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Mountain House 2025 MSR Update 2025-04-18

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City of Mountain House Municipal Service Review and Sphere of Influence Plan 2025 Update Prepared by the City of Mountain House for San Joaquin LAFCO April 18, 2025 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 TABLE OF CONTENTS I. INTRODUCTION ....................................................................................................................... 1 II. MUNICIPAL SERVICE REVIEW ..................................................................................................... 2 II.1 GROWTH AND POPULATION PROJECTIONS .................................................................................. 2 A. CURRENT POPULATION AND DWELLING UNITS ......................................................................................2 B. PROJECTED POPULATION AND DWELLING UNITS ....................................................................................2 Table II-1 Projected Population ........................................................................................................................... 3 C. DETERMINATIONS – GROWTH AND POPULATION PROJECTIONS .................................................................3 II.2 Disadvantaged Unincorporated Communities .................................................................. 4 A. DETERMINATIONS – DISADVANTAGED UNINCORPORATED COMMUNITIES ....................................................4 II.3 Present and Planned Capacity of Public Facilities and Adequacy of Public Services, including Infrastructure Needs or Deficiencies ........................................................................ 5 A. FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES ..........................................................................5 A.1. Fire & EMS Service Delivery .......................................................................................................................... 6 A.2. Training .......................................................................................................................................................... 7 A.3. Equipment ..................................................................................................................................................... 7 A.4. Fire and EMS Responses................................................................................................................................ 8 Table II-2 Fire - EMS Summary Statistics (2024) .................................................................................................. 9 A.5. Ability to Serve Existing and Future Development ....................................................................................... 9 B. LAW ENFORCEMENT...................................................................................................................... 10 Table II-3 San Joaquin Sheriff’s Department Response Times to Mountain House .......................................... 11 Table II-4 Crimes in Mountain House ................................................................................................................ 12 Table II-5 San Joaquin Sheriff’s Department Calls for Service to Mountain House .......................................... 12 C. WATER SUPPLY, CONSERVATION AND TREATMENT ............................................................................... 13 C.1. Water Distribution System .......................................................................................................................... 14 C.2. Water Treatment Plant and Storage ........................................................................................................... 14 C.3. Water Conservation Measures .................................................................................................................... 14 C.4. Future Supply and Demand and Improvements to the System .................................................................. 15 Table II-6 Comparison of Water Supplies to Projected Demands ..................................................................... 16 D. WASTEWATER COLLECTION AND TREATMENT ..................................................................................... 17 D.1. Wastewater Collection System ................................................................................................................... 17 D.2. Wastewater Treatment Plant...................................................................................................................... 18 Table II-7 Total Annual Average Day Flow (AADF) in million gallons per day ................................................... 18 D.3. Effluent Discharge, Sludge Disposal and Industrial Waste Regulation ....................................................... 18 D.4. Future Wastewater Demand and Systems Improvement .......................................................................... 19 E. STORM WATER DRAINAGE.............................................................................................................. 19 E.1. Existing Storm Water Collection System and Planned Expansion ............................................................... 20 E.2. Storm Water Discharge Permit and Water Quality Management Program ............................................... 21 E.3. Future Storm Water Drainage Demands and System Improvements ........................................................ 22 F. PARKS AND RECREATION ................................................................................................................ 23 F.1. Existing and Planned Parks and Recreation Facilities .................................................................................. 23 Table II-8 Mountain House Parks and Open Space ........................................................................................... 23 G. Other Services, Facilities and Infrastructure .............................................................................. 23 H. Determinations -- Present and Planned Capacity of Public Facilities and Adequacy of Public Services, including Infrastructure Needs or Deficiencies ................................................................ 24 II.4 Financial Ability of the Agency to Provide Services ......................................................... 25 A. FUNDING OF OPERATING SERVICES ................................................................................................... 25 Table of Contents i CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 A.1. Utility Revenues .......................................................................................................................................... 25 A.2. Special Taxes ............................................................................................................................................... 25 Table lI-9: Special Parcel Taxes ........................................................................................................................... 26 A.3. Other Assessment and Community Facility Districts for Services .............................................................. 26 A.4. Revenue from Developers Services............................................................................................................. 27 B. INFRASTRUCTURE FUNDING AND FINANCING ....................................................................................... 27 C. SCHOOL CONSTRUCTION FINANCING ................................................................................................. 28 D. Determinations – Financial Ability to Provide Services and Facilities ......................................... 28 II.5 Status of, and Opportunities for, Shared Services ........................................................... 30 A. Current and Future Potential Shared Facilities .......................................................................... 30 A.1. Law Enforcement, Fire and Emergency Medical Services .......................................................................... 30 A.2. Utility Services ............................................................................................................................................. 30 A.3. Library Services............................................................................................................................................ 30 A.4. Parks and Recreation................................................................................................................................... 31 A.5. Infrastructure .............................................................................................................................................. 31 A.6. Transit .......................................................................................................................................................... 31 B. Determinations -- Status of, and Opportunities for, Shared Services .......................................... 31 II.6 Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies ....................................................................................................... 32 A. Governmental Structure .......................................................................................................... 32 A.1. Public Information and Participation .......................................................................................................... 32 B. Evaluation of Operational Efficiencies ....................................................................................... 33 B.1. Method of Establishing New Operating Systems and Procedures ............................................................. 33 C. Determinations -- Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies .......................................................................................... 33 III. SPHERE OF INFLUENCE PLAN ................................................................................................... 35 A. CITY BOUNDARIES AND SPHERE OF INFLUENCE .................................................................................... 36 Map III-1 Mountain House City Boundary and Sphere of Influence ................................................................. 37 A.1. Present and Planned Land Uses .................................................................................................................. 38 A.2. Future City Annexations Within Current SOI .............................................................................................. 38 Map III-2 Mountain House Master Plan Land Uses ........................................................................................... 39 B. PROJECTED POPULATION WITHIN THE SPHERE OF INFLUENCE .................................................................. 40 C. DETERMINATIONS......................................................................................................................... 40 C.1. Present and Planned Land Uses within the Sphere of Influence ................................................................ 40 C.2. Present and Probable Need for Public Facilities and Services .................................................................... 40 C.3. Present Capacity of Public Facilities and Adequacy of Public Services ....................................................... 41 C.4. Existence of Social and Economic Communities of Interest ....................................................................... 41 Exhibit I Mountain House Master Plan Land Use Summary .................................................. 42 Exhibit II Buildout Potable Water Distribution System.......................................................... 43 Exhibit III Buildout Wastewater Collection Facilities ............................................................. 44 Exhibit IV On-site Watershed Drainage Map ........................................................................ 45 Exhibit V Parks and Amenities ............................................................................................. 46 Exhibit VI Community Facilities ........................................................................................... 47 Exhibit VII Sheriff’s Office Calls for Service to Mountain House ............................................. 48 Table of Contents ii CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 I. INTRODUCTION In accordance with the 2000 Cortese-Knox-Hertzberg Act, the San Joaquin Local Agency Formation Commission (LAFCO) is required to prepare a Municipal Services Review (MSR) for the City of Mountain House prior to establishing or updating the City’s sphere of influence (SOI). This MSR has been prepared by the City for LAFCO to make determinations regarding the City's ability to provide services and to reconfirm the existing sphere of influence. State law and LAFCO Policies and Procedures for Spheres of Influence, Service Reviews, and Annexations require this Municipal Service Review (MSR) to evaluate and provide the following written determinations with regard to the ability of an agency to provide services:1 (1) Growth and population projections for the affected area. (2) The location and characteristics of any disadvantaged unincorporated communities within and contiguous to the 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. (4) Financial ability of agencies to provide services. (5) Status of, and opportunities for, shared facilities. (6) Accountability for community service needs, including governmental structure and operational efficiencies. