Napa River Reclamation Disctrict No. 2109 MSR and SOI Update (2016)

Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County LOCAL AGENCY FORMATION COMMISSION OF NAPA COUNTY Political Subdivision of the State of California We Manage Government Boundaries, Evaluate Municipal Services, and Protect Agriculture NAPA RIVER RECLAMATION DISTRICT NO. 2109 MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE Prepared in accordance with Government Code Sections 56425 and 56430 Final Report December 2016 LAFCO of Napa County Commissioners Staff / Administrative Office Diane Dillon, Chair, County Member Brendon Freeman, Executive Officer Greg Pitts, Vice Chair, City Member Kathy Mabry, Commission Secretary Juliana Inman, Commissioner, City Member Jennifer Gore, Commission Counsel Brian J. Kelly, Commissioner, Public Member Brad Wagenknecht, Commissioner, County Member Joan Bennett, Alternate Commissioner, City Member 1030 Seminary Street, Suite B Keith Caldwell, Alternate Commissioner, County Member Napa, California 94559 Gregory Rodeno, Alternate Commissioner, Public Member www.napa.lafco.ca.gov 1 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County TABLE OF CONTENTS Chapter Page I. EXECUTIVE SUMMARY……………………………………….………… 3 California Environmental Quality Act………………………………………. 4 II. MUNICIPAL SERVICE REVIEW……………………….………..……… 5 District Profile………………………………………………………………… 5 Overview……………………………………………………………………… 6 Municipal Services…………………………………………………………… 9 Service Area and Population…………………………………………………. 12 Governance…………………………………………………………………… 14 Finances………………………………………………………………………. 16 III. MUNICIPAL SERVICE REVIEW DETERMINATIONS………………. 20 IV. SPHERE OF INFLUENCE REVIEW…………………………..……...... 24 V. SPHERE OF INFLUENCE RECOMMENDATION AND DETERMINATIONS……………………………………………….……… 28 VI. REFERENCES……………………………………………………………… 29 2 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County I. EXECUTIVE SUMMARY This Municipal Service Review (MSR) and Sphere of Influence (SOI) Update is presented as part of a process mandated by Sections 56425 and 56430 of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH). MSRs are intended to provide a Local Agency Formation Commission (LAFCO) with a comprehensive analysis of services provided by the local agency under review. This review will provide LAFCO of Napa County with the information and analysis necessary to evaluate existing boundaries and services. The MSR makes determinations in each of seven mandated areas of evaluation, providing the basis for LAFCO to review proposed changes to a service provider’s boundaries or SOI. The seven areas of evaluation are listed below: 1. Growth and population projections for the affected area 2. Location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence 3. Present and planned capacity of public facilities and adequacy of public services including infrastructure needs or deficiencies 4. Financial ability of agency to provide services 5. Status of, and opportunities for, shared facilities 6. Accountability for community service needs, including government structure and operational efficiencies 7. Any other matter related to effective or efficient service delivery, as required by commission policy An MSR is intended to provide the following benefits to the agencies under review: 1. Provide a broad overview of agency operations including type and extent of services provided 2. Serve as a prerequisite for a sphere of influence update (included herein) 3. Evaluate governance options and financial information 4. Demonstrate accountability and transparency to LAFCO and to the public 5. Allow agencies to compare their operations and services with other similar agencies An SOI is defined as “a plan for the probable physical boundary and service area of a local agency or municipality as determined by the Commission.” LAFCO is required to adopt an SOI for each city and special district under its jurisdiction. When reviewing and determining SOIs for these service providers, LAFCO will consider and make recommendations based on a review of each of the following factors: 1. The present and planned land uses in the area 2. The present and probable need for public services and facilities in the area 3. The present capacity of public facilities and adequacy of public services that the agency provides 4. The existence of any social or economic communities of interest in the area if LAFCO determines that they are relevant to the service provider 5. The presence of disadvantaged unincorporated communities for those agencies that provide water, wastewater, or structural fire protection services 3 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County This report comprehensively reviews municipal services provided by the Napa River Reclamation District No. 2109 (NRRD). This report also includes a review of the NRRD’s SOI and proposes potential sphere amendments. The Commission most recently prepared an agency-specific MSR for NRRD in 2005. The Commission also prepared a comprehensive countywide sanitation and wastewater treatment study in 2005 that includes additional information and determinations for NRRD. NRRD’s SOI was originally established by the Commission in 1985 and affirmed with no changes in 2007. This report includes draft determinations and recommends the expansion of NRRD’s SOI to include an additional 0.4 acres that comprise the District’s administrative office. This recommendation is based on the administrative office’s inclusion with NRRD’s sewer service area and jurisdictional boundary. Further, no new land use or municipal service authority would result from adding the 0.4 acres into NRRD’s SOI. CALIFORNIA ENVIRONMENTAL QUALITY ACT The California Environmental Quality Act (CEQA) is contained in Public Resources Code Section 21000, et seq. Under this law, public agencies are required to evaluate the potential environmental effects of their actions. The MSR component of this report is exempt from CEQA under a Class 6 categorical exemption. CEQA Guidelines Section 15306 states that “Class 6 consists of basic data collection, research, experimental management, and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource.” It should be noted that when LAFCO acts to update an SOI for NRRD, CEQA requirements must be satisfied. The staff recommendation to update NRRD’s SOI in include 0.4 acres that comprise the District’s administrative office would be exempt from further review under CEQA pursuant to California Code of Regulations Section 15061(b)(3). This finding would be based on the Commission determining with certainty that the recommended expansion of NRRD’s SOI would have no possibility of significantly effecting the environment given no new land use or municipal service authority is granted. 4 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County II. MUNICIPAL SERVICE REVIEW DISTRICT PROFILE Type of District: Reclamation District Enabling Legislation: Reclamation District Act, Division 15 California Water Code Functions/Services: Domestic sewer and limited reclamation Main Office: 1501 Milton Road, Napa, CA 94559 Email: pennynrrd@msn.com Phone No.: (707) 255-2996 Web Site: www.nrrd2109.org Assistant District Manager/ District Secretary: Penny Wilson Chief Plant Operator: Ralph Loveless Treatment Plant Operator: Mike Wilson Governing Body: Board of Trustees (landowner-voter system) Meeting Schedule: First Thursday of every month at 7:00 p.m. Meeting Location: Edgerly Island Volunteer Fire Station 1598 Milton Road, Napa, CA 94559 Date of Formation: 1974 Principal County: Napa County District Boundary: 74 acres District Sphere: 54 acres 2016-2017 Budget: $194,800 District Board Members: Jay Gardner, Chair Dave Abblett, Trustee Ana Chretien, Trustee Drew Ely, Trustee Frank Lagorio, Trustee 5 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County OVERVIEW The Napa River Reclamation District No. 2109 (NRRD) was formed in 1974 as an independent special district. NRRD provides sewer and limited reclamation services to an unincorporated community in southern Napa County. NRRD is located approximately eight miles southwest of the City of Napa along the western shoreline of the Napa River. Open- space, pasture, and marsh characterize unincorporated areas to the north, west, and south of NRRD. The District is bisected by a Southern Pacific Railroad crossing that separates the two subdivisions comprising its service area. There are presently 135 developed lots within NRRD, the majority of which are used as permanent single-family residences. NRRD currently has an estimated permanent resident service population of 340 within an approximate 0.1 square mile jurisdictional