Wastewater Treatment Plant reserves a portion of its designed capacity, 1 mgd, for the treatment of WWSD’s wastewater. The District is reported to have a sewer flow rate of 0.66 mgd which is a decrease from 2006 when the District was reported to have 0.71 mgd sewer flow rate.191 As such, sewer facilities are considered to meet current demand. As a result of this limited remaining capacity, the District has investigated construction their own wastewater treatment plant in conjunction with the County, which would also serve the Castle Commerce Center and Airport. With regards to violations listed in the California Integrated Water Quality System Project reports, there were two violations for the City of Atwater Treatment Plant during 2019, which is the facility treating wastewater for the WWSD.192 DEMAND AND CAPACITY Winton is one of the largest unincorporated communities in Merced County. The County is preparing an update to the Winton Community Plan which can accommodate a population of approximately 15,000 people. The current population is close to 9,000 residents. The County contracted with the District’s Engineer, QK Inc., to prepare a water supply assessment regarding water supply for the growth in Winton and water and wastewater master plans identifying treatment plant capacity and sewer and water line sizing to accommodate the growth identified in the Community Plan.193 191 Interview Response by Board President, Michelle Allison, 2018, pages 2-3. 192 City of Atwater Wastewater Treatment Facility Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportN ame=facilityAtAGlance&placeID=747519&reportID=14140 193 Agreement for Special Services Between Merced County and QK, Inc.: http://web2.co.merced.ca.us/boardagenda/2018/20181120Board/225166/225172/225236/224098/C ON224098.pdf Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 97 Table 18 Winton Water and Sanitary District Profile Winton Water and Sanitary District Agency Contact Michelle Allison Agency Contact Title Board President Address P.O. Box 970 Winton, CA 95388 Phone n/a Email n/a Website www.wintonwsd.com District Engineer/Contact Lee Fremming Quad-Knopf 2816 Park Avenue Merced, CA 95348 209-723-2066 leef@quadknopf.com Agency Area Acres 640 Population 8,900 Number of Water Connections 2,900 Number of Sewer Connections 2,900 Subbasin1 San Joaquin Valley - Merced Groundwater Sustainability Agency1 Merced Irrigation-Urban GSA Member of GSA?1 Yes Historical/Political Data Year of Formation 1952 Type of Agency Sanitary District Enabling Act Sanitary District Act of 1923, Government Code §6400 et seq. Governing Body District Board Agency Services Currently Provided water and wastewater Authorized Services water and wastewater Fiscal Total Annual Operating Revenues2 $2,923,469 (FY 2018/2019) Total Annual Operating Expenses2 $2,831,637 (FY 2018/2019) Primary Revenue Sources enterprise services, property taxes SOURCE: Unless otherwise noted, all information provided by Agency Interview Response received in 2018. [1] https://water.ca.gov/Programs/Groundwater-Management/SGMA- Groundwater-Management/Groundwater-Sustainable-Agencies [2] State Controller's Office Special Districts Financial Data: https://districts.bythenumbers.sco.ca.gov May-20 Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 98 Figure 14 Sphere of Influence of Winton Water and Sanitary District Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx County of Merced Water & Sewer Providers Municipal Service Review September 17, 2020 III. Winton Water and Sanitary District Page 99 DETERMINATIONS (1) Growth and population projections for the affected area Significant growth is anticipated in the Winton area, as the County is preparing an update to the Winton Community Plan which can accommodate a population of approximately 15,000 people (from a population of 9,000 residents). (2) The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the sphere of influence. The community of Winton is designated as a DUC, which includes District’s entire sphere of influence. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. Water and sewer facilities are considered adequate to meet current demand, but not all demand associated with anticipated future growth. The WWSD has been investigating construction of its own wastewater treatment plant rather than continue to connect to the City of Atwater’s Plant. (4) Financial ability of agencies to provide services. The District has no outstanding debts and the District’s revenues are adequate to maintain current and anticipated operations and facility replacement costs, but a “capital improvement plan is being determined”. (5) Status of, and opportunities for, shared facilities. The District relies on the City of Atwater’s wastewater treatment plant for sewage treatment, and no additional opportunities for new shared facilities have been identified. (6) Accountability for community service needs, including governmental structure and operational efficiencies. Information on governmental structures and operations is available via the District’s website (https://wintonwsd.com) and Board agendas posted on the District’s bulletin board. No changes to Winton’s governance or operations are pending or proposed. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. No other issues have been identified. (8) Sphere of Influence review. There is no current basis to modify the District’s SOI. The Commission could consider a modification when the Winton Community Plan Update is completed and if the Community Plan urban growth boundary changes. Economic & Planning Systems, Inc. Z:\Shared\Projects\Oakland\171000s\171106_Merced MSR Update\Report\Final Draft_2020September\171106 Merced Urban Water Districts_Final Report_2020September17_clean.docx