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. This 2025 MSR updates the 2022 Mountain House CSD (MHCSD) MSR2 which was prepared prior to the MHCSD’s incorporation as the City of Mountain House. The MSR addresses the municipal service determinations and provides a Sphere of Influence (SOI) Plan. This MSR is exempt from the California Environmental Quality Act because it is an information document that is intended only to be used in the consideration of future actions that have not been approved or funded. LAFCO will prepare a notice of exemption as part of the process of reviewing this MSR. 1 Gov’t Code Sec. 56430(a). 2 Municipal Service Review and Sphere of Influence Plan 2022 Update, June 8, 2022. I. Introduction page 1 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II. MUNICIPAL SERVICE REVIEW The subsections in this chapter analyze each MSR determination. At the end of each subsection is a summary of the required determination. II.1 GROWTH AND POPULATION PROJECTIONS This section of the Municipal Services Review provides information on the current and projected population in Mountain House that will create the need for the services discussed in Chapter III. Occupancy in Mountain House began in 2003 following the conclusion of the 2000 federal census, therefore detailed population data were not available until the 2010 census where records show a population as of April 1, 2010, of 9,675. A. CURRENT POPULATION AND DWELLING UNITS The present population of Mountain House is currently estimated by the California Department of Finance to be 28,825 as of July 1, 2024.3 The 2021 estimate of persons per household (PPH) was 3.812,4 and has declined to 3.414 persons per household (occupied units) or 3.26 persons per total units (including vacant units). The average persons per household is expected to decline as higher density, smaller residential units and apartments are constructed. Recent data indicate 8,843 existing units(8,443 occupied units after deducting a vacancy factor of 4.52 percent).5 B. PROJECTED POPULATION AND DWELLING UNITS Residential units are projected to total 16,105 units by buildout, and a buildout population of 42,368.6 The projected population averages 2.6 persons over the total units. The anticipated growth is based on the land uses approved in the most recent Specific Plans and tentative maps and General Plan designations. 3 Cal. Dept. of Finance letter to Steve Pinkerton, City Manager, City of Mountain House, March 26, 2025. 4 Cal. Dept. of Finance letter to MHCSD, Sept. 7, 2021. 5 Cal. Dept. of Finance letter to Steve Pinkerton, City Manager, City of Mountain House, March 26, 2025. 6 Planned units at buildout per John Anderson, City of Mountain House, 4/16/2025; allowed densities may permit a slightly different total as shown in Master Plan Table 3.1, updated April 2025. Unit total does not include potential 240 additional Town Center units and 90 bonus units (for high density housing) for a potential additional 660 residents. II.1 MSR Determination #1: Growth and Population Projections page 2 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Table II-1 Projected Population7 C. DETERMINATIONS – GROWTH AND POPULATION PROJECTIONS The Mountain House Master Plan and Specific Plans provide the basis for development of the community. Together, these plans detail the approved land uses and project the population in the land uses that will need the services provided by the City of Mountain House. As shown in Table II-1, the 2024 population of 28,825 as of July 1, 2024, is projected to reach 42,368 by buildout in 2035 to 2040. 8,843 existing units will increase to 16,105 units by buildout.8 Subsequent determinations conclude that facilities, services and infrastructure are adequate to meet the needs of the projected buildout population of the Master Plan and Sphere of Influence area. 7 2020 Urban Water Management Plan (UWMP), Draft Report November 2021, Prepared for MHCSD by West Yost. 8 Planned units at buildout per John Anderson, City of Mountain House, 4/16/2025; allowed densities may permit a slightly different total as shown in Master Plan Table 3.1, updated April 2025. Unit total does not include potential 240 additional Town Center units and 90 bonus units (for high density housing) for a potential additional 660 residents. II.1 MSR Determination #1: Growth and Population Projections page 3 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II.2 Disadvantaged Unincorporated Communities According to the Department of Water Resource’s Disadvantaged Communities mapping instrument,9 there are no communities within or contiguous to the City’s SOI that meet the definition of a disadvantaged unincorporated community. A. DETERMINATIONS – DISADVANTAGED UNINCORPORATED COMMUNITIES The State Codes describe a "disadvantaged unincorporated community"10 to mean inhabited territory,11 or as determined by commission policy, that constitutes all or a portion of a "disadvantaged community" as defined by the Water Code.12 9 DAC Mapping Tool, https://gis.water.ca.gov/app/dacs/ 10 Gov. Code Sec. 56033.5. 11 As defined by Gov. Code Sec. 56046. 12 Water Code Sec. 79505.5. II.2 MSR Determination #2: Disadvantaged Unincorporated Communities page 4 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II.3 Present and Planned Capacity of Public Facilities and Adequacy of Public Services, including Infrastructure Needs or Deficiencies The purpose of this section is to evaluate infrastructure needs and identify potential deficiencies of services provided by the City, especially as they relate to current and future residents. LAFCO is required to make a determination regarding the infrastructure needs, or deficiencies, within the City and its SOI. This section of the MSR will address the provision of the following public services, some of which are directly provided by the City and others which are provided by the City through contracted services: • Fire Protection and Emergency Medical Services • Law Enforcement • Water Supply, Conservation, Treatment and Distribution • Wastewater Collection, Treatment and Disposal • Storm Water Drainage • Parks and Recreation • Other Services, Facilities and Infrastructure In order to approve affirm or change an SOI and/or annexation of land into the City, LAFCO must determine that the necessary infrastructure and public services exist to support the new uses at comparable service levels. The information put forward in this MSR demonstrates support for City buildout within its current SOI boundaries. A. FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES Fire and Emergency Medical Services are managed through a combination of service providers. The Fire and Emergency Medical Services (Fire and EMS) are managed through a contract13 with the French Camp McKinley Fire District (FCMFD), also referred to as the Mountain House Fire Department (MHFD), since September 13, 2015. Prior to this date the contracted fire services were managed by the Tracy Rural Fire Protection District (TRFPD) via contract with the City of Tracy through the South County Fire Authority).14 MHFD holds a public protection classification of “03/3X”.15 13 Fire Protection and EMS Agreement Between MHCSD and French Camp McKinley Rural County Fire Protection District, Second Amendment, Aug. 11, 2021. 14 MHCSD 2017 MSR. 15 ISO, January 23, 2017. This means properties located within 5 road miles of municipal water supply were classified as a 3. Properties located within 5 road miles of a fire station were classified as a 3X. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 5 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 The MHFD is a recognized member of the San Joaquin County Fire Chief’s Association and participates in the local and statewide mutual aid system. Automatic aid agreements exist between MHFD and the following organizations: the Defense Logistics Agency (Tracy Depot), Montezuma Fire District, along with additional resources available through the San Joaquin County Mutual Aid system (SCFPA). Currently MHFD and SCFPA have a standing mutual aid response. MHFD staff attend county training and EMS meetings held within the county. Emergency Medical Services are provided through a combination of expanded scope Basic Life Support 7 (Expanded Scope BLS provides additional life saving measures beyond BLS) through MHFD with transport provided primarily by American Medical Response (AMR); AMR provides basic life support (BLS), advanced life support (ALS), critical care transport, and neonatal transport. The expanded BLS scope provided by MHFD allows department personnel to administer Epinephrine in severe allergic reaction cases and Naloxone to reverse the effects of opiate (pain killers, narcotics) overdoses. These were formerly only allowed to be given by Paramedic Personnel. MHFD was the first fire department in the County to participate in this program under the San Joaquin EMS Agency.16 The MHFD fire and EMS is staffed through a contract with the FCMFD. FCMFD is considered a combination agency, with full-time line staff and reserve firefighter personnel. FCMFD employs approximately 31 personnel: 24 full time firefighters working a 48-96, on a three-shift platoon schedule. One full time Fire Chief, one full time Deputy Fire Chief , one full time Administrative Manager, and one part-time Administrative Assistant. Three Reserve firefighters support the paid firefighting staff. Reserve firefighters have the qualifications to assist in firefighting and driver operating roles as needed. French Camp Station 11-1 is staffed with three personnel: one officer, engineer, and firefighter. Mountain House Station 16-1 is staffed with two officers (Captains or Captain & Acting Captain} two engineers, and one firefighter. The District responded to approximately 2,446 emergency calls to both Mountain House and French Camp (2024 ). The French Camp McKinley Fire District has responsibility for several significant life-safety hazards such as the San Joaquin County Jail, San Joaquin County Juvenile Justice Center, Honor Farm, San Joaquin County Sheriff’s Office, San Joaquin County General Hospital, and Interstate 5. A.1. Fire & EMS Service Delivery MHFD operates out of Mountain House Fire Station 1 (aka Station 16-1) at 911 Tradition Lane. Mountain House Station 1 is staffed with five personnel daily, with an on-duty officer to oversee major incidents. Station 1 houses two type 1 engines, a ladder truck, and a type 6 wildland apparatus. MHFD Fire Station 2 (aka Station 16-2), open July 2025, is located at 1448 Stockyard Drive. The new station will house a type 1 engine staffed with a captain and an engineer. The engine company will cross-staff the water rescue boat. 16 MHCSD 2017 MSR. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 6 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Station 16-1 continues to staff five personnel, 24 hours a day, seven days a week, with an available Duty Officer. They work on a 48-96 hour three platoon system. The shift includes two Captains (one being a Duty Officer} , two engineers or certified driver operator, and one firefighter. This staffing allows for a three-person engine company and a two-person cross- staffed truck or wildland unit to be always available. MHFD’s five fire personnel provide expanded services to the Mountain House community beyond traditional Fire & EMS duties including the following: assistance in emergency preparedness to include the City's Emergency Operation Plan and Emergency Operations Center, Incident Action Plans, Community Emergency Response Team, education in the classrooms from K-12, and participation in community events such as National Night Out, Music in the Park, 4th of July, Bike Rodeo, Farmers Market, Veterans Day, and Santa's Parade and Tree Lighting. A.2. Training The Department’s training programs are organized to ensure comprehensive preparedness for both fire and EMS operations. Fire training is overseen by the deputy fire chief, while EMS training is assigned to a captain, both of whom are responsible for delivering all cognitive and psychomotor skill-based training. Staff training covers a wide range of essential areas, including fire operations (such as live fire training), technical rescue, special operations, auto extrication, Hazmat First Responder Operations (FRO) and Decontamination (Decon), as well as professional development, prevention courses, and EMS procedures. These programs are scheduled annually by the training officers, adhering to local, state, and national standards. The department maintains rigorous training standards, requiring two hours of training per shift and a minimum of 240 hours per year. To ensure well-rounded instruction, the Department integrates online training with hands-on practice, providing staff with the necessary skills and knowledge to excel in an emergency response. A.3. Equipment Equipment at Mountain House Station 16-1:17 Vehicle Type Make/Model Year Flow Capacity E16-1 Type 1 Rosenbauer 2024 1 500 gpm 500 gal E16-2 Type 1 Rosenbauer 2024 1500 gpm 500 gal E16-3 Type 1 Rosenbauer 2016 1537 gpm 1000 gal T16-1 Aerial 109’ R osenbauer 2021 2000 gpm 400 gal BC11-1 Chevrolet Tahoe 2 0 17 17 MHFD, 2/14/2025. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 7 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 BR16-1 Type 6 Chevrolet 5500 2 0 21 250 gpm 400 gal UT16-1 Chevrolet 1500 2023 Pickup UT16-2 Honda Pioneer 2022 25 gpm 70 gal 1000 UTV BT16-1 Water Inmar 430-SR-HD 2023 Rescue Equipment at French Camp Station 11-1: 18 Vehicle Type Make/Model Year Flow Capacity E11-1 Type 1 Spartan 2023 1 500 gpm 600 gal E11-2 Type 1 Spartan 2010 1500 gpm 500 gal E11-3 Type 3 Pierce 2012 500 gpm 500 gal Ch11-1 Chevrolet 2021 Ch11-2 Chevrolet 2023 UT11-1 Ford F150 2010 OES4606 Type 6 Ford F550 2020 O50E0S 4g6p0m6 280 gal Type MHFD has made significant upgrades to its fleet t o enhance its firefighting and emergency 6 Ford response capabilities. The district replaced its 1991 Pierce 75' Aerial with a modern 2021 F550 (State Rosenbauer 109' Viper Aerial, providing greater reach and advanced technology for aerial owned operations. Engine E16-1 was also replaced with a 2024 Rosenbauer Type 1 engine, and the vehicle) previous E16-1 will now serve as E16-3, a reserve apparatus to bolster readiness during peak demand. Additionally, MHFD added E16-2, anothe r 2024 Rosenbauer Type 1 engine, which will be stationed at MHFD Fire Station No. 2, set to open by July 2025. The district also placed a 2021 Type 6 fire apparatus into service, replacing the aging BR16-1. These upgrades ensure MHFD remains well-equipped to respond effectively to the growing needs of its community while maintaining operational reliability and safety. A.4. Fire and EMS Responses Calls are dispatched through the Valley Regional Emergency Communications Center (VRECC), as part of a Joint Powers Agreement with the San Joaquin County Joint Radio Users Group (JRUG) in which the FCMFD participates as a voting member. 18 MHFD, 2/14/2025. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 8 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 As shown in Table II-2, the average response time (turn out time after receiving the assignment plus travel time) to all calls is five minutes and 37 seconds. The response time for ninety percent of all calls is nine minutes and 20 seconds or less; for ninety percent of fire emergencies the response time is seven minutes and eight seconds or less. Table II-2 Fire - EMS Summary Statistics (2024)19 A.5. Ability to Serve Existing and Future Development The Mountain House Master Plan, consistent with the County General Plan, specifies that a suburban level of fire protection service and emergency medical services will be provided. Fire protection is provided in compliance with all requirements and standards adopted by the City of Mountain House. The MHFD’s ISO rating of “3” has not changed since 2017, although since then, MHFD has added fire fighting vehicles to its fleet, and currently a second station will be open in the spring of 2025. In addition to the second fire station opening spring of 2025 MHFD now has three type 1 engines, 109’ aerial truck, type 6 wildland apparatus and a water rescue boat These additions should improve the next ISO rating. National Fire Protection Administration and Insurance Service Office performance standards are met through the current fire and EMS service levels and will continue to be met as demands increase from the growing population, equipment is added, and when the second fire station is operational. A new second fire station, Mountain House Fire Station No. 2, is located north of Byron Road within the City of Mountain House and master planned areas to help respond to calls from development north of Byron Highway. With the new station added, MHFD will have a total of three companies (2 engine/1 truck/ 1 duty officer) and nine total personnel when build-out is complete. The addition of the new station, more personnel and new engines will improve response times and services reported in 2024. The adopted Fiscal Year 2024-25 budget by the City for Fire and Emergency Medical Services contracted services is $3,455,232 which is sufficient to cover the current staffing levels and operations and maintenance of the fire station and equipment.20 The need for additional personnel in the future will be addressed by the City Council, City Manager, the FCMFD Board of Directors and the FCMFD Fire Chief as new development occurs. 19 MHFD, 2/14/2025. 20 City of Mountain House 2024/2025 Adopted Budget. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 9 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 B. LAW ENFORCEMENT Law enforcement is contracted through the San Joaquin County Sheriff's Office (SJCOSO).21 The SJCOSO command staff and deputies operate out of two facilities: (1) a satellite office located at the City of Mountain House Town Hall, 251 E. Main Street, Mountain House, California; and (2) the SJCOSO headquarters located at 7000 Michael Canlis Blvd, French Camp, California. As the community grows, facilities will be provided at existing City buildings. The SJCOSO presently assigns six (6) Patrol Deputies, one (1) Sergeant full-time, two (2) Motor Deputies, one (1) School Resource Deputy, and one (1) full-time Lieutenant to function as the “Chief of Police” to the City of Mountain House. The total number of Deputies was increased on July 1st, 2024, upon the incorporation of Mountain House.22 The deputies assigned to Beat 8, a "beat area" that includes Mountain House and the adjacent unincorporated county area, provide additional law enforcement service. Investigative and all other law enforcement support services are provided through the SJCOSO. Table II-3 summarizes response times by call priority. Currently, the City of Mountain House and the San Joaquin County Sheriff’s Office have a Memorandum of Understanding (MOU), which was signed in January 2025 and outlines the responsibilities of both the City of Mountain House and San Joaquin County Sheriff’s Office. In addition, the City also has an (MOU) with Lammersville Unified School District, which allows the assignment of the School Resource Deputy to LUSD. Due to the City’s incorporation, the Mountain House Police Services is now also responsible for all traffic-related matters that occur within the City. They are responsible for enforcing traffic laws as outlined in the California Vehicle Code, investigating traffic accidents, investigating vehicle thefts, and responding to parking and other traffic-related complaints. Although the California Highway Patrol (CHP) is no longer solely responsible for traffic within the city, they do provide assistance when requested for general law enforcement and traffic control. 21 Agreement, Police Protection Services, A-04-432, June 15, 2004. 22 Correspondence from San Joaquin County Sheriff’s Office to City, 4/12/2025. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 10 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Table II-3 San Joaquin Sheriff’s Department Response Times to Mountain House23 AVERAGE RESPONSE PRIORITY DESCRIPTION TIME Priority 1 Highest Priority, requires immediate dispatching, A crime, 8.6 typically in-progress, where the physical well-being of a person is minutes in jeopardy, e.g., assault, homicide, kidnapping, robbery, home invasion, burglary (suspect possibly on premises), brandishing a weapon, bomb threats, coroner’s case, missing or lost children, disaster, etc. Priority 2 Priority 2 calls do not require an immediate response but should 9.5 be dealt with as soon as possible. Non-violent persons' crimes and minutes property crimes with known suspects, e.g., family disturbance, suspicious person (no weapons seen), burglary (suspect not on premises), theft of property with possible suspect lead, welfare check, etc. Priority 3 The majority of calls fall into Priority 3; these calls are handled in 20.2 the order in which the call is received. Property crimes with no minutes suspect leads, incidents where the victim delayed reporting the crime. Examples include cold burglary, property theft or damage, mail theft, noise complaints, information requests, etc. Table II-4 reports Mountain House property and violent crimes for the calendar years 2023 and 2024. The number of violent and property crimes declined however other crimes increased. Additional detail about specific types of crimes occurring in each year is included in Exhibit VII. 23 Correspondence from San Joaquin County Sheriff’s Office to City, 4/12/2025. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 11 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Table II-4 Crimes in Mountain House24 Calendar Year Category 2023 2024 Violent Crimes & Property 202 175 Crimes (UCR Part 1) Other Crimes (UCR Part 2) 1,126 1,218 TOTAL 1,328 1,393 Table II-5 shows total monthly calls for service for FY2022-23 compared to FY2023-24. The total calls include traffic stops and officer-initiated activity, so the annual totals are greater than the calls by crime type shown in Table II-4. City staff work closely with the SJCOSO command staff and deputies to proactively address concerns, such as crime or traffic safety. The Sheriff's Office collects monthly statistical data for Mountain House that is available online on the City website in the monthly Council agenda packages.25 Table II-5 San Joaquin Sheriff’s Department Calls for Service to Mountain House26 The Fiscal Year 2024-25 City Budget contains funds that will ensure a patrol unit 24 hours per day, seven days a week present within the City’s boundaries and SOI. The Fiscal Year 2024-25 24 Correspondence from Mountain House Police Services, 3/04/2025. 25 https://www.mountainhousecsd.org/government/board-meeting-agendas-and-minutes 26 Correspondence from Mountain House Police Services, 2/12/2025. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 12 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 adopted budget for law enforcement services is $4,728,361 which is sufficient to cover the current law enforcement services.27 The City intends to provide facilities in City buildings for Sheriff operations and includes equipment and vehicle costs in its CIP. As the City of Mountain House grows, the need for additional law enforcement personnel will be addressed by the City Council, City Manager, and the Sheriff's Department. The analysis will include an assessment of crime statistics, response times, community needs, and revenue availability. C. WATER SUPPLY, CONSERVATION AND TREATMENT The City serves drinking water to the Mountain House community. The City water system consists of one water treatment plant, four storage tanks, three booster pump stations, and approximately 74 miles of pipelines.28 All water supply infrastructure, including the diversion point, conveyance facilities, treatment plant, storage, and pump stations are designed for ultimate buildout of the community. The City owns the water treatment plant and distribution system and contracts operations and maintenance (O&M) to a private operator to meet City contract specifications and State and Federal laws and permit conditions. Prior to development, the San Joaquin County Board of Supervisors approved a water supply reliability analysis conducted as part of an Environmental Impact Report in 1994 for Specific Plan I; subsequently, Specific Plan II and Specific Plan III were the subject of water supply assessments (WSAs)29 that demonstrated an adequate, reliable water supply. The City will update its Urban Water Management Plan (UWMP) in 2025 which is a requirement of State law30 to help water suppliers assess the availability of their water supplies with current and projected water use to help ensure reliable water service under different conditions. The UWMP evaluates conditions for the next 20 to 25 years, so required updates every five years ensure continued, long-term water supply planning. The UWMP provides further details about the City water system including how it is meeting conservation targets, achieving water service reliability, and preparing a plan to respond to water shortages. The City’s current water supplies are exclusively purchased from the Byron Bethany Irrigation District (BBID). BBID’s primary source of supply is the State Water Project (SWP), which diverts surface water from the Sacramento-San Joaquin Delta (Delta). The raw water is provided by BBID through their pump station located along the California Aqueduct downstream of the Harvey 0. Banks Pumping Plant (BBID's diversion and pumping facilities pre-date the State Water Project system, and therefore, the BBID possesses a settlement agreement with the SWP recognizing BBID's right to divert) and is delivered through a BBID-owned 30-inch pipeline to 27 City of Mountain House 2024/2025 Adopted Budget, pg. 107. 28 2020 Urban Water Management Plan (UWMP), Final Report May 2022, Prepared for MHCSD by West Yost. 29 WSAs were required by SB 610 and SB 221 (statutes adopted by the California State Legislature in 2001). 30 Urban Water Management Planning Act. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 13 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 the treatment plant, where the raw water becomes the responsibility of the City’s O&M operator.31 C.1. Water Distribution System The existing water distribution system includes distribution mains, two treated water storage tanks and pump station located at the water treatment plant (WTP) site, the Westside Booster Pump Station, and two College Park Storage Tanks and booster pump stations (BPS).32 The existing distribution system consists of approximately 74 miles of pipelines ranging from 6 to 36 inches in diameter. Most existing pipelines are polyvinyl chloride, with the remainder being ductile iron or cement-lined steel. C.2. Water Treatment Plant and Storage33 The BBID diversion to Mountain House is located approximately three miles northwest of the City WTP. The WTP began operations in 2002 and is currently operated under a third-party contract with Inframark Water & Infrastructure Operations (Inframark). While the WTP has a current capacity of 15 million gallons per day (MGD), it will ultimately be expanded to a capacity of approximately 20 MGD. At the WTP site, raw water from BBID is treated with conventional filtration technology. The treated water is then pumped through an ultraviolet disinfection system, chlorinated, and stored in two treated water storage tanks totaling 4.4 MG. The existing water system has four treated water storage tanks, which provide water to meet hourly demand fluctuations, supply demands during emergency and power outage conditions, and provide a fire flow reserve. There are two treated water storage tanks at the WTP totaling 4.4 MG as described above. The other two tanks (College Park Tanks 1 and 2) are 3.7 MG each and provide water to the Zone 1 and Zone 2 booster pumps. C.3. Water Conservation Measures The City continues to implement demand management measures (DMMs) to promote conservation and reduce demands on water supplies per State law34. DMMs include water waste prevention ordinances, required water metering, conservation pricing, public education and outreach, and programs to assess and manage distribution system losses. The City also provides staff to support its residential water conservation program and its large landscape irrigation conservation program.35 31 MHCSD 2017 MSR. 32 Ibid, 2020 UWMP. 33 ibid, 2020 UWMP. 34 Urban Water Management Planning Act. 35 ibid, 2020 UWMP. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 14 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 By implementing the DMMs summarized above and described in Chapter 9 of the 2020 UWMP, the City achieved its interim and final targets established in the 2020 UWMP.36 C.4. Future Supply and Demand and Improvements to the System The City reviewed development and planning documents to estimate water demands for a fully developed community (i.e., buildout), which may occur by 2040. Mountain House is projected to develop the remaining residential neighborhoods over the next 10-15 years. The Town Center/Central Commercial area, freeway commercial and the industrial and office space areas of the Master Plan are yet to be built out. Mountain House plans to align with the overall community goals outlined in the Master Plan as a self-sufficient community offering employment, goods, services, and recreation to a growing population. Based on data presented in the 2020 Potable Water System Master Plan Update37 (2020 PWSMP), the buildout population was projected to be 39,062. Recent estimates by the City indicate a buildout population of 42,368.38 The changes to land use, population and water needs will be addressed in the City’s UWMP expected to be updated beginning in 2025. Current total water demand for 2020 of 4,672 Acre Feet (AF), including system losses, was projected to grow to 9,595 AF by buildout expected in 2040,39 then remain constant after buildout.40 These projections will be revised in the updated UWMP. The City is expected to continue to purchase water from BBID. In the future, the City will be able to use the riparian water rights on properties north of Byron Road as they are developed. The City is in the process of finalizing the transfer and ability to use these riparian rights;41 a Mutual Water Company has been formed for this purpose.42 These rights allow for the beneficial use of Old River water within those properties, and the projected increase in water supply is approximately 2,570 AF.43 For the City to use Old River water, certain properties near the river must be developed. After development, Old River water must be used within those properties. Table II-6 compares projected buildout demand to future supplies. As shown in the table, the City will have a surplus of 2,788 AF/yr.44 Therefore, the City will be able to meet projected buildout demands with available water from BBID and riparian rights. The District is pursuing 36 ibid, 2020 UWMP. 37 MHCSD 2020 Potable Water System Master Plan Update, Nov. 2020, West Yost Associates. 38 See II.1 Growth and Population Projections, and revised Master Plan Table 3.1 in Exhibit I. 39 2020 UWMP, Table 4-3. 40 2020 UWMP. 41 Correspondence from MHCSD, Nadir Shareghi, May 25, 2022. 42 Correspondence from City of Mountain House, K. Morgan, 1/15/2025. 43 2020 UWMP, Table 6-5. 44 2020 Potable Water System Master Plan Update, pg. 4-3. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 15 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 additional sources and conservation measures to further bolster water supplies45 and continues to monitor and update projections of buildout water demands.46 Table II-6 Comparison of Water Supplies to Projected Demands47 The City does not currently have plans to use recycled water (i.e., highly treated wastewater) though it may in the future. The City is planning on constructing an Aquifer and Storage Recovery Well. A Request for Proposals was posted January 9th, 2025, with expected completion Fall 2029.48 The City is working with BBID on the Wicklund Cut Water Supply Reliability Project and entered into a Cost Share Agreement for a Water Smart Grant in November 2024. This is a ten-year, three-phased project that can add 20 CFS to the City.49 Mountain House Developers are required to build raw water storage at the Water Treatment Plant. The storage amount has not been confirmed; however, it is estimated to be 25-75 AF. Existing distribution systems are sized to serve the community at buildout with additional lines to be constructed by the developers as future neighborhoods are built. The existing WTP is designed to be expanded by adding treatment equipment into existing treatment bays with new water storage tanks to be constructed as a requirement to meet future development needs. 45 See City of Mountain House Water Update, Jan. 8, 2025, file: “PP 9.X 2025 Water Update.pptx”. 46 City of Mountain House Minimum Water Demands for Public Health and Safety at Buildout, Technical Memorandum, West Yost, Oct. 4, 2024. 47 2020 Potable Water System Master Plan Update, Table 4-2. 48 Aquifer Storage and Recovery Well – Design, Grant and Construct Engineering Services RFP PW2025-3, and comments from K. Morgan 4/1/2025. 49 Wicklund Cut Pump Station Feasibility Report, Final Report, October 28, 2024. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 16 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 The City maintains two funds to support its water enterprise fund: (1) annual Operations and Maintenance fund; and (2) Capital Improvement Plan (CIP)50 to fund water system upgrades. Plans for both funds are updated each year and adopted as part of the overall annual operation budget for the City. Revenues for these funds are generated from water rates. Water rates are reviewed and updated as needed periodically to assure adequate funds are available for required water system upgrades and maintenance. Expansion to the system to serve new development is funded by developers. D. WASTEWATER COLLECTION AND TREATMENT The City provides wastewater collection and treatment infrastructure for the master planned Mountain House community. Key documents and primary sources of information include: • Mountain House Master Plan and subsequent specific plans I, II, and III. • MHCSD Sanitary Sewer Collection System Study (dated June 1, 1999, revised May 17, 2001) • Amendment to the Sanitary Sewer Collection System Study (May 17, 2001) The Master Plan, specific plans, and other studies outline a long-term strategy for meeting wastewater discharge and capacity requirements in order to serve community needs through buildout of the Master Plan. A drawing of the Wastewater System Master Plan is attached as Exhibit III. The wastewater collection and treatment system are managed by the City's Operations and Maintenance Department which contracts to a private entity, currently Inframark for the wastewater collection and treatment system to meet City contract specifications, State and Federal laws, and permits conditions. The wastewater O&M contract was originally approved by the MHCSD Board of Directors in May 2008, but has since been renewed through 2029.51 Phase III of the WWTP has been completed as of September 2024. A new NPDES permit was issued Aug 1, 2023, and will expire on July 31. 2028. A request to reopen the permit was submitted on January 23, 2025, to Amend Permitted Discharge Rate to 4.0 Million Gallons per Day (MGD). Wastewater treatment plant (WWTP) phased expansions and additional lift stations, and collection lines will be constructed by developers as needed to connect the trunk sewer lines as new development comes online. D.1. Wastewater Collection System The wastewater system serving the Mountain House community includes a wastewater collection, treatment and disposal system. Approximately 80% of the service area drains by gravity through a backbone collection system to the treatment plant. The remaining 20% is and will be pumped as development occurs to the treatment plant through lift stations and force 50 The City prepares and annually updates (or more frequently, as needed) its 5-year CIP. 51 Contract for Operation and Maintenance of Water, Wastewater and Stormwater Facilities, effective January 1, 2025, through December 31, 2029. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 17 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 mains. For instance, the wastewater collection system located south of Byron Road is a gravity system to the treatment plant, currently consisting of approximately 67 miles of collection lines. The wastewater treatment and disposal system were designed and built to serve build out of the community with phasing for expansion of equipment within the treatment plant to be added as necessary to meet development needs. Additional wastewater infrastructure will be constructed by the developers as development occurs to meet new demands. At buildout of the community, all wastewater will flow to the WWTP located within the community master plan and SOI boundaries. D.2. Wastewater Treatment Plant The WWTP will be sized at total buildout to provide 5.4 million gallons per day (MGD) Average Dry Weather Flow (ADWF) of treatment capacity (all future references to treatment plant capacity will be ADWF). During 2007, the present Phase II treatment system and the associated infrastructure were replaced with 3.0 MGD Sequential Batch Reactor (SBR) system. Subsequent improvements changed the SBR system to a Membrane Bioreactor (MBR) treatment system. All new treatment plant facilities have extensive instrumentation and control (I&C) systems, such as SCADA, and an integrated state-of-the-art security system. Design of the additional expansion of the WWTP is complete and construction is anticipated as development triggers the need per the master plan. Final phase of the WWTP expansion will bring the plant treatment capacity to a total dry weather treatment capacity of 5.4 MGD, sufficient to treat all of the wastewater generated within the Master Plan and SOI boundaries and contained within the existing permit conditions. Past, current (2021) and projected annual flows at the wastewater treatment plant are as shown in Table II-7: Table II-7 Total Annual Average Day Flow (AADF) in million gallons per day Buildout 2008 2015 2021 2024 2040 Flows (MGD) 0.60 0.70 1.25 1.7 5.4 The actual amount of wastewater treated each year between now and buildout of the community will depend upon the pace of development as determined by market conditions. D.3. Effluent Discharge, Sludge Disposal and Industrial Waste Regulation Treated effluent is discharged to the Old River pursuant to Wastewater Discharge Requirements in the Order No. R5-2023-0033, NPDES Permit No. CA0084271. The permit is effective August 1, 2023, and expires on July 31, 2028. On January 23, 2025, the City requested that the permit be amended to increased permitted discharge to 4.0 MGD. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 18 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Biosolids generated from the Membrane Bioreactor is removed as needed and recycled on permitted lands or disposed of in a landfill of appropriate classification. The MHCSD Board of Directors adopted an ordinance "Regulating Industrial Waste into the Mountain House Wastewater Collection and Treatment System."52 The City, which adopted MHCSD ordinances upon incorporation, is responsible for administration of the programs to enforce the provisions of this ordinance and expects day-to-day monitoring to be the responsibility of the contracted services provider. The City's WWTP is governed by an NPDES permit issued by the Central Valley Regional Water Quality Control Board (Regional Board), which is required to be reviewed every five years. D.4. Future Wastewater Demand and Systems Improvement Based on projected wastewater generation factors for various land use, the projected buildout plant capacity is 5.4 MGD. The current expansion is for a 4.0 MGD MBR treatment plant that can be expanded to 5.4 MGD as necessary by adding additional membranes. The Wastewater Operations and Maintenance (O&M) Fund and the Capital Improvement Plan (CIP) Fund pay for necessary O&M as well as any system upgrades necessary to meet regulatory conditions and infrastructure repairs. Revenues for these two funds are generated from wastewater rates which are reviewed and updated as necessary. Rates are planned to be reviewed every five years to ensure O&M expenses and CIP requirements are met. Infrastructure expansion to serve new development is funded by developer impact fees. The City evaluates its rates and pledged facilities fee structure on a continuous basis to assure that sufficient funds are generated to pay for the various public improvements needed to provide wastewater treatment and collection services for the existing and increased population, and to reimburse initial developers of infrastructure. No funds are budgeted in the FY2024-25 CIP budget for wastewater improvements.53 During Phase III of the Wastewater Treatment Plant expansion, completed in 2024, the plant was designed and constructed as an MBR plant with a 4.0 MGD capacity which is expandable to 5.4 MGD or any capacity needed for the buildout of the community. E. STORM WATER DRAINAGE The City provides storm water drainage infrastructure for the master planned Mountain House community. The Mountain House Master Plan establishes objectives, policies and implementation measures for the community’s storm drain collection system, including off-site watershed, primary storm drain facilities, secondary storm drain facilities, Mountain House Creek, BMP treatment, flood protection, and phasing of the storm drain collection system. Subsequent storm water master plan updates revised the Master Plan. A drawing of the Storm Water Drainage System Master Plan is attached as Exhibit IV. 52 See Div. 6. – Wastewater Control and Pretreatment Ordinance, City Municipal Codes. 53 MH 2024/2025 fiscal year budget, pg. 135-6. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 19 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 The City NPDES permit, and storm water drainage system are managed by the City's Public Works Department. Operations and maintenance services are contracted to a private entity Inframark for the storm water drainage system to meet City contract specifications, State and Federal laws, and permits conditions. The contract was originally approved by the MHCSD Board of Directors in May 2008, but has since been renewed, including an extension by the City through 2029.54 Inframark’s responsibility ends at the outfall of the drainage system, and they are no longer responsible for billing of stormwater fees. Mountain House Creek (excluding stormwater outfalls maintained by Inframark) will be maintained by a maintenance crew after a revitalization project of the creek is complete.55 E.1. Existing Storm Water Collection System and Planned Expansion56 The existing "state-of-the-art" storm water collection system collects, filters, conveys, and treats runoff from within the master planned SOI area and from within the watersheds to Old River via a gravity flow system. The Mountain House storm water collection system is a gravity system consisting of street inlets, carbon filters located at the inlets, water quality storage ponds and treatment basins, an engineered Mountain House Creek (for further treatment), culverts, inlets, and approximately 78.14 miles of lines.57 The storm water collection system has been designed for buildout through its various master infrastructure plans. The current system will be expanded as development occurs within the master planned and SOI area. Additional lines and infrastructure will be constructed by the developers as neighborhoods are ready for development and as development occurs in Town Center and other planned development areas. The charcoal filters located at each existing inlet within the developed area provides initial treatment of runoff collected from rooftops and streets. The primary treated storm water flows from the street level inlets to water quality detention and treatment ponds where secondary treatment occur allowing sediments, debris, and chemicals to settle before runoff is allowed to enter the primary channel of Mountain House Creek, and ultimately Old River. Maintenance of the detention basins is contained in a Mountain House Creek O&M plan. Further filtration of water quality occurs in Mountain House Creek as flow meanders through vegetated areas. In addition to treatment, the ponds serve as temporary storage regulating storm water flow to the system downstream. Additional water quality detention basins currently exist north of Byron Road, adjacent to the railroad and Mountain House Creek, and south of Grant Line Road at Central Parkway. 54 Contract for Operation and Maintenance of Water, Wastewater and Stormwater Facilities, effective January 1, 2025, through December 31, 2029. 55 Correspondence from City of Mountain House, K. Morgan, 1/22/2025. 56 Correspondence from City of Mountain House, K. Morgan, 1/22/2025. 57 Correspondence from MHCSD, 4/25/2022. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 20 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Storm water quality standards imposed and monitored by the EPA and the State Water Resources Control Board through the City's storm water NPDES permit require treatment of storm water runoff prior to its release into the sloughs, creeks, rivers or the Delta. Treatment is often provided within the detention basins in a separate "wet" area that is adjacent to the main basin. Other treatments are being provided by on-site source control and by site specific BMP measures such as inlet filtration fabrics, and street sweeping. Mountain House Creek has been enlarged to maintain the minimum required freeboard for 100-year flood conditions and to contain detention ponds to regulate flow downstream. The City has updated a hydraulic model of Mountain House Creek showing capacity to contain flows in excess of the 100-year flood event. In accordance, with Senate Bill 5 and interrelated flood management bills passed by the California Legislature in 2007, the County of San Joaquin defined a 200-year discharge event is in terms of flow. In 2022 the City updated the previous Mountain House floodplain mapping analysis (2017) that analyzed flood risks to the City lands to incorporate the consideration of future hydrologic projections due to climate change.58 The City is completing a revitalization project of the Creek. E.2. Storm Water Discharge Permit and Water Quality Management Program The City has obtained a NPDES Storm Water Discharge permit from the Central Valley Regional Water Quality Control Board.59 These permits issued by the Regional Board set forth the regulatory requirements that the City is required to follow in order to operate and maintain its storm water facility with the goal of minimizing any environmental impact to the waterways of the state. These requirements are contained in the Regional Board's Basin Plan and are better known as Best Management Practices (BMPs), which identify the following programmatic requirements to protect water quality. BMPs include the following: educational activities, street sweeping, periodic testing of storm water runoff and working with commercial and industrial businesses to minimize their contribution of polluting elements contained in runoff that goes into the storm water system. The City has installed individual storm drain catch basin carbon- based filter inserts to treat and capture various debris, litter, waste, and other contaminants at its collection points prior to entering the storm water conveyance facilities. A Storm Water Management Program (SWMP) was developed in August 2008.60 In October 2015, the SWMP was revised to comply with the NPDES Phase II requirements for small municipal separate storm sewer systems (MS4s). The goal of the SWMP is to reduce the discharge of storm water pollutants to the Maximum Extent Practicable (MEP), protect water quality and satisfy the requirements of the Clean Water Act (CWA). The SWMP includes the implementation of best management practices (BMPs) in each of six categories, an implementation schedule, and measurable goals to help ensure that storm water discharged is 58 Mountain House 200-Year Climate Change Floodplain Mapping, Prepared by R&F Engineering, Inc., March 9, 2022. 59 NPDES permit numbers for Mountain House MS4 Small Non-Traditional Stormwater: ORDER NO. 2013-0001 DWQ NPDES NO. CAS000004. 60 MHCSD Storm Water Management Program, August 2008, Prepared by Jacobs Carter Burgess. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 21 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 of the highest quality that is economically possible. The City plans to update the SWMP in the near future.61 E.3. Future Storm Water Drainage Demands and System Improvements The City maintains a Storm Water Master Plan (May 2003) with updates (2006) for the Mountain House community. The existing storm water infrastructure is designed to employ a variety of drainage concepts, the most critical being the ability to exceed 100-year flood protection. In 2006, development located along Old River added and graded material to protect against a 100-year flood event. The storm water system also serves to improve water quality and enhance the community's natural aesthetics by providing open space and nature trails along the perimeter of Mountain House Creek, the primary storm water conveyance that collects storm water from the residential villages and conveys the storm water to the downstream discharge at Old River. According to modeling studies,62 Mountain House Creek is able to convey the 200-year flood event, with several areas of minor over topping of the creek's banks adjacent to woodland and park areas that can store and regulate the 200-year storm water event without damage to critical infrastructure or residential areas. City has an Operations and Maintenance Manual - Mountain House Creek.63 The purpose of this manual is to determine and provide O&M guidelines for proper management and engineering of Mountain House Creek. The Capital Improvement Plan contained in the FY2024-25 adopted City Operating and Capital Improvement Budget includes $3,350,000 from FY2024-25 through FY2028-29 for Stormwater Facility Repair for permit related consultation, establishment of staging areas and access for Creek Park maintenance, and work related to beaver burrows. In addition, $240,000 is programmed over three years for the City’s NPDES Catch Basins Insert Program. The funding source for this project is identified as the Storm Water Fund which accumulates stormwater fees paid by property owners and other stormwater-related funds. The City evaluates its storm water fee structure on a continuous basis to assure that sufficient funds are generated from development to pay for the various public improvements needed to serve the increased population. 61 Correspondence from City of Mountain House, K. Morgan, 1/22/2025. 62 Pace Advanced Water Engineering Technical Memorandum, 200-Year Flood Elevations in Mountain House Creek, November 2015 63 Operations and Maintenance Manual - Mountain House Creek, 2016, in the process of being updated. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 22 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 F. PARKS AND RECREATION The City of Mountain House provides parks, recreation facilities, trails, and recreation programs to the community. The City is responsible for “... for overseeing the development, maintenance, operations, and programming of the community’s parks and recreational facilities. This includes coordinating with different developers to continue to build out the system, while maintaining existing assets, stewarding natural resources, and initiating programs and events” in accordance with its Parks, Recreation and Leisure Plan.64 F.1. Existing and Planned Parks and Recreation Facilities At buildout, Mountain House will include approximately 482 acres of parks, trails and open space as shown in Table II-8. The City also operates and maintains other recreation facilities including community rooms, sports fields, picnic areas and tennis courts. Exhibit V summarizes park and amenities and Exhibit VI lists facilities. The City provides recreation programs for youth, teens and seniors.65 The City continually surveys residents to help plan and prioritize desired facilities and is currently in planning stages for various new facilities including an aquatics center. Funding for operations and maintenance is provided by Special Tax #3 which is dedicated to parks and recreation. Initial design and construction costs are developers’ responsibility, and they are reimbursed by Community Facilities Fees (CFF) which are paid as residential development occurs. Table II-8 Mountain House Parks and Open Space66 G. Other Services, Facilities and Infrastructure The City of Mountain House provides a range of other services and infrastructure including library facilities and services; streets, sidewalks, lighting, and landscape; affordable housing. 64 Mountain House Parks, Recreation and Leisure Plan. Final Plan May 2021. 65 See also: https://www.mountainhouseca.gov/departments/parks-and-recreation 66 Mountain House Master Plan Land Use Summary, Table 3-1. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 23 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 These services and others that may be required in the future, are funded through a combination of citywide, special taxes, general revenues, regional and State funds, and Mello- Roos special taxes. Capital costs are paid by Community Facilities Fees (CFF) and Transportation Impact Fees (TIF), and affordable housing fees. Dedicated gas tax and other road-related revenues fund street maintenance. H. Determinations -- Present and Planned Capacity of Public Facilities and Adequacy of Public Services, including Infrastructure Needs or Deficiencies The MSR analysis demonstrates that the City has the present and planned capacity of public facilities and adequacy of public services to meet the existing and growing needs of the community through buildout of the City and its SOI. The City provides a full range of municipal services including water, wastewater, storm water, solid waste, law enforcement, fire and EMS, street lighting, library, building services, road maintenance, transportation services, graffiti abatement, CC&R enforcement, flood control protection, pest and weed abatement, wildlife habitat mitigation, telecommunication, dissemination of information, and park and recreation. Many of these services are currently provided through contracts for service. As the community grows, contracts for services vs. in- house departments will be continually re-evaluated for cost-effectiveness, efficiency, and service quality to the community. Public facilities, including all water, wastewater, storm water, streets/signals/lighting, parks, schools, community centers, public safety buildings, library, corporation yard, and town hall are specified in the Mountain House Master Plan, along with binding agreements with developers to ensure proper funding and triggers for construction of the facilities are met. New development within the SOI will support population growth and the need for additional public facilities and service provisions as stipulated within the development and financing agreements that serve as implementation of the Master Plan. The City tracks and forecasts the timing and amount of new development to anticipate and plan for needed public facilities and infrastructure, and related operating, maintenance and replacement costs; the City continually updates its long-term plans and its five-year Capital Improvement Program. II.3 MSR Determination #3: Capacity of Public Facilities & Services page 24 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II.4 Financial Ability of the Agency to Provide Services This chapter of the Municipal Services Review describes the financing system currently in place that provides the City of Mountain House with the ability to fund all of the facilities and services contemplated in the Master Plan. The financing system currently in place was described in the Public Financing Plan adopted by the County as one of the original "Community Approvals" that provided guidance for the implementation of the Mountain House Master Plan. A. FUNDING OF OPERATING SERVICES This chapter of the MSR addresses the source and adequacy of funding for services provided by the City of Mountain House. Operating Services have five principal sources of funding. Utility Services are funded through user fees. General government services such as public safety, parks and recreation, and road maintenance are funded through a combination of Special Taxes designated for particular services, property taxes, and franchise and permit fees from the gas and electric and other utility type providers and the refuse collection provider. The City also receive other general revenues including sales taxes and gas taxes. Services to oversee developer construction of infrastructure are funded entirely through charges to the developers. Gas Tax, Motor Vehicle in lieu taxes and Sales Taxes which were unavailable to the MHCSD and retained by the County to provide services were transferred to the new City upon its incorporation. The County continues to receive a share of property tax from Mountain House to help pay for social and health services available to Mountain House residents, and to pay for other Countywide services such as the courts, juvenile services, and other public services. A.1. Utility Revenues Water, wastewater and storm water utilities are intended to be funded through user fees, billed monthly to the customers. With the downturn in the housing market in 2008, the projected growth did not occur leaving single-family residential construction significantly behind expectations, along with little in the way of retail, commercial, or industrial development. As a result, utility user fees revenue continued to be insufficient to cover all of the costs of operating the three utilities, requiring the use of property tax revenue to balance the utility enterprise. In the adopted FY2024-25 budget the City projected increased utility rate revenue based on a rate study completed in fiscal year 2021/22. The increase in utility rates enables the utility enterprises to become self-sufficient. A.2. Special Taxes Four special taxes by parcel exist in Mountain House - one of the primary funding mechanisms to adequately fund services and to ensure that the community of Mountain House was not a financial burden to San Joaquin County residents. The table below summarizes the special taxes II.4 MSR Determination #4: Financial Ability page 25 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 and their use which continue to be collected by the City. Rates are subject to adjustment annually according to an automatic factor specified in the City’s special tax ordinances. Table lI-9: Special Parcel Taxes Tax Use Special Tax No. 1 - Roads, Maintenance of streets, public Transportation and transportation, and operational costs not Community Services adequately funded from other sources Special Tax No. 2 - Public Fire, police, ambulance, security, graffiti Safety abatement and animal control Special Tax No. 3 - Parks Parks, landscaping, open space and community facilities maintenance and operation and provision of recreation services Special Tax No.4 - Public Street lighting and traffic signals, and other Works public works services. Approximately 18 percent of the one percent of property tax collected on property within the City is returned to the City to fund services. The Byron Bethany Irrigation District collects a share of the one percent of the property tax within the City because Mountain House is located within BBID's irrigation district service area, which provides access to the pre-1914 water rights. A.3. Other Assessment and Community Facility Districts for Services If the developer chooses to provide open space, park land or lighting infrastructure in excess of the standards established for Mountain House, they have been required to form an assessment district under the appropriate state code provisions, so that the properties that will benefit from the higher level of infrastructure pay the cost of on-going maintenance. Several lighting and landscape assessment districts were formed at the request of developers pursuant to this policy. The City has recently established the ability of new developments to participate in a Mello-Roos Community Facilities District (CFD) to help pay for maintenance of parks and facilities that serve their developments. After Mello-Roos CFD debt is repaid, increased special taxes will be available for capital improvement and replacement. II.4 MSR Determination #4: Financial Ability page 26 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 A.4. Revenue from Developers Services As developers construct water, wastewater and storm water facilities, parks, roads and community buildings, the City checks their plans to ensure that they conform to the Master Plan requirements and that the detailed plans and specifications will provide a facility that is long-lived and meets the expectations of levels of service in various detailed planning documents such as the Mountain House Water, Wastewater and Storm Water Master Plans and the Park and Leisure Plan. As facilities are constructed, the City inspects them to ensure they are constructed according to the approved plans. This work is preceded by extensive meetings with the developers as they plan the timing of facility construction. The Master Acquisition and Reimbursement Agreement (MARA), tentative map conditions, and fee schedule collectively provide developer funding requirements for City staff time and materials to facilitate approval of infrastructure development and community planning. No general government funds are used to support developer activities. Rather, the developers are required to enter into a Development Reimbursement Agreement (DRA), submit an initial deposit and then are invoiced and reimburse the City for the cost of services. B. INFRASTRUCTURE FUNDING AND FINANCING All infrastructure needs for the Mountain House Master Plan area and SOI are described in the Mountain House Master Plan and detailed in the Specific Plans and the tentative maps. The concept approved by the San Joaquin County Board of Supervisors (from the beginning and carried out today by the City of Mountain House) is that developers would install and fund all infrastructure necessary for buildout of Mountain House. Developers would be reimbursed from subsequent development and from bond proceeds as development occurs for the costs associated with installing this "backbone" infrastructure. This financial system is managed by the City as developers construct the various required facilities contained within the conditions of approvals for each subdivision map. Required facilities include utility collection and distribution lines, water and wastewater treatment plants, pump and lift stations, storm water basins, arterial and collector streets and associated street lighting, traffic signals, parks and public facilities - all facilities necessary to provide a high quality of life for Mountain House residents. These facilities are detailed in the various planning documents. Costs for infrastructure within the boundaries of individual "tracts" that serve individual parcels are not reimbursable since this is the developers' cost of preparing parcels for building. Developer reimbursements occur through two financial vehicles. The first primary financial reimbursement is to the Master Developer for the construction of the water, wastewater, and stormwater treatment facilities required prior to any construction in Mountain House. Located on Mountain House ratepayer monthly utility bills is a line item for debt service. These line items represent water, wastewater, and stormwater notes payable to the Master Developer that constructed the original improvements. The other sources of debt are revenues bonds. Bonds typically contain a fixed repayment schedule at an identified interest rate; notes can have a repayment schedule as well, but in the case of Mountain House, the debt payments are paid as they are received from the ratepayers, which means there is no repayment schedule or II.4 MSR Determination #4: Financial Ability page 27 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 term that is defined when the debt should be paid in full. The City discloses the debt numbers and supporting documentation in the annual financial statements, the most recent available is for the fiscal year ending June 30, 2024. The current debt balance for the systems identified above is $310.96 million.67 The second financial vehicle for reimbursing developers for constructing public facilities and roads is through the Community Facility Fee (CFF) and Transportation Improvement Fee (TIF) programs. As the community develops, maps are approved that contain conditions of approval requiring the construction of public facilities, many of which contain triggers when certain public facilities and roads must be built. Once the facilities are built, the City accepts and certifies the facility following a detailed inspection to ensure it meets all standards and specifications. Once accepted by the City, the facility ownership and responsibility for operations and maintenance (O&M) is transferred to the City. The certification process and the Master Acquisition and Reimbursement Agreement (MARA) stipulate the amount to be reimbursed to the developer. As building permits are pulled, a certain amount of each permit goes into restricted CFF and TIF funds maintained by the City, which are then paid to the developer next in line for reimbursement. C. SCHOOL CONSTRUCTION FINANCING Prior to approval of a final map, the developer must reach a financing mitigation agreement with the Lammersville Unified School District (LUSD). To date, those mitigation measures have been the formation of a Mello-Roos District, pursuant to the Mello-Roos Community Facilities Act of 1982, to have each property pay a tax to generate the revenue for school construction. While each developer may use some other financing arrangement to pay the cost of school construction, it is anticipated that all of the property within the Mountain House Master Plan and Sphere of Influence area will be included in a Mello-Roos District to generate the needed school construction funds. The City is not legally responsible or involved in any way with the LUSD and development activities regarding the payment and construction of schools. D. Determinations – Financial Ability to Provide Services and Facilities The MSR analysis demonstrates that the City has the present and planned financial ability to provide services and facilities to meet the existing and growing needs of the community through buildout of the City and its SOI. Revenue from the current fee and tax structure is adequate to fund the projected level of services