area. Formation and Development NRRD was formed in 1974 as the Edgerly Island Reclamation District (EIRD) to provide property owners the ability to enhance flood protection against the Napa River. The impetus to form EIRD occurred one year earlier after a series of winter storms swelled the Napa River and contributed to the failure of a portion of the levee. The subdivision that constituted the boundary of EIRD was approved by the Napa County Board of Supervisors on April 11, 1950 and involved the creation of 112 lots. Just weeks after the subdivision was completed and before any individual lots were transferred to separate owners, the owner of the subdivided parcels recorded a Declaration of Establishment of Basic Restrictions (“Restrictions”), which among other things, required subsequent owners to maintain the levee on their lot. Despite the anticipated seasonal use of the lots when the subdivision was approved, the majority of developed lots in the subdivision had been converted for year- round uses by the 1960s. These Restrictions expired as of 1970. Prior to the formation of a reclamation district, a group of property owners known as the “Napa River Association” served as an informal community association for Edgerly Island. Activities undertaken by the Napa River Association included organizing flood control efforts and interacting with outside officials with regard to local service issues. In addition, the Napa County Flood Control and Water Conservation District (NCFCWCD) previously operated a pump station, which provided a supplemental form of flood control. The pump station was funded through an annual assessment paid by local property owners as part of a zone of benefit established by NCFCWCD in 1952. The zone of benefit was dissolved and the pump station was turned over to NRRD following the District’s formation. The decision to form a reclamation district followed a review by a consultant retained by the County of Napa to evaluate organized flood control alternatives for Edgerly Island. The review, which was requested by property owners, noted that the area was below the tide level of the Napa River. It also noted that the island was susceptible to flooding because several property owners had not properly maintained or repaired their portion of the levee. The review concluded that there was an immediate need for the formation of a public agency capable of providing uniform and long-term flood control for the island. It was recommended that property owners petition LAFCO for the formation of a reclamation district pursuant to Division 15 of the California Water Code. 6 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Following its formation in 1974, EIRD, which was later renamed NRRD after the incorporation of Ingersoll Tract in 1984, began providing levee control for Edgerly Island through an advisory role. Actual maintenance of the levee remained the responsibility of individual property owners. This service was accomplished by recommending a 10-foot height standard consistent with an engineer’s report completed in 1984 by Bracewell Engineering, and noting properties whose levees fell below this standard. NRRD also placed orange elevation markers on Edgerly Island in 1984 to help property owners identify the recommended levee height. These markers were placed with the assistance of NCFCWCD. The markers were re-surveyed to account for soil settlement in 1994 and 2009. In an effort to get property owners to improve the levees, NRRD would previously issue notices to the affected property owner demanding that they make necessary improvements. In 2003 when some of these notices went unaddressed, the District filed public nuisance actions to force a couple of property owners to make the requested improvements. In 2004, the Napa County Superior Court determined that the District did not have the authority to bring those public nuisance actions and the cases were dismissed. This left NRRD without a viable means to enforce uniform standards. The lone reclamation service presently provided by NRRD involves the operation of the pump station inherited from NCFCWCD to remove flood and storm water out of the roadside drainage ditch on Edgerly Island and the re-surveying of the existing orange markers for the levee height. In addition to operating the pump station, NRRD provides sewer service for all developed lots within its service area. NRRD began providing sewer service in 1984 following a special amendment to the California Water Code. This special amendment was enacted by the California Legislature to allow NRRD to address a public health notice issued by the Napa County Health Department. The health notice, which resulted in a building moratorium between 1976 and 1984, was issued after the Health Department determined that a number of private septic systems were failing and posed a contamination threat to local groundwater supplies on Edgerly Island. Water service to the Edgerly Island area is provided by two private water companies, the Meyers Water Company and the Milton Road Water Company. Both private water companies draw their water supplies from local wells. The expansion of NRRD’s powers to include sewer service coincided with its annexation of the “Ingersoll Subdivision.” The Ingersoll Subdivision, which is adjacent to Edgerly Island and immediately north of the railroad crossing, was approved by the Napa County Board of Supervisors as part of two development proposals in 1946 and 1949. As in the case of Edgerly Island, it was originally anticipated that the 49-lot Ingersoll Subdivision would serve seasonal uses. However, by the 1960s, the majority of developed lots in the subdivision had also been converted for year-round uses. Annexation proceedings involving the Ingersoll Subdivision to NRRD were completed in 1984. Flood and Inundation Challenges The U.S. Geological Survey Bay Area predicts the lower Napa River could see an increase of 39 inches over the next 100 years, indicating a potentially significant need for enhanced reclamation services pertaining to levee control. The San Francisco Bay Conservation and Development Commission (BCDC) predicts the sea level in the Bay Area could rise up to 55 inches over the next 100 years. Information provided by BCDC and the Office of Coastal Management illustrates that portions of Napa County, particularly along the Napa River, may be subject to increased flooding with as few as 12 inches of sea level rise. An engineering study prepared in 1984 by Bracewell Engineering determined the levee is subject 7 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County to significant subsidence representing approximately one inch of settlement per year due to its low elevation and direct proximity to the Napa River. A failure in the levee system during a flood event could result in inundation of the sewer system and present a threat to the health and safety of residents in the community. NRRD is also subject to flooding and inundation from marshlands to the west of the community near the wastewater treatment and disposal facilities. These lands are owned by the California Department of Fish and Wildlife and NCFCWCD. LAFCO staff has observed that several property owners have constructed decks, docks, and walkways that may need to be removed, whether temporarily or permanently, in order to rebuild the levee to current standards. NRRD has previously evaluated community support for an annual parcel assessment to fund an organized levee control program. In 1994, the Army Corps of Engineers estimated improvements to just the levee system to the east of Milton Road would cost six million dollars. Significant cost variables include environmental considerations, permit requirements, and soil conditions. In March 2006, the community held a voice vote pertaining to a change in governance structure that would reorganize NRRD to become a community services district with no active reclamation powers. The overwhelming preference was to maintain NRRD’s governance structure as a reclamation district. Additionally, the community formed a Community Revitalization Committee that distributed a questionnaire to all property owners. The majority of respondents expressed potential support for an assessment if an effective reclamation plan, which at a minimum would include an organized levee control program, could be identified and implemented. NRRD is currently evaluating options and associated costs to provide organized levee control. The United States Army Corps of Engineers, the California Coastal Conservancy, and the California Department of Fish and Wildlife are collectively implementing the Napa Sonoma Marsh Restoration project. This project involves the restoration of nearly 10,000 acres of wetlands and associated habitats within the former Cargill salt pond complex in the North Bay. Phase One was completed in 2006 by the State of California and involved the opening of 3,000 acres of salt ponds to full tidal action. Phase Two was completed in 2007 by the State of California and involved the restoration of 1,700 acres of managed ponds to provide waterfowl and shorebird habitat. Phase Three commenced in 2014 and involves the restoration of the final 1,900 acres and bittern removal from one of the ponds. Phase Three is under construction and expected to be completed in the near future. Separately, the Sonoma County Water Agency constructed a recycled water pipeline to deliver water to the mixing chamber at two ponds to aid in the dilution and discharge of pond bittern. The Napa Sonoma Marsh Restoration project will presumably contribute to reducing the risk of flooding and inundation from marshlands to the west of the community near NRRD’s wastewater treatment and disposal facilities. 