Sunnyslope County Water District MSR and SOI 2014

LOCAL AGENCY FORMATION COMMISSION 2301 Technology Parkway SAN BENITO COUNTY Hollister, CA 95023 Phone: (831) 637-5313 August 28, 2014 (Agenda) Local Agency Formation Commission 2301 Technology Parkway Hollister CA 95023 Sunnyslope County Water District - Sphere of Influence Update Dear Members of the Commission: <b>RECOMMENDATION</b> It is recommended the Commission receive this report, accept all public testimony and adopt the enclosed resolution updating but not revising the Sunnyslope County Water District Sphere of Influence. DISCUSSION Spheres of Influence are LAFCO's plan for the future organization of local government boundaries. As explained last October, State law requires the Commission to adopt a Sphere of Influence for each city and special district by January 1, 2008 and every five years the commission shall, as necessary, review and update each sphere of influence. The law further requires LAFCO to prepare a Municipal Service Review to help inform the adoption of Spheres of Influence. As part of our overall work plan the staff has undertaken a coordinated program to prepare Municipal Service Reviews and update Spheres of Influence. Please let me know if you have any questions. Very truly yours, <b>BOB BRAITMAN</b> <b>Executive Officer</b> Commissioners: Anthony Botelho, Chair ◆ Margie Barrios ◆ Richard Bettencourt ◆ Pauline Valdivia ◆ Rick Edge Alternate Commissioners: Victor Gomez ◆ Robert Rivas ◆ Mark Tognazzini Executive Officer: Bob Braitman AGENDA NO. 8 1. MUNICIPAL SERVICE REVIEW Description of District The Sunnyslope County Water District, which was formed in 1954, operates pursuant the County Water District Law (Section 30000 et seq.) District boundaries resemble but do not quite encompass all of the land within the sphere of influence. There are a few remaining areas that can be annexed to the District. The District is governed by a five-member Board of Directors. They are elected at large from throughout the District for four-term terms. The District Manager heads a staff of 18 full time employees. The District headquarters are located in the City of Hollister. <b>District Services</b> The District provides retail water delivery and wastewater collection, treatment and disposal services for portions of the Hollister area. It serves more than 5,400 water customers and provides wastewater facilities for approximately 1,200 customers. The District appears to exhibit the characteristics of a well-managed agency operating efficiently and serving its customers effectively and working cooperatively with other local agencies involved in providing related services. 2. MSR DETERMINATIONS This portion of the report addresses the factors specified in the statute for Municipal Service Reviews found at Government Code Section 56430. Growth and Population Projections for the Affected Area The District includes a sizable portion of the Hollister area population. The population of the City was estimated at approximately 37,000 during the last census. This population is anticipated to increase notably during the next twenty years; with a corresponding portion of this growth to occur within the District boundaries. Location and Characteristics of any Disadvantaged Unincorporated Communities Senate Bill 244 (Wolk), effective July 1, 2013, concerns "Land Use, General Plans and Disadvantaged Communities." While it has ramifications for some Municipal Service Reviews and Sphere of Influence Updates, it is not relevant to this District. Specifically, SB 244 applies to a proposed city MSR and Sphere Update Sunnyslope County Water District annexation involving more than 10 acres when it is located contiguous to a "disadvantaged unincorporated community" 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 Hollister Urban Area historically relied on the San Benito County portion of the Gilroy-Hollister Valley Groundwater Basin for its municipal water supply. Since 2003, imported water has been developed for urban use from the Central Valley Project (CVP). The CVP is a Federal water system operated by the U.S. Bureau of Reclamation (USBR). It is one of the nation's major water systems, covering the entire Central Valley and portions of California's mountain ranges. The San Benito County Water District has a long-term contract for CVP water, which when imported into the County is stored in San Justo Reservoir. The Sunnyslope County Water District (and City of Hollister) purchase CVP water from the District. The Hollister Urban Area Water Project (HUAWP) is a collaborative effort to deliver higher-quality water. It is a joint effort by the Sunnyslope County Water District, City of Hollister and San Benito County Water District to create a sustainable and reliable water supply for the greater Hollister area. This project to improve water quality will help meet wastewater discharge requirements and protect the groundwater basin and is an effort to protect and maintain a reliable water supply for the community. <b>Financial Ability to Provide Services</b> The District assesses monthly service charges for water service and sewer service in compliance with requirements of Proposition 218. It also assesses capacity charges for connecting to the District water and sewer systems. Since District services are fee-recoverable it appears it will continue to receive sufficient revenues to continue providing services to its constituents. Status of, and Opportunities for, Shared Facilities There are presently no pending or proposed applications to consolidate local water or sewer service agencies that would involve the District, although it maintains significant cooperative efforts with other local utility agencies. MSR and Sphere Update Sunnyslope County Water District Accountability for community service needs including governmental structure and operational efficiencies. As a local agency with an elected governing board, the District has direct accountability to its resident-voters with respect to the services provided by the District 3. SPHERE OF INFLUENCE REVIEW AND UPDATE Description of Current Sphere of Influence The current Sphere of Influence and District boundaries are largely coterminous. No Proposed Sphere Changes The District proposes no changes in its Sphere of Influence nor does the LAFCO staff recommend any changes. Sphere of Influence Determinations Present and planned land uses in the area, including agricultural and open space lands. The District encompasses a major portion