needed at buildout of the community and planned expansion of its SOI. All property owners and residents will pay their fair proportionate share toward the provision of services based on the fee and tax structure adopted by the City Council and approved, as applicable by voters in the City. A financing plan was developed that projected the costs of providing an urban level of service to the Master Plan area at buildout of the community and established financing mechanisms 67 MHCSD Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024, Long-term debt, p. 11-12. II.4 MSR Determination #4: Financial Ability page 28 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 sufficient to fund needed facilities. Details regarding the level of services are contained in the Master Plan and subsequent supporting documents. Sufficient funds are currently available to meet the needs of the present population and are projected to be sufficient to meet the needs of the population at buildout including planned annexations within the current SOI. The City receives funds from utility user service charges, property and special parcel taxes, franchise and permit fees, and developer reimbursement of City costs in support of developer construction of infrastructure and planning activities. As lands within the Master Plan and Sphere of Influence area are annexed to the City, the tax and fee structure of the City will apply equally to the newly annexed territory. The expanded tax base that results from new development and annexations will provide funding for these facilities and services. Development fees collected when building permits are issued are used to pay back developers for constructing community facilities, while utility debt service fees collected as part of the monthly utility bill are used to pay back the Master Developer for design and construction of the state-of-the-art water, wastewater and storm water treatment systems and revenues repay bonds. Development and connection fees will fund capital costs with user charges funding operating and maintenance (O&M) expenses. Current O&M rates are under review by the City to ensure revenues cover O&M expenses. II.4 MSR Determination #4: Financial Ability page 29 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II.5 Status of, and Opportunities for, Shared Services This chapter is a review of the current use of shared services and facilities by City and potential additional opportunities. A. Current and Future Potential Shared Facilities A.1. Law Enforcement, Fire and Emergency Medical Services Currently, the City shares space within its City buildings for the Sheriff’s substation operations; this space will be expanded as necessary as police protection needs change. The City’s main fire station and the second station north of Byron Road are part of an overall fire response and emergency medical system for the community of Mountain House. Mutual and Automatic Aid is received from and provided to fire districts adjacent to Mountain House providing additional Fire and EMS services. This sharing of resources and facilities avoids duplication and overlapping service areas while providing all of the residents with a properly spaced set of fire stations and a timely response from not only the closest station but also quick and adequate backup from nearby fire stations. The current fire station has provided sharing opportunities for community meetings to take place by sharing their conference rooms for meetings and assembly. The Emergency Operations Center is housed at the current fire station and is available for shared emergency response and the California Office of Emergency Services. The fire station parking facility also is utilized for shared parking of City official vehicles. A.2. Utility Services No shared services apply to wastewater. Certain water infrastructure is part of a larger regional and State system of water supply and delivery. A.3. Library Services The Mountain House branch library is part of the Stockton-San Joaquin County unified library system. The Master Plan for the community and the Public Service Allocation Agreement between the County and the City both note that the library services will be provided to Mountain House through this arrangement. The City, like other communities with branch libraries of the countywide system, provides the library building and building operating expenses. The initial collection of library material and all furnishings were also provided by Mountain House. The library system provides the staff and replacement/enhancement of the collection. Funding for the library system's responsibility comes from a portion of the County property tax revenue that is earmarked by the County to fund library services to the branches outside of the City of Stockton and to provide access for all county residents to both the main library in Stockton and any branch library. Materials can be reserved and will be delivered to Mountain House from other branches upon request by a library patron. II.6 MSR Determination #6: Accountability for Community Service Needs page 30 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 The City included a new permanent library co-located with the new permanent community Town Hall on Main Street in the Town Center. The two new buildings share a common conditioned lobby and courtyard, as well as share a multi-purpose room and conference rooms accessible to the community. Both facilities are designed to serve the community through buildout of the Master Plan and SOI. A.4. Parks and Recreation The Mountain House community has individual neighborhood parks located in each of the twelve villages, a Central Community Park and two additional community parks planned within the College Park neighborhood and north of the Byron area to provide ample park and recreational shared facilities with various parties, groups, vendors, bands, and others who wish to hold events, activities, and recreation. The Master Plan discusses the regional trail system that can have the opportunity to share and link with other regional trails such as the Alameda County's East Bay Regional Park District's trail system. This trail system connectivity will provide shared facilities for recreational use on a regional level. Portions of the regional trail system including the trail along the creek have been built. A proposed trail along the river located north of Byron Road will be built as development occurs in the area. A.5. Infrastructure The current infrastructure in terms of poles, public facilities, and lands offers shared opportunities with high-tech companies to provide modern technologies (i.e., cell phone towers, Wi-Fi antennas, 5G facilities, etc.) to the master planned population while providing an additional revenue stream for the City from franchise fees. A.6. Transit The planned Transit Center located within the Town Center will provide shared facilities with other transit agencies, operators, and entities to/from the master planned community for commuting or mobility purposes. These shared transit opportunities and facilities will serve and provide quality of life benefits for the current and future population within and outside the master plan and SOI boundaries. The City is also working with Commute Connection and Regional Transit to develop Park-N-Rides strategically located throughout the Mountain House community using a phased approach to begin providing this service at the earliest possible date. During this interim period, the City parking lot is used as a Park-N-Ride for commuters to meet and carpool. A Mountain House station is a planned component of the ValleyLink light rail connection to BART. The station will be located west of Mountain House Parkway near the I-205/Mountain House Parkway interchange. B. Determinations -- Status of, and Opportunities for, Shared Services The MSR demonstrates that the City continually evaluates opportunities for shared services to meet the existing and growing needs of the community through buildout of the City and its SOI. II.6 MSR Determination #6: Accountability for Community Service Needs page 31 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 II.6 Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies This chapter of the Municipal Services Review considers the accountability for community service needs given the City's government structure and operational efficiencies. LAFCO is required to consider the advantages and disadvantages of any options that might be available to provide the services. In reviewing potential government structure options, consideration may be given to financial feasibility, service delivery, quality and cost, regulatory or government frameworks, operational practicality, and public reference. A. Governmental Structure The initial stage in Mountain House governance was to create a "dependent district," with the San Joaquin County Board of Supervisors serving as the District Board of Directors. The state legislation creating the district specified that an election would be held to determine if the residents wanted to change the district to an "independent district." This election was held in November 2008, and the residents voted to convert to an "independent district" governmental structure also known as the City. The election for the Mountain House Board of Directors was also held in November 2008 and the new Board took office in December 2008. MHCSD submitted an application to LAFCO to incorporate and become a city. LAFCO prepared a Comprehensive Fiscal Analysis (CFA) as required by to determine financial feasibility. The Incorporation Feasibility Analysis (IFA) prepared by MHCSD in advance of its application to LAFCO concluded that a new city could be financially viable while increasing and improving local services and facilities provided to the community.68 LAFCO accepted the CFA and approved the incorporation proposal for the ballot. A majority of Mountain House voters approved the incorporation. The City of Mountain House became effective on July 1, 2024. The MHCSD became a subsidiary district of the City and continues to enforce master restrictions. A.1. Public Information and Participation The City Council holds public meetings in the evening. Such Council meetings and other meetings are widely advertised in advance per the Brown Act and encourage the community to attend/participate. These same meetings are streamed live online. In addition, for those who are not able to attend, or are not able to watch real time via streaming services, community members can watch a recording of the board meeting available through the City website. Over the past few years, the community has communicated and ramped up its public participation processes and the City now shares public information through expanding use of social media. Representatives of the Sheriff's Department and the Fire Department, the Library and local medical providers continue to make presentations at City Council meetings and other City- 68 MHCSD Incorporation Feasibility Analysis (IFA), Oct. 2, 2020, prepared by Berkson Associates. II.6 MSR Determination #6: Accountability for Community Service Needs page 32 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 sponsored community meetings. Council meetings are well attended and serve to convey important and timely information to the community. The City updates its website on a continual basis to provide dynamic, current information to the community. To assure inclusion of non-digital residents, the City conducts an annual public survey thru a combination of either or both hard copy mailings and home visits. City offices are public and access to staff is available to the public. B. Evaluation of Operational Efficiencies B.1. Method of Establishing New Operating Systems and Procedures As a participatory form of local government, residents ultimately have input and oversight on the provision of community service needs and public services. Residents elect the City Council members. In turn, the Council appoints a City Manager responsible for carrying out the day-to- day policy decisions and direction of the Council. The City Manager is responsible for overseeing and directing City staff and resources for meeting the community service needs. Since the principal focus of the staff is necessarily on designing and implementing infrastructure and services, the City uses the services of consultants experienced in managing aspects of urban services to develop the detailed plans, ordinances, policies, standards and financial systems. Where appropriate, the City continues to use the services of the County. However, the City has also developed its own personnel rules and labor relations policy, purchasing ordinance, waste management, water and sewer ordinances. Many new operating systems and procedures are continually being developed, implemented, or purchased as they are needed. The City is constantly evolving to add new operating systems, policies, and procedures in order to improve its operational efficiencies and service effectiveness. The City staff via the City Manager brings these issues to the attention of the Council, along with the history and status of policies and procedures, and recommends new operating systems, policies, and procedures for the Board to adopt. The Council members work with the City Manager to ensure that staffing levels are appropriate to the level of service desired by the community and that work processes are prioritized to the needs of the community and are