8 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County MUNICIPAL SERVICES Pursuant to the Reclamation District Act, the District is authorized to do all things necessary to accomplish the purpose for which it was formed. Specific powers are identified below.  To provide for the construction, maintenance, and operation of reclamation works necessary for the unwatering and watering of district land. Reclamation works is defined under California Water Code as public works and equipment necessary for the unwatering, watering, or irrigation of district lands and other district operations.  To provide for the disposal of sewage, industrial waste, or other waste along with the design, finance, construction, operation, and maintenance of sewage treatment works.  To supply water for irrigation to district land and contiguous non-district land, including water rights, dam diversion works, rights of way, canals, and pumps. NRRD currently provides sewer and limited reclamation services. Both services are managed by the Board of Trustees and operated by a Chief Plant Operator, who is appointed by NRRD’s Board to oversee the day-to-day activities of the District. The Chief Plant Operator is on-call 24 hours a day, seven days a week, to respond to reported emergencies. All employees are part-time and residents within NRRD’s boundary. Constituent inquiries, including service requests, are directed to the District’s administration office, which is located at 1501 Milton Road and is next to its wastewater treatment and disposal facilities. NRRD currently has three total employees representing approximately 1.25 full-time employees. This includes the Assistant Manager / District Secretary, Chief Plant Operator, and Backup Plant Operator. The District Manager position has been left open as a cost saving measure after a recent retirement. The District Manager’s duties have been taken on by the Board, Assistant Manager / District Secretary, and Chief Plant Operator. Historically, reclamation districts have been formed to reclaim lands for agricultural production that are frequently inundated or to protect farmlands from flooding. Typically this is done through construction of a levee system that can be economically maintained by the agricultural enterprises it protects. Like other special districts, the powers of reclamation districts are limited to those powers expressed in the code. The area served by NRRD is predominantly residential with no agricultural production occurring. Pursuant to a special section of the code, NRRD, unlike other reclamation districts, is authorized to provide wastewater collection, treatment, and disposal services. NRRD’s levee and drainage system does not lend itself to providing residential-level inundation protection. Some existing levees may be deficient in height. Raising deficient levees to an adequate height would be difficult due to the presence of improvements, but not impossible. Existing improvements include structures on, or blocking access to, some sections of the levee. Currently, all of these lands are privately controlled by their respective property owners. 9 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Sewer Service NRRD provides for the collection, treatment, and disposal of wastewater for all 135 developed lots within its service area. This includes service to the Edgerly Island and Ingersoll Subdivisions. NRRD’s sewer system was developed in 1984 and provides secondary level treatment for residential wastewater. Wastewater is gravity-fed from each residence to one of fifteen community septic tanks underlying Milton Road. Each community septic tank is paired with an adjacent step station. Electronic sensors activate the step station when effluent levels within the septic tank exceed a designated level. Once activated, the step station pumps and conveys effluent out of the septic tank to a centrally located sewer treatment facility. The treatment facility consists of a dosing siphon, an eight- acre mound system, a pump chamber, and three acres of evaporation ponds. Effluent enters the dosing siphon and is discharged into one of ten underground mounds based on a rotating schedule and is filtered to complete the disinfection process. When the pump chamber is full, treated effluent is then pumped into one of three storage ponds where it remains until evaporating. In 2015, NRRD reported peak day dry-weather and wet-weather flows of approximately 10,000 gallons and 23,000 gallons, respectively. The sewer treatment facility is fully operational and designed with a daily capacity of 40,000 gallons. It is important to note that the peak day wet-weather flow for 2014 occurred in December due to an anomaly in which sewer caps were removed to allow storm water to drain into the wastewater system. However, no other peak day sewer flows over the last five years have exceeded NRRD’s sewer treatment daily capacity. Further, the average peak day sewer flow for the entire month of December 2014 was approximately 17,000 gallons. Although the sewer treatment facility is designed with a daily capacity of 40,000 gallons, the facility can withstand occasional anomalous sewer flows in excess of 40,000 gallons. There have been no reported sewer service deficiencies over the last five years. Peak day sewer flows from the last five years are summarized in the table below. Daily Wastewater Flow Amounts (Gallons) (NRRD) 2011 2012 2013 2014 2015 Peak Day Dry-Weather Flow 14,000 12,000 13,000 12,000 10,000 Peak Day Wet-Weather Flow 20,000 20,000 13,000 55,000 23,000 Wastewater Treatment Capacity 40,000 40,000 40,000 40,000 40,000 10 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Reclamation Service NRRD was originally formed for purposes of establishing organized levee control along the Napa River on the eastern side of Milton Road. Since NRRD currently has neither the necessary property interests nor any existing assessments for this purpose, levee maintenance and improvement remain the responsibility of individual property owners who own their portion of the levee. NRRD does not actively provide organized levee control services as contemplated in the District’s formation and principal act. Since it has no property interests except for owning about fifty linear feet of the mile long levee, NRRD has no current right or responsibility to maintain the existing levees. To date, NRRD has only served as an advisory agency with respect to providing property owners with guidelines for individual levee maintenance. However, NRRD recognizes that inundation continues to pose a serious hazard to the area and that a standardized, well-maintained levee system is needed. NRRD’s Board has recently reached out to NCFCWCD to request funding assistance and staff assistance to secure an engineer’s report to determine long-term flood protection needs and feasible projects. Current reclamation services provided by NRRD are limited to maintaining and operating a pump station on Edgerly Island to remove flood and storm water out of the island’s roadside drainage ditch. The drainage ditch is located along the western side of Milton Road and runs along the eastern length of NRRD. The pump station is centrally located to draw storm and flood waters from both drainage directions through a culvert that crosses underneath Milton Road. The pump station was inherited by NRRD from NCFCWCD upon its formation and presently includes three pump machines. An electrical pump operates throughout the year and is automatically activated once water levels in the culvert surpass a