of the City of Hollister and extends easterly to include a significant unincorporated area easterly but adjacent to the City. It includes urbanized, developed areas and areas that are subdivided into large lots and parcels still devoted to agricultural uses. Present capacity of the public facilities and adequacy of public services that the agency provides or is authorized to provide The District has sufficient capacity in its public facilities to adequately provide water and sewer services within its adopted Sphere of Influence. The District's plans for future improvements, as reflected in the Water Capital Improvement Plan and Wastewater Capital Improvement Plan, together with its adopted Capacity Charges, should ensure the agency will continue to provide adequate services. Existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency The District is within the greater Hollister social and economic community of interest For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal or industrial water, or structural fire protection, the present and probable need for those facilities and MSR and Sphere Update Sunnyslope County Water District services of any disadvantaged unincorporated community within the existing Sphere of influence. No extension of the District sphere is being proposed. Any communities already within the existing sphere will be served equally with other properties. As noted above, the plans for future improvements should ensure the agency provides adequate services. 4. ACKNOWLEDGEMENTS & REFERENCES This draft Municipal Service Review / Sphere of Influence Update was prepared by the San Benito LAFCO staff. Responsibility for any errors or omissions rests with those who prepared the report. Don Ridenhour, Sunnyslope County Water District General Manager, provided much of the data on which the evaluation is based and has cooperated in its preparation. <b>Background Documentation</b> The following documents have been reviewed in compiling this report: 2010 Hollister Urban Area (HUA) Urban Water Management Plan (UWMP) . Five Year Strategic Plan (September 2012) . 2012 Water Quality Report • Summary of Rates, Fees and Capacity Charges (December 2013) . Financial Statements and Supplementary Information (June 2012 and 2011) . Inventory of District Property including easements . Financial Program for Water / Wastewater Operations for FY 2012/13 and Proposed . for FY 2013-14 These referenced documents are considered part of this report and are available in the LAFCO office. 5. RECOMMENDATIONS In consideration of information gathered and evaluated during the Municipal Service Review and Sphere of Influence Update it is recommended the Commission: A. Receive this report and accept public testimony regarding the proposed Municipal Service Review and Sphere of Influence Update. B. Determine that since there is no change in the District Sphere of Influence the action is exempt from CEQA. MSR and Sphere Update Sunnyslope County Water District C. Approve the recommended Municipal Service Review determinations, together with any changes deemed appropriate. D. Adopt the enclosed resolution updating but not revising the Sphere of Influence. MSR and Sphere Update Sunnyslope County Water District Augúst 28, 2014 Sunnyslope County Water District Sphere of Influence MACT THADA ABA HRIDGEMARK OR ULLUTER 0 MENZE ANCH RD г ž AR 9 Ногарья ры 5 THURST OF THE TILL 11111 WM ABUN Hallsian 上面 红江 DEN CHE KING SEI WAYNE DR 20 40 40 40 40 40 40 40 40 40 40 40 40 40 DGEWOO 11 30 pg SOLTHS DE RO SAANA SETON JOH SE YWE ШШ S H ē UNION RD 7,200 TIASO WHITE F 4,800 THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF THE STATE OF T 1 P.S. 10 10 C.S. D 0 B 2,400 No. DR HILLTO RESOLUTION OF THE SAN BENITO LOCAL AGENCY FORMATION COMMISSION MAKING DETERMINATIONS AND UPDATING THE SPHERE OF INFLUENCE OF THE SUNNYSLOPE COUNTY WATER DISTRICT WHEREAS, pursuant to the Cortese/Knox/Hertzberg Local Government Reorganization Act (Government Code Section 56425 et seq.) the Commission must review and update, as necessary, adopted spheres of influence not less than once every five years, and WHEREAS, Government Code Section 56430 directs the Commission in updating spheres of influence to conduct a review of municipal services not later than the time it is considering an action to establish or update as sphere of influence, and WHEREAS, the Commission has conducted a municipal service review and sphere of influence study of the Sunnyslope County Water District, and WHEREAS, in the manner required by law, the Executive Officer has given notice of the public hearing by the Commission on the proposal; and WHEREAS, the Commission has heard, discussed and considered all evidence regarding this matter, including but not limited to, the Executive Officer's report, the environmental consideration, applicable general and specific plans and all testimony, correspondence and exhibits received for the public hearing, all of which are included herein by reference. NOW THEREFORE, IT IS RESOLVED, DETERMINED AND ORDERED as follows: 1. The project before the Commission is a Sphere of Influence Update and Municipal Service Review for the Sunnyslope County Water District. 2. The Commission as the lead agency finds the Sphere of Influence Update to be categorically exempt from the California Environmental Quality Act (CEQA) inasmuch as no change is being made to the existing Sphere of Influence. 3. The Sphere of Influence of the Sunnyslope County Water District is hereby updated without any modification to the existing Sphere of Influence boundaries as shown on the attached map labeled "Exhibit A." 14. This resolution was adopted on August 28, 2014 and is effective on the date signed by the Chair. San Benito LAFCO Resolution Updating the Sphere of Influence<br>Of the Sunnyslope County Water District August 28, 2014 Page 2 of 2 AYES: NOES: ABSTAINS: Dated: _____ Chair San Benito Local Agency Formation Commission <b>ATTEST</b> Bob Braitman, Executive Officer San Benito Local Agency Formation Commission . August 28, 2014 Sunnyslope County Water District Sphere of Influence Ħ č MACT THAD MARAN 103 pooms HRIDGEMARK OR THE THE WILLIAM STORY 5 - MENZET <b>AVENO</b> RB ARANATHA. Ľ D HANCH A Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the Architecture of the 5 FIG NOTAWI. 1157 AM VERT HH CALSTOCK DEC 詽 DBA CHEEK DA MESTA DR DGEWOOD ANA SAN ON BOISHENDS TAWY 25 HOLL ISTAR HYPRES ШШ NO H 7,200<br>Feet 2 WHONR TIdSON wifited ! 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