the most cost effective. C. Determinations -- Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies The MSR analysis demonstrates that the City is accountable for community service needs and continually evaluates improved methods to meet the existing and growing needs of the community through buildout of the City and its SOI. Mechanisms are in place within the City to effectively provide for public participation in the planning and development process to address government structure options to provide efficient and cost effective public facilities and services. Most of the planning, operational and financial systems of the City are continually being improved as the City staff implement large infrastructure projects and establish new services for the growing community. City staff II.6 MSR Determination #6: Accountability for Community Service Needs page 33 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 continues to seek approval and direction from the Council in prioritizing goals and objectives to assess service levels, appropriate staff levels for the needed services, and to monitor the effectiveness of service delivery. The City's use of its budget process and long range infrastructure planning processes ensure that it is able to provide directly, and through contract, adequate levels of service in a cost- effective manner within its service areas. The City has demonstrated the ability to work with other service providers and districts to ensure that adequate, reliable services are provided in a cost effective manner. Efforts to ensure effective government structure for the provision of fire protection and emergency medical, law enforcement, water supply, wastewater treatment, and storm drainage facilities demonstrate the City's foresight to plan and provide for future service needs as City boundaries expand due to annexations and population increases. II.6 MSR Determination #6: Accountability for Community Service Needs page 34 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 III. SPHERE OF INFLUENCE PLAN The California Government Code defines a Sphere of Influence (SOI) as a "plan for the probable physical boundaries and service area of a local agency, as determined by the commission."69 It is an area within which a city or district may expand through the annexation process. The SOI is a planning tool and the establishment of a SOI or the inclusion of property within a SOI of an existing governmental entity does not automatically mean that the area is being proposed for annexation and development at this time. LAFCO is responsible for determining that an agency is reasonably capable of providing needed resources and basic infrastructure to serve areas within the City and in the SOI. The information in this MSR supports the City current boundaries to expand via annexation to buildout of the master plan community, which coincides with the existing SOI. This chapter describes the City’s SOI Plan and analyzes the City's ability to serve current residents and the projected buildout population within the SOI boundaries. Analysis is provided that will permit LAFCO to make determinations for the following factors required to be considered:70 • Present and planned land uses in the area, including agricultural and open-space lands. • Present and probable need for public facilities and services in the area. • Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. • Existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency. • Present and probable need for those public facilities and services71 of any disadvantaged unincorporated communities within the existing sphere of influence. LAFCO's guidelines for determining spheres of influence (SOI)72 provide that territory that is currently receiving services from the City or is projected to need services from the City within a 30 year timeframe, may be considered for inclusion within the City SOI. LAFCO requires that "Sphere Horizons," or planning increments, should depict the City's logical boundaries at a time period between 5 and 10 years and up to a 30-year time period. The territory must be consistent with the General Plan Land Use element. The adopted SOI must also consider the County general plans, and policies for growth management, annexation, resource management and any other relevant policies, unless the plans or policies conflict with the legislative intent of 69 Gov. Code Sec. 56076. 70 Gov. Code Sec. 56425(e). 71 Per Gov. Code Sec. 56425(e)(5) which applies to an SOI update of a “...special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, that occurs pursuant to subdivision (g) on or after July 1, 2012. 72 San Joaquin LAFCO Policies and Procedures for Spheres of Influence, rev. Dec. 14, 2012. III. Sphere of Influence Plan page 35 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 the Cortese-Knox-Hertzberg Act.73 LAFCO Policies and Procedures make it clear that LAFCO's preference is for sphere of influence proposals that are based on general plan policies for implementing ordinances and programs that address smart growth principles, infill and redevelopment strategies, mixed use and increased densities, job development centers, community buffers, and conservation of habitat, agricultural land, and open space. The SOI determinations are based on this updated 2025 MSR and the MSR determinations described in its chapters. A. CITY BOUNDARIES AND SPHERE OF INFLUENCE This MSR is intended to provide LAFCO with the information and determinations to reaffirm the existing Sphere of Influence for the City. Map III-1 shows the City boundaries and the City SOI established by LAFCO upon formation of the City.74 San Joaquin LAFCO Resolution 23-1526 “finds that the proposed City of Mountain House Sphere of Influence shall initially be the same as existing MHCSD Sphere of Influence as further illustrated and described in Attachment "B" of this resolution.” 73 Gov. Code Sec. 56000 et seq. 74 Attachment "B" LAFCo Resolution 23-1526 Mountain House Reorganization Incorporation Area and Sphere of Influence, Sept. 14, 2023. III. Sphere of Influence Plan page 36 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Map III-1 Mountain House City Boundary and Sphere of Influence III. Sphere of Influence Plan page 37 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 A.1. Present and Planned Land Uses The County of San Joaquin created the MHCSD, the predecessor agency to the City, to provide services within the boundaries of the master planned Mountain House community. A Master Plan and three Specific Plans have been adopted and subsequently revised that encompass the entirety of the 4,784-acre territory (approximately 7.5 square miles) intended to be the maximum geographic extent of growth for City, and which corresponds to the City’s boundary and SOI. Upon incorporation, the City adopted the County’s General Plan and is in the process of preparing its own General Plan.75 Map III-2 shows the Master Plan’s land use designations and Master Plan boundaries. As shown in the map, the Mountain House Master Plan provides for a range of land uses including residential, commercial, mixed use, industrial, open space, and public (schools, transit, and utilities). Currently, approximately 50 percent of Mountain House Master Plan is developed.76 The 28,063 present population represents about seventy percent of projected buildout population anticipated by 2040; future development is anticipated to include smaller units higher densities which will reduce average household size per unit. The City anticipates about 2.2 million square feet of commercial and industrial uses remain to be developed.77 A.2. Future City Annexations Within Current SOI Not all of the land area within the Master Plan and Sphere of Influence has been annexed to the City, although Specific Plans have been adopted for the entire area. Map III-1 shows the current boundaries of City and the portions of the Master Plan area within the SOI but which have not been annexed to the City. The property currently outside City boundaries but within the SOI as shown in Map III-1 is expected to be annexed when the property owners complete their infrastructure design and are ready for development. These annexations are anticipated in the Master Plan and all of the associated public facility and public financing plans for Mountain House. 75 Gov. Code 65360 requires the City to have its own General Plan 30 months following incorporation. 76 Correspondence with City of Mountain House, received March 4, 2025; current units compared to estimated buildout of authorized residential units (not including second units). 77 Correspondence with City of Mountain House, received March 4, 2025. III. Sphere of Influence Plan page 38 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Map III-2 Mountain House Master Plan Land Uses78 78 Correspondence with City of Mountain House, 3/04/2025. III. Sphere of Influence Plan page 39 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 B. PROJECTED POPULATION WITHIN THE SPHERE OF INFLUENCE As described under MSR Determination #1, the 2024 population of 28,825 as of July 1, 2024, is projected to continue to grow, reaching approximately 42,368 by buildout in 2035 to 2040.79 Existing units totaling 8,843 will increase to 16,105 primary residential units by buildout.80 C. DETERMINATIONS The City is not requesting, nor does it intend to change the current sphere of influence boundary. Therefore, the determinations in the following sections describe the continuing ability of the City to provide services adequate to meet the needs of the current and projected population within the Mountain House Master Plan and existing Sphere of Influence boundaries. C.1. Present and Planned Land Uses within the Sphere of Influence As described in the 2025 Municipal Services Review and shown in Map III-2, the Mountain House Master Plan provides for a range of land uses including residential, commercial, mixed use, industrial, open space, and public (schools, transit, and utilities). C.2. Present and Probable Need for Public Facilities and Services The ability of the City to provide services is presented in this MSR with an analysis that demonstrates the City's capability to provide adequate public facilities and services to meet the existing and growing needs of the community within its SOI. Public facilities, including all water, wastewater, storm water, streets/signals/lighting, parks, schools, community centers, public safety buildings, library, corporation yard, and town hall are specified in the Master Plan, along with binding agreements with developers to ensure proper funding and triggers for construction of the facilities are met. New development within the SOI will lead to population growth and the need for additional public facilities and service provisions as stipulated within the development and financing agreements that serve as implementation of the Master Plan. Master Plan policies, including financing mechanisms, are in place to ensure adequate service provisions for current and future populations. Greater detail regarding present and planned public facilities and services, including financing mechanisms is in the MSR Chapter II. 79 Cal. Dept. of Finance letter to Steve Pinkerton, City Manager, City of Mountain House, March 26, 2025. 80 Planned units at buildout per John Anderson, City of Mountain House, 4/16/2025; allowed densities may permit a slightly different total as shown in Master Plan Table 3.1, updated April 2025. Unit total does not include potential 240 additional Town Center units and 90 bonus units (for high density housing) for a potential additional 660 residents. III. Sphere of Influence Plan page 40 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 C.3. Present Capacity of Public Facilities and Adequacy of Public Services The determinations included in this MSR beginning with Chapter II demonstrate that public facilities and services are adequate to meet the needs of the current population, are being improved over time, and specific timeframes and triggers have been established to meet the public facility and public service needs of future populations as development occurs within the SOI. C.4. Existence of Social and Economic Communities of Interest No change in the Mountain House Sphere of Influence is being proposed. Thus, no adjacent community or population will be impacted any differently than anticipated in the approved environmental review of the Master Plan and subsequent Specific Plans. III. Sphere of Influence Plan page 41 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit I Mountain House Master Plan Land Use Summary Exhibit I page 42 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit II Buildout Potable Water Distribution System Exhibit II page 43 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit III Buildout Wastewater Collection Facilities Exhibit III page 44 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit IV On-site Watershed Drainage Map Exhibit IV page 45 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit V Parks and Amenities Exhibit V page 46 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit VI Community Facilities Exhibit V page 47 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit VII Sheriff’s Office Calls for Service to Mountain House Exhibit VI page 48 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit VI page 49 CITY OF MOUNTAIN HOUSE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN 2025 UPDATE APRIL 18, 2025 Exhibit VI page 50