designated level. Captured water is pumped through a 12-inch discharge pipe that is approximately 75 feet in length over an adjacent levee into the Napa River. A second diesel pump is manually activated as needed. A third diesel pump, which is the largest of the three pumps, is also manually activated in the event of significant flooding. The electrical and diesel pump shafts were replaced in 2015 with a cost share agreement with NCFCWCD. NRRD does not provide active reclamation services for the Ingersoll Subdivision. The roadside drainage ditch across from the subdivision drains directly to an adjacent marsh. In the event of a flood in the subdivision, a mobile pump machine is now available for use by NRRD. This mobile pump machine was purchased in 2004 by NCFCWCD and is presently stored at NRRD’s sewer treatment facility yard. In the past, NRRD rented mobile pump machines to help remove flood waters from the subdivision as needed. Shared Services and Facilities NRRD does not share services or facilities due to its small size and remote location. However, NRRD benefits from an informal relationship with NCFCWCD. This relationship provides NRRD with an assortment of shared resources ranging from equipment to joint- purchases. NRRD recently authorized a letter to NCFCWCD formally requesting (1) assistance from their staff in procuring a firm to prepare an engineering report on improving the flood water protection for the properties within the District, and (2) a cost sharing agreement between the two districts to cover the costs of the report. If successful, this arrangement would produce economies of scale and improve buying power that could result in an effective shared flood water protection program that would benefit all landowners and residents within the community. 11 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County SERVICE AREA AND POPULATION NRRD’s adopted jurisdictional boundary is comprised of one contiguous area consisting of approximately 74 acres. NRRD’s SOI was adopted in 1985 and includes approximately 54 acres and encompasses nearly its entire jurisdictional boundary with the exception of a 20- acre parcel that is owned by the District and is the site of its administrative office and sewer treatment facility. NRRD’s jurisdictional boundary is bisected by a railroad track, which separates Ingersoll Tract from Edgerly Island. On the eastern side of the District, parcels are owned by individuals. On the western side of the District, Milton Road and a drainage ditch are owned by the County of Napa. The Napa River is located outside the District to the immediate east. Lands located outside the District to the west are owned by the Ahmann family, the County of Napa, and the California Department of Fish and Wildlife. NRRD is under the land use authority of the County of Napa. Land located within the District’s jurisdictional and sphere boundaries is designated under the County General Plan as Agriculture Watershed and Open Space. Development densities for the County of Napa are identified under its zoning standards. The principal zoning standard for parcels located within the Edgerly Island and Ingersoll Subdivisions is Residential Single: Airport Compatibility. This zoning standard requires a minimum parcel size of 8,000 square feet, which is equivalent to 0.18 acres. The County of Napa does not specify maximum parcel densities. The Airport Compatibility overlay standard signifies that the area is located in close proximity to the Napa County Airport and that development standards must be compatible with airport operations. In addition, there are two parcels located within the District that are zoned Marine Commercial: Airport Compatibility. There are no minimum parcels for this zoning standard. A zoning standard of Agricultural Watershed: Airport Compatibility is assigned to the majority of land adjacent to both subdivisions and requires a minimum parcel size of 160 acres. There are no specific population counts within NRRD’s jurisdictional boundary. For the purpose of this MSR, LAFCO assumes NRRD’s jurisdictional boundary includes a total resident population that correlates with the 2.52 persons per household estimate for unincorporated Napa County prepared by the California Department of Finance. This results in a current estimated population of 340. LAFCO also assumes future population growth in NRRD will be consistent with the Association of Bay Area Governments projected annual growth rate in unincorporated Napa County of 0.6% over the next 20 years. New growth and development within NRRD’s jurisdictional boundary are limited to the remaining 15 vacant lots, which can accommodate an approximate population increase of 38 and would result in a buildout population of 378. The following table provides estimates for current and future population counts within NRRD. Projected Population Growth in NRRD (Napa LAFCO) 2016 2021 2026 2031 2036 340 350 361 372 378 12 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Figure 1 below provides a map depicting NRRD’s current jurisdictional boundary and SOI. Figure 1 13 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County GOVERNANCE NRRD was organized under the Reclamation District Act, Division 15 of the California Water Code. NRRD’s governing body is comprised of an elected five-member board of trustees serving staggered four-year terms. In order to serve, a trustee must be an owner of land within the District. The Board is responsible for exercising complete control over construction, maintenance, and operation of the reclamation works and general affairs of NRRD. Elections are based on the landowner-voter system, which allows each landowner one vote for each dollar that his or her property is assessed. In addition to electing a president, the Board is required to appoint a secretary to keep account of all District expenditures. A secretary may be either a trustee or member of the public. NRRD services can be financed through service charges, assessments, proportional property tax proceeds, general obligation and revenue bonds, and from the sale, rent, or lease of property. Board meetings are open to the public and are conducted on the first Thursday of each month at the Edgerly Island Volunteer Fire Station. Trustees serve voluntarily. NRRD’s Board meetings are conducted once a month and are open to the public in accordance with the Brown Act. Public inquiries involving the District’s service operations can be addressed to trustees at this time. Regularly scheduled board meetings provide an opportunity for District constituents to ask questions of their elected or appointed representatives, while helping to ensure that service information is being effectively communicated to the public. There do not appear to be any issues with filling board vacancies and maintaining members. There have been no issues with disclosure laws or Brown Act compliance. There have been no recent issues with staff turnover or operational efficiencies. NRRD’s Board and staff are responsive and dedicated. There is no lack of audits, adopted budgets, or public access to these documents. Reorganization Opportunities As part of its previous MSR, NRRD’s Board asked LAFCO to evaluate whether it would be appropriate to reorganize the District to remove its reclamation authority while preserving its ability to provide sewer service. This request was drawn from a concern on the Board regarding NRRD’s potential liability in the event of a future flood within its service area. The majority of constituents that communicated with LAFCO during the service review expressed their desire not to raise the level of organized reclamation service beyond the advisory practices that were previously provided by NRRD. In April 2006, LAFCO completed a governance study of NRRD in response to an MSR determination that was adopted by the Commission. The determination outlined the need to address the existing disconnect between the reclamation powers of NRRD and the preferences of its constituents not to establish or fund public reclamation services in a manner that is consistent with its principal act. The governance study summarized existing service and governance provision within NRRD and analyzed available government structure options based on specified criteria. The governance study concluded that reorganizing NRRD into a community services district would be the preferred option in meeting the present and future need of the community. Specifically, the governance study states reorganization of NRRD into a community services district would enable the community to continue to receive sewer service while partially addressing the issue of the District lacking sufficient constituent support to establish and provide reclamation services. 14 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County As part of a potential reorganization into a community services district, all other community services district powers, such as flood control, would become latent and could be activated by the new district upon Commission approval at a future date. However, LAFCO’s determination regarding lack of constituent support to establish and provide reclamation services was based on correspondence generated by a small sample size of the community and therefore not necessarily based on the level of support within the community as a whole. In February 2008, the Commission considered initiating reorganization proceedings and decided to take no action due to uncertainties relating to the potential outcome of protest proceedings and a possible election that would be associated with the reorganization. In addition, the impacts on staff resources and the Commission’s budget would be significant given that it was estimated that it would take up to 16 months to carry out the reorganization at a cost of up to $25,000. NRRD, its constituents, and the Commission have not further pursued reorganization proceedings to date. In June 2016, the Napa County Grand Jury released a report on NRRD, which included a request that LAFCO respond to several findings and recommendations. One of the Grand Jury’s recommendations was for LAFCO to complete a comprehensive MSR, SOI update, and governance study of NRRD. Another recommendation suggested that LAFCO should take all steps necessary to ensure that NRRD has all enforcement and funding authority necessary to perform the levee maintenance, rehabilitation, and construction functions for which it was created. In August 2016, LAFCO provided a response indicating that it would be preparing a comprehensive MSR and SOI update for NRRD. LAFCO’s response noted that the MSR may potentially determine that a governance study is needed for NRRD. The purpose of a governance study is typically to determine what alternative governance options exist, and what fiscal, legal, and political barriers exist for an agency. However, based on the findings in this MSR/SOI Update, LAFCO is not recommending a governance study at this time. LAFCO does not believe that exploring a new governance structure for NRRD would solve the aforementioned flood risk issues at this time. NRRD is working with NCFCWCD to evaluate the costs and methods for implementing a flood water protection program. To allow NRRD to implement such a program, which would empower the District to provide the services needed to protect from future flooding, it is important that the District retain its existing powers as a reclamation district. Given this, LAFCO is not recommending a new governance study at this time. However, LAFCO will continue to monitor the progress of NRRD, and if the District does not continue to make progress toward fulfilling its role as a reclamation district, LAFCO will initiate a governance study at that time to explore alternative governance options. One available option for constituents of NRRD to consider that would not represent actual reorganization of the District is formation of a geologic hazard abatement district (GHAD). GHADs are governmental districts formed to address geologic hazards. GHADs may be formed for the purpose of prevention, mitigation, abatement, or control of a geologic hazard, and can also be formed for mitigation or abatement of structural hazards that are partly or wholly caused by geologic hazards. A “geologic hazard” is broadly defined as an actual or threatened landslide, land subsidence, soil erosion, earthquake, fault movement, or any other natural or unnatural movement of land or earth. A GHAD is governed by an elected board consisting of landowners within the district or the members of the applicable 15 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County city council or board of supervisors. GHADs are authorized to acquire, construct, operate, manage or maintain improvements on public or private lands. Under GHAD Law, “improvement” means any activity that is necessary or incidental to the prevention, mitigation, abatement, or control for a geologic hazard, including, without limitation, construction, maintenance, repair or operation of any improvement. GHADs may exercise the power of eminent domain. In considering the formation of a GHAD, a plan of control must be prepared that describes the geologic hazards and includes a plan for prevention, mitigation, abatement and control of these hazards. This plan of control must be prepared by a Certified Engineering Geologist. The plan of control is considered by the legislative body in forming the GHAD and sets out the activities to be implemented by the GHAD. Under State law, GHAD formation is exempt from both the need for approval by LAFCO and from review under the California Environmental Quality Act (CEQA). Also, improvements caused to be undertaken under the GHAD Law and all activities in furtherance or in connection therewith are exempt from review under CEQA. However, formation of a GHAD would not further empower NRRD or its constituents to engage in flood control and reclamation activities beyond the authority currently available. Therefore, formation of a GHAD appears unnecessary at this time. While NRRD is not currently providing reclamation services in a manner consistent with the purpose for originally forming the District, the current governance structure appears appropriate throughout the timeframe of this review. As previously mentioned, NRRD is currently pursuing a cost sharing arrangement with NCFCWCD to secure an engineering study that would assess the long-term flood protection needs of the community as well as provide recommended options and estimated costs for constructing requisite improvements. FINANCES Annual Budget Annual budgets are annually adopted by NRRD in June and take effect July 1 each year. Estimated revenues and proposed expenses are subjected to line-item analysis by NRRD’s Board. The District’s principal revenue source is drawn from its $95.75 per month sewer use charge for connected parcels and $250 annual sewer availability charge for vacant parcels. These amounts collectively represent approximately 86 percent of the District’s total projected revenue. NRRD’s other principal source of revenue is drawn from its allocation of local property tax proceeds. While NRRD does not have a formal reserves policy, the District annually sets aside $20,000 for reserves. Current Budget NRRD’s adopted budget for the 2016-2017 fiscal year totals $194,800. This amount represents NRRD’s total approved expenses for the fiscal year and includes costs relating to both sewer and flood control services. Primary expenses for the District include staff, insurance, accounting/auditing services, and maintenance of the sewer system. Revenues are budgeted at $189,400 with the remaining shortfall ($5,400) to be covered by drawing from agency reserves. NRRD’s reserves currently total approximately $320,000 and represent nearly 20 months of operating expenses. Charges for services represent the largest revenue source for NRRD accounting for 85 percent of the total budgeted amount. Property taxes represent the second largest revenue source at 11 percent of the total budgeted amount. NRRD has maintained a balanced budget in recent years. 16 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Financial Policies NRRD’s financial policies appear adequate at this time. However, NRRD does not have an adopted policy for reserves. The 2005 MSR for NRRD includes the following determinations:  NRRD should adopt a policy to designate a portion of revenues to its reserve fund. This policy would help ensure that funds are available for future emergencies and capital improvements.  NRRD currently operates with marginal cash reserves to help finance emergency repairs or capital improvements. This increases the District’s dependency on grants, loans, or special assessments to fund future emergency repairs or capital improvements. It is imperative that the District build-up its cash reserves to maintain and improve the solvency of its service operations. As of March 2005, NRRD maintained a cash reserve of $47,072. NRRD’s reserves have significantly increased in recent years and currently total $320,000 according to the most recently prepared financial audit. Although current reserves appear sufficient for future repairs and replacement of District facilities and infrastructure within the timeframe of this review, a significant portion of this amount is expected to be allocated to financing the aforementioned engineering study. Therefore, it remains appropriate for NRRD for consider adopting a formal reserves policy. Audited Financial Statements Independent audits are prepared biennially. The most recent issued report was prepared for the 2013-2014 and 2014-2015 fiscal years and includes audited financial statements identifying NRRD’s total assets, liabilities, and equity as of June 30, 2015. These audited financial statements provide quantitative measurements in assessing NRRD’s short and long- term fiscal health. NRRD’s most recent financial statements identify a reserve balance of $320,000 as of June 30, 2015. The most recent audit states NRRD’s debt is at a manageable level. NRRD does not currently utilize long-term debt to fund operations or growth. Compensated absences accrual for the fiscal year ending June 30, 2015 is $11,127. NRRD does not contribute to a deferred compensation plan for employees. NRRD’s recent financial statements are summarized as follows. Assets NRRD’s assets as of June 30, 2015 totaled $1,139,345. Assets classified as current with the expectation they could be liquidated into currency within a year represented half of the entire total amount and are tied to cash, cash equivalents, sewer assessments, and dues from other governments. Assets classified as non-current represented the remaining amount and are associated with land and other capital assets (net of depreciation). Category 2010-11 2011-12 2012-13 2013-14 2014-15 Current Assets $407,465 $442,374 $491,166 $529,516 $575,270 Non-Current Assets $787,905 $723,238 $660,446 $606,976 $564,075 Total Assets $1,195,370 $1,165,612 $1,151,612 $1,136,492 $1,139,345 17 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Liabilities NRRD’s liabilities totaled $19,710 as of June 30, 2015. Current liabilities consist of accounts payable and accrued payroll. Non-current liabilities are due in more than one year and consist solely of compensated absences. Category 2010-11 2011-12 2012-13 2013-14 2014-15 Current Liabilities $11,060 $14,867 $9,648 $8,601 $8,583 Non-Current Liabilities $7,648 $8,516 $9,606 $9,263 $11,127 Total Liabilities $18,708 $23,383 $19,254 $17,864 $19,710 Equity/Net Assets NRRD’s equity, or net assets, as of June 30, 2015 totaled $1,119,635 and represents the difference between the District’s total assets and liabilities. The equity amount is divided into investments in capital assets (net of depreciation) and unrestricted funds. Category 2010-11 2011-12 2012-13 2013-14 2014-15 Investment in Capital Assets $787,905 $723,238 $660,446 $606,976 $564,074 Unrestricted Funds $388,757 $418,991 $471,912 $511,652 $555,561 Total Equity $1,176,662 $1,142,229 $1,132,358 $1,118,628 $1,119,635 NRRD’s financial statements for 2010-2011 through 2014-2015 reflect the District experienced a negative change in its fiscal standing over the five year period as its overall equity, or fund balance, decreased by approximately five percent. This decrease in the overall fund balance is directly attributed to depreciation of capital assets. No significant deficiencies or material weaknesses were identified with respect to NRRD’s financial statements. Revenue and Expense Trends NRRD’s total revenues consist of operating revenues and non-operating revenues. Operating revenues include charges for sewer services, intergovernmental revenues, and late penalty fees. Non-operating revenues include property tax proceeds, interest income, and additional intergovernmental sources. Operating expenses include salaries, employee benefits, maintenance, repairs, laboratory services, insurance, utilities, supplies, communications, office expenses, special department expenses, and depreciation. Salaries and employee benefits represent the largest operating expenses followed by depreciation. A review of NRRD’s audited revenues and expenses shows that the District has finished three of the last five fiscal years with shortfalls. The largest deficit occurred in 2011-2012 at ($34,433) and was tied to higher costs associated with salaries and employee benefits coupled with greater use of professional services relative to other recent fiscal years. The 2010-2011 fiscal year marked the largest end-of-year surplus at $9,689 and was tied to higher property tax proceeds coupled with reduced costs associated with maintenance, repairs, and professional services as compared to other recent fiscal years. An expanded review of NRRD’s audited end-of-year revenues and expenses follows. Category 2010-11 2011-12 2012-13 2013-14 2014-15 Total Revenues $222,857 $202,987 $230,083 $209,766 $216,458 Operating $162,637 $161,645 $184,187 $163,125 $175,903 Non-Operating $60,220 $41,342 $45,896 $46,641 $40,555 Expenses $213,168 $237,420 $239,954 $223,496 $215,451 Difference $9,689 ($34,433) ($9,871) ($13,730) $1,007 18 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Calculations performed assessing NRRD’s liquidity, capital, and profitability indicate the District finished 2014-2015 with sufficient resources to remain operational into the foreseeable future. Specifically, short-term liquidity remained extremely high given NRRD finished the fiscal year with sufficient current assets to cover its current liabilities over 67-to- one. NRRD finished the fiscal year with no long-term debt and a neutral operating margin given that total revenues and expenses were nearly identical. Fee Schedule NRRD’s fee schedule was most recently updated in 2012 to raise sewer rates. The current annual charge is $1,149 for developed parcels and $220 for undeveloped parcels. These fees are sufficient to provide an adequate level of service and are higher than other sewer service providers in Napa County. The lack of economies of scale within NRRD necessitates higher sewer rates to maintain adequate levels of service. The 2005 MSR for NRRD included the following determination, which has been adequately addressed:  It is appropriate for NRRD to amend its sewer fee to be more reflective of the actual costs of providing sewer service. An increase in rates would provide the District with additional revenue needed to fund capital improvements and help to build up its cash reserves. Funding for District operations and capital improvement appears adequate at this time. Infrastructure maintenance, replacements, and expansion needs are minimal. Planned improvements would utilize agency reserves and include replacement of the syphon tower as well as installation of shut-off valves. 19 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County III. MUNICIPAL SERVICE REVIEW DETERMINATIONS The following determinations address the service and governance factors enumerated for consideration by the Commission under G.C. Section 56430 as well as required by local policy. These factors range in scope from considering infrastructure needs and deficiencies to relationships with growth management policies. The determinations serve as independent conclusions of the Commission on the key issues underlying growth and development within the affected community and are based on information collected, analyzed, and presented in this report. Growth and Population Projections a) The Napa River Reclamation District No. 2109 is under the land use authority of the County of Napa. Land located in the District is designated Agriculture, Watershed and Open Space and zoned Residential Single. This zoning standard requires a minimum parcel size of 0.18 acres, which is consistent with existing lot sizes and limits additional subdivision and related growth from occurring in the District. b) Land located outside and adjacent to the Napa River Reclamation District No. 2109 is designated under the County of Napa General Plan as Agriculture, Watershed, and Open Space. This designation discourages the Commission from approving an annexation to the District based on its policy not to promote urban development within land designated as agriculture or open-space under the County General Plan. c) The population per household projection of 2.52 issued by the California Department of Finance for unincorporated Napa County is an appropriate indicator to estimate the resident service population of the Napa River Reclamation District No. 2109. Making use of the current projection, the estimated resident service population of the District is 340. d) Future population growth within the Napa River Reclamation District No. 2109 is estimated to be consistent with the Association of Bay Area Governments projected annual growth rate in unincorporated Napa County of 0.6% over the next 20 years until reaching a buildout population of 378. Present and Planned Capacity of Public Facilities, Adequacy of Public Services and Infrastructure Needs or Deficiencies a) The Napa River Reclamation District No. 2109 provides sewer and limited reclamation services for approximately 54 acres of territory that includes the Edgerly Island and Ingersoll Subdivisions. Both services are provided directly by the District and involve basic infrastructure systems that require minimum staffing to operate. This reduces the District’s dependency on staff and increases the importance of effective service plans to address infrastructure needs in a timely manner. b) Reclamation services provided by the Napa River Reclamation District No. 2109 are presently limited to the operation of a pump station that serves the Edgerly Island Subdivision. This pump station is adequately equipped to provide a basic and limited level of flood control for the subdivision. 20 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County c) Other forms of reclamation service within the jurisdiction boundary of the Napa River Reclamation District No. 2109, such as levee control, are the responsibility of individual property owners. This results in varying levels of flood control and increases the dependency between property owners to make timely and effective improvements to their respective portion of the levee. d) In recognition of the United States Geological Survey Bay Area and San Francisco Bay Conservation and Development Commission projections for sea level rise, the Napa River Reclamation District No. 2109 should pursue enhanced reclamation services pertaining to uniform levee control or endeavor to better educate constituents of the need for continued improvement and maintenance of their individual portions of the levee along the Napa River. e) The Napa River Reclamation District No. 2109’s sewer system collects and provides secondary treatment of wastewater before it is discharged into one of three storage ponds for evaporation. This is an elevated level of sewer service that is regulated by the San Francisco Regional Water Quality Control Board. f) The sewer system for the Napa River Reclamation District No. 2109 has adequate collection, treatment, and discharge capacities to meet current and future service demands within its jurisdiction under normal conditions. g) The Napa River Reclamation District No. 2109 should update its sewer facilities plan. The update should evaluate the adequacy of existing facilities to meet present and future system demands, offer recommendations as part of a long-term capital improvement program, and evaluate funding requirements and opportunities. Financial Ability to Provide Services a) The Napa River Reclamation District No. 2109 has been successful in obtaining outside funding from state and local agencies to help cover the costs of emergency repairs and capital improvements. These efforts have established funding relationships for the District and have helped to maintain a level of solvency by minimizing its use of cash reserves. b) The Napa River Reclamation District No. 2109 has not established a revenue source to fund reclamation services. This restricts the District from offering a higher level of reclamation service beyond its current operation of a pump station on Edgerly Island. c) The Napa River Reclamation District No. 2109 is subject to significant fluctuations in its annual sewer service costs, which have contributed to past operating shortfalls. These shortfalls are symptomatic of the District serving a confined number of customers while maintaining an infrastructure system prone to repairs, improvements, and increasing regulatory standards. d) The Napa River Reclamation District No. 2109 has made a concerted effort to make preventative maintenance an emphasis as part of its sewer service operations. This includes cleaning all sewer lines every five years. 21 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Status and Opportunities for Shared Facilities a) The Napa River Reclamation District No. 2109 benefits from cost-savings associated with its relationship with the Napa County Flood Control and Water Conservation District. This relationship provides the District with funding assistance and access to service equipment as needed. The Napa River Reclamation District No. 2109 should consult with the Napa County Flood Control and Water Conservation District to determine whether additional shared service arrangements would be feasible and appropriate. b) The levee that serves the jurisdictional boundary of the Napa River Reclamation District No. 2109 is subject to subsidence due to its low elevation and direct proximity to the Napa River. The District should explore opportunities to work with the Napa County Resource Conservation District to educate its constituents with regard to activities to control settlement along their portion of the levee. c) Infrastructure for the City of American Canyon’s sewer system is in general proximity to the Napa River Reclamation District No. 2109. This proximity indicates that the District could contract for sewer services from American Canyon if connection under the Napa River could be established. This type of service contract that would result in the extension of municipal services outside a public agency’s jurisdictional boundary requires Commission approval pursuant to California Government Code Section 56133(e). Accountability for Community Service Needs, Including Government Structure and Operational Efficiencies a) The Napa River Reclamation District No. 2109 is the only public agency authorized to provide sewer service within its jurisdictional boundary. b) The Napa River Reclamation District No. 2109 was formed under the Reclamation District Act of the California Water Code to maintain and improve an existing levee on Edgerly Island. However, levee control remains the responsibility of its constituents. The inaction of the District to establish the services for which it was formed presents a disconnect between its operational and governance authority. c) It appears appropriate for the Napa River Reclamation District No. 2109 to maintain its existing governance structure as a reclamation district with the authority to maintain and improve the levee in a manner that would fulfill the original purpose of the District’s formation. d) The Napa River Reclamation District No. 2109 provides a summary of past and projected revenues and expenditures relating to its sewer service operations as part of its annual budget. The District’s budget process is conducted in an open and transparent manner and provides a clear directive towards staff with regard to prioritizing agency resources. e) The Napa River Reclamation District No. 2109 should adopt a policy to designate a portion of revenues to its reserve fund. This policy would help ensure that an appropriate amount of funds are available for future emergencies and capital improvements. 22 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County f) The Napa River Reclamation District No. 2109 is governed by a five-member board of trustees. Directors serve voluntarily and are elected by and accountable to the landowners in the District. g) The Napa River Reclamation District No. 2109’s board meetings are conducted once a month and are open to the public. Public inquiries involving the District’s service operations can be addressed to trustees at this time. Regularly scheduled board meetings provide an opportunity for District constituents to ask questions of their elected or appointed representatives, while helping to ensure that service information is being effectively communicated to the public. h) The Napa River Reclamation District No. 2109 makes reasonable efforts to maintain public dialogue with its constituents. These efforts facilitate local accountability and contribute towards public involvement in local governance. i) The Napa River Reclamation District No. 2109 is governed by a responsive and dedicated board and staff. These characteristics enhance local accountability and cultivate effective working relationships with members of the public as well as other agencies. j) The Napa River Reclamation District No. 2109 should evaluate and establish performance measures that are consistent with the service needs and preferences of its constituents. Location and Characteristics of Any Disadvantaged Unincorporated Communities within or Contiguous to the Existing Sphere of Influence a) No disadvantaged unincorporated communities meeting the definition under State law exist within or contiguous to the Napa River Reclamation District No. 2109’s existing sphere of influence. Relationship with Regional Growth Goals and Policies (Local Policy) a) Reclamation districts have no authority over land use and hence no direct participation on the policy level that would connect the activities of the district with regional growth. 23 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County IV. SPHERE OF INFLUENCE REVIEW The analysis conducted as part of the MSR component of this report identified that NRRD is providing an adequate level of sewer service within its jurisdictional boundary. However, the analysis also identified an existing disconnect between the reclamation authority of NRRD and the absence of an established funding source for public reclamation services in a manner consistent with the District’s principal act. Jurisdictional Boundary and Land Use Authorities NRRD’s jurisdictional boundary encompasses approximately 74 acres. NRRD operates under the land use authority of the County of Napa. The State of California also owns a substantial portion of unincorporated lands near NRRD. These State lands are not subject to local land use policies. A map depicting NRRD’s current jurisdictional boundary and SOI is provided as Figure 1 on page 13 of this report. Adoption of Sphere of Influence and 2007 Update NRRD’s SOI was originally adopted by the Commission in 1985. The SOI was designated to include all lands in NRRD’s jurisdictional boundary with the exception of approximately 20 acres in the western portion of the District. The 20 acres that were excluded from NRRD’s SOI comprise the District’s administration and wastewater treatment facilities. The Commission affirmed NRRD’s SOI with no changes in April 2007 as part of a comprehensive review and update. There have been no changes to NRRD’s SOI since its adoption. Notably, as part of the 2007 SOI update, the Commission deferred consideration of any changes to NRRD’s SOI until the inconsistencies between the District’s service activities and principal act were addressed. While these inconsistencies have not been addressed to date, it appears appropriate to consider changes to NRRD’s SOI as part of this update to recognize the District’s current and probable future boundary and service area. Study Area One study area for potential inclusion within NRRD’s SOI has been identified and is depicted on the following page as Figure 2. The study area is approximately 20 acres in size, owned by NRRD, and located within the District’s existing jurisdictional boundary. The study area is the site of NRRD’s administrative office as well as its sewer treatment and disposal facilities. The administrative office currently receives sewer service from NRRD. The County of Napa designates the study area as Agriculture, Watershed, and Open Space and provides a zoning standard of Agricultural Watershed: Airport Compatibility. Despite being included within NRRD’s jurisdictional boundary and receiving sewer service, the study area was excluded from the original SOI established in 1985 for the District. The 2007 SOI update stated that, in the absence of addressing inconsistencies between NRRD’s service activities and principal act, any changes to the SOI would be premature. Given the definition of an SOI under Government Code Section 56076 is a “plan for the probable physical boundaries and service area of a local agency,” it appears appropriate to amend NRRD’s SOI to include the 0.4 acre portion of the study area comprising the District’s administrative office. This update to NRRD’s SOI would recognize the standing inclusion of the administrative office within the District’s jurisdictional boundary and service area. An aerial map of the study area is provided on page 26 as Figure 3. A close-up aerial map of NRRD’s administrative office is provided on page 27 as Figure 4. 24 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Figure 2 25 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Figure 3 26 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County Figure 4 27 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County V. SPHERE OF INFLUENCE RECOMMENDATION AND DETERMINATIONS It is recommended that the Commission update NRRD’s sphere of influence to include a 0.4 acre portion of the study area representing the District’s administrative office described in the previous section of this report. Pursuant to California Government Code Section 56425(e), the following determinations have been prepared in support of the recommendation: Present and Planned Land Use The present and future land uses in the area are planned for in the County of Napa General Plan as the affected land use authority. The County General Plan and adopted zoning standards provide for the current and future residential uses that characterize the majority of the area. Present and Probable Need for Public Facilities and Services The Napa River Reclamation District No. 2109 provides sewer and limited reclamation services within the area. As previously determined by the Commission, there is a strong need for organized sewer services as well as reclamation services in the form of uniform levee control within the area. Present Capacity and Adequacy of Public Services The Napa River Reclamation District No. 2109 has demonstrated its ability to provide an adequate level of sewer service to the area. However, the District has not demonstrated its ability to provide an adequate level of reclamation service to the area in a manner that is consistent with its principal act. Social and Economic Communities of Interest The area currently served by the Napa River Reclamation District No. 2109 includes the Edgerly Island and Ingersoll Subdivisions. These two subdivisions share common social and economic characteristics that underlie the governance and service provision of the District. Present and Probable Need for Public Services for Disadvantaged Unincorporated Communities No disadvantaged unincorporated communities meeting the definition under State law exist within or adjacent to the Napa River Reclamation District No. 2109’s existing jurisdictional boundary or its sphere of influence. 28 Napa River Reclamation District No. 2109 MSR & SOI Update LAFCO of Napa County VI. REFERENCES Principal Agency Contacts  Penny Wilson, District Manager and Secretary  Ralph Loveless, District Chief Plant Operator  Tom Capriola, District Counsel  Jay Gardner, District Board Chair Documents/Materials  “Comprehensive Study Napa River Reclamation District No. 2109 Service Review Report,” August 2005 (Napa LAFCO)  “Comprehensive Study of Sanitation and Wastewater Treatment Providers,” September 2005 (Napa LAFCO)  “Governance Study of the Napa River Reclamation District No. 2109,” April 2006 (Napa LAFCO)  “Grand Jury Final Report on the Napa River Reclamation District,” June 6, 2016 (2015-2016 Napa County Grand Jury)  “Final Report on the Napa River Reclamation District,” June 2016 (2015-2016 Grand Jury)  “Levee Survey Data Summary,” August 2009 (NRRD)  “Napa River Reclamation District No. 2109 Baseline Report and Sphere of Influence Establishment,” July 24, 1985 (Napa LAFCO)  “Napa River Reclamation District Basic Financial Statements June 30, 2011 and 2010,” October 2011 (Charles W. Pillon, CPA)  “Napa River Reclamation District Basic Financial Statements June 30, 2013 and 2012,” October 2013 (Charles W. Pillon, CPA)  “Napa River Reclamation District Basic Financial Statements June 30, 2015 and 2014,” October 2015 (Charles W. Pillon, CPA)  Napa River Reclamation District No. 2109 Final Budget for Fiscal Year 2016-2017  “Napa River Reclamation District No. 2109 Sphere of Influence Review,” April 2007 (Napa LAFCO)  “Operations and Maintenance Manual for the Edgerly Island Reclamation District: Sewage Collection, Treatment, and Disposal System,” June 1984 (Bracewell Engineering, Inc.)  “Projections,” 2013 (Association of Bay Area Governments) Websites  NRRD, http://www.nrrd2109.org/  Association of Bay Area Governments, http://www.abag.org/  California Association of Geologic Hazard Abatement Districts, http://www.ghad.org/  California Department of Finance, http://www.dof.ca.gov/  California State Controller’s Office, http://sco.ca.gov/  Napa County Grand Jury, http://www.napacourt.com/general-info/grand-jury  National Oceanic and Atmospheric Administration, Digital Coast, Sea Level Rise and Coastal Flooding Impacts, https://coast.noaa.gov/slr/  Point Blue Conservation Science, http://www.pointblue.org/  San Francisco Bay Conservation and Development Commission, http://www.bcdc.ca.gov  State of California Ocean Protection Council, http://www.opc.ca.gov/  United States Geological Survey, http://www.usgs.gov/ 29